This excerpt taken from the DIS 8-K filed Aug 1, 2007.
THE WALT DISNEY COMPANY REPORTS HIGHER THIRD QUARTER EARNINGS
BURBANK, Calif. The Walt Disney Company today reported earnings for the third quarter and nine months ended June 30, 2007. Diluted earnings per share (EPS) from continuing operations for the third quarter increased 14% to $0.58, compared to $0.51 in the prior-year quarter. Higher earnings for the quarter were driven by double-digit growth in operating income at the Media Networks, Parks and Resorts and Consumer Products segments. Net income for the prior-year quarter was favorably impacted by a $30 million net benefit associated with the completion of the Pixar acquisition ($0.01 per share). As discussed below, the Company completed the spin-off of its ABC Radio business during the quarter, and results from that business are now reflected as discontinued operations for both the current and prior-year periods.
Weve again achieved strong results by focusing on doing what we do best; building high-quality creative franchises across multiple platforms and multiple markets, said Disney president and chief executive Robert A. Iger.
The following table summarizes the third quarter and nine-month results for fiscal 2007 and 2006 (in millions, except per share amounts):
Results for the current nine-month period included gains on sales of the Companys interests in E! Entertainment and Us Weekly totaling $1.1 billion ($657 million after-tax or $0.31 per share) and an equity-based compensation plan modification charge of $48 million ($30 million after-tax or $0.01 per share) associated with the ABC Radio transaction, all of which were recognized in the first quarter of fiscal 2007.
In addition to the gain related to the Pixar acquisition, the prior-year nine-month period also included gains on sales of a Spanish cable equity investment and Discover Magazine totaling $70 million ($44 million after-tax or $0.02 per share), both of which were recognized in the first quarter of fiscal 2006.
Collectively, these items increased EPS for the current and prior-year nine-month periods by $0.30 and $0.04, respectively. Excluding these items, EPS from continuing operations in the current nine-month period increased 24% to $1.50 from $1.21 in the prior-year nine-month period.