Motion Picture Herald (Apr-Jun 1931)

30 MOTION PICTURE HERALD April 11, 1931 18 MILLION NET VERIFIES WALL STREET OPINION OF PARAMOUNT STRENGTH Assets Are $306,269,158; New Record High Ratio of Current Assets to Liabilities at End of 1930 Was 2.46 to I Wall Street opinion that ParamountPublix Corporation is one of the soundest units financially in American industry, and one of the top notch business structures in the motion picture field, was corroborated this week by issuance of the corporation's financial statement for the past year, which revealed net profits of $18,381,000, and a net of $4,834,989 for three months ended December 27, after charges and reserves for all taxes. The record earnings for 1930 are 18 per cent ahead of 1929, previous record year, when the net reached $15,544,000, and are more than double the 1928 net of $8,713,000. Earnings of 1930 equalled $6.15 per share. Fourth quarter profit equalled $1.55 per share. Per Share Earnings Since 1928 Earnings for the fourth 1930 quarter compare with $5,812,000 net for the same period in 1929. Fourth quarter 1928 net totaled $2,737,000. Comparison of profits per share yearly since 1928 follows : Av. No. Shares Earnings Year Profits Outstanding Per Share 1930 1929 1928 $18,381,178 15.544.544 8.71.?.063 $3.986,8 '9 2,445 ,,104 2,062,857 $(-..15 6.36 4.22 The company during the year paid out in dividends approximately 66 per cent of its net income and its earned surplus account increased from $26,764,000 at the end of 1929 to $33,004,000 at the end of 1930. All items in the asset column of the bal Paramount Dividend Record Year Cash 1917 $10.00 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 Dividends and Rights on Stock Paid in Paid in Rights Total Stock 1928. 1929. 1930. 5.50 8.00 8.0D 8.00 8.0D 8.00 8.00 8.00 8.00 8.00** .75** 3.00** 4.00** $2.00 2.00 $6.56* 4.81* 1.88* $10.00 5.50 8.00 8.00 8.00 8.00 8.00 14.56 14.81 11.88 8.00** .75** 3.00*** 4.0»*** *Rights valued at average of highest and lowest market price. **Four Dividends of $2.00 each paid on old stock; first quarterly dividend of 75 cents on new stock, which had been split three for one, paid December 29, 1928. ***On new stock. Paramount Publix Corporation Comparative Consolidated Balance Sheets ASSETS Dec. 27, '30 Cash, including call loans $8.3'66,189.63 Accounts and bills receivable, etc 6,356,297.00 Inventories 23,691,660.30 Securities 1,165,231.88 TOTAL CURRENT ASSETS $39,579,378.31 Deposits to secure contracts $3,290,688.01 Invest, in subs, and affil. cos. (not consolidated) 22,392,693.19 Fixed Assets (land, bldgs., etc.) 233,419,188.65 Deferred Charges 7,587,210.16 TOTAL ASSETS $306,269,158.82 LIABILITIES -■Accounts payable $3,661,436.16 Due to subs. cos. (not consolidated) 288,63'5.99 Unsecured trade accept, disc, by foreiRn subs 675,718.32 Excise taxes, payrolls and sundries 4,491,202.19 Owing to outside producers 1,113,488.16 Purchase money obligations maturing in 12 mos. 2,253,455.32 .Serial payments on investments due in 12 mos 1,377,610.92 Federal taxes (est.) 2,220,000.00 Accruals TOTAL CURRENT LIABILITIES $16,081,547.06 Purchase money obligations maturing after 1 year $7,480,93'5.48 Serial payments on investments due after 1 year 4,426,018.31 Mortgages and bonds of subs, cos 76.859.795.21 20 year 6% sinking fund gold bond 13.363,000.00 20 year 6%% sinking fund gold bonds 14.756.O;)0.00 Advance payments 1.373.754.38 Appropriated surplus and other reserves 7,918,853.53 Minority Interest 7.534,939.72 Capital Stock 123.470,147.41 Surplus 33,004,167.70 Dec. 28, "29 $7,971,133 7,528,001 20,564,091 990,170 $37,053,395 2,962,100 16,473',111 174,838,176 5,383,625 $236,710,407 $4,278,262 367,377 1,086,651 2,588,236 1,313 2'9 2,380,000* 2,946,918 $14,960,683 $5,776,913 59,030,217 14,323,000 836,983 9,310,996 6,728,415 98,979,175 26,764,025 Dec. 29, '28 $6,155,119 7,585,893 19,454,00i 2,117,708 $35,312,723 2,729,166 10,399,129 106,872,337 5,033,816 $170,631,704 $2,941,262 148,222 1,797,593 2,412,035 1,218.166 920,000* 2.209.627 $11,646,905 $7,294,143 41,607,802 14,885,000 666,388 2,107,808 5,686,624 68,187,331 18,549,703 ance sheet showed increases over 1929 and 1928, current assets rising to $39,579,378 from $37,053,395 at the end of 1929, and $35,312,723 at the close of 1928. Net working capital gained from $22,092,712 at the end of 1929 to $23,497,831 on December 27, 1930. In spite of increased taxes and appearance of additional items in the liabilities column, total current liabilities rose only $1,120,864 during 1930 and the ratio of current assets to current liabilities at the end of the year 1930 was 2.46 to 1, against 2.47 to 1 at December 28, 1929. Maintains Strong Position Paramount has maintained the strong working capital position which it has built up over the last few years by the policy of making most of its acquisitions through share exchanges, thus conserving cash and other assets to the fullest extent. During 1930, property and plant account was heavily added to, fixed assets at the end of the year totaling $233,419,188, compared with $174,838,176 at the end of 1929 and $106,872.337 at the close of 1928. Total assets of $306,269,158 at the end of 1930 compared with $236,710 at the end of 1929 and $170,631,704 at December 29, 1928. Decreases in accounts payable, money due to subsidiaries, purchase monev obligations, serial payments and appropri ated surplus were shown in the liability column. Although net profit for 1930 established a new high record, per share earnings were slightly smaller, amounting to $6.15 a share in 1930, against $6.36 a share in 1929, due to a larger number of shares outstanding. Consolidated earned surplus at the end of the year amounted to $33,004,167, against $26,764,025 last year. Funded Debt Increased Funded debt of the corporation increased during 1930 as a result of the issuance in August of $15,000,000 20-year 51/2 per cent sinking fund gold bonds for the purpose of providing funds for theatre acquisitions. In Paramount Surplus A/C At December 27, 1930 Surplus at December 28, 1929 $26,764,025.02 Add: Profit for twelve months to December 27, 1930, after providing for Federal taxes 18,381,178.00 $45,145,203.02 Less: Dividends on common stock (paid in 1930) 12,141,035.32 Surplus at Decern ber 27, 1930 $33,004,167.70