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Loew's Theatres, Inc. Annual Report 680000

Date: 15 Nov 1968
Length: 18 pages
89301294A-89301311
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Fields

Author
Tisch, L.A.
Type
CONT, CONTRACT/AGREEMENT
BUDG, BUDGET/BUDGET REVIEW
CHAR, CHART/GRAPH/MAPS
LETT, LETTER
PHOT, PHOTOGRAPH
Area
LORILLARD ACCOUNTING/BASEMENT GMP
Alias
89301294-A/89301311
Site
G140
Date Loaded
05 Jun 1998
Document File
89301294/89301511/700000 - 710000 - 720000 - 730000 - 740000
Recipient (Organization)
Loews Theatres Board of Directors
Author (Organization)
Loews Theatres
Lybrand Ross Bros
Litigation
Stmn/Produced
Request
R3-001
UCSF Legacy ID
brk70e00

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Loew's Theatres, Inc. Annual! Report 1968: ~ mericana :;q .~ ..,. . .. ., . .~ . ~~. , . .~ ~ ~ . . , . , . . . Y ~ I !9 ® ® ® 0 ® 0 0 m ® 0 q 0 0 ®
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lfo1 OUR SHl\REHOLDERS & EMPLOYEES: The fiscal year ended August 31, 1968 was successful and sigraificantt in the history of Loew's. Records were set in revenues, netl income and earnings per shaire: Gross revenues this year reached. $1i66,726,000; 22°/a above fiscal 1967: Ilncome; excluding the profits result- ing,from sales of shares of'stock of Commerciall Credit Company and' Control Data Corporation, climbed'to $20;023,000,, a 27°% increase over the previous year. Earnings per share afrergiving,effectr to the January, 1968'2'/z for 1T stock split, excluding the profits from the sales of' Commercial Credit and. Controll Data shares, were equal to $4.20! per share: Net gainion the sale of' Commercial Credit Company andl Control Data Corporation shares of'stock equal led $15;1164,922 or $3.18 pen share: Revenues and earnings rose signifi- cantly through growth in our tradi- tional business areas in fiscall1968. Our existing hotel and theatre facilities achieved' excellent and increased: results during the year: Other factors contributing to this growth were the results of' the operation for the full' year of the Mark Hopkins HoteJ after, extensive refurnishing and refurbishing, and the acquisiCion and operation since November 1, 1967 of the circuit of twenty-nine theatres on the West. Coast. P'aradise I'sJand Hotel and. Villas, Nassau, Bahamas, which openedl on December 1, 1967, will complete its first' full year of opera- tion during the current fiscal period. While continuing to grow and' ex- pand: internally,,we have previously statedl our desire to diversify through external expansion. The year just ended marked our first substantiall effort at suchiexpansion through the proposed'acqui'sition. of Commer- cial Credit Company: Prior to our exchange offer to Commerciai' Credit stockholders, we acquired 1,000,700 shares of Commercial' Credit stock. Uponi analysis of the competing offer made by Control Datai Corporation to Commercial Credit stockholders, we decided noti to engage in a contest for the com- pany and, instead':, to realize the profits on our shares of stock of Commerciall Crediti. Through August 31, 1968, our sales of Commercial Credit and Control Data shares re- sulted in a profitof'$15;164',922after taxes and expenses; on August 31, 1968; we still held approximately 130,000 shares of Control Data stock. Since the end of' the fiscal year, we have, sold all but approxi- mately 5,300iof such, shares, so that our total profit to date approximates $28,500,000 before taxes and ex- penses. All the shares sold vvere held for more thani six months and, the The Chairman's Letter profits so realized in fiscal 1968 ared noted'as an extraordinary item in the. accompanying financial statements. At this writing, we are in the.process of carrying, out the Agreement of Merger which contemplates a com- bination with the Lorillard! Corpora-tion; which, transaction is subject to the approval of shareholders of both companies at meetings scheduled for November 26,,1968. We believee that the combination of Loew's and' Lori'llard will permit your Company to engage actively in the business of' serving,consumer needs and thus too participate in the demands of ai rapidly increasing, more affluentt population. We are gratified by the results ofi the fiscal' year just ended andl believe that this currenCyear will be anather one of progress f'or your Company. Our previously announced: program to obtain a fund ofl $200,000,000 other thani from bank borrowings for a major acquisition is proceed- ing well. Pendingappliication of the fund tosuchan, acquisitioni and: . to other corporate purposes, we con- tinue to employ these funds in marketable securities, a program which has contributed to the earn- ings of'your Company. I' again express my gratitude for the effort and loyalty ofl all of our em- ployees and the continuing confi- dence of our shareholders. Sincerely, jN H LaurenceAllan Tisch Chairman of the Board November 15, 1988 89301296 1.
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A report on Loew's Hotels Whether the scene is a convention ini Ni'w York, a night club in, Bal Harbour, the beach at Atlantic Cityy or a room with a view at Paradise Island, a Loew's hotel is there - and in Chicago, San, Juan and San. Francisco as well. Loew's current hotel operations include fourteen properties in seven: cit'ies.. Iln London, a 500'-roomi hotell is under construction: (Opening: 1970), and new areas for growth, both foreign and domestic, are under continual stud~. ' 893a'1297 3
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893~01298
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Loew's program of hotel opera- tions expansion is geared to the significant changes taking, place in the U!S: economy ... changes that! have revolutionized ways of doing business, no less than they have revofutionizedi the life style of'the individuall consumer. With increased numbers of' businesses operating on a truly nationwide scale, trade shows, conventions, national sales meet- ings andl incentive trips have be- come a regular part of the business picture. With more leisure time andlmore disposable income, many non-business travelers are exercis- ing their tastes for travel, lodging, recreation, fine food and drink, and quality entertainment.. In, the competition to reach both markets, our hotels are strategically placed at the crossroads ofi comr merce and recreation. To facilitate communication and the speedy transfer of information among all' elements in the Loew's chainy a compLrter-based booking and billing,systemi was introduced into the Sales Department early in 1968. Our electronic reservation, service for all Loew's hotels oper- ates through a network of'76 offices in the Unitedl States, Canada and overseas.. At the Traymore in Atlantic City, a hotel which is managed by the Company, a two-story, 60,000 sq. fr~ conventioni center was opened in 1968. The new center is the lar- gest hotel convention hall on the Atlantic coast andl is, already ex- periencing great demand to display products and to gather thousands of safes personnel or association members under one roof. However, architecture.and data processing are only parts ofI the entire aspect. Essentially; the hotell business is a people business: people providing services for people. From the sommelier serv- ing,the wine, to the garage'attend', ant deiivering, the guest's car,, the element of personal service - of interaction between staff andlguest - is paramount. From the beginning, Loew's Hotels have sought to foster the highest ideals and traditions of service at all staff levels. To this end, a, training program for unskilled em- ployees has recently bee insti- tuted. The program is designed to upgradie the employee, thereby improviing, service, while heiping the employee increase his earn- ings. Preliminary results are highiy encouraging;. Additionally, Loew's personnel teams regularly recruit youing people from graduating classes at universities and hotel tiradess schools. In New York, where our properties range from motor hotels to luxury hotels, the career aspiranti has many opportunities to learn and to grow. Basic to our develop- mentl is such growth and our commitment to the fundamental element: people. 893'a1299 5
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NEW YORK CITY THE REGENCY THE DRAKE THE WARWICK AMERICANA THE SUMMIT CITYS'QUIRE'MOTOR INN LOEW`SJNIDTOWNIMOTOR INN HOWARD'JOHNSON'S' MOTOR' LODGE. CHICAGO HOTELS AMBASSADOR SAN FRANCISCO HOTEL MARK HOPKINS + NEMVJERSEY ATLANTIC CITY THE TRAYMORE .1 FLORIDA MIAMI BEACH AMERICANA OF BAL HARBOUR PUERTO! RICO AMERICANA OF SAN JUAN NASSAU IN'THE BAHAMAS PARADISE ISLAND HOTE!,L & VILLAS ENGLAND LONDON ~ (UNDER CONSTRUCTION) ~' 0 . 6
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A report on Loew's Theatres During, the fiscal year, Loew's Theatres became a coast-to-coast operation, with a totallof108 prop- erties in the United States an~d. Canada, representling a grovwtha rate of180°/o over a two-year period. As in the hotel field, the changing, life style of the American con- sumer has st!imuliited significant changes in the size, design, andl location,of motion pictu re theatres, along with the changes in interior decor and other amenities. The architeets' renderings.(Ilef't)' capture some of'the flavor of'con- temporary diversity as shown in three of' your Company's new theatre projects. In dotiwntown Dallas, the first all- new theatre to be erected ininearly 40yearsvuill beaiLoew's operation. This 1,000-seati showplace will be the focal point of the huge new Elm Place Complex of'' quality shops, offices and services. Plenti- ful ind'oor parkingwill be.provid'ed. Loew's Tara,, which opened in, June in an affluent area of Atlant'a, seats 1,200. The name memorial- izes the fictional home of the O'Haras, made famous by "Gone WithiThe Wind."' In Tampa, gracefull pai'rns and tropicall shrubs enhance the mod- ern, lines of Loew's 1,200-seatt luxury motion picture theatre, scheduled to open on December 20th of this year. 89,301301 i 7
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Perhaps the most interesting devel, opment in~ current theatre design is exemplified by the project now under way at Loew's State, your Company's flagship theatre on B road'way.. The Uris Corporation, which has entered into a long-term groundi Ilease with Loew's,, is erecting a 48- story office building, on the site of the famed Loew's Capitoll atl 51st Street' and Broadway in New York City.To replace the Capitol, Loew's State, six blocks south on Broad- way, is being converted into two theatres: Loew's State 1 and Loew's State 2. As illustrated in the volumetric projection (belbw, rigHt), this is being achieved by extending, the balcony line of the original Loew's State, so that State 2' sits above State 1. A high-speed~ escalator wiIII whisk patrons from the ground- floor, up to State 2: Each theatre will have it6 distincti decor, designed'by a young, imag- inative, nationally known interior designer. State 1 (top left), is in contemporary style; State 2'(center left) recalls the romantic Victorian era. Adjoining, the escalator in the lobbywill be"The Capitol Corner,"' (upper right); a nostalgic recollec- tion of The Capitoll Among the featuresc an ancient,, Carrara mar- ble, Roman well-head; a, French rock-crystal chandelier; a bronze 8930130!2 8
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rail''ing, and the grandfather's clock, known to Broadway moviegoers for half a century. Huge oval portraits of' great movie stars of the past will serve to visu- ally connect the lobbies. Loew's State 1I will reopen on De- cember 111„ 1968, with, the Ameri- can premiere of the Columbia musical, "Oliver"; State 2' will open one week later with the United Artists musical, "Chitty Chitty Bang Bang," each under a reserved seaY policy. Loew's Orpheum, located at Third' Avenue and 86th Street in, New York City, was converted into two theartres during the fiscal year: Loew's Orpheum (downstairs) and Loew's Cine (upstairs), resulting ini two fine first-run theatres. So-called "pi'ggy back" theatre construction demonstrates how imaginative collaboration amongg exhibitors, architects, builders and decorators cani result in the crea- tion of two distinct properties outt of'one, to make more efficient and profitable use out of' cubic space in high land-cost areas.. uVeintendl to continue to expandd our theatre division through con- struction ofinew theatres, as welllas duplexing inappropriatesituations. Loew's is proud'to be in the vanr guard of' the trend~setting move- ment for future center-city and: suburban shopping center theatre design. 89'3013031 9
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Consolidated Balance Sheets August'31i,1968 and 1967 LOEW'S T1iEATR'ESy INC. and Subsidiary Companies ASSETS CURRENT A$SETS:~ Cash .................................... Time deposits ............................. Marketable securities at cost (market approxi- matiely $48;050,000 and $29,650,000', respec- Accounts receivable ....................... . Total current assets .................... FIXED! ASSiETS' (Note 2): Land .............................. Buildings ......................... Leaseholds ............................... Less;, Allowance: for depreciation and amortization ...................... OTHER ASSETS: Land, mortgages: and' other investment's, at cost Miscellaneous assets ...................... Theeccompa:nying: notes.arean integrel parf.oP.the financial statements. 1868' $ 8,128,585 27,888,475 39,148,782 17,655,767 ' 92;821',609' 45A22,003 137,337,995 32,866,350' ,12,718,994 228,345,342' 680137,962, 160,207,380 12;859,040, 6,686;7'43 f 9;545,783' : $272,574,772 ~. 1967 $ 9,071,557 1,593,000! 23,492;,760 10,255,671 44,41'2,988 41,175,47' 128,745j,138 311,2112„849 8;140',69'7' 209a274„1i57 62,785,444 146,488,713 12,343,372 6;480;593 18,823„965 $209,725,666 ,. . 10

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