DreamWorks Animation SKG Inc. (DWA, Financial) filed Quarterly Report for the period ended 2009-06-30.
Dream Works Animation SKG Inc. develops and produces computer generated animated feature films for a broad movie-going audience. DreamWorks Animation SKG Inc. has a market cap of $2.51 billion; its shares were traded at around $28.68 with a P/E ratio of 15.5 and P/S ratio of 3.8.
Revenue for the quarter ended June 30, 2008 was comprised of amounts earned by a variety of films. Kung Fu Panda, the single greatest source of revenue for the second quarter of 2008, contributed $46.4 million earned in the domestic theatrical market and through ancillary revenue sources. In addition to merchandising and licensing revenue, ancillary revenue for Kung Fu Panda included non-recurring revenue associated with the completion of a strategic relationship, which accounted for slightly less than half of the films total revenue for the second quarter of 2008. Bee Movie, our 2007 fourth quarter release, generated $25.5 million of revenue primarily attributable to the international home entertainment market and Shrek the Third earned an additional $29.9 million of revenue earned primarily in the domestic pay television market. Our other properties, including our library of titles, contributed revenues totaling $39.7 million earned across a variety of worldwide markets.
Selling, General and Administrative Expenses. Total selling, general and administrative expenses decreased $2.2 million to $24.8 million (including $8.4 million of stock compensation expense) for the quarter ended June 30, 2009 from $27.0 million (including $8.3 million of stock compensation expense) for the quarter ended June 30, 2008. This 8.1% aggregate decrease is primarily related to approximately $1.3 million of lower company-wide incentive compensation and approximately $1.0 million of lower corporate travel expenses.
Net Income. Net income for the three months ended June 30, 2009 was $25.6 million, or $0.30 per diluted share, as compared to a net income of $27.5 million, or $0.30 net income per diluted share, in the corresponding period in 2008. Net income for the second quarter of 2009 benefited by approximately $9.0 million, or $0.10 per diluted share, from the recognition of deferred revenue related to several previously released titles in conjunction with the second quarter 2009 amendment to our video game distribution agreement.
Madagascar: Escape 2 Africa, our 2008 fourth quarter release, contributed the largest amount of revenue, $173.7 million, or 44% of the total revenues, during the six months ended June 30, 2009, earned in the worldwide theatrical and home entertainment markets. Kung Fu Panda reported an additional $66.8 million earned in the worldwide home entertainment, television and ancillary markets. Additionally, Monsters vs. Aliens, our most recent theatrical release, contributed $20.8 million of ancillary revenue, including merchandising and licensing revenue. Our distributor has reported no revenue for Monsters vs. Aliens since its initial release on March 27, 2009 because our distributor is entitled to recover its marketing and distribution costs before it is required to report any revenue generated from the exploitation of this film. Lastly, our library of titles contributed $114.3 million earned across several markets and Shrek the Musical, which debuted on Broadway in the fourth quarter of 2008, contributed $19.9 million of revenues.
Selling, General and Administrative Expenses. Total selling, general and administrative expenses decreased $8.2 million to $45.5 million (including $13.7 million of stock compensation expense) for the six months ended June 30, 2009 from $53.7 million (including $17.9 million of stock compensation expense) for the six months ended June 30, 2008. This 15.3% aggregate decrease spans across several selling, general and administrative categories, including a $4.2 million decrease in stock compensation (primarily due to the absence of expense associated with certain senior executive performance awards during the first quarter of 2009), approximately $1.6 million of lower company-wide incentive compensation and approximately $2.0 million of lower corporate travel expenses.
Read the The complete ReportDWA is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., David Dreman of Dreman Value Management, David Dreman of Dreman Value Management.
Dream Works Animation SKG Inc. develops and produces computer generated animated feature films for a broad movie-going audience. DreamWorks Animation SKG Inc. has a market cap of $2.51 billion; its shares were traded at around $28.68 with a P/E ratio of 15.5 and P/S ratio of 3.8.
Highlight of Business Operations:
Revenue for the quarter ended June 30, 2009 was comprised of amounts earned by a variety of films. Kung Fu Panda reported $32.7 million of revenue earned primarily in the domestic pay television market and Madagascar: Escape 2 Africa contributed revenue of $26.1 million earned mainly in the international home entertainment market (representing all international territories released through May 31, 2009, which territories on an historical basis have generally represented approximately 65-75% of our total reported international home entertainment revenue for the 12-week initial release period). Additionally, Monsters vs. Aliens, our most recent theatrical release, contributed $10.3 million of ancillary revenue. As somewhat typical for our films, our distributor reported no revenue for Monsters vs. Aliens during the quarter following its initial release because our distributor is entitled to recover its marketing and distribution costs before it is required to report any revenue generated from the exploitation of this film. Lastly, our library of titles contributed $52.8 million earned across several markets, including ancillary revenue, and Shrek the Musical, which debuted on Broadway in the fourth quarter of 2008, contributed $10.1 million of revenue.Revenue for the quarter ended June 30, 2008 was comprised of amounts earned by a variety of films. Kung Fu Panda, the single greatest source of revenue for the second quarter of 2008, contributed $46.4 million earned in the domestic theatrical market and through ancillary revenue sources. In addition to merchandising and licensing revenue, ancillary revenue for Kung Fu Panda included non-recurring revenue associated with the completion of a strategic relationship, which accounted for slightly less than half of the films total revenue for the second quarter of 2008. Bee Movie, our 2007 fourth quarter release, generated $25.5 million of revenue primarily attributable to the international home entertainment market and Shrek the Third earned an additional $29.9 million of revenue earned primarily in the domestic pay television market. Our other properties, including our library of titles, contributed revenues totaling $39.7 million earned across a variety of worldwide markets.
Selling, General and Administrative Expenses. Total selling, general and administrative expenses decreased $2.2 million to $24.8 million (including $8.4 million of stock compensation expense) for the quarter ended June 30, 2009 from $27.0 million (including $8.3 million of stock compensation expense) for the quarter ended June 30, 2008. This 8.1% aggregate decrease is primarily related to approximately $1.3 million of lower company-wide incentive compensation and approximately $1.0 million of lower corporate travel expenses.
Net Income. Net income for the three months ended June 30, 2009 was $25.6 million, or $0.30 per diluted share, as compared to a net income of $27.5 million, or $0.30 net income per diluted share, in the corresponding period in 2008. Net income for the second quarter of 2009 benefited by approximately $9.0 million, or $0.10 per diluted share, from the recognition of deferred revenue related to several previously released titles in conjunction with the second quarter 2009 amendment to our video game distribution agreement.
Madagascar: Escape 2 Africa, our 2008 fourth quarter release, contributed the largest amount of revenue, $173.7 million, or 44% of the total revenues, during the six months ended June 30, 2009, earned in the worldwide theatrical and home entertainment markets. Kung Fu Panda reported an additional $66.8 million earned in the worldwide home entertainment, television and ancillary markets. Additionally, Monsters vs. Aliens, our most recent theatrical release, contributed $20.8 million of ancillary revenue, including merchandising and licensing revenue. Our distributor has reported no revenue for Monsters vs. Aliens since its initial release on March 27, 2009 because our distributor is entitled to recover its marketing and distribution costs before it is required to report any revenue generated from the exploitation of this film. Lastly, our library of titles contributed $114.3 million earned across several markets and Shrek the Musical, which debuted on Broadway in the fourth quarter of 2008, contributed $19.9 million of revenues.
Selling, General and Administrative Expenses. Total selling, general and administrative expenses decreased $8.2 million to $45.5 million (including $13.7 million of stock compensation expense) for the six months ended June 30, 2009 from $53.7 million (including $17.9 million of stock compensation expense) for the six months ended June 30, 2008. This 15.3% aggregate decrease spans across several selling, general and administrative categories, including a $4.2 million decrease in stock compensation (primarily due to the absence of expense associated with certain senior executive performance awards during the first quarter of 2009), approximately $1.6 million of lower company-wide incentive compensation and approximately $2.0 million of lower corporate travel expenses.
Read the The complete ReportDWA is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., David Dreman of Dreman Value Management, David Dreman of Dreman Value Management.
