Exhibit 99.1
Press Release | for more information contact: | ||||
for immediate release | Nils Erdmann | Manager of Investor Relations Pixar Animation Studios (510) 752-3374 | |||
John Buckley | Brainerd Communicators (212) 986-6667 |
Pixar Reports First Quarter Financial Results
EMERYVILLE, CA — (May 7, 2003) Pixar Animation Studios (Nasdaq: PIXR) today announced financial results for its fiscal first quarter ended March 29, 2003. For the quarter, Pixar earned $8.2 million or $0.15 per diluted share. These results compare to earnings of $15.6 million, or $0.30 per diluted share, achieved in the year-ago quarter, and previous guidance of between $0.07 and $0.10 per fully diluted share. Revenues for the quarter were $18.7 million, as compared to $37.1 million in the year-ago quarter.
Film revenues for the first quarter were $16.4 million, which were primarily derived fromMonsters, Inc.domestic pay television licensing as well as worldwide home video sales from Pixar’s library titles. In the prior-year period, revenues were driven by international box office receipts fromMonsters, Inc.
“We are very pleased with our performance in the first quarter, and we’re on the edge of our seats for the release ofFinding Nemoin 23 days,” said Pixar CEO Steve Jobs. “Finding Nemo, our studio’s fifth feature film, tells an exciting, funny and emotional story, and is the most visually stunning animated film ever produced.”
The company will discuss its first quarter 2003 earnings results and fiscal year 2003 projections during the conference call to be held today, Wednesday, May 7, 2003, at 2:00 p.m. (PDT). The call, hosted by Pixar’s chairman and chief executive officer, Steve Jobs, and executive vice president and chief financial officer, Ann Mather, can be accessed by dialing 888-428-4474 (U.S.) or 651-291-0900 (Int’l) approximately 10 minutes prior to the start time. Additionally, a replay of the call will be available today from 6:00 p.m. (PDT) until Monday, May 12, 2003 at 9:00 p.m. (PDT). To access the replay, please call 800-475-6701 (U.S.) or 320-365-3844 (Int’l) and reference the reservation code: 681975.
Pixar will also provide live audio streaming of its first quarter 2003 results conference call. The webcast will be accessible through Pixar’s web site at http://www.pixar.com/investor/index.html.
About Pixar Animation Studios
Pixar Animation Studios (Nasdaq: PIXR, http://www.pixar.com) combines creative and technical artistry to create original stories in the medium of computer animation. Pixar has created four of the most successful and beloved animated films of all time: Academy Award®-winningToy Story (1995);A Bug’s Life(1998); Golden Globe-winnerToy Story 2(1999); and the Academy Award®-winningMonsters, Inc.(2001). Pixar’s four films have earned more than $1.7 billion at the worldwide box office to date. The Northern California studio’s next three film releases areFinding Nemo(May 30, 2003),The Incredibles(holiday 2004) andCars(holiday 2005).
This release contains forward-looking information regarding Pixar’s targeted release dates for Pixar’s future films and actual results may differ materially. Factors that could cause delays in the release of our films include, but are not limited to: (1) the uncertainties related to production delays; (2) financing requirements; (3) personnel availability; (4) external socioeconomic and political events; and (5) the release dates of competitive films. Please refer to Pixar’s 2002 Form 10-K, particularly the sections on risks, for important factors that could cause actual results to differ.
###
Pixar Animation Studios
Condensed Statements of Income
(in thousands, except per share data)
Three Months | |||||||||||
Ended | |||||||||||
March 29, | March 30, | ||||||||||
2003 | 2002 | ||||||||||
(unaudited) | |||||||||||
Revenue: | |||||||||||
Film | $ | 16,375 | $ | 35,888 | |||||||
Software | 2,282 | 1,185 | |||||||||
Total revenue | 18,657 | 37,073 | |||||||||
Cost of revenue: | |||||||||||
Film | 2,930 | 8,357 | |||||||||
Software | 20 | 136 | |||||||||
Total cost of revenue | 2,950 | 8,493 | |||||||||
Gross profit | 15,707 | 28,580 | |||||||||
Operating expenses: | |||||||||||
Research and development | 2,321 | 2,355 | |||||||||
Sales and marketing | 388 | 251 | |||||||||
General and administrative | 2,385 | 2,247 | |||||||||
Total operating expenses | 5,094 | 4,853 | |||||||||
Income from operations | 10,613 | 23,727 | |||||||||
Other income, net | 2,904 | 2,482 | |||||||||
Income before income taxes | 13,517 | 26,209 | |||||||||
Income tax expense | 5,339 | 10,599 | |||||||||
Net income | $ | 8,178 | $ | 15,610 | |||||||
Basic net income per share | $ | 0.15 | $ | 0.32 | |||||||
Diluted net income per share | $ | 0.15 | $ | 0.30 | |||||||
Shares used in computing basic net income per share | 53,046 | 49,483 | |||||||||
Shares used in computing diluted net income per share | 56,161 | 51,467 |
Pixar Animation Studios
Condensed Balance Sheets
(in thousands)
March 29, | December 28, | |||||||||||
2003 | 2002 | |||||||||||
(unaudited) | ||||||||||||
ASSETS | ||||||||||||
Cash and investments | $ | 453,880 | $ | 339,083 | ||||||||
Receivables, net | 33,933 | 136,911 | ||||||||||
Prepaid expenses and other assets | 12,759 | 13,826 | ||||||||||
Deferred income taxes | 33,108 | 32,719 | ||||||||||
Property and equipment, net | 117,205 | 117,423 | ||||||||||
Capitalized film production costs | 101,909 | 92,104 | ||||||||||
Total assets | $ | 752,794 | $ | 732,066 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 1,831 | $ | 2,341 | ||||||||
Accrued liabilities | 10,703 | 9,322 | ||||||||||
Unearned revenue | 7,179 | 7,341 | ||||||||||
Total liabilities | 19,713 | 19,004 | ||||||||||
Shareholders’ equity: | ||||||||||||
Common stock | 454,889 | 442,477 | ||||||||||
Accumulated other comprehensive income | 1,585 | 2,156 | ||||||||||
Retained earnings | 276,607 | 268,429 | ||||||||||
Total shareholders’ equity | 733,081 | 713,062 | ||||||||||
Total liabilities and shareholders’ equity | $ | 752,794 | $ | 732,066 | ||||||||