Boxoffice (Apr-Jun 1947)

FPC and United Circuits Report Profit Increases MPTA Wants to Scan Individual Contracts TORONTO — The Motion Picture Theatres Ass’n of Ontario wants to see the individual film rental contracts of Canadian distributors before they are put into effect for next season, according to a statement by N. A. Taylor in behalf of the exhibitors organization. The Motion Picture Distributors Ass’n of Canada had announced that the standard contract form was to be discarded for individual rental agreements following the dispute last fall in which circuits and other exhibitors objected to the revised terms for percentage pictures. Taylor, who was chairman of the Exhibitors Protective Committee, said his association wanted to study each new contract form for possible objections and threatened that the MPTA findings would be passed on to the theatre owners for their guidance. The revised standard contract last year permitted distributors to collect a share of candy and other subsidiary revenue during the playing time of a sharing picture. The distributors association eventually allowed its members to deal individually with exhibitors on percentage terms and the deadlock was broken. Halifax 'Underseated'; But Not for Too Long HALIFAX — There is a threat of “underseating” in Halifax this year. The Community is being demolished and a new theatre being built on the spot; the Orpheus will be razed and the successor will occupy far more space; the Garrick will be shuttered during a radical improvement program; the Casino will also close for a complete redecorating job and alterations. The Family was closed for about 11 days, while a new projection booth was built. The new Community will not be ready for business before midfall; the new Orpheus, in late December or January. Audio Films to Move Soon To New Toronto Studio TORONTO — Audio Films, Ltd., Toronto, a film production company which is linked with Film Laboratories of Canada, soon will occupy its new studio building on the Lake Shore highway a short distance west of the city limits. For a number of years Audio Films has occupied premises adjacent to Film Laboratories in the building at 352 West Adelaide St. but will now have a distinct plant which has been planned for studio purposes. Audio produces theatre shorts and commercial films, the latter for industrial companies. I. H. Allen of Astral Films Organizes 16mm Co. TORONTO — I. H. Allen of Toronto, who has made considerable progress during the last year with his Astral Films, independent distributor, has announced the formation of a second company, Granada Films, for the distribution of 16mm product. The initial releases comprise British and Canadian films, the first being “Children on Trial” and “School for Danger,” both from England. Allen has opened branch offices in six key film centres in the Dominion. New Pincher Creek House PINCHER CREEK, ALTA.— Del Fox, who operates the Fox Theatre here will erect a new house this summer. The Fox will be turned into a dance hall. TORONTO — Famous Players Canadian Corp., in its 27th annual report to shareholders issued April 10, announced net profits for 1946 reached an all-time high of $2,836,066.90 after providing for income and excess profits taxes of $2,135,000. The net is equal to $1.63 on each of its 1,737,072 common shares outstanding. Net profits for 1945 were $1,594,973, equivalent to 91 cents a share. The surplus account was credited with $1,867,441.04 after payment of 1946 dividends totaling $1,138,550, thus making earned surplus of $11,362,113, against $7,798,266 at the close of 1945. CURRENT ASSETS Net working capital last December amounted to $7,984,428, which compares with $2,544,192 one year previously. Current assets totaled $8,456,242 and current liabilities were $471,814. In the current assets, cash was listed at $2,237,845.45, call loans at $3,340,000 and Dominion of Canada and province of Ontario bond investments totaled $1,384,500. Fixed assets, representing land, buildings and equipment, totaled $10,870,883.48 after allowance for depreciation. The capital stock of common shares is listed at $10,764,890 under the heading of liabilities and capital. Operating profit of $5,599,284 compares with $5,123,790 in 1945. TEN THEATRES BEING BUILT In his report to shareholders, President J. J. Fitzgibbons said that 375,000 new common shares had been sold a year ago and, as a result, bond, mortgage and other debt of the company, amounting to more than $5,500,000, had been entirely paid off. He pointed out that the company had ample funds to improve existing properties and to invest in new theatres, of which ten were now under construction. New theatres are planned for Chilliwack and Kelowna in British Columbia; Port Arthur, Peterboro and Toronto in Ontario; Rouyn in Quebec, and at St. John and New Waterford in the eastern maritime provinces. Because of existing conditions, capital expenditures had been postponed wherever possible. Candy Bars at 8 Cents Absorb Price Squawks Calgary — Raising of admission prices in Alberta came at a fortuitous time for theatre operators. At the same time as admission prices went up, costs also increased on many other items. The public seemed to vent most of its displeasure at the boost in the cost of candy bars from 5 cents to 8 cents. This plaint and grousing over other increases absorbed resentment that might otherwise have been directed at the raise of a few cents in theatre prices. The public knowledge that theatre prices include a 30 per cent tax was another factor in the theatres’ favor. Exhibitors report that objections voiced at the boxoffice were confined to a few sarcastic remarks about the times in general, with no violent abuse or resentment of theatres. MONTREAL — Substantially increased operating and total income and net profits in 1946 are shown in the annual report of United Amusement Corp. for the -year ended Dec. 31, 1946. Theatre operating profits were $1,396,170 against $1,198,422 in 1945. Other income of $138,929 brought total income to $1,535,099 compared with $1,329,413 in the previous year. Depreciation allowance was $107,212 against $101,773. Total taxes of $970,689 included income and excess profits taxes of $267,914. In 1945, total taxes were $904,696, with income taxes totaling $285,094, of which $33,340 was refundable. $3.15 A SHARE PROFIT Net profit for 1946 was $254,899, equal to $3.15 per share on the combined A and B stock. This compares with $140,673 or $1.74 per share in 1945, exclusive of the refundable tax, which was equal to 41 cents a share. Dividends of $1.25 per share were paid, requiring $101,036, same as in 1945. Earned surplus was increased from $373,902 to $527,764. The balance sheet as at Dec. 31, 1946, shows current assets of $670,362, including cash of $433,147, Dominion bonds of $150,000 and accounts receivable of $40,866. Current liabilities were $202,670, indicating net working capital of $467,692, compared with $530,158 in 1945. Fixed assets, less depreciation, are shown at $1,852,053 as at the close of 1946, against $1,926,164 a year before. Depreciation reserve deducted was $1,655,473 against $1,558,975. Investments in associated enterprises increased from $658,756 to $918,639. CORPORATION EXPANDING In the directors’ report, signed by Ernest A. Cousins, president, it states that from funds of the company, interests have been secured in a number of theatres and provision has been made for costs of present new buildings without the need for any additional financing. During the year the corporation obtained substantial interests in the Cartier and Empire theatres in Quebec City, in the new Ahuntsic theatres in Ahuntsic, the new Normandie in Ville St. Laurent, the Avenue Theatre, Westmount, now under construction, and which will be opened shortly. With its associates in the Empire, Cartier and Avenue theatres the company is building a new theatre in Limoilou, Quebec. Work was started on the company’s new theatre at Cote des Neiges roads which it is hoped will be in operation this year. Eastern Theatres Reports Net Profit of $103,780 TORONTO — Eastern Theatres, Ltd., a subsidiary of Famous Players Canadian Corp. which operates the Imperial here, largest theatre in Canada, has reported a net profit for 1946 of $103,780, compared with $60,625 in the preceding calendar year. Earned surplus at the end of the year stood at $313,357, compared to the previous total at $225,006. Net working capital was $179,745, much higher than at the close of 1945. Operating profit before depreciation and income and excess profits taxes stood at $240,216, compared with $219,986 in December 1945. Taxes in 1946 were considerably lower at $133,633. The Imperial seats 3,373 persons. BOXOFFICE :: April 19, 1947 K 107