Search form

DreamWorks Animation Reports Second Quarter Loss

DreamWorks Animation announces financial results for its second quarter ended June 30, reporting total revenue of $122.3 million with a net loss of $15.4 million, or 18 cents per share.

GLENDALE, CA -- DreamWorks Animation today announced financial results for its second quarter ended June 30, 2014. For the quarter, the Company reported total revenue of $122.3 million, a net loss attributable to the Company of $15.4 million, or a loss of $0.18 per share.

"How to Train Your Dragon 2 is the ninth highest-grossing film of the year so far on a worldwide basis and it has yet to be released in several significant international territories," said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. "It will be a highly profitable film for the Company and DreamWorks Dragons will remain a very valuable franchise for many years to come."

The feature film segment contributed revenue of $69.7 million and gross profit of $23.9 million to the second quarter.

How to Train Your Dragon 2, which was released theatrically on June 13, 2014, has reached $166 million at the domestic box office and $262 million at the international box office for a worldwide gross of $428 million to date. The film contributed feature film revenue of $2.6 million to the second quarter and remains in an un-recouped position with the Company's primary distributor.

Mr. Peabody & Sherman contributed feature film revenue of $1.5 million to the second quarter and remains in an un-recouped position with the Company's distributor.

Turbo contributed feature film revenue of $11.0 million to the second quarter, primarily from home entertainment and international pay television. The film reached an estimated 5.1 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.

The Croods contributed feature film revenue of $25.5 million to the second quarter, primarily from international pay television. The film reached an estimated 7.4 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.

Rise of the Guardians contributed feature film revenue of $2.0 million to the second quarter, primarily from home entertainment. The film reached an estimated 5.7 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.

Library titles contributed feature film revenue of $27.1 million to the second quarter.

The Television segment contributed revenue of $20.0 million and gross profit of $1.2 million to the second quarter, primarily from Turbo F.A.S.T. on Netflix, Classic Media content and DreamWorks Dragons: Riders of Berk on Cartoon Network.

The Consumer Products segment contributed revenue of $18.5 million and gross profit of $7.3 million to the second quarter, mainly from the How to Train Your Dragon franchise.

The segment consisting of all other items contributed revenue of $14.1 million and gross profit of $2.3 million to the second quarter, primarily from AwesomenessTV.

The Company's second quarter 2014 results were impacted by the reduction of the contingent consideration related to its prior acquisition of AwesomenessTV. The estimated fair value of the contingent consideration was reduced by $7.2 million to $91.8 million and resulted in a gain of $0.09 per share in the quarter.

Costs of revenue for the second quarter equaled $87.5 million. Selling, general and administrative expenses totaled $54.6 million, including $2.9 million of stock-based compensation expense.

The Company's combined income tax expenses for the second quarter was approximately $900 thousand. The Company's combined effective tax rate, its actual tax rate coupled with the effect of a tax sharing agreement with a former stockholder, was approximately negative 6% for the second quarter. 

The Company's third quarter 2014 results are expected to be driven primarily by its feature film segment, including How to Train Your Dragon 2's continued performance at the worldwide box office.

Source: DreamWorks Animation

randomness