Kung Fu Panda 2 Drives DreamWorks Animation's Third Quarter
Created 10/26/2011 - 12:43
files/pictures/picture-35.jpgPress Release from DreamWorks Animation SKG, Inc.
GLENDALE, Calif., Oct. 25, 2011 /PRNewswire/ -- DreamWorks Animation SKG, Inc. (Nasdaq: DWA) today announced financial results for its third quarter ended September 30, 2011. For the quarter, the Company reported total revenue of $160.8 million and net income of $19.7 million, or $0.23 per share on a fully diluted basis.
"DreamWorks Animation's third quarter results were driven by the blockbuster international box office success of Kung Fu Panda 2, the number one animated movie of the year and the fourth highest-grossing film on a worldwide basis," said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. "The next big event for the Company is the theatrical release of Puss In Boots on October 28th and we look forward to seeing how it performs around the world through the fourth quarter."
Kung Fu Panda 2, which was released on May 26, 2011, contributed $39.4 million of revenue in the quarter, generated primarily by its international box office performance. It has grossed approximately $663.6 million in worldwide box office to date.
Megamind contributed $25.8 million of revenue in the quarter, driven primarily by domestic pay television. The film reached an estimated 4.6 million home entertainment units sold worldwide through the end of the third quarter, net of actual and estimated future returns.
Shrek Forever After and How to Train Your Dragon contributed $15.0 million and $9.2 million of revenue in the quarter, respectively, driven primarily by international pay television and worldwide home entertainment. Each film has reached an estimated 9.0 million home entertainment units, sold worldwide through the end of the third quarter, net of actual and estimated future returns.
Library and other items contributed approximately $71.4 million of revenue to the quarter, including $18.8 million of revenue attributable to non-film businesses.
Costs of revenue for the quarter equaled $108.0 million. Selling, general and administrative expenses totaled $26.9 million, including approximately $6.4 million of stock-based compensation expense.
The Company's income tax expense for the third quarter was $7.6 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 26.5% for the third quarter.
Year to date, the Company has repurchased approximately 0.9 million shares for $25 million. The Company has $125 million remaining under its current authorization.
"DreamWorks Animation's financial results tend to fluctuate due to, among other factors, the timing of our feature film releases and the number of our films in any given year. This is the case in the third quarter of 2011, in part because our financial results reflect the timing of the international theatrical release of Kung Fu Panda 2 this year compared to Shrek Forever After in 2010," added Lew Coleman, Chief Financial Officer and President of DreamWorks Animation.
The Company's fourth quarter results are expected to be driven primarily by the performance of Puss In Boots at the worldwide box office as well as the performances of Kung Fu Panda 2 and several of the Company's television specials in the home entertainment market.
Items related to the earnings press release for the third quarter of 2011 will be discussed in more detail on the Company's earnings conference call later today.
About DreamWorks Animation
DreamWorks Animation creates high-quality entertainment, including CG animated feature films, television specials and series, live entertainment properties and online virtual worlds, meant for audiences around the world. The Company has world-class creative talent, a strong and experienced management team and advanced filmmaking technology and techniques. DreamWorks Animation has been named one of the "100 Best Companies to Work For" by FORTUNE® Magazine for three consecutive years. In 2011, DreamWorks Animation ranks #10 on the list. All of DreamWorks Animation's feature films are now being produced in 3D. The Company has theatrically released a total of 22 animated feature films, including the franchise properties of Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.