Independent Exhibitors Film Bulletin (1962)

FINANCIAL REPORT $700,000 Loss for Cinerama, Sans 'Grimm' The announcement of a $700,000 operating loss in the first l\ nine months of 1962 apparently caught Cinerama stockholders by surprise, and resulted in a flurry of selling that caused a temporary halt in trading in the issue that day to allow sell I orders to catch up with purchases. When several large blocks were thrown on the market, trading was held up for 27 minutes. Despite the revelation of the loss by president Nicolas Reisini at the special shareholders meeting, the Cinerama price actually declined a little, 3/8ths to 13%, and maintained approximately the same price throughout the following week. Traders seemed to be soothed by the disclosure that the nine-months figure did not include receipts from either of the two Cinerama features currently playing, "The Wonderful World of the Brothers Grimm" in the U.S., and "How the West Was Won" in Europe. Vice president and treasurer Frederick E. Koehner informed the stockholders that about $2 million already has accrued to Cinerama from the exhibition of "Grimm". Answering an inquiry about dividends, Reisini expressed the view that they will be forthcoming, but "when, I don't know." WB Net Shows Rise on Lower Gross Warner Bros, reported net income of $7,565,763 for the fiscal year ending August 31, 1962, up from the $7,209,822 of the previous year. The income per share in 1962 was $1.56 as compared to $1.49 in 1961. Gross revenues from theatrical and television film rentals, ■ sales, etc. were down to $79,864,350 from the previous year's $83,371,306, but this was offset by increases in income from other sources, notably royalties and rents, and decreases in expenses. Profits on the sale of shares of Associated British Picture Corporation Limited, a non-consolidated foreign subsidiary and dividends on those shares prior to sale added to $4,510,817 the 1961 income to bring the figure for that year to $11,720,639. In his message to the stockholders president Jack L. Warner stated that the policy of the company of "trying to meet the public's requirements for the best in entertainment in every medium both in our own country and abroad" is being maintained. "The production and distribution of theatrical motion pictures remain the center of our activities," he declared, "and during the current year we are offering a varied program of films designed to suit all ages and tastes." U Foreign Business Up 40% An increase of some 40 per cent in volume of Universal business in Europe during the nine months from January to September, 1962, is indicative of the firm's dynamic global growth, president Milton R. Rackmil told the last of a series of Continental sales meetings, in Paris. Delving more into the specifics, vice president and foreign general manager Americo Aboaf said that country-by-country increases in total volume of business during the nine-month period ranged up to as high as 55 per cent in some countries. Both Rackmil and Aboaf attributed the upswing to the European boxoffice success of recent U pictures, and to the widening sphere of the company's sales activity. The topper foresaw equally outstanding results in the fiscal quarter of 1962, when "That Touch of Mink" and "Cape Fear" will begin to make themselves felt on the books. He also predicted a banner '63, based on the quality of upcoming product. Screen Gems 1st Q. Net Sets Mark Screen Gems, Inc. net earnings soared to a first-quarter record, and all signs point to the highest annual profit in the firm's history in 1963. This roseate growth portrait was painted recently by top company officials at the annual stockholders meeting. Net for the first session of fiscal '63, ended Sept. 29, totaled $467,717 (18c per share), compared to $341,735 (13c) a year earlier, according to president A. Schneider. Leo Jaffe, chairman of the company's finance committee and first vice president, said he looks for earnings for the balance of the term to "continue the same pattern" of uninterrupted growth — which would point to a new high-water mark in profit for '63 (SG earnings in fiscal '62 were $3,466,294, or $1.37. Cinerama Revenues Seen on Rise "A company that seems to be be making progress in an industry weighted with firms that have long since 'arrived.' " That is the way Financial World describes Cinerama in an upbeat discussion of the firm in its November 28 issue. The article points out that Cinerama's revenue for the first six months of the year totaled in the vicinity of $2.5 million, down slightly from the almost $3 million for the first half of '61. "But this is based on income from the old travelogue films. From this point, company revenues can be expected to rise as receipts from its major films start coming in. As a consequence a change in the profit picture seems in prospect." FILM & THEATRE STOCKS Close Close Film Companies 12/6/62 12/20/62 Change ALLIED ARTISTS 3% 3tf % ALLIED ARTISTS (Pfd.) . .10% CINERAMA 14% 13 % 1% COLUMBIA 241/2 247/8 + % COLUMBIA (Pfd.) 763/4 78 +iy4 DECCA 44% 45 + % DISNEY 291/4 28y2 3/4 MCA 49i/2 49 1/2 MCA (Pfd.) 34 34% + % M-G-M 35% 321/4 3% PARAMOUNT 373/4 353/4 -2 SCREEN GEMS 18% 18% + % 20TH-FOX 201/4 20% + % UNITED ARTISTS 27% 27% WARNER BROS 14 13 34 1/4 Theatre Companies AB-PT 35% 36 + % LOEWS 22% 21% 3/4 NATIONAL GENERAL 8 7% % STANLEY WARNER 21% 20% % TRANS-LUX 13 11% -1% (Allied Artists, Cinerama, Screen Gems, Trans-Lux, American Exchange; all others on New York Stock Exchange.) * * * 12/6/62 12/20/62 Over-the-counter Bid Asked Bid Asked GENERAL DRIVE-IN 83/4 93/4 8 8% MAGNA PICTURES 1% 1% iy4 1% SEVEN ARTS 8% 9% 8V4 9% UA THEATRES 5% 6% 5% 63g UNIVERSAL 57 61% 57 60' WALTER READE STERLING 2V4 2% 2 2% WOMETCO 19 21 18 34 2 0 3 8 (Quotations courtesy National Assn. Securities Dealers. Inc.) Film BULLETIN December 24, 1942 Page 25