Independent Exhibitors Film Bulletin (1962)

FINANCIAL REPORT (Continued from Page 11) bought 900 shares to lift his holdings to 25,776 . . . Screen Gems officer Lloyd Burns bought 150 to give him 1,018, while Alfred Hart, a director, acquired 100 for a total of 1,050 . . . William H. Anderson, an officer and director of Walt Disney, picked up 100 shares to raise his total to 1,645. 'Business Week' Plugs Cinerama, Reisini Fast-growing Cinerama and its dynamic chief officer Nicolas Reisini came in for some careful chronicling and a strong plug in the July 28 issue of Business Week. The article said of Reisini, he "appears a likely candidate for survival in the hurly-burly film industry." Cinerama's new outlets, the new Super-Cinerama theatres (goal is 100 Cinerama-equipped houses worldwide by early 1963), are credited by Business Week with boosting the firm's prospects. "Volume went from $2.6 million in 1959 to $6.6 million in I960, before dipping to $6.2 million last year. But Cinerama wound up with earnings of $336,000." Another upbeat factor pointed to is the co-production deal signed with M-G-M for 'The Wonderful World of the Brothers Grimm" and "How the West Was Won," plus two to six more films. B-W also likes the way Reisini renegotiated the $15 million loan agreement with Prudential Insurance Co.: "Under the new agreement, another $6 million was made available to Cinerama, while the Pru is to get 15% of Cinerama's net on the two films it financed instead of 15% of pretax profits. The loan also was revised to give Cinerama more room for working capital. This spring, Cinerama repaid the first $3 million loan ahead of time." The article concludes with Reisini's answer to those who criticize his many areas of activity: "Whoever stops creating today is dead the day before yesterday." Warner Bros. 9-Months Up Warner Bros, net income for the nine months ended June 2, was up $5,569,000 ($1.15 per share) from $4,983,000 ($1.10) a year earlier. The 1961 figure was arrived at after giving effect to the 4-for-l stock split of last February. Film rentals, including television, sales, etc., totaled $59,590,000 for the current period, compared to $63,574,000 for the corresponding span a year ago. Movie Profits Down 7.6% in 2nd Q. Film and theatre companies (down 7.6 percent) were one of only six industry groups reporting declines in net profits for the second quarter compared to corresponding 1961 figures, according to the Wall Street Journal's quarterly survey of earnings results and prospects. Over all, 37 industries registered an aggregate gain of 15.5 per cent over their profits of a year earlier. Eight motion picture companies thus far reporting for the second quarter showed earnings totaling $8,928,000, compared to $9,663,000 in 1961, or a decline second only to that suffered by the steel manufacturers. The Journal attributed the movie slide to the fact that "the new pictures of some companies attracted the public in smaller numbers than did last year's releases." Dividends Up in May Motion picture firms paid $1,675,000 in cash dividends last May, compared to $1,539,000 in May, 1961. The increase was attributed to a dividend rate hike by Warner Bros. In April, '62 cash dividend payments by the same companies totaled SI, 60 1,000. For the first five months of this year, movie dividends amounted to $9,104,000, off from the $9,584,000 in the similar 1961 span. Page 14 Film BULLETIN August t, 1962 Trans-Lux 6 Months Net Rises Trans-Lux Corp. unaudited net profits for the six months ended June 30 totaled $358,795 (48c per share), up from $289,826 (39c) in the corresponding period of 1961, chairman of the board Percical E. Furber reported. S-W 9-Months Down If the lions share of Stanley Warner Corp. profits comes from its non-theatre operations, so do its expenses — at least in the latest nine months statement recently issued by president S. H. Fabian. Consolidated operating profit of Stanley Warner for the nine months ended May 26, 1962, totaled $2,267,600 ($1.11 per share), down from $3,285,500 ($1.62) a year earlier. Likewise, profit for the third quarter, ending same date, was off to $707,600 (34c) from 938,000 (46c). According to Fabian: "The decline in operating profit for both the quarter and the nine months may be largely attributed to the introductory sales program of a new all-fabric girdle." Also, he noted that promotional expenses were incurred in the introduction of the Playtex Nurser. No specific mention was made of the firm's theatre branch. Merchandise sales, theatre admissions and other income for the nine months amounted to $101,422,800, up from the $99,796,600 of the similar '61 span. Comparable third-quarter figures are $34,051,600, against $34,928,900 a year before. U's Foreign Business Up 50% Universal's foreign boxoffice take has jumped 50 per cent ahead of last year's similar figures, according to Americo Aboaf, vice president and general manager of Universal International Films, back from a six-weeks, global tour. FILM & THEATRE STOCKS Close Close Film Companies 7/19/62 8/2/62 Change ALLIED ARTISTS 31/4 3y8 ~ % ALLIED ARTISTS (Pfd.) 8% 8% % CINERAMA 15% 18% +3 COLUMBIA 16% 163/4 + y4 COLUMBIA (Pfd.) 73 70 -3 DECCA 38i/2 383/4 + 1 DISNEY 28i/4 28i/4 M-G-M 32% 33% +1% PARAMOUNT 401/4 403/4 + % SCREEN GEMS 14% 15% + % 20TH-F0X 23 21% -ii UNITED ARTISTS 27i/2 271/4 i WARNER BROS 12% 12% Theatre Companies AB-PT 27i/4 29 LOEWS 20% 21% + % NATIONAL GENERAL 6% 7 + % STANLEY WARNER 211/2 211/4 1 TRANS-LUX 11% 13 +1% (Allied Artists, Cinerama, Screen Gems, Trans-Lux, American Exchange; all others on New York Stock Exchange.) if * 7/19/62 8/2/62 Ofer-tbe-counter Bid Asked Bid Asked GENERAL DRIVE-IN .... 8% 9% 9% 101/4 MAGNA PICTURES .... 1% 2% 1% 21/4 SEVEN ARTS .... 91/4 10% 9% 10% UA THEATRES .... 6% 7% 6% 7% UNIVERSAL 51 51% 51 57% WOMETCO ....19% 21% 19% 21% ( Quotations courtesy National Assn. Securities Dealers, Inc.)