10/27/2009 4:03:00 PM
"Monsters vs. Aliens is off to a strong start in its initial home video release and we continue to see very good performance in home entertainment from our two 2008 titles and our catalogue," said
Monsters vs. Aliens, the Company's 2009 release, contributed
The Company's fall 2008 release,
The Company's 2007 releases, Shrek the Third and Bee Movie, delivered
Library and other titles contributed
"We plan to monetize Shrek The Musical in a number of ways going forward," said
Costs of revenue for the quarter equaled
Results for the quarter include a tax benefit of approximately
Looking ahead to the remainder of the year, the Company's fourth quarter results are expected to be driven primarily by its two new holiday television specials: Monsters vs. Aliens: Mutant Pumpkins from Outer Space and Merry
Items related to the earnings press release for the third quarter of 2009 will be discussed in more detail on the Company's third quarter 2009 earnings conference call later today.
Conference Call Information
DreamWorks Animation will host a conference call and webcast to discuss the results on
A replay of the conference call will be available shortly after the call ends on
About
DreamWorks Animation creates high-quality entertainment, including CG animated feature films, television specials and series, live entertainment properties and online virtual worlds, meant for audiences around the world. The Company has world-class creative talent, a strong and experienced management team and advanced filmmaking technology and techniques. All of DreamWorks Animation's feature films are now being produced in 3D. The Company has theatrically released a total of 18 animated feature films, including the franchise properties, Shrek,
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's plans, prospects, strategies, proposals and our beliefs and expectations concerning performance of our current and future releases and anticipated talent, directors and storyline for our upcoming films and other projects, constitute forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections about the industry in which we operate and management's beliefs and assumptions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of
** FINANCIAL TABLES ATTACHED**
UNAUDITED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2009 2008
---- ----
(in thousands, except par
value and share amounts)
Assets
Cash and cash equivalents $347,230 $262,644
Trade accounts receivable, net
of allowance for doubtful
accounts 1,312 4,550
Income taxes receivable 24,614 6,468
Receivable from Paramount , net
of reserve for returns and
allowance for doubtful accounts 111,032 186,522
Film costs, net 658,995 638,243
Prepaid expenses and other assets 44,532 31,453
Property, plant and equipment,
net of accumulated depreciation
and amortization 149,641 114,913
Deferred taxes, net 3,704 27,049
Goodwill 34,216 34,216
------ ------
Total assets $1,375,276 $1,306,058
========== ==========
Liabilities and Equity
Liabilities:
Accounts payable $2,611 $7,499
Accrued liabilities 94,520 115,158
Payable to former stockholder 54,856 54,192
Deferred revenue and other
advances 47,769 38,857
Borrowings and other debt 70,059 70,059
------ ------
Total liabilities 269,815 285,765
Commitments and contingencies
Equity:
Stockholders' equity:
Class A common stock, par
value $.01 per share,
350,000,000 shares
authorized, 95,493,256 and
95,381,143 shares issued as
of September 30, 2009 and
December 31, 2008,
respectively 955 954
Class B common stock, par value
$.01 per share, 150,000,000
shares authorized, 11,419,461
shares issued and outstanding
as of September 30, 2009 and
December 31, 2008 114 114
Additional paid-in capital 907,141 876,651
Retained earnings 752,735 645,261
Less: Class A Treasury common
stock, at cost, 20,149,343
and 17,432,728 shares as of
September 30, 2009 and
December 31, 2008,
respectively (558,425) (505,628)
-------- --------
Total stockholders' equity 1,102,520 1,017,352
Minority interest 2,941 2,941
----- -----
Total equity 1,105,461 1,020,293
--------- ---------
Total liabilities and equity $1,375,276 $1,306,058
========== ==========
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
--------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
(in thousands, except per share amounts)
Revenues $135,448 $151,525 $530,962 $450,227
Costs of revenues 89,066 75,518 319,494 248,101
------ ------ ------- -------
Gross profit 46,382 76,007 211,468 202,126
Product development 155 692 2,616 1,129
Selling, general and
administrative expenses 24,687 29,180 70,209 82,914
------ ------ ------ ------
Operating income 21,540 46,135 138,643 118,083
Interest income, net 237 2,312 1,755 7,769
Other income, net 2,191 1,444 5,256 3,301
Increase in income tax benefit
payable to former stockholder (2,130) (7,760) (29,160) (25,200)
------ ------ ------- -------
Income before income taxes 21,838 42,131 116,494 103,953
Provision for income taxes 2,230 4,780 9,020 13,010
----- ----- ----- ------
Net income $19,608 $37,351 $107,474 $90,943
======= ======= ======== =======
Basic net income per share $0.23 $0.42 $1.24 $1.00
----- ----- ----- -----
Diluted net income per share $0.23 $0.41 $1.23 $0.99
----- ----- ----- -----
Shares used in computing net
income per share:
Basic 85,882 89,281 86,402 90,667
Diluted 87,129 90,665 87,355 91,755
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
---------------
2009 2008
---- ----
(in thousands)
Operating activities
Net income $107,474 $90,943
Adjustments to reconcile net
income to net cash provided by
operating activities:
Amortization and write off of
film costs 266,024 225,884
Stock compensation expense 22,478 28,533
Depreciation and amortization 2,497 2,721
Revenue earned against deferred
revenue and other advances (69,146) (58,419)
Deferred taxes, net 23,345 591
Change in operating assets and
liabilities:
Trade accounts receivable 3,238 (11,497)
Receivable from Paramount 75,490 200,680
Film costs (269,011) (296,044)
Prepaid expenses and other assets (13,710) 10,158
Accounts payable and accrued
liabilities (25,157) 1,910
Payable to former stockholder 664 (12,444)
Income taxes payable/receivable, net (17,317) (16,991)
Deferred revenue and other advances 84,964 88,877
------ ------
Net cash provided by operating
activities 191,833 254,902
------- -------
Investing activities
Purchases of property, plant and
equipment (55,030) (33,088)
------- -------
Net cash used in investing activities (55,030) (33,088)
------- -------
Financing Activities
Purchase of treasury stock (52,797) (177,840)
Receipts from exercise of stock options
and excess tax benefits from employee
equity awards 580 1,442
--- -----
Net cash used in financing activities (52,217) (176,398)
------- --------
Increase in cash and cash equivalents 84,586 45,416
Cash and cash equivalents at beginning
of period 262,644 292,489
------- -------
Cash and cash equivalents at end
of period $347,230 $337,905
======== ========
Supplemental disclosure of cash flow
information:
Cash paid during the period for income
taxes, net $3,347 $29,271
====== =======
Cash paid during the period for
interest, net of amounts capitalized $506 $719
==== ====
SOURCE
DreamWorks Animation Investor Relations, +1-818-695-3900, ir@dreamworksanimation.com, or DreamWorks Animation Corporate Communications, +1-818-695-3658, shannon.olivas@dreamworks.com
