Pixar Reports Record Results for 2004

Pixar Reports Record Results for 2004 


EMERYVILLE, Calif., Feb. 10  /PRNewswire-FirstCall/ -- Pixar Animation Studios
(NASDAQ:PIXR) today announced financial results for its fourth quarter and
fiscal year ended January 1, 2005.  For the year, Pixar earned $141.7 million,
or $2.38 per fully diluted share, on revenues of $273.5 million.  This compares
to earnings of $124.8 million, or $2.17 per fully diluted share, on revenues of
$262.5 million for the year ended January 3, 2004.

For the quarter, Pixar earned $55.2 million, or $0.91 per fully diluted share,
on revenues of $108.9 million.  This compares to earnings of $83.9 million, or
$1.44 per fully diluted share on revenues of $164.8 million, achieved in the
fourth quarter of 2003.

"The stellar box office performance of The Incredibles, combined with the
continuing success of Finding Nemo on home video, has resulted in our most
profitable year to date," said Pixar CEO Steve Jobs.  "Looking ahead, The
Incredibles' DVD will be the one to own when it hits shelves on March 15."

The company will discuss its fourth quarter and fiscal year 2004 earnings
results during the conference call to be held today, Thursday, February 10,
2005, at 5:00 p.m. EST, 2:00 p.m. PST.  The call, hosted by Pixar's Chairman
and Chief Executive Officer, Steve Jobs, and Executive Vice President and Chief
Financial Officer, Simon Bax, can be accessed by dialing 800-553-5275 (U.S.) or
612-332-0725 (Int'l) approximately 10 minutes prior to the start time.  A
replay of the call will be provided through Monday, February 14, 2005 until
midnight EST.  To access the replay, please call 800-475-6701 (U.S.) or
320-365-3844 (Int'l) and reference the reservation code: 765599.

Pixar also will provide live audio streaming of its fourth quarter and full
year 2004 results conference call.  The webcast will be accessible through
Pixar's web site at http://www.pixar.com/investor/index.html.

About Pixar Animation Studios

Pixar Animation Studios (NASDAQ:PIXR) (http://www.pixar.com/) combines creative
and technical artistry to create original stories in the medium of computer
animation.  Pixar has created six of the most successful and beloved animated
films of all time: Toy Story, A Bug's Life, Toy Story 2, Monsters, Inc.,
Finding Nemo and The Incredibles.  Pixar has won 16 Academy Awards(R) and its
six films have grossed more than $3.2 billion at the worldwide box office to
date. The Northern California studio will release its next film, Cars, on June
9, 2006.

This release contains forward-looking information regarding Pixar's targeted
release date for Pixar's next film and actual results may differ materially. 
Factors that could cause delays in the release of the film include, but are not
limited to: (1) the uncertainties related to production delays; (2) financing
requirements or other marketing or distribution factors; (3) personnel
availability; (4) external socioeconomic and political events; and (5) the
release dates of competitive films.  Please refer to Pixar's 2003 Form 10-K and
2004 Third Quarter Form 10-Q, particularly the sections on risks, for important
factors that could cause actual results to differ.

Note to Editors: Condensed Statements of Income and Balance Sheets to follow.

                         Pixar Animation Studios
                      Condensed Statements of Income
             (Unaudited, in thousands, except per share data)

                                Three Months Ended    Twelve Months Ended
                              January 1,  January 3, January 1,  January 3,
                                   2005        2004       2005        2004
  Revenue:
   Film                         $105,610    $161,345   $260,831   $250,383
   Software                        3,286       3,437     12,641     12,115

      Total revenue              108,896     164,782    273,472    262,498

  Cost of revenue                 13,336      23,014     29,881     38,058

      Gross profit                95,560     141,768    243,591    224,440

  Operating expenses:
   Research and development        5,601       3,325     17,371     15,311
   Sales and marketing               740         653      2,484      2,422
   General and administrative      5,094       2,839     15,015     12,783

      Total operating expenses    11,435       6,817     34,870     30,516

  Income from operations          84,125     134,951    208,721    193,924

   Other income, net               3,946       1,895     12,419     10,517

  Income before income taxes      88,071     136,846    221,140    204,441

   Income tax expense             32,897      52,973     79,418     79,673

  Net income                    $ 55,174    $ 83,873   $141,722   $124,768


  Basic net income per share    $   0.95    $   1.52   $   2.50   $   2.30

  Diluted net income per share  $   0.91    $   1.44   $   2.38   $   2.17


  Shares used in computing
   basic net income per share     58,061      55,338     56,760     54,219

  Shares used in computing
  diluted net income per share    60,746      58,442     59,545     57,422



                         Pixar Animation Studios
                         Condensed Balance Sheets
                        (Unaudited, in thousands)

                                                    January 1,   January 3,
                                                       2005         2004
  ASSETS

  Cash and investments                             $  854,784   $  521,923
  Receivables, net                                     81,962      204,897
  Prepaid expenses and other assets                     2,227        1,047
  Deferred income taxes                                70,424       51,496
  Property and equipment, net                         125,602      115,026
  Capitalized film production costs                   140,038      107,667

      Total assets                                 $1,275,037   $1,002,056


  LIABILITIES AND SHAREHOLDERS' EQUITY

  Liabilities:
   Accounts payable                                $    5,392   $    1,803
   Accrued liabilities                                 26,971       13,007
   Income taxes payable                                14,077       37,595
   Unearned revenue                                     8,502        9,141

      Total liabilities                                54,942       61,546

  Shareholders' equity:
   Common stock                                       687,387      546,999
   Accumulated other comprehensive income (loss)       (2,211)         314
   Retained earnings                                  534,919      393,197
      Total shareholders' equity                    1,220,095      940,510

  Total liabilities and shareholders' equity       $1,275,037   $1,002,056


DATASOURCE: Pixar Animation Studios



CONTACT:  Nils Erdmann, Investor Relations, Pixar Animation Studios,

[phone]; or John Buckley, Brainerd Communicators, [phone], for

Pixar Animation Studios 



Web site:  http://www.pixar.com/investor/index.html

http://www.pixar.com/ 

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