Mattel To Suspend Quarterly Dividend Beginning Q4 - Quick Facts

(RTTNews) - Mattel, Inc. (MAT) announced its Board determined to suspend the company's quarterly dividend beginning in the fourth quarter of 2017 in order to increase financial flexibility, strengthen the balance sheet and facilitate strategic investments. The suspension of the quarterly dividend, which was previously $0.15 per share, is expected to result in additional liquidity of approximately $50 million per quarter.

The company also announced a significantly expanded initiative to structurally simplify business and right-size cost structure. The company plans to eliminate at least $650 million in net costs over the next two years.

"Our Q3 performance was clearly disappointing, led by compression in North America driven by Toys "R" Us filing for bankruptcy, tighter retailer inventory management and challenges with certain underperforming brands," said Margo Georgiadis, CEO of Mattel.

For the third quarter of 2017, net sales were down 13% as reported, and down 14% in constant currency, versus the prior year's third quarter. Reported loss per share was $1.75, which was negatively impacted by a non-cash charge related to a valuation allowance on U.S. deferred tax assets of $561.9 million, and adjusted earnings per share was $0.09.