Reports Record First Quarter EPS of $0.53

RICHMOND, CA --(May 5, 2000)-- Pixar Animation Studios announced financial results for its fiscal first quarter ending April 1, 2000. For the quarter, Pixar posted profits of $26.4 million, or $0.53 per diluted share. These results compare to profits of $900,000, or $0.02 per diluted share, achieved in the year-ago quarter. Revenues for the quarter were $61.0 million, compared with $3.4 million in the year-ago quarter. Pixar is targeting diluted earnings per share of at least $1.25 for fiscal year 2000.

To date, Toy Story 2 has earned box office receipts of $244 million in the U.S. and $479 million worldwide, making it the second highest grossing animated film of all time in the U.S. and the third highest grossing animated film of all time worldwide. Toy Story 2 will be released on video worldwide this October in both VHS and DVD formats.

Pixar also announced that animated feature film director Brad Bird has joined the studio and will begin development on his first Pixar feature this month. Bird most recently directed the critically acclaimed animated feature film The Iron Giant from Warner Bros.

In addition, Pixar announced that Joe Roth, former Chairman of Walt Disney Studios, will be joining the company's Board of Directors.

"Our strong first quarter results reflect Toy Story 2's incredible box office success around the world," said Steve Jobs, Pixar's CEO. "This momentum will continue throughout the year, with the release of the `Buzz Lightyear of Star Command' video this August, the fall launch of the Buzz Lightyear TV series, and the release of Toy Story 2 on video this holiday season. Beyond this year, we currently have four films in production and development, beginning with Monsters, Inc., which is on schedule for a holiday 2001 release."

About Pixar

Pixar Animation Studios combines creative and technical artistry to create original characters and stories in the medium of computer animation. Pixar created and produced the first computer-animated feature film, the Academy Award winning Toy Story, released in 1995. Pixar has since released two more animated features: A Bug's Life, the highest grossing animated film released in 1998, and Toy Story 2, the highest grossing animated film released in 1999. The studio is currently in production on its fourth animated feature, Monsters, Inc., targeted for release in 2001.


Pixar Animation Studios

Condensed Statements of Operations

(in thousands, except per share data)



Quarter Ended
April 1, April 3,
2000 1999
-------- ---------

Revenue:
Software $ 2,739 $ 1,574
Animation services 333 222
Film 57,906 1,645
--------- ---------

Total revenue 60,978 3,441
--------- ---------

Cost of revenue:
Software 140 298
Animation services 189 154
Film 14,846 272
--------- ---------

Total cost of revenue 15,175 724
--------- ---------

Gross profit 45,803 2,717
--------- ---------

Operating expenses:
Research and development 1,413 1,346
Sales and marketing 390 348
General and administrative 1,816 1,387
--------- ---------

Total operating expenses 3,619 3,081
--------- ---------

Income (loss) from
continuing operations 42,184 (364)
Other income, net 2,837 1,865
--------- ---------

Income from continuing
operations before income taxes 45,021 1,501
Income tax expense 18,683 601
--------- ---------

Net income from
continuing operations 26,338 900
Income from discontinued
operations, net of taxes 50 --
--------- ---------

Net income $ 26,388 $ 900
========= =========

Basic net income per share $ 0.56 $ 0.02

Diluted net income per share $ 0.53 $ 0.02

Shares used in computing
basic net income per share 47,005 45,548

Shares used in computing
diluted net income per share 49,927 51,506

Pixar Animation Studios
Condensed Balance Sheets

(in thousands)
April 1, January 1,
2000 2000
--------- ---------

ASSETS

Cash and short-term investments $ 197,598 $ 194,949
Receivables, net 41,636 16,740
Prepaid expenses and other assets 3,025 3,888
Deferred income taxes 34,533 34,533
Property and equipment, net 77,756 60,266
Capitalized film production costs 55,267 64,529
--------- ---------

Total assets $ 409,815 $ 374,905
========= =========

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Accounts payable $ 3,968 $ 458
Income taxes payable 20,724 12,230
Payable to Disney 828 --
Accrued liabilities 11,057 16,475
Unearned revenue 1,530 1,299
--------- ---------

Total liabilities 38,107 30,462
--------- ---------

Shareholders' equity:

Common stock 282,159 281,274
Retained earnings and other 89,549 63,169
--------- ---------

Total shareholders' equity 371,708 344,443
--------- ---------

Total liabilities and shareholders' equity $ 409,815 $ 374,905

 

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