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No Magic In The Numbers ...
- Thread starter WDW1974
- Start date
jt04
Well-Known Member
Wow! Only 4% in the "worst economy since the depression".:sohappy:
Holy cow, no wonder there are rumors of expansion on the way to WDW.
I'm impressed!
Kamikaze
Well-Known Member
The thing about Disney as whole is that they are really in a great position.
When things are going well, P&R drives the company.
When they aren't so great, they have such diverse entertainment that can drive the company due to people staying home.
jt04
Well-Known Member
Yes I believe that is true but I am especially impressed by the parks are only down 4 per cent. That is really quite impressive.
Kamikaze
Well-Known Member
Yes it is.
However, I think this (current) quarter is the make-or-break one.
Those vacations were booked before the 'worst' started, and thats not as true for this quarter.
Edit: Make-or-break isn't really fair. I should just say the 'worst.'
TWDC isn't going to fail if this quarter is even atrociously bad.
That 24% drop in operating income for parks and resorts is SHOCKING considering that 1Q contains the October and December holiday breaks. The attendance drop off wasn't that bad during that time frame (though it was off), which the revenue drop would seem to jive with. For a company that has prided itself in how hard and fast it can cut costs, they sure as hell aren't cutting fast enough from a balance sheet standpoint.
EDIT: Some thoughts after gazing at the report more...
Nearly $15 billion in debt and barely $3 billion cash on hand. Revenues are falling fast and they are still taking on more debt. Barring some kind of miracle Disney is going to be in a VERY precarious position by the end of this fiscal year.
ANOTHER EDIT:
Iger claims attendance is up modestly at Parks and Resorts for January. They refuse to give any more numbers besides that claim.
EDIT: Some thoughts after gazing at the report more...
Nearly $15 billion in debt and barely $3 billion cash on hand. Revenues are falling fast and they are still taking on more debt. Barring some kind of miracle Disney is going to be in a VERY precarious position by the end of this fiscal year.
ANOTHER EDIT:
Iger claims attendance is up modestly at Parks and Resorts for January. They refuse to give any more numbers besides that claim.
SirGoofy
Member
A straight male CM at WDW??!??!
Shocking
:lol:
Why do you think I did a CP? It was like shooting fish in a barrel.
:lol:
Kamikaze
Well-Known Member
Yes, I'm sure ATTENDANCE is up... it's the 7 for 4 deal. But that deal has a close to build in loss of 43% of revenue. You've heard about the used car dealer that lost 10 cents on every vehicle? "Oh, we make it up on volume...."
Now - my wife and I are passholders. We're booked for April, and we are going back in November. No "7 for 4" - we're staying at WL and hitting the Signature restaurants, just as we've done for the last four years. If WDW will offer passholders SOMETHING in the way of room discounts (even an unrestricted "pay for 7, get 8"), they will get ALL of them back. They are not going to clean up filling up the All-sports and selling hot dogs.
The buy 4 get 3 deal was not part of this quarter.
He's talking about attendance being up for January, part of Iger's spin of a great big beautiful tomorrow.
Today, we announced our first quarter 2009 results and it should come as little surprise we were challenged across most of our lines of business by what is likely to be the weakest economy in our lifetime. Our diluted net earnings per share for the quarter were $0.45, compared to $0.63 in the prior year period. Revenues declined by 8% while net income dropped by 32%.
This performance reflects two trends. The first is the economic downturn in which consumers and companies both are scaling back expenditures, emphasizing savings over spending. The second is more structural, reflecting increased competition for people's time and the ability of consumers to be more selective in how they consume media. This second trend has had an impact on our broadcast television business and may be having a long-term potential impact on our DVD business.
The combination of these two trends has caused us to examine much of what we do, guided by pragmatism and an appreciation of the advantages afforded to us by the strength of our creativity, our brands, our assets and the integrated way we manage our business. Fundamentally, we remain in a great competitive position, but circumstances require us to be even smarter in day-to-day management.
With respect to the downturn, we are taking numerous steps to mitigate its impact. These efforts are companywide, but each business segment is adjusting according to its own conditions and needs.
We will continue to look for ways to adjust our cost base to changes in economic demand and to the structural challenges I addressed earlier, provided these actions do not compromise the quality of our products or the guest experiences we offer. We believe this approach is the right one in order to deliver long-term value to our shareholders.
As we address these challenges, we should never lose sight of the strength and commitment we've brought to launching new and growing existing creative properties that resonate with consumers around the world, create value across the company and are at the core of our competitive advantage.
From the new Jonas Brothers series at Disney Channel to the introduction of our latest Disney Princess in Princess and the Frog, and from the new Disney·Pixar movie Up to the building underway on fantastic new attractions at Disney's California Adventure, there are lots of really great things going on around the Company. ESPN remains the worldwide leader in sports and ABC has some exciting mid-season programs that are about to launch.
As we move forward, our aim is to bolster our creative capabilities, to protect our assets and cash flow and to look for additional opportunities to expand our businesses. It is an incredibly difficult time, but we are clear on our objectives and disciplined in our approach and I'm both proud of you, and grateful to you, for the spirit and commitment you show day after day.
Our strengths remain the creativity of our people, our embrace of innovation and our great belief that nothing substitutes for quality when it comes to setting yourself consistently apart in the eyes of consumers. By staying focused and working together, we believe we are positioning Disney for sustained long-term success.
For further details on this quarter, please go to: Disney.com/investors
Bob
Did anyone besides Walt Disney World not get mentioned?
This performance reflects two trends. The first is the economic downturn in which consumers and companies both are scaling back expenditures, emphasizing savings over spending. The second is more structural, reflecting increased competition for people's time and the ability of consumers to be more selective in how they consume media. This second trend has had an impact on our broadcast television business and may be having a long-term potential impact on our DVD business.
The combination of these two trends has caused us to examine much of what we do, guided by pragmatism and an appreciation of the advantages afforded to us by the strength of our creativity, our brands, our assets and the integrated way we manage our business. Fundamentally, we remain in a great competitive position, but circumstances require us to be even smarter in day-to-day management.
With respect to the downturn, we are taking numerous steps to mitigate its impact. These efforts are companywide, but each business segment is adjusting according to its own conditions and needs.
We will continue to look for ways to adjust our cost base to changes in economic demand and to the structural challenges I addressed earlier, provided these actions do not compromise the quality of our products or the guest experiences we offer. We believe this approach is the right one in order to deliver long-term value to our shareholders.
As we address these challenges, we should never lose sight of the strength and commitment we've brought to launching new and growing existing creative properties that resonate with consumers around the world, create value across the company and are at the core of our competitive advantage.
From the new Jonas Brothers series at Disney Channel to the introduction of our latest Disney Princess in Princess and the Frog, and from the new Disney·Pixar movie Up to the building underway on fantastic new attractions at Disney's California Adventure, there are lots of really great things going on around the Company. ESPN remains the worldwide leader in sports and ABC has some exciting mid-season programs that are about to launch.
As we move forward, our aim is to bolster our creative capabilities, to protect our assets and cash flow and to look for additional opportunities to expand our businesses. It is an incredibly difficult time, but we are clear on our objectives and disciplined in our approach and I'm both proud of you, and grateful to you, for the spirit and commitment you show day after day.
Our strengths remain the creativity of our people, our embrace of innovation and our great belief that nothing substitutes for quality when it comes to setting yourself consistently apart in the eyes of consumers. By staying focused and working together, we believe we are positioning Disney for sustained long-term success.
For further details on this quarter, please go to: Disney.com/investors
Bob
Did anyone besides Walt Disney World not get mentioned?
jt04
Well-Known Member
Maybe it is up for sale?:shrug:
Kamikaze
Well-Known Member
Ah right. Well if people are booking a 4 + 3 when they wouldn't have booked, thats not a loss in revenue.
Always better to get people in the door then sitting at home.
DisneyGigi
Well-Known Member
Not everyone in the U.S. is doing that bad either, if you have a stable job in an area that is not suffering.
One thing that I have wondered though is if the people that are taking advantage of the lower real estate market and are simply putting their money into investments right now? (instead of taking a vacation) I know that is a win/win situation if you can buy a house now because rates and prices are so low. (it is a buyer's market) We postponed our trip for this reason.. but we will still be going just later in the year. A first things first kinda thing.
Just a thought
Numbers will be up for this quarter and looks like the 3rd quarter as well as the buy 4/get 3 deal will be extended until mid August with bookings starting on Monday.
tirian
Well-Known Member
Add me! :wave:
scpergj
Well-Known Member
I was wondering about those numbers myself. Cash flow seems to be more of a problem than anything. I bet that UP might just help that situation out later this year...that, and when Bay Lake Tower actually opens for sales (has it yet??)
Anyone know where I can get a look at Disney's overall financial statement from last year? I'd love to look over their cash-flow numbers...
eddy21
Active Member
Don't forget cory and trevor
WDWFigment
Well-Known Member
For all those "excited" about how well Disney seems to be doing, perhaps you should take a look at this. There are creative means of making things, on their face, not appear so bad.
