For the third quarter of 2016, Mattel reported worldwide net sales were flat as reported, and were up 2% in constant currency, versus the prior year.
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Worldwide gross sales were flat as reported, and were up 1% in constant currency. Reported operating income was $317.4 million, and adjusted operating income was $324.1 million.
Reported earnings per share were $0.68, and adjusted earnings per share were $0.70.
Third quarter net sales in the North American Region, which consists of the United States, Canada and American Girl, increased by 3% as reported and in constant currency, versus the prior year. In the International Region, net sales decreased by 4% as reported, and were flat in constant currency.
Third quarter gross sales in the North American Region increased by 1% as reported, and were up 2% in constant currency. In the International Region, gross sales decreased by 3% as reported, and were up 1% in constant currency.
Gross margin decreased 60 basis points, driven mainly by the negative impact from changes in currency exchange rates.
Reported other selling and administrative expenses decreased $15.1 million and adjusted other selling and administrative expenses decreased $5.2 million, reflecting continued cost improvement initiatives.
Reported operating income for the quarter was $317.4 million, compared to the prior year's reported operating income of $300.8 million. Adjusted operating income for the quarter was $324.1 million, compared to the prior year's adjusted operating income of $317.4 million.
The Company's debt-to-total capital ratio as of September 30, 2016 was 50.2%.
For the nine months ended September 30, 2016, net cash flows used for operating activities were approximately $331 million, an increase of approximately $109 million versus the prior year, primarily driven by higher working capital usage and lower net income.
Cash flows used for investing activities were approximately $205 million, a decrease of approximately $1 million versus the prior year, primarily driven by changes in foreign currency forward exchange contracts, partially offset by payments for acquisitions.
Cash flows used for financing activities and other were approximately $60 million, compared to approximately $254 million in the prior year, primarily driven by proceeds from the issuance of long-term debt partially offset by higher net repayments of short-term debt. ■