Mattel Inc (NASDAQ:MAT) Q2 2020 Earnings Conference Call - Final Transcript

Jul 23, 2020 • 05:00 pm ET

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Mattel Inc (NASDAQ:MAT) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Mattel Incorporated Second 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.

Executive
David Zbojniewicz

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; Joe Euteneuer, Mattel's Chief Financial Officer and Anthony DiSilvestro, Executive Advisor and Mattel's next Chief Financial Officer.

As you know, this afternoon, we reported Mattel's 2020 second quarter financial results. We will begin today's call with Ynon and Joe providing commentary on our results, after which we will provide time for Ynon, Richard, Joe and Anthony to take your questions.

To help supplement 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 and constant currency.

Please note that the sales figures referenced on this call will be stated in constant currency. In addition, please note that the gross sales related to our new plush products are included in our action figures, building sets, games and other categories breakout which are also referred to as challenger categories on this call. 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, categories and product lines. These statements are based on currently available information and assumptions 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 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 Q1 2020 quarterly report 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.

Executive
Ynon Kreiz

Thank you for joining Mattel's second quarter 2020 earnings call. On behalf of Mattel I hope that you are staying healthy and safe. We entered the quarter with extensive retail closures and distribution challenges and had to absorb a full quarter of COVID-19 impact but we demonstrated our execution capabilities and the