PIXR Pixar (MM)

Pixar Reports Record Results for 2004 EMERYVILLE, Calif., Feb. 10 /PRNewswire-FirstCall/ -- Pixar Animation Studios (NASDAQ:PIXR) today announced financial results for its fourth quarter and fiscal year ended January 1, 2005. For the year, Pixar earned $141.7 million, or $2.38 per fully diluted share, on revenues of $273.5 million. This compares to earnings of $124.8 million, or $2.17 per fully diluted share, on revenues of $262.5 million for the year ended January 3, 2004. For the quarter, Pixar earned $55.2 million, or $0.91 per fully diluted share, on revenues of $108.9 million. This compares to earnings of $83.9 million, or $1.44 per fully diluted share on revenues of $164.8 million, achieved in the fourth quarter of 2003. "The stellar box office performance of The Incredibles, combined with the continuing success of Finding Nemo on home video, has resulted in our most profitable year to date," said Pixar CEO Steve Jobs. "Looking ahead, The Incredibles' DVD will be the one to own when it hits shelves on March 15." The company will discuss its fourth quarter and fiscal year 2004 earnings results during the conference call to be held today, Thursday, February 10, 2005, at 5:00 p.m. EST, 2:00 p.m. PST. 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 800-553-5275 (U.S.) or 612-332-0725 (Int'l) approximately 10 minutes prior to the start time. A replay of the call will be provided through Monday, February 14, 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: 765599. Pixar also will provide live audio streaming of its fourth quarter and full year 2004 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 (NASDAQ:PIXR) (http://www.pixar.com/) 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 16 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 2003 Form 10-K and 2004 Third Quarter Form 10-Q, particularly the sections on risks, for important factors that could cause actual results to differ. Note to Editors: Condensed Statements of Income and Balance Sheets to follow. Pixar Animation Studios Condensed Statements of Income (Unaudited, in thousands, except per share data) Three Months Ended Twelve Months Ended January 1, January 3, January 1, January 3, 2005 2004 2005 2004 Revenue: Film $105,610 $161,345 $260,831 $250,383 Software 3,286 3,437 12,641 12,115 Total revenue 108,896 164,782 273,472 262,498 Cost of revenue 13,336 23,014 29,881 38,058 Gross profit 95,560 141,768 243,591 224,440 Operating expenses: Research and development 5,601 3,325 17,371 15,311 Sales and marketing 740 653 2,484 2,422 General and administrative 5,094 2,839 15,015 12,783 Total operating expenses 11,435 6,817 34,870 30,516 Income from operations 84,125 134,951 208,721 193,924 Other income, net 3,946 1,895 12,419 10,517 Income before income taxes 88,071 136,846 221,140 204,441 Income tax expense 32,897 52,973 79,418 79,673 Net income $ 55,174 $ 83,873 $141,722 $124,768 Basic net income per share $ 0.95 $ 1.52 $ 2.50 $ 2.30 Diluted net income per share $ 0.91 $ 1.44 $ 2.38 $ 2.17 Shares used in computing basic net income per share 58,061 55,338 56,760 54,219 Shares used in computing diluted net income per share 60,746 58,442 59,545 57,422 Pixar Animation Studios Condensed Balance Sheets (Unaudited, in thousands) January 1, January 3, 2005 2004 ASSETS Cash and investments $ 854,784 $ 521,923 Receivables, net 81,962 204,897 Prepaid expenses and other assets 2,227 1,047 Deferred income taxes 70,424 51,496 Property and equipment, net 125,602 115,026 Capitalized film production costs 140,038 107,667 Total assets $1,275,037 $1,002,056 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable $ 5,392 $ 1,803 Accrued liabilities 26,971 13,007 Income taxes payable 14,077 37,595 Unearned revenue 8,502 9,141 Total liabilities 54,942 61,546 Shareholders' equity: Common stock 687,387 546,999 Accumulated other comprehensive income (loss) (2,211) 314 Retained earnings 534,919 393,197 Total shareholders' equity 1,220,095 940,510 Total liabilities and shareholders' equity $1,275,037 $1,002,056 DATASOURCE: Pixar Animation Studios CONTACT: Nils Erdmann, Investor Relations, Pixar Animation Studios, +1-510-752-3374; or John Buckley, Brainerd Communicators, +1-212-986-6667, for Pixar Animation Studios Web site: http://www.pixar.com/investor/index.html http://www.pixar.com/

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