What's New? (Sep 1966)

Interim Report: of 1965: Here is a summary of the President’s The results of our operations for the second quarter and the first six months of 1966 as compared with the same period FAMOUS PLAYERS BUYS ANOTHER 73,259 SHARES OF CLASS “A” and “B” COMMON IN MONTREAL’S UNITED AMUSEMENT CORPORATION LIMITED F.P. Quarterly Dividend was 2712 Cents. Mr. Bolstad reports an increase in total income of 14% and increase in operating pro fits of 40% during second quarter of 1966 together with corresponding increases in net earnings. Second Quarter First Six Months 1966 1965 1966 1965 Theatre Admissions (excluding Amusement Taxes), Confection and Equipment Sales and other I ee ne $ 7,661,427 $ 6,728,810 $15,341,268 $13,767,973 Theatre Operating Expenses, Cost of Goods Sold and Administration 6,549,889 5,957,265 13,021,190 11,909,421 Operating Profit before the under TAOROG UTNE ie eta, $ 1,111,588 $ 771,545 $ 2,320,078 $ 1,858,552 Dividends Received .... . ................... 233,689 197,652 434,937 358,397 Interest and Profit on Sale of as: _ | MNIe l AU e caen 126,426 102,625 223,682 233,516 $ 1,471,653 $ 1,071,822 $ 2,978,697 ¢$ 2,450,465 Depreciation ....... Ab RG GREE 310,198 279,257 580,334 519,026 Share of Profits to Minority pi = Eb Vili 0 SS NR COA HEL 34,396 54,424 68,458 118,226 $ 344,594 $ 333,681 $ 648,792 $ 637,252 NET PROFIT (Unaudited) ........... $ 665,289 $ 471,113 $ 1,356,950 $ 1,086,965 Earnings Per Share ............................ 38 2 -78 63 It is gratifying to be able to report an increase in total income of 14% and an increase in Operating Profit of 40% during the second quarter of 1966, together with a corresponding increase in Net Earnings. Net Earnings per share for the first six months of this year are 78 cents as compared to 63 cents in the same period in 1965. Our operating results for the first seven weeks of the third quarter also show an increase over the same period a year ago. During the second quarter we purchased from the Management Group of United Amusement Corporation Limited and others, a further 73,259 Class “A” and Class “R” common shares of that Company, so that commencing with the third quarter of this year, the operating results and other finan cial reports of United Amusement will be included in the consolidated accounts of your Company. United Amusement, which was _ incorporated in 1924, has a very successful operation in the Province of Quebec, with an interest in 32 theatres strategically located principally in Montreal and Quebec City. The Management Group of that Company will continue its present competent operations. The new Le Canadien Theatre in the Laurier Shopping Centre in St. Foy, Quebec, was opened on July 9th. This is the third new theatre that we have opened in Quebec City during the past year. Our new dual auditorium theatre in the Pen Centre Shopping Centre in St. Catharines opened on August 25th, and the dual theatre in the Fairview Shopping Centre in Pointe Claire, Montreal, will be opened in September. We have recently completed arrangements for the construction of a new theatre in the K-Mart Plaza in Lancaster, a suburb of Saint John, N.B., which is a very successful Shopping Centre. This theatre will provide us with our second outlet in that city. Our various other operations, outside of theatres, continue to make satisfactory progress. Plans have been completed for the addition to the Airliner Motor Hotel in Winnipeg, and it is hoped to have this completed in time for the Pan-American Games which will take place in Winnipeg in the summer of 1967. We are pleased to report that Skyline Cable Vision Limited, in which your Company has a minor indirect interest, has been granted a franchise by the City of Ottawa to construct and operate a community antenna system in that part of Ottawa which lies to the East of Bank Street. The residents of Ottawa now receive television service only from those TV stations located in the area. Skyline will make additional television service available by providing the available U.S. programs, as well as the programs from the English and French language stations which now service the city of Montreal. SOUND OF MUSIC continues to be the box office champion of all times. It is now in its seventy-seventh week in our theatres in Montreal, Toronto and Vancouver, and will undoubtedly be the first motion picture to have had a run of more than two years in each of these cities.