PIXR Pixar (MM)

EMERYVILLE, Calif., Nov. 8 /PRNewswire-FirstCall/ -- Pixar Animation Studios (NASDAQ:PIXR) today announced financial results for its fiscal third quarter ended October 1, 2005. For the quarter, Pixar earned $27.4 million, or $0.22 per diluted share on revenues of $45.8 million. These results compare to earnings of $22.4 million, or $0.19 per diluted share on revenues of $44.5 million, achieved in the year-ago quarter. For the nine months ended October 1, 2005, Pixar earned $122.0 million, or $0.99 per fully diluted share on revenues of $233.5 million. This compares to earnings of $86.5 million, or $0.73 per fully diluted share on revenues of $164.6 million for the nine months ended October 2, 2004. "Our performance this quarter highlights the ongoing value of our growing film library," said Pixar CEO Steve Jobs. "Looking forward, the marketing campaign for Cars, our studio's seventh feature film, is revving up as we prepare for its release next June. It is going to take your breath away." The company will discuss its third quarter 2005 earnings results and fiscal year 2005 business outlook during the conference call to be held today, Tuesday, November 8, 2005, at 5:00 p.m. Eastern Time, 2:00 p.m. Pacific Time. The call, hosted by Pixar's Chairman and Chief Executive Officer, Steve Jobs, and Executive Vice President and Chief Financial Officer, Simon Bax, can be accessed by dialing 800-230-1059 (U.S.) or 612-288-0337 (Int'l) approximately 10 minutes prior to the start time. Additionally, a replay of the call will be provided through Tuesday, November 15, 2005 until midnight EST. To access the replay, please call 800-475-6701 (U.S.) or 320-365-3844 (Int'l) and reference the reservation code: 800076. Pixar will also provide live audio streaming of its third quarter 2005 results conference call. The webcast will be accessible through Pixar's web site at http://www.pixar.com/investor/index.html. About Pixar Animation Studios Pixar Animation Studios combines creative and technical artistry to create original stories in the medium of computer animation. Pixar has created six of the most successful and beloved animated films of all time: Toy Story, A Bug's Life, Toy Story 2, Monsters, Inc., Finding Nemo and The Incredibles. Pixar has won 18 Academy Awards(R) and its six films have grossed more than $3.2 billion at the worldwide box office to date. The Northern California studio will release its next film, Cars, on June 9, 2006. This release contains forward-looking information regarding Pixar's targeted release date for Pixar's next film and actual results may differ materially. Factors that could cause delays in the release of the film include, but are not limited to: (1) the uncertainties related to production delays; (2) financing requirements or other marketing or distribution factors; (3) personnel availability; (4) external socioeconomic and political events; and (5) the release dates of competitive films. Please refer to Pixar's 2004 Form 10-K, 2005 Second Quarter Form 10-Q and other filings with the Securities and Exchange Commission, particularly the sections on risks, for important factors that could cause actual results to differ. Pixar Animation Studios Condensed Statements of Income (Unaudited, in thousands, except per share data) Quarter Ended Nine Months Ended October 1, October 2, October 1, October 2, 2005 2004 2005 2004 Revenue: Film $41,528 $40,416 $222,886 $155,221 Software 4,284 4,047 10,607 9,355 Total revenue 45,812 44,463 233,493 164,576 Cost of revenue: 3,587 4,204 35,318 16,545 Gross profit 42,225 40,259 198,175 148,031 Operating expenses: Research and development 2,575 4,218 8,504 11,770 Sales and marketing 1,460 737 2,974 1,744 General and administrative 4,453 3,828 12,748 9,921 Total operating expenses 8,488 8,783 24,226 23,435 Income from operations 33,737 31,476 173,949 124,596 Interest income and other 7,395 3,088 17,954 8,473 Income before income taxes 41,132 34,564 191,903 133,069 Income tax expense 13,724 12,143 69,906 46,521 Net income $27,408 $22,421 $121,997 $86,548 Basic net income per share $ 0.23 $ 0.20 $ 1.03 $ 0.77 Diluted net income per share $ 0.22 $ 0.19 $ 0.99 $ 0.73 Shares used in computing basic net income per share 118,594 113,802 118,087 112,652 Shares used in computing diluted net income per share 123,091 119,344 123,054 118,228 Pixar Animation Studios Condensed Balance Sheets (Unaudited, in thousands) October 1, January 1, 2005 2005 ASSETS Cash and investments $1,043,664 $854,784 Receivables, net 31,511 81,962 Prepaid expenses and other assets 2,955 2,227 Deferred income taxes 75,277 70,424 Property and equipment, net 126,293 125,602 Capitalized film production costs, net 163,762 140,038 Total assets $1,443,462 $1,275,037 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable $1,746 $5,392 Income taxes payable 26,197 14,077 Other accrued liabilities 14,811 26,971 Unearned revenue 13,223 8,502 Total liabilities 55,977 54,942 Shareholders' equity: Common stock 734,522 687,387 Accumulated other comprehensive loss (3,953) (2,211) Retained earnings 656,916 534,919 Total shareholders' equity 1,387,485 1,220,095 Total liabilities and shareholders' equity $1,443,462 $1,275,037 DATASOURCE: Pixar Animation Studios CONTACT: Nils Erdmann, Investor Relations of Pixar Animation Studios, +1-510-752-3374, or John Buckley of Brainerd Communicators for Pixar Animation Studios, +1-212-986-6667 Web site: http://www.pixar.com/ http://www.pixar.com/investor/index.html

Copyright