Independent Exhibitors Film Bulletin (1961)

FINANCIAL ROUND-UP Movies Up Slightly, but Investors 'Coo/' Movie stocks moved up slightly, but lagged behind the sharp advances made on the overall market. The attitude of investors continued "cool" toward cinema issues — as well as other socalled "glamour" stocks — as traders switched their interest to more solid blue chips following the inflationary implication of President Kennedy's call for increased defense and spending. Movie trading was relatively light. 11 film and theatre stocks made advances during the July 20August 3 span, the largest recorded by American BroadcastingParamount, which jumped 2l/g points, concurrent with a roseate first-half report issued by president Leonard Goldenson. Paramount, which rose over 3 points following the approval of its Telemeter pay-TV system by the Arkansas PSC, tapered off somewhat to finish 1% points ahead. 20th Century-Fox slid 4y8 points to the year's low, while Warner Bros, dropped 3y2 points. Most heavily traded issues were National Theatres (177,200 shares), with much of the activity spurred by the buying race between president Eugene Klein and exec. v. p. Sheldon Smerling, and MGM (77,500 shares). Co/. Stock 'Undervalued1 — Hardy & Co. Columbia's common stock "appears undervalued in relation to both assets and earnings potential," Hardy & Co. researcher Ed Brennan declares on the basis of information given him by the film company's top executives. Stressing the great improvement in the production situation, Brennan points to: 21 films now in work, compared to only five at the same time last year; the tremendous boxoffice success thus far of "Guns of Navarone", and a list of top coming attractions, including "Lawrence of Arabia," "Barabbas," "The Devil at 4 O'Clock" and "Notorious Landlady." Goldenson Reports AB-PT Theatre Business Up Theatre business in the first six months ran ahead of last year, as American Broadcasting-Paramount Theatres reported record profit for the first half of 1961. President Leonard H. Goldenson attributed the theatre upswing to the improved quality of pictures during the period. A capital gains credit zoomed AB-PT's net for the first half this year to $11,843,000 ($2.79 per share), compared to $6,981,000 ($1.64 per share) for the first half of '60. Net from operations this year was $5,694,000 ($1.34 per share), compared to $5,653,000 ($1.33 per share) a year ago. Net operating profit fell slightly in the second quarter to $2,269,000 ($.53 per share) from $2,317,000 ($.55 per share) in the comparable '60 span. 'Uncertainty' about Cinema — Wiesenberger Sales of amusement stocks currently are outweighing purchases among the large investment firms, as "uncertainty about a continuation of past growth rates and narrowing profit margin" mounts. This is the conclusion drawn by the Wiesenberger Investment Report's latest Portfolio Periscope, a quarterly analysis of the changes and shifts in security holdings of 28 large investment companies. According to the report theatre firms got a big play, with American Broadcasting-Paramount "almost a unanimous choice among the funds." Loew's Theatres and General Drive-In also were purchased in considerable amounts. Metro-Goldwyn-Mayer and Stanley Warner were bought and sold heavily while Paramount was sold. NT Profits Improve Despite Control Issue Against the backdrop of a pending struggle for control of National Theatres & TV, which neither side has thus far acknowledged, president Eugene V. Klein reported to stockholders that the firm's net and gross income rose for the third quarter ended June 27, 1961. Net was $114,306 ($.04 per share), compared to a loss of $2,235,293 ( — $.79 per share) for last year's quarter. Gross jumped 7 per cent to $10,722,509 from $10,028,325 a year ago. While over $1.5 million of the '60 loss was a special provision for a drop in value of the investment in NTA, the remainder came through regular operations. Said Klein: "Results of the company's third quarter operations further confirm the restoration of the business to a profit-making status. The earnings are modest, but truly significant. Economies of administration and promotion impetus achieved by the management will continue to exert their favorable influence on net income." Likev\ ise, for the first 39 weeks, net totaled $736,470, ($.26 per share), compared to a loss of $3,071,274 ( — $1.09 per share) for last year's similar span. The fight for control of the firm is expected to be resolved at the board meeting (Aug. 10). Pursuant to that important clash, president Klein and executive vice president Sheldon Smerling have been buying up as much stock as they can. Decca Earnings Dip in First Half As previously predicted by president Milton R. Rackmil, Decca Records' consolidated net earnings for the six months ended June 30, 1961, dipped decidedly from the comparable I960 total. Net, including results of operations of subsidiary Unn 'ersal Pictures, was $1,315,063 ($1.02 per share), compared to $2,946,224 ($2.29 per share) in '60. A substantial rise is expected in the second half. Movie Industry Earnings Down in 2nd Q. The Wall Street Journal survey of corporations quarterly earnings revealed that the Movies and Movie Theatres category showed $7,593,000 in the second quarter this year, compared to $8,784,000 for the same period of I960, a decline of 13.6 per cent. Philip R. Ward is on vacation. Financial Bulletin will resume upon his return. FILM & THEATRE STOCKS Close Close Film Companies 7/20/61 8/3/61 Change ALLIED ARTISTS 5 53/4 + % ALLIED ARTISTS (Pfd.) .. m 121/2 + 34 COLUMBIA .. 29% 295/8 + % COLUMBIA (Pfd.) .. 72% 72 % DECCA .. 341/4 32% -1% DISNEY .. 393/8 401/4 + % MGM .. 53y2 535/8 + % PARAMOUNT 68 693/4 + l3/4 20TH-FOX .. 42% 371/2 -4% UNITED ARTISTS .. 34y2 361/g + 1% UNIVERSAL .. 53i/2 53 % UNIVERSAL (Pfd.) 79 79 WARNER BROS. .. 833/4 80% -31/2 (Allied Artists. Tram-Lux American Exchange, others NYSE) * * * Theatre Companies AB-PT .. 46i/4 483/8 +2% AB-PT (Pfd.) .. 193/4 193/4 LOEW'S .. 3P/4 323/4 + 1 NATIONAL THEATRES . ■ • 83/8 8 % STANLEY WARNER .. 301/2 30% + % TRANS-LUX .. 211/4 22 + 3/4 Page 6 Film BULLETIN August 7. 1941