DREAMWORKS ANIMATION SKG, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 Three Months Ended 

 Nine Months Ended 

 September 30, 

 September 30, 

2015

2014

2015

2014

 (in thousands, except per share amounts) 

Revenues

$ 259,216

$ 180,861

$ 596,528

$ 450,379

Operating expenses (income):

Costs of revenues

151,366

103,719

357,470

335,734

Selling and marketing

10,866

8,790

31,418

28,334

General and administrative

73,118

54,957

242,996

153,393

Product development

1,536

434

3,460

1,585

Change in fair value of contingent consideration

-

(4,955)

-

(9,675)

Other operating income

(856)

(2,673)

(4,856)

(6,662)

Operating income (loss)

23,186

20,589

(33,960)

(52,330)

Non-operating income (expense):

Interest expense, net 

(3,805)

(2,840)

(17,703)

(7,097)

Other (expense) income, net

(6,679)

298

(10,144)

3,369

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

(13,780)

(2,384)

(20,901)

238

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

(1,078)

15,663

(82,708)

(55,820)

Loss from equity method investees

486

1,212

9,623

7,939

(Loss) income before income taxes 

(1,564)

14,451

(92,331)

(63,759)

Provision (benefit) for income taxes 

2,480

2,587

6,642

(17,279)

Net (loss) income

(4,044)

11,864

(98,973)

(46,480)

Less: Net loss attributable to non-controlling interests

(525)

(64)

(2,094)

(85)

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

$   (3,519)

$   11,928

$ (96,879)

$ (46,395)

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

Basic net (loss) income per share

$     (0.04)

$       0.14

$     (1.13)

$     (0.55)

Diluted net (loss) income per share

$     (0.04)

$       0.14

$     (1.13)

$     (0.55)

Shares used in computing net (loss) income per share

Basic

85,827

84,646

85,739

84,562

Diluted

85,827

85,845

85,739

84,562