DREAMWORKS ANIMATION SKG, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2015

2014

2015

2014

 (in thousands, except per share amounts) 

Revenues

$ 170,782

$ 122,277

$ 337,312

$ 269,518

Operating expenses (income):

Costs of revenues

99,939

75,617

206,104

232,015

Selling and marketing

12,077

13,282

20,552

19,544

General and administrative

80,736

53,228

169,878

98,436

Product development

1,592

611

1,924

1,151

Change in fair value of contingent consideration

-

(7,220)

-

(4,720)

Other operating income

(1,719)

(2,317)

(4,000)

(3,989)

Operating loss

(21,843)

(10,924)

(57,146)

(72,919)

Non-operating income (expense):

Interest expense, net 

(7,564)

(2,484)

(13,898)

(4,257)

Other income (expense), net

2,001

1,853

(3,465)

3,071

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

(7,096)

1,695

(7,121)

2,622

Loss before loss from equity method investees and income
      taxes

(34,502)

(9,860)

(81,630)

(71,483)

Loss from equity method investees

2,775

3,467

9,137

6,727

Loss before income taxes 

(37,277)

(13,327)

(90,767)

(78,210)

Provision (benefit) for income taxes 

1,762

2,601

4,162

(19,866)

Net loss

(39,039)

(15,928)

(94,929)

(58,344)

Less: Net loss attributable to non-controlling interests

(456)

(541)

(1,569)

(21)

Net loss attributable to DreamWorks Animation SKG, Inc.

$ (38,583)

$ (15,387)

$ (93,360)

$ (58,323)

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

Basic and diluted net loss per share 

$     (0.45)

$     (0.18)

$     (1.09)

$     (0.69)

Shares used in computing net loss per share

Basic and diluted

85,732

84,554

85,674

84,520