So much for CEO Jeffrey Katzenberg’s prediction that Turbo would be profitable. DreamWorks Animation‘s shares are down 5.6% in post-market trading after releasing a Q4 earnings report that includes a $13.5M impairment charge, equal to 12 cents a share, for the film, which the company attributes to “its performance during the last two months of the quarter.” DWA took an additional $6.7M charge, worth 6 cents a share, mostly for a Rocky & Bullwinkle short the studio hoped to run before Mr. Peabody And Sherman. Still, the bottom line looks better than the it did in the same quarter in 2012, when it took an $87M charge for Rise Of The Guardians. The company generated net income of $17.2M vs a loss of $82.7M the previous year on revenues of $204.3M, -22.8%. Analysts anticipated a top line of $227.1M. Earnings, at 20 cents a share, also missed forecasts for 33 cents. DWA didn’t give year-over-year comparisons for the results at each of its divisions. It says that feature films contributed $127.9M in revenue — including $46.8M from library titles –with a gross profit of $53.4M. Television saw revenues of $47.1M with a $7.3M gross profit. Consumer Products generated $12.4M in revenue with a $2M gross profit. And other businesses had $16.8M in revenue with $2.3M in gross profit, mostly from streaming rights to Shrek The Musical. Katzenberg says the company “made significant progress” last year with its efforts to diversify. He also talked up his upcoming films Mr. Peabody & Sherman, How To Train Your Dragon 2, and Home.
By DAVID LIEBERMAN, Financial Editor | Tuesday February 25, 2014 @ 4:08pm ESTTags: DreamWorks Animation, Turbo
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This article was printed from http://www.deadline.com/2014/02/dreamworks-animation-takes-13-5m-charge-for-turbo-as-q4-earnings-lag-analyst-estimates/
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