Boxoffice (Oct-Dec 1963)

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TO INVOLVE 22 THEATRES Robert H. O’Brien Big MGM Loss in 'S3; New Year Brighter NEW YORK — Although Metro-GoldwynMayer had a loss of $17,479,000 for the fiscal year ended last August 31, Robert H. O’Brien, president, in his report to stockholders, said a return to profitable operations in the 1963-64 fiscal year was expected and results in the first quarter confirmed that expectation. O’Brien, who has been president since January, added that in the light of plans and the pictures to be available for release, the current fiscal year could be one of the best in earnings in the company’s history. Largely because of the good prospects, the board of directors has maintained the payment of quarterly dividends. The 1963 loss compares with a profit of $2,589,000, or $1.01 per share, in the 1962 fiscal year. O’Brien reported that while MGM’s television and music operations continued to generate substantial profits last year, heavy losses were incurred in feature film production and distribution. There were severe losses in a few high-budget productions and, while some of these pictures earned grosses which reflected wide popular acceptance, the amounts taken in were unsatisfactory in view of high production and distribution costs. In line with policy all such losses were written off. In his letters to shareholders, O’Brien said increasing emphasis had been placed upon the creation of a balanced inventory of pictures, both as to cost and subject matter. Creative and showmanship elements continued to be stressed, he said, but new emphasis was being placed on the budgeting and controlling of costs of each picture in relation to the revenue potential. In order to fortify the inventory and provide a supply of pictures to support a proper release schedule, MGM also had stepped up the acquisition and development of new properties. O’Brien said 27 pictures were scheduled so far for release in 1963-64 and 24 were scheduled for production for release in 1964-65. O’Brien said operating and administrative costs were continuing to be reviewed and steps undertaken in the strengthening of the distribution organization. Unlike the last year or two, O’Brien said, prospects in film production-distribution were not as dependent on one or two big pictures with disproportionately heavy negative costs. Vulnerability to drastic losses from a few pictures is reduced “to the minimum of normal risk inherent to our business.” Glen Alden Pays Extra NEW YORK — Glen Alden Corp., of which RKO Theatres is a subsidiary, has declared an extra dividend of 20 cents per share, in addition to the regular quarterly dividend of 12% cents a share, both payable out of earned surplus January 14 to holders of record December 31. MGM to Launch Showcase Plan in N.Y. Jan . 22 NEW YORK — A new distribution pattern, similar to that of United Artists’ Premiere Showcase plan, will be initiated in the Greater New York area by MetroGoldwyn-Mayer on January 22. At a meeting with the tradepress here December 2, Morris Lefko, vice-president and general sales manager, said that on that date approxi Morris Lefko mately 22 theatres would inaugurate what he termed the MGM Showcase Picture Policy which would take MGM product not only to a number of de luxe neighborhood theatres, but would penetrate even deeper into the key suburban theatres of the outlying areas. While the plan now will be limited to New York, the release pattern in other territories could be changed where and when deemed advisable, Lefko said. The first picture to be released under the new setup will be “The Wheeler Dealers,” to be followed by “Sunday in New York.” “The Wheeler Dealers” currently is playing Radio City Music Hall, but “Sunday in New York” will go out on the showcase circuit without a prior run. Lefko said that, if an MGM picture were booked at the Music Hall, it would follow on the showcase route; otherwise, the film would go immediately over the showcase course. HOUSES NOT SELECTED The new arrangement, Lefko said, possibly would bring the RKO and Loew’s circuits’ theatres into the pattern. He said there had been discussions with the executives of both chains, but he added that the 20 theatres in the proposed network had not been selected. Lefko said the departure in the MGM distribution policy was dictated by the increasing importance of the neighborhood and suburban theatres to the habits of the public. It was decided, therefore, he said, “that we would bring this fine lineup of MGM product to the public as quickly and as conveniently as possible; hence, the birth of the new MGM distribution pattern for the Greater New York area.” Upcoming product was discussed by Lefko following his announcement of the showcase plan. He said MGM would release approximately 30 pictures in the 1963-64 season and that the program was loaded with quality pictures. “How the West Was Won” will be released in 35mm versions in June, although the picture will open in a few selected spots at Easter. Lefko said he did not contemplate setting any first-run engagements, indicating that the picture probably would go directly to the subsequents. Lefko was particularly high on “Sunday in New York” and “Kissin’ Cousins,” the latter an Elvis Presley picture for which 500 prints already had been ordered. However, he said the Easter release had received so many bookings that the print order may have to be increased. Some of the highest bids received in a long time had been made for “Sunday in New York.” “The Seven Faces of Dr. Lao,” Lefko said, was of Music Hall caliber and the picture will be screened for Russell Downing, the Hall’s president. The entire MGM organization, he said, was enthused over the coming program. The enthusiasm was in evidence during the recent meetings of sales and promotion men with production personnel at the studio. He said that, for the first time, the sales department was being consulted on production matters and casting. DUBBING FRENCH FILM The French production, “Any Number Can Win,” which MGM is releasing, will “go commercial,” Lefko said. Currently, it is playing the art house circuits, but is being dubbed for regular theatres. A subtitled version, however, will play the Exeter Theatre in Boston. MGM’s 35-minute trailer of forthcoming pictures, which was shown at the Theatre Owners of America convention here in October, will be sent to the branches for showing to local exhibitors. Lefko and other MGM executives left for London and Paris on Tuesday (3) to look at pictures being made overseas, particularly “Night Must Fall.” Making the trip were Robert O’Brien, president; Maurice Silverstein, foreign distribution chief; Dan Terrell, executive director of advertising, publicity and exploitation, and Clark Ramsay, assistant to the president in charge of marketing. WB Consolidated Net Hits $5,699,000 for Year NEW YORK — Warner Bros. Pictures reports a consolidated net income of $5,699,000 for the year ended Aug. 31, 1963, compared with a consolidated net income of $7,566,000 for the fiscal year ended Aug. 31, 1962. The 1963 figure represents $1.17 per share on the 4,850,052 shares of common stock outstanding at that date, compared with $1.56 per share on the 4,830,052 shares outstanding in August 1962. Theatrical and television film rentals, sales, etc., amounted to $87,129,000, dividends from foreign subsidiaries not consolidated were $734,000 and profit on sales of capital assets was $5,000 for the year ended Aug. 31, 1963, as compared with $79,864,000, $684,000 and $117,000, re spectively, for the year ended Aug. 31, 1962. Net current assets at Aug. 31, 1963 were $51,870,000 (including $11,205,000 cash) and debt due after one year was $6,571,000 compared with $48,331,000 (including $11,732,000 cash) and $6,126,000, respectively, at Aug. 31, 1962. BOXOFFICE :: December 9, 1963 5