DreamWorks Animation SKG Inc. Reports Operating Results (10-Q)

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Nov 02, 2012
DreamWorks Animation SKG Inc. (DWA, Financial) filed Quarterly Report for the period ended 2012-09-30.

Dreamworks Animation Skg, Inc. has a market cap of $1.67 billion; its shares were traded at around $20.61 with a P/E ratio of 25.5 and P/S ratio of 2.4. Dreamworks Animation Skg, Inc. had an annual average earning growth of 11.6% over the past 5 years.

Highlight of Business Operations:

Classic Media generates revenues from television and video licensing, licensing of intellectual property for sale or use including consumer products, merchandise, live performances and music publishing and home entertainment sales. The consolidation of Classic Media did not have a material impact on our consolidated operating results for the three and nine months ended September 30, 2012. However, we anticipate that Classic Media will begin to have a material impact on our consolidated operating results beginning with the fourth quarter of 2012 as, generally, Classic Media derives a significant amount of its sales from its holiday-themed content and merchandise.

In addition, we generate royalty-based revenues from the licensing of our character and film elements to consumer product companies, home entertainment companies, theme parks, cruise ships and hotels worldwide. We have also entered into business activities beyond our core feature film business, including the development, production and licensing of animated television specials/series and live performances. Certain revenue and cost activities related to our live performances and our television specials/series are not subject to the Paramount Agreements and, accordingly, we receive payment and record revenues directly from third parties. Historically, the revenue activities related to our live performances have been minor relative to the size of our animated feature film business. We launched a live arena touring show based on the characters in our feature film How to Train Your Dragon on June 27, 2012. This show had a limited international launch at the end of March 2012. During the three and nine months ended September 30, 2012, we recorded $4.8 million of revenues generated from the live arena touring show. During the three and nine months ended September 30, 2012, we recorded operating expenses of $9.5 million and $12.9 million, respectively, related to this show.

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