Cash-Strapped Disney

BwanaBob

BwanaBob

Well-Known Member
As I dug around, the folks not returning makes me sick to my stomach. I’ve seen some pretty crappy layoffs and ‘forced retirements’ over the years, but to watch HR filter people... I‘m beyond angry how this company makes such crass and senseless decisions about their people. I’m watching several good leaders and leader-of-leaders about to be forced out.
 
bluetiedye

bluetiedye

Active Member
BwanaBob said:
As I dug around, the folks not returning makes me sick to my stomach. I’ve seen some pretty crappy layoffs and ‘forced retirements’ over the years, but to watch HR filter people... I‘m beyond angry how this company makes such crass and senseless decisions about their people. I’m watching several good leaders and leader-of-leaders about to be forced out.
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I’m so sorry — this all stinks.

Is it Cast Members still on furlough? One of the worst parts of all of this is people won’t get to say “goodbye” to their teams like they traditionally would.
 
BwanaBob

BwanaBob

Well-Known Member
bluetiedye said:
I’m so sorry — this all stinks.

Is it Cast Members still on furlough? One of the worst parts of all of this is people won’t get to say “goodbye” to their teams like they traditionally would.
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Yes. Specific filters, along with gentle guidance from some GMs, that has restricted many from being part of phase 1 & 2 call backs. Those that haven’t received calls to return to work in the parks are likely not going to get called back at this point.
 
T

Thelazer

Well-Known Member
BwanaBob said:
As I dug around, the folks not returning makes me sick to my stomach. I’ve seen some pretty crappy layoffs and ‘forced retirements’ over the years, but to watch HR filter people... I‘m beyond angry how this company makes such crass and senseless decisions about their people. I’m watching several good leaders and leader-of-leaders about to be forced out.
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Clearly you missed what Universal did a couple weeks back.
 
Giss Neric

Giss Neric

Well-Known Member
Does anybody know how are the non-Disney parks are doing? Are they experiencing the same? If something like Disney is in this position, what more others.
 
Kamikaze

Kamikaze

Well-Known Member
Giss Neric said:
Does anybody know how are the non-Disney parks are doing? Are they experiencing the same? If something like Disney is in this position, what more others.
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Do you mean Universal? They started already. Regional amusement parks typically hire by the season. Most of their seasons never got a chance to start, so they don't have anyone to lay off, just hire less for this year.
 
Kamikaze

Kamikaze

Well-Known Member
Lilofan said:
The August 4th Wall Street conference call with Iger and Chapek will be calculated and measured. The numbers will not be pretty but Wall Street, the Disney shareholders and many invested in Disney via mutual funds / 401K will anxiously going to see how both execs navigate through this crisis. It's normal to see bottomfeeders looking to buy a piece of Disney if assets need to be liquidated for Disney to accumulate a better cash position to survive.
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It Is What It Is said:
My understanding of the Covid timeline is that we will be fortunate to have a vaccine in early 2021. I've heard no one talk about this, but my guess is it takes 3 to 6 months, at least, to get 300 million Americans the vaccine. Globally? Much longer.

I bring that up because that's the only way I see things getting back to normal for regular life for all of us and for Disney. A time when people might be willing to go back (or allowed back) to movie theaters, sports arenas, go on cruise ships and no 'Wait Here' in lines at theme parks.

If the August 5 earnings call is seen to be horrible on Wall St, I don't see how the November 2020, February 2021 or May 2021 would be a whole lot better. A tumbling stock price is very concerning. Back in late March, early April when the stock price went down to around 80, I thought Disney was ripe for takeover. But I think the rest of the world was also in shock to what was happening with Covid, so nothing happened. Wall St then started to pretend Covid wasn't a big deal and everyone's stock prices started to climb.

Next spring, when there is a beacon of hope for the world in getting back to normal, Wall St may or may not consider that after an earnings call. If the Disney stock price were to go to where it was at the beginning of the crisis, the chances of Disney being a Disney Disney company go way down. An Apple Disney, Alphabet Disney or an Amazon Disney are starting to seem like a possibility.

Hope and pray that August 5 is a decent day for Iger/Chapek. Otherwise you may have a Cook, Pichai or Bezos calling the shots down the road. That might be better or that could be a whole lot worse for Disney fans (especially Parks fans).

Yeah, when I reread this, it reads doom and gloom. I apologise for that. I would love someone to talk me into putting on rose colored glasses, that my analysis makes no sense.
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Basically Wall Street is just treating the reports right now as a write off for the companies heavily effected. They know they are bad they're just looking for some sort of glimmer on the other side. Expect the big thing to come out of Disney's call to be the DLR plan.
 
Nubs70

Nubs70

Well-Known Member
Kamikaze said:
Basically Wall Street is just treating the reports right now as a write off for the companies heavily effected. They know they are bad they're just looking for some sort of glimmer on the other side. Expect the big thing to come out of Disney's call to be the DLR plan.
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Up to this point, the closures are being looked at as a write off. However, reopening at reduced capacity is revealing the true financial viability of reduced capacity. Ultimately, reduced capacity with the current operational model is not compatible with the cash burn.
 
L

Lilofan

Well-Known Member
Nubs70 said:
Up to this point, the closures are being looked at as a write off. However, reopening at reduced capacity is revealing the true financial viability of reduced capacity. Ultimately, reduced capacity with the current operational model is not compatible with the cash burn.
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Cash burn at $1 billion a month is drastic. Companies will have to look at multiple options to accumulate more cash to survive.
 
Kamikaze

Kamikaze

Well-Known Member
Nubs70 said:
Up to this point, the closures are being looked at as a write off. However, reopening at reduced capacity is revealing the true financial viability of reduced capacity. Ultimately, reduced capacity with the current operational model is not compatible with the cash burn.
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Right, but none of that will be in the upcoming report.
 
R

ridetech939

New Member
Giss Neric said:
Does anybody know how are the non-Disney parks are doing? Are they experiencing the same? If something like Disney is in this position, what more others.
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To be blunt, it's bad out there. Many major regional theme parks are closed 2 days a week on weekdays.
A few small parks have called off the 2020 season altogether. Some water parks are doing well if they are allowed to open.

I could see Disney and Universal closing 2 days a week if things don't pick up, especially once the summer season is over.
 
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Lilofan

Well-Known Member
Kamikaze said:
Right, but none of that will be in the upcoming report.
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It may not be on the quarterly earnings report but when Wall Street does the Q&A with Iger/Chapek in the end of the public earnings call, questions need to be answered. Fyi- they don't get the questions in advance.
 
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mikejs78

mikejs78

Well-Known Member
Lilofan said:
It may not be on the quarterly earnings report but when Wall Street does the Q&A with Iger/Chapek in the end of the public earnings call, questions need to be answered. Fyi- they don't get the questions in advance.
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There's a lot of wiggle room to answering questions.
 

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