Mickey Does Minneapolis

[crazy4wdw]

Mickey Does Minneapolis
By Rick Aristotle Munarriz, The Motley Fool
January 10, 2005

While most companies save their suspenseful moments for the announcement of their quarterly financials, Disney (NYSE: DIS) has added a little bit of a geographic mystery to the mix by taking its annual shareholder meetings on the road.

For decades, the company's yearly reviews rotated between two sites -- next to its Disneyland theme park in Anaheim, Calif., or inside Florida's Walt Disney World. Then, after it acquired Capital Cities/ABC back in 1996, Disney broke up the routine by shifting the meeting one year to ABC's base in New York. It made sense. These days, media networks are Disney's largest contributor. In fiscal 2004, the company's broadcasting business generated $2.2 billion in operating profits, nearly twice what it produced in its flagship theme-park business.

However, as the company's performance began to be overshadowed by growing shareholder dissent over its performance, the annual road show began to make some inexplicable stops. Because the company's fiscal year ends in October, its annual meetings have been held during the chilly days of late winter. That's why Florida and Southern California made perfect sense in the past. From Colorado to last year's tumultuous meeting in Pennsylvania to next month's meeting in Minnesota, the company's last few shareholder meeting sites have been beautiful cities with often-unforgiving wintry blasts. Why? Was it to reach out to more of its investing base?

Cynics would quickly note that Disney's frigid meeting locales over the past few years have taken place just as investors have tired of its current regime. Rather than use its own theme-park turf to face miffed shareholders wielding questions about earlier quality lapses, it has hit the road. But it's hard to fathom, say, Warren Buffett moving his Berkshire Hathaway (NYSE: BRKa) meetings out of Omaha after an off year -- and this time Disney is coming off a spectacular year.

With all four segments posting healthy gains as the company generated as much free cash flow as in the two previous years combined, Disney will have plenty to sing about. If resentment toward CEO Michael Eisner lingered, he made it moot after he revealed that he will step down next year. While the company still has some hard questions to answer when it comes to moves by Pixar (Nasdaq: PIXR) and Comcast (Nasdaq: CMCSA) over the past year, it's in pretty good shape right now.

Yet investors have a right to wonder why their company is paying to fly its executives and its meeting assistants around the country, when staying close to its theme parks would be more lucrative. Disney could make money from overnight guests and from those who would stick around for a meal or two, so why would it surrender the income that staying on its property would offer? Two of Disney's Florida hotels have conference-center facilities, while the Grand Californian in Anaheim does, too. How can Disney pitch itself as the appropriate site for corporate conventions when it won't eat its own cooking?

If capacity is an issue, Disney has a beautiful 7,500-seat ballpark within its Walt Disney World complex in Florida.

Disney is banking on Disneyland's massive 50th-anniversary celebration to produce a stellar fiscal 2005, yet the company will be pointing to the celebration all the way from Minneapolis. Unless the company plans to announce the acquisition of Minneapolis' Rainforest Cafe restaurant chain from Landry's (NYSE: LNY) or that it is taking over the management of Cedar Fair's (NYSE: FUN) Camp Snoopy indoor amusement park in the Mall of America, shouldn't Disney be closer to its home base of assets? After all, Mickey prefers warm weather.

 

[scoutsmom99]

Thanks for the post I had no idea they were coming here

 

[MickMan]

Does anyone know where in MPLS this will take place? I have one share of stock.

and how do I get into this meeting?

Thanks!

 

[crazy4wdw]

Info. from the Disney Shareholder Relations Site:

The Board of Directors of The Walt Disney Company has set the date and location of the Company's 2005 annual meeting of shareholders. The meeting will be held on Friday, February 11, 2005 at the Minneapolis Convention Center, 1301 Second Avenue South, Minneapolis, Minnesota.

Q: What time will the meeting begin?

A: The meeting will begin promptly at 10 a.m. Registration will begin at 8 a.m.

Q: What time will the doors to the Convention Center open?

A: The doors to the seating area will open at 9 a.m.

Q: Will I need a ticket to enter the Meeting?

A: Yes. Registered (or certificated) shareholders as of the record date for the meeting (December 17, 2004) will receive proxy materials that contain a proxy card, the Company's annual report, and a ticket to the meeting. Mailing of proxy materials began in early January 2005. The ticket must be presented at the Convention Center.

Q: I hold my shares through a broker. How do I enter the meeting?

A: "Street name" (or brokerage firm) holders must bring a recent brokerage statement confirming ownership of Disney shares. Please note that you will not be admitted without this documentation. Street name holders will receive proxy materials directly from their brokerage firm.

Q: Will I need to bring identification?

A: Yes, each shareholder must provide valid photo identification such as a driver license or passport that corresponds to the ticket (or brokerage statement) he or she is presenting for entry.