LPWire: The Walt Disney Company Reports Earnings for the Quarter and Nine Months Ended June 30, 2002, - LaughingPlace.com: Disney World, Disneyland and More


The Walt Disney Company
AS-REPORTED CONSOLIDATED STATEMENTS OF INCOME
(unaudited; in millions, except per share data)

Three Months Nine Months
Ended June 30 Ended June 30
2002 2001 2002 2001
Revenues $ 5,795 $ 5,960 $ 18,667 $ 19,386
Costs and expenses (5,043) (4,932) (16,661) (16,292)
Amortization of intangible assets (9) (145) (14) (622)
Gain on sale of business 34 -- 34 22
Net interest expense and other (185) (80) (288) (287)
Equity in the income of investees 44 86 163 234
Restructuring and impairment charges -- (138) -- (1,328)
Income before income taxes, minority interests and the cumulative effect of accounting changes 636 751 1,901 1,113
Income taxes (253) (339) (757) (963)
Minority interests (19) (20) (83) (83)
Income before the cumulative effect of accounting changes 364 392 1,061 67
Cumulative effect of accounting changes:
Film accounting -- -- -- (228)
Derivative accounting -- -- -- (50)
Net income (loss) $ 364 $ 392 $ 1,061 $ (211)
Earnings (loss) attributed to:
Disney common stock $ 364 $ 392 $ 1,061 $ (94)
Internet Group common stock -- -- -- (117)
$ 364 $ 392 $ 1,061 $ (211)
Earnings (loss) per share before the cumulative effect of accounting changes attributed to:
Disney common stock (basic and diluted) $ 0.18 $ 0.19 $ 0.52 $ 0.09
Internet Group common stock (basic and diluted) $ n/a $ n/a $ n/a $ (2.72)
Earnings (loss) per share including the cumulative effect of accounting changes attributed to:
Disney common stock: (1)
Diluted $ 0.18 $ 0.19 $ 0.52 $ (0.04)
Basic $ 0.18 $ 0.19 $ 0.52 $ (0.05)
Internet Group common stock (basic and diluted) $ n/a $ n/a $ n/a $ (2.72)
Earnings attributed to Disney common stock before the cumulative effect of accounting changes adjusted for the impact of SFAS 142 in fiscal 2001 $ 364 $ 527 $ 1,061 $ 703
Earnings per share attributed to Disney common stock before the cumulative effect of accounting changes adjusted for the impact of SFAS 142 in fiscal 2001
Diluted $ 0.18 $ 0.25 $ 0.52 $ 0.33
Basic $ 0.18 $ 0.25 $ 0.52 $ 0.34
Average number of common and common equivalent shares outstanding: Disney:
Diluted 2,046 2,107 2,044 2,103
Basic 2,041 2,091 2,040 2,085
Internet Group (basic and diluted) n/a n/a n/a 43
(1) The per share impacts of the film and derivative accounting changes for the nine-month period were ($0.11) and ($0.02), respectively.

 

The Walt Disney Company
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
(unaudited; in millions, except per share data)
Three Months Nine Months
Ended June 30 Ended June 30
2002 2001 2002 2001
Revenues $ 5,795 $ 6,147 $ 18,698 $ 19,883
Costs and expenses (5,043) (5,072) (16,688) (16,606)
Amortization of intangible assets (9) (5) (14) (18)
Gain on sale of business 34 -- 34 22
Net interest expense and other (185) (134) (300) (450)
Equity in the income of investees 44 88 163 241
Restructuring and impairment charges -- (138) -- (466)
Income before income taxes, minority interests and the cumulative effect of accounting changes 636 886 1,893 2,606
Income taxes (253) (343) (754) (1,031)
Minority interests (19) (20) (83) (83)
Income before the cumulative effect of accounting changes 364 523 1,056 1,492
Cumulative effect of accounting changes:
Film accounting -- -- -- (228)
Derivative accounting -- -- -- (50)
Net income $ 364 $ 523 $ 1,056 $ 1,214
Earnings per share before the cumulative effect of accounting changes (basic and diluted) $ 0.18 $ 0.25 $ 0.52 $ 0.71
Earnings per share including the cumulative effect of accounting changes (basic and diluted) (1) $ 0.18 $ 0.25 $ 0.52 $ 0.58
Earnings before the cumulative effect of accounting changes, excluding the investment gain in fiscal 2002, restructuring and impairment charges and gain on the sale of business $ 343 $ 610 $ 899 $ 1,791
Earnings per share before the cumulative effect of accounting changes, excluding the investment gain in fiscal 2002, restructuring and impairment charges and gain on the sale of business:
Diluted $ 0.17 $ 0.29 $ 0.44 $ 0.85
Basic $ 0.17 $ 0.29 $ 0.44 $ 0.86
Average number of common and common equivalent shares outstanding:
Diluted 2,046 2,107 2,044 2,108
Basic 2,041 2,091 2,040 2,090
(1) The per share impacts of the film and derivative accounting changes for the nine-month period were ($0.11) and ($0.02), respectively.

 

The Walt Disney Company
SEGMENT RESULTS
For the Quarter Ended June 30
(unaudited, in millions)

As Reported

Pro Forma %
2002 2001 2002 2001 Change
Revenues:
Media Networks $ 2,126 $ 2,169 $ 2,126 $ 2,350 (10)%
Parks and Resorts 1,847 1,946 1,847 1,946 (5)%
Studio Entertainment 1,365 1,327 1,365 1,327 3 %
Consumer Products 457 518 457 524 (13)%
$ 5,795 $ 5,960 $ 5,795 $ 6,147 (6)%
Segment operating income: (1)
Media Networks $ 288 $ 439 $ 288 $ 483 (40)%
Parks and Resorts 467 560 467 560 (17)%
Studio Entertainment 22 65 22 65 (66)%
Consumer Products 51 58 51 61 (16)%
$ 828 $ 1,122 $ 828 $ 1,169 (29)%
The Company evaluates the performance of its operating segments based on segment operating income. A reconciliation of segment operating income to income before income taxes, minority interests and the cumulative effect of accounting changes is as follows:

As Reported

Pro Forma

2002 2001 2002 2001
Segment operating income $ 828 $ 1,122 $ 828 $ 1,169
Corporate and unallocated shared expenses (76) (94) (76) (94)
Amortization of intangible assets (9) (145) (9) (5)
Gain on sale of business 34 - 34 -
Net interest expense and other (185) (80) (185) (134)
Equity in the income of investees 44 86 44 88
Restructuring and impairment charges - (138) - (138)
Income before income taxes, minority interests and the cumulative effect of accounting changes $ 636 $ 751 $ 636 $ 886
(1) Segment earnings before interest, income taxes, depreciation and amortization (EBITDA) is as follows:
As Reported Pro Forma
2002 2001 2002 2001
Media Networks $ 334 $ 482 $ 334 $ 530
Parks and Resorts 629 731 629 731
Studio Entertainment 35 76 35 76
Consumer Products 66 78 66 81
$ 1,064 $ 1,367 $ 1,064 $ 1,418