DreamWorks Animation Reports First Quarter 2012 Financial Results
GLENDALE, Calif., May 2, 2012Â — DreamWorks Animation SKG, Inc. (NASDAQ: DWA) today announced financial results for its first quarter ended March 31, 2012. For the quarter, the Company reported total revenue of $136.1 million and net income of $9.1 million, or $0.11 per share on a fully diluted basis.
“DreamWorks Animation’s first quarter of 2012 was driven primarily by Puss In Boots‘ continued success at the international box office and the solid performance from its home video release to date,” said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. “We look forward to releasing the third chapter of our blockbuster Madagascar franchise in theaters on June 8th.”
Puss In Boots, which has grossed approximately $554 million in worldwide box office to date, contributed $73.6 million of revenue to the quarter, driven primarily by home entertainment and international box office. The film reached an estimated 3.8 million home entertainment units sold worldwide through the end of the first quarter, net of actual and estimated future returns.
Kung Fu Panda 2, the Company’s summer 2011 release, contributed $14.1 million of revenue to the quarter, driven primarily by home entertainment. The film reached an estimated 5.5 million home entertainment units sold worldwide through the end of the first quarter, net of actual and estimated future returns.
Megamind, the Company’s fall 2010 release, contributed $5.0 million of revenue to the quarter, driven primarily by international pay television and worldwide home entertainment. The film reached an estimated 5.3 million home entertainment units sold worldwide through the end of the first quarter, net of actual and estimated future returns.
Shrek Forever After, the Company’s summer 2010 release, contributed $2.5 million of revenue to the quarter, driven primarily by home entertainment. The film reached an estimated 10.0 million home entertainment units sold worldwide through the end of the quarter, net of actual and estimated future returns.
Library, which now includes How to Train Your Dragon, contributed approximately $27.4 million of revenue to the quarter. Titles are added to the Company’s Library during the quarter of the second anniversary of the domestic theatrical release. All other items, including non-feature film businesses, contributed $13.5 million of revenue to the quarter, of which Shrek The Musical was the single largest contributor.
Costs of revenue for the quarter equaled $96.5 million. Selling, general and administrative expenses totaled $27.5 million, including approximately $4.9 million of stock-based compensation expense.
The Company’s income tax expense for the first quarter was $5.1 million. The Company’s combined effective tax rate – the actual tax rate coupled with the effect of the Company’s tax sharing agreement with a former stockholder – was approximately 35.5% for the first quarter.
The Company’s second quarter and full year results are expected to be driven by Madagascar 3: Europe’s Most Wanted, which is scheduled to be released on June 8, 2012. Television revenue for Kung Fu Panda 2 and home entertainment revenue for Puss In Boots are also expected to contribute to the Company’s second quarter results.
Items related to the earnings press release for the first quarter of 2012 will be discussed in more detail on the Company’s earnings conference call later today.
Conference Call Information
DreamWorks Animation will host a conference call and webcast to discuss the results on Wednesday, May 2, 2012, at 4:30 p.m. (ET). Investors can access the call by dialing (800) 230-1059 in the U.S. and (612) 234-9959 internationally and identifying “DreamWorks Animation Earnings” to the operator. The call will also be available via live webcast at www.dreamworksanimation.com.
A replay of the conference call will be available shortly after the call ends on Wednesday, May 2, 2012. To access the replay, dial (800) 475-6701 in the U.S. and (320) 365-3844 internationally and enter 244157 as the conference ID number. Both the earnings release and archived webcast will be available on the Company’s website at www.dreamworksanimation.com.