Independent Exhibitors Film Bulletin (1963)

SCHNEIDER FINANCIAL REPORT Shareholder Asks Col. Management: Why Is Price of Stock So Low? "Only Wall Street knows the reason for the low market-value of our stock," A. Schneider, Columbia Pictures president, told shareholders at their annual meeting on Dec. 18. Schneider, in response to a stockholder who contended that the paying of cash dividends would help boost the value of the stock, explained that Columbia management, too, is disappointed in the low price (closing Dec. 18), but that the company prefers to invest its earnings "in the future of the business." "Because of this we do not have to go outside for financing," he said. In lieu of cash dividends, Columbia distributes 2l/2% stock bonuses semi-annually. Columbia has high hopes for the coming year, ending next June 3, which, according to Schneider "will probably be the best we've had to look at in the past five years." Most of the optimism is based upon "Lawrence Of Arabia" which thus far has grossed $13,832,000. The current year's first quarter (ending Sept. 28) saw an upswing in film rentals to $20,000,000, compared to $18,580,000 in the first quarter of the preceeding year. The company netted $791,000 (44c per share) in this period, compared to $577,000 (32c) last year. During the question and answer period, motion picture exhibitor Trueman Rembusch charged the company with "price fixing" on engagements of "Lawrence Of Arabia", and warned that such actions could lead to costly litigation. Schneider denied the charges and asserted that "we think we are doing business in the proper fashion." Rembusch urged the company's management to "put their house in order" to avoid law suits. Executive vice president Leo Jaffe reassured the shareholders on the vital issue of excessive production costs: "The industry has been confronted with many problems during the past year, particularly with rising costs in all phases of creative and production endeavor, including the cost of talent. We have had our share of these problems, but the various challenges have been met aggressively and, we believe, in a manner that will continue to improve the position of our company in the industry." Stockholders approved an employees' retirement program, and ratified stock options to M. J. Frankovich, first vice-president in charge of world production, and Sol Schwartz, a senior vice 517 °' the foremost financial houses in the U.S. read BULLETIN president. The entire board of directors was re-elected. They are Schneider, Leo M. Blancke, Donald M. Stralem, Alfred Hart, Abraham M. Sonnabend, Mendel B. Silberberg, Samuel J. Briskin, and Jerome Hyams. United Artists, NGC Report Earnings United Artists showed a sharp decline in earnings in the first nine months of this year compared to 1962. The net for the 3 quarters, after provision for income taxes, was $1,610,000 (87c per share) compared with $3,103,000 ($1.68), it was announced by board chairman Robert S. Benjamin. Improved theatre earnings was one of the primary reasons of National General Corporation's financial upswing in the last fiscal year, according to president Eugene V. Klein. NGC's consolidated earnings for the year ending Sept. 24 showed a 30% increase over the 1962 statistics— $3,459,600 ($1.00 per share) as compared to '62 s $2,641,084 (77c). The figures are exclusive of non-recurring special items which totaled $637,876 in 1962 and nothing in 1963. The gross income for 1963 was $48,912,798, compared with 1962's income of $45,808,084. Besides the theatre earnings, gains in both the total income and net earnings are laid to NGC's real estate activities. FILM & THEATRE STOCKS Close Close Film Companies 12/5/63 12/19/63 Change ALLIED ARTISTS 2% 2% ALLIED ARTISTS (Pfd.) .8 8 CINERAMA 14% 13% % COLUMBIA 223/4 22% % COLUMBIA (Pfd.) 82y2 82% + % DECCA 45V2 45% •• % DISNEY 4iy4 38% -2% FILM WAYS 83/4 7% -1% MCA 581,4 583/4 + i/2 MCA (Pfd.) 36 36 — M-G-M 28 263/4 -1% PARAMOUNT 53% 54% + % SCREEN GEMS 20% 22% +1% 20TH-FOX 26% 25% -1% UNITED ARTISTS 20% 19% % WARNER BROS 133/4 13% + % Theatre Companies AB-PT 33% 30% -3 LOEWS 17% 17% + % NATIONAL GENERAL 9% 9 % STANLEY WARNER 25% 26 + % TRANS-LUX 11% 11% + % * * * (Allied Artists, Cinerama, Screen Gems, Trans-Lux, American Exchange; all others on New York Stock Exchange.) * * * 12/5/63 12/19/63 Over-the-counter Bid Asked Bid Asked COMMONWEALTH OF P.R No quotation No quotation GENERAL DRIVE-IN 10% 11% 10% 11% MAGNA PICTURES 1% P/4 1% p/4 MEDALLION PICTURES 17 18% 18% 19% SEVEN ARTS 63/4 7% 7% 8% UA THEATRES 10% lP/4 8 9% UNIVERSAL No quotation 66 70% WALTER READE STERLING . . 3% 33/4 2% 3% WOMETCO 33% 36% 33 35% (Quotations courtesy National Assn. Securities Dealers, Inc.) Film BULLETIN December 23, {Hi Page 9