DREAMWORKS ANIMATION SKG, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2014

2013

2014

2013

 (in thousands, except per share amounts) 

Revenues

$ 122,277

$ 213,436

$ 269,518

$ 348,084

Costs of revenues 

87,532

133,276

248,221

218,797

Gross profit 

34,745

80,160

21,297

129,287

Product development 

611

1,069

1,151

2,032

Selling, general and administrative expenses 

54,595

49,711

101,774

92,500

Change in fair value of contingent consideration

(7,220)

-

(4,720)

-

Other operating income

(2,317)

(2,859)

(3,989)

(2,859)

Operating (loss) income 

(10,924)

32,239

(72,919)

37,614

Non-operating income (expense):

Interest (expense) income, net 

(2,484)

777

(4,257)

1,640

Other income, net 

1,853

1,050

3,071

2,042

Decrease (increase) in income tax benefit payable to former stockholder 

1,695

(371)

2,622

(1,069)

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

(9,860)

33,695

(71,483)

40,227

Loss from equity method investees

3,467

1,329

6,727

1,329

(Loss) income before income taxes 

(13,327)

32,366

(78,210)

38,898

Provision (benefit) for income taxes 

2,601

10,118

(19,866)

10,536

Net (loss) income

(15,928)

22,248

(58,344)

28,362

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

(541)

(5)

(21)

532

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

$ (15,387)

$   22,253

$ (58,323)

$   27,830

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

Basic net (loss) income per share 

$     (0.18)

$       0.27

$     (0.69)

$       0.33

Diluted net (loss) income per share 

$     (0.18)

$       0.26

$     (0.69)

$       0.33

Shares used in computing net (loss) income per share

Basic 

84,554

83,524

84,520

84,094

Diluted 

84,554

84,533

84,520

84,898