The motion picture almanac (1931)

56 The MOTION PICTURE ALMANAC 1931 Condensed Consolidated Balance Sheet Technicolor, Inc., and Subsidiaries December 31, 1930 ASSETS Cash and Call Loans: $ 417,572.58 Accounts Receivable (Less Allowance) 300,757.36 Merchandise Inventories 133,827.25 $ 852,157.19 Other Assets 3,090.76 Land, Buildings, Machinery and Equipment $3,063,151.56 Less: Allowance for Depreciation 546,981.85 2,516,169.71 Research, Development, Patents and Goodwill $3,668,961.18 3,521,143.46 Less: Allowance for Amortization 147,817.72 Deferred Charges 47,000.10 $6,939,561.22 LIABILITIES Accounts Payable $ 55,288.67 Accrued Accounts, including Federal and State Taxes 136,348.41 Mortgage Payable — due February 21, 1931 15.000.00 $ 206,637.08 Customers' Deposits on Contracts for Future Delivery 1,218,639.42 Minority Interest in Technicolor Motion Picture Corp 2,520.19 Preferred Stock — 80c per share Cumulative No Nominal or Par Value Authorized 100,000 shares Issued and held in treasury 17,425 shares 0 Common Stock — No Nominal or Par Value Authorized 600,000 shares Outstanding 517,548 shares 3,872,447.05 $3,872,447.05 Surplus — of which $174,250.00 has been appropriated for the purchase of Preferred Stock in Treasury 1,639,317.48 5,511,764.53 $6,939,561.22 Condensed Consolidated Income and Expenses for the Year Ended December 31, 1930 INCOME Net Sales Less: Cost of Sales (including $68,799.62 for amortization of Research, Developments and Patents) Gross Profit EXPENSES General and Administrative $ 374,395.60 Selling 662,068.41 Net Profit from Operations Before Provision for Income Taxes.. Other Income: Interest Earned _...$12,499.12 Less: Interest Paid 9,651.97 $5,925,916.00 4,045,280.00 $1,880,636.00 1,036,464.01 $ 844,171.99 Other Deductions: Bad Debts $46,649.77 Less: Bad Debts Recovered 1,917.60 State Taxes _ Loss on Sale of Permanent Assets Adjustment of Accounts Receivable.. $44,732.17 4,203.86 1,507.60 100.20 2,847.15 50,543.83 Net Profit Before Provision for Income Taxes Federal and State Income Taxes — Estimated Net Profit for the Year (after capitalizing expenditure of $172,438.70 deemed 47,696.68 796,475.31 120,000.00 to be Research, Development and Patent Costs) $ 676,475.31 Trans-Lux Daylight Picture Screen Corp. Balance Sheet, December 31, 1930 ASSETS Current: Cash on Hand and in Banks $106,137.94 Investment in Bonds 270,588.87 Notes Receivable 26,387.50 Interest Receivable 3,845.49 Accounts Receivable Western Union $ 92,586.93 Others 24,066.46 $1 16,653.39 Less: Reserve 705.67 115,947.72 Inventories 98,526.11 TOTAL CURRENT $621,433.63 Investment in Affiliated Companies 150,000.00* Fixed: Land _ $ 33,150.00 HuildinK, Machinery, Equipment $ 73,002.15 Furniture and Fixtures 17,258.12 $ 90,260.27 Less: Reserve 36,008.94 54,251.33 87,401.33 in the year. At the end of 1929 Fox had an excess of more than $19,000,000 in current liabilities over current assets, while as of Dec. 27, 1930, there was a net working capital of $15,494,118. Cash on hand at the end of 1930 amounted to $5,308,942, which, while off slightly from the June 30, 1930, figure, showed a substantial increase over the $2,492,599 cash reported as of December 28, 1929. During the year, the report states, the production department of the business was put under budget control for the first time, and savings of at least $3,000,000 were expected to result therefrom in 1931. During 1930, Fox Film declared dividends at the rate of $4 a year a share, totaling $10,102,240. This amount was barely covered by net operating profit before non-recurring charges, but is not covered by net after that charge. Further, it ■s $3,585,778 over the income if it had been calculated on the basis suggested by the bankers' accountants. In recent years Fox has had an even more rapid increase in theatre receipts than it has had in film rentals. The following table gives an outline of the growth of this part of the Fox business so far as it re' lates to American theatres: Year No. Theatres Gross Receipts 1927 2 $ 2,054,700 1928 249 33,923,783 1929 455 39,962,044 1930 ^32 51,414,002 This gives the number of theatres controlled by Fox Film but does not include theatres operated by Fox Theatres Corp., an affiliated company. The last column includes the receipts only from the dates of control of the various theatres and hence not necessarily the total receipts of the theatres during the year. The corporation owned or had an important interest in 1.013 theatres of which 532 are in the United States, 395 in Great Britain and 86 in Australia. (Fox Theatres properties are in addition.) Revenues from Movietone News and the other Fox news services increased 21 per cent in 1930 over 1929, and 14 per cent during the first three months of 1931, as compared with the corresponding period of 1930. Investments in Movietone City, the Hollywood studio, laboratory, studios of the Movietone News, and the home office in New York exceed $14,750,000. The total number of employees in all its departments is now 12,888. The total cost of administration and the distribution of films has been a steadily declining percentage of film rentals, with the lowest relative costs last year in the history of your company. In 1930 the administration and distribution costs were more than 45 per cent lower in comparison with film rentals than they were in 1925," Clarke stated. In this report there is a condensed consolidated statement of profit and loss. The first item of $96,446,346 includes $45,032, 344 received from film sales and rentals, about two-thirds of which was from domestic sources and about one-third from foreign sources. It also includes $51,414,002 from theatre receipts, of which there were minority interests in the case of 141 theatres. It will be observed that a minority interest in profits of $790,057 is deducted near the center of the statement. The other items of income are self-explanatory with the exception of "Other in