Mattel, Inc. (NASDAQ:MAT) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


Mattel, Inc. (NASDAQ:MAT) Q4 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen and welcome to the Mattel Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to introduce your host for today's conference, Ms. Whitney Steininger, with Investor Relations. Ms. Steininger. You may now begin.

Whitney Steininger

Thank you, operator and good afternoon, everyone. Joining me today are Ynon Kreiz, Mattel's Chairman and Chief Executive Officer; Richard Dickson, Mattel's President and Chief Operating Officer and Joe Euteneuer, Mattel's Chief Financial Officer.

As you know, this afternoon we reported Mattel's 2018 full year and fourth quarter financial results. We will begin today's call with Ynon and Joe providing commentary on our results and then we will provide time for Ynon, Richard and Joe to take your questions.

To help guide our discussion today, we have provided you with a slide presentation. Our discussions, slide presentation and earnings release reference non-GAAP financial measures including gross sales, adjusted gross profit and adjusted gross margin, adjusted other selling and administrative expenses, adjusted operating income or loss, adjusted earnings or loss per share, earnings before interest, depreciation and amortization or EBITDA, adjusted EBITDA and constant currency. Additionally, the sales figures referenced on this call will be stated in constant currency.

The information required by Regulation G, regarding non-GAAP financial measures is included in our earnings release and slide presentation 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 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 actual results to differ materially from those projected in the forward-looking statements.

We described some of these uncertainties in the Risk Factors section of our 2017 Annual Report on Form 10-K, our 2018 quarterly reports on Form 10-Q, our earnings release and the presentation accompanying this call 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, except as required by law.

Now I'd like to turn the call over to Ynon.

Ynon Kreiz

Thank you, everyone for joining our fourth quarter earnings call. We are happy to announce our fourth quarter results, which demonstrate meaningful progress in executing our strategy and significant improvement over last year. As we described last quarter, we have a two-part strategy to drive our transformation to become an IP-driven high performing toy company.

In the short to mid-term, our priorities are to restore profitability and regain top-line growth by reshaping operations, growing our power brands and expanding our brand portfolio. In the mid-to-long term, we will capture the