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 Third Quarter Financial Results
EMERYVILLE, CA — (November 6, 2003) Pixar Animation Studios (Nasdaq: PIXR) today announced financial results for its fiscal third quarter ended September 27,2003. For the quarter, Pixar earned $13.2 million or $0.23 per diluted share on revenues of $30.2 million. These results were largely driven by the continuing box office results ofFinding Nemo, which achieved a worldwide box office gross of $424 million by the end of the third quarter.
"Finding Nemohas become the highest grossing animated film of all time, the highest grossing film so far this year, and the top-selling home video title in the U.S.,” said Pixar CEO Steve Jobs. “WithFinding Nemomaking its theatrical debut in many of the larger international territories throughout the fall, Pixar is on-track to have the best year in its history.”
The company will discuss its third quarter 2003 earnings results during the conference call to be held today, Thursday, November 6, 2003, at 5:00 p.m. Eastern Time, 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 888-428-4478 (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, November 10, 2003 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: 703165.
Pixar will also provide live audio streaming of its third 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 $2.2 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 Second 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 Statements of Income
(in thousands, except per share data)
(Unaudited)
Quarter | Nine Months | |||||||||||||||||
Ended | Ended | |||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||||
Revenue: | ||||||||||||||||||
Film | $ | 27,481 | $ | 100,475 | $ | 89,038 | $ | 155,711 | ||||||||||
Software | 2,702 | 1,981 | 8,678 | 6,629 | ||||||||||||||
Total revenue | 30,183 | 102,456 | 97,716 | 162,340 | ||||||||||||||
Cost of revenue: | ||||||||||||||||||
Film | 4,287 | 21,304 | 15,017 | 33,231 | ||||||||||||||
Software | 2 | 137 | 27 | 410 | ||||||||||||||
Total cost of revenue | 4,289 | 21,441 | 15,044 | 33,641 | ||||||||||||||
Gross profit | 25,894 | 81,015 | 82,672 | 128,699 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development | 3,066 | 2,039 | 11,986 | 6,623 | ||||||||||||||
Sales and marketing | 803 | 404 | 1,769 | 858 | ||||||||||||||
General and administrative | 2,935 | 2,347 | 9,944 | 6,354 | ||||||||||||||
Total operating expenses | 6,804 | 4,790 | 23,699 | 13,835 | ||||||||||||||
Income from operations | 19,090 | 76,225 | 58,973 | 114,864 | ||||||||||||||
Other income, net | 2,717 | 2,577 | 8,622 | 7,678 | ||||||||||||||
Income before income taxes | 21,807 | 78,802 | 67,595 | 122,542 | ||||||||||||||
Income tax expense | 8,614 | 31,867 | 26,700 | 49,556 | ||||||||||||||
Net income | $ | 13,193 | $ | 46,935 | $ | 40,895 | $ | 72,986 | ||||||||||
Basic net income per share | $ | 0.24 | $ | 0.93 | $ | 0.76 | $ | 1.46 | ||||||||||
Diluted net income per share | $ | 0.23 | $ | 0.87 | $ | 0.72 | $ | 1.39 | ||||||||||
Shares used in computing basic net income per share | 54,722 | 50,643 | 53,818 | 50,001 | ||||||||||||||
Shares used in computing diluted net income per share | 58,030 | 53,746 | 57,034 | 52,691 |
Pixar Animation Studios
Condensed Balance Sheets
(in thousands)
(Unaudited)
September 27, | December 28, | |||||||||||
2003 | 2002 | |||||||||||
ASSETS | ||||||||||||
Cash and investments | $ | 516,545 | $ | 339,083 | ||||||||
Receivables, net | 55,003 | 136,911 | ||||||||||
Prepaid expenses and other assets | 26,340 | 13,826 | ||||||||||
Deferred income taxes | 33,836 | 32,719 | ||||||||||
Property and equipment, net | 114,952 | 117,423 | ||||||||||
Capitalized film production costs | 117,277 | 92,104 | ||||||||||
Total assets | $ | 863,953 | $ | 732,066 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 1,162 | $ | 2,341 | ||||||||
Accrued liabilities | 10,205 | 9,322 | ||||||||||
Unearned revenue | 10,426 | 7,341 | ||||||||||
Total liabilities | 21,793 | 19,004 | ||||||||||
Shareholders’ equity: | ||||||||||||
Common stock | 532,391 | 442,477 | ||||||||||
Accumulated other comprehensive income | 445 | 2,156 | ||||||||||
Retained earnings | 309,324 | 268,429 | ||||||||||
Total shareholders’ equity | 842,160 | 713,062 | ||||||||||
Total liabilities and shareholders’ equity | $ | 863,953 | $ | 732,066 | ||||||||