Television digest with electronics reports (Jan-Dec 1959)

20 DECEMBER 21, 1959 Columbia Pictures Corp. foresees increased TV & records income and a 20% gain in movie revenues to produce profitable operations in the 1960 fiscal year ending June 25 — compared with the loss suffered in fiscal 1959. Exec, vp Abe Montague said Columbia’s Screen Gems subsidiary “continues to show a good profit” and has increased its production & distribution of TV programs in foreign countries. Earlier this year, Columbia entered the broadcast field by acquiring KTVT (Ch. 4) & KDYL Salt Lake City for $3.1 million from Time Inc. (Vol. 15:45 pl2; 50 p6), establishing Columbia Pictures Electronics Co. as its station-operating subsidiary. Montague anticipates that Columbia’s movie revenues will reach $100 million. He said a record dollar volume of movie production is scheduled for the current fiscal year. In fiscal 1959, Columbia reported a net profit of $151,230, but the profitable showing resulted from $2,596,615 in non-recurring income from the sale of a studio film lab. Wometco Enterprises (WTVJ Miami, WLOS-TV & WLOS Asheville, N.C., 46V2% of WFGA-TV Jacksonville, South Fla. theater & food vending chain) reports a 32% increase in earnings in an interim 44-week report. Gross & net income were also up for the latest 8-week period. For 44 weeks ended Nov. 1: Gross income Net income For 8 weeks to Nov. 1: Gross income Net income 1959 1958 $8,637,394 $7,562,011 641,159 486,451 $1,581,306 $1,338,651 130,853 43,640 Control of Technicolor Inc. is being sought by Eversharp Pres. Patrick J. Frawley Jr., who hopes to name 9 of the board’s 12 directors, through a proxy fight if necessary. Frawley said Eversharp and individual Eversharp management members hold a substantial interest in Technicolor and indicated his group hopes to get the firm into the film manufacturing field — to “make another Kodak out of the company.” Dr. Herbert T. Kalmus has resigned as Technicolor pres., effective Jan. 18 (Vol. 15:30 pl4). Teleprompter Corp., in a statement filed with SEC, reports a decline in sales & earnings in the 8 months to Aug. 31: Gross income .... Net profit Per common share Common shares . . 1959 1958 $2,458,480 $2,615,328 77,288 114,420 21^ 32<S 362,729 356,591 Famous Players Canadian Corp. net income dropped to $1,718,233 (99^ a share) in the 9 months ending Oct. 3 from $2,084,170 ($1.20) in the year-ago period. Reflected in both figures are profits on sales of fixed assets: $248,049 in the 1959 period; $116,273 in the 1958 period. Electronics Capital Corp., the publicly-held small business investment company headed by Charles E. Salik, will provide $400,000 of long-term capital for Cain & Co., the first nationwide electronics sales engineering corporation. Headed by Gerald A. Cain, ex-Neely Enterprises, Cain & Co. will have sales engineering offices in “all major military & industrial marketing areas.” Common Stock Dividends Corporation Period Amt. Payable Stk. of Record Amer. Cable & Radio . A $0.30 Jan. 26 Jan. 8 Clarostat Mfg Stk. 3% Jan. 20 Dec. 31 General Bronze . Q .371/2 Dec. 31 Dec. 21 Motorola Q .37 V2 Jan. 15 Dec. 31 Muter , Stk. 5% Jan. 15 Dec. 31 Storer Bcstg Q .45 Mar. 15 Feb. 26 Storer Bcstg. “B” Q .12 V2 Mar. 15 Feb. 26 SEC HALTS SKIATRON TRADING: A 10-day suspension of trading in the stock of pay-TV promoter Skiatron Electronics & TV Co. was ordered by the SEC Fri. (18) to prevent “fraudulent manipulative or deceptive acts & practices in connection with the stock.” The Commission also announced that it had issued a stop order against a stock registration by Skiatron, challenging its accuracy & adequacy. Information gathered by its staff tended to show Skiatron’s statements “false & misleading,” the Commission said in its announcement. “Evaluation of the worth of Skiatron shares is not possible on the basis of the published information.” The suspension affects trading in Skiatron shares on the American Stock Exchange and overthe-counter. The Commission’s announcement of its action took pains to point out that Skiatron has been promoting pay TV. “This order grew out of an investigation of a Skiatron Electronics & TV registration application filed to cover shares being sold to or by Matthew Fox,” we were told by SEC secy. Orval DuBois. Matthew (Matty) Fox, well-known Hollywood & TV film distribution figure is pres, of Skiatron TV Inc. (not publicly held), which holds U.S. promotion & marketing rights to pay-TV systems developed by Skiatron Electronics. The 12-year-old Skiatron Electronics firm, headed by Arthur Levey, has been an advocate of a punch-card payTV system for broadcast & closed-circuit use. Skiatron of America has been active in seeking franchises for wired pay TV in Los Angeles & San Francisco. The registration statement which started the SEC inquiry was filed last Sept., seeking registration of 142-,242 common shares issued under warrants or options as well as 30,000 shares owned by Pres. Levey to be offered for sale through brokers (Vol. 15:34 pl9). Of the 142,242 common shares, 125,000 were to go to Fox who bought 75,000 at $3 a share and held 1956 options for purchases of 50,000 more, according to the registration statement, which said that 250,000 shares were reserved under warrants issued in an April 1957 agreement with Skiatron TV Inc. Skiatron Electronics stock sold on the American Stock Exchange for 514, up% for the day, at 2:30 p.m. Dec. 18 before the stop order. National Co. expects 1959 sales to climb to a record $12,750,000 from 1958’s $7,433,813 and produce a profit topping $287,000 — more than double last year’s net of $109,063. Chmn. Herbert C. Guterman said that even on the basis of 720,000 common shares now outstanding, earnings will be greater than the 32^ a share in 1958 on 307,827 shares then outstanding. He said the Malden, Mass, concern expects “to very shortly make an acquisition which will be of great importance to the company” and that the current order backlog totals $10 million. Reports & comments available: Ampex, report. Stern, Frank, Meyer & Fox, Union Bank Building, Los Angeles 14 . . . General Precision Equipment, report, Eastman Dillon, Union Securities & Co., 15 Broad St., N.Y. 5 . . . Indiana General Corp., prospectus, Kuhn, Loeb & Co., 30 Wall St., N.Y. 5 . . . Victoreen Instrument Co., prospectus, Avco, comments. Van Alstyne, Noel & Co., 52 Wall St., N.Y. 5 . . . Magnavox and Allied Radio, comments. The Milwaukee Co., 207 E. Michigan St., Milwaukee 2 . . . Collins Radio, discussion, Francis I. DuPont & Co., One Wall St., N.Y. 5 . . . Bowser Inc., analysis, Shearson, Hammill & Co., 14 Wall St., N.Y. 5.