PIXR Pixar (MM)

EMERYVILLE, Calif., Aug. 4 /PRNewswire-FirstCall/ -- Pixar Animation Studios (NASDAQ:PIXR) today announced financial results for its fiscal second quarter ended July 2, 2005. For the quarter, Pixar reported revenues of $26.4 million and earnings of $12.7 million, or $0.10 per fully diluted share. Revenues for the six months ended July 2, 2005 were $187.7 million, and earnings were $94.6 million, or $0.77 per fully diluted share. "We're very pleased with the overall performance of The Incredibles, which is by far the highest-selling DVD in 2005," said Pixar CEO, Steve Jobs. "Cars is almost completed and is looking fantastic, and we have no doubt that it will be one of our best films to date." Earnings Conference Call Scheduled for 5:30 p.m. EDT -- Please Note Time Change The company will discuss its second quarter 2005 earnings results during a conference call to be held today, Thursday, August 4, 2005 at 5:30 p.m. EDT, 2:30 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 877-777-1973 (U.S.) or 651-291-0900 (Int'l) approximately 10 minutes prior to the start time. A replay of the call will be provided through Thursday, August 11, 2005 until midnight EDT. To access the replay, please call 800-475-6701 (U.S.) or 320-365-3844 (Int'l) and reference the reservation code: 789073. Pixar will also provide live audio streaming of its second 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, 2005 First Quarter Form 10-Q and other filings with the Securities and Exchange Commission, 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) Quarter Ended Six Months Ended July 2, July 3, July 2, July 3, 2005 2004 2005 2004 Revenue: Film $ 23,446 $ 63,713 $ 181,358 $ 114,805 Software 2,991 2,576 6,323 5,308 Total revenue 26,437 66,289 187,681 120,113 Cost of revenue: 4,274 6,437 31,731 12,341 Gross profit 22,163 59,852 155,950 107,772 Operating expenses: Research and development 3,105 4,154 5,929 7,552 Sales and marketing 752 635 1,514 1,007 General and administrative 3,920 3,017 8,295 6,093 Total operating expenses 7,777 7,806 15,738 14,652 Income from operations 14,386 52,046 140,212 93,120 Interest income and other 5,783 2,489 10,559 5,385 Income before income taxes 20,169 54,535 150,771 98,505 Income tax expense 7,467 17,150 56,182 34,378 Net Income $ 12,702 $ 37,385 $ 94,589 $ 64,127 Basic net income per share $ 0.11 $ 0.33 $ 0.80 $ 0.57 Diluted net income per share $ 0.10 $ 0.32 $ 0.77 $ 0.55 Shares used in computing basic net income per share 118,338 112,574 117,833 112,078 Shares used in computing diluted net income per share 123,537 117,974 123,023 117,594 Pixar Animation Studios Condensed Balance Sheets (Unaudited, in thousands) July 2, January 1, 2005 2005 ASSETS Cash and investments $ 901,428 $ 854,784 Receivables, net 149,689 81,962 Prepaid expenses and other assets 3,283 2,227 Deferred income taxes 75,061 70,424 Property and equipment, net 125,863 125,602 Capitalized film production costs, net 147,148 140,038 Total assets $ 1,402,472 $ 1,275,037 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Accounts payable $ 1,700 $ 5,392 Income taxes payable 13,566 14,077 Other accrued liabilities 16,717 26,971 Unearned revenue 10,732 8,502 Total liabilities 42,715 54,942 Shareholders' equity: Common stock 732,995 687,387 Accumulated other comprehensive loss (2,746) (2,211) Retained earnings 629,508 534,919 Total shareholders' equity 1,359,757 1,220,095 Total liabilities and shareholders' equity $ 1,402,472 $ 1,275,037 DATASOURCE: Pixar Animation Studios CONTACT: Nils Erdmann, Investor Relations of Pixar Animation Studios, +1-510-752-3374; or John Buckley of Brainerd Communicators, +1-212-986-6667, for Pixar Animation Studios Web site: http://www.pixar.com/investor/index.html x

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