DREAMWORKS ANIMATION SKG, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 Three Months Ended 

 Nine Months Ended 

 September 30, 

 September 30, 

2014

2013

2014

2013

 (in thousands, except per share amounts) 

Revenues

$ 180,861

$ 154,549

$ 450,379

$ 502,633

Operating expenses (income):

Costs of revenues

103,719

86,639

335,734

293,406

Selling and marketing

8,790

6,935

28,334

21,128

General and administrative

54,957

45,869

153,393

136,206

Product development

434

455

1,585

2,487

Change in fair value of contingent consideration

(4,955)

-

(9,675)

-

Other operating income

(2,673)

(3,333)

(6,662)

(6,192)

Operating income (loss)

20,589

17,984

(52,330)

55,598

Non-operating income (expense):

Interest (expense) income, net 

(2,840)

(769)

(7,097)

871

Other income, net 

298

2,847

3,369

4,889

(Increase) decrease in income tax benefit payable to former stockholder 

(2,384)

(283)

238

(1,352)

Income (loss) before loss from equity method investees and income taxes

15,663

19,779

(55,820)

60,006

Loss from equity method investees

1,212

2,781

7,939

4,110

Income (loss) before income taxes 

14,451

16,998

(63,759)

55,896

Provision (benefit) for income taxes 

2,587

6,919

(17,279)

17,455

Net income (loss)

11,864

10,079

(46,480)

38,441

Less: Net (loss) income attributable to non-controlling interests

(64)

15

(85)

547

Net income (loss) attributable to DreamWorks Animation SKG, Inc.

$   11,928

$   10,064

$   37,894

Net income (loss) per share of common stock attributable to DreamWorks Animation SKG, Inc.

Basic net income (loss) per share 

$       0.14

$       0.12

$     (0.55)

$       0.45

Diluted net income (loss) per share 

$       0.14

$       0.12

$     (0.55)

$       0.45

Shares used in computing net income (loss) per share

Basic 

84,646

83,631

84,562

83,939

Diluted 

85,845

85,353

84,562

85,041