The talking machine world (Jan-June 1928)

The Talking Machine World, New York, March, 1928 43 Victor T. M. Co/s 1927 Sales Total $46,886,842 Annual Report of President E. E. Shumaker Shows Profit of $7,269,523.03 — Current Assets of Company Are $29,740,664.63 — Initial Dividend on Common Stock The substantial growth of the business of the Victor Talking Machine Co. during the year 1927, the first year of operation under the new capitalization of the company, as indicated by the annual report just made public, is a tribute to the efficiency of the officials and executives of the company, as well as to the excellence of the line of Orthophonic instruments and records. E. E. Shumaker, president, pointed out that net sales were considerably in excess of those in the year preceding, and that the 1928 outlook is favorable, with the Victor Co.'s facilities amply prepared to make the most of the opportunity for maximum business in both the Victor Orthophonic line of instruments and records. The official statement shows net income of the company for the fiscal year ended December 31, 1927, was $7,269,523.03. The net profit of $7,269,523.03, is equal, after deducting annual dividend requirements of the prior preference and convertible preferred stocks, to $8.93 per share of common stock; and after deducting also the annual prior preference stock sinking fund appropriation, to $7.83 per share of common stock. In transmitting the report of the board of directors, E. E. Shumaker, president of the Victor Co., calls attention to the fact that net sales of $46,886,842.11 for the year exceeded those of 1926 by $224,738.38. He also states that direct export business of the company showed substantial growth during the year, and represented approximately 15 per cent of the total sales for 1927. Included in the item of "other income" (income not derived from net sales of Helycon Motors Precision Built The use of the Helycon Motor has proven profitable to makers of phonographs because of: — ease of installation — its few parts — the interchangeability of parts — absence of trouble when installed. No dimension of any Helycon Motor has ever been changed. Helycon Motors are precision built to furnish smooth, silent, dependable power. the company) are dividends of $538,310.75 from shares owned by the Victor Co. in the Gramophone Co., Ltd., of England, and $40,008 received on shares owned in the Victor Talking Machine Co. of Canada, Ltd. The financial position of the company, as set forth on the consolidated balance sheet, shows Edward E. Shumaker current assets of $29,740,664.63, against current liabilities of only $4,860,378.83. The president also points out that the investment in foreign affiliated companies of $7,714,205.98 is an increase of $3,969,205.49 over December 31, 1926. This increased investment is represented by payments on stock owned in the Gramophone Co., Ltd., and the acquisition of additional shares in the Victor Talking Machine Co. of Canada, Ltd. It includes also an investment of $317,299.04 in the Victor Talking Machine Co. of Japan, Ltd., which was organized late in 1927. The company also adjusted through surplus its investment in the Gramaphone Co. and the Canadian Co. on a basis of their 1927 book values, this adjustment amounting to an increase of $845,283.57. Against this is an appropriation for trade adjustments and contingencies, aggregating $556,779.28. The consolidated statement of surplus shows a balance, as of December 31, 1927, of $6,142,141.70. A cash investment of $1,200,000 was made in three domestic wholesale distributing companies during the year. During 1927 the scientific research and development department of the company also was substantially strengthened. "It is the settled policy of your management to make liberal appropriations for scientific research and development work," said Mr. Shumaker in transmitting the report. "During the year this department has been further strengthened and much important work has been undertaken. The outlook for 1928 is favorable, and your company is entering the new year with large manufacturing schedules, adequate facilities and a competent organization." The board of directors of the Victor Talking Machine Co. on February 24 declared the following quarterly dividends to stockholders of record at the close of business on April 2, 1928: $1.75 per share on preferred stock (sixty-nine shares old stock outstanding), payable April 15, 1928; $1.75 per share on 7 per cent cumulative prior preference stock, payable May 1, 1928; $1.50 per share on $6 cumulative convertible preferred stock, payable May 1, 1928; $1 petshare on the common stock, payable May 1. 1928. This is an initial dividend on the common stock, placing it on a dividend basis of $4 per vear. Power ! Helycon Motor No. 102 provides ample power for the new electrically recorded records. Smooth, silent, dependable power. Power ! Power to play from four to four and a half 10-inch records with unvarying speed with one winding. No. 102 Illustrated catalogue of Helycon Motors, Tone Arms and Reproducers sent on request POLLOCKWELKER, Limited Kitchener, Ontario, Canada Established 1907 Cable Address: Polwel, Kitchener. Code: A.B.C., 5th Edition, Bentley's