Motion Picture Herald (Mar-Apr 1947)

Republic Net Is $1,097,940 for 48 Week Period The consolidated net earnings of Republic Pictures Corporation and subsidiary companies were $1,097,940, after Federal income tax provision of $735,000, for the 48week period from November 27, 1945, to October 26, 1946, it was announced last week by Herbert J. Yates, president. The statement was made in lieu of a 52week report because the merger with Consolidated Film Industries became effective on November 26, 1945. Mr. Yates, in a letter to stockholders accompanying the statement, said the company plans a substantial increase in the number of Trucolor pictures in 1947. Republic's earnings for the 48 weeks were equivalent to 38 cents per share on 1,817,860 shares of common stock outstanding, after applying $400,000 on account of the annual dividend required on the outstanding preferred stock. The condensed consolidated profit , and loss statement follows : Net sales and net income from film rentals and royalties $24,315,593.3; Deduct: Share to other producers and participants $812,301.53 Amortization of film costs... 8,320,452.04 Cost of laboratory, molded products and accessory sales 7,595,447.46 Depreciation other than $143,674.52 added to production costs and written off as amortization of film costs.. 164.888.73 Selling, administrative and general expenses, including advertising of $1,046,840.39.. 5,243,847.27 Taxes other than Federal taxes on income and taxes of $302,124.74 added to production costs and written off as amortization of film costs 282,912.30 Total cost of sales and operating expenses 22,419,849.33 Operating profit 1,895,744.0-1 Other income, including interest, rents, discounts, recoveries, etc., and profit on sale of equipment of $23,206.06 218,854.66 2,114,598.70 Deductions from income: Interest on 4% Cumulative Income Debentures (1965).. 190,279.50 Interest on bank loans, etc... 91,378.79 281,658.29 Net income for the period from November 27, 1945, to October 26, 1946 (48 weeks) 1,832,940.41 Less provision for estimated Federal taxes on income 735,000.00 Consolidated earnings after taxes from November 27, 1945 , to October 26, 1946, trans f erred to surplus 1,097,940.41 Deduct cash dividends declared and paid on 400,000 shares $1.00 cumulative convertible preferred stock, issued and outstanding 400,000. 00 Consolidated earned surplus as at October 26, 1946 $697,940.41 "The past year witnessed several important developments in the motion picture industry which adversely affected your company as well as all major motion picture producing and distributing companies," Mr. Yates said. He pointed out the jurisdictional studio strike is "causing increases in production costs." INDUSTRY ASSOCIATES TO HONOR ED FAY Edward M. Fay (above), who has been in show business more than 40 years, and in the motion picture industry since 1916, when he began operating the Fay theatre, Providence, R. I., will be honored by his friends and associates of the industry on May 5th at the Sheraton-Biltmore Hotel, Providence. The dinner will be officially tendered by the Independent Exhibitors of Rhode Island. MPEA Bulgarian Deal Expected Early expansion of the operations of the Motion Picture Export Association into Bulgaria through a deal with the Bulgarian film monopoly was forecast this week by Irving Maas, vice-president and general manager of MPEA. He also reported that all prints belonging to MPEA member companies, requisitioned by the Bulgarian Government several months ago, had been withdrawn from circulation and now are under seal with the American mission in Sofia. Details of the distribution agreement are being worked out by Jean Birkhahn, MPEA representative in Bulgaria, and Bulgarian Government officials. Louis Kanturek, MPEA supervisor for Eastern Europe, is expected to join him in Sofia at an early date to assist in the negotiations. Also this week Mr. Maas announced the appointment of Charles H. Core, veteran of distribution in the Far East, as MPEA manager for the Netherlands East Indies. Mr. Core was Philippine manager for United Artists from 1934 to the outbreak of the Pacific war. MPEA takes over in the Indies under a deal last August and will beign operation May 1. Frank J. Alford, assistant to George Borthwick, treasurer of the Motion Picture Association, has been named chief accountant and assistant treasurer of MPEA. He succeeds William Laffan, resigned. Released thru MOTION PICTURE HERALD, MARCH I, 1947 45