LPWire: Disney Announces Lower Fiscal 2002 Results

Disney Announces Lower Fiscal 2002 Results
The Walt Disney Company Announces Lower Than Expected Fiscal 2002 Results Due to Treasure Planet

The Walt Disney Company announced today that its fiscal 2002 earnings would be lower than the amounts released on November 7, due to reduced estimates for the performance of its new animated film, Treasure Planet, which was released on November 27, 2002.

Because the film was released subsequent to the initial earnings statement, but prior to the filing of Disney's annual report on Form 10-K, current accounting rules require an adjustment to the September 30, 2002 book value of the film. This adjustment amounts to $74 million before tax and $47 million or $0.02 per share after tax.

As a result of this revision, as-reported diluted earnings per share for fiscal year 2002 are $0.60 as is shown below:

After the revision for Treasure Planet, fiscal 2002 pro forma earnings per share excluding the $216 million pre-tax investment gain and $34 million pre-tax gain on sale of business was $0.53, compared to the $0.55 reported in the November 7, 2002 earnings release.

Expected 2003 Performance

The Company believes that the lower estimates for Treasure Planet also will likely reduce first quarter 2003 earnings per share by roughly $0.01 per share versus its prior expectations. Nonetheless, the Company currently expects earnings per share for fiscal 2003 as a whole to increase by 25% to 35% compared to the $0.53 per share discussed above.

The financial tables updated to reflect this charge are attached.

FORWARD-LOOKING STATEMENTS

Some of the statements in this press 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. Actual results may differ materially from those expressed or implied. Differences may result from actions taken by the Company, strategic initiatives and actions, as well as from developments beyond the Company's control, including domestic and international economic conditions and political and military developments that may affect travel and leisure businesses; changes in consumer spending patterns and interests that may, among other things, affect the performance of the Company's theatrical and home entertainment releases; developments in the advertising market for broadcast and cable television programming; and changing trends affecting the appeal of branded consumer products. Changes in domestic competitive conditions and technological developments may also affect performance of all significant Company businesses. For more information on factors that may affect future performance, please refer to the discussion of "Forward-Looking Statements" in the Company's most recent annual report on Form 10-K.

--Posted December 4, 2002
Source: Disney Company