DreamWorks Animation reported third quarter revenues of $259.2 million on Thursday, a 43.3 percent gain from the same period in 2014, driven by the strong home entertainment performance by its only 2015 release, “Home.”
DWA’s adjusted operating income was $26.8 million and its adjusted net income was $1.4 million, or $0.02 per share. The adjusted results exclude a $3.6 million pre-tax charge from the company’s massive restructuring plan announced in January.
Investors were glad to hear the good news, and drove a nearly 10 percent surge in DWA stock in after-hours trading Thursday, which rose to $22.19.
With $450 million in cash on the books, $360 million of which comes from a credit facility and $89 million on the balance sheet, DWA raised its projection for the year from break even to a $30 million profit.
There were positives nearly across the board. Feature film revenue rose 11 percent to $158 million, TV more than tripled year-over-year to $51 million, consumer products more than doubled to $27 million and adjusted revenue in the new media sector more than tripled to $21 million in the quarter.
Some of the gains are attributable to comparisons to a very tough 2014, when a $247 million four-quarter loss forced DWA to restructure, lay off 500 hundred employees and sell off its Glendale campus. Chief Executive Jeffrey Katzenberg was not surprisingly upbeat in his assessment.
“DreamWorks Animation delivered solid third quarter results, highlighted by strong top-line growth and meaningful segment gross profit across all of our businesses,” he said.
“While we still have considerable work ahead of us, I am proud of the
team’s collective efforts and remain confident that we are well positioned to meet or even exceed our stated goals for the year while continuing to drive long term value for our stakeholders.”
The growing popularity of DreamWorks-owned AwesomenessTV continues to drive the company’s multi-platform business. AwesomenessTV recently struck a multi-year deal with Endemol Shine Group to expand its international presence.
Also helping the bottom line was the sale of the company’s 14.7 acre Glendale headquarters for $185 million, which should help bolster its film funding efforts, and a series of margin-boosting cost-cutting strategies.
As part of DWA’s effort to release fewer films of superior quality, the company cut its 2015 slate and “Home” was the year’s only film. Released in March, it has taken in $360 million at the global box office.
Next year, there two films on the slate. “Kung Fu Panda 3,” on January 29, and “Trolls,” set for November 4.