Kamikaze
Well-Known Member
Look at the debt that ANY company carries.
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No Magic In The Numbers ...
- Thread starter WDW1974
- Start date
Look at the debt that ANY company carries.
WDWFigment
Well-Known Member
Yes, companies carry debt. I'm not suggesting that they don't. However, look at the differences in some of these numbers between 2007 and 2008 for Disney. Free Cash Flow, for instance. All I'm saying is that you can't simply look at one number to get an idea of the economic success of any given company. That 4% to which you referred earlier certainly doesn't tell the whole story here.
I'm not convinced. For one, Bob Iger and Tom Staggs refused to provide any kind of data other than the statement that "attendance is up!" for Q2. When one of the investors on the conference call asked pointedly "do you actually think the guests that are booking trips now are actually going to show up in Q3?", Tom Staggs refused to provide any kind of guidance.
When you factor in that just about everyone that shows up right now is generating about 70% of the revenue that they generated last year, it paints a very dismal picture for profitability here in Orlando. Disney seems hell bent on making the turnstyles spin no matter what the loss in operating profit is. With the rest of the company burning through cash like nobody's business, this is a very worrisome stand for the company to make.
They've already started sales on BLT. That aren't doing so hot. The DVC cash cow is out of milk.
Kamikaze
Well-Known Member
No one cares how much debt a company has.
Its like the national debt. Yeah, people bring it up, but in actuality it doesn't make a damn what the number is.
I guess I should have added my
I agree. It's going to be spun and the kool-aid drinking, blinder wearing people will shout about how good it is and how crowded the parks are.
hokielutz
Well-Known Member
I guess I should have added my
I agree. It's going to be spun and the kool-aid drinking, blinder wearing people will shout about how good it is and how crowded the parks are.
Well... lets all hide in a bunker, stick our heads in a sand, don't go to the parks, don't spend money, etc......
Put a fork in them and the company is done.
Seriously though, the company has announced Mgmt fat trimming that they are going to be implementing this month, and with other changes in the non-P&R divisions, we'll see what happens. But at least Disney is still turning a profit, its just 34% smaller than last quarter.
Have some faith that the company will do what they need to continue on.
I'll believe it when I see it
Too little too late. The biggest mistake they made was building up DVC that will be the downfall.
CaptainMichael
Well-Known Member
er...I had to go all of the way back to August at the Blue Sky Disney blog to even find a post mentioning Walt Disney World getting anything (in 2012)...alot of it sounds like pie in the sky.
hokielutz
Well-Known Member
Seriously doubt it. The maintenance fees alone are a guaranteed source of revenue from the DVC group. One can disagree with the principle of creating it because you don't like the looks of the buildings, or think they could have built something else with their capital, or whatever reason you may have. But it is a revenue generator.
Be definitely sure to note that an 8% drop in revenue is incredibly too much for Disney. To protect their shareholders (and only their shareholders)...quality will go down (regardless of what they say)...so they can close that revenue gap.
Iger doesn't answer to guests. He answers to the shareholders. I believe his has little interest in the day-to-day park guests. That's usually why they are, more and more, getting the short end of the stick.
After today's earnings report, I wouldn't expect any near future enhancements or quality upgrades to the Walt Disney World Resort.
If there's more incentives, I think it might bite them in the...toosh. People, MORE THAN EVER, will be expecting the MOST value for their money when they come to a theme park. And I don't believe the value and the quality is there right now.
More rehabs, slow rehabs, rides breaking down, shows getting cut, atmosphere entertainment getting cut, more shops going in to generate revenue.
...etc etc etc.
They're doing it wrong...
Iger doesn't answer to guests. He answers to the shareholders. I believe his has little interest in the day-to-day park guests. That's usually why they are, more and more, getting the short end of the stick.
After today's earnings report, I wouldn't expect any near future enhancements or quality upgrades to the Walt Disney World Resort.
If there's more incentives, I think it might bite them in the...toosh. People, MORE THAN EVER, will be expecting the MOST value for their money when they come to a theme park. And I don't believe the value and the quality is there right now.
More rehabs, slow rehabs, rides breaking down, shows getting cut, atmosphere entertainment getting cut, more shops going in to generate revenue.
...etc etc etc.
They're doing it wrong...
wdwmomof3
Well-Known Member
I have to agree with you. I know several people that would book right now if they would offer a great deal for the time that they can go. I am looking for a discount for our trip too. The money that I save will be spent at Disney, so it is a win-win situation.
Surprisingly, you're one of very few.
Other reports have come out...
With park admission going down...people are cashing in on those deals. And no matter what, less food and less merchandise is being purchased across the board...which really is their bread and butter bonus cash that they roll in on a day to day basis.
I see more and more guests bringing sandwiches in their bag...and completely bypassing the shopping areas in the theme parks.
But for you, this sounds like a great deal, and hope you have fun!
mcjaco
Well-Known Member
I'm assuming he meant the size and scope. DVC has gotten way too big for it's britches.
CaptainMichael
Well-Known Member
Hopefully, they've realized that they've oversaturated the market and will halt all future plans for new DVCs.
MousDad
New Member
The answer is not to trim the park going experience. Okay, so they don't have to add new attractions - I'm good with that. But the cuts to the parks in terms of service/entertainment/acts/venues/dining, etc. are a cop-out. So would be canning front-line CMs.
They're doing one good thing though already, and that is booting management glut. Those are the kind of cuts that need to be made. Cuts outside of the parks. Trim down all TDO corporate staff. Shutter a resort or two. Halt all DVC development across the board. As a last resort, if attendance continues downward, implement the rolling park closure plan (for example, 1 water park open daily during weekdays, DAK & DHS each closed 2 weekdays). Is it better to go to a more crowded park that is offering full service for the same price you've been paying, or to have your choice of 4 "parks lite"?
IF THEY LEAVE EVERYTHING BETWEEN THE GATES ALONE, THEY WILL RIDE OUT THE STORM. Cuts inside the gates only crap all over your brand and admit that you want to crap all over your customers, by making them cover your backside.
Do car companies start leaving parts out on the assembly line when sales are down? Do surgeons only clean out half the clogged arteries if the network stock tumbles? Does a garbage collector only pick up half your trash when he loses 1/3 of his customers to cheaper competition?
On a side note, anyone know how Adventures by Disney is doing? If attendance at the resorts is down (when a family can do it for under 2 grand), I can't imagine AbD is doing great a 3-5 grand per person. Not that I don't think it's a great product, I would love to do it someday.
They're doing one good thing though already, and that is booting management glut. Those are the kind of cuts that need to be made. Cuts outside of the parks. Trim down all TDO corporate staff. Shutter a resort or two. Halt all DVC development across the board. As a last resort, if attendance continues downward, implement the rolling park closure plan (for example, 1 water park open daily during weekdays, DAK & DHS each closed 2 weekdays). Is it better to go to a more crowded park that is offering full service for the same price you've been paying, or to have your choice of 4 "parks lite"?
IF THEY LEAVE EVERYTHING BETWEEN THE GATES ALONE, THEY WILL RIDE OUT THE STORM. Cuts inside the gates only crap all over your brand and admit that you want to crap all over your customers, by making them cover your backside.
Do car companies start leaving parts out on the assembly line when sales are down? Do surgeons only clean out half the clogged arteries if the network stock tumbles? Does a garbage collector only pick up half your trash when he loses 1/3 of his customers to cheaper competition?
On a side note, anyone know how Adventures by Disney is doing? If attendance at the resorts is down (when a family can do it for under 2 grand), I can't imagine AbD is doing great a 3-5 grand per person. Not that I don't think it's a great product, I would love to do it someday.
Brian Noble
Well-Known Member
Interestingly, that's not what the report said about 1Q. From the NY Times article:
Now, granted, "flat" isn't good, because it means "didn't keep pace with inflation/growth targets", but I was very surprised to read this.
WDWFigment
Well-Known Member
I hope you're being facetious, but I get the impression that you aren't. Wall St. and investors certainly do carry about the debt a company carries. Perhaps a year and a half they didn't make as big of a deal about it, but now it has analysts discussing things such as "long term viability." (Let me guess, what analysts say has no bearing on performance?)
wesTcoastY
Member
Ourselves and the world lived high on the hog for many years. Were just paying the price for that. No biggie. We'll get back to the good ole days.....followed by more bad days...cause we never really learn.