DreamWorks Animation SKG Q4 2008 Earnings Call Transcript

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2009-02-24 15:34:17.0

Tags: DreamWorks SKG, Call Transcript, Earnings, Amortization, Crum, Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) First we go to the line of Drew Crum with Stifel Nicolaus.

Drew Crum - Stifel Nicolaus

Thanks. Good afternoon, everyone. Just a question on Monsters Versus Aliens -- Jeffrey, any update on presumed ticket premiums for the film, and just give us a sense as to your expectations for P&A spend -- is it going to be consistent with the notional model?

Second question, I just want to get a sense as to the catalog sales on Madagascar, given the sequel release in the fourth quarter. And then finally, just a housekeeping item -- expectations for D&A in 2009? Thanks.

Jeffrey Katzenberg

Okay, so let me see here -- P&A spend in line with previous releases, so no change on that. In terms of pricing on 3D, we still anticipate that in most of the market, not just domestically but also internationally, there will be a meaningful up-charge. We expect it to be in the $5 for the domestic market.

And then Ann, do you want to talk about the Mad catalog sales?

Ann Daly

Madagascar 1 catalog sales were very strong for us, primarily in the fourth quarter around the theatrical release. There were programs that were in place in the first quarter but most of the volume came last year with the theatrical release.

Drew Crum - Stifel Nicolaus

Have you seen any pick-up since you released the sequel?

Ann Daly

On the catalog?

Drew Crum - Stifel Nicolaus

Yes.

Ann Daly

Yes, we have.

Jeffrey Katzenberg

Good, and then the last one here -- somebody was scrambling.

Rich Sullivan

Drew, you asked a question about --

Drew Crum - Stifel Nicolaus

Depreciation and amortization for 2009.

Rich Sullivan

Yeah, I assume that when you asked that question, you’re not talking about film amortization, you’re talking about non-film amortization?

Drew Crum - Stifel Nicolaus

Correct.

Rich Sullivan

Mostly it’s just the building and the capital expenditures. Though while we are doing some campus expansion, which will start to hit, it should be fairly consistent year over year.

Drew Crum - Stifel Nicolaus

Okay. Thanks, guys.

Operator

Next we turn to the line of Michael Morris with UBS. Please go ahead.

Michael Morris - UBS

Thank you. You referenced the DVD sales of Madagascar 2 at about 5 million units through last weekend. Can you share how that compares with another film, say Kung Fu Panda, through the same period?

 

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