DreamWorks Animation SKG, Inc.: Company Profile and SWOT Analysis by ICDResearch

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									DreamWorks Animation SKG, Inc.

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DreamWorks Animation SKG, Inc.                                                   Financial Snapshot

                                                                                 Operating Performance
Fast Facts
                                    Campanile Building, Glendale, 91201,United   The company reported revenue of US$784.79 million
Headquarters Address
                                    States of America                            during the fiscal year 2010 (2010). The company's
                                                                                 revenue grew at a CAGR of 18.74% during 2006–
Telephone                           + 1 818 6955000
                                                                                 2010, with an annual growth of 8.22% over 2009. In
                                                                                 2010, the company recorded an operating margin of -
Fax                                 + 1 818 6959944                              15.57%, as against 20.90% in 2009.

Website                             www.dreamworksanimation.com
                                                                                 Revenue and Margins
Ticker Symbol, Stock Exchange       DWA, NASDAQ

Number of Employees                 2,100

Fiscal Year End                     December

Revenue (in US$ million)            784.79




SWOT Analysis

Strengths                           Weaknesses                                   Return on Equity

Dominant market position            Dependence on third party                    The company recorded a return on equity (ROE) of
                                                                                 13.55% for 2010, as compared to its peers, The Walt
                                                                                 Disney Company (Ticker: DIS), Viacom Inc. (Ticker:
Improved top-line performance       Seasonality of the business                  VIA.B) and Lions Gate Entertainment Corp. (Ticker:
                                                                                 LGF), which recorded ROEs of 10.56%, 9.20% and -
Strategic alliances                 Unified product portfolio                    36.12% respectively. The company reported a net
                                                                                 profit margin of -15.57% in 2010.
Opportunities                       Threats
                                                                                 Return on Equity
Development in stereoscopic 3D      Animation more uncertain than live
technology                          products
Growth in entertainment and media
                                    Intellectual property risks
industry

Strategic agreements                Preference for lesser children




                                                                                 Financial Leverage

                                                                                 The company reported a debt to equity ratio of 0.00 in
                                                                                 2010, as compared to its peers, The Walt Disney
                                                                                 Company, Viacom Inc. and Lions Gate Entertainment
                                                                                 Corp., which recorded debt to equity ratios of 0.34,
                                                                                 0.73 and 8.05 respectively. In 2010, the company
                                                                                 recorded a debt to capital ratio of 0.00, as compared
                                                                                 to its peers, The Walt Disney Company, Viacom Inc.
                                                                                 and Lions Gate Entertainment Corp., which recorded
                                                                                 debt to capital ratios of 0.22, 0.36 and 0.28
                                                                                 respectively.




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DreamWorks Animation SKG, Inc. - SWOT Profile                                                                            Page 1
DreamWorks Animation SKG, Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
    2.3       Competitive Benchmarking ..................................................................................................................................12
      2.3.1       Market Capitalization .......................................................................................................................................12
      2.3.2       Efficiency ..........................................................................................................................................................13
      2.3.3       Capital Expenditure ..........................................................................................................................................14
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................15
3     Mergers & Acquisitions and Partnerships ........................................................................................... 16
    3.1       M&A and Partnerships Strategy ...........................................................................................................................16
4     Recent Developments ........................................................................................................................... 18
5     SWOT Analysis ...................................................................................................................................... 19
    5.1       SWOT Analysis - Overview ..................................................................................................................................19
    5.2       Strengths ..............................................................................................................................................................19
    5.3       Weaknesses .........................................................................................................................................................19
    5.4       Opportunities ........................................................................................................................................................20
    5.5       Threats .................................................................................................................................................................20
6     DreamWorks Animation SKG, Inc. - Company Statement ......................................
								
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