Independent Exhibitors Film Bulletin (1962)

FINANCIAL REPORT Continued from page 16) hose of the previous year, according to unaudited figures, ■xecutive vice president Max E. Youngstein told a forum of the Nfew York Society of Security Analysts. He attributed the inrease to the "foresight" of the firm's president and chairman Nicolas Reisini. Further fruits of that executive vision will be borne, predicted foungstein, when Cinerama begins to realize a profit of $5,000 jer week from each theatre playing "How the West Was Won" md "The Wonderful World of the Brothers Grimm," the first wo story features in the wide-screen process, co-produced with vl-G-M (two more attractions are slated to be made in partnerhip with the major film firm). Plans call for 120 Cinerama louses here and overseas, which means a weekly profit of ;600,000 from the company's growing production program. 'Grimm" will be released first, world-wide, probably in July >r August, with "West"' to follow later in the year. Both are in ate stages of completion. Youngstein voiced confidence that "Grimm" and "West" will >ecome two of the highest grossing pictures in the history of he industry, pointing to the fact that Martin Theatres head E. D. Martin, on the strength of what he had seen of the two ilms, is building ten new Cinerama-equipped houses at a cost )f $10 million. It will be a Cinerama aim to turn out pictures hat are timeless in content, costuming, etc., so that "we will lave a residual of blockbuster attractions." Explained the execuive v.p.: "We have learned from Disney and from 'Gone With he Wind' the value of perennially attractive films. We will nake pictures that can be brought back again and again. The itrength of their appeal will be to the family audiences, with>ut rejecting either the youngest member or the most sophisti:ated. There will be no emphasis on sex, violence or gore." Youngstein also talked about his company's subsidiary activiies: the acquisition of Cinemiracle from National Theatres; be "Journey to the Stars" film in the Spacearium at the Seattle World's Fair; Itinerama; the development of a single Cinerama ens instead of the three now required, and the planned marketing of a special consumer's still camera. Film Companies' Profits Improved By 'Runaway' Production — Value Line "Prospects for the months ahead are favorable. The higherquality motion pictures now in production or release suggest ncreased attendance at higher prices. Moreover, we do not expect the proclivity toward more expensive films to reduce significantly the number of features available for distribution. Then, too, competition from free television, which has depressed theatre attendance, is believed to be leveling off." These upbeat conclusions form the sum and substance of the latest Value Line Investment Survey of the motion picture industry. Dwelling chieflly on the impact of so-called "runaway" production, the analysis comes up with the observation that the film companies are profiting through lower costs by shifting some of their production abroad, and that they will continue to do so "unless conditions in the U. S. undergo a metamorphosis which enables this country to compete effectively for the production dollar." In either case, Value Line feels, "profits from motion picture production are in line for a significant rejuvenation in the years ahead." Another significant factor favoring the improvement in the profit outlook of the film companies, the analysis finds is "the shift of studio bosses from moviemakers to businessmen. With the resignation of Sol Siegel as head of the M-G-M studio, the last of the major producers has joined the parade. Those who emphasized artistic success at the expense of earnings have been replaced by individuals who promulgated the profit motive without jeopardizing quality." Notwithstanding the generally optimistic tenor of the Value Line analysis, investors are warned that the earnings of movie companies fluctuate widely on the vagaries of production. "The success or failure of one feature, particularly a major production costing millions, easily counterbalances the trend." And note is made of the possible drying up of future income from TV. Two companies — Decca and Disney — are singled out as "ranking high for probably year-ahead capital performance." Two others — 20th Century-Fox and National General (formerly National Theatres — are cited as offering the "widest potential capital gains". 20th's motion picture production, Value Line estimates, will experience a rejuvenation starting late this year, "and should continue at an unprecedented clip into th middle Sixties." National General is seen strong in a variety of diversifications from its theatre business. The Value Line Investment Survey is published by Arnold Bernhard & Co. Trans-Lux Net Up in '61 Trans-Lux Corp. net income for 1961 totaled $567,379) (77c per share), an increase over the $502,217 (69c) recorded in 1960. Market Analysts St>e Marie Shares Sauntl (Continued from Page 10) mended as an income situation." His view of M-G-M at the present low price is that of a good buy for those seeking an intermediate term gain, and he listed 20th Century-Fox as a "hold". In his reference to individual companies, Shearson, HammiU's Mr. Anschel gave a boost to National General as a company that is rapidly ironing out the kinks that have retarded its progress in recent years. He also offered the information that Cinerama is attracting a "strong sophisticated following in Wall Street." Interest in Paramount, he stated, has cooled considerably as a result of diminished enthusiasm for Telemeter, its pay-TV subsidiary. Mr. Bell suggested that several industry issues are cheap at today's prices. Among these, he listed M-G-M at 40 or thereabouts, yielding 5 percent, with "The Four Horsemen of the Apocalypse" written off, and holding "tremendous assets in some of its forthcoming releases, its library of old films and its valuable real estate." He also cited Decca as "an exciting prospect" Disney as a "good investment" and United Artists as a "good value". Film BULLETIN April 14. 1942 Page 19