Weekly television digest (Jan-Dec 1963)

NEW SERIES VOL. 3, No. 13 TELEVISION DIGEST— H Distributor Notos: Admiral appoints Jack Scott regional sales mgr. covering Butfalo, Cleveland, Toledo, Wheeling, Youngstown • Carson Pirie Scott names Don Valerio TV-radio-stereo buyer, succeeding James Catlin • Motorola awards “weekend in Phoenix” to some 100 distributor salesmen & their wives May 2-5 for outstanding sales of TVs & car radios in special “P. V. Galvin Month” program • Emerson Radio of Maryland appointed Telectro tape recorder distributor in Maryland, succeeding Geo. Rosen & Co. • Motorola-Chicago, disti'ibutor in Chicago & 13 Illinois counties, commences Fair Trade pricing of Motorola consumer products April 1 “to put a fair profit back into this business in return for the dealer’s time, effort & investment,” Vp-Gen. Mgr. Earl G. Erickson announced. Jan. factory sales of TV picture tubes rose to 890,246 units from 802,061 in 1961’s opening month, EIA reported. Dollar value increased to $16,846,046 from $15,625,304. Sales of receiving tubes, however, declined both in units & dollars. Unit sales slipped to 27,025,000 from Jan.1961’s 29,591,000. Dollar value sloughed off to $22,524,000 from $24,787,000. EIA engineering dept, offices in Washington, N.Y. & Newark will be consolidated as soon as space can be provided in Washington, according to decision by EIA board. Board will consider housing recommendations — including proposal to construct EIA hq building — at June convention in Chicago. Magnavox will show tape recorder line next July. Company currently produces recorders in England under Collaro trade name, but has never marketed recorder in U.S. Another imported transistor TV is due from Mitsubishi via Westrex in June. To be sold under Westar label, it has 6-in. screen, weighs 7 lbs., will list at $199.95. ' Storer Bcstg. will ask stockholder approval, at April 9 annual meeting, to purchase from Chmn. George B. Storer 439,700 shares of its Class B stock for $12,531,450 . cash, or $28.50 a share. Shares would be held as treasury ! stock, reducing company’s outstanding common & Class B shares to 2,001,200 from 2,440,900. If sale is approved I Chmn. Storer would continue to own 418,590 shares of Class B — or 20.9% of total outstanding shares — and retain right to vote additional 208,250 shares held in tnist. To finance stock buy & to retire existing $5 million bank loan, Storer Bcstg. has arranged for $15 million, 8-year bank loan at average interest rate of 5%, according to Finance vp R. M. Akin. He described Mr. Storer’s offer as “a very good buy” for company. Stock closed at 35% March 27. Metromedia anticipates increased sales & profits this year, Chmn.-Pres. John W. Kluge reported to stockholders in annual report. Company had big sales jump & record profits in 1962 (Vol. 3:9 pl2). Earnings have jumped 1,100% since 1957, sales nearly 1,000% since 1956. Rollins Bcstg. expects earnings in its 1963 fiscal year, ending April 30, to jump approximately 24% from yearearlier’s $437,396. Pres. 0. Wayne Rollins said revenues should climb about 27% from fiscal-1962’s $6.4 million. Admiral, w'hich suffered profit drop despite 8% sales gain last year (Vol. 3:12 pll), closed 1962 with total current assets of $82,352,435 — ^up from $74,434,299 in 1961. Total current liabilities were reduced to $32,698,680 from $36,327,701. Assets included $12,213,836 cash & $35,442,129 notes & accounts receivable, vs. $8,853,964 & $37,181,722 at 1961’s end. Net worth increased to $64,622,967 from $63,948,377. Net working capital (current assets minus current liabilities) increased to $49,653,755 from $38,106,598. All 1961 figures have been restated to exclude accounts of Admiral Italiana. Admiral explained in annual report: “Operations of Admiral Italiana again were unprofitable” in 1962 & the company late in Jan. 1963 “decided to tenninate the operations” of the Italian subsidiary “but to continue in the Italian market through the medium of licensed operations. Negotiations already have been undertaken.” Sprague Electric posted record 1962 sales & operating profits (see financial table) and “business during the first quarter of 1963 has been continuing at substantially the same rate” as in 1962’s last quarter, reported Chmn. Robert C. Sprague. Sales last year rose more than 12% to $87 million from $77.3 million. Net earnings slipped slightly under 1961’s $6.1 million after deducting nonrecurring loss of $363,758. Loss resulted from U. S. Tax Court decision involving 1941-46 income taxes. Transitron Electronic anticipates further losses in its 3rd fiscal quarter ended March 31 but is “shooting for the break-even point toward the end of the 4th quarter,” ending June 30, Pres. David Bakalar said. Transitron was in the red $297,101 at close of 2nd fiscal quarter (Vol. 3:8 pl2). In 1962 fiscal, Transitron lost $763,755. Company’s profitability depends largely on volume, he said, and he estimated $6.5 million a quarter as break-even point in sales. Medallion Pictures expects earnings in 1963 fiscal year ending April 30 to double year-earlier’s 47«f a share, even with 13% increase in stock outstanding to 370,000 shares. Pres. Benjamin Schrift said board will consider stock distribution in opening quarter of 1964 fiscal year. Medallion, he said, has “achieved a substantial [competitive] advantage in having assembled one of the first color TV packages — 26 films all produced in the 1960s & immediately available for TV stations in the U.S. & Canada.” Gulton Industries sales in 1963 fiscal year ended Feb. 2 rose some 23% to $30 million from $24.4 million a year earlier. Earnings gained to more than $1.20 a share from fiscal-1962’s 92(1. Chmn.-Pres. Leslie K. Gulton said sales were divided “about 50-50” between govt. & commercial customers, emphasized that company plans “most significant expansion” in field of rechargeable batteries. Telex Inc. will become Telex Corp., headquarters in Delaware. Stockholders of Tulsa-based manufacturer of phonos, tape recorders & electronics components approved proposal to transfer corporate hq to Delaware by voting sale of all corporate assets, effective March 31, to new Telex Corp. incorporated in that state. Telex Corp. will is.sue one share of common for each outstanding Telex Inc. share. INTEC-Westbury CATV equipment line has been bought for undisclosed price by Electronics, Missiles & Communications Inc., Mt. Vernon, N.Y. (Dr. B. W. St. Clair, pres.) INTEC is subsidiary of big French -Compagnie Generale de Telegraphic Sans Fils (TSF).