DreamWorks Animation SKG Inc. (DWA, Financial) filed Quarterly Report for the period ended 2011-03-31.
Dreamworks Animation Skg Inc. has a market cap of $2.26 billion; its shares were traded at around $26.73 with a P/E ratio of 13.5 and P/S ratio of 2.9.
Costs of Revenues. Costs of revenues for the three months ended March 31, 2011 totaled $72.0 million, a decrease of $34.2 million, compared to $106.2 million for the three months ended March 31, 2010.
Selling, General and Administrative Expenses. Total selling, general and administrative expenses increased $6.6 million to $30.1 million (including $6.7 million of stock-based compensation expense) for the quarter ended March 31, 2011 from $23.5 million (including $6.1 million of stock-based compensation expense) for the quarter ended March 31, 2010. The increase in selling, general and administrative expenses was primarily attributable to $2.5 million of higher salaries and benefits (including incentive compensation), $1.3 in increased professional fees and $1.1 million related to bad debt expense. The remaining increase was attributable to other higher selling, general and administrative expenses, none of which were individually material.
For the quarter ended March 31, 2011, our payable to former stockholder decreased as a result of our determination during the current period of our ability to claim certain tax deductions related to prior years. Accordingly, we recorded $4.6 million as a decrease in income tax benefit payable to former stockholder in our income statement. For the quarter ended March 31, 2010, we recorded $9.6 million in net tax benefits associated with the Tax Basis Increase as a reduction in the provision for income taxes and recorded an expense of $8.2 million, representing 85% of these recognized benefits, as an increase in income tax benefit payable to former stockholder.
Net Income. Net income for the three months ended March 31, 2011 was $8.8 million, or $0.10 per diluted share, as compared to net income of $21.7 million, or $0.24 net income per diluted share, in the corresponding period in 2010.
As of March 31, 2011, we had cash and cash equivalents totaling $86.1 million. Our cash and cash equivalents consist of cash on deposit and short-term money market investments, principally commercial paper and commercial paper mutual funds, that are rated AAA and with maturities of three months or less when purchased. Our cash and cash equivalents balance at March 31, 2011 decreased by $77.7 million from that of $163.8 million at December 31, 2010. Components of this change in cash for the three months ended March 31, 2011, as well as for the three months ended March 31, 2010, are provided below in more detail.
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Dreamworks Animation Skg Inc. has a market cap of $2.26 billion; its shares were traded at around $26.73 with a P/E ratio of 13.5 and P/S ratio of 2.9.
Highlight of Business Operations:
Revenues. For the three months ended March 31, 2011, our revenue was $108.0 million, a decrease of $54.1 million, or 33.4%, as compared to $162.1 million for the three months ended March 31, 2010. The lack of a theatrical release in the first quarter of 2011 led to lower revenues in the first quarter of 2011 when compared to the same period of the prior year, which benefited from revenues resulting from our first quarter 2010 release, How to Train Your Dragon. Additionally, our revenues for the three months ended March 31, 2011 were negatively affected by the elimination (as of April 1, 2010) of the 30-day lag in reporting international home entertainment results. The change in reporting resulted in $26.1 million of lower revenues during the three months ended March 31, 2011 as our December 2010 home entertainment releases in international territories (which would have been recorded in January 2011 absent the change) were included in our 2010 results. The decrease in revenues between periods was partially offset by an increase of $22.1 million in revenues contributed by the Prior year theatrical releases category, which resulted from an increased number of titles that comprise this category in the current period when compared to the same period of the prior year. Lastly, our All Other category decreased $16.5 million, which was primarily attributable to television market revenues earned by our film library titles, which were lower in the first quarter of 2011 in comparison to the first quarter of 2010 as a result of the timing of revenue recognition.Costs of Revenues. Costs of revenues for the three months ended March 31, 2011 totaled $72.0 million, a decrease of $34.2 million, compared to $106.2 million for the three months ended March 31, 2010.
Selling, General and Administrative Expenses. Total selling, general and administrative expenses increased $6.6 million to $30.1 million (including $6.7 million of stock-based compensation expense) for the quarter ended March 31, 2011 from $23.5 million (including $6.1 million of stock-based compensation expense) for the quarter ended March 31, 2010. The increase in selling, general and administrative expenses was primarily attributable to $2.5 million of higher salaries and benefits (including incentive compensation), $1.3 in increased professional fees and $1.1 million related to bad debt expense. The remaining increase was attributable to other higher selling, general and administrative expenses, none of which were individually material.
For the quarter ended March 31, 2011, our payable to former stockholder decreased as a result of our determination during the current period of our ability to claim certain tax deductions related to prior years. Accordingly, we recorded $4.6 million as a decrease in income tax benefit payable to former stockholder in our income statement. For the quarter ended March 31, 2010, we recorded $9.6 million in net tax benefits associated with the Tax Basis Increase as a reduction in the provision for income taxes and recorded an expense of $8.2 million, representing 85% of these recognized benefits, as an increase in income tax benefit payable to former stockholder.
Net Income. Net income for the three months ended March 31, 2011 was $8.8 million, or $0.10 per diluted share, as compared to net income of $21.7 million, or $0.24 net income per diluted share, in the corresponding period in 2010.
As of March 31, 2011, we had cash and cash equivalents totaling $86.1 million. Our cash and cash equivalents consist of cash on deposit and short-term money market investments, principally commercial paper and commercial paper mutual funds, that are rated AAA and with maturities of three months or less when purchased. Our cash and cash equivalents balance at March 31, 2011 decreased by $77.7 million from that of $163.8 million at December 31, 2010. Components of this change in cash for the three months ended March 31, 2011, as well as for the three months ended March 31, 2010, are provided below in more detail.
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