Independent Exhibitors Film Bulletin (1963)

FINANCIAL REPORT Universal Pushes Decca Net To $5.6 Million, a New High Bulwarked by the heavy earnings of its Universal Pictures subsidiary, Decca Records, Inc. achieved the highest net income in its history for 1962. The consolidated net amounted to $5,615,281. Of that figure, Universal contributed $4,422,614, after a provision of $3,120,000 for Federal income taxes. Decca's earnings were equal to $3.68 per share on the 1,527,401 shares outstanding at year's end, while Universal 's net amounted to $4.96 per share on the 874,408 shares of common, ifter dividends on the preferred. The comparative figures for the 1961 year were these: Decca —net $3,964,642 ($3.08 on 1,285,701 shares); Universal— net *3,09 1,476 ($3.32 on 887,790 shares). Both firms declared Jieir regular quarterly dividends: Decca 300, Universal 250. Milton R. Rackmil, president of both Decca and Universal, ssued optimistic statements to shareholders of the two comoanies. Universal, he said, "has been aggressively active in planning productions and acquiring motion pictures for its urogram for this year; and the releases now planned give jromise of another successful year." Decca's record division, Rackmil told that firm's stockholders, is meeting "service corajetition for volume and talent" and he anticipates "even better esults for 1963." Referring to MCA's acquisition of a controlling interest in 3ecca (as of Feb. 28 MCA owned 1,340,515 shares, 87.8%, )f Decca's outstanding stock), Rackmil declared: "This acquisiion presents the opportunity for the manpower of each of the hree companies, namely, MCA, Decca and Universal and their iubsidiaries, to coordinate their present activities in related, but eparate, segments of the entertainment industry and to materally strengthen and increase their production and distribution Activities for the ultimate benefit of each of the corporations." M-G-M Bright Spot in Dull Fortnight With the sole exception of M-G-M, which recorded a surmising 43/8 points rise in the two weeks from March 1 to 14, ilm and theatre stocks performed in the same lacklustre style is the market in general. Gains and declines were fractional for he most part and trading was relatively light, M-G-M being he most active (132,000 shares). In the theatre field, National General led the way, moving up y8ths on fairly active trading. /Vometco Profits Continue Climb Wometco Enterprises, Inc., the Florida-based exhibition-TVending-bottling concern, announced a record-shattering net ncome of $1,831,254 after taxes, for 1962, an increase of more han 35% over the prior year. Gross income was up 17% to $18,723,132 over the previous 317 °' the foremost financial houses in the U.S. read BULLETIN year's $15,999,469. The cash flow was $2,774,137 ($1.93 per share), up 30% over the 1961 figure. Shareholders received a total of $512,466 in cash dividends during 1962. President Mitchell Wolfson told the shareholders: "This increase in earnings is the fourth successive annual increase since the company became publicly-owned in 1959. I am happy to state that thus far in 1963 our business is operating at levels above those of last year at the same time." Columbia's 6-Mos. Net Cut by Taxes Columbia Pictures net earnings dropped to 460 per share for the first six months of the current fiscal year compared to 980 for the same period last year when a tax loss carry forward substantially boosted the net gain. Gross earnings for the six month period ending December 30, 1962 were $1,767,000 against a gross of $1,890,000 for the period ending December 3, 1961. Because of tax loss carry forward, Columbia paid out only $253,00 in Federal taxes for the six months ending December 30, 1961, as compared to $950,000 for the same period this year. This plummeted net earnings from $1,637,000 to $817,000 on gross earnings that were down only $123,000. In announcing the current profit picture, Columbia president A. Schneider noted that income from the three big earners currently on the screens, "Lawrence of Arabia", "Barabbas" and "Diamond Head" would not be felt until the final portion of the fiscal year. FILM & THEATRE STOCKS Close Close Film Companies 2/28/63 3/14/63 Change ALLIED ARTISTS 3% 3 ■ Va ALLIED ARTISTS (Pfd.) 9% 9 % CINERAMA 14% 15% + % COLUMBIA 241/2 233/4 3/4 COLUMBIA (Pfd.) 82 82 DECCA 451/4 453.8 + i/8 DISNEY 333/4 341/2 ! 3/4 FILMWAYS 61/2 6% i/g MCA 50 1/2 48% 1% MCA (Pfd.) 35V8 36 + 7/g M-G-M 28i/4 32% +4% PARAMOUNT 37% 373/4 + y2 SCREEN GEMS 16% 17% + 3/4 20TH-FOX 241/2 26 + 1% UNITED ARTISTS 30 297/8 % WARNER BROS 14 13% % * * * Theatre Companies AB-PT 31% 321/2 •: % LOEWS 18% 18 % NATIONAL GENERAL 10% 11% + % STANLEY WARNER 21% 21% % TRANS-LUX 12% 13% + % * * * (Allied Artists, Cinerama, Screen Gems, Trans-Lux, American Exchange; all others on New York Stock Exchange.) * * * 2/28/63 3/14/63 Over-the-counter Bid Asked Bid Asked GENERAL DRIVE-IN 9% 10% 9 10 MAGNA PICTURES 2% 23/4 2% 2% MEDALLION PICTURES 5% 6% 6 6% SEVEN ARTS 8% 91/4 9% 10% UA THEATRES 5% 5% 5 5% UNIVERSAL No quotation No quotation WALTER READE STERLING .... 1% 2% 2 2% WOMETCO I91/4 20% I91/4 20% ( Quotations courtesy National Assn. Securities Dealers, Inc. ) Film BULLETIN March 18. 1943 Page 9