The motion picture almanac (1931)

5S The MOTION PICTURE ALMANAC 1931 Second preferred stock 2,000,000 'Common stock and surplus ♦Common stock 4,173,951 Real estate mortgages 1,000,000 Six per cent, notes Notes payable 1,636,313 Advance payments 288,199 Accounts payable 2,236,429 Conting. res '. 616,806 Rentals received on pictures Federal tax res Surplus from revaluation of studio land 1,354,000 Earned surplus 1,597,872 2,000,000 4,1 73,951 1,000,000 li275~39S 387,868 1,902,440 623,549 67,043 1,354,000 4,356,838 2,000,000 8,780,019 55,000 2,373,000 1,694,397 457,377 1,605,377 751,463 319,738 90,000 Total $17,077,670 $19,372,184 $20,512,471 2,000,000 7,904,402 557600 2,500,000 1,274,330 380,625 1,605,147 1,027,164 ~7ojoo6 $19,384,268 'Represented by 250,000 no-par shares. tAfter depreciation and amortization. JTo foreign office. Warner Brothers Pictures, Inc., and Subsidiary Companies Condensed balance sheet for 13 weeks ended Feb. 28, 1931, and comparisons with quarter, ended Nov. 30, 1930, and quarter ended March 1, 1930: ASSETS Feb. 28, '31 Nov. 30, '30 Land, Bldgs., etc $169,027,797 $164,614,464 Goodwill 8,745,076 8,435,915 Notes Rec, etc 691,612 1,017,032 Accts. Ret 4,191,798 3,698,722 Adv. to Prod 947,615 1,231,828 Inventories 22,024,417 22,275,763 Rts. & Scenarios 1,168,068 1,287,542 Mortgages Rec 526,937 555,625 Special Deposits 2,523,428 2,432,321 Invest. & Adv 7,443,193 7,525,203 Def. Charges 3,649,648 Unamort. Bonds disc, and exp 890,546 Unamort. dev. exp 337,564 Prepayments 2,245,418 Elimination of undistributed earnings of theatre cos., stocks of which are owned 50 per cent or less although effectively controlled 130,032.89 Provision for poss. loss on investment in and advances to subs 879,451.53 Elimination of net of misc. deb. and cred. adjustments 444,666.02 Reduction of income taxes by reason of foregoing adjustmts. 204,977.84 Mar. 1, $120,054 8,277 528 3,030 49 25,095 1,168 735 2,381 7,183 3,948 30 068 666 978 .341 ,566 237 062 841 ,198 ,012 203 Totals $225,878,987 LIABILITIES Feb. 28, '31 Funded Deb. & Mtge $106,225,057 Notes payable 3,006,425 Accts. payable 9,387,029 Purch. money oblig 2,207,005 Due ami. cos 79,199 Royalties payable 835,373 Deferred Income 408,637 Fed. Tax Reserve Adv. payable 815,328 Minority interest 1,883,378 Remitt. from affil. cos Res. for Conting 2,046,062 Capital stock 87,848,629 P. & L. surplus 9,007,220 Construe. Oblig $228,414,032 $178,871,939 Nov. $104. 3 to 1 29, '30 140,586 555,000 714,436 909,614 84,330 888,051 425,405 260,000 992,284 870,605 ,268,995 848,629 504,559 ,187,000 Mar. 1, '30 $ 72,686,739 5,947,012 8,660,503 2,727,638 79,368 948,568 1 ,400,000 1,545,892 4,443,129 61,368,639 16,976,576 Totals $225,878,987 $228,414,032 $178,871,939 Comparative Consolidated Profit and Loss Account Quarter Ended Feb. 28, 1931 Net income before providing for amortization and depreciation of properties, interest and miscellaneous charges and Federal income taxes $11,021,092.19 Deduct : Amortization of film costs (exclusive of depreciation of studio properties) $7,495,901.51 ] Amortization and depreciation of all prop )■ Quarter Ended Nov. 29, 1930 $13,518,966 erties 2,524,327.63 ] Interest and discount expense 1,631,397.50 ) Provision for investments in affiliated com I panies 50,865.74 f Miscellaneous charges 48,997.75 J 11,751,490.13 .9,731,217 .1,899,655 Loss from operations Deduct — Other incsme: Interest and discount earned Dividends received from affiliated companies 147,998.19 Miscellaneous income 22,400.00 .$ 730,397.94 11,630,872 95,249.51 Loss before minority interests Add — Proportion of net earnings applicable to Minority Stockholders Net Loss for the thirteen weeks ending February 28, 1931 'Net income. 265,647.70 $464,750.24 35,316.20 $500,066.44 51,673 •$1,576,421 Surplus Account November 29, 1930 (subject to the realization of the face value of trade accounts receivable, less reserves, and cost of inventories, less reserves, of the radio and record division) $12,504,559.72 Deduct — Loss for the thirteen weeks ending February 28, 1931 500,066.44 Deduct — Adjustments in respect of inventories and accounts receivable of radio and record division $3,073,368.53 Loss on capital assets 84,663.72 Less $3,158,032.25 -Reduction of reserve for Federal income taxes 260,000.00 $12,004,493.28 2.898,032.25 $9,106,461.03 99,240.49 Dividends paid on preferred stock (to and including March 1, 1931) EARNED SURPLUS— FEBRUARY, 28, 1931 $9,007,220.54 260,483.17 41,931.98 251,403.40 NOVEMBER 29, 1930 $12,504,559 MARCH I, 1930 $16,976,576 $2,688,973.92 $3,358,195.08 In the assets side of the balance sheet, the items listed under "Current Assets" are self-explanatory with the exception of "In' ventories" which has been discussed in earlier paragraphs. The major item included under "Invest' ments securing 6 per cent gold notes" is the investment in Loew's were transferred to Film Securities April 1-5, 1931, and in connection with this financing the holdings of stock by Fox in Loew's, were trans' ferred to Film Securities Corp., in consideration of which Fox received $28,800,' 000 in cash and 462,000 shares of the Class Securities has outstanding senior to the Class A stock $20,000,000 two-year 6 per cent Secured gold notes and 100,000 shares outstanding shares of Class A stock. Film of $7 Dividend Cumulative Preferred stock. A stock of Film Securities, being all the The only other item under this head is the investment in theatre properties in England, amounting to $19,030,929. The item "Investments in respect of which proportionate shares of profits are included" consists of the investment in theatres in the United States. The item "Other Investments" consists largely of an investment in Fox Hearst Corp. and investments in foreign theatres. The item "Land, buildings, leaseholds, equipment, furniture and fixtures" includes over $14,750,000 invested in studios, home office and laboratories, and over $34,500,000 in theatre properties. All these values in fixed assets are after the deduction of reserves for depreciation of over $13,900,000. The item "Deferred charges" consists of bond dis' count and uncompleted projects. All items listed under "Current liabilities" are self-explanatory. The secured 6 per cent gold notes, referred to under liabilities to be refinanced, were retired on April 15, 1931, from the proceeds of the sale of $30,000,000 five-year 6 per cent convertible gold debentures and from the funds secured as a partial consideration for the transfer of Fox's interest in Loew's, to Film Securities. The note payable of Wesco Corp. was paid from part of the proceeds of the sale of $15,000,000 twoyear 6 per cent gold notes of Wesco. The portion of the funded debt maturing in 1931 is also to be retired partially from the proceeds of the same financing. The item "Funded debt of subsidiary companies" consists of the funded debt maturing later than 1931. The item "Appropriation from surplus" is a temporary reserve for realization of inventories, set aside from earned surplus on the advice of the auditors to reflect the possibility that unexpected economic conditions during the natural life of the films may result in their bringing in less than the normal rentals for such pictures. At the close of the period this appropriation will be returned to earned surplus, and it will in no way affect future earnings of the company.