DreamWorks Animation takes $13.5-million charge on ‘Turbo’
DreamWorks Animation took a $13.5-million charge on its animated movie “Turbo,” which misfired at the box office this summer.
The Glendale-based studio on Tuesday said the charge represented a loss of $0.12 cents of earnings per share in the fourth quarter. The company said it also recorded a charge of $6.7 million, or $.06 cents a share, related to other unspecified content.
Nonetheless, DreamWorks Animation swung to profit in the quarter, posting net income of $17.2 million on revenues of $204.3 million in the three months ended Dec. 31, compared with a loss of $82.7 million on revenues of $264.6 million during the same quarter in 2012.
For the year, DreamWorks Animation recorded a profit of $55.1 million, compared with a loss of $36.4 million in 2012. Revenues for the year dropped to $706.9 million from $749.8 million in 2012.
“We made significant progress in 2013, transforming and positioning DreamWorks Animation for long-term success as a diversified family entertainment company,” said Jeffrey Katzenberg, chief executive of DreamWorks Animation, in a statement. “Beyond our feature films, we plan to continue to invest in our television, consumer products, digital and location-based entertainment businesses, where we believe there are significant growth opportunities for our company going forward.”
“Turbo,” which was released on July 17, 2013, generated $282.6 million at the worldwide box office, well below that of a typical DreamWorks Animated film.
“The Croods” contributed feature film revenue of $59.7 million in the quarter, primarily from home entertainment, while “Rise of the Guardians” generated feature film revenue of $8.5 million, primarily from television and home entertainment.
Library titles accounted for $46.8 million in film revenue during the quarter.
The studio’s television segment contributed revenue of $47.1 million and gross profit of $7.3 million to the fourth quarter, primarily from Classic Media and DreamWorks specials holiday content, as well as DreamWorks “Dragons: Riders of Berk” on Cartoon Network.
The company’s full-year 2014 results are expected to be driven primarily by the performance of “Mr. Peabody & Sherman” on March 7 followed by “How to Train Your Dragon 2" in June.
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