DreamWorks Reports Profits for Q4 2013

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DreamWorks Animation announced a profitable final quarter for 2013, as income outside the feature film market compensated for losses associated with Turbo.

For the quarter, the company reported total revenue of $204.3 million and net income of $17.2 million, which includes impairment charges and a gain on the sale of technology in the quarter.

For the 12 months ended Dec. 31, DreamWorks reported total revenue of $706.9 million and net income of $55.1 million, or earnings per share of $0.65 cents on a fully diluted basis.

The company’s fourth quarter 2013 results included an impairment charge of $13.5 million, or a loss of approximately $0.12 cents of earnings per share, related to the Turbo feature film, as a result of its performance during the last two months of the quarter. DreamWorks also recorded an impairment charge of $6.7 million, or a loss of $0.06 cents per share, related to other content.

Additionally, other operating Income of $6.4 million, or a gain of approximately $0.05 cents per share, was recorded in the quarter related to the sale of a consumer social app that was in development.

“We made significant progress in 2013, transforming and positioning DreamWorks Animation for long-term success as a diversified family entertainment company,” said Jeffrey Katzenberg, CEO of DreamWorks Animation. “Beyond our feature films we plan to continue to invest in our television, consumer products, digital and location-based entertainment businesses, where we believe there are significant growth opportunities for our company going forward.”

The company plans to release three features in 2014, led by Mr. Peabody & Sherman on March 7, followed by the highly anticipated How to Train Your Dragon 2 in June, and Home in November.

The feature film segment contributed revenue of $127.9 million and gross profit of $53.4 million to the fourth quarter.

Turbo, which was released theatrically on July 17, reached $282.6 million at the worldwide box office. The film contributed feature film revenue of $1.6 million in the quarter. Turbo was released into the domestic home entertainment market on November 12. The film reached an estimated 3.3 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.

The Croods contributed feature film revenue of $59.7 million in the quarter, primarily from home entertainment. The film was released into the domestic home entertainment market on Oct. 1, and reached an estimated 6.7 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.

Rise of the Guardians contributed feature film revenue of $8.5 million to the quarter, primarily from television and home entertainment. The film reached an estimated 5.2 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.

Madagascar 3: Europe’s Most Wanted contributed feature film revenue of $11.4 million to the quarter, primarily from home entertainment. The film reached an estimated 8.8 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.

Library titles contributed feature film revenue of $46.8 million to the quarter.

The television segment contributed revenue of $47.1 million and gross profit of $7.3 million to the fourth quarter, primarily from Classic Media and DreamWorks specials holiday content, as well as DreamWorks Dragons: Riders of Berk on Cartoon Network.

The consumer products segment contributed revenue of $12.4 million and gross profit of $2.0 million to the fourth quarter, primarily from Classic Media.

The segment consisting of all other items contributed revenue of $16.8 million and gross profit of $2.3 million to the fourth quarter, primarily from streaming rights related to Shrek The Musical.

The company’s full-year 2014 results are expected to be driven primarily by the performance of Mr. Peabody & Sherman and How to Train Your Dragon 2.

Mr. Peabody & Sherman

Mr. Peabody & Sherman