Mattel (MAT) has reported 19.24 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $173.80 million, or $0.50 a share in the quarter, compared with $215.20 million, or $0.63 a share for the same period last year. On an adjusted basis, earnings per share were at $0.52 for the quarter compared with $0.65 in the same period last year.
Revenue during the quarter dropped 8.27 percent to $1,834.40 million from $1,999.70 million in the previous year period. Gross margin for the quarter contracted 322 basis points over the previous year period to 46.96 percent. Total expenses were 85.68 percent of quarterly revenues, up from 85.29 percent for the same period last year. That has resulted in a contraction of 39 basis points in operating margin to 14.32 percent.
Operating income for the quarter was $262.60 million, compared with $294.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $269.20 million compared to $306.30 million in the prior year period. At the same time, adjusted operating margin contracted 64 basis points in the quarter to 14.68 percent from 15.32 percent in the last year period.
"Our results were negatively impacted by a number of industry��"wide challenges, including a significant U.S. toy category slowdown in the holiday period, and increased forex headwinds,” said Christopher Sinclair, chairman and chief executive officer of Mattel.
Operating cash flow declinesMattel has generated cash of $590 million from operating activities during the year, down 19.73 percent or $145 million, when compared with the last year. The company has spent $307 million cash to meet investing activities during the year as against cash outgo of $283 million in the last year.
The company has spent $306 million cash to carry out financing activities during the year as against cash outgo of $531 million in the last year period.
Cash and cash equivalents stood at $869.50 million as on Dec. 31, 2016, down 2.61 percent or $23.30 million from $892.80 million on Dec. 31, 2015.
Working capital declines
Mattel has witnessed a decline in the working capital over the last year. It stood at $1,434.40 million as at Dec. 31, 2016, down 7.54 percent or $116.89 million from $1,551.29 million on Dec. 31, 2015. Current ratio was at 1.95 as on Dec. 31, 2016, up from 1.94 on Dec. 31, 2015.
Debt moves upMattel has witnessed an increase in total debt over the last one year. It stood at $2,326.50 million as on Dec. 31, 2016, up 10.70 percent or $224.90 million from $2,101.60 million on Dec. 31, 2015. Total debt was 35.84 percent of total assets as on Dec. 31, 2016, compared with 32.07 percent on Dec. 31, 2015. Debt to equity ratio was at 0.97 as on Dec. 31, 2016, up from 0.80 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 10.50 for the quarter from 12.90 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
