Mattel Reports Second Quarter 2013 Financial Results – Declares Third Quarter Dividend and Increases Share Repurchase Program

  Mattel Reports Second Quarter 2013 Financial Results – Declares Third
  Quarter Dividend and Increases Share Repurchase Program

Second Quarter Highlights

  *Worldwide net sales up 1%
  *North American^1 gross sales down 2% and International gross sales up 4%
  *Worldwide gross sales by core brands: Barbie^® down 12%; Hot Wheels^® down
    1%; Fisher-Price^® down 3% and American Girl^® up 14%
  *Gross margin remained flat; SG&A increased 320 basis points of net sales
    including the impact of an asset impairment charge of 120 basis points
  *Operating income of $94.8 million compared to $131.4 million in the second
    quarter of 2012
  *Earnings per share of $0.21 vs. prior year earnings per share of $0.28

Capital Deployment

  *Board declared 2013 third quarter cash dividend of $0.36 per share,
    reflecting an annualized dividend of $1.44 per share
  *The Share Repurchase Program was increased by $500 million
  *The Company repurchased 2.7 million shares of its common stock during the
    second quarter at a cost of approximately $119 million

Business Wire

EL SEGUNDO, Calif. -- July 17, 2013

Mattel, Inc. (NASDAQ: MAT) today reported 2013 second quarter financial
results. For the quarter, the Company reported net income of $73.3 million, or
$0.21 per share, compared to last year’s second quarter net income of $96.2
million, or $0.28 per share.

“Overall, our underlying performance in the first half of the year is
consistent with our long-term financial goals for sales and operating profit
growth,” said Bryan G. Stockton, Mattel Chairman and Chief Executive Officer.
“While we delivered another quarter of sales growth and strong gross margins,
lower profits in the second quarter reflect an asset impairment charge and
strategic investments made to support consistent future growth. As we look to
the second half of the year and the all-important holiday season, we are
excited by the innovative product, entertainment and retail programs planned
and we remain focused on leveraging our industry leading portfolio of strong
brands, countries and customers.”

Financial Overview

For the quarter, net sales were $1.17 billion, up 1% compared to last year,
with no impact from changes in currency exchange rates. On a regional basis,
second quarter gross sales decreased 2% in the North American Region, which
consists of the U.S., Canada and American Girl, with no impact from changes in
currency exchange rates. In the International Region, gross sales increased
4%, with no impact from changes in currency exchange rates. Operating income
for the quarter was $94.8 million, compared to prior year’s operating income
for the quarter of $131.4 million.

The Company’s debt-to-total-capital ratio was 36.7%. For the first half of the
year, the Company’s cash and equivalents declined by approximately $513
million, compared with a decline of approximately $997 million in last year’s
first half.

For the first half of the year, cash flows used for operating activities were
approximately $286 million, an increase of $224 million compared to
approximately $62 million of cash flows used for operating activities in the
first half of 2012. The increase is primarily due to higher working capital
usage. Cash flows used for investing activities were approximately $132
million, a decrease of $683 million driven primarily by the prior year
acquisition of HIT Entertainment. Cash flows used for financing and other
activities were approximately $95 million, a decrease of $25 million, compared
to approximately $120 million in 2012, primarily due to net proceeds received
from the issuance of long-term debt, partially offset by repayments of
long-term debt and higher share repurchases.

Capital Deployment

The Company announced today that its Board of Directors declared a third
quarter cash dividend of $0.36 per share on the Company's common stock. The
dividend will be payable on September 20, 2013, to stockholders of record on
August 28, 2013. The dividend is the third of four quarterly dividends the
Company expects to pay this year, reflecting an annualized dividend of $1.44
per share, which represents a 16% increase to last year’s total dividends.
During the second quarter of 2013, the Company repurchased 2.7 million shares
of its common stock at a cost of approximately $119 million. Additionally, the
Stock Repurchase Program was increased by $500 million.

Sales by Brand

Mattel Girls and Boys Brands

For the second quarter, worldwide gross sales for Mattel Girls & Boys Brands
were $792.4 million, up 1% versus the prior year. Worldwide gross sales for
the Barbie brand were down 12%. Worldwide gross sales for Other Girls brands
were up 23%, primarily driven by Monster High^®. Worldwide gross sales for the
Wheels category, which includes the Hot Wheels, Matchbox^® and Tyco R/C^®
brands, were down 6%. Worldwide gross sales for the Entertainment business,
which includes Radica^® and Games, were flat versus the prior year.

Fisher-Price Brands

Second quarter worldwide gross sales for Fisher-Price Brands, which includes
the Fisher-Price Core, Fisher-Price Friends and Power Wheels^® brands, were
$396.7 million, or down 3% versus the prior year.

American Girl Brands

Second quarter gross sales for American Girl Brands, which offers American
Girl-branded products directly to consumers, were $78.2 million, up 14% versus
the prior year, driven by strong sales of Saige, the 2013 Girl of the Year,
and Caroline, the newest historical character.

Live Webcast

Mattel will webcast its 2013 second quarter financial results conference call
at 8:30 a.m. Eastern time today. The conference call will be webcast on the
"Investors & Media" section of the Company's corporate website:
http://corporate.mattel.com. To listen to the live call, log on to the website
at least 15 minutes early to register, download and install any necessary
audio software. An archive of the webcast will be available on the company’s
website for 90 days and may be accessed beginning two hours after the
completion of the live call. A telephonic replay of the call will be available
beginning at 11:30 a.m. Eastern time the morning of the call until Friday,
July 19 at midnight Eastern time and may be accessed by dialing
+1-404-537-3406. The passcode is 97787871.

Information required by Securities and Exchange Commission Regulation G,
regarding non-GAAP financial measures, as well as other financial and
statistical information, will be available at the time of the webcast on the
“Investors” section of http://corporate.mattel.com, under the sub-headings
“Financial Information” – “Earnings Releases.”

About Mattel Inc.

Mattel, Inc. is the worldwide leader in the design, manufacture and marketing
of toys and family products. The Mattel family is comprised of such
best-selling brands as Barbie^®, the most popular fashion doll ever produced,
Hot Wheels^®, Monster High^®, American Girl^®, Thomas & Friends^® and
Fisher-Price^® brands, including Little People^® and Power Wheels^®, as well
as a wide array of entertainment-inspired toy lines. In 2013, Mattel was named
as one of FORTUNE Magazine's "100 Best Companies to Work For" for the sixth
year in a row and as one of the “World’s Most Ethical Companies” by Ethisphere
Magazine. Mattel also is ranked No. 2 on Corporate Responsibility Magazine's
"100 Best Corporate Citizens" list. With worldwide headquarters in El Segundo,
Calif., Mattel employs approximately 30,000 people in 40 countries and
territories and sells products in more than 150 nations. At Mattel, we are
Creating the Future of Play. Visit us at www.mattel.com,
www.facebook.com/mattel or www.twitter.com/mattel.

Note: This press release contains forward-looking statements relating to the
Company's expected financial performance and expected quarterly cash dividend
payments in 2013. These forward-looking statements are based on currently
available operating, financial, economic and other information and are subject
to a number of significant risks and uncertainties. A variety of factors, many
of which are beyond our control, could cause actual future results to differ
materially from those projected in the forward-looking statements. Some of
these factors are described in the Company's periodic filings with the
Securities and Exchange Commission, including the "Risk Factors" section of
Mattel's Annual Report on Form 10-K for the fiscal year ended December 31,
2012 and Mattel's Quarterly Reports on Form 10-Q for fiscal year 2013, as well
as in Mattel's other public statements. Mattel does not update forward-looking
statements and expressly disclaims any obligation to do so.

^1 Consists of the North America Division (U.S. & Canada) and American Girl


MATTEL, INC. AND SUBSIDIARIES                                EXHIBIT I

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


                For the Three Months Ended June 30,                   For the Six Months Ended June 30,
(In millions,                                                  Yr /                                                   Yr /
except per       2013                  2012                  Yr       2013                  2012                  Yr
share and
percentage       $ Amt        % Net    $ Amt        % Net    %        $ Amt        % Net    $ Amt        % Net    %
information)                   Sales                  Sales    Change                 Sales                  Sales    Change
                                                                                                                      
Net Sales        $ 1,169.1              $ 1,158.7              1    %   $ 2,164.7              $ 2,087.2              4    %
Cost of sales     569.1      48.7 %    564.2      48.7 %   1    %    1,024.6    47.3 %    1,019.3    48.8 %   1    %
                                                                                                                      
Gross Profit       600.0       51.3 %     594.5       51.3 %   1    %     1,140.1     52.7 %     1,067.9     51.2 %   7    %
Advertising
and promotion      113.4       9.7  %     112.4       9.7  %   1    %     217.9       10.1 %     210.3       10.1 %   4    %
expenses
Other selling
and               391.8      33.5 %    350.7      30.3 %   12   %    761.6      35.2 %    697.4      33.4 %   9    %
administrative
expenses
                                                                                                                      
Operating          94.8        8.1  %     131.4       11.3 %   -28  %     160.6       7.4  %     160.2       7.7  %   0    %
Income
Interest           18.3        1.6  %     21.5        1.9  %   -15  %     38.6        1.8  %     42.6        2.0  %   -9   %
expense
Interest           (1.3    )   -0.1 %     (1.9    )   -0.2 %   -34  %     (2.7    )   -0.1 %     (3.7    )   -0.2 %   -27  %
(income)
Other
non-operating     (0.9    )             0.4                           1.8                  (0.2    )
(income)
expense, net
                                                                                                                      
Income Before      78.7        6.7  %     111.4       9.6  %   -29  %     122.9       5.7  %     121.5       5.8  %   1    %
Income Taxes
Provision for     5.4                  15.2                          11.0                 17.5    
income taxes
                                                                                                                      
Net Income       $ 73.3       6.3  %   $ 96.2       8.3  %   -24  %   $ 111.9      5.2  %   $ 104.0      5.0  %   8    %
                                                                                                                      
Net Income Per
Common Share -   $ 0.21                $ 0.28                         $ 0.32                $ 0.30    
Basic
                                                                                                                      
                                                                                                                      
Weighted
average number    346.6                341.3                         345.5                340.2   
of common
shares
                                                                                                                      
                                                                                                                      
Net Income Per
Common Share -   $ 0.21                $ 0.28                         $ 0.32                $ 0.30    
Diluted
                                                                                                                      
Weighted
average number
of common and     350.4                345.6                         349.5                344.6   
potential
common shares



MATTEL, INC. AND SUBSIDIARIES                            EXHIBIT II

WORLDWIDE GROSS SALES INFORMATION (Unaudited)

                Three Months Ended June 30,              Six Months Ended June 30,
                                                                                       
(In millions,
except           2013                 2012                 2013                 2012
percentage
information)
                                                                                              
Worldwide
Gross Sales:
Mattel Girls &   $ 792.4              $ 781.6              $ 1,484.6            $ 1,403.9
Boys Brands
% Change                       1  %                 -1 %                 6  %                 -3 %
Pos./(Neg.)
Impact of                      0                    -6                   0                    -4
Currency (in %
pts)
                                                                                              
Fisher-Price       396.7                407.3                684.0                717.4
Brands
% Change                       -3 %                 2  %                 -5 %                 1  %
Pos./(Neg.)
Impact of                      -1                   -3                   -1                   -3
Currency (in %
pts)
                                                                                              
American Girl      78.2                 68.7                 178.6                144.7
Brands
% Change                       14 %                 3  %                 23 %                 4  %
                                                                                              
Other             10.8               9.1                19.4               17.9    
                                                                                              
Gross Sales      $ 1,278.1           $ 1,266.7           $ 2,366.6           $ 2,283.9 
% Change                       1  %                 0  %                 4  %                 -1 %
Pos./(Neg.)
Impact of                      0                    -5                   0                    -3
Currency (in %
pts)
                                                                                              
Reconciliation
of Non-GAAP to
GAAP Financial
Measure:
Gross Sales      $ 1,278.1            $ 1,266.7            $ 2,366.6            $ 2,283.9
Sales             (109.0  )           (108.0  )           (201.9  )           (196.7  )
Adjustments
                                                                                              
Net Sales        $ 1,169.1           $ 1,158.7           $ 2,164.7           $ 2,087.2 
% Change                       1  %                 0  %                 4  %                 -1 %
Pos./(Neg.)
Impact of                      0                    -4                   0                    -3
Currency (in %
pts)


MATTEL, INC. AND SUBSIDIARIES                                EXHIBIT III

CONDENSED CONSOLIDATED BALANCE SHEETS

                                    At June 30,              At December 31,
                                     2013       2012 (a)      2012
(In millions)                        (Unaudited)
                                                             
Assets
Cash and equivalents                 $ 823.0     $ 372.3       $    1,335.7
Accounts receivable, net               945.7       980.4            1,226.8
Inventories                            793.6       746.7            465.1
Prepaid expenses and other current    564.9      420.7          529.2
assets
Total current assets                   3,127.2     2,520.1          3,556.8
                                                               
Property, plant, and equipment,        621.2       561.3            593.2
net
Other noncurrent assets               2,448.0    2,508.9        2,376.8
Total Assets                         $ 6,196.4   $ 5,590.3    $    6,526.8
                                                               
Liabilities and Stockholders'
Equity
Short-term borrowings                $ 40.7      $ 42.3        $    9.8
Current portion of long-term debt      50.0        400.0            400.0
Accounts payable and accrued           921.7       788.4            1,273.2
liabilities
Income taxes payable                  26.0       16.1           33.0
Total current liabilities              1,038.4     1,246.8          1,716.0
                                                               
Long-term debt                         1,600.0     1,150.0          1,100.0
Other noncurrent liabilities           636.6       602.7            643.8
Stockholders' equity                  2,921.4    2,590.8        3,067.0
Total Liabilities and                $ 6,196.4   $ 5,590.3    $    6,526.8
Stockholders' Equity




SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)

                                                    At June 30,
(In millions, except days and percentage             2013         2012
information)
                                                                   
Key Balance Sheet Data:
Accounts receivable, net days of sales outstanding     73            76
(DSO)
Total debt outstanding                               $ 1,690.7     $ 1,592.3
Total debt-to-total capital ratio                      36.7    %     38.1    %
                                                                   
                                                     Six Months Ended June 30,
(In millions)                                        2013 (b)      2012 (a)
                                                                   
Condensed Cash Flow Data:
Cash flows (used for) operating activities           $ (286    )   $ (62     )
                                                                   
Cash flows (used for) investing activities             (132    )     (815    )
                                                                   
Cash flows (used for) financing activities and        (95     )    (120    )
other
                                                                   
Decrease in cash and equivalents                     $ (513    )   $ (997    )


(a) Certain balances related to the acquisition of HIT Entertainment have been
retrospectively adjusted to reflect their final acquisition-date fair values.

(b) Amounts shown are preliminary estimates. Actual amounts will be reported
in Mattel's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.

MAT-FIN

Contact:

News Media
Mattel, Inc.
Dallas Lawrence
310-252-6397
press@mattel.com
or
Securities Analysts
Mattel, Inc.
Drew Vollero
310-252-2703
Drew.Vollero@mattel.com