DreamWorks Animation SKG Inc. (NASDAQ:DWA) Q4 2015 Earnings Conference Call - Final Transcript

Feb 23, 2016 • 04:30 pm ET


DreamWorks Animation SKG Inc. (NASDAQ:DWA) Q4 2015 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the DreamWorks Animation Quarterly Earnings Call. [Operator Instructions] Later, we'll conduct a question-and-answer session [Operator Instructions].

And I'd now like to turn the conference over to our host, Head of Investor Relations, Jennifer DiGrazia. Please go ahead.

Jennifer DiGrazia

Thank you, operator, and thank you, everyone for joining us for DreamWorks Animation's fourth quarter and full-year 2015 conference call. Joining me on today's call are Chief Executive Officer, Jeffrey Katzenberg, who is joining us from Sydney, Australia; President, Ann Daly; and our Chief Financial Officer, Fazal Merchant. In a moment, I will hand the call over to Jeffrey and Fazal for a brief discussion of the quarterly financials disclosed in today's press release, followed by an opportunity for the analyst community to ask questions.

Before we begin, we need to remind you that certain statements made on this call may constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to be materially different from those expressed or implied by the relevant forward-looking statements.

Factors that could cause actual results to differ materially are described in the Risk Factors section and elsewhere in each of DreamWorks Animation's Annual Reports on Form 10-Q, Quarterly Reports on Form 10-Q -- excuse me, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our other filings with the SEC, which are available at www.sec.gov. Examples of forward-looking statements include, but are not limited to, statements we make related to our business strategy and proposed film slate, the timing and cost of our proposed restructuring plan, our new business initiatives and our outlook for financial results, liquidity and capital resources.

DreamWorks undertakes no obligation to update any of its forward-looking statements. Additionally, in accordance with SEC's Regulation G that requires company's reporting non-GAAP financial measures to reconcile these measures to the most directly comparable GAAP measure, we provide reconciliation schedules for the non-GAAP measures which are attached to our earnings release and posted on our website at www.dreamworksanimation.com.

With that, let me turn the call over to Jeffrey Katzenberg for his comments.

Jeffrey Katzenberg

Thank you, Jennifer. I think that's the fastest I've ever heard that read. 2015 was a transitional year for DreamWorks Animation that began with the announcement of a multiyear strategic plan that was designed to ensure both the creative success of our films and the financial performance of our company over the long term. On the creative side, we appointed new leadership in our feature animation business and committed to a series of changes in our creative process including resizing the business to focus our talent and resources on releasing two feature films per year instead of three.

We also made the decision to have only one theatrical release in 2015. 12 months later, we've made meaningful progress and we're seeing higher levels of creativity, engagement, teamwork and efficiencies. That said,