Animated film studio DreamWorks Animation SKG Inc Wednesday reported a profit from a year-earlier loss in its first earnings period since the company went public in October.
Glendale, California-based DreamWorks said its earnings were buoyed by the DVD release of the hit "Shrek 2" and revenue from its library of animated films, including "Shrek," "Antz," "The Prince of Egypt," "Chicken Run," and others.
DreamWorks Chief Executive Jeffrey Katzenberg said the company would shift the release of "Shrek 3" from November 2006 to May 2007, the same release schedule that led to record-setting sales for "Shrek 2" this year.
DreamWorks' third-quarter profit totaled $13.7 million, or 18 cents per share, compared with a loss of $35.9 million, or 47 cents per share, a year earlier.
Revenue rose fivefold to $241.3 million from $47.8 million for the same period last year.
Third-quarter earnings were adjusted to reflect a provision of $7.9 million for income taxes, which the company would have paid had its separation from parent DreamWorks Studios had been completed by the end of its third quarter on Sept. 30.
The company also noted that third-quarter results did not reflect a deal on distribution costs it completed with its parent studio on Oct. 7.
DreamWorks Animation went public on Oct. 27.
Wall Street had expected earnings of 17 cents per share on revenue of $233.1 million for the third quarter, according to the average of two analysts polled by Reuters Estimates.
The animation studio reported in its Oct. 28 IPO filing that it generated third-quarter revenue of $241.3 million, operating income of $32.3 million and net income of $13.7 million, or about 17 cents per share.