Year book of motion pictures (1940)

000; Total funded debt (payable within one year under sinking fund provisions, $200,185. of which bonds of a principal amount of $118,000 are in treasury) 9,462,891.64 Deferred income 15,643.33 Reserves: For discount on bonds purchased and held in treasury, $13,622.50; For taxes and contingencies, $653,553.32 667,175.82 C apitol Stock: Preferred 7% cumulative convertible (entitled in liquidation to $110 per share and accrued dividends): Authorized and issued — -64,304 shares of $100 each (dividends paid to March 31, 1936— arrears $19.25 per share, or $1,237,852), $6,430,400; Common: Authorized — 1,400,000 shares of par value of one cent each, issued and outstanding — 1,206,381 shares, $12,063.81 6,442,463.81 Surplus: Capital surplus, per statement attached, $7,868,888.05; Operating surplus, per statement attached (see note appended to statement), $890,966 8,759,855.02 Contingent Liabilities: Pending lawsuits against the companies; amount of liability not determinable. Keith-Albee-Orpheum Corporation and a subsidiary company have guaranteed performance of the terms of various contracts made by affiliated companies. $26,614,285.57 CONSOLIDATED STATEMENT OF PROFIT AND LOSS For the Year Ending December 31, 1938 Income: Theater admissions, $13,171,210.42; Rents and other income, $1,757,677.44 $14,928, 887.8« Expenses: Film service, $3,801,583.76; Artists' salaries and production expenses. $436,368.30; Other salaries and wages, $3,145,980.95; Operating expenses and theater overhead, $5, 254,886.96 12,638,819.97 $ 2,290,067.89 Deduct — Depreciation and amortization of capital assets 781,167.42 $ 1.508.900.47 Other Income: Dividends received on investments in other companies (including approximately $40,000 not represented by current year's earnings), $280,027.06; Interest earned, $16,386.20; Recoveries on notes and accounts receivable written off in prior vears, $8,929.14; Sundry other income, $26,886.30 332,227.70 $ 1,841.128.17 Other Charges: Interest and discount, $580,018.65; Losses on capital assets, $3,257.36; Provision for losses of affiliated companies not consolidated (Note — Unrealized profits of approximately $115,000 have not been taken up), $56,103.80; Sundry other charges, $13,186.77 652,566.58 $ 1,188,561.59 Provision for income and excess profits taxes (less taxes on bond discount charged to surplus account) 191,565.69 Net Profit for the Year $ 996,995.90 CONSOLIDATED STATEMENT OF OPERATING SURPLUS For the Year Ending December 31, 1938 Balance ("deficit), January 1, 1938 $ 168,343.93 Credits: Net profit for the year ending December 31, 1938. per statement attached, $996,995.90; Discount on bonds retired, less Federal taxes thereon, $30,565; Reversal of provision for loss under lease, $18,750; Liquidating dividend from affiliated company, the investment in which is carried at a nominal amount. $13,000 1.059,310.90 Balance (surplus), December 31, 1938. . $ 890,966.97 Note — Dividends on preferred stock amounting to $2,025,576 have been paid out of capital surplus to December 31. 1938 in accordance with resolutions of the Board of Directors. These dividends and possibly certain other charges and credits to capital surplus should be considered in determining the amount of "consolidated net earnings of the corporation subsequent to January 1, 1928" for the purposes set out in the Cerificate of Incorporation. CONSOLIDATED STATEMENT OF CAPITAL SURPLUS For the Year Ending December 31, 1938 Balance, January 1, 1938 (after deducting dividends on preferred stock amounting to $1,462,916 paid out of capital surplus in 1936 and 1937 in accordance with resolutions of the Board of Directors) $ 8,431,548.05 Dividends on preferred stock paid out of capital surplus during the year in accordance with resolutions of the Board of Directors (declared prior to the elimination of the operating deficit on the books of the parent company) 562,660.00 Balance, December 31, 1938 $ 7,868,888.05 LOEWS, INCORPORATED Incorporated Oct. 18, 1919, in Delaware General Office, 1540 Broadway, New York % As of Jan. 3, 1938, Loew's, Inc. absorbed Metro owned or controlled. Move was voted by the Goldwyn-Mayer Pictures, Metro-Goldwyn Distrib board of directors to simplify the tax problems of uting CoTp. and all other subsidiaries it formerly the organization Combined organization includes 990