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DreamWorks Posts Loss On "Guardians"

DreamWorks Posts Loss On
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DreamWorks Animation SKG, Inc. (DWA: Quote) said Tuesday after the markets closed that it swung to a fourth quarter loss, hurt mainly by the weak box-office performance of "Rise of the Guardians" and the decision to return "Me & My Shadow" back to development.

"While Rise of the Guardians did not achieve the level of box office success that we have come to expect from a DreamWorks Animation film, we have made several changes to our future slate that we believe will position us well for the next two years," said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation.

The company said it expects its full year 2013 results to be driven mainly by the performance of "The Croods", which is scheduled to be released on March 22, and "Turbo", which is scheduled to be released on July 19.

DreamWorks shares are currently losing 0.60% in after hours trading after closing the day's regular trading session at $16.61, down 21 cents or 1.25%. The shares trade in a 52-week range of $15.90 to $22.98.

The Glendale, California-based company reported a net loss for the fourth quarter of $82.7 million or $0.98 per share, compared to net income of $24.3 million or $0.29 per share for the year-ago quarter.

The latest quarter results include a write-down of film costs for "Rise of the Guardians" in the amount of $87 million , charges totaling $54 million related to the company's decision to return Me & My Shadow back to development, a write-off of a number of other development projects in the amount of $20 million and a charge of $4.6 million related to restructuring activities.

On average, 11 analysts polled by Thomson Reuters expected the company to report a loss of $0.06 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter rose 21% to $264.66 million from $218.97 million in the same quarter last year. Ten analysts had a consensus revenue estimate of $216.04 million for the fourth quarter.

"Rise of the Guardians", which was released on November 21 and has grossed $302.3 million at the worldwide box office, contributed $6.1 million to the fourth quarter revenue.

"Madagascar 3: Europe's Most Wanted" contributed revenue of $95.2 million to the quarter. The film, which was released in June 2012, has grossed $746.6 million at the worldwide box office,, mainly from home entertainment and international box office.

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by RTT Staff Writer

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