Disney(US:DIS)2024-02-06 16:00Financial Performance - Net income for the quarter ended December 30, 2023, was $2,151 million, compared to $1,361 million for the same period in 2022, representing a 58% increase[7] - Comprehensive income attributable to Disney for the quarter was $1,701 million, up from $920 million year-over-year, indicating an increase of 85%[7] - Cash provided by operations was $2,185 million, compared to a cash used in operations of $(974) million in the same quarter last year, indicating a turnaround in operational cash flow[11] - The company reported a net income before income taxes of $2,871 million, compared to $1,773 million in the prior year, reflecting a year-over-year increase of 62.2%[29] - Net income attributable to Disney increased to $1.9 billion, up 49% from $1.3 billion in the prior-year quarter[97] - Diluted earnings per share (EPS) attributable to Disney rose to $1.04, a 49% increase compared to $0.70 in the prior-year quarter[97] Assets and Liabilities - Total current assets decreased to $25,971 million from $32,763 million, a decline of approximately 21%[9] - Cash and cash equivalents dropped significantly from $14,182 million to $7,192 million, a decrease of about 49%[9] - Total assets decreased from $205,579 million to $197,774 million, reflecting a reduction of approximately 4%[9] - Current liabilities remained relatively stable at $31,033 million compared to $31,139 million in the previous quarter[9] - Total equity increased from $103,957 million to $105,501 million, showing a growth of about 1.5%[9] - The company reported a reduction of borrowings by $(309) million, down from $(1,000) million in the same quarter last year, indicating improved debt management[11] Revenue and Segment Performance - Total segment revenues for the quarter ended December 30, 2023, were $23,549 million, a slight increase from $23,512 million in the same quarter of 2022, representing a growth of 0.2%[25] - Segment operating income for the quarter was $3,876 million, up from $3,043 million year-over-year, indicating a significant increase of 27.5%[25] - The Entertainment segment generated revenues of $9,981 million, a decrease of 6.5% from $10,675 million in the prior year[25] - The Sports segment reported revenues of $4,835 million, an increase of 4.2% compared to $4,640 million in the same quarter of 2022[25] - The Experiences segment achieved revenues of $9,132 million, up 6.9% from $8,545 million year-over-year[25] Investments and Capital Expenditures - The company paid $8.6 billion to NBC Universal for the acquisition of its 33% interest in Hulu LLC, reflecting a significant investment in its streaming strategy[18] - Total investments in parks, resorts, and other property amounted to $1,299 million, an increase from $1,181 million in the prior-year quarter[198] - The company anticipates fiscal 2024 capital expenditures to reach approximately $6 billion, up from $5 billion in fiscal 2023[198] Cash Flow and Liquidity - Cash used in investing activities was $(1,246) million, slightly improved from $(1,292) million in the same quarter last year, indicating a more efficient investment approach[11] - Cash and cash equivalents at the end of the period were $7,247 million, down from $8,516 million at the end of the previous year, indicating a decrease in liquidity[11] - The company's cash and cash equivalents decreased by $6,988 million, compared to a decrease of $3,145 million in the prior-year quarter[191] Operating Expenses and Costs - Cost of services decreased by 6%, or $0.9 billion, to $13.9 billion, primarily due to lower programming and production costs[100] - Total programming and production costs decreased by 21% to $943 million, reflecting fewer hours of scripted programming[129] - Operating expenses for the Experiences segment increased by 8% to $4,480 million, primarily due to inflation and increased costs for new guest offerings[184] Shareholder Returns - A cash dividend of $0.30 per share, totaling $549 million, was declared on November 30, 2023, and a new share repurchase program targeting $3 billion in fiscal 2024 was authorized[64] Tax and Legal Matters - The effective income tax rate increased to 25.1% from 23.2% in the prior-year quarter due to adjustments related to prior years[105] - The company is currently involved in various legal actions, including a securities class action lawsuit, but cannot reasonably estimate the potential loss at this time[73] Other Financial Metrics - Interest expense for the quarter was $246 million, a decrease from $300 million in the same quarter of the previous year[29] - The company reported unrealized losses of $(277) million during the quarter ended December 30, 2023, compared to $(475) million for the same period in 2022[66] - The balance of accumulated other comprehensive income (loss) at December 30, 2023, was $(4,194) million, compared to $(5,484) million at December 31, 2022, showing an improvement[66]