Mattel, Inc. (NASDAQ:MAT) Q2 2019 Earnings Conference Call - Final Transcript
Jul 25, 2019 • 05:00 pm ET
Joseph J. Euteneuer
change in net working capital this year to be neutral. As we continue to restore profitability, we expect to achieve positive cash flow from operations this year for the first time in three years.
I'd like to make sure the future benefit of our additional savings from Structural Simplification and Capital Light is fully appreciated. As mentioned, the full benefit of the additional Structural Simplification run-rate savings above our $650 million target and incremental Capital Light savings will only be captured in 2020.
But for the purposes of an illustration, if you were to apply the savings in 2019 relative to our adjusted EBITDA guidance of $350 million to $400 million and hold constant all other assumptions we gave you in February, which are on our website, net of non-cash items, we believe the hypothetical impact would be an addition of approximately $200 million to our 2019 adjusted EBITDA guidance.
Again, this is just a hypothetical illustration of what would have happened if the benefits of these incremental savings were to materialize in 2019. Of course, you understand, it is too early to give any guidance on the 2020 performance of the business and many other variables will be relevant when we are ready to guide you on 2020.
In closing, we continue to execute our strategy to transform Mattel into an IP-driven, high-performing toy company. The benefits of the team's hard work are clearly materializing across the P&L and we remain focused on sustained progress, methodical execution, and the creation of long-term shareholder value.
Thank you for your time today. We will now open the line for questions.