Independent Exhibitors Film Bulletin (1963)

FINANCIAL REPORT Movies Slide With Rest of Market O'Brien Predicts M-G-M Upswing After Disappointing 3rd Quarter In the face of a loss for both the 12 weeks ended June 6, 1963, and the 40 weeks ended the same date, Metro-Goldwyn-Mayer president Robert H. O'Brien predicted a "return to profitable operations" for the firm in the first quarter of the 1963-64 fiscal year. The reasons for the setback and the optimistic outlook were pegged to the same post: motion picture product. The loss for the third quarter of the current fiscal term totaled $3,622,000, against a net profit of $755,000 (300 per share) in the similar span a year earlier. For the 40-week period, the loss amounted to $12,338,000, compared to a profit of $3,308,000 ($1.30) a year ago. Said O'Brien in a letter to stockholders, the low level of film rentals was the main factor in the loss, since the "new releases during the period, including several key pictures, have done poorly at the box office." At the same time, the "strongest lineup of pictures this company has had for many years" augurs well for a "substantial turn-around" in the fall-winter period. The Metro topper pointed to such upcoming releases as "The V.I.P.s," "The Wheeler Dealers," "Twilight of Honor", "Sunday in New York" and "The Prize" as comprising a really powerful film card for the coming months. Also mentioned prominently by O'Brien was Irving Berlin's "Say It With Music," scheduled for production in 1964, and "How the West Was Won," which he said continues to prove a boxoffice hit in the U. S. and overseas. According to the stockholders' letter, Metro, along with 20th Century-Fox and Columbia, continues to investigate the possibility of building a completely new motion picture and television production center near Hollywood. "This project, if set up," said O'Brien, "would not in any way affect or alter the individual identity or autonomy of the individual companies." Better UA 2nd Half — Shearson, Hammill While Shearson, Hammill & Co. anticipates that results for the second quarter of United Artists were "considerably below the 620 earned in last year's June quarter," the Wall Street investment firm predicts that the second half of the year should show "considerable improvement over the first six months." In a report on UA, researcher Fred Anschel attributes the upbeat second-half outlook to several films which have just gone into release, chief of which are "Irma La Douce" and "The Great Escape," which, he says, are "doing very well at the boxoffice." Earnings for all of '63 are "very tentatively" estimated at $1.80 to $2.00 per share. And, adds Anschel, "prospects for 1964 are unusually favorable based on a promising lineup of releases, particularly "It a Mad, Mad, Mad, Mad World." Additionally, UA's expanded TV program production "should make an important contribution to next year's revenues and profits." Shearson, Hammill does not picture the $1.60 annual dividend as "entirely secure in the light of the company's disappointing first half results and its relatively tight cash position. However, we still would guess," concludes the profile, "that United Artists will continue to pay its current dividend in view of the improved outlook for next year." With movie conditions offering little in the way of buffer strength, cinema shares were hard-hit by the general market decline, the first major drop since February. With two exceptions — Filmways was up y8, and Decca remained the same — film companies slid as a group in the two-week period from July 5 to July 18. Undoubtedly affected by its recent financial report of a three-quarters loss, M-G-M was hit hardest of all, off 3%. Stanley Warner (%) and TransLux (1/4) were the only theatre stocks ahead for the period. While off slightly in the past fortnight, Disney, of all the film companies, has held firmest against the recent bearish onslaught, still remaining reasonably close to its 1963 high. Wometco Earnings Set Records Wometco Enterprises, Inc., Florida-based theatre, TV and concessions chain, continues to show improvement in its earnings and income. Net after taxes for the first 24 weeks of 1963 hit a record $1,043,459 (720 per share), compared to $916,197 (640) for the similar 1962 span. Gross income for the 24 weeks also set a new mark— $9,950,741, vs. $8,915,101 the year before. Net for the 12 weeks ended June 15, 1963 totaled $518,812 (360), against $467,109 (320) a year earlier. FILM & THEATRE STOCKS Close Close Film Companies 7/5/63 7/18/63 Change ALLIED ARTISTS 3% 31/8 Vz ALLIED ARTISTS (Pfd.) 9% 91/4 Vz CINERAMA m 14 lA COLUMBIA 2534 245/8 -m COLUMBIA (Pfd.) 83 823/g % DECCA 45y2 451/2 DISNEY 38% 381/g % FILMWAYS 7 7y8 + % MCA 55 55 MCA (Pfd.) 371/g 36i/2 -1% M-G-M 321/4 28i/2 -33/4 PARAMOUNT 411/4 39y2 -1% SCREEN GEMS 221/2 211/4 -1% 20TH-FOX 303/8 28i/2 -1% UNITED ARTISTS 251/2 243^ -1% WARNER BROS 143/4 13% % 1 * Theatre Companies * * AB-PT 3iy8 293/g -13/4 LOEW'S 183/4 181/s % NATIONAL GENERAL ny2 HV8 y8 STANLEY WARNER . 22i/8 211/2 + % TRANS-LUX * 11 11% + % (Allied Artists, Cinerama, Screen Gems, Trans-Lux, American Exchange; all others on New York Stock Exchange.) 7/5/63 7/78/63 Over-the-counter Bid Asked Bid Asked COMMONWEALTH OF P. R.. 1 7% 6I/2 73/8 GENERAL DRIVE-IN ■ 10% H5/8 103/8 U% MAGNA PICTURES 2 23/8 21/4 2% MEDALLION PICTURES 9 9% 83/4 93/4 SEVEN ARTS .. 73/4 8% 7% 83/8 UA THEATRES 11 12 12 131/8 UNIVERSAL .. 621/2 661/2 No Quotation WALTER READE-STERLING .. 2i/g 21/2 23/4 31/4 WOMETCO . . 23i/2 253/8 241/2 261/4 ( Quotations courtesy National Assn. Securities Deale rs, Inc.) Page 10 Film BULLETIN July 22, 1963