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MATTEL REPORTS RECORD EARNINGS FOR FOURTH QUARTER AND YEAR, FIFTH CONSECUTIVE YEAR OF STRONG EARNINGS GROWTH

 LOS ANGELES, Feb. 4 /PRNewswire/ -- Mattel Inc. (NYSE: MAT) today reported record net income of $144 million, up 23 percent on record sales of $1.85 billion. Earnings per share were $1.53 before a $.10 per share charge related to Child World and Lionel Leisure receivables, and $1.43 per primary share after the charge. 1992 was the fifth consecutive year in which the company's annual earnings have grown by more than 20 percent.
 Net sales of $1.85 billion were up 12 percent from $1.65 billion in 1991. Sales of toys, excluding Nintendo, increased by 19 percent in 1992.
 "At Mattel, consistent profit growth is our top priority, and we've delivered on that objective for five straight years," John W. Amerman, chairman and chief executive officer, said. "Our substantial growth in the face of a difficult worldwide economic, monetary and retail environment in 1992 demonstrates that our business strategies and financial discipline have continued to produce excellent results."
 In the fourth quarter ended Dec. 31, 1992, net income reached the record level of $35.7 million or $.35 per primary share, compared with $29.6 million or $.29 per share in 1991. Sales in the fourth quarter declined to $511 million in 1992 from $521 million in 1991 as a direct result of a $50 million reduction in Nintendo video game business associated with Mattel's decision to cease distribution of Nintendo products in Canada and Italy. Toy sales, excluding Nintendo, increased by 8 percent in the 1992 fourth quarter.
 "We are eagerly looking forward to 1993," Amerman said. "Our worldwide consumer sell-through last year was strong, and preview showings of this year's product line have resulted in positive reactions from major retailers. While the worldwide business outlook remains unsettled, we are confident that Mattel will continue its growth pattern in the coming year."
 Mattel Inc. is a worldwide leader in the design, manufacture and marketing of children's toys. With headquarters in El Segundo, Calif., Mattel has offices and facilities in 30 foreign countries and sells its products in more than 100 nations throughout the world.
 MATTEL, INC. AND SUBSIDIARIES
 Consolidated Results of Operations
 (In thousands, except per share amounts)
 For The For The
 Three Months Ended Year Ended
 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
 1992 1991(A) 1992 1991(A)
 Net sales $511,038 $521,271 $1,847,897 $1,649,173
 Cost of sales 258,008 265,519 922,443 836,227
 Gross profit 253,030 255,752 925,454 812,946
 Advertising
 and promotion
 expenses 103,486 89,090 302,010 252,445
 Other selling
 and administra-
 tive expenses 93,064(a) 100,714 362,176(b) 314,100
 Other income,
 net (7,617) (93) (9,726) (2,605)
 Operating profit 64,097 66,041 270,994 249,006
 Interest expense 16,046 17,320 55,046 55,311
 Income before income
 taxes and extra-
 ordinary item 48,051 48,721 215,948 193,695
 Provision for
 income taxes 12,400 19,100 72,000 71,300
 Income before
 extraordinary
 item 35,651 29,621 143,948 122,395
 Extraordinary
 item -- debt
 retirement --- --- --- (5,236)
 Net income $35,651 $29,621 $143,948 $117,159
 Income Per Share --
 Primary
 Income before
 extraordinary
 item $0.35 $0.29 $1.43 $1.20
 Extraordinary
 item -- debt
 retirement --- --- --- (0.05)
 Net income per
 share -- primary $0.35 $0.29 $1.43 $1.15
 Average number of
 common and common
 equivalent shares
 outstanding --
 primary 97,092 97,632 97,345 97,036
 Income Per Share --
 Fully Diluted
 Income before
 extraordinary
 item $0.34 $0.28 $1.38 $1.16
 Extraordinary item
 -- debt retirement --- --- --- (0.05)
 Net income per
 share -- fully
 diluted $0.34 $0.28 $1.38 $1.11
 Average number of
 common and common
 equivalent shares
 outstanding --
 fully diluted 104,636 105,450 105,005 103,911
 (a) Includes $5 million charge related to Lionel Leisure receivables.
 (b) Includes $5 million and $10 million charges related to Lionel Leisure and Child World receivables, respectively.
 Condensed Consolidated Balance Sheets
 (In thousands)
 Dec. 31, Dec. 31,
 1992 1991(A)
 Assets
 Cash, cash equivalents
 and marketable securities $295,186 $207,133
 Accounts receivable, net 377,565 342,212
 Inventories 156,665 146,433
 Prepaid expenses 43,083 30,510
 Total current assets 872,499 726,288
 Property, plant and equipment, net 223,202 209,488
 Other assets 164,592 163,456
 Total assets $1,260,293 $1,099,232
 Liabilities and Shareholders' Equity
 Current portion of long-term
 liabilities $8,914 $5,705
 Accounts payable and accrued
 liabilities 336,883 354,422
 Income taxes payable 67,702 50,378
 Total current liabilities 413,499 410,505
 Long-term debt 90,346 96,111
 Other long-term liabilities 33,534 45,029
 Senior notes 99,344 ---
 Convertible debt 97,547 97,349
 Shareholders' equity 526,023 450,238
 Total liabilities and
 shareholders' equity $1,260,293 $1,099,232
 (A) Restated for the merger with International Games, Inc.
 -0- 2/4/93
 /CONTACT: Glenn Bozarth of Mattel, 310-524-3521/
 (MAT)


CO: Mattel Inc. ST: California IN: HOU SU: ERN

MS-JL -- LA016 -- 3034 02/04/93 13:38 EST
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