Ogden to Sell Entertainment, Aviation Units

Ogden Corp., a struggling New York conglomerate that manages a spate of Orange County sports and entertainment venues, said Friday that it will sell its entertainment division to focus on its energy business.

The company also disclosed that third-quarter profits won’t meet expectations, that its chief executive resigned and that it will scrap dividend payments.

The news sent Ogden shares, which have been steadily falling since the end of August, into a tailspin.

The stock was the largest percentage loser on the New York Stock Exchange on Friday, tumbling 35%, or $6.75, to $12.75.

Ogden said that Chairman and Chief Executive Richard Ablon would step down immediately to “pursue his long-standing career interests in the entertainment and aviation areas.”

The company also is putting its aviation business on the block.

In Anaheim, Ogden owns and manages the Sun Theater, formerly Tinseltown. Ogden also manages the Arrowhead Pond of Anaheim, home of the Mighty Ducks, the concession contract at Edison Field, home of the Angels, and has agreed to manage the Gotcha Glacier, a proposed indoor surf and snowboard park adjacent to Edison Field. Ogden has no stake in financing the Glacier.

Ogden also manages other Southland attractions, including the Raging Waters aquatic theme park in San Dimas and the American Wilderness theme restaurant in Ontario.

The company employs more than 1,500 full- and part-time workers in Orange County, said Tim Ryan, executive director of Ogden’s West Coast operations. “As of right now, I don’t think our focus is going to change,” Ryan said. “We have events to book and facilities to operate. We’re going to do that at the highest level possible.”

The company, which has posted declining profits for the last two quarters, did not specify the extent of the earnings shortfall. Wall Street had pegged Ogden’s earnings at 64 cents a share for the quarter ended Sept. 30, compared with 55 cents in the same year-ago period, according to research firm First Call/Thomson Financial.

Ogden said Scott Mackin, executive vice president of Ogden and president and chief operating officer of its energy business, has been named chief executive and president of the company and a member of its board.

Ogden said George Farr, former vice chairman of American Express Co. and a current Ogden director, has been elected as nonexecutive chairman of the board.

In March, Ogden said it planned to split its aviation and entertainment units into one publicly traded company and its energy unit into another. Ogden said it now aims to sell its entertainment division, which should pull in about $500 million in revenue in 1999, and its aviation unit, which should have roughly $250 million in revenue.

“The board and, frankly, I no longer believe that entertainment and aviation would make attractive stand-alone public companies,” Mackin said in a conference call. “In particular, they are too small and really financially constrained to meet their growth objectives.” He said several parties had expressed interest in buying the units but gave no further details.

The entertainment unit has interests in food and beverage concessions, theme parks and artist management, while the aviation sector provides cargo handling, fueling and airport infrastructure development and management.

Mackin said the unit sales will allow Ogden to focus on its energy division, which should generate $800 million in revenue. The energy unit owns and operates 59 energy projects with more than 2,300 megawatts of capacity. Mackin said Ogden has 8,400 megawatts of capacity in development and is exploring further growth in Asia, Europe and South America.

“We have established a tremendous track record [with the energy unit],” Mackin said. “We turn away more opportunities by far than we seek. Probably our rate has been to turn away over 90% of the opportunities that come our way.”

Ogden said it will talk with lenders to request covenant waivers and other changes in order to expedite the sale process. The company also said it is eliminating its quarterly dividend, aiming to improve its cash flow and help growth in its energy business.

Times staff writer Bill Shaikin and Reuters contributed to this report.