Motion Picture Herald (May-Jun 1946)

WARNER 6-MONTH NET $9,125,000 Compares to $4,605,000 in Previous Year; Term Bank Loan Reduced Warner Brothers Pictures and subsidiary companies last week reported net profit for the six months ending March 2, 1946 of $9,125,000, equivalent to $2.46 a share. For the six months ended February 24, 1945, net profit was reported of $4,605,000, or $1.24 a share. The 1946 figure was reached after provision of $8,630,000 for Federal income taxes and after a provision of $900,000 for contingencies. The 1945 figure was after provision of $8,200,000 for Federal income taxes and a provision of $170,000 for contingencies. In 1946 there were 3,701,090 shares of common stock outstanding. The profit and loss statement for six months follows : INCOME: Film rental income, theatre admissions, sales and miscellaneous income $76,863,607 Rent from tenants and royalties 2,594,977 79,458,584 COST OF SALES AND EXPANSES: Amortization of film costs.... $13,803,680 Other costs, including royal t^s and participations 4,179,742 Operating and general expenses 40,833,232 58,816,654 NET INCOME before items items shown below 20,641,930 DEDUCT: Amortization and depreciation of properties (other than $245,572 in respect of studio properties charged to costs).. 1,931,503 Interest expense 491,318 Provision for contingencies .... 900,000 Provision for goodwill purchased 57,356 Minority interests' share of profit 1,482 3,381,659 PROFIT before items shown below 17,260,271 ADD: Interest and discount earned.. 172,670 Dividends received 291,681 Profit on sales of securities 43,172 Miscellaneous credit 4,427 511,950 PROFIT before losses on sales of fixed assets and before Federal taxes on income 17,772,221 DEDUCT — Losses (net) on sales of fixed assets 16,689 PROFIT before providing for Federal taxes on income 17,755,532 Provision for estimated Federal taxes on income (Note F) 8,630,000 NET PROFIT for the six months ending March 2, 1946, carried to earned surplus 9,125 532 EARNED SURPLUS, August 31, 1945 29,977,306 39,102,838 DEDUCT — Dividends paid or payable 3,701,090 EARNED SURPLUS, March 2, 1946, carried to Balance Sheet.. $35,401,748 458,000 as compared with $68,228,000 for the corresponding period one year ago. Since March 2, 1946, the company has reduced its term bank loan by paying the installment due May 1, 1946, and by prepaying the installments due November 1, 1946; November 1, 1954, and May 1, 1955, each in the principal amount of $1,591,000. These payments have reduced the term bank loan to $23,865,000. A formal call for a stockholders' meeting will be mailed shortly to the stockholders for a special meeting to be held August 1. The meeting will consider proposals to cancel treasury stock, to increase the authorized capital stock and to split the stock on a twofor-one basis. The board of directors has not completed its study of an employee pension plan and consequently no such plan will be submitted to that meeting. RKO Directors Reelect All Company Officers . All officers of the Radio-Keith-Orpheum Corp., were reelected Tuesday at meeting of the board of directors in New York. Those reelected were : Floyd B. Odium, chairman of the board; N. Peter Rathvon, president; Ned E. Depinet, vice-chairman of the board and executive vice-president; Malcolm Kingsberg, vice-president; J. M. Whittaker, vice-president ; Gordon E. Youngman, vicepresident and general counsel ; William H. Clark, treasurer ; J. Miller Walker, secretary, and Garrett Van Wagner, comptroller. At the same time the board elected A. E. Reoch as assistant treasurer. At a stockliolders' meeting June 5 at Dover, Del., the following nine directors were reelected: Mr. Depinet, Mr. Rathvon, Harry M. Durning, Frederick L. Ehrman, L. Lawrence Green, L. Boyd Hatch, Mr. Odium, George H. Shaw and Mr. Walker. Price, Waterhouse and Qompany was appointed auditor for RKO. The gross income, after eliminating intercompany transactions for the six months ending March 2, 1946, amounted to $79, U.A. Stockholders Elect Board of Directors At the United Artists annual stockholders meeting in New York Tuesday, eight board members were reelected and one member was elected to represent Charles Chaplin, Mary Pickford and Vanguard Films for the coming year. Charles Schwartz, Isaac A. Pennypacker and Milton A. Kramer were reelected to represent Mr. Chaplin; Edward C. Raftery and E. Claude Mills were reelected, Herbert P. Jacoby, replacing Sidney Chaplin, was elected to represent Miss Pickford; and Niel Agnew, Mr. Kramer and Leonard R. Case were reelected to represent Vanguard. A meeting of board members was to be held Thursday to elect officers. UNIVERSAL 6-MONTH PROFIT $2,576,405 Universal Pictures Company, Inc., Tuesday, announced consolidated net profit of the company for the 26 weeks ended May 4, 1946, aggregated $2,576,405 after all charges, including Federal taxes based on income. This compares with $2,064,175 for the corresponding period of the preceding fiscal year. Monogram Net Up to $254,510 Monogram Pictures Corporation and its subsidiaries, in its report for the 39 weeks ended March 30, 1946, shows consolidated net profits after all charges, including provisions for Federal income and excess profits taxes, of $254,510, Samuel Broidy, president, announced Tuesday. This compares with $121,089 for the same period in the previous year, adjusted to a comparable basis. Net profits after all charges, but before provision for Federal income and excess profits taxes, amounted to $513,510, compared to $294,589 for the same period last year. The consolidated net profit for the 44 weeks ended May 4, 1946, after all charges including provision for Federal income and excess profits taxes amounted to $318,824, compared with $154,405 for the same period the previous year. In making public the company's financial report, Mr. Broidy said that volume from both the domestic as well as the foreign fields had increased substantially and that for the 39 weeks ended March 30, 1946, the increased volume amounted to 22.52 per cent over the same period last year. Mr. Broidy further announced that for the five-week period subsequent to March 30, income and profits were at the highest level in the company's history. Oversubscribe Korda Stock The $4,000,000 stock issue placed on the London stock market by Sir Alexander Korda's British Lion Film Corporation, Ltd., June 7, was oversubscribed eight times by public subscription within a few minutes following the announcement. Loew's Sets Dividend Directors of Loew's Inc., Monday declared a quarterly dividend of 37^ cents per share on the company's common stock, payable June 29 to stockholders of record June 18. New Studio for Cairo Salomon Salama of Cairo, Egypt, soon will begin construction on a new studio in that city. Planned are three stages. 26 MOTION PICTURE HERALD, JUNE 15, 1946