The studio’s net income of $9.4 million compares to last year’s loss of $21.8 million, with revenues up 50.1% to $220.9 million. That’s well above Wall Street’s projection for $182.1 million. And reported earnings at 3 cents a share beat expectations for a 7 cent loss.
DWA made its disclosures in an SEC filing, without the conventional press release followed by a conference call with analysts.
The report shows that DWA spent $1.2 million in the quarter out of a $17.3 million bonus plan to keep employees while waiting for the deal with Comcast to close, and stay for the following six months.
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The studio adds that it is “unable to estimate a range of possible loss” from two shareholder suits it’s challenging tied to the Comcast sale. Both charge that DWA chief Jeffrey Katzenberg breached his fiduciary duty to shareholders by making a lucrative deal to become a consultant for Comcast after the acquisition a condition for his support.
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“Pursuant to Mr. Katzenberg’s employment agreement, the Company has agreed to indemnify him to the fullest extent permitted by law against any claims or losses arising in connection with his service to the Company or any affiliate,” DWA says.
As for the financials, one reason for the improvement in Q2 is that DWA only had $309,000 in restructuring costs versus $13.3 million in last year’s Q2.
The report shows revenues from feature films up 10.8% to $97.8 million, with a gross profit up 36.9% to $40.1 million.
Most of the increase is due to library sales, meaning films released more than two years before the quarter. Two films from 2014 — How To Train Your Dragon 2 and Mr. Peabody And Sherman joined the category. Films also gained from overseas subscription VOD deals, including to Netflix.
Kung Fu Panda 3, released this past January, contributed $28.0 million to the feature film operating in the quarter.
The Television Series and Specials unit saw gross profits increase 15.1% to $22.1 million on revenues of $71.8 million, up 31.0%.
DWA says that’s mostly due to “a significantly higher number of episodes delivered” for series including Dragons Race To The Edge, Dawn Of The Croods, The Mr. Peabody And Sherman Show, and All Hail King Julien.
Consumer Products tied to Kung Fu Panda and Voltron helped to boost profits 214.3% to $13.2 million with revenues up 95% to $23.4 million.
The New Media segment also fared well with profits up 134.7% to $17.6 million on revenues of $27.6 million, up 89.0%.
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