Motion Picture Daily (Jul-Sep 1960)

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Motion Picture Daily Friday, July 8, 191 M-G-M Status ( Continued from page 1 ) equal to the total earned for the full 52 weeks of 1959. The M-G-M president was delightedly optimistic about a continuing increase in the profit trend for this year and said he fully expected 1961 would produce the greatest earnings ever shown by any film company. He extended this optimism, in fact, to the entire industry, pointing out that the industry now has adjusted to changing times, that people "are buying when you give them what they want" and that he had no sympathy with those within and without the industry who are saying, "The business has gone to hell." Sees an Even Better 1961 Vogel told the press, "We expect earnings for the full fiscal year to exceed $3.75 per share— and we have sound reason to believe that fiscal 1961 will produce an even higher return. The strength of our assets and our concrete plans for the future give us every confidence in continued growth." He added that when final figures for the fiscal year ending August 31 became available early in November, he would recommend to the board of directors that additional dividend action be taken. Pointing out that the 12-week third quarter which ended June 9 was the seventh consecutive profit period since present management assumed office, Vogel said, "M-G-M has come a long way since its 1957-58 crisis. The assets which were preserved for the stockholders have now appreciated considerably in value. More importantly, these assets are producing earnings— every single one of them." Dividends Ready for Mailing Vogel noted that quarterly dividend checks representing 30c per share would be mailed to stockholders within a few days, together with the results of the first three quarters ending June 9. "That dividend payment will be the fourth since the resumption of dividends in 1959," he said. The $2.92 per share earned by M-G-M on 2,505,100 shares up to June 9 might be compared not only with the $2.31 per share earned during the first three quarters of 1959 on 2,668,388 shares but also with the $2.91 earned for the full year of 1959 on 2,641,288 shares then outstanding. Makes Comparison with 1959 "While there are fewer shares now outstanding as a result of company purchases, the fact remains that M-G-M earnings per share in the first 40 weeks of this year equalled those of all 52 weeks of 1959," Vogel said. "Therefore all earnings during the current 12-week period which ends August 31 will provide additional profits over the full year of 1959. "The favorable results in the current year were achieved despite the impact of the strike of actors and writers against the motion picture industry," Vogel pointed out. "M-G-M is regarded as the largest London Unit Considers By-Law on Hooliganism From THE DAILY Bureau LONDON, July 7. The London Country Council is to consider whether there should be a by-law making hooliganism in cinemas and other places of entertainment a punishable offence. This matter was originally raised by the Society of Cinema Managers who referred it to the Cinematograph Exhibitors Association. Following representations by the CEA, the London County Council requested further information to put before its public control committee. motion picture production and distribution company in the world," he said, "but that's only part of its strength. M-G-M is also a television company, a recording company, a music publishing company and an exhibitor that owns and operates theatres overseas. "Furthermore, M-G-M has extensive real estate values not only in its Culver City, California, studio — the world's largest film production center —but also in its studio, office building and distribution facility in London and in its 49 theatres in countries outside the U.S." Points to Real Estate Value In this conneciton the M-G-M president said wryly that the west coast processing laboratory — one of the properties he had considered selling when the company needed cash two years ago— will earn half as much this year alone as the price offered for it at that time. The studio real estate, he said, is worth today three times what it was valued at then. He digressed for a moment to emphasize that "the investor who buys stock in a motion picture company has a built-in hedge— an insurance policy." In today's entertainment market, he pointed out, a motion picture has enormous value beyond its immediate return in box offive revenue. Television now, and pay television and the development of color television in the future mean that there will be a market for such pictures for as far as can be seen, he said. Cites Forthcoming Productions On the company's prospects for greater earnings in 1960, he said that no company in recent times would have the earnings prospects that M-G-M will enjoy. It will be the year that "Ben-Hur," which has now returned $10,000,000 from 60 playdates, will reach its biggest earning potential. In addition the company will have "Cimarron," "King of Kings," the new "Mutiny on the Bounty," "The Four Horsemen of the Apocalypse" and the fifth reissue of "Gone with the Wind" in release. "As encouraging as the results of picture distribution have been to date, we see greater opportunities ahead," he declared. "Television is certainly a major factor in M-G-M's present. The company Plan 'Oceans' Tie-in With Mosler Safe Co. Warner Bros, an dthe Mosler Safe Company have made a nation-wide tie-up for "Open-the-Safe" theatre contests in behalf of "Ocean's Eleven," drama with a Las Vegas background that will open in 200 cities across the country following its world premiere Aug. 3 at the Fremont Theatre in Las Vegas. More than 1,200 Mosler Safe dealers throughout the nation will join in the campaign. Post -'48 Film CDl Acquires 'General' Continental Distributing, Inc. has acquired United States and Canadian distribution rights to "General della Rovere," it was announced by Irving Wormser, president of Continental. Directed by Roberto Rossellini and starring Vittorio de Sica and Hannes Messemer, "General della Rovere" won the Golden Lion Award at the Venice Film Festival and Hannes Messemer was named best actor. 'Lovers' to Victoria Jerry Wald's "Sons and Lovers," a 20th-Fox release, will have its American premiere at the Victoria Theatre here following "Murder, Inc.," also a Fox release. American Legion ( Continued from page 1 ) officials appears to be in direct contradiction to statements made here in May by National Commander Martin McNeally affirming the effectiveness of the "Waldorf Declaration" and the Legion's faith in the film industry. McNeally, who did not attend the convention, could not be reached at press time for comment on the state group's action. ! The state Legion, at the same meeting voted a "commendation" to the Motion Picture Alliance for the Preservation of American Ideals. derives considerable income from the leasing of its film features to television. "M-G-M is producing series specifically for TV. Two important new series have been sold for fall premieres. Others are in preparation by a newlyexpanded M-G-M— TV Division. "M-G-M is in close touch with a certain development in the field of pay-TV and intends to play a part in this field if such activity can be shaped up significantly and profitably." Diversification Vital Vogel added that its present diversification in entertainment in no way meant that M-G-M would restrict itself to entertainment enterprises. "The board has been actively studying situations in a variety of industries," he said. "We're ready to put cash or stock of any combination of such where it will do the stockholders the most good." He indicated in an aside that up to $80,000,000 could be available for such a purpose. (Continued from page 1) can realize more from them by sellii them ourselves than we could by sej ing them in a package to someoi else." The company is in no hurry to n lease this block of pictures, estimate'! to number about 250, because not s of the pre-'49 library has been sold yet, and because "the company is : no immediate need of cash." Vogel cited the fact that one pictui -"The Wizard of Oz"-netted $30d 000 from a single sale to television an that the company presently is negot ating another one shot sale of a pW ture for $250,000. He refused to nam the picture but said it definitely wr not "Gone With the Wind," whio will be reissued to theatres next yea In emphasizing the enormous ass<j value of the backlog of pictures, Vog» pointed out that television rentals havij brought in about $34,000,000 in gros revenue and another $24,000,000 is 1 sight in outstanding contracts fc showings. Since the pictures had a) ready been amortized when they wer sold to television, the only expense chargeable against this revenue an those resulting from the sales opera tion. M-G-M Eyes Pay-TV ( Continued from page 1 ) with Matty Fox concerning a possible tie-up with Skiatron, a deal actually is closer with an electronics company! unnamed but well known in its field1 which has a pay television system) Vogel said. The MGM president said he hac been approached by RKO Teleradk: to supply product for the Hartforci; test of broadcast pay TV but that no, commitments had been made. M-G-M Promotions ( Continued from page 1 ) gap left with the promotion of William J. Devaney to Western Division manager. An M-G-M veteran since 1929/ Madden has been Philadelphia branch manager for the past six years. Eckman moves up to the position! of branch manager in Philadelphia, after serving as Minneapolis branch; manager for the past three years. He joined the company in 1937. Four on Coast (Continued from page 1) was named by supervisor Kenni Hahn; producer Sol Lesser, by supi visor Ernest E. Debs; E. L. DePatii Warner Brothers executive, by supervisor Frank G. Bonelli, and George Flaherty, IATSE International representative, by supervisor Warren Dorn. Esser, chairman of the commission, has set July 21 for the next meeting of group. Five from Fox for Ju Twentieth Century-Fox will release five films in July, including "The Story of Ruth," "The Lost World," "From the Terrace," "Murder, Inc.," and "Trapped in Tangiers."