BURBANK, Ca., February 1, 2008 – In recognition of the company’s strong performance under the leadership of President and Chief Executive Officer Robert A. Iger, The Walt Disney Company (NYSE:DIS) Board of Directors announced today that it had signed him to a new five year contract.
Mr. Iger’s previous contract would have expired on September 30, 2010. The new contract will end on January 31, 2013.
“Bob is a talented and visionary leader, under whom Disney has posted increases in growth and profitability that have consistently exceeded expectations,” said John E. Pepper Jr., chairman of The Walt Disney Company Board of Directors. “We are confident he will continue to lead this extraordinary company and talented management team to new levels of creative and business success.”
Mr. Iger became Disney’s chief executive on September 30, 2005. In the two fiscal years since he assumed his role, the company has posted record revenues, net income and earnings per share. In fiscal 2007, the company’s revenue rose five percent to $35.3 billion. Net income per share for the year excluding certain items was up 24% to $1.92.
Mr. Iger in 2006 oversaw the acquisition of Pixar Animation Studios as part of his strategy of strengthening Disney’s position as the worldwide leader in family entertainment.
Disney has also been widely recognized as an industry pioneer in the groundbreaking use of new technologies as the first major company to make its content available on iTunes, as well as through its own websites and mobile platforms.
Under Mr. Iger, Disney has announced expansion of its highly successful parks and resorts businesses such as cruise ships and vacation clubs, as well as the acquisition of Club Penguin, one of the fastest-growing online virtual worlds for kids. It has created global franchises like High School Musical, Hannah Montana and Cars, driving revenue across multiple Disney businesses. Disney has also increased its presence in international markets, particularly in fast-growing countries like China, India and Russia.
The Board of Directors also approved a new five year contract for Senior Executive Vice President and Chief Financial Officer Thomas O. Staggs to April 1, 2013.
“Tom is an outstanding executive whose advice and counsel I value greatly,” said Mr. Iger. “He has done a great job of strengthening Disney’s balance sheet, its cash flow and overall financial management, helping us to deliver shareholder value.”
For details of the new contracts for Mr. Iger and Mr. Staggs, please see the 8-K now available on Disney’s corporate website (www.corporate.disney.com).
About The Walt Disney Company:
The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with four business segments: media networks, parks and resorts, studio entertainment and consumer products. Disney is a Dow 30 company, had annual revenues of over $35.5 billion in its last fiscal year, and an equity market capitalization of around $59 billion as of January 31, 2008.
Forward Looking Statements
Certain 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 our views and assumptions regarding future events and business performance as of the time the statements are made and we do 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, as well as from developments beyond the Company’s control, including international, political, health concern and military developments and changes in domestic and global economic conditions that may, among other things affect travel and leisure businesses generally. Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2007 and in subsequent reports on Form 10-Q
EPS Reconciliation
This release refers to earnings per share excluding items, which is a measure that is not defined by GAAP. Earnings per share excluding items for fiscal 2007 excluded gains on sales of equity investments in E! Entertainment and Us Weekly, favorable adjustments related to prior year income tax matters, the income or loss from the discontinued ABC Radio business and a charge related to modification of equity-based compensation plans in connection with the ABC Radio transaction. In the prior year, the excluded items were income from the discontinued ABC Radio business, gains on sales of a Spanish cable equity investment and Discover Magazine, favorable adjustments related to prior-year income tax matters and a net gain associated with the completion of the Pixar acquisition. The following table reconciles GAAP earnings per share to earnings per share excluding items for fiscal 2007 and fiscal 2006.
| Year Ended | |||
| Sept. 29, 2007 | Sept. 30, 2006 | Change | |
| Diluted EPS | $2.25 | $1.64 | 37% |
| Exclude: | |||
| Discontinued operations | (0.01) | (0.03) | nm |
| Gains on sales of equity investments and business (1) | (0.31) | (0.02) | nm |
| Equity-based compensation plan modification charge | 0.01 | — | nm |
| Non-taxable gain on deemed termination of Pixar distribution agreement | — | (0.02) | nm |
| Favorable adjustments related to prior-year income tax matters | (0.03) | (0.02) | 50% |
| Impairment of Pixar related sequel projects | — | 0.01 | nm |
| ———— | ———— | ||
| Diluted EPS excluding certain items (2) | $1.92 | $1.55 | 24% |
| (1) | The fiscal 2007 amount includes gains on the sales of our investments in E! Entertainment and Us Weekly. The fiscal 2006 amount includes gains on sales of a Spanish cable equity investment and Discover Magazine |
| (2) | Diluted EPS excluding certain items may not equal the sum of the column due to rounding |