The film daily year book of motion pictures (1930)

Mortgages on real estate — payable $5,000 annually, balance October 10, 1933 $55,000.00 Two and one-half year 6% notes maturing January 1, 1930 **2, 247,000.00 Advance payments to be liquidated by film service 381 278. 23 Reserve for contingencies 623 549!22 Capital stock : First preferred 8% cumulative stock : Authorized and issued 30,000 shares of $100 each $ 3,000,000.00 Less — retired 6,750 shares of $1011 each 675,000.00 Outstanding 23,250 shares 2,325,000.00 Less — in treasury 919 shares 91,900.00 22.331 shares 2.233,100.00 Second preferred 7% cumulative stock : Authorized 40,000 shares of $100 each. Issued 20,000 shares 2,000,000.00 (Dividends unpaid from Jan. 1, 1925) Balance represented by 250,000 shares of common stock without par value 4,173,950.85 Surplus : Balance at November 3, 1928 4,606,068.35 Profit for the nine months to August 3, 1929, per annexed statement 119,961.75 4,726,030.10 Dividends paid on first preferred stock during the nine months ending August 3, 1929 141,366.00 Contingent liabilities : Notes discounted, endorsed and guaranteed (including $110,518.75 for Universal Chain Theatrical Enterprises, Inc.) $ 168,604.37 ""Note — These notes were paid in full at maturity, January 1st, 1930. 8,407,050.85 4,584,664.10 $18,959,544.80 Warner Bros. Pictures, Inc. REPORT of Warner Bros. Pictures, Inc., and subsidiaries for the fiscal year ended Aug. 31, 1929, revealed one of the most striking examples of rapid growth in the history of the industry. The net profit at the end of that fiscal year was equivalent to an increase of 744.65 per cent over the previous year. Net profits, including $2,757,177.22 representing earnings of subsidiaries during the period but prior to date of acquisition, totaled $17,271,805.57, showing a considerable increase over the net profits of $2,044,841.78 reported for the fiscal year of 1928. Net profit for the fiscal year ended Aug. 31, 1929. including earnings of Stanley Co. of America and First National Pictures, Inc., subsidiaries of Warner Bros. Pictures, Inc., was equivalent, after preferred dividends, to $6.28 per share on the 2,627,405 shares of common stock outstanding. This compares with $3.72 per share earned on 550,000 combined class "A" and common stock outstanding on Aug. 31, 1928, and with a deficit of $1,234,412 in 1927. Gross assets for the Aug. 31, 1929, fiscal year, after depreciation, were reported at $110,870,822 as against $5,009,177 for the preceding year and $4,889,469 for 1927. Common stock and surplus for the 1929 fiscal year totaled $73,611,990 as compared with $3,675,155 the previous year. The rapid expansion which the company has undergone during the last fiscal year is reflected in the growth in total assets, which reached $167,189,024 as of Aug. 31, 1929, and compares with total assets of $15,785,801 of the previous year. The direct cause of Warner's rise to its present position was the development of sound pictures, in which the organization was the pioneer, having started production nearly a year before its competitors. The phenomenal earnings from this source, which made Warner's 1929 year a record in the amusement industry, furnished funds and a credit basis for the building up of a major chain of theaters, thus giving the company distribution facilities which it formerly lacked. In January, 1929, Warner stockholders were offered rights to subscribe to about 147,000 additional common stock at $100 on the basis of one share of the new for each six shares held. These rights expired in March of the same year. Funds received from this new financing were used to liquidate current and certain term indebtedness of the compmy and its subsidiaries, Stanley Co. of America; to reimburse corporation for acquisition of additional properties, including the entire capital stock of M. Witmark & Sons, Continental Lithograph Corp. : to owner of building now occupied by the organization in New York and to improve the company's cash position. The capitalization on March 2, 1929, consisted of 364,357 shares oi preferred stock and 984,909 shares of common. During the same month the company issued rights to its common stockholders and on April 18 made an offer for the exchange of Warner stock for the common stock of Stanley Co. of America. The company reported for the nine months ended June 1, 1929, net profits amounting to $11,957,760, including the corporation's equity in the profits of subsidiary and affiliated companies during the period but prior to the date of their acquisition. Thi9 was equivalent, after deducting preferred dividends, to $9.58 per share on 1,185.826 shares of common stock outstanding at June, 1929. The corporation's equity in earnings of companies acquired between Aug. 31, 1928, and June I, 1929. included in these figures for the period prior to the date of their acquisition, amounted to $1,195,054. This compares with net profits of the company for the nine months ended May 26, 1928, amounting to $1,123,947, equivalent _ to $2.04 per share on the combined 550.000 shares' of class "A" and common stock then outstanding. Capitalization of the company as of June 1. 1929, consisted of 360,987 shares of preferred stock and 1.185.826 shares of common stock. On June 27, 1929, the corporation split its common stock on a two for one basis. 830