Tuesday, February 26, 2013

Confirming The News ...

DreamWorks Animation has announced its fourth quarter 2012 and total 2012 earnings.

In the quarter, the Company reported total revenue of $264.7 million and a net loss of $82.7 million, or a loss of $0.98 per share. For the twelve months ended December 31, 2012, the Company reported total revenue of $749.8 million and a net loss of $36.4 million, or a loss of $0.43 per share. ...

Impacting DreamWorks Animation's fourth quarter and full-year 2012 results is a charge of approximately $165 million, which includes 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.

Adding to which:

DreamWorks Animation will lay off approximately 350 employees, about 15 percent of its full-time staff, CEO Jeffrey Katzenberg and CFO Lewis Coleman said Tuesday during the company’s fourth-quarter-earnings call.

The Burbank, Calif.-based company posted a loss of $83 million in the fourth quarter of fiscal year 2012 due to development costs and the poor performance of its latest film, "Rise of the Guardians." ...

I spent the afternoon at DWA's Glendale campus and things are much as they've been for the last few weeks: empty desks, somber faces.

I spoke to a number of people for whom this is the last week of employment, giving them health coverage information, pension information, etc. It's never easy when there are big layoffs. I've been though a few before -- both as an axed employee and as a union representative -- and they are always sucky. I hate them.

-- Steve Hulett

Add On Too: Jeffrey Katzenberg addressed Rise of the Guardians weaker performance (along with other things) here:

... The audience response to Rise of the Guardians was strong, which is demonstrated by the fact that it delivered 4.2x multiple off of its opening weekend and also garnered and A cinema score rating. Still, Guardians did not reach the box office levels required of our film. ...


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