Radio annual and television yearbook (1938)

RADIO CORPORATION OF AMERICA Radio Corporation of America, a holding company, RCA Building, 30 Rockefeller Plaza, New York, was incorporated Oct. 17, 1919, in Delaware. Units in the RCA family include RCA Manufacturing Co., National Broadcasting Co. (which contributes most of parent company's earnings), RCA Communications, Radiomarine Corp. of America and RCA Institutes. James G. Harbord is chairman; David Sarnoff, president. Parent company was organized by General Electric Co. Acquired stations of Marconi Wireless Tel. Co. of America. Owns numerous patents upon which royalties are collected from manufacturers. In October, 1928, company received 500,000 shares of Class "B" stock of Radio-Keith-Orpheum Corp. in return for use of Photophone and for contract under which National Broadcasting Co., affiliated with Radio Corp., will broadcast R-K-O programs. Owns Radio-Victor Corp., of America. Affiliated with General Motors and Westinghouse Electric in a new radio manufacturing company formed in September, 1929. In January, 1932, increased its controlling interest in RKO to about 70 per cent. In October, 1935, sold part of its controlling interest in RKO, and gave option on balance, to Atlas Corp. and Lehman Bros. Also sold out its interest in Electrical and Musical Industries. London, to a British group. Sells motion picture sound equipment to film producers and theaters. Dividends: First common dividend, 20 cents a share, paid Dec. 21, 1937. Also paid up the arrears on Class "B" preferred, which is being retired; $3.50 annually on 1st pfd. PRICE RANGE OF STOCK Common Earned Year High Low Per Sh. Dividend 1937 1234 4?4 $.41^ $.20 1936 144 934 .21 1935 133/6 4 .01D 1934 9% 4/2 .10 1933 124 3 .47D 1932 Uy2 2y2 .49D 1931 27i/2 5% .34D 1930 69>8 1134 .02 1929 11434 26 1.59 Old Common 192'9 549 333 1928 420 854 15.98 1st Preferred 1937 80 44 3 50** $3.50 ** Dividend rate. CONSOLIDATED STATEMENT OF INCOME AND EARNED SURPLUS For Year Ended Dec. 31, 1936 Gross income $101,186,309.90 Less — Cost of sales, general operating, development, selling and administrative expenses 89,722,150.68 Net Income for the Year (before Interest, Depreciation, Amortization of Patents, Goodwill and Federal Income Taxes) $11,464,159.22 Deduct — Interest, depreciation, amortization of patents, amortization of goodwill, and provision for Federal income taxes 5,308,222.50 Net Profit for the, Year, Transferred to Earned Surplus $6,155,936.72 Earned surplus at December 31, 1935 12,401,099.46 $18,557,036.18 Deduct— Preferred dividends 3,222,387.26 Earned Surplus at December 31, 1936 $15,334,64S.92 INCOME FOR 1937 Though annual report of RCA will not be available until the stockholders' meeting April 5, the followingstatement was issued Feb. 9 by David Sarnoff: Estimated for Actual for Percentage 1937 1936 Increase Gross Income: (From all sources) $112,650,000 $101,186,300 11 Net Income: (Before the following deductions) $15,400,000 $11,464,100 34 Deductions: Provision for Federal income taxes $2,100,000 $1,137,100 85 Interest, depreciation, amortization of patents and goodwill $4,300,000 $4,171,100 3 Total deductions '. . . . $6,400,000 $5,308,200 21 Net Profit $9,000,000 $6,155,900 46 CONSOLIDATED BALANCE SHEET, JAN. 7, 1937 Assets Current Assets: Cash in banks and on hand 014.657,406.67 U. S. Government and other marketable securities, at cost (December 31, 1936 market value in excess of cost) 90,720.66 Notes and accounts receivable (less reserves of $1,886,942.37) 12,434,670.15 Inventories (at the lower of cost or market) 11,526,974.53 Total Current Assets $38,709,772.01 774