Headline: Pixar Announces Fourth Quarter and Fiscal 1998 Financial Results
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RICHMOND, Calif.--(BUSINESS WIRE)--Feb. 4, 1999--Pixar Animation
Studios (NASDAQ:PIXR) announced financial results for the fourth
quarter and fiscal year ended January 2, 1999.
Revenues for the fourth quarter were $3.1 million compared with
$7.1 million in the fourth quarter of 1997. Net income for the fourth
quarter was $1.1 million compared with $4.4 million for the fourth
quarter of 1997. Diluted earnings per share for the fourth quarter
were $0.02 compared with $0.09 for the fourth quarter of 1997.
Revenues for fiscal 1998 were $14.3 million compared with $34.7
million in fiscal 1997. Net income for fiscal 1998 was $7.8 million
compared with $22.2 million in fiscal 1997. Diluted earnings per share
for fiscal 1998 were $0.15 compared with $0.46 in 1997.
The year over year declines in revenue and earnings were expected
since 1998 was the third year after the release of Toy Story and Pixar
has not yet started to recognize revenues from its second computer
animated feature film, A Bug's Life. To date, A Bug's Life has
achieved $154 million in domestic box office revenues, making it the
highest domestic box office revenues for any animated feature film
since Toy Story and the second highest since Disney's The Lion King.
Pixar's third film, Toy Story 2, is targeted for release Thanksgiving,
1999. For Pixar's fourth film, although it is too early in the
production cycle to pinpoint a release date, Pixar's likely target
will be summer, 2001.
Pixar Animation Studios combines creative and technical artistry
to create original characters and stories in the new medium of
computer animation. Pixar created and produced the first
computer-animated feature film, the Academy Award winning Toy Story,
and in 1997 entered into a partnership with The Walt Disney Company to
finance, produce and distribute five computer-animated feature films
and related products. Pixar's stock is traded on the Nasdaq National
Market under the symbol PIXR.
Note to Editors: Condensed Statements of Operations and Balance
Sheets to follow.
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Pixar Animation Studios
Condensed Statements of Operations
(in thousands, except per share data)
Three Months Fiscal Year
Ended Ended
Jan. 2, Dec. 31, Jan. 2, Dec. 31,
1999 1997 1999 1997
Revenues:
Software $ 1,057 $ 1,113 $ 3,798 $ 4,499
Animation
services 459 391 630 1,556
Film 1,551 5,508 9,759 26,914
Patent licensing - 103 120 1,730
------ ------ ------- -------
Total revenues 3,067 7,115 14,307 34,699
Cost of revenues:
Software 284 35 723 81
Animation services 103 265 141 973
Film - 72 - 1,484
------- ------ ------- -------
Total cost of revenues 387 372 864 2,538
------- ------ ------- -------
Gross profit 2,680 6,743 13,443 32,161
Operating expenses:
Research and
development 1,121 1,002 3,862 4,712
Sales and
marketing 338 423 1,301 1,450
General and
administrative 1,680 1,658 6,956 5,129
Operating expense
reimbursement - - - (2,184)
------ ------- ------- -------
Total operating
expenses 3,139 3,083 12,119 9,107
------ ------- ------- -------
Income (loss)
from operations (459) 3,660 1,324 23,054
Other income, net 2,290 2,288 8,777 8,766
------ ------- ------- --------
Income before taxes 1,831 5,948 10,101 31,820
Income tax expense 736 1,705 2,637 9,864
------ ------- ------- --------
Net income from
continuing
operations 1,095 4,243 7,464 21,956
Income (loss)
from discontinued
operations (15) 198 358 234
-------- ------- -------- --------
Net income $ 1,080 $ 4,441 $ 7,822 $ 22,190
======== ======= ======== ========
Basic earnings per
share $ 0.02 $ 0.11 $ 0.18 $ 0.54
Diluted earnings
per share $ 0.02 $ 0.09 $ 0.15 $ 0.46
Shares used in
computing
basic earnings
per share 45,107 42,137 44,185 41,224
Shares used in
computing diluted
earnings per share 51,614 49,036 51,338 48,144
Pixar Animation Studios
Condensed Balance Sheets
(in thousands)
January 2, December 31,
1999 1997
ASSETS
Cash and short-term investments $ 149,048 $ 176,045
Trade and other accounts receivable, net 3,885 3,988
Prepaid expenses and other assets 5,872 984
Capitalized film production costs 60,841 28,589
Property and equipment, net 31,160 21,462
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Total assets $ 250,806 $ 231,068
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts and income taxes payable $ 2,712 $ 3,470
Payable to Disney 3,363 2,162
Other accrued liabilities 8,396 7,276
Unearned revenue 1,188 860
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Total liabilities 15,659 13,768
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Shareholders' equity:
Common stock 220,397 210,902
Retained earnings and other 14,750 6,398
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Total shareholders'
equity 235,147 217,300
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Total liabilities
and shareholders'
equity $ 250,806 $ 231,068
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CONTACT: Pixar Animation Studios
Bryn Richardson, 510/620-3577 (Investor Relations Mgr.)
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: ENTERTAINMENT COMED COMPUTERS/ELECTRONICS
INTERACTIVE/MULTIMEDIA/INTERNET
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