Exhibit 99.1
Press Release | For more information contact: | |||
For immediate release | Nils Erdmann | Investor Relations | ||
Pixar Animation Studios | ||||
(510) 752-3374 | ||||
John Buckley | Brainerd Communicators | |||
(212) 986-6667 |
Pixar Reports Record Fourth Quarter and Fiscal 2003 Financial Results
EMERYVILLE, CA — (February 4, 2004) Pixar Animation Studios (Nasdaq: PIXR) today announced financial results for its fourth quarter and fiscal year ended January 3,2004. For the quarter, Pixar earned $83.9 million, or $1.44 per diluted share, on revenues of $164.8 million. This compares to earnings of $17.0 million, or $0.31 per diluted share, on revenues of $39.4 million, achieved in the fourth quarter of 2002.
For the fiscal year ended January 3, 2004, Pixar earned $124.8 million, or $2.17 per diluted share, on revenues of $262.5 million. These results compare to earnings of $90.0 million, or $1.68 per diluted share, on revenues of $201.7 million for the full year ended December 28, 2002.
“We are thrilled to report the most profitable quarter and full year in Pixar’s history,” said Pixar CEO Steve Jobs. “Pixar has created five of the most successful animated films of all time – includingFinding Nemo, the highest grossing animated film in history – and we are extremely excited about our next film,The Incredibles, which premieres this November.”
Fiscal year 2003 results exceeded the company’s previous guidance of approximately $1.76 per diluted share, largely because of the greater than anticipated performance ofFinding Nemoduring the fourth quarter. As of the year-end,Finding Nemohad generated worldwide box office receipts of $792 million and domestic home video sales of 24.8 million units. Since that time, the film has been released in all of its scheduled international markets and has continued to climb to a worldwide box office of $850 million.
The company will discuss its fourth quarter and fiscal year 2003 earnings results during the conference call to be held today, Wednesday, February 4, 2004 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 888-428-4479 (U.S.) or 612-288-0329 (Int’l) approximately 10 minutes prior to the start time. Additionally, a replay of the call will be provided through Monday, February 9, 2004 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: 719023.
Pixar will also provide live audio streaming of its fourth quarter and full-year 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 films in the medium of computer animation. Pixar has created and produced 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); and the Academy Award®-nominatedFinding Nemo(2003), the highest-grossing animated film of all time. To date, Pixar’s five films have earned more than $2.5 billion at the worldwide box office and sold over 150 million DVDs and videos. The Northern California studio’s next two films areThe Incredibles(November 5, 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 political events; and (5) the release dates of competitive films. Please refer to Pixar’s 2002 Form 10-K and 2003 Third Quarter 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)
Quarter | Twelve Months | |||||||||||||||||
Ended | Ended | |||||||||||||||||
January 3, | December 28, | January 3, | December 28, | |||||||||||||||
2004 | 2002 | 2004 | 2002 | |||||||||||||||
Revenue: | ||||||||||||||||||
Film | $ | 161,345 | $ | 37,880 | $ | 250,383 | $ | 193,591 | ||||||||||
Software | 3,437 | 1,504 | 12,115 | 8,133 | ||||||||||||||
Total revenue | 164,782 | 39,384 | 262,498 | 201,724 | ||||||||||||||
Cost of revenue: | ||||||||||||||||||
Film | 23,012 | 7,772 | 38,029 | 41,003 | ||||||||||||||
Software | 2 | 122 | 29 | 531 | ||||||||||||||
Total cost of revenue | 23,014 | 7,894 | 38,058 | 41,534 | ||||||||||||||
Gross profit | 141,768 | 31,490 | 224,440 | 160,190 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development | 3,325 | 1,874 | 15,311 | 8,497 | ||||||||||||||
Sales and marketing | 653 | 476 | 2,422 | 1,334 | ||||||||||||||
General and administrative | 2,839 | 3,322 | 12,783 | 9,677 | ||||||||||||||
Total operating expenses | 6,817 | 5,672 | 30,516 | 19,508 | ||||||||||||||
Income from operations | 134,951 | 25,818 | 193,924 | 140,682 | ||||||||||||||
Other income, net | 1,895 | 2,663 | 10,517 | 10,342 | ||||||||||||||
Income before income taxes | 136,846 | 28,481 | 204,441 | 151,024 | ||||||||||||||
Income tax expense | 52,973 | 11,518 | 79,673 | 61,074 | ||||||||||||||
Net income | $ | 83,873 | $ | 16,963 | $ | 124,768 | $ | 89,950 | ||||||||||
Basic net income per share | $ | 1.52 | $ | 0.33 | $ | 2.30 | $ | 1.78 | ||||||||||
Diluted net income per share | $ | 1.44 | $ | 0.31 | $ | 2.17 | $ | 1.68 | ||||||||||
Shares used in computing basic net income per share | 55,338 | 51,902 | 54,219 | 50,473 | ||||||||||||||
Shares used in computing diluted net income per share | 58,442 | 55,284 | 57,422 | 53,400 |
Pixar Animation Studios
Condensed Balance Sheets
(in thousands)
January 3, | December 28, | |||||||||||
2004 | 2002 | |||||||||||
ASSETS | ||||||||||||
Cash and investments | $ | 521,923 | $ | 339,083 | ||||||||
Receivables, net | 203,794 | 136,911 | ||||||||||
Prepaid expenses and other assets | 1,047 | 13,826 | ||||||||||
Deferred income taxes | 51,496 | 32,719 | ||||||||||
Property and equipment, net | 115,026 | 117,423 | ||||||||||
Capitalized film production costs | 107,667 | 92,104 | ||||||||||
Total assets | $ | 1,000,953 | $ | 732,066 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 1,803 | $ | 2,341 | ||||||||
Accrued liabilities | 13,007 | 9,322 | ||||||||||
Income taxes payable | 37,595 | — | ||||||||||
Unearned revenue | 8,038 | 7,341 | ||||||||||
Total liabilities | 60,443 | 19,004 | ||||||||||
Shareholders’ equity: | ||||||||||||
Common stock | 546,999 | 442,477 | ||||||||||
Accumulated other comprehensive income | 314 | 2,156 | ||||||||||
Retained earnings | 393,197 | 268,429 | ||||||||||
Total shareholders’ equity | 940,510 | 713,062 | ||||||||||
Total liabilities and shareholders’ equity | $ | 1,000,953 | $ | 732,066 | ||||||||