The Walt Disney Company Board Decides to Forgo Next Semi-annual Cash Dividend
May 05 2020 - 5:03PM
Business Wire
The Walt Disney Company (NYSE: DIS) Board of Directors today
announced that it will forgo payment of a semi-annual cash dividend
for the first half of fiscal 2020, given the significant
operational and financial disruption caused by COVID-19.
The Board’s action is one of several measures the Company has
taken in the wake of the pandemic, including reducing capital
spending, cutting salaries for senior management, and making the
difficult decision to furlough employees. By not issuing a
semi-annual dividend, the Company will preserve about $1.6 billion
in cash, based on the 88 cents a share previously paid to
shareholders in January.
Forward-Looking
Statements
Certain statements and information in this communication may be
deemed to be “forward-looking statements” within the meaning of the
Federal Private Securities Litigation Reform Act of 1995, including
statements identified by the word “will” or similar words and other
statements that are not historical in nature. These statements are
made on the basis of management’s views and assumptions regarding
future events and business performance as of the time the
statements are made. Management does not undertake any obligation
to update these statements.
Actual results may differ materially from those expressed or
implied. Such differences may result from actions taken by the
Company, including restructuring or strategic initiatives
(including capital investments, asset acquisitions or dispositions,
integration initiatives and timing of synergy realization) or other
business decisions, as well as from developments beyond the
Company’s control, including:
- changes in domestic and global economic conditions, competitive
conditions and consumer preferences;
- adverse weather conditions or natural disasters;
- health concerns;
- international, regulatory, political, or military
developments;
- technological developments; and
- labor markets and activities;
each such risk includes the impacts of, and is amplified by,
COVID-19 and related mitigation efforts.
Such developments may affect entertainment, travel and leisure
businesses generally and may, among other things, affect:
- the performance of the Company’s theatrical and home
entertainment releases;
- the advertising market for broadcast and cable television
programming;
- demand for our products and services;
- construction;
- expenses of providing medical and pension benefits;
- income tax expense;
- performance of some or all company businesses either directly
or through their impact on those who distribute our products;
and
- achievement of anticipated benefits of the TFCF
transaction.
Additional factors are set forth in the Company’s Annual Report
on Form 10-K for the year ended September 28, 2019 under Item 1A,
“Risk Factors,” Item 7, “Management’s Discussion and Analysis,”
Item 1, “Business,” and subsequent reports, including, among
others, quarterly reports on Form 10-Q and Current Reports on Forms
8-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20200505006058/en/
Media Contacts: Zenia Mucha zenia.mucha@disney.com (818)
560-5300
David Jefferson david.j.jefferson@disney.com (818) 560-4832
Investor Contact: Lowell Singer lowell.singer@disney.com
(818) 560-6601
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