DreamWorks Animation Reports First Quarter 2009 Financial Results
4/28/2009 4:02:00 PM
"This marks the Company's strongest first quarter ever, attributable
primarily to the blockbuster performance of
For the quarter,
"Having two of the top home video releases in back-to-back quarters
demonstrates the continued strength of our product in the home entertainment
market," stated
Kung Fu Panda, DreamWorks Animation's most successful original film ever,
contributed approximately
The Company's 2007 and 2006 fall releases, Bee Movie and Flushed Away,
delivered
Monsters vs. Aliens, the Company's 2009 release, contributed
The Company's 2006 and 2007 summer releases, Over the Hedge and Shrek the
Third, delivered
Costs of revenue for the quarter equaled
Results for the quarter also included a tax benefit of approximately
The Company also provided an update to its share repurchase program. Year
to date, it has purchased
Items related to the earnings press release for the first quarter of 2009 will be discussed in more detail on the Company's first 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
DreamWorks Animation is principally devoted to developing and producing
computer generated, or CG, animated feature films. With world-class creative
talent, a strong and experienced management team and advanced CG filmmaking
technology and techniques, DreamWorks Animation makes high quality CG animated
films meant for a broad movie-going audience. The Company anticipates
releasing its feature films into both conventional and IMAX(R) theatres
worldwide. The Company has theatrically released a total of eighteen animated
feature films, including Shrek, Shrek 2, Shark Tale,
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
March 31, December 31,
2009 2008
---- ----
(in thousands, except par value
and share amounts)
Assets
Cash and cash equivalents $260,630 $262,644
Trade accounts receivable, net
of allowance for doubtful accounts 4,998 4,550
Income taxes receivable 11,490 6,468
Receivable from Paramount, net of
reserve for returns and allowance
for doubtful accounts 233,284 186,522
Film costs, net 609,894 638,243
Prepaid expenses and other assets 41,113 31,453
Property, plant and equipment, net
of accumulated depreciation
and amortization 121,802 114,913
Deferred taxes, net 13,501 27,049
Goodwill 34,216 34,216
------ ------
Total assets $1,330,928 $1,306,058
========== ==========
Liabilities and Equity
Liabilities:
Accounts payable $1,162 $7,499
Accrued liabilities 91,894 115,158
Payable to former
stockholder 44,506 54,192
Deferred revenue and other
advances 64,022 38,857
Borrowings and other debt 70,059 70,059
------ ------
Total liabilities 271,643 285,765
Commitments and contingencies
Equity:
Stockholders' equity:
Class A common stock, par
value $.01 per share,
350,000,000 shares
authorized, 95,392,465 and
95,381,143 shares issued,
as of March 31, 2009 and
December 31, 2008 ,
respectively 954 954
Class B common stock, par
value $.01 per share,
150,000,000 shares
authorized, 11,419,461
shares issued and
outstanding, as of
March 31, 2009 and
December 31, 2008 114 114
Additional paid-in capital 884,627 876,651
Retained earnings 707,571 645,261
Less: Class A Treasury
common stock, at cost,
19,184,505 and 17,432,728
shares, as of March 31,
2009 and December 31,
2008, respectively (536,922) (505,628)
-------- --------
Total stockholders' equity 1,056,344 1,017,352
Minority interest 2,941 2,941
----- -----
Total equity 1,059,285 1,020,293
--------- ---------
Total liabilities and
equity $1,330,928 $1,306,058
========== ==========
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months
Ended
March 31,
-----------
2009 2008
---- ----
(in thousands, except per
share amounts)
Revenues $263,524 $157,172
Costs of revenues 156,406 96,491
------- ------
Gross profit 107,118 60,681
Product development 2,368 -
Selling, general and administrative expenses 20,691 26,722
------ ------
Operating income 84,059 33,959
Interest income, net 539 2,983
Other income, net 1,452 777
Increase in income tax benefit payable to
former stockholder (16,010) (9,430)
------- ------
Income before income taxes 70,040 28,289
Provision for income taxes 7,730 2,190
----- -----
Net income $62,310 $26,099
======= =======
Basic net income per share $0.71 $0.28
----- -----
Diluted net income per share $0.71 $0.28
----- -----
Shares used in computing net income per share
Basic 87,465 92,314
Diluted 88,102 92,416
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months
Ended
March 31,
-----------
2009 2008
---- ----
(in thousands)
Operating activities
Net income $62,310 $26,099
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization and write off of film costs 135,237 92,511
Stock compensation expense 5,854 9,695
Depreciation and amortization 726 582
Revenue earned against deferred revenue and
other advances (10,831) (2,552)
Deferred taxes, net 13,548 2,644
Change in operating assets and
liabilities:
Trade accounts receivable (448) (12,092)
Receivable from Paramount (46,762) 117,018
Film costs (101,657) (97,404)
Prepaid expenses and other assets (9,664) 10,499
Accounts payable and accrued liabilities (29,431) (33,397)
Payable to former stockholder (9,686) (24,316)
Income taxes payable/receivable, net (5,022) (20,324)
Deferred revenue and other advances 38,496 38,473
------ ------
Net cash provided by operating activities 42,670 107,436
Investing activities
Purchases of property, plant and equipment (13,411) (6,775)
------- ------
Net cash used in investing activities (13,411) (6,775)
Financing Activities
Receipts from exercise of stock options 21 120
Excess tax benefits from employee
equity awards - 6
Purchase of treasury stock (31,294) (83,837)
------- -------
Net cash used in financing activities (31,273) (83,711)
------- -------
Increase\(Decrease) in cash and cash
equivalents (2,014) 16,950
Cash and cash equivalents at
beginning of period 262,644 292,489
------- -------
Cash and cash equivalents at end of period $260,630 $309,439
======== ========
Supplemental disclosure of cash flow
information:
Cash paid/(received) during the period for
income taxes, net $(878) $19,864
===== =======
Cash paid during the period for
interest, net of amounts capitalized $218 $342
==== ====
SOURCE
CONTACT: DreamWorks Animation Investor Relations, +1-818-695-3900,
ir@dreamworksanimation.com, or
+1-818-695-3658, shannon.olivas@dreamworks.com
Web Site: http://www.dreamworksanimation.com
