Mattel Reports Third Quarter 2013 Financial Results and Declares Fourth Quarter Dividend

  Mattel Reports Third Quarter 2013 Financial Results and Declares Fourth
  Quarter Dividend

Third Quarter Highlights

  *Worldwide net sales up 6%;
  *North American^1 gross sales up 3% and International gross sales up 9%;
  *Worldwide gross sales by core brands: Barbie^® up 3%; Hot Wheels^® down
    2%; Fisher-Price^® flat; and American Girl^® up 20%;
  *Gross margin increased 10 basis points of net sales; SG&A decreased 30
    basis points of net sales;
  *Operating income of $528.2 million compared to operating income of $487.4
    million in the third quarter of 2012; and
  *Earnings per share of $1.21 (includes tax benefit of $0.05 per share) vs.
    prior year earnings per share of $1.04.

Capital Deployment

  *Board declared 2013 fourth quarter cash dividend of $0.36 per share,
    reflecting an annualized dividend of $1.44 per share; and
  *The Company repurchased 6.1 million shares of its common stock during the
    third quarter at a cost of approximately $259 million.

Business Wire

EL SEGUNDO, Calif. -- October 16, 2013

Mattel, Inc. (NASDAQ:MAT) today reported 2013 third quarter financial results.
For the quarter, the Company reported net income of $422.8 million, or $1.21
per share, compared to last year’s third quarter net income of $365.9 million,
or $1.04 per share.

“We are pleased with our third quarter performance as Mattel delivered growth
in every region of the world, expanded our operating margins, further
strengthened our balance sheet and returned more capital to our shareholders,”
said Bryan G. Stockton, Mattel Chairman and Chief Executive Officer. “As we
enter the all-important holiday season, we have a strong lineup of innovative
products, promotions and content, and we will continue to focus on execution
to deliver growth and long-term shareholder value.”

Financial Overview

For the quarter, net sales were $2.21 billion, up 6%, including an unfavorable
change in currency exchange rates of 1 percentage point. On a regional basis,
third quarter gross sales increased 3% in the North American Region, which
consists of the U.S., Canada and American Girl, with no impact from changes in
currency exchange rates. For the International Region, gross sales increased
9%, including an unfavorable impact of currency exchange rates of 2 percentage
points. Operating income for the quarter was $528.2 million, compared to prior
year’s operating income of $487.4 million.

The Company’s debt-to-total-capital ratio was 36.5%. For the first nine months
of the year, the Company’s cash and equivalents decreased by approximately
$929 million, compared with a decline of approximately $1.09 billion during
the same period last year.

For the first nine months of the year, cash flows used for operating
activities were approximately $321 million, an increase of $220 million
compared to approximately $101 million of cash flows used for operating
activities in the same period of 2012. The increase is primarily due to higher
working capital usage, partially offset by higher net income. Cash flows used
for investing activities were approximately $176 million, a decrease of $657
million, compared to approximately $833 million in 2012, driven primarily by
the prior year acquisition of HIT Entertainment. Cash flows used for financing
and other activities were approximately $432 million, an increase of $279
million, compared to approximately $153 million in 2012, primarily due to
higher share repurchases and repayments of long-term debt, partially offset by
net proceeds received from the issuance of long-term debt.

Capital Deployment

The Company announced today that its Board of Directors declared a fourth
quarter cash dividend of $0.36 per share on the Company's common stock. The
dividend will be payable on December 13, 2013, to stockholders of record on
November 27, 2013. The dividend is the final of four quarterly dividends the
Company will have paid this year, reflecting an annualized dividend of $1.44
per share, which represents a 16% increase to last year’s total dividends.
During the third quarter of 2013, the Company repurchased 6.1 million shares
of its common stock at a cost of approximately $259 million.

Sales by Brand

Mattel Girls and Boys Brands

For the third quarter, worldwide gross sales for Mattel Girls & Boys Brands
were $1.48 billion, up 8% versus the prior year. Worldwide gross sales for the
Barbie ^ brand were up 3%. Worldwide gross sales for Other Girls Brands were
up 28%, 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 9%, primarily driven by Tyco R/C and Matchbox. Worldwide
gross sales for the Entertainment business, which also includes Radica^® and
Games, were up 7%, primarily driven by the Disney Planes movie property.

Fisher-Price Brands

Third quarter worldwide gross sales for Fisher-Price Brands, which includes
the Fisher-Price Core, Fisher-Price Friends and Power Wheels^® brands, were
$789.3 million, or flat versus the prior year.

American Girl Brands

Third quarter gross sales for American Girl Brands, which offers American
Girl-branded products directly to consumers, were $122.3 million, up 20%
versus the prior year, driven by Saige, the 2013 Girl of the Year, My American
Girl, Bitty Baby and Historical dolls.

Live Webcast

Mattel will webcast its 2013 third quarter financial results conference call
at 8:30 a.m. Eastern time today. The conference call will be webcast on the
"Investors" 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 and 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 Wednesday,
October 23, at midnight Eastern time and may be accessed by dialing + (404)
537-3406. The passcode is 58903743.

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. (NASDAQ:MAT) 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 nearly 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.

MAT-FIN

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

                                                                                                                          
MATTEL, INC.                                                                                                                                    EXHIBIT
AND                                                                                                      I
SUBSIDIARIES

CONSOLIDATED
STATEMENTS OF
OPERATIONS
(Unaudited)
                                                                                                                                                
                                                                                                                                                
                     For the Three Months Ended September 30,                             For the Nine Months Ended September 30,
(In millions,
except per                                                                 Yr /
share and            2013                        2012                      Yr             2013                        2012                      Yr / Yr
percentage
information)
                    $ Amt        % Net         $ Amt         % Net       %              $ Amt         % Net         $ Amt         % Net       %
                                   Sales                       Sales       Change                       Sales                       Sales       Change
                                                                                                                                                
Net Sales          $ 2,207.0                   $ 2,077.8                   6    %       $ 4,371.7                   $ 4,165.0                   5    %
Cost of              1,019.0      46.2  %       962.4        46.3  %     6    %         2,043.7      46.7  %       1,981.7      47.6  %     3    %
sales
                                                                                                                                                
Gross Profit         1,188.0       53.8  %       1,115.4       53.7  %     7    %         2,328.0       53.3  %       2,183.3       52.4  %     7    %
Advertising
and promotion        249.4         11.3  %       234.8         11.3  %     6    %         467.3         10.7  %       445.0         10.7  %     5    %
expenses
Other selling
and                  410.4        18.6  %       393.2        18.9  %     4    %         1,171.9      26.8  %       1,090.8      26.2  %     7    %
administrative
expenses
                     
Operating            528.2         23.9  %       487.4         23.5  %     8    %         688.8         15.8  %       647.5         15.5  %     6    %
Income
Interest             19.6          0.9   %       22.7          1.1   %     -14  %         58.2          1.3   %       65.4          1.6   %     -11  %
expense
Interest             (1.4    )     -0.1  %       (1.5    )     -0.1  %     -5   %         (4.1    )     -0.1  %       (5.2    )     -0.1  %     -21  %
(income)
Other
non-operating        (4.3    )                   (0.6    )                                (2.5    )                   (1.1    )
(income), net
                                                                                                                                                
Income Before        514.3         23.3  %       466.8         22.5  %     10   %         637.2         14.6  %       588.4         14.1  %     8    %
Income Taxes
Provision for       91.5                       100.9                                   102.5                      118.4   
income taxes
                                                                                                                                                
Net Income         $ 422.8        19.2  %     $ 365.9        17.6  %     16   %       $ 534.7        12.2  %     $ 470.0        11.3  %     14   %
                                                                                                                                                
Net Income Per
Common Share -     $ 1.22                     $ 1.06                                  $ 1.54                     $ 1.36    
Basic
                                                                                                                                                
                                                                                                                                                
Weighted
average number       343.3                      342.6                                   344.7                      341.0   
of common
shares
                                                                                                                                                
                                                                                                                                                
Net Income Per
Common Share -     $ 1.21                     $ 1.04                                  $ 1.52                     $ 1.35    
Diluted
                                                                                                                                                
Weighted
average number
of common and
potential            346.7                      347.1                                   348.6                      345.4   
common shares
                                                                                                                                                

                                                                                            
MATTEL, INC.                                                                                                  EXHIBIT
AND                                                                                   II
SUBSIDIARIES
                                                                                                              
WORLDWIDE GROSS SALES INFORMATION (Unaudited)
                                                                                                              
                 Three Months Ended September 30,                    Nine Months Ended September 30,
                                                                                                              
(In
millions,
except           2013                     2012                       2013                     2012
percentage
information)
                                                                                                              
Worldwide
Gross Sales:
Mattel Girls
& Boys           $ 1,480.7                $ 1,371.1                  $ 2,965.3                $ 2,775.0
Brands
% Change                         8  %                     3  %                       7  %                     0    %
Pos./(Neg.)
Impact of                        -1                       -5                         -1                       -4
Currency (in
% pts)
                                                                                                              
Fisher-Price       789.3                    790.4                      1,473.3                  1,507.9
Brands
% Change                         0  %                     6  %                       -2 %                     3    %
Pos./(Neg.)
Impact of                        -1                       -2                         0                        -3
Currency (in
% pts)
                                                                                                              
American           122.3                    102.0                      300.9                    246.7
Girl Brands
% Change                         20 %                     16 %                       22 %                     9    %
                                                                                                              
Other             10.0                   10.2                     29.4                   28.0    
                                                                                                              
Gross Sales      $ 2,402.3               $ 2,273.7                 $ 4,768.9               $ 4,557.6 
% Change                         6  %                     4  %                       5  %                     2    %
Pos./(Neg.)
Impact of                        0                        -4                         0                        -3
Currency (in
% pts)
                                                                                                              
Reconciliation of Non-GAAP to GAAP Financial Measure:
Gross Sales      $ 2,402.3                $ 2,273.7                  $ 4,768.9                $ 4,557.6
Sales             (195.3  )               (195.9  )                 (397.2  )               (392.6  )
Adjustments
                                                                                                              
Net Sales        $ 2,207.0               $ 2,077.8                 $ 4,371.7               $ 4,165.0 
% Change                         6  %                     4  %                       5  %                     1    %
Pos./(Neg.)
Impact of                        -1                       -3                         -1                       -3
Currency (in
% pts)
                                                                                                                   

                                                                
                                                                      
                                                                      
MATTEL, INC. AND                                             EXHIBIT
SUBSIDIARIES                                                          III
                                                                      
CONDENSED CONSOLIDATED
BALANCE SHEETS
                                                                      
                                                                      At
                                  At September 30,                    December
                                                                      31,
                                  2013                2012 (a)        2012
(In millions)                     (Unaudited)
                                                                    
Assets
Cash and equivalents            $    406.5          $   282.1       $ 1,335.7
Accounts receivable,                 1,885.2            1,828.2       1,226.8
net
Inventories                          807.2              796.4         465.1
Prepaid expenses and other          538.6            366.6        529.2
current assets
Total current assets                 3,637.5            3,273.3       3,556.8
                                                                      
Property, plant, and                 634.8              575.3         593.2
equipment, net
Other noncurrent assets             2,424.0          2,470.1      2,376.8
Total Assets                    $   6,696.3       $  6,318.7    $ 6,526.8
                                                                      
Liabilities and
Stockholders' Equity
Short-term borrowings           $    77.8           $   154.5       $ 9.8
Current portion of                   50.0               350.0         400.0
long-term debt
Accounts payable and accrued         1,278.0            1,111.6       1,273.2
liabilities
Income taxes payable                65.8             47.3         33.0
Total current                        1,471.6            1,663.4       1,716.0
liabilities
                                                                      
Long-term debt                       1,600.0            1,150.0       1,100.0
Other noncurrent                     616.5              601.4         643.8
liabilities
Stockholders' equity                3,008.2          2,903.9      3,067.0
Total Liabilities and           $   6,696.3       $  6,318.7    $ 6,526.8
Stockholders' Equity
                                                                      
                                                         
                                                                      
SUPPLEMENTAL BALANCE SHEET
AND CASH FLOW DATA
(Unaudited)
                                                                      
                                  At September 30,
(In millions, except days and     2013                2012
percentage information)
                                                                      
Key Balance Sheet Data:
Accounts receivable, net days        77                 79
of sales outstanding (DSO)
Total debt outstanding            $  1,727.8          $ 1,654.5
Total debt-to-total                  36.5     %         36.3    %
capital ratio
                                                                      
                                  Nine Months Ended September 30,
(In millions)                     2013 (b)            2012 (a)
                                                                      
Condensed Cash Flow Data:
Cash flows (used for)             $  (321     )       $ (101    )
operating activities
                                                                      
Cash flows (used for)                (176     )         (833    )
investing activities
                                                                      
Cash flows (used for)
financing activities and            (432     )        (153    )
other
                                                                      
Decrease in cash and              $  (929     )       $ (1,087  )
equivalents
                                                                      

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

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

Contact:

News Media
Mattel, Inc.
Dallas Lawrence
+1-310-252-6397
press@mattel.com
or
Securities Analysts
Mattel, Inc.
Drew Vollero
+1-310-252-2703
drew.vollero@mattel.com
 
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