Mattel Inc (NASDAQ:MAT) Q1 2020 Earnings Conference Call - Final Transcript

May 05, 2020 • 05:00 pm ET


Mattel Inc (NASDAQ:MAT) Q1 2020 Earnings Conference Call - Final Transcript


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Joe Euteneuer

level of uncertainty at this time, we are withdrawing our full year guidance. I would now like to spend a few minutes on our liquidity and cost structure. While we regularly perform liquidity stress test, we have analyzed more extreme scenarios given COVID-19. Following this in-depth analysis, where we considered a number of assumptions around the potential size and duration of the impact. We continue to believe that we have sufficient liquidity to effectively manage through this disruption and continue to execute our strategy.

As a matter of practice, we also routinely evaluate our capital structure and access to the capital markets to opportunistically improve our financial flexibility. As Ynon mentioned, we have no debt maturities until 2023, and we continue to have access to our $1.6 billion senior secured revolving credit facilities. Additionally, we have numerous levers available to manage our variable cost across the P&L. We have also significantly reduced capital expenditures over the past three years and continue to review all noncritical capital spending and cutback were prudent.

In closing, the work we have done to reshape our operations over the past two years has improved our financial flexibility, cost structure and liquidity, positioning us well to navigate through the COVID-19 disruption and continue to execute our strategy. We are thoughtfully balancing the appropriate actions in the short-term with our long-term strategic priorities. We remain focused on consistent execution and are taking the necessary actions to emerge stronger. With that, I'll turn it back over to the operator for Q&A.