DreamWorks Animation Profits Kicked Down

Despite its chief executive saying DreamWorks Animation SKG Inc. had one of its most successful years ever, the Glendale-based company posted a 35 percent drop in net income when compared to 2007. “Kung Fu Panda” and “Madagascar: Escape 2 Africa” brought in a combined $1.2 billion in box office receipts putting them in the top 10 films for the year. Those numbers made for one of the best years for the company, said CEO Jeffrey Katzenberg. For the fiscal year ending Dec. 31, DreamWorks Animation had a net income of $142.5 million, or $1.57 per diluted share, on revenues of $650 million. For the 2007 fiscal year, the company had net income of $218 million, or $2.17 per diluted share, on revenues of $767 million. For the fourth quarter, the company brought in a net income of $51.6 million, or $0.58 per diluted share, on revenues of $200 million. That is a 45 percent drop from the net income of $94 million, or $0.98 per diluted share, on revenues of $290 million for the same period in 2007. DreamWorks has high hopes that its first 3D film, “Monsters vs. Aliens” will drive most of the financial results for 2009. The March release is the only feature film DreamWorks Animation will have in theaters this year, diverting from the company’s practice of two films annually. “We believe that Monsters vs. Aliens will reset the bar for what moviegoers should expect from a CG animated film and are confident that it will offer our audiences a premium viewing opportunity,” Katzenberg said. Mark R. Madler