Mattel, Inc. (NASDAQ:MAT) Q4 2015 Earnings Conference Call - Preliminary Transcript

Feb 01, 2016 • 05:00 pm ET


Mattel, Inc. (NASDAQ:MAT) Q4 2015 Earnings Conference Call - Preliminary Transcript


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Good day ladies and gentlemen, and welcome to the Mattel, Inc. Fourth Quarter 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to turn the conference over to Martin Gilkes, Vice President, Investor Relations. Please go ahead.

Martin Gilkes

Thank you, Sabrina. And good afternoon, everyone. Joining me today are Chris Sinclair, Mattel's Chairman and Chief Executive Officer; Richard Dickson, Mattel's President and Chief Operating Officer; and Kevin Farr, Mattel's Chief Financial Officer.

As you know, this afternoon we reported Mattel's 2015 fourth quarter and fiscal year end financial results, we'll begin today's call with Chris, Richard, and Kevin providing commentary on our results, and then we'll take your questions. To help guide our discussion today, we have provided you with a slide presentation. Both, our earnings release and slide presentation include non-GAAP financial measures. The information required by Regulation G regarding non-GAAP financial measures is included in these materials, and both documents are available in the Investors section of our corporate website,

Before we begin, I'd like to remind you that certain statements made during the call may include forward-looking statements relating to the future performance of our overall business, brands and product lines. These statements are based on currently available information and they are subject to a number of significant risks and uncertainties that could cause our results to differ materially from those projected in the forward-looking statements. We describe some of these uncertainties in the Risk Factors section of our 2014 annual report on Form 10-K, our 2015 quarterly reports on Form 10-Q, and other filings we make with the SEC from time-to-time, as well as in our other public statements. Mattel does not update forward-looking statements and expressly disclaims any obligation to do so.

Now, I'd like to turn the call over to Chris.

Christopher A. Sinclair

Thanks, Martin, and good afternoon, everyone. And let me add my thanks for all of you joining us today. To get things started, I'd like to provide some perspective on the fourth quarter and importantly on the progress that we're making against our transformation. Following this, Richard and Kevin will provide additional details on the quarter, as well as an outlook on what's ahead. And as Martin indicated, at the end we'll leave time for your questions.

So let me begin by saying that our fourth quarter performance and our full year results were encouraging, and they reflect some significant and continuing progress from where we stood a year ago, when we first began to execute against our six strategic priorities and our cultural transformation.

Gross sales for the quarter greatly improved and excluding the impact of foreign exchange increased by 3%. Gratifying to me, for the full year, we achieved our goal of stabilizing the business with the gross sales increase of 1% in constant currency. Importantly, as an