| From: david@mks.com (David Rowley)
Subject: '91 Stockholders Meeting Transcript
Date: 4 May 91 18:17:54 GMT
Organization: Mortice Kern Systems Inc., Waterloo, Ontario, CANADA
The kind folks at the Florida forum on Compuserve have given the okay to
the odd posting of some of their messages. Here's the transcript
of this year's stockholders meeting.
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1991 ANNUAL STOCKHOLDERS MEETING
MARCH 19, 1991
ANAHEIM, CALIFORNIA
MICHAEL EISNER:.
Good morning, ladies and gentlemen, boys and girls.
I am Michael Eisner, chairman of The Walt Disney Company. On behalf
of myself and my colleague, Disney President Frank Wells... welcome
to the Annual Meeting of Shareholders.
This is the third time in five years we've met here in Anaheim, the
heartland of Disney,and we've come a long way in that time.
When we met here in 1987, we were a two-and-a-half-billion dollar
company. When we returned here last year, we were a 4.6-billion
dollar company. Today we are at 5.8-billion and likely to pass $6
billion in the current year. And we have what athletes call "Big
MO," MOMENTUM, on our side.
But while growth is exhilarating, we increasingly get great
enjoyment in other aspects of our jobs, often those things that
bolster our reputation for doing things well.
One occurred this year as a direct result of this scene from our
recent hit, "Honey, I Shrunk The Kids."
[ROLL "HONEY I SHRUNK THE KIDS CLIP"]
As filmmakers intent on telling a story, we know that what we
depict on film frequently has more influence on viewers than we
could ever imagine. In this case, the unintended but happy
consequence was reported to me in a letter from Michael C. Perdue
of San Diego.
Let me read you an excerpt:On August 17, 1990 my
3-and-a-half-year-old son, Jeremy, found his one-year-old brother,
Corey, floating face down in a Jacuzzi. He jumped in and pulled his
brother up.
My six-year-old son, Tristan, pulled Corey out of the water...and
applied mouth-to-mouth resuscitation and then ran for assistance
from me. Due to the quick action of these boys their brother is
fine.
Later, I asked Tristan where he had learned to do mouth-to-mouth...
Without hesitation he replied, 'From watching "Honey, I Shrunk The
Kids.'Thank you, Mr. Eisner, and all at Disney...
As I said earlier, these kinds of things make me especially proud
to be part of The Walt Disney Company.
(PAUSE)
Now it's time to get on with our business.
As always, we have a full agenda. I will be acting as chairman for
the conduct of this meeting. "I now declare the polls open as of
this time and date for all matters to be voted upon at this meeting.
The polls will close upon adjournment of the meeting." I want to
remind those who wish to make any last minute proxy changes that
there is an information desk in the lobby with people available to
assist you. Also available are copies of our first quarterly
earnings report for fiscal 1991 and our current annual report. I
encourage you to read them.
Following is the agenda for this meeting: First, we will present
three resolutions that require the vote of our shareholders. After
that we will hear reports from officers of the company. Then we
will set aside time for questions from shareholders, after which we
will adjourn. Then... where are we going next? ... Why, of course,
we're going to Disneyland ...
Now I'd like to introduce Doris Smith, our Corporate Secretary and
a vice president of the company. I now appoint Doris to act as
secretary of the meeting with responsibility for recording the
proceedings.
Doris, may we have your report on the number of outstanding shares
present today and voting?
[DORIS REPORTS]
Thank you Doris. Based on the report, I rule that a quorum is
present and this meeting is qualified to proceed with the business
matters before us.
Today's meeting has been duly called and is being conducted in
conformity with the law and our own articles of incorporation and
our by-laws. Kevin Schaffels has been appointed by the board to act
as the inspector of elections. You have heard the tally of the
shares present today, either in person or by proxy, and that the
vote has been tabulated. We will proceed with the propositions
before us.
The first order of business is the election of four members of the
board of directors, each to hold office for a term of three years
and until a successor has been elected and qualified.
As you know, several years ago shareholders voted to reincorporate
in the state of Delaware. As a part of that reincorporation, the
company established a classified board of directors serving
staggered three-year terms. That is why our entire board is not
standing for election today.
The nominees for the board are all currently serving as directors
of The Walt Disney Company. They are Stanley P. Gold, Irwin E.
Russell and Raymond L. Watson. I am also a member of this class of
directors and therefore also a nominee.
Stanley Gold is president and chief executive officer of Shamrock
Holdings Incorporated, a company engaged in ranching, real estate,
agriculture and energy businesses and the retailing of audio and
video products. He is also president of TrAY-Foil Investors,
Shamrock Capitol Advisors and chairman of Enterra Corporation.
In addition to his business activities, he is vice chairman of the
board of governors of Hebrew Union College and a trustee of the
Cardozo School of Law in New York, The Center Theatre Group in Los
Angeles and the George C. Marshall Foundation.
Stan, please rise.
Irwin E. Russell is an attorney engaged in private practice who has
long been involved in all areas of the entertainment industry, both
as an attorney and senior business and financial executive. Since
1989, he has served of counsel to the law firm of Rudin, Appel and
Rosenfeld. Before that he was senior partner in the law firm of
Russell and Glickman.
Earlier he was executive vice president, treasurer and a director
of the Wolper organization. In addition, he has worked as an
attorney for the federal government in Washington, D. C. and serves
as an arbitrator for the American Arbitration Association and the
Federal Mediation and Conciliation Service. He has been actively
involved in many civic, charitable and political organizations.
Irwin, please stand.
Raymond L. Watson is chairman of our board's executive committee
and my predecessor as chairman of The Walt Disney Company. He
brought stability to the company during its most tumultuous period
in history, in 1984.
Ray is a nationally recognized architect and a leader in urban
planning and community development. He serves as vice chairman of
the Irvine Company, perhaps the nation's leading land development
company. He also serves as chief executive officer of Ray Watson
Incorporated, a real estate development company. In 1985 and 1986,
he was regent professor in the Graduate School of Management at the
University of California at Irvine. He is a director of Pacific
Mutual Life Insurance Company and a director of Mitchell Energy and
Development Company.
Ray...
As I said previously, I am the last nominee. Directors are elected
by a plurality of the votes cast. If elected, all nominees are
expected to serve until the 1994 annual meeting.
We will now vote on those nominees who have been proposed by the
board of directors ... Stanley Gold, Irwin Russell, Ray Watson and
me.
All those in favor, please signify with the word "Aye."
[PAUSE]
All those opposed, signify with "Nay." Based on the voice vote and
the tally reported by our secretary, Doris Smith, and subject to
the final certification by the inspector of elections, I declare
the nominees re-elected for the ensuing three years.
I want to introduce the rest of our board.
[PAUSE]
Caroline Leonetti Ahmanson has been a Disney director for 15 years.
Mrs. Ahmanson is chairman of the board of Caroline Leonetti
Limited, a woman's center for self improvement. From 1982 to 1984
she was chairman of the Federal Reserve Bank of San Francisco. She
is now chairman emeritus.
She also serves as a director of Fluor Corporation. For more than
20 years, she has been actively involved in numerous civic,
philanthropic and charitable affairs. She has also distinguished
herself as a goodwill ambassador to the people of China for both
our company and our country.
Caroline, please rise and be recognized.
It seems as if every time I introduce our next director who is
obviously very well known to you, there is a smidgen of applause
.... Roy E. Disney ... Well, Roy, your record is intact.
Roy is, of course, the son of Walt's brother, Roy O. Disney, the
co-founder of The Walt Disney Company. Within our organization, he
serves as both vice chairman of the board of directors and head of
the best animation department in the world.
In addition to his roles at Disney, he is chairman of Shamrock
Holdings and its subsidiary, Shamrock Broadcasting. Shamrock also
operates Music Plus and Sound Warehouse, both home entertainment
retail chains.
In addition to all this, he is a sailor of accomplishment. Last
month, his sail boat, the Pyewacket, won an eleven hundred mile
race from Marina del Rey to Puerto Vallarta.
Captain Disney, would you please stand.
Ignacio E. Lozano, Jr. is chairman and Editor-in-Chief of Lozano
Enterprises, which publishes La Opinion, the largest Spanish
language newspaper in California. He has also served as United
States Ambassador to El Salvador. He serves on the boards of
Bankamerica Corporation, Bank of America,Pacific Enterprises, and
Pacific Mutual Life Insurance Company.
In addition to his direct involvement in many public service and
charitable organizations, he has been an outspoken advocate of
Hispanic causes. An alumnus of Notre Dame, he is a member of that
university's board of trustees.
Nacho ...
Sharon Disney Lund ...
As many of you know, Mrs. Lund is a daughter of the late Walt
Disney. She serves as an officer of Retlaw Enterprises. That's
Walter spelled backwards. It is owned by members of the family,
including Sharon. She also serves as a trustee of four educational
institutions: California Institute of the Arts, the Marianne
Frostig Center for Educational Therapy, The Curtis School
Foundation and Landmark West.
Sharon ...
Richard A. Nunis has been a director for the past ten years. He is
the mainstay of our theme parks. Dick is president of Walt Disney
Attractions, which encompasses theme parks and resorts.
Dick has served the company with distinction for the past
thirty-six years, working his way up through the ranks. He is a
member of the board of directors of Sun Bank in Florida and Florida
Progress Corporation.
Dick is a director or trustee of several educational, civic and
charitable organizations, including the University of Central
Florida in Orlando.
Last year, he was named to the Travel and Tourism Advisory Board of
the United States Department of Commerce.
Dick ...
Donn Tatum has served as a senior executive of the company for more
than 35 years. He succeeded Roy O. Disney as chairman and chief
executive officer and served in that capacity from 1971 to 1977.
Later he moved to chairman of the executive committee.
Donn is director of Western Digital Corporation. In addition, he is
a director or trustee of Endowments Incorporated, Bond Portfolio
for Endowments, New Economy Fund and Smallcap World Fund, each a
mutual fund.
Donn, please rise.
The third former chairman of the company serving on our board is E.
Cardon Walker. He has been a director for 31 years and has spent
his entire professional life with the company.
Card became president in 1971, chief executive in 1976 and chairman
in 1980. Three thriving enterprises were established under his
leadership: Epcot Center, The Disney Channel and Tokyo Disneyland.
Card is now in his 53rd year of association with the company. Card,
please stand and be recognized.
Frank Wells is president and chief operating officer of the
company. Frank will be up here later to share the stage with me.
Before joining Disney, he served as president and then vice
chairman of Warner Brothers. Before that he was a partner in the
law firm of Gang, Tyre and Brown. He serves on the board of
trustees of his alma mater, Pomona College, the California
Institute of Technology, the Sundance Institute, The Natural
History Museum of Los Angeles County and the J. Paul Getty Trust.
In addition, he is a member of the services Policy Advisory
Committee, office of the United States Trade Representative.
He has also climbed seven of the highest mountains in the world.
Frank?
Samuel L. Williams has been a partner in the Los Angeles law firm
of Hufstedler, Kaus & Ettinger for more than twenty years. He has
served as president of the state bar of California, president of
the Los Angeles County Bar Association and head of the Board of
Police Commissioners of the City of Los Angeles. He serves on the
board of directors of the Bank of California as well as many
charitable and public service organizations. One of Sam's principal
interests in the past few years is the non-profit Casa Colina
Center for Physical rehabilitation.
Sam?
Gary L. Wilson served as our chief financial officer from 1985
through 1989, when he assumed the new role of principal adviser to
the company for strategic planning and other financial matters.
Last month, Gary was elected co-chairman of Northwest Airlines. He
is a director of NWA Incorporated, Northwest's privately held
parent company. Before joining Disney, he was executive vice
president and chief financial officer of the Marriott Corporation.
He also serves on the board of the Fuqua School of Business at Duke
University.
Gary?
The second proposal calls for approval of the 1990 Stock Incentive
Plan. The board adopted the plan on November 26, 1990, subject to
approval by the company's shareholders at this meeting. The plan
provides long-term incentives and rewards to employees of the
company and its subsidiaries. The 1990 plan provides for the
issuance of up to 8.5 million shares. The plan will be
administered by the Compensation Committee of the board of
directors. Approval of the plan requires the affirmative vote of at
least a majority of the common stock represented in person or by
proxy here today. The board recommends that the stockholders vote
for approval.
All in favor of the resolution, please signify with the word
"Aye."Those opposed? I declare the second resolution of this
annual meeting to have passed, subject to the final count by the
inspector of elections.
The third and last proposal calls for the ratification of the
appointment of Price Waterhouse as the company's independent
accountant, as recommended by the Audit Committee of the board.
The services provided to the company and its subsidiaries include
the examination of the company's financial statements and quarterly
reports and other services related to Securities and Exchange
Commission filings.
Price Waterhouse has served as the company's independent accountant
since its incorporation in 1938 as Walt Disney Productions.
The board recommends a vote "FOR" a continuation of this valued
relationship.
All those in favor? Opposed? I declare the final resolution to
have passed subject to the final count by the inspector of
elections.
At this time I would like to introduce Judson Green, senior vice
president and chief financial officer. He will report on the
financial condition of your company. Judson.
JUDSON:
Thank you Michael. I am very pleased to be here this morning to
review Disney's fiscal year 1990 and first quarter 1991 financial
results.
Before I begin, let me emphasize that although Wall Street seems to
focus inordinately on the near term, we at Disney firmly believe
that we must plan for the long term. You've seen this philosophy
reflected in the 20/20 financial objectives printed in our annual
report -- 20% or greater return on stockholders' equity in any one
year, and 20% annualized earnings per share growth over any rolling
5-year period.
This morning I will summarize year-over-year comparisons, but focus
as well on longer-term, five-year growth comparisons, which we
believe are better barometers of Disney's success.
In fiscal 1990, total revenue grew by over $1 billion to $5.8
billion, an increase of 27% over 1989. In 1990, total revenue was
almost three and one-half times that of 1985.
This represents a five-year compound annualized growth rate of 28%.
Over the past five years, the Filmed Entertainment and Consumer
Products segments have contributed increasing proportions of
revenue. In 1985, 74% of total revenue came from Theme Parks and
Resorts. In 1990, that percentage was only 52% because of
impressive growth in our other two segments.
In 1990, operating income for the company grew by almost $200
million to $1.4 billion -- an increase of 16% over 1989.
In 1990, operating income was over four times its level in 1985,
representing a five-year compound annualized growth rate of 33%.
Looking at operating income by business segment in 1990 as compared
to 1985, you can see that Disney has achieved more balance in the
contribution of profits from each segment.
In 1990, our net income grew by over $100 million to $824 million,
an increase of 17% over 1989. This is almost five times the level
of net income in 1985, and represents a five-year compound growth
rate of 37%.
Earnings per share for 1990 were $6.00, up 18% from 1989.
Again, this is almost five times the level of earnings per share in
1985, representing a five-year compound annualized growth rate of
36%.
This strong financial performance has provided you with a strong
return on stockholders' equity. Disney's return on equity has
ranged between 19% and 27% over the past five years. Our return on
equity in 1990 was almost 50% higher than the return on equity for
U.S. companies as measured by the Standard and Poor's 500 index.
Now let's briefly look at the three business segments individually.
Revenue for the Theme Parks and Resorts grew by over $400 million
to $3 billion, an increase of 16% over 1989. When compared to 1985
revenue, 1990 represents a five-year compound annualized growth
rate of 19%.
Operating income for Theme Parks and Resorts reached $889 million,
a year-over-year increase of 13%. Operating income for this
segment has more than tripled since 1985, representing a five-year
compound growth rate of 28%.
Filmed Entertainment revenue in 1990 grew by over $600 million to
almost $2.3 billion, up 42% from 1989. In 1990, Filmed
Entertainment's revenue was seven times its 1985 level, which
represents an impressive 48% five-year compound annualized growth
rate.
Filmed Entertainment operating income grew to $313 million in 1990,
an increase of 22% over 1989. 1990's operating income was nine
times its 1985 level, reflecting a phenomenal 56% five-year
compound growth rate.
1990 revenue for Consumer Products grew by almost $200 million to
$574 million, a year-over-year increase of 40%.
This is almost five times the revenue level for 1985, and
represents a five-year compound annualized growth rate of 36%.
Consumer Products operating income grew to $223 million in 1990, an
increase of 19% over 1989. This is quadruple the level of operating
income in 1985 and reflects a five-year compound growth rate of
32%.
Now I'd like to spend a minute discussing the challenges of the
current economic environment.
At present, several factors are influencing your company's
operating performance. Nation-wide concerns about the magnitude
and length of the recession have driven the Consumer Confidence
Index to historically low levels. The Financial Service sector
appears to be somewhat in disarray, and despite several Federal
Reserve Board attempts to stimulate the economy, the timing of a
recovery is uncertain.
These factors do affect The Walt Disney Company, because our core
businesses benefit from discretionary consumer spending. As a
result, the near-term financial performance will not be as dramatic
as you have seen in the past. The short term effects of the current
economic climate will likely have a negative effect on current
earnings.
Remember, however, ours is a long-term perspective, and we continue
to invest in new initiatives from which we will benefit throughout
the rest of this decade.
Now let me compare our company's financial performance during the
first quarter of 1991, with that of the first quarter of 1990.
First quarter 1991 total revenue for The Walt Disney Company grew
to almost $1.5 billion, a 16% increase over first quarter 1990.
However, total operating income for the first quarter was basically
flat with the first quarter of the previous year.
First quarter 1991 net income of $170 million showed a 2% decrease
from the first quarter of 1990.
Although first quarter 1991 net income represents a slight
decrease, first quarter 1991 earnings per share increased by 2% to
$1.28 because of fewer shares of stock outstanding.
Within the business segments, first quarter Theme Parks and Resorts
revenue rose 1% from the prior year period to $624 million. Growth
was slowed by a softening in domestic tourism resulting from the
economic concerns I mentioned earlier.
Theme Parks and Resorts operating income for the first quarter
decreased by $25 million to $139 million. In addition to weakening
tourism, another factor affecting operating income was increased
development expense associated with our "Disney Decade" expansion
program.
In the first quarter of 1991, Filmed Entertainment revenue grew by
28% to $647 million. Operating income rose 19% to $92 million.
Consumer Products posted a 34% first quarter revenue increase to
$222 million. Operating income climbed 13% over the prior year
period to $77 million.
In summary, we achieved strong financial results in fiscal 1990 and
are well positioned for long-term success.
Michael and Frank will now tell you about plans for all three of
our business segments. These are the initiatives that will enable
us to meet our 20/20 financial goals for many years to come.
Thank you.
EISNER:
Thank you, Judson...
Each year at this point in the meeting I ask your President and my
partner, Frank Wells, to join me in bringing you up to date on the
state of the business. Please join me now in welcoming Frank to
the stage. Frank...
EISNER CONTINUES:
This year's meeting is taking place about a month later than usual,
which means we're very nearly at the end of our second fiscal '91
quarter.
So rather than concentrate exclusively on 1990, Frank and I will
incorporate some of the more recent highlights in various parts of
the business.
WELLS:
First, let's look at our filmed entertainment business, which has
developed increasing momentum and strength each year since 1984.
In fact, in the first quarter of this year its revenues surpassed
those of our theme parks for the first time in 26 years.
It is true that theme park revenues were blunted during the quarter
by the impending Gulf War and a weakening economy. But that takes
nothing away from the extraordinary performance of our Studios
division, which is staffed by a talent-rich management team led by
Jeffrey Katzenberg and Richard Frank. The Studios' success is
merely a healthy reminder that Disney now has strength and balance
that goes beyond any single business segment. In feature films, we
proceed from a position of industry leadership. 1990 was a very
strong year for The Disney Studios, which for the first time ever
earned number one ratings at the box office both at home and around
the world.
EISNER:
For the second time in three years, Disney topped all the major
studios domestically. "Pretty Woman," with a domestic box office of
more than 178 million dollars, was the second highest grossing film
of the year. Dick Tracy's 104-million-dollars was ninth highest,
helping lift total domestic box office to more than 621 million
dollars.
WELLS:
Other major films for us in 1990 included:"The Little Mermaid," the
all-time box office champ for animated features; "Arachnophobia,"
the first release of our new Hollywood Films label; and"Three Men
and a Little Lady." "The Little Mermaid," incidentally, was also
the best-selling home video release of 1990, and its Academy
Award-winning soundtrack by Alan Mencken and the late Howard
Ashman, also earned Golden Globe Awards. Recently, the
composer/lyricist team received two Grammy Awards when the
soundtrack was named the best recording for children and "Under The
Sea" was named best song written specifically for motion picture or
television.
"The Jungle Book," the second most successful animated reissue in
our history, coupled with other summer films such as "Dick Tracy"
and "Arachnophobia," enabled us to establish a WEEK-END industry
record from August 3rd to 5th last year. On that weekend seventy
four hundred theaters--30 percent of all theaters in the U.S. and
Canada--were showing a Touchstone, Disney or Hollywood Pictures
film.
EISNER:
Our overseas box office results in 1990 were even more impressive.
Our foreign gross of almost 695 million dollars easily topped the
domestic total and made us the number one producer overseas for the
first time ever. Two films, "Pretty Woman" and "Dead Poets
Society," found huge audiences throughout the world...and
especially in Europe.
"Pretty Woman's" year-end worldwide gross was 383 million dollars,
making it number one in the world. By the end of February, "Pretty
Woman's" overseas gross had climbed another 45 million.
Meanwhile, "Dead Poets Society" surpassed its domestic box office
gross with an international take of more than 131 million dollars
through year-end.
WELLS:
1991 will be a year rich in Disney-labeled films for the entire
family.
In January, we released "White Fang," an adaptation of the Jack
London classic that received very favorable reviews and enjoyed
solid attendance.
"Shipwrecked" was released a few weeks ago, also to good reviews
and attendance.
EISNER:
Two other films in the same family category are Walt Disney
Pictures' "Wild Hearts Can't Be Broken," which is scheduled for an
April release, and "The Rocketeer," one of our major summer movies.
"The Rocketeer" comes directly from the pages of the comic books of
the same name and introduces a new hero to the American screen and
to our Disney character lineup.
[RUN "ROCKETEER" TEASER]
WELLS:
Other Disney family films slated for 1991 include the re-release of
"101 Dalmatians" in July and our all-new animated feature for 1991,
"Beauty and The Beast," scheduled for Thanksgiving. "Beauty and The
Beast" will be Disney's 30th full-length animated feature and the
fourth we've produced in the past four years. Like "The Little
Mermaid," it will feature the music of Alan Mencken and the late
Howard Ashman. Here is a very rough early scene from the movie.
It's so rough, some of the scenes are still in pencil test:
[ROLL BEAUTY AND BEAST]
EISNER:
We've got a full slate of pictures from our Touchstone and
Hollywood Picture labels this year. "Oscar," a soon-to-be-released
Touchstone comedy, stars ("Rocky") Sylvester Stallone, as the son
of a Mafia father whose deathbed wish is that his son quit the
Mafia and go straight. Here are scenes from that movie:
[ROLL "OSCAR" TRAILER]
EISNER:
Hollywood Pictures is planning a special comedy treat, Neil Simon's
"The Marrying Man," opening April 5th.
Let's look at some scenes from that movie:
[ROLL "THE MARRYING MAN" TRAILER]
WELLS:
Touchstone is slating two major releases for the all-important
summer months: One is"What About Bob?," starring Bill Murray and
Richard Dreyfuss.
The second is"Billy Bathgate," starring Dustin Hoffman and Bruce
Willis and based on the best-selling novel by E. L. Doctorow about
a young man who rises through the ranks of the Dutch Schultz mob.
Both pictures will open in June.
Our new Hollywood Pictures label will also be prominent during the
coming months. Scheduled for a May release is"One Good Cop,"
starring Michael Keaton of "Batman" fame.
A July debut is planned for "Warshawski," based on the popular
series of detective novels featuring a hard-boiled woman
investigator.
Kathleen Turner will play the title role.
EISNER:
Network and syndicated television are areas in which we have made
substantial progress since our last annual meeting.
In network TV, "Carol & Company," an anthology series starring
Carol Burnett, joined our highly successful tandem of "Golden
Girls" and "Empty Nest" to make a potent Disney lineup on Saturday
nights for NBC.
These shows plus our continuing Saturday morning children's
favorite,"The New Adventures of Winnie The Pooh," and a regular
series of Disney specials such as "Polly--Coming Home" and "A Mom
for Christmas" anchor our expanding efforts in network television.
We have four mid season shows.
They are:"Blossom," which airs at 8:30 p.m. Mondays on NBC.
"Blossom" is the story of a 14-year-old girl growing up in totally
male surroundings. It's off to a good start in the ratings.
WELLS:
"S.T.A.T.," which will make its debut in April on ABC, is a
half-hour comedy centering on a big city hospital emergency room.
It is produced by Danny Arnold, creator of "Barney Miller."
EISNER:
"The Disney Hour" will launch a one-hour series on NBC on Easter
night. The Disney series is called"The Hundred Lives of Blackjack
Savage," and it tells the story of a Wall Street tycoon who teams
up with the ghost of a notorious pirate in a Caribbean castle, both
seeking redemption for their cruel lives by saving others.
WELLS:
And, finally, "Dinosaurs," another ABC show that will debut next
month.
It features a family of green-skinned blue collar characters
created by Jim Henson Productions, which is co-producing with us.
EISNER:
Disney experienced a great loss during the past year. It was the
sudden death of our friend and associate Jim Henson, creator of The
Muppets, a quiet genius and one of the most talented entertainers
I have known. I'm pleased to report, however, that we will continue
to work with Jim Henson Productions on a number of projects, and
"Dinosaurs" is just one example.
WELLS:
Looking a little further down the line, we are developing a
half-hour animated children's series, which will in effect be a
"prequel" to "The Little Mermaid."This program will be a Saturday
morning network show starting in the fall of 1992. In addition,
we're pleased to report that we have already received commitments
for 10 new primetime network pilots in the fall.
Five of these are with NBC, three with ABC and two with CBS.
EISNER:
All three networks and the Disney channel will devote the week of
April 15 to highlight the importance of education. The cornerstone
of the NBC effort will be"she stood alone"a TV movie produced by
Disney and scheduled to air from 9 to 11 p.m., April 15.
It stars Mare Whittingham and portrays the life of Prudence
Crandall, a Southern lady known as the "mother of black education"
for her courageous battle earlier this century to open a school for
young black children.
WELLS:
Television syndication continues to be a major success story for
Disney. Starting last fall, we began airing 18 hours of syndicated
programming per week on major stations across the nation.
"The Golden Girls," which entered syndication for the first time in
the fall, continued its winning ways by becoming the number one
off-network show of the year.
Meanwhile, "Live with Regis and Kathie Lee" achieved ratings
success that enabled it to move from its morning slot into more
lucrative afternoon hours in many major markets.
Movie critic stars "Siskel & Ebert" continue to outshine all
others, and a new game show hosted by Dick Clark, "The
Challengers," made its debut in the fall.
In the fall of 1992, we also will begin syndicating the top-rated
reality-based NBC series "Unsolved Mysteries."
EISNER:
Our biggest success in TV syndication is "The Disney Afternoon," a
two-hour segment of animated cartoons consisting of 30-minute
episodes of "DuckTales," "Chip 'n Dale's Rescue Rangers,""The
Adventures of the Gummi Bears" and "Tale Spin," which debuted last
fall.
We plan to introduce new series and new characters each year to
keep "The Disney Afternoon" a fresh and exciting viewing
experience. Here's a preview of three new replacement shows now in
production for future seasons:
[ROLL DISNEY AFTERNOON]
WELLS:
Overseas, our Disney Club shows are top rated in France, the U.K.,
Holland, Spain, Germany, Italy, Australia and Venezuela--each of
the eight countries where they are being carried. The combined
average weekly audience of the Disney Clubs is nearly 23 million,
and new clubs are slated for launch in Portugal, Brazil, Mexico,
Denmark and Sweden in the months ahead.
During the past year, we've extended our television reach to four
former Iron Curtain countries--the Soviet Union, Poland,
Czechoslovakia and Hungary.
Programming includes dubbed episodes of "DuckTales," "Rescue
Rangers," and "The Wonderful World of Disney."
EISNER:
In 1990, The Disney Channel continued to record more growth than
any other pay television service as it passed the five million
subscriber mark. During the year, it won two Emmy Awards out of
eight nominations, a significant achievement for a cable service.
One of the major television events of the year was the Channel's
inaugural production of "The American Teachers Awards,"
highlighting the extraordinary contributions to society made by
American teachers.
USA TODAY called the program "the best awards show of the year."
Here are some scenes from our Teacher Awards Program:
[ROLL TEACHERS AWARD]
WELLS:
The Disney Channel has taken to producing more and more of its own
programming, a growing trend throughout the cable industry. The
movies are generally about families, and the interrelationships
between parents and children. The focus is on people finding
themselves and building character.
Some recent examples are "Back to Hannibal: The Return of Tom
Sawyer and Huckleberry Finn," starring Paul Winfield and Ned
Beatty, "Mark Twain and Me," with Jason Robards and Talia Shire,
and "Perfect Harmony."An important new program addition during the
current season is "The Magical World of Disney," which moved from
network TV to the Channel in September. During 1991, the show will
air world television premieres of "Honey, I Shrunk the Kids,"
"Bambi," and "The Little Mermaid."
EISNER:
If ever a chart told a story of dominance, this one does. As you
can see, it lists the 10 all-time best-selling videocassettes.
Seven are Disney titles, and four were released by us during the
past year--"The Little Mermaid," with sales of nine million units,
"Pretty Woman," with seven million, "Peter Pan," also seven
million, and "Honey I Shrunk the Kids," five million.
WELLS:
Buena Vista Home Video led all other studios for the third straight
year in the North American rental market. An impressive
demonstration of Home Video's marketing expertise was its release
of "Elvis:The Great Performances," the group's first venture into
music video programming.
Both volumes of Elvis achieved top-10 position on the charts and
now rank among the best-selling movie videos of all time.
EISNER:
Last month, in another new venture, Home Video released the first
six volumes of "The Adventures of Rocky and Bullwinkle," a
compendium of favorite characters and stories by the late Jay Ward
of early television fame.
In Billboard's most recent listing of best-selling videos,
"Bullwinkle" Volumes I through IV ranked second, fourth, sixth and
eighth respectively. Here's an excerpt from "Bullwinkle's"
promotional reel:
[ROLL ROCKY AND BULLWINKLE]
WELLS:
Our next major video release, "The Jungle Book," is scheduled for
May.
The international segment of Buena Vista Home Video continued its
rapid growth in 1990, extending its reach by year's end to more
than 45 nations around the world.
Overseas gross revenues have increased four-fold since 1986 and
nearly doubled in the past year alone.
EISNER:
As the world's attention shifted to the conflict in the Middle East
this year, more and more attention in Southern California shifted
to KCAL, our Los Angeles television outlet that offers an
unprecedented three hours of prime time news nightly.
KCAL, the only station in the nation with such a news-oriented
format, received the Golden Mike Award in January for the best
60-minute news broadcast.
In addition, it won awards for best news reporting, best news
series and best investigative reporting. The station's prime time
news program increased its viewership almost 60 percent with the
onset of the Persian Gulf war.
It was one of the few independent stations in the country to have
two correspondents and a TV crew reporting directly from the war
zone.
WELLS:
In 1989 we announced the formation of Hollywood Records, a company
we created to move Disney into the mainstream record business, a
business much larger than the film business.
I'm happy to report today that Hollywood Records is moving swiftly
to earn its place in the market.
Its first release was by a new group called "The Party," made up of
members of "The New Mickey Mouse Club." Their first single,
"Summer Vacation," was released in July.
Hollywood Records has already signed 18 acts, most of them groups.
EISNER:
The big news, as rock and roll fans will recognize, was the signing
of Queen, a group whose popularity goes back 20 years.
You may recall two of its bigger hits, "We Are The Champions" and
"We Will Rock You."Just last month, Hollywood Records released
Queen's newest album, "Innuendo," celebrating the group's 20th
anniversary. The album is enjoying great success, becoming
Hollywood Records' first gold disc by selling almost 600,000 units.
It also certified gold in Canada. The first single from the album,
"Headlong," recently reached number two in the charts and was
chosen as a "Breakthrough Video" by MTV.
Hollywood Records will issue the entire catalog of Queen albums for
the first time digitally remastered on CD.
Here are some glimpses of this famed musical group which has sold
more than 80 million records and toured 28 countries in their 20 year
history.
[ROLL QUEEN TAPE]
WELLS:
Rapid expansion in the U.S. and increased activity in many
international markets made 1990 the most successful year ever for
Disney Consumer Products. Under the leadership of Bo Boyd,
operating profits continued to grow even as new businesses were
being launched and expanded.
Growth in Disney Specialty Retail, which is responsible for both
the Disney Stores and catalog sales, continues to be substantial.
We estimate that last year some 35 million guests visited a Disney
Store.
EISNER:
The rapid expansion of The Disney Store network brought the number
of stores to 80 at the end of 1990 with a target of 120 by the end
of 1991.
We marked two retailing milestones during the year.
In April, we opened a prototype Mickey's Kitchen, the first Disney
restaurant outside a theme park or resort, alongside a new Disney
Store at Montclair Plaza mall east of Los Angeles. It was an
immediate success.
Near the end of the year, we opened the first Disney Store outside
the U.S. on Regent Street in London. It immediately became our best
performer with sales several times the average of other Disney
Stores, prompting us to move ahead swiftly to open three additional
stores in the U.K. by the end of this year and more than a dozen
more in Europe by the end of next year.
WELLS:
A second experimental Mickey's Kitchen will open in April alongside
a Disney Store near Chicago.
Mickey's Kitchens are designed to be fun and offer something for
just about everyone.
The menu reflects our desire to offer low-fat, low-salt,
low-cholesterol and vegetarian alternatives at all our restaurants,
including those throughout our theme parks and resorts.
EISNER:
While our progress in new business areas is always exciting, the
major share of our Consumer Product revenues and profits still
comes from our more established business areas. The first
handmade Mickey Mouse doll was licensed in the 1930's. Today our
licensing group operates out of 29 offices in the 70 or so
countries in which we do business.
It is responsible for some 3,000 contracts with top manufacturers
in almost every product category imaginable.
Today, the emphasis is on fewer, but BETTER, licensees in many of
our product areas. This gives us greater control over the quality
of licensed products and improves our ability to work more closely
with licensees.
A second strategy has been to develop what we call character
"brands" that have year-round appeal. "Disney Babies" is such a
brand.
Through this program, we coordinate products for infants made by 40
non-competitive licensees.
WELLS:
In film and television licensing, we sign up companies to
participate in opportunities connected with our upcoming movies or
current television shows.
This year, we will link up with more than 100 licensees whose
merchandise will help promote "Beauty and the Beast," "The
Rocketeer," "Darkwing Duck" and "101 Dalmatians."Meanwhile, Mattel,
which since 1988 has been our major standard character pre-school
toy licensee, recently signed on to produce and market a line of
toys and fashion dolls based on characters from classic movies.
EISNER:
Disney Publishing underwent a growth explosion in 1990.
Until last year, our role in publishing was primarily as a
licensor, and we continue to license books telling Disney stories
and involving Disney characters to publishers who distribute
through mass marketing outlets.
Twin Books, for example, sold almost two million copies of "The
Little Mermaid" last year. But early in the year, we embarked on
a comprehensive program to establish Disney as a full-fledged
publisher in many other categories.
WELLS:
In April, Disney Publishing began producing the U. S. comics we had
previously licensed, adding six new titles to our roster and
bringing the total to eight.
EISNER:
Next we launched a juvenile trade book line to publish non-Disney
children's titles from the world's best authors and illustrators.
WELLS:
Then we formed a general interest book division, which during this
first year, will publish some 50 titles for adults, including
popular fiction, biographies and histories.
EISNER:
And most recently, we've formed a Magazine Publishing group, which
produces the Mickey Mouse Magazine for very young children and
"Disney Adventures," a new monthly magazine for children and
youngsters 7 to 14.
WELLS:
The past year has been a busy one for Walt Disney Records, which
concentrates on selling Disney music on record, tape and compact
discs. Already the largest children's record company in the world,
it has increased its efforts in finding and developing young
recording artists and new character concepts.
During the past year, for example, it launched the singing career
of 11-year-old Christa Larson of the U.S.
And Canadian comedian-musician Norman Foote. A current project
involves an all-star compilation album to benefit the Pediatric
AIDS Foundation. The album will feature a selection of children's
songs by Paul McCartney, Bob Dylan, Sting, Elton John, Paula Abdul,
James Taylor and Barbra Streisand among others.
EISNER:
Disney Audio Entertainment is a world leader in producing
read-along products and sound storybooks.
Its most dramatic success during the year was its sale of more than
a million units of "The Little Mermaid" book-and-cassette
read-along.
Walt Disney Computer Software is a relatively new business that
holds great promise. It develops and markets challenging and
entertaining educational programs and games for both computers and
electronic game systems. Several Disney-licensed video games were
best sellers in 1990.
WELLS:
Overseas, the European/Middle East Region has as one of its goals
increasing the awareness of Disney in anticipation of next spring's
opening of Euro Disney.
In our view, the potential of the European market with 350 million
people is virtually limitless.
Records and Music in the region surged far ahead of expectations
due to excellent growth in Germany, the Scandinavian countries,
Italy and France.
The first album by Disney's French singer Anne, "La Petite Siren"
(or "The Little Mermaid"), earned a gold record status for sales
over 100,000 copies.
Consumer Products/Europe is responsible for creative control of 74
Disney publications in 20 languages. Weekly readership of these
magazines exceeds 20 million.
Last month Fleetway, part of the huge U.K. Maxwell Consumer
Magazines group, introduced a Disney weekly comics magazine for 7
to 12-year-olds and this month it is introducing a Disney monthly
for ages 3 to 7. A November agreement with French publisher
Hachette created a company called Disney/Hachette Press that will
publish both Disney and non-Disney magazines.
EISNER:
Meanwhile, following the "fewer but better" strategy pioneered in
the United States, Europe has reduced its number of licensees from
fifteen hundred to one thousand, thus increasing its ability to
control quality and associate Disney with companies that are
leaders in their fields.
We are also building business relationships in countries formerly
behind the Iron Curtain.
Our magazine, Mickey Maus (that's M-A-U-S, if you please), was
actually banned from East Germany for many years, but with the
opening of the border, it has become a major seller there again.
In May, we introduced a Mickey Mouse comic to Moscow, and all
200,000 copies of the first edition sold out in a single day. We
could easily have sold a million copies if we had enough paper.
WELLS:
Japan is the shining light of our consumer products business in the
Asia/Pacific Region. Per capita spending on Disney merchandise is
twice in Japan what it is in the United States.
EISNER:
That's not too surprising, Frank, when you consider that on one
memorable day more mouse ears were sold at Tokyo Disneyland than
there were people in the park.
WELLS:
WALT Disney HIMSELF ESTABLISHED A strong presence for THE COMPANY
in Latin America. Jose Carioca and other Disney characters helped
us sell 27 million comics in Brazil alone last year. In a major new
agreement, Disney comics are now also being sold in every Spanish
speaking country in the region.
EISNER:
It's time now to take a look at our theme parks, where the
big...bigger...biggest news is our April, 1992 opening of Phase I,
Euro Disney, which is the new name of the entire 5,000 acre resort
complex we will develop 20 miles east of Paris over the next 30
years.
We are tremendously optimistic about Euro Disney, and you will see
why in a few minutes. We are equally pleased about plans for
California, Florida and Tokyo over these next several years of what
we're calling the Disney Decade.
WELLS:
As you know, 1990 was a year of solid performance at all our U.S.
parks, thanks to our all-star cast under the leadership of Dick
Nunis. It was also a banner year at Tokyo Disneyland. In the U.S.
attendance was healthy at all parks...but especially strong at the
Disney-MGM Studio Theme Park, where we now can handle twice as many
guests as before and where we experienced strong attendance gains
through August. That's when we and the rest of the tourism industry
began to feel the effects of a weakened national economy and the
uncertainty surrounding the occupation of Kuwait.
You may have read that immediately after the outbreak of war in
January, international travel dipped dramatically. To offset the
fall-off in air travel, we set into motion strong promotional
efforts at Disneyland and Walt Disney World to encourage attendance
by nearby residents.
These programs were helpful, and now that the war is over, air
travel is increasing rapidly, which we expect will be a harbinger
of strengthening tourism.
EISNER:
Meanwhile, our plans for the Disney Decade are moving forward
swiftly. During the 90s, the number of new projects planned for
California and Florida totals more than 60. They include pavilions,
attractions, hotels, rides, revues, adventures, extravaganzas and
entertainment centers. And beyond all these are five new theme
parks--one in California and one in Florida plus the two planned
for Euro Disney and a second gate at Tokyo Disneyland.
WELLS:
In the U. S., the Disney Decade got off to a fast start last year
when we formally opened the "Star Tours" attraction at the
Disney-MGM Studios Theme Park. At the same time, we dedicated the
nearby 758-room Walt Disney World Swan Hotel and later in the year
opened the 1,500-room Walt Disney World Dolphin. In the fall, we
opened Disney's Yacht and Beach Club Resorts, which provide more
than twelve hundred rooms.
EISNER:
In the wake of the tremendous success of our Caribbean Beach Resort
in Florida, we're building other moderately priced hotels,
including the thousand-room Port Orleans Resort, which will reflect
the ambiance of New Orleans' famed French Quarter when it opens in
mid-year, and the Dixie Landings Resort, scheduled to open in 1992.
Other 1990 highlights in Florida included the opening of Delta Air
Lines' Dreamflight attraction at the Magic Kingdom and the December
premiere of the "Honey, I Shrunk the Kids Movie Set Adventure" at
the Studios Theme Park.
WELLS:
Coming up this summer at the Disney-MGM Studios is an exciting new
attraction featuring the Muppets.
It's a brand new 3-D movie starring Kermit and the gang--a show
guaranteed to put Miss Piggy right in your lap...whether you want
her there or not.
We've got ambitious plans as well for our other two Florida parks.
Our Epcot Center plans call for a magnificent Space Pavilion for
Future World.
Here guests will discover the wonders of outer space in an exciting
new voyage.
EISNER:
In Epcot Center's World Showcase area, plans are well along to
premiere two other new pavilions:One is a Switzerland pavilion,
featuring a 15-story Matterhorn Mountain with a breathtaking
bobsled ride, ending in a picturesque Swiss village...
And, a Soviet Union pavilion is still a hoped-for addition during
the decade. This is the pavilion guests tell us they'd most like to
see in World Showcase.
Our third Florida park--the "flagship" Magic Kingdom--will
celebrate its 20th anniversary this fall.
"Surprise" will be the main element of the celebration...surprise
events, surprise gifts for guests, surprise happenings, surprise
drawings...the works. Next year we'll reach new heights in the
Magic Kingdom with the East Coast opening of "Splash Mountain,"
already one of the all-time favorites at Disneyland.
WELLS:
As you know, Disneyland celebrated its 35th birthday last year.
This year the excitement continues with special appearances by the
stars of "The Disney Afternoon" in parades, photo sessions and
other events throughout the park. Highlighting the numerous
activities will be "Plane Crazy," a musical show on the Videopolis
stage featuring Baloo and Louie, the stars of "TaleSpin."Meanwhile,
we're working on plans for Mickey's Toontown, a permanent home
built just in time for our favorite mouse's 65th birthday in 1993.
Mickey's Toontown will also be the location of a new and wild Roger
Rabbit ride.
EISNER:
The big question in Southern California now revolves around where
we will build our second theme park. For some time now, we've been
studying sites adjacent to Disneyland here in Anaheim and near the
Queen Mary in Long Beach.
Last July we submitted a detailed proposal for an ocean-oriented
theme park and resort complex called Port Disney to Long Beach
officials.
Our Anaheim proposal for a second theme park and resort complex
will be formally presented to city officials within 30 TO 45 DAYS.
We have gone to great lengths in Long Beach...and will do the same
in Anaheim...
to review our proposed plans with members of the community and
solicit their comments and concerns.
We are excited by the potential of each project and are continuing
our feasibility work in both cities.
A decision on the two projects is not expected before year-end.
WELLS:
Following the dictum that one picture is worth a thousand words,
we'd now like to show you two brief films on our Euro Disney
project. The first film is slightly more than a year old. It
describes the Euro Disney project, and, through the use of models,
shows what the project will look like at the completion of Phase
One construction.
[ROLL EURO DISNEY FILM]
EISNER:
Now for a project update. Here is Euro Disney one year later--in
January of this year. No more models. What you'll see here is the
largest single construction project currently underway in Europe.
[ROLL EURO DISNEY TWO]
EISNER:
I think you'll agree that these two films say it all:Euro Disney,
scheduled to open 13 months from now, is on time and on budget.
Between now and opening day, it will hire and train more than
10,000 new cast members.
WELLS:
Tokyo Disneyland, a theme park much like the original Disneyland,
is one of the great success stories since its opening in 1983.
We fully expect Euro Disney, a total resort complex, to more than
match that success when it opens, and with a major difference. This
time we will have an ownership position as well as income from
royalties and management fees.
EISNER:
Frank, and now on a totally different subject, I would like for all
of the Walt Disney company, for all of our 55,000 cast members and
for our board of directors sitting in front of you... To thank the
men and women of our armed forces who risked their lives in the
middle east.
WELLS:
and may they all return home soon.
This brief film clip from KCAL expresses the feelings of all of us.
[RUN KCAL PROMO]
EISNER:
That concludes our report on the state of your company.
Thank you very much.
(PAUSE)
And now time for the question and answer period. Frank, please
explain the procedures we'll use.
WELLS:
As you see, we have stations where there are microphones. If there
is a question you would like to ask, please go to a microphone near
where you are sitting and wait to be recognized.
Because of time limitations, each person will be given the chance
to ask one question only. After everyone has had an opportunity to
speak once, and if time permits, additional questions may be asked.
We're ready for the first question.
(NOTE: AT THE APPROPRIATE TIME, A QUESTION FROM MICROPHONE 15)
EISNER:
Thank you for the motion. I will now limit questions to those who
are currently at the microphone stations.
That appears to be all the questions we have time for. Again, thank
you for joining us today and for your continued support.
I deem the motion to adjourn the meeting moved and seconded.
All those in favor, please signify with the phrase, "April In
Paris..."The meeting is now adjourned.
--
ll // // ,~/~~\' David Rowley
/ll/// //l' `\\\ Mortice Kern Systems Inc.
/ l //_// ll\___/ 35 King Street North, Waterloo, ON, Canada N2J 2W9
O_/ 519/884-2251, FAX 519/884-8861, david@mks.com
|
| From: david@mks.com (David Rowley)
Subject: State of the World Address
Date: 4 May 91 18:20:36 GMT
Organization: Mortice Kern Systems Inc., Waterloo, Ontario, CANADA
Here's another message from the Florida forum on Compuserve,
Dick Nunis's State of the World Address:
WALT DISNEY WORLD'S
1991 STATE OF THE WORLD PRESENTATION
Presented 3/26/91 & 3/27/91 by:
Dick Nunis, President, Walt Disney Attractions &
Tom Elrod, Sr. Vice President, Marketing, Walt Disney Attractions
------------------------------------------------------------------
DICK:
Good morning... and thanks for joining us for our eighth annual
"State of our World" presentation.
If you were with us for last year's presentation, you remember we
unveiled our plans for the Disney Decade... the next ten years of
projects for our company.
Well, in the best movie tradition... welcome to the sequel: "Son of
Disney Decade."
TOM:
This year, we're going to narrow the focus a bit, and concentrate
on the first few years of that decade. We're going to give you a
look at the news in our company...
and talk about the next few years in our parks and resorts in
detail, to let you know where we are on our Disney Decade projects.
DICK:
So much of our company is based on the film and television
business... so that's where we'll start today.
Welcome to the movies, ladies and gentlemen... from the Studio that
captured the box office lead last year in Hollywood.
TOM:
In fact, in the last three years, the Walt Disney Studios has
captured 17% of domestic box office, ranking it number one for that
period.
We've continued our success with Touchstone... and we've even
created a THIRD label: Hollywood Pictures... which will let us keep
up with our growing production pace.
DICK:
I'm often asked by people: "Why does Disney make the kind of films
that fall under Touchstone and Hollywood Pictures?
The answer is... having these two film companies allows us to make
the more contemporary movies that today's movie-going public wants
to see... while at the same time, preserving the integrity of the
Walt Disney Pictures name... and allowing us to produce great films
like: "The Little Mermaid."
It's a "self-rating system," and it's working great.
TOM:
At one point in the year -- last August -- one out of every three
theatres in the nation was showing a Walt Disney Pictures,
Touchstone, or Hollywood Pictures release.
DICK:
What were they showing?
Last year our company's releases included: The Little Mermaid...
the all-time box office champ for animated features...
TOM:
Arachnophobia, the first film from our new Hollywood Pictures
label...
DICK:
Three Men and a Little Lady...
Jungle Book...
Dick Tracy...
TOM:
And the second highest-grossing film of the year among all studios,
Pretty Woman.
Since then, we've released "The Rescuers Down Under"... "Green
Card"... and of course, the 50th Anniversary re-release of
"Fantasia," and a brand new Mickey Mouse short, "Prince and the
Pauper."
DICK:
Pretty good... but folks, "you ain't seen nothing yet."
We thought you might like to take a look at what's ahead from the
Disney Studios...
with a little help from some special guests:
(VIDEO: MICKEY & MICHAEL; ROCKETEER; OSCAR; MARRYING MAN)
DICK:
This film success has made Central Florida the film and television
center of the Southeast.
The Disney-MGM Studios have benefited greatly... and the benefits
will continue.
TOM:
For example, the eyes of Hollywood were on Central Florida last
June, when the stars of "Dick Tracy" came to the Disney-MGM Studios
for Central Florida's first Hollywood premiere.
DICK:
On television, we continue to have hits such as "Golden Girls, and
"Empty Nest," and have introduced a new network star, "Blossom."
And in the works is a new show we're developing with Jim Henson
Productions, dealing with the life and times of a blue-collar
family...of dinosaurs. It's called -- what else?
"Dinosaurs."
TOM:
Another Disney TV hit: "The Disney Afternoon"... this two-hour
block of children's TV has become the favorite of kids across the
country, taking the top spot in almost every market it's in.
Our Home Video Division is breaking records, too... not only with
The Little Mermaid... but with Dick Tracy... Pretty Woman...
Peter Pan...
And -- the most important release in years: The Adventures of Rocky
& Bullwinkle, the original TV programs.
DICK:
The Disney Channel continues to touch Central Florida.
The new Mickey Mouse Club was the first regular program to be taped
in this area, and will begin taping a new series of shows next
month.
TOM:
Another division of our company is enjoying record success, too.
It's Consumer Products, which, a few years ago launched the Disney
Store concept.
Since then, the growth of the stores has been tremendous.
By the end of this year we plan to have 120 stores in operation.
Even overseas, such as this Disney Store in London.
And each store not only sells Disney merchandise, but also acts as
a "promotion bureau" for our parks and resorts.
DICK:
Our Films and Consumer Products divisions HAVE had a great year...
and so has our attractions division.
But, it's been a year which has had its ups and downs.
I'm glad to say it looks like the "downs" are behind us now, with
the ending of the war in Kuwait.
In the past few weeks, we've seen airline travel and reservations
at our parks and resorts begin to pick up again... which gives us
hope that we'll be returning to pre-war attendance levels soon.
TOM:
Last year was Disneyland's 35th birthday celebration, which brought
together some new friends... and some old friends you may
recognize...
That's former President Ronald Reagan and Art Linkletter, on hand
to celebrate, just as they were when Disneyland opened in 1955.
DICK:
We moved forward last year on other projects in Southern
California. We're still on track to build a second theme park
there.
We're looking at either a Water and Sea-based theme park at Long
Beach called "Port Disney" ... or perhaps a second theme park in
Anaheim, right next door to Disneyland.
Frankly, the ideas coming out of our Disney Imagineers look so
good, it's going to be a difficult decision on which one to do.
TOM:
Tokyo Disneyland continues to be a huge hit with the Japanese...
A Washington Post reporter who went over wrote that these days "the
trains back to Tokyo are filled with normally-reserved Japanese
husbands clutching Disney balloons and sporting Donald Duck T-
Shirts."
Ahh... the power of pixie-dust.
DICK:
There's one more project in the works we want to talk about this
morning.
It's the most ambitious project our company has undertaken since
the building of Walt Disney World... Euro-Disney, located just
outside of Paris.
By this time next year, we'll be putting the final coats of paint
on the project and getting ready to open the gates... at 9:01 a.m.,
April 12, 1992.
TOM:
A Preview Center has already opened outside of Paris, and it's
creating the same excitement that many of you may remember the Walt
Disney World preview center caused over 20 years ago.
We think Euro Disney will become to the people of Europe what
Disneyland and Walt Disney World are to the people of America:
Part of the social fabric.
Take a look at this recent video of the construction progress...
(NARRATE OVER VIDEO)
DICK:
The entire resort will cover 5,000 acres, and at the heart of it
will be a theme park, much like Disneyland in California and the
Magic Kingdom here in Florida.
Right at the entrance to the theme park will be the Disneyland
Hotel at Euro Disney, where guests will actually be able to stay
WITHIN a Disney theme park for the first time.
The design will be much like our own Grand Floridian resort.
TOM:
Besides the Disneyland Hotel, there'll be other unique resorts
re-creating regions of America.
The Hotel New York is based on Manhattan and Rockefeller Center...
The Newport Bay Club evokes the spirit of a New England seaside
resort.
The Sequoia Lodge is based on the great American National Park
lodges.
The Hotel Cheyenne will be built in the style of an Old West town.
And the Santa Fe Hotel will capture the spirit of the American
Southwest.
We'll also have a taste of the American outdoors with the Davy
Crockett Campground.
For more man-made entertainment, there'll be an Entertainment
Center, where guests will view a Buffalo Bill-style Wild West Show.
DICK:
And at Euro Disney, guests will be able to play on 27 holes of
championship golf... it'll be a country club atmosphere, and
possibly the site of a future French Open golf tournament!
You can see that Euro Disney will be a complete destination resort,
much like Walt Disney World.
(END OF VIDEO)
TOM:
And, it will enjoy a truly unique location.
A rail spur is being constructed from Paris literally to the front
door of the Euro Disneyland park -- not one, but two train stops
will be less than 300 yards from the gate.
One will bring area residents to the park on the local rail
network.
The other will serve the TGV, the French bullet train... which can
bring the entire continent to Euro Disney.
Consider that when the Channel Tunnel is completed in 1993, even
Great Britain will be no more than a two or three-hour train ride
from Euro Disney.
And even more amazing: The area surrounding the resort has a
resident population base of 17 million... and 350 million people
will be within a two-hour flight from the resort -- and that's
without the newly-opened Eastern bloc of nations!
DICK:
In recognition of the economic benefits it will bring to the
country and the local community, the French government provided
support as an incentive, to obtain our company's commitment.
The French provided the option to the Euro Disney Company to
purchase 5,000 acres of land, at farmland prices,
granted almost 800 million dollars in low interest loans, and
provided direct financial support for the roads and infrastructure.
When the resort opens next year, over 12,000 direct jobs will be
created in that area, and that's not including the indirect jobs.
Euro Disney will be a tremendous success.
TOM:
We should say we do not expect the opening of Euro Disney to
adversely affect European visitation in Central Florida in the long
term.
That's been the case with Tokyo Disneyland and Disneyland in
Southern California...
Europeans visiting Walt Disney World spend up to 10 days in Central
Florida, taking in not only Walt Disney World but other attractions
as well, including the beaches -- which they love.
Euro Disney won't be able to offer everything we have here... but
it WILL serve to whet Europeans' appetites to visit Central
Florida.
(PAUSE)
DICK:
Well, that's a look at the rest of our company, and the rest of the
world...
But now it's time to focus on what you're really interested in:
Walt Disney World and what our company is doing here in Central
Florida.
TOM:
1990 was a year that brought the most prestigious travel industry
event in the world to Central Florida: the Travel Industry
Association's Pow-Wow.
We were glad to work with the Orlando-Orange County Convention &
Visitors Bureau to bring this event here.
Over 4,000 travel agents and package wholesalers from 50 different
countries spent five days seeing what Central Florida had to offer.
DICK:
With this great potential for new guests, we've begun to plan
ahead.
And this past year we opened a few new hotels you've heard about:
The Walt Disney World Dolphin, operated by Sheraton...
The Disney Yacht Club...
and the Disney Beach Club...
They each came online this past year, adding new themed resorts for
our guests.
TOM:
Speaking of guests, we had a few new permanent residents come to
stay at Walt Disney World... Some real animals, frankly.
Here's Minnie Moo -- an accident of nature (we think) who bore a
birthmark worthy of special note.
She loves it here, and in fact, just had a calf, who doesn't carry
any special markings... yet.
(PAUSE)
Actually, we may have hit upon something here...
BREEDING attractions is a lot cheaper than BUILDING THEM.
DICK:
On a slightly grander scale, we made the trip to Tampa in January,
to produce the NFL's Super Bowl halftime show.
The real stars of the show were 1600 children, 12 years and under,
from Central Florida...
It was unfortunate that it was pre-empted by the network, but the
show WAS seen by the nation, and our troops overseas, on a
rebroadcast.
Here's a brief look at the show:
(VIDEO: SUPER BOWL HALFTIME SHOW)
TOM:
That was a great moment.
The Super Bowl also gave us an opportunity to do a slightly amended
version of one of our more-famous commercials.
Here's most valuable player O.J. Anderson, saying what he'll do
next.
(VIDEO: O.J. ANDERSON CLIP)
Of course, these commercials have inspired more than a few
takeoffs... and the past year saw some new ones added to the file:
(VIDEO: COSBY/NEWHART)
DICK:
Well, why are all these people coming to Disney?
Because we've been hard at work on the plans we outlined for you a
year ago, when we first unveiled the "Disney Decade."
One of our biggest plans was the continued expansion of the
Disney-MGM Studios, and that process is well underway.
TOM:
It's been a year which has inspired critical acclaim... and
"universal" envy.
Famous faces showed up every day... and some of them were green
and looking for pizza!
This was the year that brought the Teenage Mutant Ninja Turtles to
the Disney-MGM Studios, and they'll be an important part of a whole
new area we're opening this summer.
DICK:
One of the additions we began last year has already established
itself as a new Disney tradition.
What some are calling the best Disney fireworks show ever:
"Sorcery In The Sky."
The show takes place to the greatest music in movie history,
including the score from "Fantasia," and is narrated by Vincent
Price.
The high point comes when a 50-foot Mickey rises above the Chinese
Theatre for the show's finale.
TOM:
Last year we debuted a new movie-set adventure area based on the
film, "Honey I Shrunk the Kids."
Here the blades of grass are 25 feet high, and the ants are the
size of a truck!
Kind of like my neighbor's yard... Last year, we proudly announced
two brand new Muppet adventures for the Studios...
The first of them, the "Here Comes the Muppets" show, has already
made its debut.
And coming up this June is the second Muppet spectacular:
A 3-D movie featuring Kermit and the gang. It'll be a show that
uses every bit of the theatre, over, under and around you. So be
warned.
DICK:
Let me say here that we were all saddened by the loss of Jim Henson
last year.
He was truly a tremendous talent, and probably as close to a
"Walt Disney of the 90s" as anyone could be.
I had the great fortune to know Jim, and work with him while he was
here at Walt Disney World, and he was one of those special people
that come along only once.
We're proud to have developed our projects with him... and today,
the Disney-MGM Studios is still where Jim Henson's Muppet legacy
can be seen and enjoyed...
(PAUSE)
TOM:
That's just the beginning of our Studio expansion...
Our Disney Imagineers are also moving forward with the major part
of our expansion, "Sunset Boulevard"...
a new street of dreams which we plan to open as early as 1994, with
many new shows based on a variety of movie themes.
(PAUSE)
DICK:
As much fun as they are to talk about,
not all the news at the Disney-MGM Studios is about new
attractions.
This is where guests actually looked over the shoulders of Disney
animators last year,
as they helped create the classics we mentioned earlier:
"The Rescuers Down Under," and "Prince and the Pauper."
You may not have realized it,
but these were all recent Disney-MGM Studios projects.
In fact, one recent release was done entirely here at our studios
in Central Florida.
You might have seen it:
"Roller Coaster Rabbit"...
TOM:
Our animators here in Florida are at work right now on the Walt
Disney Company's 30th animated feature...
It's "Beauty and the Beast," scheduled for release this
Thanksgiving.
The film features the music of the Oscar-winning "Little Mermaid"
team...
We've arranged to preview this rough pencil test for you, to give
you an advance look at this next Disney classic.
(VIDEO: BEAUTY AND THE BEAST)
TOM:
That's going to be a great hit like "The Little Mermaid..."
You can see the list of animated characters coming out of the
Disney-MGM Studios is impressive.
But the list of HUMAN stars who worked at the Studios last year is
notable, too:
Last year it included Sidney Poitier and Burt Lancaster, who came
to film an ABC mini-series titled "Separate But Equal." The
interior of the U.S. Supreme Court was recreated in one of our
soundstages for this legal drama, which airs in just a few weeks.
DICK:
And this year saw Sylvester Stallone come to the Studios... for
soundstage work on his new comedy "Oscar".
And this fall, a brand new cable network will call the Disney-MGM
Studios home: The Sci-Fi Channel... will feature science fiction
and fantasy programming.
TOM:
Now, let's take a look at the progress at another Walt Disney World
favorite:
Epcot Center. It's hard to believe, but Epcot Center will be 10
years old in 1992.
As we announced last year, on our drawing boards right now is a
magnificent Space pavilion for Future World, continuing in the
development stages.
Last year we also announced our intention to add a thrill
attraction to Epcot Center:
The Matterhorn Mountain Bobsled Ride.
We're also considering an alternative idea: a possible Mt. Fuji
attraction, complementing our Japan showcase.
We're not sure which way we might go on this project, but we DO
plan to add a new mountain with a thrill attraction to Epcot Center
in the years ahead!
DICK:
The other World Showcase project we're working on is the Soviet
pavilion.
With what's going on in the Soviet Union, you can imagine the
hurdles involved in getting this project underway... but last
summer Michael Eisner made a personal visit to Moscow.
We've hosted several delegations from that country here at Walt
Disney World, including several visits by Soviet ambassadors with
their families... and we're determined to have a Soviet Union
pavilion in the Disney Decade.
TOM:
Now, let's look at the flagship park of Walt Disney World -- the
Magic Kingdom -- and where we are with our future plans for it.
If you've been to the park recently, you know about one of them:
It's Splash Mountain.
We've already moved the entire Frontierland train station, rerouted
roads, and are well on our way digging a hole to China to create
this...
The adventure that'll take Central Florida by storm when it opens
in 1992.
It's a trip through the classic film "Song of the South," and takes
guests through the woods and past hundreds of singing characters...
until they reach the end:
A 5-story drop down the side of the mountain, into a briarpatch and
mist-covered pool below.
(PAUSE)
DICK:
Now.. about the big news of the coming year: the 20th Anniversary
of Walt Disney World.
It seems impossible that over two decades have gone by since Walt
Disney purchased the land that would become Walt Disney World...
Some of the stories of those days are still fun to look at...
Former Sun Banks' chairman Billy Dial, who was there, remembers:
(VIDEO: BILLY DIAL)
DICK:
In the years since opening day, we've had many milestones... and a
lot of good memories...
We thought it'd be fun to remember all the great years... So
Central Florida... thanks for the memories!
Roll the tape.
(VIDEO: 20TH TAPE)
DICK:
It has been great.
But nothing we've done will compare with the party we're planning
for the 20th anniversary year.
TOM:
It all kicks off October 1st of this year, with an event that will
host up to 7,000 media and guests from 28 countries, over a
three-day period.
Speaking of "around the world," some of them will have just made
the trip!
Delta Air Lines, our official airline, will be providing two
L-1011s, in which we'll fly a group of 500 press on a ten day tour
to see every Disney resort on Earth, from Disneyland to Tokyo
Disneyland to Euro Disney...
Who knows, we might even take a detour to Mars, to see the park the
National Star says we have there!
Now THAT will be an "E" ticket.
Seriously, this wouldn't be possible without the tremendous support
of our friends at Delta, and we thank them.
DICK:
We'll end the around the world journey with a proper "grand
finale," a landing at the 20th Birthday party of Walt Disney World!
This party will feature the greatest single debut of new
entertainment in Disney history!
TOM:
It'll be the world's biggest Surprise Party... that'll be our
theme, and around every corner will be a new surprise for our
guests. We're going to take the party everywhere throughout the
park.
In every show, in every performance, you never know when the show
will stop and party will begin. You might be watching the Diamond
Horseshoe Revue one moment, and be surrounded by a party the next.
Now, what else is in store for the celebration? Not one... but TWO
new incredible parades:
The first will be Mickey's Surprise Parade... a daily Mardi-Gras
Carnival celebration that's longer than a football field... and
almost as tall.
Look at these inflatable characters... they're 50-feet tall, and
will squeeze through the park each day during the parade.
DICK:
The Magic Kingdom is also where we'll premiere our second new
parade.
This year will mark the end of the Main Street Electrical Parade...
in fact, this summer will be the last chance to see this classic.
But this fall, for our 20th Birthday, a new classic begins -- a
nighttime spectacular called... "Electro Magic."
Imagine a string of fiber-optic floats stretching through the park,
linked by computers, so they can change color in a continuous
sweep. Or make animated images come to life. Or send beams of
light miles into the night sky.
This is a parade our electrical wizards have been waiting 20 years
to build.
It'll be one to remember.
TOM:
The 20th Birthday party will go outside of the Magic Kingdom, too.
At the Studio, we'll have great new shows for the 20th....
One will be "Mickey's Magic Show," at the Theatre of the Stars.
Here, we'll create all the greatest illusions of magic... with
some birthday party magic thrown in.
DICK:
And at Epcot Center, we'll be debuting a fabulous new show on...
over... and all around the World Showcase Lagoon -- the largest
daytime fireworks show in history.
This great new show will also feature powered parasails, Disney
characters, and will be capped off by the magical appearance of
gigantic character figures around the lagoon.
TOM:
Besides these new shows, we're launching one of our most ambitious
marketing efforts ever for the 20th.
We're going to try to locate and bring back everyone who has ever
visited Walt Disney World in the past 20 years.
This will be a worldwide search for 80 million people, and when the
guests return to Walt Disney World they'll be met with special
honors and offers.
We'll be telling our 20th Birthday story around the world in other
ways, too, to help promote tourism to Central Florida.
- Through 10 national television programs and events... including
a two-hour special on CBS in the fall.
- Major promotions with General Motors, CBS, and K-Mart.
- Promotions mounted through each of our 11 offices in five
countries.
- And advertising in publications such as People, Time and
Newsweek... along with TV campaigns all over country.
We're even bringing an American icon to the party: In honor of the
20th Anniversary, the Miss America Pageant will spotlight Walt
Disney World in a segment of their show to be produced here in
Central Florida.
DICK:
We promised a big party... and we're going to deliver.
We think it'll be an event that will bring more visitors to Central
Florida than ever before, from new cities and new countries.
If you were around for our 15th, you know how this worldwide
attention and publicity helped not only us, but all of Central
Florida.
It was the most successful promotional program we've ever done.
And many of you joined us in the celebration, and benefited
greatly.
TOM:
For the 20th, we invite everyone in Central Florida to once again
join the party, and create a worldwide event that will be a success
for all involved.
(PAUSE)
DICK:
That's what's happening inside our parks...
But as you know, we have some big things happening OUTside the
parks, too -- some big plans for our resorts.
We mentioned the many new hotels we've opened this past year at
Walt Disney World.
But we're adding something else: Convention space.
TOM:
Our additions include: 51,000 square feet of convention space at
our new Yacht & Beach Club...
A 54,000 square foot convention addition to the Contemporary
Resort... including the second largest ballroom in the state.
And a 27,000 square foot addition to the Grand Floridian Beach
Resort.
All of this new meeting and convention space will play a supporting
role in making Central Florida the top meeting destination in the
country.
DICK:
We see it complementing the large-scale space at the Orange County
Convention Center.
We have actively supported the Orange County Convention Center from
the very beginning, and in fact, almost 1/3 of the funds used to
build it were collected via resort taxes on our property.
Another resort project we're excited about is the Port Orleans
Resort, which will open this June.
It'll feature 1,000 moderately-priced rooms which re-create the
unique atmosphere of the New Orleans French Quarter.
Here you can see some of the themeing guests will enjoy for as
little as $79 per night.
They'll even be able to travel by boat from the resort, up the
river, to Pleasure Island and the Disney Village Marketplace.
TOM:
And coming on line next February, as scheduled, will be Dixie
Landings, another moderately-priced complex offering 2000 rooms
built in the style of the American South.
Beyond these are even more resort and recreation projects...
Two of them you've heard about as separate elements, but we've
decided to combine them into a single project. The Boardwalk
Resort will be located across from the Yacht and Beach Club Hotels
and within walking distance of Epcot Center, and will combine an
old-fashioned boardwalk with a seaside resort hotel, which will
feature 500 suites.
Construction could begin as early as 1992, with completion planned
for 1994.
DICK:
I think it's significant to point out that even when the Boardwalk
Resort comes online, our company will operate just 14% of the hotel
rooms in Central Florida.
That's actually DOWN from the 20% we had when we opened 20 years
ago. That shows how much the hotel industry in Central Florida has
grown.
And as many of you know, Central Florida has just passed Las Vegas
and currently has the most hotel rooms in the country!
(PAUSE)
TOM:
We're also excited about another project: Two new golf courses
under construction, just north of the Port Orleans area, and east
of Fort Wilderness.
Here's what they look like right now. Now THAT's a bunker.
The courses are being designed by Tom Fazio and Pete Dye, and will
open on schedule in January.
When they do, they'll give Walt Disney World five championship golf
courses and 99 holes of golf.
DICK:
Finally, let us update you on another new exciting idea that we
mentioned last year... our Disney Vacation Club.
The Club is a new Disney concept, that will let guests actually
"own a piece of the magic".
TOM:
For a one time membership fee, guests will be able to join the
Disney Vacation Club, which will have resorts around the world.
They'll also receive exclusive lodging privileges at other
non-Disney resorts worldwide.
The first Vacation Club Resort will be right here at Walt Disney
World... 500 vacation units, done with a Key West theme, are being
built right now overlooking the fairways of the Lake Buena Vista
golf course.
The Disney Vacation Club preview center opens to the public July
1st, and we believe there'll be quite a bit of interest not only
from our guests, but from Central Floridians, as well.
DICK:
There's some other construction going on in Lake Buena Vista you've
probably noticed:
In fact, it's almost complete, and in April many of us will be
moving into our new 400,000 square foot "Team Disney" building...
designed by the world-renowned architect Arata Isozaki.
TOM:
There's one other big project we announced last year: Our dream for
a new community in Osceola County.
We're continuing to move forward with our plans for this project,
and in the next 60 days expect to submit detailed plans to the
appropriate agencies for review, in accordance with the Development
of Regional Impact process.
Today, we can be specific about one element, which will signify the
groundbreaking of the Osceola Project:
We're moving ahead with a 240,000 square foot office center, which
will house some Disney offices.
We'll begin this building next year, so the start of this great
25-year dream is just around the corner.
(PAUSE)
DICK:
We're excited about the future of Walt Disney World... but we're
also excited about what we're doing in the community.
This past year, we've been continuing to work to "share the magic"
throughout Central Florida.
We're helping the area environment through a new focus on ecology
in our company.
Our entire company has launched a recycling effort, under the
direction a newly-appointed Vice President for Environmental
Affairs, Kym Murphy.
TOM:
Under Kym's direction, we created a recycling program guests can
take part in...
We're phasing out the use of flourocarbon styrofoam cups and
containers...
We're recycling over one million pounds of scrap metal... one
million pounds of wooden pallets...
and over two million pounds of corrugated cardboard each year --
that's enough to cover Epcot and the Magic Kingdom!
We're recycling our office paper... solvents... oils...
even grinding up our horticultural waste.
DICK:
But here's the hot news on our property:
We're creating a natural fertilizer, made of wastewater sludge,
sawdust and recycled compost. We held a contest to name it, and
boy, did we get some names. From Utmost Compost... to "Winnie's
Poo."
But we settled on the more mainstream name of "Vista Green."
We're also planning some very visible conservation efforts, to
bring this important subject into the public eye.
For example, in celebration of this Earth Day, April 22nd, we'll
move the largest living oak tree ever transplanted.
It's 55 feet tall and 42 inches around the trunk. We'll be moving
it from near our Tree Farm to our new Dixie Landings resort site.
It's a demonstration project to show that you don't have to destroy
old trees for progress... they CAN be moved.
(PAUSE)
TOM:
Last year we commissioned a survey of Central Florida residents to
find out what's on their minds. And they told us among their
concerns was education.
So we've begun many new programs.
DICK:
At the elementary, middle and high school level, we're providing
1000 dollars to one outstanding teacher, in each of 174 public
schools in the tri-county area, to reward them and help fund
innovative teaching techniques.
We began this program last June, and we're continuing it again next
year and in the years ahead.
TOM:
We continued the Challenge Program... a program that keeps
potential dropout student in school by giving them a job in our
parks and resorts for half a day, and classes on our property for
the other half.
DICK:
Last year we adopted an entire high school:
We teamed up with Dr. Phillips High in the new COMPACT program.
This sends Disney volunteers into the school to work with students
who need guidance and help. We needed 75 volunteers,
we got 250!
TOM:
And we're continuing our scholarship program, through which we give
out the only corporate, fully-paid, four-year college scholarships
in the state.
We give four years of school -- FREE -- to one student in each
tri-county high school.
They can choose to attend any state university in Florida.
At the end of this school term, this program will have awarded
$400,000 in college funds to 40 deserving young people.
DICK:
We also continued our support of Junior Achievement... not only
through events such as the Junior Achievement Bowl-A-Thon, which
raised pledges of 85,000 dollars for J.A. this year...
TOM:
But we're also supporting J.A. on a national level: April 18th,
together with local J.A. leaders, we will host J.A.'s Annual
National Business Hall of Fame Conference at the Yacht & Beach
Club.
This conference, chaired by Michael Eisner, will bring 1600 of the
nation's top business leaders to Central Florida for this
conference and hall of fame ceremonies.
DICK:
And we helped educate in a different way: We developed and produced
a live puppet show, that talks to elementary-school children about
the dangers of drug abuse.
It's already been seen by every third grader in the tri-county
area.
Here's a brief look at the show.
(VIDEO: DISNEY CREW)
DICK:
This program is working. We just received a letter from a third
grader, who said: "Dear Dude: I like when you sing your song, and
when you punch pot around. I've been taking some lately... thank
you -- you stopped me."
Signed,
"Your friend."
(PAUSE)
TOM:
Beyond education, our survey showed Central Floridians had other
concerns... many of them having to do with providing human
services.
We've stepped up our efforts here, too.
We're continuing our support of area organizations through the
Community Service Awards program, now in its 20th year.
We've included Seminole County for the first time, and for our 20th
anniversary year, we've increased the total awards to $300,000.
Since its beginning, this program has provided over two million
dollars to area organizations.
DICK:
We've also continued our support of the Arnold Palmer Children's
hospital at ORMC, through hospital programs and cash gifts...
And you've probably read and heard about the recent announcement,
regarding Florida Hospital's new Walt Disney Cancer Institute.
Not many people realize it, but this is a personal commitment from
Mrs. Walt Disney.
It provides additional support for an important cause... the health
and well-being of Central Floridians.
TOM:
Our cast members will be extending their service to the community,
as well.
This year we'll launch Mickey's Volunteers... this will be a
massive commitment of volunteer service to the community from our
cast members.
Beyond these efforts, we've worked for the betterment of Central
Florida in a number of ways:
For the second year we presented Disney Days at Lake Eola, which
attracted 65,000 Central Floridians to downtown Orlando for two
full days of fun.
This year's event is already scheduled for October 26th and 27th...
(PAUSE)
Working with the city of Orlando and the Magic, we went after and
got the 1992 NBA All-Star game, and Walt Disney World will be the
location for all events and celebrations, while the game will be
played downtown.
We're also supporting the city's efforts to bring the first SEC
Football Championship game to the area in 1992.
DICK:
One other thing we're proud to say, is that we've been working with
local leaders to improve the overall road system in the area.
As you may have seen in the paper recently, we are working closely
with Osceola County, the Reedy Creek Improvement District, and a
number of other private landowners to forge a unique public-private
partnership to develop Dart Boulevard across Osceola County.
As a major part of this, our company is supporting action by the
Reedy Creek Improvement District to make an annual payment of 1.5
million dollars towards meeting bond debt service, and to guarantee
those bonds.
Also over the past two years, we have been working cooperatively
with the Florida Department of Transportation,
the Orlando-Orange County Expressway Authority and several other
land owners, in obtaining approval for the extension of the
Southern Connector portion of the Orlando-area Beltway to I-4.
In seeking this approval, our company committed to fund up to 5
million dollars, and to donate approximately 120 acres of land for
road Right of Way.
The Beltway will have two interchanges in Osceola County -- one
with Dart Boulevard, and a second just south of US 192, which will
serve the 192 corridor.
Transportation solutions are something we should all be looking
at... A beltway is needed in this area, and we need to find a way
to make it happen quickly.
Look at Atlanta -- they've just finished work on their first
beltway... but they're already beginning on a second!
One that's 80 miles across!
That's the kind of planning we should be looking at for Central
Florida.
(PAUSE)
It's been a good year in so many ways... but it's been a trying
one, too.
The war brought tension and fear to many families here in Central
Florida, and throughout the world.
Everyone has done their part to support their neighbors and
families of those serving their country during this time, but we
had the joy of hosting over seven thousand family members of
service men and women for a weekend to get away from the fear and
worry during our Desert Shield Salute.
We've received many letters of thanks, and they've been rewarding.
But this was the best of all... watching the faces of the children
-- and the adults -- when they visited our special hospitality
center and posed for pictures with our characters. And thanks to
AT&T, they were able to fax messages and their pictures to their
loved ones in the Persian Gulf.
And you knew for just a moment they had forgotten the burdens they
were carrying.
TOM:
And in that same spirit, we're happy to announce that we are going
to continue our support of the military men and women who serve our
country.
Beginning April 1st, and continuing through Veteran's Day, we'll
give all active U.S. military personnel a day of free admission to
the Magic Kingdom or Disneyland in California.
They'll also be eligible for a special offer in our resorts here in
Florida.
(PAUSE)
DICK:
Thanks Tom...
I've been with this company for almost 36 years...
And the longer I'm with this great organization that Walt Disney
started, and Michael Eisner and Frank Wells are continuing, the
more I'm convinced the future of Walt Disney World -- and Central
Florida -- has never been brighter.
We're coming up on our 20th Anniversary...
I think of all the great things that 20 years here in Florida have
brought to us... and to the community, too.
We've gone from 5500 cast members in 1971, to 32,000 today, to a
projected 60,000 by the end of the Disney Decade.
That's a lot of employment, and a lot of opportunity we're happy to
provide.
(PAUSE)
It's been a great 20 years... We're looking forward to another
fantastic 20.
We want to close out this State of our World presentation... and
march into the year ahead with an appropriate salute to this great
country of ours... and the men and women who defend it.
This is the greatest country in the world, and there is a renewed
spirit.
For, this year, more than any we can remember... We're proud to be
Americans.
Thank you, and on with the show.
(LIVE ENTERTAINMENT SHOW; HIGHLIGHTED BY APPEARANCE OF LEE
GREENWOOD SINGING "PROUD TO BE AN AMERICAN")
--
ll // // ,~/~~\' David Rowley
/ll/// //l' `\\\ Mortice Kern Systems Inc.
/ l //_// ll\___/ 35 King Street North, Waterloo, ON, Canada N2J 2W9
O_/ 519/884-2251, FAX 519/884-8861, david@mks.com
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Title: Company Profile - DISNEY (FY90)
Source: MISG
Date Published: 30 SEP 1990
COMPANY DESCRIPTION
===================
Company Name: Walt Disney Co.
Headquarter Address: 500 South Buena Vista Street
City: Burbank
State: CA
Zip Code: 91521
Telephone: 818-560-1000
Number of Employees: 52,000
Duns Number: 006-90-4700
Ticker Symbol: DIS
Fiscal Year Ending: 9/30/90
Capital Expenditures: 1,249,300,000
Latest Sales: 5,843,700,000
Fortune Ranking: Services - 18
Primary SIC Code: 7996 Amusement parks
Business Description: Engaged in Family Entertainment Such as
Theme Parks and Resort Filmed
Entertainment Such as Production of Live
Action Motion Pictures, Animated Motion
Pictures and Original Television Products
Community Development Such As Commercial
and Industrial Properties, General Real
Estate Brokerage, Financing and Resort
and Property Management Services and
Consumer Products Such as Audio and
Computer Software Products for the
Educational Market.
Key Corporate Contacts:
Michael D. Eisner Chairman/CEO
Frank G. Wells President/COO
Judson Green Senior VP/CFO
Sharon Garrett Vice President/CIO
Corporate Highlights:
Walt Disney Company, together with its subsidiary companies, is
a diversified international company engaged in family
entertainment with operations in three business segments: theme
parks and resorts; filmed entertainment; and consumer products.
The Company owns approximately 28,000 acres of land located 15
miles southwest of Orlando, FL on which the Walt Disney World
Destination Resort is located. This operation includes the
Magic Kingdom, Epcot Center, the Disney-MGM Studios Theme Park,
Typhoon Lagoon, hotels and villas, a nightime entertainment
complex, a shopping village, a conference center, campgrounds,
golf courses, and other recreational facilities.
The Company owns 320 acres of land in Anaheim, CA, where one
will find Disneyland. The Company owns and operates the
Disneyland Hotel which is located near Disneyland, and operates
under leasehold interests the hotel Queen Mary and Spruce Goose
which are located in Long Beach, CA.
The Company earns royalties generated by the Tokyo Disneyland
park which is operated by an unrelated Japanese Corporation.
The Company is an equity investor in the Euro Disneyland Project
which is currently under construction near Paris, France.
Walt Disney Pictures and Television, a wholly-owned subsidiary
of the company, produces live-action motion pictures under the
Walt Disney Pictures name, the Touchstone Pictures name, and the
Hollywood Pictures name, formed in 1989. The Company
distributes its filmed products through its own distribution and
marketing companies in the United States and Canada. The
Company operates the Disney Channel and KCAL-TV in Los Angeles.
The Company also licenses and distributes throughout the world
the name of Walt Disney, its characters, its literary
properties, and its songs and music to various consumer
manufacturers, retailers, printers, and publishers. The Company
has direct retail distribution through the Disney Stores. Walt
Disney Company also produces audio products primarily for the
childrens market, produces film, audio, and computer software
products for the educational market, is a direct marketer of
educational toys, play equipment and classroom furniture for
children and is a direct publisher in Europe of a comic
magazine.
Subsidiaries:
Buena Vista Home Video
Buena Vista International
Buena Vista Pictures Distribution, Inc.
Buena Vista Television
Childcraft Educational Corp.
The Disney Channel
Disney Development Company
Disney Store Inc
EDL Holding Company
KHJ-Tv, Inc.
Lake Buena Vista Communities, Inc.
Reedy Creek Energy Services, Inc.
Walt Disney Imagineering
Walt Disney Pictures and Television
Walt Disney World Co.
WCO Parent Corp.
Corporate Structure:
I. WALT DISNEY COMPANY
II. THEME PARKS AND RESORTS
III. WALT DISNEY WORLD RESORT
IV. HOTELS
III. DISNEYLAND PARK
III. OTHER CALIFORNIA OPERATIONS
III. WALT DISNEY IMAGINEERING
II. FILMED ENTERTAINMENT
II. CONSUMER PRODUCTS
III. DISNEY STORES
III. CHILDCRAFT EDUCATION CORPORATION
III. CREATIVE CENTERS
FINANCIAL HISTORY
=================
Five Year Summary for Fiscal Year Ending September: ($ '000)
Year Sales Net Income Employees
---- ------------ ------------ ---------
1990 5,843,700 824,000 52,000
1989 4,594,300 703,300 47,000
1988 3,438,200 522,000 39,000
1987 2,876,800 444,700 31,000
1986 2,165,800 247,300 30,000
Summary Financials ($ '000)
Balance Sheet 9/30/90
-------------------------------------------- ------------
ASSETS
Total Current Assets 2,528,600
Net Property, Plant and Equipment 3,910,500
Other Assets 1,583,200
Total Assets 8,022,300
LIABILITIES
Total Current Liabilities 2,200,300
Long Term Debt 1,584,600
Miscellaneous Long Term Liabilities 748,800
Total Liabilities 4,533,700
Minority Interest N/A
Shareholders' Equity 3,488,600
Total Liabilities & Net Worth 8,022,300
Income Statement 9/30/90
-------------------------------------------- ------------
Net Sales 5,843,700
Cost of Goods 4,418,200
Gross Profit 1,425,500
Operating Expense 138,500
Interest Expense 43,100
Non-Operating Income & Miscellaneous Items 80,800
Provision for Income Tax 500,700
Net Income 824,000
Segment Sales and Operating Income ($ '000)
Operating
Major Business Segment Sales Income
----------------------------------------- ------------ ------------
FYE: 9/30/90
Theme Parks and Resorts 3,019,600 889,300
Filmed Entertainment 2,250,300 313,000
Consumer Products 573,800 350,600
FYE: 9/30/88
Theme Parks and Resorts 2,042,000 564,800
Filmed Entertainment 1,149,200 186,300
Consumer Products 247,000 133,700
FYE: 9/30/87
Theme Parks and Resorts 249,100 N/A
Filmed Entertainment 15,700 N/A
Consumer Products 1,000
- FOR INTERNAL USE ONLY -
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