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DISNEY RELEASES YEAR-END EARNINGS

 BURBANK, Calif., Nov. 10 /PRNewswire/ -- The Walt Disney Co. (NYSE: DIS) today reported record revenues and operating income for the fiscal year ended Sept. 30, 1993.
 For the fiscal year, revenues rose to $8,529,220,000, a 14 percent increase over $7,503,896,000 a year ago and operating income increased 20 percent to $1,724,564,000 from $1,435,228,000 for the same period.
 During the fourth quarter, the company recorded a charge of $350 million against income to fully reserve its current receivables and funding commitment to Euro Disney discussed below. Excluding the impact of this charge and the cumulative effect of the accounting changes announced during the third quarter, net income for the year increased 9 percent to $890,035,000, or $1.63 per share, compared to $816,740,000, or $1.52 per share, for the prior-year period.
 For the fiscal year, after reflecting the cumulative effect of the accounting changes ($0.68 per share) and the Euro Disney charge ($0.40 per share) referred to above, reported earnings per share decreased 64 percent to $0.55 from $1.52 reported a year ago, and net income decreased 63 percent to $299,773,000 from $816,740,000.
 For the quarter, revenues were $2,174,627,000, a 5 percent increase over $2,075,087,000 for the comparable prior-year period, but operating income decreased 10 percent to $356,716,000, compared to $395,815,000 for the same period. For the quarter, as a result of the charge noted above and a $0.05 per share negative impact from the new tax law, the company reported a net loss of $77,781,000, or $0.15 per share, compared to net income of $223,738,000, or $0.42 per share, for the prior-year period.
 In a joint statement, Michael D. Eisner, chairman and chief executive officer, and Frank G. Wells, president and chief operating officer, said that they were pleased with the strong annual growth in each business segment despite the soft economy impacting the company's major markets.
 For the fiscal year, revenues for the Theme Parks and Resorts segment increased 4 percent to $3,440,733,000 from $3,306,858,000 and operating income increased 16 percent to $746,945,000 from $643,971,000 a year ago. For the quarter, revenues decreased 6 percent to $933,730,000, compared to $996,231,000 in the prior year and operating income of $190,408,000 for the quarter decreased 11 percent, compared to $213,865,000 generated a year ago.
 Increased operating income for the full year reflected a record number of occupied room nights at the East Coast resort hotels due to the absorption of additional capacity from the opening of the Dixie Landings Resort. Higher current year per capita spending at the domestic theme parks also contributed to the increase.
 Additionally, the comparison to prior year benefited from substantially increased sales of ownership interests at the Disney Vacation Club as well as the prior-year charge arising from the termination of the lease on the Queen Mary.
 Results for the fourth quarter reflected lower theme park attendance and fewer occupied room nights.
 Revenues for the Filmed Entertainment segment rose 18 percent to $3,673,344,000 from $3,115,172,000 for the fiscal year and operating income increased 22 percent to a record $622,190,000 from $508,247,000 a year ago. For the quarter, revenues were up 12 percent to $879,797,000, compared to $784,572,000 in the prior year, but operating income decreased 22 percent for the quarter to $94,999,000 from $121,578,000 a year ago.
 The Filmed Entertainment segment's record revenues and operating income for the fiscal year reflected the spectacular performance of "Aladdin," the studio's most successful feature to date. Additionally, results for the year were driven by the outstanding success of "Beauty and the Beast" and "Pinocchio" in domestic home video and the strong performances of "Beauty and the Beast", "Sister Act" and "The Jungle Book" in international theatrical release. Results also reflected the international home video release of "Beauty and the Beast" and "Cinderella".
 Results for the quarter reflected the outstanding performance of the international home video release of "Beauty and the Beast" and increased television activities. However, results for the company's domestic theatrical and home video units were lower than the prior-year quarter primarily reflecting the very strong fourth quarter in 1992, which benefited from the performance of "Sister Act" in theatrical distribution and three animated sell-through titles in video, including "101 Dalmatians" compared to only one sell-through release in 1993.
 For the fiscal year, revenues for the Consumer Products segment rose 31 percent to $1,415,143,000 from $1,081,866,000 and operating income increased 26 percent to $355,429,000 from $283,010,000. Revenues for the quarter rose 23 percent to a record $361,100,000 from $294,284,000 in the prior year and operating income increased 18 percent for the quarter to a record $71,309,000, compared to $60,372,000 a year earlier.
 Record highs in both revenues and operating income were also achieved for the full year, driven by the strength of standard character and film character merchandise, particularly "Aladdin" and "Beauty and the Beast" and increased domestic publishing and records and audio entertainment activities in the United States in addition to the continued growth of the merchandising businesses in Europe and the Asia Pacific region. Results for the year also reflected the further expansion and higher same store sales at The Disney Stores in the United States.
 Results for the quarter reflected increased standard character merchandise sales, higher revenues from publications and audio entertainment in the United States and increased activities in the Asia Pacific region.
 Euro Disney, its principal lenders, and The Walt Disney Co., are exploring a financial restructuring for Euro Disney. Throughout fiscal 1994, Euro Disney will require significant funding. The Walt Disney Co. has agreed to help fund Euro Disney for a limited period, to afford Euro Disney time to attempt a financial restructuring by spring 1994. Should the financial restructuring not be completed, Euro Disney would face a liquidity problem.
 During the fourth quarter, Euro Disney's operating results were lower than expected due in part to the European recession affecting Euro Disney's largest markets. These operating results and the need for a financial restructuring have created uncertainty regarding the company's ability to collect its current receivables and the funding commitment to Euro Disney. Because of this, the company recorded the $350 million reserve referred to above.
 The company's investment in Euro Disney resulted in a loss of $414,539,000 for the quarter and $514,685,000 for the year, including the charge referred to above, which amounts are net of royalties and other income earned by the company from its investment in Euro Disney.
 Results are as follows:
 THE WALT DISNEY CO.
 Financial Summary
 Quarter Ended Sept. 30,
 1993 1992
 Revenues $2,174,627,000 $2,075,087,000
 Operating income $356,716,000 $395,815,000
 Net income (loss) ($77,781,000) $223,738,000
 Earnings (loss) per share ($0.15) $0.42
 Average shares outstanding 536,015,000 537,810,000
 Fiscal Year Ended Sept. 30,
 1993 1992
 Revenues $8,529,220,000 $7,503,896,000
 Operating income $1,724,564,000 $1,435,228,000
 Income before cumulative
 effect of accounting changes $671,285,000 $816,740,000
 Cumulative effect of
 accounting changes ($371,512,000) ---
 Net income $299,773,000 $816,740,000
 Earnings per share before
 cumulative effect of
 accounting changes $1.23 $1.52
 Cumulative effect of
 accounting changes ($0.68) ---
 Net earnings per share $0.55 $1.52
 Average shares outstanding 544,540,000 536,771,000
 -0- 11/10/93
 /CONTACT: John Dreyer, 818-560-5400, or Tom Deegan, 818-560-1572/
 (DIS)


CO: The Walt Disney Co. ST: California IN: LEI ENT SU: ERN

JL-LM -- LA019 -- 2564 11/10/93 08:03 EST
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Date:Nov 10, 1993
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