Disney Revenues, Earnings Up Again For Quarter and Nine Months.BURBANK Burbank, city (1990 pop. 93,643), Los Angeles co., S Calif.; inc. 1911. Tourism and the entertainment industry are central to its economy; several motion-picture studios and television headquarters are here. Burbank's aerospace industry collapsed with the end of the Cold War. , Calif.--(BUSINESS WIRE)--July 22, 1997--The Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co. Tuesday Tuesday: see week. reported increases in revenues, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , net income and earnings per share for both the third quarter and nine months ended June June: see month. 30, 1997. Compared with prior-year pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma amounts, revenues for the quarter increased 2% to $5.2 billion and operating income increased 11% to $1.1 billion. Net income for the quarter increased 18% to $473 million and earnings per share increased 19% to $0.69. Excluding the non-recurring items discussed below, revenues for the nine-month period increased 6% to $17.0 billion and operating income increased 20% to $3.4 billion. Net income for the nine months increased 27% to $1.5 billion and earnings per share increased 27% to $2.15. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. D. Eisner, chairman and chief executive officer, said: "The results for the quarter and year to date demonstrate the continued operating strength of the company. I am particularly pleased with the performance of our Creative Content segment, which is benefiting from improved live-action films and the successful release of `Hercules Hercules, in astronomy Hercules (hûr`kyəlēz'), in astronomy, northern constellation located between Lyra and Corona Borealis. It is traditionally depicted as the hero Hercules in a kneeling position. ,' our latest animated feature. "Our theme parks continue to enjoy a year of record attendance driven by the popularity of the 25th Anniversary celebration at Walt Disney World Noun 1. Walt Disney World - a large amusement park established in 1971 to the southwest of Orlando Orlando - a city in central Florida; site of Walt Disney World . Our cable operations, especially ESPN ESPN Entertainment and Sports Programming Network and The Disney Channel  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , also continue to be strong contributors to the
company's results as we proceed with our worldwide expansion of
those businesses."The company acquired the operations of ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. on Feb. 9, 1996, and completed its final purchase price allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as and determination of related goodwill during the second quarter of this year. To enhance comparability, the operating results for the quarter and nine months ended June 30, 1996, are presented and discussed on a pro forma basis, which assumes the acquisition of ABC and the related final purchase price allocation occurred at the beginning of fiscal 1996. In addition, the discussion of the company's operating results excludes the impact of two non-recurring charges recorded by the company during the second quarter of the prior year, as well as the gain on the sale of KCAL kcal kilocalorie. kcal abbr. kilocalorie kcal kilocalorie. recorded by the company in the first quarter of the current year. Both the prior-year non-recurring charges and the gain on the sale of KCAL are discussed below. Creative Content revenues for the quarter decreased 4% to $2.2 billion and operating income increased 17% to $333 million. For the nine-month period, revenues increased 4% to $8.2 billion and operating income increased 21% to $1.4 billion. Creative Content results for the quarter reflected the successful release of "Hercules," as well as improvements in live-action film results in the domestic theatrical market. The quarter also reflected the strong international theatrical pe theatrical performance of "Ransom ransom, price of redemption demanded by the captor of a person, vessel, or city. In ancient times cities frequently paid ransom to prevent their plundering by captors. The custom of ransoming was formerly sanctioned by law. ," "101 Dalmatians" and "The English 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is Patient" and the home video success of "Toy Story" and "The Hunchback hunchback, abnormal outward curvature of the spine in the thoracic region. It is also known as kyphosis and humpback, and in its severe form a noticeable hump is evident on the back. of Notre Dame Notre Dame IPA: [nɔtʁ dam] is French for Our Lady, referring to the Virgin Mary. In the United States of America, Notre Dame " worldwide and "101 Dalmatians" and "Bambi" domestically. These results were achieved despite difficult international home video comparisons to the prior year, which benefited from the release of "The Lion King," "Sleeping Beauty Sleeping Beauty sleeps for 100 years. [Fr. Fairy Tale, The Sleeping Beauty] See : Enchantment Sleeping Beauty enchanted heroine awakened from century of slumber by prince’s kiss. " and the animated version of "101 Dalmatians." The nine-month period also experienced continued growth in worldwide character merchandise licensing, including "Winnie Winnie could refer to: General
A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of certain development projects. Broadcasting revenues for the quarter increased 5% to $1.6 billion and operating income increased 7% to $337 million. For the nine-month period, revenues increased 6% to $5.0 billion and operating income increased 22% to $1.1 billion. Broadcasting results for the quarter and nine months included strong cable results driven by increased advertising revenues and affiliate fees at ESPN and increased subscribers at The Disney Channel. Both periods also reflected an increase in advertising revenues at the television and radio stations. These increases were partially offset by the impact of lower ratings at the television network. The nine-month period also benefited from significant reductions in program amortization and other costs attributable to the acquisition, primarily at the television network. Theme Parks and Resorts posted record results. Revenues for the quarter increased 10% to $1.4 billion and operating income grew 11% to $390 million. For the nine months, revenues increased 13% to $3.7 billion and operating income rose 16% to $864 million. Theme Parks and Resorts results for the quarter and nine months reflected record attendance levels and increased occupied room nights at Walt Disney World. Attendance gains were driven primarily by increased domestic tourist visitation VISITATION. The act of examining into the affairs of a corporation. 2. The power of visitation is applicable only to ecclesiastical and eleemosynary corporations. 1 Bl. Com. 480; 2 Kid on Corp. 174. at Walt Disney World. Increased occupied room nights reflected higher occupancy for the nine months as well as increased available rooms at Disney's BoardWalk Resort Disney's BoardWalk Resort is a hotel at the Walt Disney World Resort that opened in 1996. It is more commonly referred to as Disney's BoardWalk Inn and Disney's BoardWalk Villas. The location of it is between Epcot and Disney-MGM Studios. , which opened during the fourth quarter of the prior year. Results at Walt Disney World also reflected increased guest spending throughout the property. On an as reported basis, revenues for the company during the quarter increased 2% to $5.2 billion and operating income increased 11% to $1.1 billion. Net income increased 17% to $473 million and earnings per share increased 17% to $0.69. For the nine-month period, excluding the prior-year non-recurring items and the KCAL gain, revenues increased 26% to $17.0 billion and operating income increased 35% to $3.4 billion. Net income increased 25% to $1.5 billion and earnings per share increased 9% to $2.15. Results for the nine months of the current year include a full period of ABC's See Win abc's, MSW abc's, XL abc's, DOS abc's and PKZIP abc's. results and reflected significant increases in amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , interest expense, the effective income tax rate and shares outstanding due to the acquisition. During the first quarter, the company sold KCAL, a Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. television station, which resulted in a pre-tax gain of $135 million. For the nine-month period, the gain on the sale of KCAL increased net income from $1.5 billion to $1.6 billion and earnings per share from $2.15 to $2.26. During the second quarter of the prior year, the company recorded two non-recurring charges consisting of a $300 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to the implementation of Statement of Financial Accounting Standards No. 121 and a $225 million charge for costs related to the acquisition of ABC. These prior-year non-recurring charges reduced as reported net income from $1.2 billion to $878 million and reduced as reported earnings per share from $1.98 to $1.47 for the prior-year nine months. -0- Note to Editors: The company makes available its quarterly earnings releases, annual report to shareholders, fact book and SEC filings on its Investor Relations Investor relations The process by which the corporation communicates with its investors. Web site located at http://www.disney.com/investors -0-
The Walt Disney Co.
Consolidated Statements of Income
For the Quarter Ended June 30
(Unaudited; in millions, except per-share data)
1997 1996 1996
(Pro Forma) (As Reported)
Revenues $ 5,194 $ 5,087 $ 5,087
Costs and expenses/a (4,134) (4,136) (4,131)
Operating income 1,060 951 956
Corporate activities and other (69) (66) (66)
Net interest expense (185) (171) (171)
Income before income taxes 806 714 719
Income taxes (333) (313) (313)
Net income $ 473 $ 401 $ 406
Earnings per share $ 0.69 $ 0.58 $ 0.59
Average number of common
and common equivalent
shares outstanding 688 691 691
(a) Pro forma 1996 amounts reflect the final purchase accounting
valuation related to the assets and liabilities acquired from
ABC, which was completed in the second quarter of FY 1997.
Consolidated Statements of Income
For the Nine Months Ended June 30
(Unaudited; in millions, except per-share data)
1997 1996 1996
(Pro Forma) (As Reported)
Revenues $ 16,953 $ 15,966 $ 13,467
Costs and expenses (13,602) (13,174) (10,992)
Gain on sale of KCAL 135 -- --
Accounting change -- (300) (300)
Operating income 3,486 2,492 2,175
Corporate activities and other (267) (188) (248)
Net interest expense (540) (527) (267)
Acquisition-related costs -- -- (225)
Income before income taxes 2,679 1,777 1,435
Income taxes (1,124) (795) (557)
Net income $ 1,555 $ 982 $ 878
Earnings per share $ 2.26 $ 1.42 $ 1.47
Net income excluding
non-recurring items/a $ 1,475 $ 1,165 $ 1,180
Earnings per share excluding
non-recurring items/a $ 2.15 $ 1.69 $ 1.98
Average number of common
and common equivalent
shares outstanding 687 690 596
(a) The 1997 amount excludes the gain that the company recognized as
a result of the sale of its investment in KCAL ($135). The 1996
amounts exclude the impact of charges related to the SFAS 121
accounting change ($300) and acquisition-related costs ($225).
Segment Results
For the Quarter Ended June 30
(Unaudited; in millions)
1997 1996 % 1996
(Pro Forma) Change (As Reported)
Revenues:
Creative Content $ 2,216 $ 2,306 (4)% $ 2,306
Broadcasting 1,609 1,532 5% 1,532
Theme Parks & Resorts 1,369 1,249 10% 1,249
Total $ 5,194 $ 5,087 2% $ 5,087
Operating Income:/a/b
Creative Content $ 333 $ 285 17% $ 285
Broadcasting 337 316 7% 321
Theme Parks & Resorts 390 350 11% 350
Total operating income $ 1,060 $ 951 11% $ 956
(a) Includes depreciation and amortization (excluding film costs) of:
Creative Content $ 50 $ 63
Broadcasting 129 128
Theme Parks & Resorts 120 105
$ 299 $ 296
(b) 1997, 1996 pro forma and 1996 as reported amounts include
amortization of acquisition-related intangibles of $103,
$119 and $114, respectively.
Segment Results
For the Nine Months Ended June 30
(Unaudited; in millions)
1997 1996 % 1996
(Pro Forma) Change (As Reported)
Revenues:
Creative Content $ 8,201 $ 7,914 4% $ 7,466
Broadcasting 5,030 4,754 6% 2,703
Theme Parks & Resorts 3,722 3,298 13% 3,298
Total $ 16,953 $ 15,966 6% $ 13,467
Operating Income:/a/b
Creative Content $ 1,434 $ 1,183 21% $ 1,189
Broadcasting 1,053 861 22% 538
Theme Parks & Resorts 864 748 16% 748
3,351 2,792 20% 2,475
Gain on sale of KCAL 135 -- n/m --
Accounting change
for SFAS 121 -- (300) n/m (300)
Total operating income $ 3,486 $ 2,492 40% $ 2,175
(a) Includes depreciation and amortization (excluding film costs) of:
Creative Content $ 168 $ 175
Broadcasting 385 386
Theme Parks & Resorts 307 279
$ 860 $ 840
(b) 1997 and 1996 pro forma amounts include amortization of acquisition-
related intangibles of $337 and $357, respectively.
CONTACT: The Walt Disney Co., Burbank John Dreyer John Louis Emil Dreyer (February 13 1852 – September 14 1926) was a Danish-Irish astronomer. He was born Johan Ludvig Emil Dreyer in Copenhagen. In 1874, at the age of 22, he went to Ireland to work as the assistant of Lord Rosse (the son and successor of the , 818/560-5300 |
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