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The Walt Disney Company Reports Fourth Quarter And Full Year Earnings For Fiscal 2013

Management believes certain statements in this earnings release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management’s views and assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake any obligation to update these statements.

Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), as well as from developments beyond the Company’s control, including:

  • changes in domestic and global economic conditions, competitive conditions and consumer preferences;
  • adverse weather conditions or natural disasters;
  • health concerns;
  • international, political, or military developments; and
  • technological developments.

Such developments may affect travel and leisure businesses generally and may, among other things, affect:

  • the performance of the Company’s theatrical and home entertainment releases;
  • the advertising market for broadcast and cable television programming;
  • expenses of providing medical and pension benefits;
  • demand for our products; and
  • performance of some or all company businesses either directly or through their impact on those who distribute our products.

Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended September 28, 2013 under Item 1A, “Risk Factors,” and subsequent reports.

 

THE WALT DISNEY COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited; in millions, except per share data)

     
Quarter Ended Year Ended

September 28,2013

   

September 29,2012

September 28,2013

   

September 29,2012

Revenues $ 11,568 $ 10,782 $ 45,041 $ 42,278
Costs and expenses (9,409 ) (8,758 ) (35,591 ) (33,415 )
Restructuring and impairment charges (93 ) (49 ) (214 ) (100 )
Other income/(expense), net 23 55 (69 ) 239
Net interest expense (26 ) (91 ) (235 ) (369 )
Equity in the income of investees   161     175     688     627  
Income before income taxes 2,224 2,114 9,620 9,260
Income taxes   (681 )   (724 )   (2,984 )   (3,087 )
Net income 1,543 1,390 6,636 6,173
Less: Net income attributable to noncontrolling interests   (149 )   (146 )   (500 )   (491 )
Net income attributable to The Walt Disney Company (Disney) $ 1,394   $ 1,244   $ 6,136   $ 5,682  
 
Earnings per share attributable to Disney:
Diluted $ 0.77   $ 0.68   $ 3.38   $ 3.13  
Basic $ 0.78   $ 0.69   $ 3.42   $ 3.17  
 
Weighted average number of common and common equivalent shares outstanding:
Diluted   1,805     1,817     1,813     1,818  
 
Basic   1,786     1,793     1,792     1,794  
 

THE WALT DISNEY COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited; in millions, except per share data)

     

September 28,2013

September 29,2012

ASSETS
Current assets
Cash and cash equivalents $ 3,931 $ 3,387
Receivables 6,967 6,540
Inventories 1,487 1,537
Television costs and advances 634 676
Deferred income taxes 485 765
Other current assets   605     804  
Total current assets 14,109 13,709
Film and television costs 4,783 4,541
Investments 2,849 2,723
Parks, resorts and other property
Attractions, buildings and equipment 41,192 38,582
Accumulated depreciation   (22,459 )   (20,687 )
18,733 17,895
Projects in progress 2,476 2,453
Land   1,171     1,164  
22,380 21,512
Intangible assets, net 7,370 5,015
Goodwill 27,324 25,110
Other assets   2,426     2,288  
Total assets $ 81,241   $ 74,898  
 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other accrued liabilities $ 6,803 $ 6,393
Current portion of borrowings 1,512 3,614
Unearned royalties and other advances   3,389     2,806  
Total current liabilities 11,704 12,813
 
Borrowings 12,776 10,697
Deferred income taxes 4,050 2,251
Other long-term liabilities 4,561 7,179
Commitments and contingencies
Equity
Preferred stock, $.01 par valueAuthorized – 100 million shares, Issued – none
Common stock, $.01 par valueAuthorized – 4.6 billion shares, Issued – 2.8 billion shares 33,440 31,731
Retained earnings 47,758 42,965
Accumulated other comprehensive loss   (1,187 )   (3,266 )
80,011 71,430
Treasury stock, at cost, 1.0 billion shares   (34,582 )   (31,671 )
Total Disney Shareholders' equity 45,429 39,759
Noncontrolling interests   2,721     2,199  
Total equity   48,150     41,958  
Total liabilities and equity $ 81,241   $ 74,898  
 
 

THE WALT DISNEY COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited; in millions)

 
Year Ended

September 28,2013

   

September 29,2012

OPERATING ACTIVITIES
Net income $ 6,636 $ 6,173
Depreciation and amortization 2,192 1,987
Gains on dispositions and acquisitions (252 ) (184 )
Deferred income taxes 92 472
Equity in the income of investees (688 ) (627 )
Cash distributions received from equity investees 694 663
Net change in film and television costs and advances (49 ) (52 )
Equity-based compensation 402 408
Other 322 217
Changes in operating assets and liabilities:
Receivables (374 ) (108 )
Inventories 51 18
Other assets (30 ) (151 )
Accounts payable and other accrued liabilities 367 (608 )
Income taxes   89     (242 )
Cash provided by operations   9,452     7,966  
 
INVESTING ACTIVITIES
Investments in parks, resorts and other property (2,796 ) (3,784 )
Proceeds from dispositions 397 15
Acquisitions (2,443 ) (1,088 )
Other   166     98  
Cash used in investing activities   (4,676 )   (4,759 )
 
FINANCING ACTIVITIES
Commercial paper borrowings, net (2,050 ) 467
Borrowings 3,931 3,779
Reduction of borrowings (1,502 ) (3,822 )
Dividends (1,324 ) (1,076 )
Repurchases of common stock (4,087 ) (3,015 )
Proceeds from exercise of stock options 587 1,008
Other   231     (326 )
Cash used in financing activities   (4,214 )   (2,985 )
 
Impact of exchange rates on cash and cash equivalents   (18 )   (20 )
 
Increase in cash and cash equivalents 544 202
Cash and cash equivalents, beginning of year   3,387     3,185  
Cash and cash equivalents, end of year $ 3,931   $ 3,387  
 




Stock quotes in this article: DIS 

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