Independent Exhibitors Film Bulletin (1963)

FINANCIAL REPORT (Continued from page 11) ward revision of inventory values of pictures in release at the end of the year and other reserves and write-offs." With an apparent sense of satisfaction in small favors, the company reports that its huge loss "makes it possible to claim a refund of $7,327,691 in Federal income taxes paid in 1959 and 1961. In addition, approximately $20,000,000 of losses can be carried forward and will be available to offset profits for tax purposes in future years." The loss from operations for the year was $22,532,084, which included write-offs and reserves of its studio properties in the amount of $25,477,917. Gross income in 1962 was $96,355,871, down from $114,665,797 in 1961. The net loss per share for 1962 was $15.63. This compared to a loss of $9.03 from operations in the prior year, which was offset by a gain of $10.21 from special items. SW 2nd Quarter Improved Stanley Warner Corp. showed an improved second quarter in the current fiscal year. For the three months ended Feb. 23, consolidated operating profit amounted to $429,200 (210 per share), as compared to $247,300 (120) for the same period last year. The six months figures were $1,059,000 (520) this year, compared to the prior year's $1,560,000 (770). BLOCKBUSTERS RISKY— VL (Continued from page 11) Analysis of Companies In its analysis of the individual film companies, Vcdue Line has the following to say, in part: Columbia — "At this juncture, Columbia Pictures appears to be one of the best buys in the motion picture industry." This upbeat view is taken on the strength of both its film product and its holdings in Screen Gems (TV). Despite the slow start this year, 1963 is seen exceeding 1962, while fiscal 1964 is termed "likely to be the year that earnings really explode." Disney — "The record earnings posted by the company in fiscal 1962 are likely to be relegated to second best this year, and further earnings will probably be achieved by mid-decade." MCA — "Has been extremely successful to date, and it is likely that its future will continue bright. But investors, well aware of this corporation's dynamic attributes, have bid the price of the stock up to a level which largely discounts the earnings improvement which may reasonably be projected for the next 12 months and over the 3 to 5-year pull." Metro-Golduyn-Mayer — Revising its previous estimate that this company would register a sizeable earnings improvement in '63, Value Line now states: "We believe that the company will be fortunate to break even this year, and in any event, 317 °' the foremost financial houses in the U.S. read BULLETIN we do not look for earnings to surpass 500 a share." A turnabout in Metro's fortuntes is anticipated for the second half of this year, and it is deemed likely that the present $1.50 annual dividend will be maintained. Paramount — "While we estimate that the company will be in the black this year, 1963 results are still likely to fall far short of the profits turned in in earlier years ... A dividend cut is possible, but not likely." The stock is classified unfavorably for the next 12 months. 20th Century-Fox — The sharp rise in this company's shares is attributed to facts and rumors. The high advances commanded from theatres for "Cleopatra" and reports that it is really a great picture is part of the story. Another factor in forcing the stock up has been a rumor, Value Line reports, that the company intends to purchase its shares in the open market or make a tender offer. The analysis expresses the view that the stock has gotten "way ahead of itself". The company is seen benefiting in future years from substantial tax loss carry-forward. Warner Bros. — On the basis of anticipated improved earnings in both its theatrical film and television operations, this company should be "attractive to capital gains oriented accounts willing to maintain positions in this stock beyond mid-decade." Two current films, "Gypsy' and "Days of Wine and Roses" are seen contributing to improved movie income this year, while Jack Webb's command of the TV division is commended as a favorable factor in restoring Warners' once strong position in that field. FILM & THEATRE STOCKS Close Close Film Companies 3/28/63 4/11/63 Change ALLIED ARTISTS 2% 2% ALLIED ARTISTS (Pfd.) . . . . 9% CINERAMA 15% 15 % COLUMBIA 25% 26% + 3/8 COLUMBIA (Pfd.) 80y2 80% %4 DECCA 451/2 45% I % DISNEY 34 33% 3/g FILMWAYS 6% 6% % MCA 51 551/4 +41/4 MCA (Pfd.) 353/4 36 +1/4 V1-G-M 32i/2 323/4 + 1/4 PARAMOUNT 383/4 38% % SCREEN GEMS 20 21% +l3/4 20TH-FOX 29 31% + 2% UNITED ARTISTS 30 293/8 % WARNER BROS 14% 13% 3/4 # ♦ ♦ Theatre Companies AB-PT 33 33% + % LOEWS 183/4 17% % NATIONAL GENERAL 10% 10% + % STANLEY WARNER 20% 22% +2% TRANS-LUX 12% 13 + % # * ♦ (Allied Artists, Cinerama, Screen Gems, Trans-Lux, American Exchange; all others on New York Stock Exchange.) # * * 3/28/63 4/11/65 Over-the-counter Bid Asked Bid Asked GENERAL DRIVE-IN 8% 9% 9 93/4 MAGNA PICTURES 2% 3 2% 3 MEDALLION PICTURES 5% 6% 5% 63/g SEVEN ARTS 9% 10% 9% 10 UA THEATRES 53/4 6% 7% 8% UNIVERSAL No quotation No quotation WALTER READE STERLING ... 2 2% 2% 23/4 WOMETCO 21 23% 22 1/4 24% (Quotations courtesy National Assn. Securities Dealers, Inc.) Page 14 Film BULLETIN April 15, 1963