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

Ladies and gentlemen, thank you for standing by, and welcome to the Mattel, Incorporated First Quarter 2020 Earnings Conference Call. [Operator instructions]

I would now like to introduce your host for today's call, David Zbojniewicz, Vice President of Investor Relations. Mr. Zbojniewicz, you may begin.

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 2020 first-quarter financial results. Given the extenuating circumstances around COVID-19, we will begin today's call with a non-providing commentary around the impact to our business. Ynon and Joe will then provide some commentary on our results, after which, we will provide some 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 discussion, 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 and loss, adjusted earnings and loss per share, earnings before interest, taxes, depreciation and amortization or EBITDA, adjusted EBITDA, free cash flow and constant currency. Please note that 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, corporate.mattel.com.

Before we begin, I'd like to remind you that certain statements made during the call may include forward-looking statements related to the future performance of our business, brands and product lines. These statements are based on currently available information and assumptions. 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, including risks and uncertainties associated with the COVID-19 pandemic.

We described some of these uncertainties in the Risk Factors section of our 2018 Annual Report on Form 10-K, 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 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.

Thank you, everyone, for joining Mattel's first-quarter 2020 earnings call. We hope that you and your loved ones are safe and healthy. Since our last earnings call, the world has been facing the unprecedented health and economic impact of COVID-19. While there is no playbook for a pandemic of this nature, we have been quickly adjusting the way we operate and how we manage the company. Our top priority has been to protect the health and safety of our people, and at the same time, mitigate the disruption to our business.