Pixar Profit Down 63% Despite ‘Monster’ Success
Pixar Animation Studios said its net income fell 63% in the fourth quarter, despite the hugely successful release of its fourth animated feature film, “Monsters, Inc.”
The computer animation firm headed by Apple Computer Inc. co-founder Steve Jobs reported that most of the revenue and income from “Monsters, Inc.,” which has grossed more than $250 million domestically since its November release, will be recognized in later quarters.
For the record:
12:00 a.m. Feb. 9, 2002 FOR THE RECORD
Los Angeles Times Saturday February 9, 2002 Home Edition Main News Part A Page 2 A2 Desk 1 inches; 36 words Type of Material: Correction
Pixar financial results--A C1 index item Friday erroneously stated that “Pixar Misses Outlook.” As reported elsewhere in the Business section, the fourth-quarter results of Pixar Animation Studios in fact exceeded Wall Street analysts’ forecasts.
In the fourth quarter Pixar reported net income of $13 million, or 25 cents a share, compared with $35.2 million, or 71 cents, a year earlier when profit was driven by the video release of “Toy Story 2.” Revenue in the latest quarter fell 66% to $26.1 million from $75.7 million.
For 2001, Pixar’s profit fell to $36.2 million, or 71 cents a share, from $78.4 million, or $1.57 a share, a year earlier when nearly all of the domestic and international theatrical receipts and merchandise revenue of “Toy Story 2” were recognized. The company’s full-year revenue dropped to $70.2 million, from $172.3 million.
Pixar typically reports significant swings in its financial results because they are tied almost entirely to new releases of films or videos. The quarterly and full-year results beat Wall Street analyst projections.
“‘Monsters, Inc.’ was a monster hit in the U.S., and we look forward to continued success as its international roll-outs kick into high gear this quarter,” Jobs said.
The film’s international box office receipts have topped $55 million, and Jobs said that he hopes the film’s overseas performance will equal its domestic gross.
Jobs forecast that Pixar’s 2002 net income would jump about 50% to about $1 to $1.20 a share.
The company splits the production costs of its films with Walt Disney Co., which also distributes the movies and shares equally in revenue and profit.
The two companies have a seven-picture deal. The partners have launched four successful films in a row, and Jobs said he has high hopes for the summer 2003 release of its fifth film, “Finding Nemo.”
“We’re four-for-four,” said Jobs. “We want to be five-for-five. That’s what we are focused on.”
Pixar shares fell 75 cents to $30.67 on Nasdaq, but rose as high as $32 in after-hours trading after the release of its earnings results.
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