Revenues for the quarter ended June 30, 2015 from the Company's New Media Segment were $14.6 million compared to $11.5 million during the three months ended June 30, 2014.  This increase was primarily attributable to revenue generated under new licensing agreements and the delivery of newly-created content versus the prior-year period.  In the prior year period, the Company reported certain advertising and talent management revenues in this segment on a "gross" basis rather than on a "net" basis.  For comparative purposes, if the New Media Segment's revenues had been reported on a "net" basis during the quarter ended June 30, 2014, revenues for the quarter ended June 30, 2015 would reflect an increase of 103% compared with the prior-year period.  Segment gross profit, which is not affected by this item, increased to $7.5 million from $2.5 million in the prior-year period, primarily due to higher revenue contributions from newly licensed content. 

For the quarter ended June 30, 2015, DWA posted an adjusted^(b) operating loss of ($1.0) million. The increase in revenues and segment gross profit were offset by an increase in adjusted^(b) general and administrative expenses. Adjusted^(b) general and administrative costs in the current quarter were largely driven by the expansion and growth of the AwesomenessTV business.  Operating loss in the prior-year period included a $7.2 million benefit associated with a reduction in the fair value of the contingent consideration liability related to our acquisition of ATV.  The reported operating loss for the quarter ended June 30, 2015, inclusive of restructuring-related charges, was ($21.8) million.

Adjusted^(b) net loss attributable to DWA for the quarter ended June 30, 2015 was ($11.6) million, or an adjusted^(b) loss of ($0.13) per share. Adjusted net loss reflects higher interest expense in the current quarter attributable to lease financing obligation associated with the Company's headquarters, as well as a decrease in the amount of interest expense that could be capitalized.  The results for the second quarter also included a provision for income taxes of $1.8 million and a $7.1 million expense related to the Company's tax sharing agreement with a former stockholder. This aggregate expense of $8.9 million resulted in the Company's combined effective tax rate of (29.3%) for the second quarter compared to an aggregate expense of $0.9 million, or a combined effective tax rate of (6%), in the prior-year period.  Reported net loss attributable to DWA for the quarter ended June 30, 2015 was ($38.6) million, or ($0.45) per share.

Year to Date Review:

DWA's revenues for the six months ended June 30, 2015 increased 25.2% to $337.3 million compared to $269.5 million in the prior-year period.  The increase was driven by year-over-year growth in the Feature Films, Television Series and Specials and New Media segments.

Revenues for the six months ended June 30, 2015 from the Feature Film Segment increased to $215.8 million, primarily due to higher revenue from current year and prior year theatrical release categories relative to the prior-year period. Segment gross profit increased to $72.7 million for the six months ended June 30, 2015 compared to a loss of $1.5 million in the prior-year period. In the first half of 2014, DWA recorded an impairment charge of $57.1 million related to the performance of Mr. Peabody and Sherman.

Home, contributed feature film revenue of $26.9 million during the six months ended June 30, 2015, primarily from revenues earned in the worldwide theatrical market. 

The Penguins of Madagascar contributed feature film revenue of $10.3 million during the first half of 2015, primarily from the home entertainment market.

How to Train Your Dragon 2 contributed feature film revenue of $59.3 million in the first six months of 2015, primarily from the film's domestic and international pay television windows, as well as the home entertainment market. 

Mr. Peabody and Sherman contributed feature film revenue of $39.9 million in the first six months of 2015, primarily from the film's domestic and international pay television windows and the home entertainment market.

Turbo contributed feature film revenue of $13.4 million in the six months ended June 30, 2015, primarily from the international home entertainment market. 

Library titles contributed feature film revenue of $66.0 million in the first half of 2015.  Library revenues were driven by worldwide television and home entertainment revenues for a number of titles including Rise of the Guardians, How to Train Your Dragon, The Croods, and Madagascar 3.  In addition, during the six months ended June 30, 2015, our Library benefitted from recoveries of $7.8 million from previously established home entertainment reserves related to sales through DWA's former primary theatrical distributor.

Revenues from the Television Series and Specials Segment for the six months ending June 30, 2015 increased 91.3% to $72.5 million, due to a significantly higher number of episodes delivered under our episodic content licensing arrangements.  Segment gross profit also increased to $22.6 million in the first half of 2015, up from $7.0 million in the same period of the prior year.  The increase was primarily driven by favorable amortization rates associated with our episodic series relative to the prior-year period, partially offset by an increase in up-front marketing costs associated with the launch of our new television series.  In addition, gross profit for the six months ended June 30, 2014 was negatively impacted by higher than expected returns of seasonal and newly-released home entertainment product, as well as increased selling costs, related to our Classic Media properties.

Revenues from the Consumer Products Segment in the first half of 2015 decreased to $27.8 million, from $30.7 million in the prior-year period.  The prior-year period benefited from merchandise and licensing revenue associated with How to Train Your Dragon 2.  Segment revenues for each of the six-month periods ended June 30, 2015 and 2014 were primarily driven by licensing arrangements related to a variety of intellectual property rights associated with the characters from our feature films.  For the six months ended June 30, 2015, segment gross profit decreased to $8.4 million, from $13.4 million in the prior year period.  The decrease was largely due to lower revenues and higher costs incurred across the segments business activities.

Revenues for the six months ended June 30, 2015 from the Company's New Media Segment increased to $19.1 million, from $15.6 million in the prior-year period.  This increase was primarily attributable to revenue generated under new licensing agreements and for the delivery of newly-created content as well as revenues generated by Big Frame, which was acquired in April 2014.  In the prior year period, the Company reported certain advertising and talent management revenues in this segment on a "gross" basis rather than on a "net" basis.  For comparative purposes, if the New Media Segment's revenues had been reported on a "net" basis during the six months ended June 30, 2014, revenues for the six months ended June 30, 2015 would reflect an increase of approximately 95% compared with the prior-year period.  Segment gross profit for the first half of 2015, which is not affected by this item, was $9.6 million, compared to $2.4 million during the same period last year, primarily due to higher revenue contributions from newly licensed content and improved margins on content deliveries.