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 Second Quarter Financial Results
EMERYVILLE, CA — (August 7, 2003) Pixar Animation Studios (Nasdaq: PIXR) today announced financial results for its fiscal second quarter ended June 28,2003. For the quarter, Pixar earned $19.5 million or $0.34 per diluted share. These results compare to earnings of $10.4 million, or $0.20 per diluted share, achieved in the year-ago quarter. Revenues for the quarter were $48.9 million, as compared to $22.8 million in the year-ago quarter.
Revenues for the second quarter of 2003 were driven primarily by $260 million of worldwide box office receipts fromFinding Nemo(currently at $374 million), versus the year-ago period during which revenues were primarily driven byMonsters, Inc.foreign theatrical box office receipts, merchandise sales, and ancillary royalties, as well as some revenues from Pixar’s library titles.
“Finding Nemohas passed The Lion Kingto become the most successful animated film ever released in North America,” said Steve Jobs, Pixar’s CEO. “Pixar’s five films have earned over $2.1 billion at the worldwide box office to date, with more to come from Nemo’s international releases, and represent half of the top 10 grossing animated films of all time.”
The company will discuss its second quarter 2003 earnings results and fiscal year 2003 projections during the conference call to be held today, Thursday, August 7, 2003, at 2:00 p.m. (Pacific Time). 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 888-428-4473 (U.S.) or 651-291-0900 (Int’l) approximately 10 minutes prior to the start time. Additionally, a replay of the call will be provided through Monday, August 11, 2003 up until midnight Eastern Time. To access the replay, please call 800-475-6701 (U.S.) or 320-365-3844 (Int’l) and reference the reservation code: 691231.
Pixar will also provide live audio streaming of its second 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 five 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); the Academy Award®-winningMonsters, Inc.(2001); andFinding Nemo(2003). Pixar’s five films have earned more than $2.1 billion at the worldwide box office to date. The Northern California studio’s next two film releases areThe Incredibles(November 5, 2004) andCars(holiday 2005). Pixar’s films are released by Walt Disney Pictures.
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 and First Quarter 2003 Form 10-Q, particularly the sections on risks, for important factors that could cause actual results to differ.
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Pixar Animation Studios
Condensed Balance Sheets
(in thousands,except per share data)
Three Months | Six Months | |||||||||||||||||
Ended | Ended | |||||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||||
Revenue: | ||||||||||||||||||
Film | $ | 45,182 | $ | 19,348 | $ | 61,557 | $ | 55,236 | ||||||||||
Software | 3,694 | 3,463 | 5,976 | 4,648 | ||||||||||||||
Total revenue | 48,876 | 22,811 | 67,533 | 59,884 | ||||||||||||||
Cost of revenue: | ||||||||||||||||||
Film | 7,800 | 3,570 | 10,730 | 11,927 | ||||||||||||||
Software | 5 | 136 | 25 | 272 | ||||||||||||||
Total cost of revenue | 7,805 | 3,706 | 10,755 | 12,199 | ||||||||||||||
Gross profit | 41,071 | 19,105 | 56,778 | 47,685 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development | 6,599 | 2,229 | 8,920 | 4,584 | ||||||||||||||
Sales and marketing | 578 | 203 | 966 | 454 | ||||||||||||||
General and administrative | 4,624 | 1,761 | 7,009 | 4,008 | ||||||||||||||
Total operating expenses | 11,801 | 4,193 | 16,895 | 9,046 | ||||||||||||||
Income from operations | 29,270 | 14,912 | 39,883 | 38,639 | ||||||||||||||
Other income, net | 3,001 | 2,620 | 5,905 | 5,102 | ||||||||||||||
Income before income taxes | 32,271 | 17,532 | 45,788 | 43,741 | ||||||||||||||
Income tax expense | 12,747 | 7,090 | 18,086 | 17,689 | ||||||||||||||
Net income | $ | 19,524 | $ | 10,442 | $ | 27,702 | $ | 26,052 | ||||||||||
Basic net income per share | $ | 0.36 | $ | 0.21 | $ | 0.52 | $ | 0.52 | ||||||||||
Diluted net income per share | $ | 0.34 | $ | 0.20 | $ | 0.49 | $ | 0.50 | ||||||||||
Shares used in computing basic net income per share | 53,685 | 49,758 | 53,365 | 49,679 | ||||||||||||||
Shares used in computing diluted net income per share | 56,788 | 52,536 | 56,476 | 52,102 |
Pixar Animation Studios
Condensed Balance Sheets
(in thousands)
June 28, | December 28, | |||||||||||
2003 | 2002 | |||||||||||
ASSETS | ||||||||||||
Cash and investments | $ | 502,516 | $ | 339,083 | ||||||||
Receivables, net | 51,991 | 136,911 | ||||||||||
Prepaid expenses and other assets | 11,234 | 13,826 | ||||||||||
Deferred income taxes | 33,239 | 32,719 | ||||||||||
Property and equipment, net | 116,584 | 117,423 | ||||||||||
Capitalized film production costs | 110,436 | 92,104 | ||||||||||
Total assets | $ | 826,000 | $ | 732,066 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 1,877 | $ | 2,341 | ||||||||
Accrued liabilities | 28,568 | 9,322 | ||||||||||
Unearned revenue | 10,746 | 7,341 | ||||||||||
Total liabilities | 41,191 | 19,004 | ||||||||||
Shareholders’ equity: | ||||||||||||
Common stock | 487,318 | 442,477 | ||||||||||
Accumulated other comprehensive income | 1,360 | 2,156 | ||||||||||
Retained earnings | 296,131 | 268,429 | ||||||||||
Total shareholders’ equity | 784,809 | 713,062 | ||||||||||
Total liabilities and shareholders’ equity | $ | 826,000 | $ | 732,066 | ||||||||