Independent Exhibitors Film Bulletin (1963)

FINANCIAL REPORT Expanding Young Theatre Chains Makes Some of Industry's Big News Some of the brightest news in movie business has been emanating from the theatre chains. And most of that news is being made by some of the relatively smaller and newer operations. (See Page 11.) Moving outside the fence of government restrictions that hamper the activities of the big, old-line national circuits, outfits like Walter Reade/Sterling and General Drive-In are expanding at a rapid pace. Keeping a sharp eye peeled for every shift of population, companies like these move into new housing developments and shopping centers with modestly constructed, modern little theatres that fill the needs of such new communities. In addition, they are engaged in shrewd diversifications that bolster the theatre income. Walter Reade/Sterling showed net income for the first half of 1963 totalling $223,535 (140 per share) on gross revenue of $5,500,725. These figures compare with a net of $153,149 (10<i) on a gross of $4,202,063 in the prior year's first half. WR/S is engaged in film production and distribution, through its Continental wing, in syndication of films to TV, as well as theatre operation. General Drive-In based in Boston, but spreading down the east coast in its theatre operations, reported net earnings of $456,121 (500 per share) for the nine months ending July 31. This compares with $378,836 (410 ) for the like period in 1962. Comparative gross revenues were: $10,125,275 this year; $9,124,874 for the nine months last year. General Drive-In, like WR/S, is traded Over the Counter. One of its major diversifications is bowling alleys. Commonwealth Theatres of Puerto Rico, Inc. which just declared a 12l/20 quarterly dividend on its common stock is engaged in vending and concessions operations, and film distribution, as well as running the island's largest theatre circuit. The company is starting construction of a 12-story office building and two adjoining theatres, with financing being supplied by Chase Manhattan Bank. NG Recommended on Talaria Prospects National General, one of the nation's leading theatre operations, is the subject of the following analysis by Daniel C. Maltz, researcher for Bruns, Nordeman & Co. (NYSE, Amex): "Shares of this company's stock were originally recommended in March of this year at 10% and have provided a mixed market performance to date. Readers will recall that our interest in this issue stems from a basically improving position in operations, an aggressive acquisition program and the potentials inherent from its participation with General Electric's Talaria projector, on which this company holds exclusive U. S. distribution rights in the entertainment field. "On an operating basis, NTR completed its thirty nine week June 30, 1963 period with gross income of $35.0 million, as compared with $33.5 million, and a net income of $2,156,342 or $0.65 a share as oposed to $1,570,995 or $0.47 in the previous year. This increase, however, was below our previous expectations and was caused by a decline in box office receipts coupled with expenses incurred with the Talaria program. Accordingly, earnings for the full year are now projected at about $1.05 -$1.10 a share vs $1.03 for 1962. "Recent corporate developments have been plentiful. In June, the company won a reversal of the 1951 consent decree, and may not return to the production of motion pictures. In August the company announced the acquisition of Mission-Pak, Inc. a packager of fancy fruits for 135,276 common shares and will expand this subsidiary's operations to company locations in Denver, Salt Lake City and Phoenix, Arizona. Dividends were resumed with a 4% stock declaration in July, payable in September to holders of record August 20th. "Recent price hesitancy in the issue has probably stemmed from the less than expected earnings improvement, and the lack of news regarding the Pay-TV venture. Since we regard industry and investor reception to the Talaria project as the "key" to the basic appeal of National General common stock, we believe that speculative commitments are still warranted pending the outcome of the Talaria demonstration. A target date for this program should be announced shortly." Stock Transactions Reported SEC The Securities and Exchange Commission reported the following transactions in film industry shares during the period July 1 1 to August 10: Roger W. Hurlock purchased 900 more shares of Allied Artists common, bringing his total holdings to 39,100. Emanuel L. Wolf, also a director, sold 900 shares of AA, retaining only 100 . . . B. G. Kranze purchased 2000 shares of Cinerama. Nicolas Reisini transferred 195,000 shares of Cinerama to Robin Intl., Inc., and purchased an additional 40,000 for Robin ... In Loew's Theatres, John F. Murphy bought 3000, Arthur M. Tolchin 1000, and Archie Weltman 1000. FILM & THEATRE STOCKS Clo%e Close Film Companies 8/29/63 9/12/63 Change ALLIED ARTISTS ... 2% 21/2 Vi ALLIED ARTISTS (Pfd.) • • • 8% 8I/4 % CINERAMA ...I51/4 16 + 3/4 COLUMBIA ...26% 243/4 -1% COLUMBIA (Pfd.) ...82V2 82 % DECCA ...45i/2 451/g " % DISNEY ...45% 441/4 "1% FILM WAYS ... 71/4 7 % MCA 64% 65 + % MCA (Pfd.) ...381/4 383/4 + Vz M-G-M ...293/4 32 + 2% PARAMOUNT ...497/g 51% + 1% SCREEN GEMS 24 23% % 20TH-FOX ...33% 311/2 "1% UNITED ARTISTS ...20% 20% % WARNER BROS ...131/2 14% + % Theatre Companies * * * AB-PT .33% 34% + % LOEW'S 17 16% % NATIONAL GENERAL • ■ ■ 9% 9% Va STANLEY WARNER ...231/4 24% +1% TRANS-LUX ...12% 133/4 + % (Allied Artists, Cinerama, Screen Gems, Trans-Lux, American Exchange; all others on New York Stock Exchange.) * * * 8/29/63 9/12/63 Over-the-counter Bid Asked Bid Asked COMMONWEALTH OF P.R. ....6 6% 53/4 6% GENERAL DRIVE-IN . . .... 9% 10% 10% 11% MAGNA PICTURES .... 1% 21/4 1% 2% MEDALLION PICTURES ...103/4 H3/4 10% 11% SEVEN ARTS 8 9% 7% 8% UA THEATRES ...I41/4 15 11% 12% UNIVERSAL 64 69% 65 71% 2% WALTER READE STERLING .... 2% 3 2% WOMETCO ....28V4 30% 27% 29% ( Quotations courtesy National Assn. Securities Deale rs. Inc.) Film BULLETIN September 16. 1963 Page 9