The studio had already told the Street to expect bad news including a big writedown. It included a $57.1 million impairment charge tied to Penguins Of Madagascar and Mr. Peabody And Sherman. In addition DreamWorks Animation wrote off $54.6 million for layoffs, and $155.5 million from unreleased projects including B.O.O. and Monkeys Of Mumbai.
All together, DWA had a Q4 net loss of $$263.2 million, down from a $17.2 million profit at the end of 2013, on revenues of $234.2 million, +14.7%.Aanalysts expected revenues of $246.2 million. The net loss at $3.08 a share was lower than predictions for a $3.01 loss.
“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,” CEO Jeffrey Katzenberg says. Calling 2015 “a transitional year,” he adds that he “couldn’t be more confident for the future.”
DWA says that it did not record any revenue from Penguins, released on November 26, because distributor Fox had not yet recouped its costs. Same with home videos of Peabody & Sherman, released October 14.
But How To Train Your Dragon 2 generated sales of $66.0 million mostly from home video.
Revenues for Television Series and Specials increased 7.7% to $50.7 million, but ended up with a loss of $2.6 million from a $7.3 million profit at the end of 2013 due to writedowns.