Dreamworks Animation SKG Misses Expectations

Dreamworks Animation SKG Inc DWA reported financial results Tuesday for the fourth quarter ended December 31, 2014.

Revenue came in at $234.2 million, below expectations of $246.17 million, however, it was an increase of 14.7 percent from the same period in 2013.

The company reported a GAAP operating loss of $(247.7) million with a net loss of $(263.2) million, or $(3.08) per share, greater than the expected loss of $(3.01). The company reported EPS of $0.20 in the year-ago period.

Of the restructuring-related charges totaling $210.1 million or a loss of ($2.33) per share, $54.6 million was related to employee termination costs and other contractual obligations and $155.5 million was primarily related to write-offs of capitalized production costs of unreleased projects, including B.O.O. and Monkeys of Mumbai, as well as other charges associated with changes in the film slate.

The company reported an adjusted operating loss of $(37.6) million and adjusted net loss of $(64.1) million, or ($0.75) per share.

CEO Jeffrey Katzenberg said, "Although 2014 was a challenging year for our Company, I am confident that our recent announcement to restructure our feature film business will enable us to deliver great films and better box office results,  while improving the overall financial performance of our business.”

Dreamworks Animation SKG Inc traded at $19.21 in the after hours session, down 9.09 percent.