Only a matter of time before Mattel collapses

Moody's negative on Mattel

Moody's says its B- rating on Mattel's (MAT) long-term debt and Negative Outlook reflect "execution risk" in the toy company stabilizing revenue and growing EBITDA from depressed levels.

"Mattel continues to face revenue pressures at Fisher-Price, Thomas and Friends and American Girl, which collectively generated approximately $1.5 billion or 30% of total gross revenue in 2018. EBITDA at $267 million in 2018, excluding $182 million of charges related to restructuring, integration, asset impairment and the Toys R Us bankruptcy, and $278 million in 2017 are significantly down from the $900 million levels in 2015/2016 and FCF remains materially negative," warns the ratings agency.

Fitch estimates EBITDA would need to jump to $450M for Mattel to become free cash flow breakeven. "This would require low-single-digit sales growth and gross margin improvement as cost savings subside in 2021," notes the firm.

May 23, 2019 2:26 PM ET|About: Mattel, Inc. (MAT)|By: Clark Schultz, SA News Editor

https://seekingalpha.com/news/3466567-moodys-negative-mattel

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And to think MP was the last one to close out the NYC office. He should have been booted years prior. He was the worst wet rag yes man we ever had in marketing. This is his legacy. The c-ap that will collect dust on the shelves. I feel bad for whatever company his poor performance ends up at.

Keep borrowing to stay afloat.

Greedy management. Sacrificing quality for margin. Change novelty products to be commodities. There is no future for this company.

To answer the question from @ZijjJwW-1pnb, it was Pike Misors and Sate Kcholman.

I stopped in a target yesterday and if I was a parent I couldn't tell you one thomas segment from another. So confusing. I'm embarrassed to admit I work for the company. The DC figures were worse. They looked like they hired a blind person the sculpt these figures. Overall we make garbage.

Has anyone looked at Thomas lately? Who's the bonehead that watered that line down and then made it so it all works together? Segmentation is garbage, packaging is terrible and convoluted and the collectible aspect is completely out the window. AG is no better, their products went from premium to cost reduced garbage. There was a time when that was the epitome of family run, down home quality product. now? it's target private label level junk.

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Only a matter of time before Mattel collapses

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