Regal Entertainment Group Reports Results for Fiscal Third Quarter 2012 and Declares Quarterly Dividend

  Regal Entertainment Group Reports Results for Fiscal Third Quarter 2012 and
  Declares Quarterly Dividend

Business Wire

KNOXVILLE, Tenn. -- October 25, 2012

Regal Entertainment Group (NYSE: RGC), a leading motion picture exhibitor
owning and operating the largest theatre circuit in the United States, today
announced fiscal third quarter 2012 results.

Total revenues for the third quarter ended September 27, 2012 were $692.9
million  compared to total revenues of $743.6 million  for the third quarter
ended September 29, 2011. Net income attributable to controlling interest in
the third quarter of 2012 was $24.0 million compared to $25.0 million in the
third quarter of 2011. Diluted earnings per share was $0.15 for the third
quarter of 2012 compared to $0.16 for the third quarter of 2011. Adjusted
diluted earnings per share^(1) was $0.17 for the third quarter of 2012
compared to $0.19 for the third quarter of 2011. Adjusted EBITDA^(3) was
$133.7 million for the third quarter of 2012 compared to $146.3 million for
the third quarter of 2011. Reconciliations of non-GAAP financial measures are
provided in the financial schedules accompanying this press release.

Regal’s Board of Directors also today declared a cash dividend of $0.21 per
Class A and Class B common share, payable on December 14, 2012, to
stockholders of record on December 5, 2012. The Company intends to pay a
regular quarterly dividend for the foreseeable future at the discretion of the
Board of Directors depending on available cash, anticipated cash needs,
overall financial condition, loan agreement restrictions, future prospects for
earnings and cash flows as well as other relevant factors.

“Our operating results continue to benefit from our focus on efficient
operations as we achieved an Adjusted EBITDA margin of over 19% for the third
consecutive quarter and our highest ever Adjusted EBITDA total for the first
nine months of the year,” stated Amy Miles, CEO of Regal Entertainment Group.
“Industry box office results for the first few weeks of the fourth quarter
have been very strong and we are optimistic regarding the box office prospects
for the upcoming holiday season.”

Forward-looking Statements:
This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements included herein,
other than statements of historical fact, may constitute forward-looking
statements. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to be correct. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the risk factors contained in the Company's 2011 Annual Report on
Form 10-K filed with the Securities and Exchange Commission on February 27,
2012. All forward-looking statements are expressly qualified in their entirety
by such factors.

Conference Call:
Regal Entertainment Group management will conduct a conference call to discuss
third quarter 2012 results on October 25, 2012 at 4:30 p.m. (Eastern Time).
Interested parties can listen to the call live on the Internet through the
investor relations section of the Company's Web site: www.REGmovies.com, or by
dialing 877-407-0778 (Domestic) and 201-689-8565 (International). Please dial
in to the call at least 5 - 10 minutes prior to the start of the call or go to
the Web site at least 15 minutes prior to the call to download and install any
necessary audio software. When prompted, ask for the Regal Entertainment Group
conference call. A replay of the call will be available beginning
approximately two hours following the call. Those interested in listening to
the replay of the conference call should dial 877-660-6853 (Domestic) or
201-612-7415 (International) and enter account #286 and conference call ID
#382612. In addition, this press release and other pertinent statistical and
financial information are available in the investor relations section of the
Company's Web site: www.REGmovies.com.

About Regal Entertainment Group:
Regal Entertainment Group (NYSE: RGC) operates the largest and most
geographically diverse theatre circuit in the United States, consisting of
6,621 screens in 524 locations in 37 states and the District of Columbia as of
September 27, 2012. The Company operates theatres in 43 of the top 50 U.S.
designated market areas. We believe that the size, reach and quality of the
Company's theatre circuit not only provide its patrons with a convenient and
enjoyable movie-going experience, but is also an exceptional platform to
realize economies of scale in theatre operations.

Additional information is available on the Company's Web site at
www.REGmovies.com.

                                                                             
Regal Entertainment Group
Consolidated Statements of Income Information
For the Fiscal Quarters and Three Quarters Ended 9/27/12 and 9/29/11
(in millions, except per share data)
(unaudited)              
                                                                             
                           Quarter Ended           Three Quarters Ended
                           Sept. 27,   Sept. 29,   Sept. 27,     Sept. 29,
                           2012        2011        2012          2011
Revenues
Admissions                 $  471.0    $  514.9    $  1,439.8    $  1,428.6
Concessions                187.3       197.2       559.9         548.7
Other operating revenues   34.6        31.5        101.4         90.5
Total revenues             692.9       743.6       2,101.1       2,067.8
                                                                             
Operating expenses
Film rental and            247.6       273.5       749.7         742.8
advertising costs
Cost of concessions        25.5        26.9        75.2          74.7
Rent expense               95.9        95.5        285.3         286.0
Other operating expenses   185.2       195.7       546.0         561.0
General and
administrative expenses
(including
share-based
compensation of $2.4 and
$2.2 for
the quarters ended
September 27, 2012 and     16.1        16.9        48.7          49.7
September 29, 2011,
respectively, and $7.0
and
$6.3 for the three
quarters ended September
27,
2012 and September 29,
2011, respectively)
Depreciation and           45.0        48.0        137.6         149.8
amortization
Net loss on disposal and
impairment of operating    3.9         6.0         6.4           16.1
assets and other
Income from operations     73.7        81.1        252.2         187.7
                                                                             
Interest expense, net      32.3        37.2        102.8         113.8
Earnings recognized from   (8.7      ) (9.0      ) (23.1       ) (26.2       )
NCM
Loss on extinguishment     ―           ―           ―             21.9
of debt
Other, net                 10.5        13.3        (0.8        ) 17.5
Income before income       39.6        39.6        173.3         60.7
taxes
Provision for income       15.7        14.6        65.9          24.6
taxes
Net income                 23.9        25.0        107.4         36.1
Noncontrolling interest,   0.1         ―           0.1           0.1
net of tax
Net income attributable    $  24.0     $  25.0     $  107.5      $  36.2
to controlling interest
                                                                             
Diluted earnings per       $  0.15     $  0.16     $  0.69       $  0.23
share
Adjusted diluted           $  0.17     $  0.19     $  0.72       $  0.39
earnings per share^(1)
Weighted average number
of diluted shares          155.1          154.5    154.9            154.5
outstanding^(2)
                                                                             

Consolidated Summary Balance Sheet                          
Information
(dollars in millions)
(unaudited)
                                                                             
                                            As of              As of
                                            Sept. 27, 2012     Dec. 29, 2011
                                                                             
Cash and cash equivalents                   $     251.4        $    253.0
Total assets                                2,198.1            2,341.3
Total debt                                  2,000.0            2,016.3
Total stockholders’ deficit of Regal        (550.7         )   (570.9        )
Entertainment Group
                                                                             

Operating Data
(unaudited)                                       
                                                                             
                         Quarter Ended               Three Quarters Ended
                         Sept. 27,    Sept. 29,     Sept. 27,    Sept. 29,
                         2012          2011          2012          2011
                                                                             
Theatres at period end   524           528           524           528
Screens at period end    6,621         6,605         6,621         6,605
Average screens per      12.6          12.5          12.6          12.5
theatre
Attendance (in           53,585        58,656        161,603       164,264
thousands)
Average ticket price     $  8.79       $  8.78       $  8.91       $  8.70
Average concessions      $  3.50       $  3.36       $  3.46       $  3.34
per patron
                                                                             
Reconciliation of EBITDA to Net Cash Provided by (Used in) Operating
Activities
(dollars in millions)
(unaudited)
                                                                             
                         Quarter Ended               Three Quarters Ended
                         Sept. 27,     Sept. 29,     Sept. 27,     Sept. 29,
                         2012          2011          2012          2011
                                                                             
EBITDA                   $  117.0      $  124.8      $  413.8      $  324.4
Interest expense, net    (32.3     )   (37.2     )   (102.8    )   (113.8    )
Provision for income     (15.7     )   (14.6     )   (65.9     )   (24.6     )
taxes
Deferred income taxes    20.4          16.2          29.8          26.7
Changes in operating     (114.3    )   (76.6     )   (114.6    )   (64.1     )
assets and liabilities
Loss on extinguishment   ―             ―             ―             21.9
of debt
Other items, net         17.7          25.0          21.4          49.7
Net cash provided by
(used in) operating      $  (7.2)      $  37.6       $  181.7      $  220.2
activities
                                                                             
Reconciliation of EBITDA to Adjusted EBITDA
(dollars in millions)
(unaudited)
                                                                             
                         Quarter Ended               Three Quarters Ended
                         Sept. 27,     Sept. 29,     Sept. 27,     Sept. 29,
                         2012          2011          2012          2011
                                                                             
EBITDA                   $  117.0      $  124.8      $  413.8      $  324.4
Net loss on disposal
and impairment of        3.9           6.0           6.4           16.1
operating
assets and other
Share-based              2.4           2.2           7.0           6.3
compensation expense
Loss on extinguishment   ―             ―             ―             21.9
of debt
Noncontrolling
interest, net of tax     10.4          13.3          (0.9)         17.4
and other, net
Adjusted EBITDA^(3)      $  133.7      $  146.3      $  426.3      $  386.1
                                                                             
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free
Cash Flow
(dollars in millions)
(unaudited)
                                                                             
                         Quarter Ended               Three Quarters Ended
                         Sept. 27,     Sept. 29,     Sept. 27,     Sept. 29,
                         2012          2011          2012          2011
                                                                             
Net cash provided by
(used in) operating      $  (7.2   )   $  37.6       $  181.7      $  220.2
activities
Capital expenditures     (27.8     )   (17.3     )   (63.1     )   (57.4     )
Proceeds from asset      0.1           0.1           1.1           13.0
sales
Free cash flow^(3)       $  (34.9  )   $  20.4       $  119.7      $  175.8
                                                                             
Reconciliation of Net Income Attributable to Controlling Interest to Adjusted
Diluted Earnings Per Share
(dollars in millions, except per share data)
(unaudited)
                                                                             
                         Quarter Ended               Three Quarters Ended
                         Sept. 27,     Sept. 29,     Sept. 27,     Sept. 29,
                         2012          2011          2012          2011
                                                                             
Net income
attributable to          $  24.0       $  25.0       $  107.5      $  36.2
controlling interest
Loss on extinguishment
of debt, net of          ―             ―             ―             13.6
related tax
effects
Net loss on disposal
and impairment of
operating assets and   2.4           3.7           3.9           9.8
other, net of related

tax effects
Net income
attributable to
controlling interest,
excluding loss on
extinguishment of
debt, net of
related tax effects    $  26.4       $  28.7       $  111.4      $  59.6
and net loss on
disposal,
impairment of
operating assets, net
of related tax
effects
                                                                             
Weighted average
number of diluted        155.1         154.5         154.9         154.5
shares
outstanding^(2)
Adjusted diluted         $  0.17       $  0.19       $  0.72       $  0.39
earnings per share^(1)
Diluted earnings per     $  0.15       $  0.16       $  0.69       $  0.23
share


            We have included adjusted diluted earnings per share, which is
            diluted earnings per share excluding loss on extinguishment of
            debt, net of related tax effects and net loss on disposal and
   (1)  impairment of operating assets and other, net of related tax
            effects, because we believe it provides investors with a useful
            industry comparative and is a financial measure used by management
            to assess the performance of our Company.
      
            Represents reported weighted average number of diluted shares
      (2)   outstanding for purposes of computing diluted earnings per share
            and adjusted diluted earnings per share for the quarters and three
            quarters ended September 27, 2012 and September 29, 2011.
      
            Adjusted EBITDA (earnings before interest, taxes, depreciation and
            amortization expense, net loss on disposal and impairment of
            operating assets and other, share-based compensation expense, loss
            on extinguishment of debt and noncontrolling interest, net of tax
            and other, net) was approximately $133.7 million for the quarter
            ended September 27, 2012. We believe EBITDA, Adjusted EBITDA and
            Free Cash Flow provide useful measures of cash flows from
            operations for our investors because EBITDA, Adjusted EBITDA and
            Free Cash Flow are industry comparative measures of cash flows
            generated by our operations and because they are financial
            measures used by management to assess the liquidity of our
            Company. EBITDA, Adjusted EBITDA and Free Cash Flow are not
            measurements of liquidity under U.S. generally accepted accounting
      (3)   principles and should not be considered in isolation or construed
            as a substitute for other operations data or cash flow data
            prepared in accordance with U.S. generally accepted accounting
            principles for purposes of analyzing our liquidity. In addition,
            not all funds depicted by EBITDA, Adjusted EBITDA and Free Cash
            Flow are available for management's discretionary use. For
            example, a portion of such funds are subject to contractual
            restrictions and functional requirements to pay debt service, fund
            necessary capital expenditures and meet other commitments from
            time to time as described in more detail in the Company’s 2011
            Annual Report on Form 10-K filed with the Securities and Exchange
            Commission on February 27, 2012. EBITDA, Adjusted EBITDA and Free
            Cash Flow, as calculated, may not be comparable to similarly
            titled measures reported by other companies.

Contact:

Financial Contact:
Kevin Mead
Regal Entertainment Group
Vice President Investor Relations and Planning
Kevin.Mead@regalcinemas.com
865-925-9685
or
Media Contact:
Ken Thewes
Regal Entertainment Group
Senior Vice President and Chief Marketing Officer
865-925-9539
 
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