DreamWorks Animation SKG, Inc. (Nasdaq: DWA) today announced financial results for its first quarter ended March 31, 2013. For the quarter, the Company reported total revenue of $134.6 million and net income of $5.6 million, or $0.07 per share on a fully diluted basis.
“This year is off to an outstanding start for DreamWorks Animation. The Croods has reached a blockbuster level of nearly $480million at the worldwide box office and is well on its way to becoming the number one movie released during the first four months of 2013,” said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. “I’d like to congratulate and thank our new distribution partners at Twentieth Century Fox for helping to propel The Croods to global success and we now look forward to launching our summer tentpole, Turbo, in theaters on July 17th.”
“The strength of our worldwide box office results from The Croods and over-performance in home video from both of our 2012 titles demonstrate success in DreamWorks Animation’s core business so far this year,” added Ann Daly, Chief Operating Officer of DreamWorks Animation. “As importantly, we made great strides to advance a number of key growth initiatives in the areas of franchise-building, consumer products, television and location-based entertainment.”
The Croods, released theatrically on March 22, 2013, has reached $163.5 million at the domestic box office and $315.5 millionat the international box office for a worldwide gross of $479.0 million to date. The Croods contributed $4.0 million of revenue to the quarter.
Rise of the Guardians contributed $9.6 million of revenue to the quarter, primarily from home entertainment. The film reached an estimated 3.2 million home entertainment units sold worldwide through the end of the first quarter, net of actual and estimated future returns.
Madagascar 3: Europe’s Most Wanted contributed $22.8 million of revenue to the quarter, primarily from home entertainment. The film reached an estimated 7.2 million home entertainment units sold worldwide through the end of the first quarter, net of actual and estimated future returns.
Puss In Boots contributed $7.5 million of revenue to the quarter, primarily from home entertainment. The film reached an estimated 6.8 million home entertainment units sold worldwide through the end of the first quarter, net of actual and estimated future returns.
Library contributed $41.4 million of revenue to the quarter. Other items, including television series and live theatrical properties, contributed $20.9 million of revenue to the quarter. Classic Media contributed $27.9 million of revenue to the quarter.
Costs of revenue for the quarter equaled $85.5 million. Selling, general and administrative expenses totaled $42.8 million, including $3.9 million of stock-based compensation expense.
The Company’s income tax expense for the first quarter was $418 thousand. The Company’s combined effective tax rate – its actual tax rate coupled with the effect of its tax sharing agreement with a former stockholder – was approximately 15% for the first quarter. The Company currently expects that its full-year 2013 combined effective tax rate will be in the mid-to-high 20% range.
The Company also provided an update to its share repurchase program. Year to date, the Company has repurchased 1.3 million shares for $25 million. The Company has $100 million remaining under its current authorization.
The Company’s second quarter results are expected to be driven by the performance of The Croods at the worldwide box office. Television revenue from Madagascar 3: Europe’s Most Wanted is also expected to contribute revenue to the Company’s second quarter results.
Items related to the earnings press release for the first quarter of 2013 will be discussed in more detail on the Company’s earnings conference call later today.