Film year book (1928)

Roxy Theaters Corp. AUTHORIZATION of a plan to retire current debts of Roxy Theaters Corp., through issuance of $2,500,000 in 6J4 five-year sinking fund gold notes was given by stockholders in September, 1927. The purpose of the financing was to erase a deficit of over $2,000,000 incurred in erection of the theater. Current indebtedness of the company amounted to $2,300,000 in March when the house opened but was reduced to $1,937,541 on July 1. Income since the opening exceeded expectations, S. L. Rothafel pointed out to stockholders in September, stating that it had never dropped as low as the estimated gross of $85,000. Net, he said, is running at an average of $40,000 weekly. Net for the first year of operation ending in March, 1928 will be between $1,750,000 and $2,250,000 after all charges, he estimated, predicting the second year would show an increase of 15 per cent. (For detailed grosses of the Rory week by week turn to index and look under "Variety's Box Office Records.") Shortly after its opening control passed to the Fox Theater Corp. It was assumed that following the flotation of the $2,500,000 in debentures, dividends on the Class A stock of which 125,000 shares are outstanding would be declared. Criticism of directors representing the Fox interests developed in October for their refusal to agree to declaration of a dividend by Bennett, Converse & Schwab, New York brokerage firm which originally brought out Class A stock. In the opinion of three directors representing Class A stock, the earning record for the summer and indicated earnings records for the winter justified inauguration of dividends, but such action was resisted by four directors representing Fox interests and the director representing the house owning the note issue. The bankers stated that gross income from March 19 to Sept. 30, aggregated $3,040,654, indicating a weekly average of $104,800, while expenses have average $83,956 weekly. * Saenger Theaters, Inc. CONSOLIDATED net earnings of Saenger Theaters and subsidiaries in the six months ended July 2, 1927 totaled $555,843.49 before depreciation and $398,729.26 after depreciation. The value of real estate and buildings, as appraised by the American Appraisal Co. on Aug. 1, 1925, less depreciation and plus additions and permanent improvements from that date, has been Before Depreciation Year ended Dec. 31, 1923 $600,946.15 Year ended Dec. 31, 1924 648,481.99 Year ended Dec. 31, 1925 663,870.35 Year ended Dec. 31, 1926 698,895.19 Six mos. ended July 2, 1927 555,843 49 In October, an issue of $800,000 of first mortgage and collateral trust bonds were sold. These were a part of Series B of the sinking find 6 $4 per cent bonds of which $2,500,000 were author fixed at $3,168,078.26. Consolidated net earnings of the company and its subsidiaries after depreciation available for bond interest and Federal taxes, are given here. Net earnings, as below after depreciation, for the four years and six months ended July 2, 1927, averaged $512,435.55 per annum. The many favorable leasehold interests are carried on the balance sheet at $1. Earnings compare: Depreciation $166,249.89 161,976.90 171,292.09 205,444.27 157,114.23 After Depreciation $434,696.26 486,505.09 492,578.26 493,450.92 398,729.26 Number Times Interest Earned on Series A & B bonds After Depreciation 3.05 3.41 3.45 3.46 5.59 ized, dated as of Aug. 1, 1927, and due Oct. 1, 1940. Of the authorization, $2,300,000 ha? been issued, with $2,192,000 outstanding. The ccupons are in denominations of $500 and $1,000 with interest payable Feb. 1 and Aug. 1. Balance sheet, July 2, 1927, after giving effect to sale of $800,000 Series B First Mortgage and Collateral Trust, Sinking Fund, b'AVo Gold Bonds as per contract dated October 6, 1927, and sale of $225,000.00 Preferred, 7c/o Cumulative Capital Stock at Par for Cash. BALANCE SHEET JULY 2, 1927 ASSETS Current Assets : Cash Accounts receivable : Advertisers, theaters, etc Partly owned companies Officers and employes Notes receivable: Advertisers, theaters, etc Employe — secured Dividends and accrued interest receivable Inventories (company's estimate) : Supplies Motion picture service Total current assets Investments : Stocks of subsidiary companies — entirely owned ! Stocks of affiliated and associated industries Stocks of sundry domestic corporations Bonds of domestic corporation Advances to partly owned corporations Total investments Due from subsidiary companies Due by employe on house sale contract Cash on deposit with trustee of fixed sinking fund to retire first mortgage and collateral trust, fifteen-year, 6J4 gold bonds Property (including $1,175,978.30 from revaluation): Land Buildings $326,508.23 33,970.62 86,178.90 21,746.33 4,130.65 2,720.00 16,250.00 18.028.71 78,726.43 ,265.000.00 742,464.22 2,612.50 200.00 272,367.58 $838,677.00 1,703,225.57 $588,259.87 $2,282,644.30 220,040.85 3,089.87 6,878.97 822