DreamWorks Animation Reports Healthy Quarter
UPDATED: A strong showing from "The Croods" assisted in the $134.6 million in revenue and $5.6 million in net income.
DreamWorks Animation reported $134.6 million in revenue and $5.6 million in net income in the most recent quarter, with overperformance in home video and a strong showing from The Croods encouraging investors to bid the stock 8 percent higher in afterhours trading.
In the previous period, DWA took an $87 million charge for the underperformance of Rise of the Guardians. Since then, the stock has risen 16 percent.
The company said during its previous earnings call that 400 layoffs were coming as DWA attempts to "right-size the whole enterprise," as CEO Jeffrey Katzenberg put it. On Tuesday, Katzenberg told The Hollywood Reporter that some of the 400 worker are already gone while others have been notified that they'd be laid off soon. He also said that no further layoffs are expected.
The company has delayed the release of Mr. Peabody & Sherman, and Me & My Shadow has been yanked from the schedule indefinitely. Peabody is "moving along great," Katzenberg said Tuesday and there is no update on Shadow.
During a conference call Tuesday, DWA executives -- prompted by a Wall Street analyst -- discussed Disney's planned July 3 Johnny Depp release The Lone Ranger since it is a property licensed by Classic Media, a company DWA recently purchased.
DWA got a "small amount" up front for the film and gets profit participation on the backend as well as merchandise revenue. "So we're rooting for them," Katzenberg said.
The stock was up a few pennies during the regular session Tuesday to $19.28 but surged $1.62 in the after-hours session.
"This year is off to an outstanding start," Katzenberg said in a release. "The Croods has reached a blockbuster level of nearly $480 million at the worldwide box office and is well on its way to becoming the No. 1 movie released during the first four months of 2013."
The Croods was distributed by DWA's new distribution partner, 20th Century Fox.
Home entertainment releases Madagascar 3: Europe's Most Wanted contributed $22.8 million during the quarter, and Rise of the Guardians brought in $9.6 million. Puss in Boots contributed $7.5 million.
"The strength of our worldwide box office results from The Croods and overperformance in home video from both of our 2012 titles demonstrate success in DWA's core business so far this year," said COO Ann Daly.