DreamWorks Animation announces financial results for its fourth quarter ended December 31, 2012.
GLENDALE, CA -- DreamWorks Animation announced financial results for its fourth quarter ended December 31, 2012. In the quarter, the Company reported total revenue of $264.7 million and a net loss of $82.7 million, or a loss of $0.98 per share. For the twelve months ended December 31, 2012, the Company reported total revenue of $749.8 million and a net loss of $36.4 million, or a loss of $0.43 per share.
Impacting DreamWorks Animation's fourth quarter and full-year 2012 results is a charge of approximately $165 million, which includes a write-down of film costs for Rise of the Guardians in the amount of $87 million, charges totaling $54 million related to the Company's decision to return Me & My Shadow back to development, a write-off of a number of other development projects in the amount of $20 million and a charge of $4.6 million related to restructuring activities.
"While Rise of the Guardians did not achieve the level of box office success that we have come to expect from a DreamWorks Animation film, we have made several changes to our future slate that we believe will position us well for the next two years," said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. "We are now looking ahead to our next release — and our first under our new distribution agreement with Twentieth Century Fox — The Croods on March 22, 2013."
Rise of the Guardians, which has grossed $302.3 million at the worldwide box office, contributed revenue of $6.1 million to the quarter.
Madagascar 3: Europe's Most Wanted, which has grossed $746.6 million at the worldwide box office,contributed revenue of $95.2 million to the quarter, primarily from home entertainment and international box office. The film reached an estimated 6.0 million net home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.
Puss In Boots contributed $10.5 million of revenue to the quarter, primarily from pay television and home entertainment. The film reached an estimated 6.2 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.
Kung Fu Panda 2 contributed $4.8 million of revenue to the quarter, primarily from home entertainment. The film reached an estimated 6.5 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.
Library, which now includes Megamind, contributed approximately $63.4 million of revenue to the quarter. Other items, including holiday television specials and live theatrical properties, contributed approximately $53.1 million of revenue to the quarter. Classic Media contributed approximately $31.6 million of revenue to the quarter.
Costs of revenue for the quarter equaled $354 million. Selling, general and administrative expenses totaled $36.5 million, including approximately $3.1 million of stock-based compensation expense.
The Company's income tax benefit for the fourth quarter was $42.4 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 34.3% for the fourth quarter.
The Company has $125 million remaining under its current share repurchase authorization.
The Company's full year 2013 results are expected to be driven primarily by the performance of The Croods, which is scheduled to be released on March 22, 2013 and Turbo, which is scheduled to be released on July 19, 2013.
Items related to the earnings press release for the fourth quarter of 2012 will be discussed in more detail on the Company's earnings conference call later today.
Source: DreamWorks Animation SKG, Inc.
Formerly Editor-in-Chief of Animation World Network, Jennifer Wolfe has worked in the Media & Entertainment industry as a writer and PR professional since 2003.
