GLENDALE, Calif., Feb. 23, 2016 /PRNewswire/ -- DreamWorks
Animation SKG, Inc. (Nasdaq: DWA) today reported revenues for the
quarter ended December 31, 2015 of $319.3 million, representing an increase of 36.3%
from the same period in 2014. In addition, DWA reported
adjusted(a) operating income of $56.5 million and adjusted(a) net
income attributable to DWA of $48.1
million or $0.55 per diluted
share for the quarter ended December 31, 2015. Adjusted
financial results exclude a $6.1
million pre-tax charge associated with the Company's
Restructuring Plan announced on January 22,
2015.
Including the impact of the previously announced Restructuring
Plan, DWA reported operating income of $50.4
million and reported net income attributable to DWA of
$42.1 million, or $0.48 per diluted share for the quarter ended
December 31, 2015.
"Although 2015 was a transitional year for our company, I am
exceptionally proud of what the DreamWorks team has accomplished
this year and I'm pleased to report that we have met or exceeded
our stated full year 2015 goals across all key financial metrics,"
said Jeffrey Katzenberg, Chief
Executive Officer of DreamWorks Animation. "DWA delivered its best
top line result in 11 years and highest revenue growth in eight
years, accelerating 34% from 2014. In addition, our positive
adjusted operating income and operating cash flow demonstrate our
commitment to profitably grow our businesses while keeping a sharp
eye on cost management and productivity improvements."
Katzenberg continued, "While there is still much work to be done
before we cross the goal line on the objectives we shared a year
ago, we enter 2016 with considerable momentum. Our continued focus
on executing on our strategic goals will not only ensure
sustainable and profitable growth over the long term, but create
shareholder value for years to come."
Fourth Quarter Review:
DWA's fourth quarter revenues of $319.3
million increased 36.3% versus the prior-year period driven
by performance across all core business segments.
Revenues for the quarter ended December 31, 2015 from the
Feature Film segment increased to $146.4
million, up from $131.3
million in the prior-year period. Segment gross profit
improved to $63.5 million compared to
a loss of $(152.2) million in the
same period of last year. Gross profit in the prior-year period
included the impact of film and other inventory write-offs
of $153.6 million stemming from the Company's 2015
Restructuring Plan, as well as total impairment charges
of $39.7 million related to The Penguins
of Madagascar and Mr. Peabody and
Sherman.
Home contributed feature film segment revenue of
$55.3 million in the quarter ended
December 31, 2015, primarily from worldwide pay television and
home entertainment. Through the end of the fourth quarter, the film
reached an estimated 6.0 million home entertainment units sold
worldwide, net of actual and estimated future returns.
The Penguins of Madagascar contributed feature film
segment revenue of $13.8 million in
the quarter ended December 31, 2015, primarily from
international pay television. Through the end of the fourth
quarter, the film reached an estimated 3.9 million home
entertainment units sold worldwide, net of actual and estimated
future returns.
How to Train Your Dragon 2 contributed feature film
segment revenue of $4.0 million in
the quarter ended December 31, 2015, primarily from worldwide
home entertainment. The film reached an estimated 9.4 million home
entertainment units sold worldwide through the end of the fourth
quarter, net of actual and estimated future returns.
Mr. Peabody and Sherman contributed feature film segment
revenue of $2.1 million in the
quarter ended December 31, 2015, primarily from worldwide home
entertainment. The film reached an estimated 4.5 million home
entertainment units sold worldwide through the end of the fourth
quarter, net of actual and estimated future returns.
Library titles contributed feature film segment revenue of
$71.2 million in the quarter ended
December 31, 2015, driven by an extension of existing
licensing arrangements for the SVOD distribution of certain titles
as well as worldwide television and home entertainment revenues for
a number of titles including The Croods and
Turbo.
Revenues for the quarter ended December 31, 2015 from the
Television Series and Specials segment increased to $104.9 million, compared to $50.7 million during the prior-year period. The
increase in revenues was attributable to a significantly higher
number of episodes delivered under our episodic content licensing
deals and an extension of existing licensing arrangements related
to the SVOD distribution of our seasonal television specials.
Segment gross profit increased to $46.6
million in the current quarter, from a loss of $(2.6) million in the same period of the prior
year. The increase was primarily driven by higher revenues,
favorable amortization rates associated with our episodic series
and holiday specials and lower marketing spend compared with the
prior-year period. Gross profit in the prior-year period was
impacted by write-downs of capitalized film costs
totaling $13.3 million, primarily due to revisions in
estimated future revenues for certain television specials.
Revenues from the Consumer Products segment increased to
$31.7 million in the quarter ended
December 31, 2015, compared to $22.1
million in the same period last year. The increase was
primarily driven by revenues earned from retail development and
location based entertainment initiatives as well as merchandise
licensing agreements related to our episodic television
series. Segment gross profit decreased to $5.7 million from $6.1
million in the prior-year period as higher revenues were
offset by a one time expense of $7.0
million related to our retail development initiatives. Gross
profit for the quarter ended December 31, 2014 was impacted by
impairment charges totaling $2.4
million, primarily related to The Penguins of
Madagascar.
Revenues for the quarter ended December 31, 2015 from the
Company's New Media segment were $32.9 million compared
to $24.9 million during the three months ended
December 31, 2014. This increase was primarily attributable to
revenue generated from licensing and distribution of content and,
to a lesser extent, advertising, brand sponsorship and talent
management arrangements. In the prior-year period, the Company
reported certain advertising and talent management revenues in this
segment on a "gross" basis rather than on a "net"
basis. For comparative purposes, if the New Media
segment's revenues had been reported on a "net" basis during the
quarter ended December 31, 2014, revenues for the quarter
ended December 31, 2015 would reflect an increase of 41%
compared with the prior-year period. Segment gross profit, which is
not affected by this item, increased to $20.6 million
from $13.2 million in the prior-year period, primarily due to
higher revenue contributions from the licensing and distribution of
content, as well as reduced amortization of intangible assets.
Revenues from the All Other segment for the quarter ended
December 31, 2015 were $3.4
million compared to $5.2
million in the prior-year period and gross profit was
$2.7 million compared to a loss of
$(4.0) million for the quarter ended
December 31, 2014. Gross profit for the quarter ended
December 31, 2014 included the write-off of capitalized costs
in the amount of $5.4 million.
For the quarter ended December 31, 2015, DWA posted
adjusted(a) operating income of $56.5 million. The increase in revenues and
segment gross profit were partially offset by an increase in
adjusted(a) general and administrative expenses. The
increase in adjusted(a) general and administrative costs
in the quarter ended December 31, 2015 was primarily driven by
a $25.0 million increase in incentive
and stock-based compensation costs, as well as an increase of
$1.5 million related to the growth
and expansion of the AwesomenessTV business. Operating income in
the prior-year period included a $6.8
million benefit associated with a reduction in the fair
value of the contingent consideration liability related to our
acquisition of AwesomenessTV. Reported operating income for the
quarter ended December 31, 2015, inclusive of
restructuring-related charges, was $50.4
million.
Adjusted(a) net income attributable to DWA for the
quarter ended December 31, 2015 was $48.1 million, or adjusted(a) income
of $0.55 per diluted share. During
the fourth quarter, the Company recorded an income tax benefit of
$2.4 million, or an effective rate of
(6.1)%. Combined with a decrease in income tax benefit
payable to former stockholder of $3.2
million, results in a combined effective tax rate of (14.3)%
for the quarter. Reported net income attributable to DWA for the
quarter ended December 31, 2015 was $42.1 million, or $0.48 per diluted share.
Full Year Review:
DWA's revenues for the year ended December 31, 2015 increased
33.8% to $915.9 million compared to
$684.6 million in the prior-year
period. The increase was driven by year-over-year growth across all
core business segments.
Revenues for the year ended December 31, 2015 from the
Feature Film segment increased to $520.1
million, primarily due to higher revenue from prior-year
theatrical releases and contributions from the Library. Included in
the results is a one-time benefit of $7.8 million related
to recoveries from previously established home entertainment
reserves related to sales through a former distributor. Segment
gross profit increased to $190.5
million for the year ended December 31, 2015 compared
to a loss of $(89.4) million in the
prior-year period. In 2014, Feature Film segment gross profit was
impacted by $259.7 million in
charges, including restructuring-related charges
totaling $163.0 million, as well as impairment charges
totaling $96.7 million, primarily related to the performance
of The Penguins of Madagascar and Mr.
Peabody and Sherman.
Revenues from the Television Series and Specials segment for the
year ended December 31, 2015 increased 121.5% to $228.1 million, due to a significantly higher
number of episodes delivered under our episodic content licensing
arrangements. Segment gross profit also increased to $84.5 million in 2015, up from $6.7 million in the prior year. The increase was
primarily driven by higher revenue and favorable amortization rates
associated with our episodic series and holiday specials, partially
offset by up-front marketing costs associated with the launch of
our new television series. Gross profit in the prior-year period
was negatively impacted by write-downs of capitalized film costs
totaling $13.3 million, primarily due to revisions in
estimated future revenues for certain television specials, as well
as higher than expected returns of seasonal and newly-released home
entertainment product and increased selling costs related to our
Classic Media properties.
Revenues from the Consumer Products segment in the year ending
December 31, 2015 increased to $86.5
million, from $64.8 million in
the prior year. The increase was primarily driven by revenues
earned from new and extended location based entertainment license
arrangements and retail development initiatives in 2015, as well as
merchandise licensing arrangements. For the year ended
December 31, 2015, segment gross profit increased to
$29.9 million, from $23.7 million in the prior year due to higher
revenues, partially offset by a one time expense of $7.0 million related to our retail development
initiatives. Gross profit for the year ended December 31, 2014
was impacted by impairment charges totaling $2.4 million, which were primarily related to
The Penguins of Madagascar.
Beginning in the quarter ending March 31,
2016, DWA plans to change the method by which intellectual
property costs are charged to the Consumer Products segment to
provide better comparability to peers, be more in line with the
method used in the Television Series and Specials segment and
minimize the volatility of the Consumer Products segment
profitability. As a result, the Consumer Products Segment will no
longer bear amortization of capitalized production costs for the
use of Film and TV intellectual property. Instead, the Consumer
Products segment will be charged a royalty fee which will
compensate the originating segment for the use of intellectual
property. There will be no change to DWA's Consolidated financials,
as DWA's Ultimate revenues and the amortization of capitalized
production costs remain unchanged. This methodology will impact
segment reporting only.
Revenues for the year ended December 31, 2015 from the
Company's New Media segment increased to $72.8 million, from $49.0
million in the prior year. This increase was primarily
attributable to revenue generated from licensing and distribution
of content, and to a lesser extent, advertising, brand sponsorship
and talent management arrangements. In the prior year, the Company
reported certain advertising and talent management revenues in this
segment on a "gross" basis rather than on a "net"
basis. For comparative purposes, if the New Media
segment's revenues had been reported on a "net" basis during the
year ended December 31, 2014, revenues for the year ended
December 31, 2015 would reflect an increase of approximately
84% compared with the prior year. Segment gross profit for year
ended December 31, 2015, which is not affected by this item,
was $41.1 million, compared to
$17.9 million during the year ended
December 31, 2014, primarily due to higher revenue
contributions from the licensing and distribution of content, as
well as reduced amortization of intangible assets.
Revenues from the All Other segment for the year ended
December 31, 2015 were $8.4
million compared to $14.3
million in the prior year. Gross profit was $5.9 million compared to a loss of $(5.0) million for the year ended
December 31, 2014. Gross profit for the year ended
December 31, 2014 included the write-off of capitalized costs
in the amount of $5.4 million.
For the year ended December 31, 2015, DWA posted
adjusted(a) operating income of $78.8 million. The increase in revenues and
segment gross profit was partially offset by an increase in
adjusted(a) general and administrative expenses. The
increase in adjusted(a) general and administrative costs
in the current year was driven by a $37.1
million increase in incentive and stock-based compensation
costs and a $16.9 million increase in
costs incurred to support the growth and expansion of the
AwesomenessTV business. Operating income in the prior year included
a $16.5 million benefit associated
with a reduction in the fair value of the contingent consideration
liability related to our acquisition of AwesomenessTV. The
reported operating income for the year ended December 31,
2015, inclusive of restructuring-related charges, was $16.4 million.
Adjusted(a) net income attributable to DWA for the
year ended December 31, 2015 was $7.6
million, or $0.09 per share.
Adjusted net income reflects higher interest expense related to a
lease financing obligation associated with the Company's
headquarters as well as a decrease in the amount of interest that
could be capitalized during 2015. Adjusted net income for the year
ended December 31, 2015 also includes non-cash charges
totaling $11.9 million in other
expense, net that are attributable to certain investments that were
deemed to not be recoverable. Additionally, during the year ended
December 31, 2015, DWA recorded income tax expense of
$21.9 million, which includes expense
related to the Company's tax sharing agreement with former
stockholder. As a result, the Company had a combined effective tax
rate of (68.4)% for the year ended December 31, 2015. Reported
net loss attributable to DWA for the year ended December 31,
2015 was $(54.8) million, or
$(0.64) per share.
For the year ended December 31, 2015,
adjusted(a) operating cash flow was $126.0 million. The main sources of cash during
the year ended December 31, 2015 were primarily the
theatrical, home entertainment and television revenues from How
to Train Your Dragon 2, Home, The Croods and
from licensing of our episodic content. Cash used in operating
activities for the year ended December 31,
2015 included $14.3 million in
incentive compensation, which decreased $21.6 million when compared to the amount paid
during the year ended December 31,
2014 as these cash payments primarily fluctuate based on our
financial results. During the year ended December 31, 2015, we also made payments to an
affiliate of a former stockholder in the amount of $7.4 million. Lastly, cash from operating
activities was also partially offset by production spending for our
films and television series, as well as participation and residual
payments. Including the impact of the previously announced
Restructuring Plan, DWA reported operating cash flow of
$52.5 million for the year ended
December 31, 2015, compared to net cash used in operating
activities of $(162.4) million in the
prior year.
As of December 31, 2015, our
payable to former stockholder was $20.8
million. We expect that $16.4
million will become payable during the next 12 months (which
is subject to the finalization of our 2015 tax returns and may be
reduced by refunds of overpayments related to prior years).
During the year ended December 31, 2015, DWA amended its
$400.0 million revolving credit
facility, increasing the size of the committed facility to
$450.0 million and extending the term
through February 2020. DWA also
entered into an agreement to sell its campus located in
Glendale, California for
$185.0 million and concurrently
leased it back from the purchaser. Proceeds from the sale were used
to repay outstanding borrowings on the Company's revolving credit
facility and for general corporate purposes.
On July 21, 2015, the original
purchaser of the campus resold it for a total sale price of
$215.0 million. Pursuant to a sharing
agreement between the Company and such original purchaser, the
Company was entitled to receive 50% of any increase in value from
the original sale price of $185.0
million, net of expenses. Accordingly, the Company received
approximately $14.2 million from the
original purchase following such resale.
As of December 31, 2015, DWA had $390.0 million of availability on its revolving
credit facility and $110.8 million of
cash and cash equivalents on hand, approximately 58% of which is
held by two of the Company's consolidated joint ventures.
Items related to the earnings press release for the fourth
quarter of 2015 will be discussed in more detail on the Company's
earnings conference call later today.
Conference Call Information
DreamWorks Animation will host a conference call and webcast to
discuss the results on Tuesday, February 23,
2016 at 1:30pm (PT) /
4:30pm (ET). Investors can access the
call by dialing (800) 230-1059 in the U.S. and (612) 332-0107
internationally and identifying "DreamWorks Animation Earnings
Call" to the operator. The call will also be available via live
webcast at ir.dreamworksanimation.com.
A replay of the conference call will be available shortly after
the call ends on Tuesday, February 23, 2016. To access the
replay, dial (800) 475-6701 in the U.S. and (320) 365-3844
internationally and enter 383993 as the conference ID number. Both
the earnings release and archived webcast will be available on the
Company's website at ir.dreamworksanimation.com.
About DreamWorks Animation
DreamWorks Animation creates high-quality entertainment, including
CG-animated feature films, television specials and series and live
entertainment properties, meant for audiences around the world. The
Company has world-class creative talent, a strong and experienced
management team and advanced filmmaking technology and techniques.
All of DreamWorks Animation's feature films are produced in 3D. The
Company has theatrically released a total of 32 animated feature
films, including the franchise properties of Shrek,
Madagascar, Kung Fu Panda, How to Train Your
Dragon, Puss In Boots, and The Croods.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. The Company's plans, prospects, strategies, proposals and our
beliefs and expectations concerning performance of our current and
future releases and anticipated talent, directors and storyline for
our upcoming films and other projects, constitute forward-looking
statements. These statements are based on current expectations,
estimates, forecasts and projections about the industry in which we
operate and management's beliefs and assumptions. These statements
are not guarantees of future performance and involve risks,
uncertainties and assumptions which are difficult to predict.
Actual results may vary materially from those expressed or implied
by the statements herein due to changes in economic, business,
competitive, technological and/or regulatory factors, and other
risks and uncertainties affecting the operation of the business of
DreamWorks Animation SKG, Inc. These risks and uncertainties
include: audience acceptance of our films, our dependence on the
success of a limited number of releases each year, the increasing
cost of producing and marketing feature films, piracy of motion
pictures, the effect of rapid technological change or alternative
forms of entertainment and our need to protect our proprietary
technology and enhance or develop new technology. In addition, due
to the uncertainties and risks involved in the development and
production of animated feature projects, the release dates for the
projects described in this document may be delayed. For a further
list and description of such risks and uncertainties, see the
reports filed by us with the Securities and Exchange Commission,
including our most recent annual report on Form 10-K and our most
recent quarterly reports on Form 10-Q. DreamWorks Animation is
under no obligation to, and expressly disclaims any obligation to,
update or alter its forward-looking statements, whether as a result
of new information, future events, changes in assumptions or
otherwise.
(a)Reconciliations of non-GAAP measures to
reported results are included at the end of this earnings
release.
|
DREAMWORKS
ANIMATION SKG, INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(Unaudited)
|
|
|
December
31,
|
|
2015
|
|
2014
|
|
(in thousands,
except par value and
share amounts)
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
110,814
|
|
|
$
|
34,227
|
|
|
Restricted
cash
|
40
|
|
|
25,244
|
|
|
Trade accounts
receivable, net of allowance for doubtful accounts
|
271,466
|
|
|
160,379
|
|
|
Receivables from
distributors, net of allowance for doubtful accounts
|
230,569
|
|
|
271,256
|
|
|
Film and other
inventory costs, net
|
820,454
|
|
|
827,890
|
|
|
Prepaid
expenses
|
29,133
|
|
|
17,555
|
|
|
Other
assets
|
73,924
|
|
|
40,408
|
|
|
Investments in
unconsolidated entities
|
32,814
|
|
|
35,330
|
|
|
Property, plant and
equipment, net of accumulated depreciation and
amortization
|
37,765
|
|
|
180,607
|
|
|
Intangible assets,
net of accumulated amortization
|
172,328
|
|
|
186,141
|
|
|
Goodwill
|
190,668
|
|
|
190,668
|
|
|
Total
assets
|
$
|
1,969,975
|
|
|
$
|
1,969,705
|
|
|
Liabilities and
Equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
10,847
|
|
|
$
|
9,031
|
|
|
Accrued
liabilities
|
199,665
|
|
|
190,217
|
|
|
Payable to former
stockholder
|
20,776
|
|
|
10,455
|
|
|
Deferred revenue and
other advances
|
74,659
|
|
|
33,895
|
|
|
Deferred gain on
sale-leaseback transaction
|
87,410
|
|
|
—
|
|
|
Revolving credit
facility
|
60,000
|
|
|
215,000
|
|
|
Senior unsecured
notes
|
300,000
|
|
|
300,000
|
|
|
Deferred taxes,
net
|
17,778
|
|
|
16,709
|
|
|
Total
liabilities
|
771,135
|
|
|
775,307
|
|
|
Commitments and
contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
DreamWorks Animation
SKG, Inc. Stockholders' Equity:
|
|
|
|
|
Class A common
stock, par value $0.01 per share, 350,000,000 shares authorized,
106,907,772 and 105,718,014 shares issued, as of December 31,
2015 and 2014, respectively
|
1,069
|
|
|
1,057
|
|
|
Class B common stock,
par value $0.01 per share, 150,000,000 shares authorized, 7,838,731
shares issued and outstanding, as of December 31, 2015 and
2014
|
78
|
|
|
78
|
|
|
Additional paid-in
capital
|
1,227,220
|
|
|
1,172,806
|
|
|
Accumulated other
comprehensive loss
|
(3,642)
|
|
|
(1,827)
|
|
|
Retained
earnings
|
707,978
|
|
|
762,784
|
|
|
Less: Class A
Treasury common stock, at cost, 28,401,898 and 27,884,524 shares,
as of December 31, 2015 and 2014, respectively
|
(789,186)
|
|
|
(778,541)
|
|
|
Total DreamWorks
Animation SKG, Inc. stockholders' equity
|
1,143,517
|
|
|
1,156,357
|
|
|
Non-controlling
interests
|
55,323
|
|
|
38,041
|
|
|
Total
equity
|
1,198,840
|
|
|
1,194,398
|
|
|
Total liabilities and
equity
|
$
|
1,969,975
|
|
|
$
|
1,969,705
|
|
|
DREAMWORKS
ANIMATION SKG, INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in thousands,
except per share amounts)
|
|
Revenues
|
$
|
319,335
|
|
|
$
|
234,244
|
|
|
$
|
915,863
|
|
|
$
|
684,623
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(income):
|
|
|
|
|
|
|
|
|
Costs of
revenues
|
168,816
|
|
|
345,379
|
|
|
526,286
|
|
|
681,113
|
|
|
Selling and
marketing
|
12,222
|
|
|
32,918
|
|
|
43,640
|
|
|
61,252
|
|
|
General and
administrative
|
89,740
|
|
|
108,620
|
|
|
332,736
|
|
|
262,013
|
|
|
Product
development
|
1,195
|
|
|
3,632
|
|
|
4,655
|
|
|
5,217
|
|
|
Change in fair value
of contingent consideration
|
—
|
|
|
(6,825)
|
|
|
—
|
|
|
(16,500)
|
|
|
Other operating
income
|
(3,037)
|
|
|
(1,767)
|
|
|
(7,893)
|
|
|
(8,429)
|
|
|
Operating income
(loss)
|
50,399
|
|
|
(247,713)
|
|
|
16,439
|
|
|
(300,043)
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income (expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(5,631)
|
|
|
(4,769)
|
|
|
(23,334)
|
|
|
(11,866)
|
|
|
Other income
(expense), net
|
494
|
|
|
(17,730)
|
|
|
(9,650)
|
|
|
(14,361)
|
|
|
Decrease (increase)
in income tax benefit payable to former stockholder
|
3,228
|
|
|
253,623
|
|
|
(17,673)
|
|
|
253,861
|
|
|
Income (loss)
before loss from equity method investees and income
taxes
|
48,490
|
|
|
(16,589)
|
|
|
(34,218)
|
|
|
(72,409)
|
|
|
|
|
|
|
|
|
|
|
Loss from equity
method investees
|
5,868
|
|
|
5,869
|
|
|
15,491
|
|
|
13,808
|
|
|
Income (loss)
before income taxes
|
42,622
|
|
|
(22,458)
|
|
|
(49,709)
|
|
|
(86,217)
|
|
|
(Benefit) provision
for income taxes
|
(2,387)
|
|
|
239,383
|
|
|
4,255
|
|
|
222,104
|
|
|
Net income
(loss)
|
45,009
|
|
|
(261,841)
|
|
|
(53,964)
|
|
|
(308,321)
|
|
|
Less: Net income
attributable to non-controlling interests
|
2,936
|
|
|
1,378
|
|
|
842
|
|
|
1,293
|
|
|
Net income (loss)
attributable to DreamWorks Animation SKG, Inc.
|
$
|
42,073
|
|
|
$
|
(263,219)
|
|
|
$
|
(54,806)
|
|
|
$
|
(309,614)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share of common stock attributable to DreamWorks Animation SKG,
Inc.
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
$
|
0.49
|
|
|
$
|
(3.08)
|
|
|
$
|
(0.64)
|
|
|
$
|
(3.65)
|
|
|
Diluted net income
(loss) per share
|
$
|
0.48
|
|
|
$
|
(3.08)
|
|
|
$
|
(0.64)
|
|
|
$
|
(3.65)
|
|
|
Shares used in
computing net income (loss) per share
|
|
|
|
|
|
|
|
|
Basic
|
86,145
|
|
|
85,392
|
|
|
85,841
|
|
|
84,771
|
|
|
Diluted
|
87,375
|
|
|
85,392
|
|
|
85,841
|
|
|
84,771
|
|
|
DREAMWORKS
ANIMATION SKG, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Year Ended
December 31,
|
|
2015
|
|
2014
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
Net loss
|
$
|
(53,964)
|
|
|
$
|
(308,321)
|
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Amortization and
write-off of film and other inventory costs
|
441,207
|
|
|
625,567
|
|
|
Other impairments and
write-offs
|
11,933
|
|
|
19,591
|
|
|
Amortization of
intangible and other assets
|
23,596
|
|
|
14,544
|
|
|
Depreciation and
amortization
|
30,196
|
|
|
6,491
|
|
|
Amortization of
deferred financing costs
|
2,302
|
|
|
1,173
|
|
|
Amortization of
deferred gain on sale-leaseback transaction
|
(1,993)
|
|
|
—
|
|
|
Stock-based
compensation expense
|
21,156
|
|
|
19,302
|
|
|
Change in fair value
of contingent consideration
|
—
|
|
|
(16,500)
|
|
|
Revenue earned
against deferred revenue and other advances
|
(109,072)
|
|
|
(65,193)
|
|
|
Income related to
investment contributions
|
(6,284)
|
|
|
(8,429)
|
|
|
Loss from equity
method investees
|
15,491
|
|
|
13,808
|
|
|
Deferred taxes,
net
|
1,062
|
|
|
222,066
|
|
|
Changes in operating
assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
Restricted
cash
|
25,201
|
|
|
(25,000)
|
|
|
Trade accounts
receivable
|
(107,175)
|
|
|
(20,866)
|
|
|
Receivables from
distributors
|
39,569
|
|
|
9,456
|
|
|
Film and other
inventory costs
|
(411,444)
|
|
|
(484,285)
|
|
|
Prepaid expenses and
other assets
|
(60,613)
|
|
|
(32,827)
|
|
|
Accounts payable and
accrued liabilities
|
14,804
|
|
|
22,627
|
|
|
Payable to former
stockholder
|
10,321
|
|
|
(251,854)
|
|
|
Income taxes
payable/receivable, net
|
(1,657)
|
|
|
(836)
|
|
|
Deferred revenue and
other advances
|
167,873
|
|
|
97,041
|
|
|
Net cash provided by
(used in) operating activities
|
52,509
|
|
|
(162,445)
|
|
|
Investing
activities
|
|
|
|
|
Investments in
unconsolidated entities
|
(18,136)
|
|
|
(20,645)
|
|
|
Purchases of
property, plant and equipment
|
(22,729)
|
|
|
(34,358)
|
|
|
Acquisitions of
character and distribution rights
|
—
|
|
|
(51,000)
|
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(12,605)
|
|
|
Net cash used in
investing activities
|
(40,865)
|
|
|
(118,608)
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from stock
option exercises
|
—
|
|
|
12,167
|
|
|
Deferred financing
costs
|
(6,286)
|
|
|
—
|
|
|
Purchase of treasury
stock
|
(10,645)
|
|
|
(10,318)
|
|
|
Borrowings from
revolving credit facility
|
425,405
|
|
|
250,000
|
|
|
Repayments of
borrowings from revolving credit facility
|
(580,405)
|
|
|
(35,000)
|
|
|
Proceeds from lease
financing obligation
|
199,203
|
|
|
—
|
|
|
Repayments of lease
financing obligation
|
(1,378)
|
|
|
—
|
|
|
Contingent
consideration payment
|
(335)
|
|
|
(79,665)
|
|
|
Proceeds from sale of
non-controlling equity interest in ATV
|
—
|
|
|
81,250
|
|
|
Capital contributions
from non-controlling interest holders
|
40,000
|
|
|
—
|
|
|
Distributions to
non-controlling interest holder
|
(998)
|
|
|
(227)
|
|
|
Net cash provided by
financing activities
|
64,561
|
|
|
218,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
382
|
|
|
1,606
|
|
|
Increase (decrease)
in cash and cash equivalents
|
76,587
|
|
|
(61,240)
|
|
|
Cash and cash
equivalents at beginning of year
|
34,227
|
|
|
95,467
|
|
|
Cash and cash
equivalents at end of year
|
$
|
110,814
|
|
|
$
|
34,227
|
|
|
|
|
|
|
Non-cash investing
activities:
|
|
|
|
|
Intellectual property
and technology licenses granted in exchange for equity
interest
|
$
|
6,085
|
|
|
$
|
7,730
|
|
|
Services provided in
exchange for equity interest
|
199
|
|
|
776
|
|
|
Total non-cash
investing activities
|
$
|
6,284
|
|
|
$
|
8,506
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Cash paid during the
year for income taxes, net
|
$
|
4,994
|
|
|
$
|
1,209
|
|
|
Cash paid during the
year for interest, net of amounts capitalized
|
$
|
23,719
|
|
|
$
|
14,325
|
|
|
DREAMWORKS
ANIMATION SKG, INC.
SEGMENT REVENUES
AND GROSS PROFIT RECONCILIATION
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(in
thousands)
|
|
Revenues
|
|
|
|
|
|
|
|
|
Feature
Films
|
$
|
146,397
|
|
|
$
|
131,343
|
|
|
$
|
520,102
|
|
|
$
|
453,475
|
|
|
Television Series and
Specials
|
104,889
|
|
|
50,721
|
|
|
228,132
|
|
|
102,962
|
|
|
Consumer
Products
|
31,740
|
|
|
22,094
|
|
|
86,501
|
|
|
64,817
|
|
|
New Media
|
32,940
|
|
|
24,914
|
|
|
72,774
|
|
|
49,028
|
|
|
All Other
|
3,369
|
|
|
5,172
|
|
|
8,354
|
|
|
14,341
|
|
|
Total consolidated
revenues
|
$
|
319,335
|
|
|
$
|
234,244
|
|
|
$
|
915,863
|
|
|
$
|
684,623
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross profit
(loss)(1)
|
|
|
|
|
|
|
|
|
Feature
Films
|
$
|
63,501
|
|
|
$
|
(152,171)
|
|
|
$
|
190,517
|
|
|
$
|
(89,401)
|
|
|
Television Series and
Specials
|
46,611
|
|
|
(2,581)
|
|
|
84,523
|
|
|
6,667
|
|
|
Consumer
Products
|
5,745
|
|
|
6,101
|
|
|
29,863
|
|
|
23,697
|
|
|
New Media
|
20,637
|
|
|
13,165
|
|
|
41,102
|
|
|
17,905
|
|
|
All Other
|
2,676
|
|
|
(3,964)
|
|
|
5,947
|
|
|
(4,980)
|
|
|
Total segment gross
profit (loss)
|
$
|
139,170
|
|
|
$
|
(139,450)
|
|
|
$
|
351,952
|
|
|
$
|
(46,112)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
consolidated income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses(2)
|
873
|
|
|
4,603
|
|
|
6,015
|
|
|
11,630
|
|
|
General and
administrative expenses
|
89,740
|
|
|
108,620
|
|
|
332,736
|
|
|
262,013
|
|
|
Product development
expenses
|
1,195
|
|
|
3,632
|
|
|
4,655
|
|
|
5,217
|
|
|
Change in fair value
of contingent consideration
|
—
|
|
|
(6,825)
|
|
|
—
|
|
|
(16,500)
|
|
|
Other operating
income
|
(3,037)
|
|
|
(1,767)
|
|
|
(7,893)
|
|
|
(8,429)
|
|
|
Non-operating
expenses (income), net
|
1,909
|
|
|
(231,124)
|
|
|
50,657
|
|
|
(227,634)
|
|
|
Loss from equity
method investees
|
5,868
|
|
|
5,869
|
|
|
15,491
|
|
|
13,808
|
|
|
Total consolidated
income (loss) before income taxes
|
$
|
42,622
|
|
|
$
|
(22,458)
|
|
|
$
|
(49,709)
|
|
|
$
|
(86,217)
|
|
|
|
|
(1)
|
The Company defines
segment gross profit as segment revenues less segment costs of
revenues (which is comprised of costs of revenues and certain costs
classified as a component of "selling and marketing" in its
statements of operations).
|
|
(2)
|
Represents certain
selling and marketing expenses that are not included as a component
of segment gross profit due to the general nature of such
expenses.
|
|
DREAMWORKS
ANIMATION SKG, INC.
SELLING AND
MARKETING EXPENSES
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
thousands)
|
|
Selling and
marketing
|
$
|
12,222
|
|
|
$
|
32,918
|
|
|
$
|
43,640
|
|
|
$
|
61,252
|
|
|
Less: allocation to
segments
|
11,349
|
|
|
28,315
|
|
|
37,625
|
|
|
49,622
|
|
|
Unallocated selling
and marketing
|
$
|
873
|
|
|
$
|
4,603
|
|
|
$
|
6,015
|
|
|
$
|
11,630
|
|
Non-GAAP Measures
In addition to the financial results reported in accordance with
U.S. GAAP, we have provided the following non-GAAP measures:
Adjusted Income/Loss Measures (which are further described and
defined below) and Adjusted Operating Cash Flow (collectively,
"non-GAAP measures"). Adjusted Income/Loss Measures and Adjusted
Operating Cash Flow are not prepared in accordance with U.S. GAAP.
Adjusted Income/Loss Measures and Adjusted Operating Cash Flow
provide a supplemental presentation of our operating performance
and generally reflect adjustments for unusual or non-operational
activities. We may not calculate Adjusted Income/Loss Measures or
Adjusted Operating Cash Flow in a manner consistent with the
methodologies used by other companies. Adjusted Income/Loss
Measures and Adjusted Operating Cash Flow (a) do not represent our
operating income or cash flows from operating activities as defined
by U.S. GAAP; (b) are not necessarily indicative of cash available
to fund our cash flow needs; and (c) should not be considered
alternatives to net income, operating income, cash provided by
operating activities or our other financial information as
determined under U.S. GAAP. Our presentation of Adjusted
Income/Loss and Adjusted Operating Cash Flow measures should not be
construed as an implication that our future results will be
unaffected by unusual items. We believe the use of Adjusted
Income/Loss and Adjusted Operating Cash Flow measures on a
consolidated basis assists investors in comparing our ongoing
operating performance between periods.
On January 22, 2015, the Company
announced its restructuring initiatives (the "2015 Restructuring
Plan") that are intended to refocus the Company's core feature
animation business. In connection with the 2015 Restructuring Plan,
the Company made changes in its senior leadership team and also
made changes based on its reevaluation of the Company's feature
film slate. The Company evaluates operating performance to exclude
the effects of the charges related to the execution of the 2015
Restructuring Plan as it believes the restructuring-related charges
do not correlate with the ongoing operating results of the
Company's business and were charges that resulted from significant
decisions that were made in order to refocus the Company. As a
result, the Company believes that presenting the Company's Adjusted
Operating Income/Loss, Adjusted Net Income/Loss Attributable to
DreamWorks Animation SKG, Inc. and Adjusted Diluted Income/Loss per
share (collectively, "Adjusted Income/Loss Measures") will aid
investors in evaluating the performance of the Company. The Company
defines Adjusted Income/Loss Measures as net earnings (loss)
adjusted to exclude the items within its Consolidated Statements of
Operations that relate to its 2015 Restructuring Plan (as discussed
further in the footnotes to the tables below).
The Company uses these Adjusted Income/Loss Measures to, among
other things, evaluate the Company's operating performance. These
measures are among the primary measures used by management for
planning and forecasting of future periods, and they are important
indicators of the Company's operational strength and business
performance because they provide a link between profitability and
operating cash flow. The Company believes these measures are
relevant and useful for investors because they allow investors to
view performance in a manner similar to the method used by the
Company's management and help improve investors' understanding of
the Company's operating performance. In addition, the Company
believes that these are among the primary measures used externally
by the Company's investors, analysts and industry peers for
purposes of valuation and for the comparison of the Company's
operating performance to other companies in its industry. In
addition to the Adjusted Income/Loss Measures, for the same reasons
described above, the Company also uses Adjusted Operating Cash
Flow, which is defined as cash flow provided by operating
activities (as presented in the Company's Consolidated Statements
of Cash Flows) adjusted to exclude cash payments made in connection
with its 2015 Restructuring Plan.
The following is a reconciliation of each of the Company's GAAP
measures (operating income/loss, net income/loss attributable to
DreamWorks Animation SKG, Inc. and diluted earnings (or loss) per
share) to the non-GAAP adjusted amounts. In addition, following
this table are additional reconciliations for adjusted general and
administrative, which is a component of the Adjusted Income/Loss
Measures, and for adjusted operating cash flow.
|
DREAMWORKS
ANIMATION SKG, INC.
ADJUSTED
INCOME/LOSS RECONCILIATIONS
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in thousands,
except per share amounts)
|
|
Operating income
(loss) — as reported
|
$
|
50,399
|
|
|
$
|
(247,713)
|
|
|
$
|
16,439
|
|
|
$
|
(300,043)
|
|
|
|
|
|
|
|
|
|
|
Reverse 2015
Restructuring Plan charges:
|
|
|
|
|
|
|
|
|
Employee-related
termination costs(1)
|
(403)
|
|
|
43,393
|
|
|
2,394
|
|
|
43,393
|
|
|
Relocation and other
employee-related costs(2)
|
1,772
|
|
|
—
|
|
|
6,459
|
|
|
—
|
|
|
Lease obligations and
related charges(3)
|
209
|
|
|
—
|
|
|
1,319
|
|
|
—
|
|
|
Accelerated
depreciation and amortization charges(4)
|
—
|
|
|
—
|
|
|
20,132
|
|
|
—
|
|
|
Film and other
inventory write-offs(5)
|
—
|
|
|
155,452
|
|
|
—
|
|
|
155,452
|
|
|
Other contractual
obligations(6)
|
—
|
|
|
11,229
|
|
|
—
|
|
|
11,229
|
|
|
Additional labor and
other excess costs(7)
|
4,487
|
|
|
—
|
|
|
32,085
|
|
|
—
|
|
|
Total
restructuring-related charges
|
6,065
|
|
|
210,074
|
|
|
62,389
|
|
|
210,074
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
$
|
56,464
|
|
|
$
|
(37,639)
|
|
|
$
|
78,828
|
|
|
$
|
(89,969)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to DreamWorks Animation SKG, Inc. — as
reported
|
$
|
42,073
|
|
|
$
|
(263,219)
|
|
|
$
|
(54,806)
|
|
|
$
|
(309,614)
|
|
|
|
|
|
|
|
|
|
|
Reverse 2015
Restructuring Plan charges:
|
|
|
|
|
|
|
|
|
Employee-related
termination costs(1)
|
(403)
|
|
|
43,393
|
|
|
2,394
|
|
|
43,393
|
|
|
Relocation and other
employee-related costs(2)
|
1,772
|
|
|
—
|
|
|
6,459
|
|
|
—
|
|
|
Lease obligations and
related charges(3)
|
209
|
|
|
—
|
|
|
1,319
|
|
|
—
|
|
|
Accelerated
depreciation and amortization charges(4)
|
—
|
|
|
—
|
|
|
20,132
|
|
|
—
|
|
|
Film and other
inventory write-offs(5)
|
—
|
|
|
155,452
|
|
|
—
|
|
|
155,452
|
|
|
Other contractual
obligations(6)
|
—
|
|
|
11,229
|
|
|
—
|
|
|
11,229
|
|
|
Additional labor and
other excess costs(7)
|
4,487
|
|
|
—
|
|
|
32,085
|
|
|
—
|
|
|
Total
restructuring-related charges
|
6,065
|
|
|
210,074
|
|
|
62,389
|
|
|
210,074
|
|
|
|
|
|
|
|
|
|
|
Tax
impact(8)
|
—
|
|
|
(10,924)
|
|
|
—
|
|
|
(19,537)
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) attributable to DreamWorks Animation SKG,
Inc.
|
$
|
48,138
|
|
|
$
|
(64,069)
|
|
|
$
|
7,583
|
|
|
$
|
(119,077)
|
|
|
|
|
|
|
|
|
|
|
Diluted income
(loss) per share — as reported
|
$
|
0.48
|
|
|
$
|
(3.08)
|
|
|
$
|
(0.64)
|
|
|
$
|
(3.65)
|
|
|
|
|
|
|
|
|
|
|
Reverse 2015
Restructuring Plan charges:
|
|
|
|
|
|
|
|
|
Employee-related
termination costs(1)
|
—
|
|
|
0.51
|
|
|
0.03
|
|
|
0.51
|
|
|
Relocation and other
employee-related costs(2)
|
0.02
|
|
|
—
|
|
|
0.08
|
|
|
—
|
|
|
Lease obligations and
related charges(3)
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
Accelerated
depreciation and amortization charges(4)
|
—
|
|
|
—
|
|
|
0.23
|
|
|
—
|
|
|
Film and other
inventory write-offs(5)
|
—
|
|
|
1.82
|
|
|
—
|
|
|
1.83
|
|
|
Other contractual
obligations(6)
|
—
|
|
|
0.13
|
|
|
—
|
|
|
0.13
|
|
|
Additional labor and
other excess costs(7)
|
0.05
|
|
|
—
|
|
|
0.37
|
|
|
—
|
|
|
Total
restructuring-related charges
|
0.07
|
|
|
2.46
|
|
|
0.73
|
|
|
2.47
|
|
|
|
|
|
|
|
|
|
|
Tax
impact(8)
|
—
|
|
|
(0.13)
|
|
|
—
|
|
|
(0.23)
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
income (loss) per share
|
$
|
0.55
|
|
|
$
|
(0.75)
|
|
|
$
|
0.09
|
|
|
$
|
(1.41)
|
|
|
ADJUSTED EXPENSE
RECONCILIATION
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
thousands)
|
|
General and
administrative — as reported
|
$
|
89,740
|
|
|
$
|
108,620
|
|
|
$
|
332,736
|
|
|
$
|
262,013
|
|
|
|
|
|
|
|
|
|
|
Reverse 2015
Restructuring Plan charges:
|
|
|
|
|
|
|
|
|
Employee-related
termination costs(1)
|
(403)
|
|
|
43,393
|
|
|
2,394
|
|
|
43,393
|
|
|
Relocation and other
employee-related costs(2)
|
1,772
|
|
|
—
|
|
|
6,459
|
|
|
—
|
|
|
Lease obligations and
related charges(3)
|
209
|
|
|
—
|
|
|
1,319
|
|
|
—
|
|
|
Accelerated
depreciation and amortization charges(4)
|
—
|
|
|
—
|
|
|
20,132
|
|
|
—
|
|
|
Film and other
inventory write-offs(5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other contractual
obligations(6)
|
—
|
|
|
1,838
|
|
|
—
|
|
|
1,838
|
|
|
Additional labor and
other excess costs(7)
|
4,487
|
|
|
—
|
|
|
32,085
|
|
|
—
|
|
|
Total
restructuring-related charges
|
6,065
|
|
|
45,231
|
|
|
62,389
|
|
|
45,231
|
|
|
|
|
|
|
|
|
|
|
Adjusted general
and administrative
|
$
|
83,675
|
|
|
$
|
63,389
|
|
|
$
|
270,347
|
|
|
$
|
216,782
|
|
|
ADJUSTED OPERATING
CASH FLOW RECONCILIATION
(Unaudited)
|
|
|
|
Year
Ended
|
|
|
December 31,
2015
|
|
|
(in
thousands)
|
|
Net cash provided
by operating activities — as reported
|
|
$
|
52,509
|
|
|
|
|
|
2015 Restructuring
Plan cash payments
|
|
73,526
|
|
|
|
|
|
Adjusted net cash
provided by operating activities
|
|
$
|
126,035
|
|
|
|
|
(1)
|
Employee-related
termination costs. Employee-related
termination costs consist of severance and benefits (including
stock-based compensation) attributable to employees that were
terminated in connection with the 2015 Restructuring
Plan.
|
|
(2)
|
Relocation and
other employee-related costs. Relocation and
other employee-related costs primarily consist of costs to relocate
employees from our Northern California facility to our Southern
California facility.
|
|
(3)
|
Lease obligations
and related charges. Lease obligations and
related charges largely consist of remaining rent expense that we
incurred prior to the commencement of the subleases of our Northern
California facility.
|
|
(4)
|
Accelerated
depreciation and amortization charges.
Accelerated depreciation and amortization charges consist of the
incremental charges we incurred as a result of shortened estimated
useful lives of certain property, plant and equipment due to the
decision to exit our Northern California facility.
|
|
(5)
|
Film and other
inventory write-offs. Film and other
inventory write-offs (as presented in the tables above) consist of
only those capitalized production costs for unreleased titles that
were written-off as part of our 2015 Restructuring Plan. In
connection with this plan, we changed our creative leadership and
we made certain decisions to change our future film slate (which
included the decision to abandon certain projects and change
creative direction on certain titles). These costs were expensed
during the quarter ended December 31, 2014 due to the timing of
these decisions. The Company excludes them for purposes of the
Adjusted Income/Loss Measures as the amounts would not have been
incurred during the Company's standard financial close procedures
as these were changes that resulted from decisions to restructure
the business.
|
|
(6)
|
Other contractual
obligations. Other contractual obligations
consist of amounts due to third parties as a result of the changes
made to the Company's film slate as described in (5)
above.
|
|
(7)
|
Additional labor
and other excess costs. Additional labor
consists of costs related to excess staffing in order to execute
the restructuring plans specifically related to changes in the
feature film slate. These additional labor costs are incremental to
our normal operating charges and are expensed as incurred. Other
excess costs are those due to the closure of our Northern
California facility which primarily relate to costs that we
incurred to continue to operate the facility until we begin to earn
amounts under sublease arrangements.
|
|
(8)
|
Tax
Impact. For the three- and 12-month periods
ended December 31, 2014, the tax impact of non-GAAP adjustments was
calculated at the Company's combined effective tax rate. However,
for the three- and 12-month periods ended December 31, 2015, the
Company's combined effective tax rate was (14.3)% and (68.4)%,
respectively, and, as a result of the negative tax rates, the
Company concluded that it would not be meaningful to calculate the
tax impact for the current periods.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dreamworks-delivers-outstanding-fourth-quarter-and-year-end-2015-results-highlighted-by-strong-growth-across-core-business-segments-300224851.html
SOURCE DreamWorks Animation SKG, Inc.
