Pixar Reports First Quarter Financial Results

Pixar Reports First Quarter Financial Results

EMERYVILLE, Calif., May 5 /PRNewswire-FirstCall/ -- Pixar Animation Studios (NASDAQ:PIXR) today announced financial results for its fiscal first quarter ended April 2, 2005. For the quarter, Pixar reported revenues of $161.2 million and earnings of $81.9 million, or $0.67 per diluted share. These results compare to revenues of $53.8 million and earnings of $26.7 million, or $0.23 per diluted share, achieved in the year-ago quarter. These earnings per share calculations reflect the adjusted share count resulting from a 2-for-1 stock split, which took effect April 19, 2005.

"We're off to a terrific start with The Incredibles shaping up to be the best selling DVD of 2005," said Pixar CEO Steve Jobs. "Cars is looking great, and we're also very excited about the ten year anniversary re-release of Toy Story on DVD this Fall."

The company will discuss its first quarter 2005 earnings results during the conference call to be held today, Thursday, May 5, 2005, at 5:00 p.m. EDT, 2:00 p.m. PDT. 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 888-428-4480 (U.S.) or 651-291-5254 (Int'l) approximately 10 minutes prior to the start time. A replay of the call will be provided through Monday, May 9, 2005 until midnight EDT, 9:00 p.m. PDT. To access the replay, please call 800-475-6701 (U.S.) or 320-365-3844 (Int'l) and reference the reservation code: 778313.

Pixar will also provide live audio streaming of its first quarter 2005 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 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 18 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 2004 Form 10-K, particularly the sections on risks, for important factors that could cause actual results to differ.

Pixar Animation Studios Condensed Statements of Income (Unaudited, in thousands, except per share data)

Quarter Ended April 2, April 3, 2005 2004 Revenue: Film $ 157,912 $ 51,092 Software 3,332 2,732

Total revenue 161,244 53,824

Cost of revenue 27,457 5,904

Gross profit 133,787 47,920

Operating expenses: Research and development 2,824 3,398 Sales and marketing 762 372 General and administrative 4,375 3,076

Total operating expenses 7,961 6,846

Income from operations 125,826 41,074

Interest income and other 4,776 2,896

Income before income taxes 130,602 43,970

Income tax expense 48,715 17,228

Net income $ 81,887 $ 26,742

Basic net income per share $ 0.70 $ 0.24

Diluted net income per share $ 0.67 $ 0.23

Shares used in computing basic net income per share 117,328 111,582

Shares used in computing diluted net income per share 122,464 117,214

Pixar Animation Studios Condensed Balance Sheets (Unaudited, in thousands) April 2, January 1, 2005 2005 ASSETS

Cash and investments $ 876,063 $ 854,784 Receivables, net 192,755 81,962 Prepaid expenses and other assets 3,627 2,227 Deferred income taxes 81,115 70,424 Property and equipment, net 124,445 125,602 Capitalized film production costs 132,379 140,038

Total assets $ 1,410,384 $ 1,275,037

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities: Accounts payable $ 1,629 $ 5,392 Other accrued liabilities 16,583 26,971 Income taxes payable 52,946 14,077 Unearned revenue 8,840 8,502

Total liabilities 79,998 54,942

Shareholders' equity: Common stock 717,093 687,387 Accumulated other comprehensive loss (3,513) (2,211) Retained earnings 616,806 534,919 Total shareholders' equity 1,330,386 1,220,095

Total liabilities and shareholders' equity $ 1,410,384 $ 1,275,037

Source: Pixar Animation Studios

CONTACT: Nils Erdmann, Investor Relations, Pixar Animation Studios, +1-510-752-3374; or John Buckley, Brainerd Communicators, +1-212-986-6667

Web site: http://www.pixar.com/

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