Boxoffice (Apr-Jun 1962)

MGM Half-Year Earnings Dip But Vogel Optimistic MCA Offers Terms For Decca Merger NEW YORK — The fii’st step to a possible mergei' of MCA, Inc., and Decca Records, the pai'ent company of Universal Pictures, was made Monday (16) when MCA submitted a proposal for the exchange of MCA stock for all of the outstanding capital stock of Decca. This move was indicated a week earlier when Milton R. Rackmil, Decca president, told the stockholders of both Decca and Universal that MCA might submit its proposal “any day.” Rackmil and Lew R. Wassennan, MCA president, announced that the proposed exchange of stock would be on the following basis: “For each share of Decca, there will be offered one share of new MCA convertible, voting prefen-ed stock plus one-third share of MCA common stock. The preferred will pay $1.50 annual cumulative dividend, and each shai-e will be convertible into one-half share of MCA common. This no par convertible voting preferred stock will ibe callable at, and entitled on liquidation, to $32 per share.” The statement said that the offer would be subject to acceptance by holders of at least 80 per cent of Decca’s outstanding stock, the approval by the holders of a majority of the outstanding stock of MCA, the customary requirements for registration, stock exchange listing and opinions of counsel. It was stated that tax counsel had advised that if the exchange offer became effective in accordance with its tenns, there would be no taxable gain on such exchange to the Decca shareholders. After registration with the Securities and Exchange Commission, the offer will be submitted to Decca stockholders via a prospectus. Decca’s board has approved the MCA terms and has recommended its acceptance by Decca stockholders. Decca stock has ranged this year from a high of 51^4 to 38%. MCA has ranged from 63% to 78"%. Leo Gutman Named Para. Advertising Manager NEW YORK — Leo A. Gutman has been appointed advertising manager of Paramount Pictures by Martin Davis, director of advertising, publicity and exploitation. Davis said Gutman was an executive with broad experience in the entertainment field and had resigned as director of advertising and sales promotion for Ziv-United Artists Television to accept the new post. Associated with Ziv for the last 15 years, Gutman previously operated his own advertising agency in Cincinnati. Gutman will assume all responsibility for the administration and creation of Paramount’s advertising program. In addition, he will work closely with Lennen & Newell, Paramount’s advertising agency. Jeff Livingston Named V-P of Mirisch Co. HOLLYWOOD — Jeff Livingston has been appointed vice-president and national director of advertising of the Mirisch Co. by Harold J. Mirisch, president. He will assume the duties formerly handled by Leon Roth, who has fonned his own company to produce films in association with the Mirisch organization. Livingston will start his new post on May 7, thus ending a 15 -year association with Universal Pictures where he currently is executive coordinator of sales and advertising. The new Mirisch executive began his film career in 1937 in the publicity department of Metroy-Goldwyn-Mayer. After five years, he left to serve in the U. S. Army Air Force and re-entered the industry in 1946 via the J. Arthur Rank Organization, coordinating the roadshow release of “Henry V” through United Artists and then “Hamlet” through Universal. Livingston will make his headquarters at the Mirisch offices at the Samuel Goldwyn Studios in Hollsnvood. Louise Fazenda Is Dead; Famed Comedienne HOLLYWOOD — Louise Fazenda, famed film comedienne and wife of Paramount producer Hal Wallis, died April 17 at the age of 67 following a cerebral hemorrhage. Services were conducted by Rabbi Morton Bauman, with interment in Ingelewood Park Cemetery. Born in Lafayette, Ind., Miss Fazenda started her career with Mack Sennett while in her teens. She later joined Warner Bros., with whom she had a long association, and also was active at Paramount, First National and MGM as one of the foremost stars of her time. In addition to Wallis, to whom the actress was married in 1927, she is survived by a son, Brent, a psychologist living in Florida. Jack Kuhn of MGM Dies NEW YORK — Funeral services for Jack Kuhn, a member of MGM’s home office publicity department, were held Friday <20) at the Schwartz Funeral Parlor in the Bronx. Kuhn, who was 51, died April 18. He had been with MGM since 1927. S. C. Theatre Joins TOA NEW YORK — Kenneth Richardson of Seneca, S. C., has enrolled his Oconee Theatre in Theatre Owners of America membership. NEW YORK — Metro-Goldwyn-Mayer’s half-year earnings dropped from those of the prior year, but Joseph R. Vogel, president, in a report to stockholders, said that the pictures scheduled for the balance of the fiscal year would re-establish the favorable trend of film rentals and earnings. The net profit for the 28 weeks ended March 15 was $2,553,000, or $1 per share, compared with $6,684,000, or $2.65 per share, in the corresponding period a year ago. Vogel said it was the company’s firm judgment that earnings this year would amply support the $2 annual dividend rate. Earnings for the second quarter of the current fiscal year amounted to $380,000, or 15 cents per share, as compared to $4,507,000, or $1.78 per share, in the second period of the previous year. In his report, which was accompanied by a 50-cent dividend check, Vogel said the falloff in the second quarter was due primarily to two factors: first, the writeoff of the anticipated loss on “The Fom* Horsemen of the Apocalypse,” and, second, the late completion and postponement of the receipt of income from “Mutiny on the Bounty.” Vogel said “The Fom* Horsemen” had met with difficulties during production abroad and that a major portion of the picture had to be completed in California at increased costs over budget. He said despite its boxoffice worth, the returns could not match the cost of production and that in accordance with accounting policy, the anticipated loss had been written off. “Mutiny on the Bounty,” Vogel said, had been completed and that previews had convinced executives of its worldwide boxoffice appeal. These two pictures plus the two Cinerama productions, “How the West Was Won” and “The Wonderful World of the Brothers Grimm,” along with other features, will mean earnings growth, Vogel said. Loew's Earns $L 168,000 In Half of Fiscal Year NEW YORK — Net earnings of Loew’s Theatre for the 26 weeks ended February 28 amounted to $1,168,000, or 44 cents per share, after providing for income taxes of $1,247,000 and depreciation of $1,505,000 on gross revenues of $20,205,000. For the comparable period last year, gross revenues were $17,553,000 and the net income was $953,700. The net income for the second quarter of the fiscal year, ended February 28, was $640,200, equal to 24 cents per share, and for the comparable quarter last year was $549,900, equal to 21 cents per share. Laurence A. Tisch, chairman of the board, said that during the current quarter the sale of radio station WMGM for $10,950,000 was consummated and that after deducting related income taxes of $2,810,000, a net gain of $7,630,000 was realized, equal to $2.85 per share. Leo A. Gutman Jeff Livingston BOXOFFICE :; April 23, 1962 7