The film daily year book of motion pictures (1930)

and the two vaudeville chains, now all operate as units of Radio-Keith-Orpheum. (See page 824). Keith-Albee-Orpheum was incorporated with 2,000,000 shares of no par value common and at the same time, Lehman Bros., Hallgarten & Co., and K. B. Smith & Co., all of Xew York, offered SI 0.000.000 in seven per cent cumulative convertible preferred par $100 stock at 101 and dividend. This stock had a preference for assets and in liquidation was entitled to 110 and dividends. The stock also is convertible into common in the ratio of one share of preferred for three of common. For the six months ended June 30, 1928, Keith Albee-Orpheum and subsidiaries reported a net loss of $446,274.04 as against a net income of $257,935 after charges and federal taxes for the same period in 1928. The income account for that period, 1928, was: income, $17,286,257 ; expenses, including interest, depreciation and amortization. $17,509,217; other income less deductions, $576.337 ; total income, $363,367. The board of directors of the oorporation declared a regular quarterly dividend of 144 per cent on the convertible preferred stock of the company payable on Jan. 2. 1930, to stockholders of record on Dec. 20. 1929. Loew"§. Incorporated ANEW high mark in earnings of Loew's, Inc., is revealed with the reported net profit of $14,074,688 by the organization for the year ended Aug. 31, 1929. Comparison of the company's earnings with 1928. which was $8,568,162, with the current statement shows an increase of $5,506,486, a jump of approximately 60 per cent and likewise the largest income ever attained by the organization. One of the highlights in the company's business was witnessed in Feb. 28. 1929, when announcement was made in The Film Daily, of the fact that Loew's theater chain was purchased by Fox Theater Corp. The transaction was concluded by William Fox, on behalf of his organization, acquiring the shares held by the widow and family of the late Marcus Loew and those of a group intimately associated with the management of Ixiew's, Inc.. which also owns Metro-Goldwyn-Mayer Pictures Corp. At the close of the company's fiscal year, Aug. 31, 1928. Loew's, Inc., had outstanding 150,000 shares of $6.50 cumulative preferred stock no par value and 1.334.453 shares of no par common stock besides $13,501,000 of 15 year sinking fund gold debenture 6s due April, 1941. The following comparative table of net earnings covering the last nine fiscal years best illustrates the success of the organization : 1921 $1,800,550 1922 2.267,871 1923 2,415,489 1924 2,949,053 1925 4,708,631 1926 6,388,200 1927 6,737,205 1928 8,568.162 1929 14.074.688 The above chart conclusively demonstrates the steady rise in profits since 1921 when the statement showed a profit of $1,800,550 as compared with $14,074,688 as of 1929. For the 12 weeks ended Nov., 1928, net profits totaled $2,102,033, after depreciation, federal taxes, etc., but before subsidiary preferred dividends, against $1,257,054 during the 12 weeks ended Nov., 1927. Operating profit for the period was listed at $2,997,276 and depreciation and taxes at $895.243. An additional increase in the earnings of the organization was witnessed with the reported net profits of S5.251.958 lor the 28 weeks ended March. 1928. This represented an increase of 16 per cent over the previous year's profit for the same period, which was $4,423,860. Loew's. Inc.. and subsidiaries reported for the 40 weeks ended June 2. 1929. net profit of $8,215,034 after depreciation and federal tax, as compared with $6,377,101 during the same period of 1928 and with $5,404,899 in 1927. The 40 week net income was equal, after $6.50' cumulative preferred dividend requirements, to $5.51 a share on the 1,355,129 shares of no par common stock outstanding as against $5.55 on the 1.060,925 common shares outstanding in the similar period ended June. 1928. Net profits of Loew's. Inc.. and subsidiaries for the year ended Aug. 31. 1929. according to the consolidated balance sheet and before depreciation and federal taxes was reported at $18,431,163.13. This compares with net profits in 1928 of $13,761.693.28. After depreciation and federal taxes net profits of all corporations were $14,074,688.60, equal after preferred dividends to $7.91 a share on 1.363.993 shares of no par common stock against $5.86 a share on 1,334.453 shares of last year. During Nov., 1929, as a result of larger earnings Loew's. Inc.. had increased the annual dividend on common shares from $2 to $3 with an additional cash disbursement of 75 cents. According to authoritative financial publications. Loew's is in strong cash position. January, 1929. it had approximately $15,000,000 in cash and call loans on hand. Proceeds of the sale of $14,175,000 preferred stock during 1928 have never been used except as a backlog of strength in the company's operations. Before publication of the Aug. 31, 1929 state ment for the fiscal year. The Wall Street Journal held this opinion of the company : "The highly gratifying earnings expected to be shown for the past fiscal year reflect further economies and benefits from the company's large expansion program of recent \ears. increased receipts from its theaters through * exhibition of talking pictures as well as augmented rentals from distribution of sound films throvgh its producing and distributing unit. Met ro-OoldwynMayer." Profits estimated for the last few months presage net of $15,000,000 by Loew's and subsidiaries for the vear ending Aug. 31. 1930, according to financial circles. This it is claimed will be equal to from $10 to $11 a share on the common stock. Financial statement issued by the company for the year ended Aug. 31. 1929, follows: LOEW'S, INC., AND 100% OWNED SUBSIDIARY CORPORATIONS CONSOLIDATED BALANCE SHEET, AUGUST 31, 1929 Assets Current : Cash and Call Loans $,', , T^oi,' co" Cash Reserved for Construction 1.717,937.59 Receivables: , , Accounts Receivable $2,265,673. SZ Notes Receivable , ^9.]58.08 Due from Affiliated Corporations 1.974.812.08 $10,074,374.29 4. 479.643. 6S 816