DreamWorks Animation SKG (DWA)
Q1 2013 Earnings Call
April 30, 2013 4:30 pm ET
Rich Sullivan - Deputy Chief Financial Officer
Jeffrey Katzenberg - Co-Founder, Chief Executive Officer, Director and Chairman of Nominating & Governance Committee
Ann Daly - Chief Operating Officer
Lewis W. Coleman - President, Chief Financial Officer and Director
Benjamin Swinburne - Morgan Stanley, Research Division
Jessica Reif Cohen - BofA Merrill Lynch, Research Division
Barton E. Crockett - Lazard Capital Markets LLC, Research Division
Benjamin E. Mogil - Stifel, Nicolaus & Co., Inc., Research Division
Douglas Creutz - Cowen and Company, LLC, Research Division
Stan Meyers - Piper Jaffray Companies, Research Division
Anthony Wible - Janney Montgomery Scott LLC, Research Division
David W. Miller - B. Riley Caris, Research Division
Vasily Karasyov - Susquehanna Financial Group, LLLP, Research Division
Tuna N. Amobi - S&P Equity Research
Richard Greenfield - BTIG, LLC, Research Division
Michael Corty - Morningstar Inc., Research Division
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I'd now like to turn the conference over to Mr. Rich Sullivan from DreamWorks Animation. Please go ahead.
Great. Thank you, and good afternoon, everyone. Welcome to DreamWorks Animation's First Quarter 2013 Earnings Conference Call. With me today is our Chief Executive Officer, Jeffrey Katzenberg; our Chief Operating Officer, Ann Daly; and our President and Chief Financial Officer, Lew Coleman.
The call will begin with a brief discussion of the quarterly financials disclosed in today's press release, followed by an opportunity for you to ask questions. I'd like to remind everyone that, that press release is available on our website. The web address, www.dreamworksanimation.com.
Before we begin, we need to remind you that certain statements made on this call may constitute forward-looking statements. Forward-looking statements can vary materially from actual results and are subject to a number of risks and uncertainties, including those contained in the company's annual and quarterly reports, as well as in other filings with the SEC. I would encourage all of you to review the risk factors listed in these documents. The company undertakes no obligation to update any of its forward-looking statements.
With that, I'd like to now turn the call over to DreamWorks Animation Chief Executive Officer, Jeffrey Katzenberg. Jeffrey?
Thanks, and good afternoon, everyone. I am happy to report that the first quarter of 2013 was an excellent one for DreamWorks Animation. We delivered earnings that were much stronger than expected, thanks to the fantastic home video results from Rise of the Guardians and Madagascar 3, as well as the performance of our library titles and Classic Media. We also made significant progress on a number of our growth initiatives, which Ann Daly will be discussing shortly.
Most importantly, we achieved blockbuster results at the box office with The Croods. It's great to be back in the home run-hitting business again. The Croods is a huge success on a worldwide basis and will become DreamWorks Animation's next franchise, our sixth in 12 years. It will be DreamWorks Animation's best-performing original film since Kung Fu Panda 5 years ago and our second-best ever. The Croods has reached to date $400 million -- $480 million at the worldwide box office and is well on its way to becoming the #1 movie released during the first 4 months of 2013. According to our distributor, it is on its way to grossing more than $550 million in total at the box office on a worldwide basis. It grossed $43.6 million in its opening weekend domestically, received an A-cinema score and will ultimately deliver an incredibly strong box office multiple of over 4.
Internationally, results from The Croods have been even more spectacular, breaking records across the globe. It is the only film this year to have passed $300 million at the international box office in Russia, Mexico, Indonesia, India and China. It had the biggest opening weekend ever for an original animated film. It opened at #1 in 54 countries and held on to its top ranking in its second and third weekend in half of those territories.
I want to congratulate and thank the team at Fox for a truly outstanding job on their maiden effort in our new partnership. Their world-class distribution expertise, robust infrastructure, global resources have propelled The Croods to success at the global box office.
In particular, I want to thank specifically Jim Gianopulos, Chris Aronson, Tony Sella, Oren Aviv, Paul Hanneman and Tomas Jegeus, as well as the rest of their team for their extraordinary efforts. Clearly, The Croods is a story that has resonated with family audiences around the world. I'm incredibly proud of our amazing directors, Chris Sanders and Kirk DeMicco and, under their creative leadership, we will be moving forward with a sequel for The Croods.
The next big event for the company is a release of Turbo in theaters on July 17. Turbo is a 3D comedy about a snail who dreams of competing in the Indy 500. When he miraculously obtains superspeed and joins forces with a streetwise snail pit crew, Turbo's far-fetched dream doesn't seem so out of reach. It's a completely original film driven by a fantastic filmmaker, David Soren, and we couldn't be more excited to share it with audiences in just a few months. Ryan Reynolds leads our all-star voice cast, which also features Paul Giamatti, Michael Peña, Maya Rudolf, Snoop Dogg and Samuel L. Jackson. This will complete our film slate for 2013.