DreamWorks Animation Reports Second Quarter 2009 Financial Results
7/28/2009 4:03:00 PM
"Our solid second quarter results were driven primarily by the continued
performance of our 2008 films, Kung Fu Panda and
Kung Fu Panda, the Company's 2008 summer release, contributed
approximately
The Company's fall 2008 release,
During the second quarter the Company amended its video game agreement
with Activision, which resulted in a financial impact to the quarter of
Monsters vs. Aliens, which was released on
The Company's 2007 releases, Bee Movie and Shrek the Third, delivered
Library and other titles contributed
Costs of revenue for the quarter equaled
Looking ahead, the Company's third quarter results are expected to be
driven primarily by the home entertainment performance of Monsters vs. Aliens,
which will be released on DVD and Blu-ray domestically on
The Company also provided an update to its share repurchase program. Year
to date, the Company has purchased approximately
Items related to the earnings press release for the second quarter of 2009 will be discussed in more detail on the Company's second 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 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
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
June December
30, 31,
2009 2008
---- ----
(in thousands,
except par value and
share amounts)
Assets
Cash and cash equivalents $348,796 $262,644
Trade accounts receivable, net of
allowance for doubtful accounts 2,123 4,550
Income taxes receivable 14,469 6,468
Receivable from Paramount, net
of reserve for returns and
allowance for doubtful accounts 113,988 186,522
Film costs, net 640,752 638,243
Prepaid expenses and other assets 47,358 31,453
Property, plant and equipment, net of
accumulated depreciation and
amortization 132,917 114,913
Deferred taxes, net 14,719 27,049
Goodwill 34,216 34,216
------ ------
Total assets $1,349,338 $1,306,058
========== ==========
Liabilities and Equity
Liabilities:
Accounts payable $2,249 $7,499
Accrued liabilities 92,244 115,158
Payable to former
stockholder 52,726 54,192
Deferred revenue and other
advances 56,942 38,857
Borrowings and other debt 70,059 70,059
------ ------
Total liabilities 274,220 285,765
Commitments and contingencies
Equity:
Stockholders' equity:
Class A common stock, par value $.01
per share, 350,000,000 shares
authorized, 95,420,728 and
95,381,143 shares issued, as of June
30, 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 June
30, 2009 and December 31, 2008 114 114
Additional paid-in capital 895,735 876,651
Retained earnings 733,127 645,261
Less: Class A Treasury common stock,
at cost, 20,127,485 and 17,432,728
shares, as of June 30, 2009 and
December 31, 2008, respectively (557,753) (505,628)
-------- --------
Total stockholders' equity 1,072,177 1,017,352
Minority interest 2,941 2,941
----- -----
Total equity 1,075,118 1,020,293
--------- ---------
Total liabilities and equity $1,349,338 $1,306,058
========== ==========
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months Six Months
Ended Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
(in thousands, except per share amounts)
Revenues $131,990 $141,530 $395,514 $298,702
Costs of revenues 74,022 76,092 230,428 172,583
------ ------ ------- -------
Gross profit 57,968 65,438 165,086 126,119
Product development 93 437 2,461 437
Selling, general and
administrative expenses 24,831 27,012 45,522 53,734
------ ------ ------ ------
Operating income 33,044 37,989 117,103 71,948
Interest income, net 979 2,474 1,518 5,457
Other income, net 1,613 1,080 3,065 1,857
Increase in income tax benefit
payable to former stockholder (11,020) (8,010) (27,030) (17,440)
------- ------ ------- -------
Income before income taxes 24,616 33,533 94,656 61,822
Provision (benefit) for
income taxes (940) 6,040 6,790 8,230
---- ----- ----- -----
Net income $25,556 $27,493 $87,866 $53,592
======= ======= ======= =======
Basic net income per share $0.30 $0.30 $1.01 $0.59
----- ----- ----- -----
Diluted net income per share $0.30 $0.30 $1.01 $0.58
----- ----- ----- -----
Shares used in computing net
income per share
Basic 85,890 90,370 86,673 91,366
Diluted 86,382 90,788 87,390 91,615
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
----------
2009 2008
---- ----
(in thousands)
Operating activities
Net income $87,866 $53,592
Adjustments to reconcile net income to
net cash provided by operating
activities:
Amortization and write off of film costs 192,183 158,931
Stock compensation expense 14,695 18,277
Depreciation and amortization 1,831 1,139
Revenue earned against deferred
revenue and other advances (51,667) (42,084)
Deferred taxes, net 12,330 (1,375)
Change in operating assets and
liabilities:
Trade accounts receivable 2,427 (10,702)
Receivable from Paramount 72,534 188,381
Film costs (183,574) (192,811)
Prepaid expenses and other assets (16,242) 14,304
Accounts payable and accrued liabilities (27,749) (15,428)
Payable to former stockholder (1,466) (20,205)
Income taxes payable/receivable, net (8,001) (11,538)
Deferred revenue and other advances 74,515 75,553
------ ------
Net cash provided by operating activities 169,682 216,034
Investing activities
Purchases of property, plant and
equipment (31,495) (18,765)
------- -------
Net cash used in investing activities (31,495) (18,765)
Financing Activities
Purchase of treasury stock (52,125) (88,661)
Receipts from exercise of stock options and
excess tax benefits from employee equity
awards 90 520
--- ---
Net cash used in financing activities (52,035) (88,141)
------- -------
Increase in cash and cash equivalents 86,152 109,128
Cash and cash equivalents at beginning
of period 262,644 292,489
------- -------
Cash and cash equivalents at end
of period $348,796 $401,617
======== ========
Supplemental disclosure of cash flow
information:
Cash paid during the period for income
taxes, net $2,373 $21,076
====== =======
Cash paid during the period for
interest, net of amounts capitalized $355 $567
==== ====
SOURCE
CONTACT: Investor Relations, +1-818-695-3900,
ir@dreamworksanimation.com, or Corporate Communications, +1-818-695-3658,
shannon.olivas@dreamworks.com, both of
Web Site: http://www.dreamworksanimation.com
