Regal Entertainment Group Reports Results for First Quarter 2013 and Declares Quarterly Dividend

  Regal Entertainment Group Reports Results for First Quarter 2013 and
  Declares Quarterly Dividend

Business Wire

KNOXVILLE, Tenn. -- April 30, 2013

Regal Entertainment Group (NYSE: RGC), a leading motion picture exhibitor
owning and operating the largest theatre circuit in the United States, today
announced fiscal first quarter 2013 results.

Total revenues for the first quarter ended March 28, 2013 were $642.8 million
compared to total revenues of $684.9 million for the first quarter ended March
29, 2012. Net income attributable to controlling interest was $22.5 million in
the first quarter of 2013 compared to $46.3 million in the first quarter of
2012. Diluted earnings per share was $0.14 for the first quarter of 2013
compared to $0.30 for the first quarter of 2012. Adjusted diluted earnings per
share^(1) was $0.13 for the first quarter of 2013 compared to $0.30 for the
first quarter of 2012. Adjusted EBITDA^(3) was $113.9 million for the first
quarter of 2013 and $153.8 million for the first quarter of 2012.
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 June 14, 2013, to stockholders of
record on June 4, 2013. 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.

“In a challenging box office environment, we are pleased that the increase in
our average concession sales per patron and our focus on controlling variable
costs helped drive free cash flow of over $90 million in the first quarter,”
stated Amy Miles, CEO of Regal Entertainment Group. “As we look ahead, we are
excited about the opportunities created by the recent addition of over 800
screens to our circuit and the films scheduled for release in the upcoming
summer movie 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 2012 Annual Report on
Form 10-K filed with the Securities and Exchange Commission on February 25,
2013. 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
first quarter 2013 results on April 30, 2013 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 conference call ID #405488.

About Regal Entertainment Group:

Regal Entertainment Group (NYSE: RGC) operates the largest and most
geographically diverse theatre circuit in the United States, consisting of
7,367 screens in 580 locations in 42 states along with Guam, Saipan, American
Samoa and the District of Columbia as of March 29, 2013. The Company operates
theatres in 46 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 Ended 3/28/13 and 3/29/12
(in millions, except per share data)
(unaudited)

                                          Quarter Ended
                                           March 28, 2013    March 29, 2012
Revenues
Admissions                                 $     436.6        $     474.1
Concessions                                171.8              180.0
Other operating revenues                   34.4               30.8
Total revenues                             642.8              684.9
                                                                             
Operating expenses
Film rental and advertising costs          215.9              236.8
Cost of concessions                        23.9               23.7
Rent expense                               99.6               94.1
Other operating expenses                   183.6              176.8
General and administrative expenses
(including share-based compensation of     18.0               15.8
$2.3 million for the quarters ended
March 28, 2013 and March 29, 2012)
Depreciation and amortization              47.2               46.9
Net gain on disposal and impairment of     (2.6           )   —
operating assets
Income from operations                     57.2               90.8
                                                                             
Interest expense, net                      34.9               36.0
Earnings recognized from NCM               (9.8           )   (13.8          )
Other, net                                 (5.5           )   (2.9           )
Income before income taxes                 37.6               71.5
Provision for income taxes                 15.2               25.2
Net income                                 22.4               46.3
Noncontrolling interest, net of tax        0.1                —
Net income attributable to controlling     $     22.5         $     46.3
interest
                                                                             
Diluted earnings per share                 $     0.14         $     0.30
Adjusted diluted earnings per share^(1)    $     0.13         $     0.30
Weighted average number of diluted         155.5                    154.8
shares outstanding^(2)




Consolidated Summary Balance Sheet Information
(dollars in millions)
(unaudited)

                                             As of              As of
                                                             
                                             March 28, 2013     Dec. 27 2012
                                                                             
Cash and cash equivalents                    $     395.4        $    109.5
Total assets                                 2,451.8            2,209.5
Total debt                                   2,235.9            1,995.2
Total stockholders’ deficit of Regal         (704.2         )   (696.8       )
Entertainment Group




Operating Data

(unaudited)

                                Quarter Ended
                                 March 28, 2013  March 29, 2012
                                                  
Theatres at period end           537              523
Screens at period end            6,854            6,587
Average screens per theatre      12.8             12.6
Attendance (in thousands)        49,645           53,721
Average ticket price             $     8.79       $     8.83
Average concessions per patron   $     3.46       $     3.35




Reconciliation of EBITDA to Net Cash Provided by Operating Activities
(dollars in millions)
(unaudited)

                                          Quarter Ended
                                           March 28, 2013    March 29, 2012
                                                                             
EBITDA                                     $     119.8        $     154.4
Interest expense, net                      (34.9          )   (36.0          )
Provision for income taxes                 (15.2          )   (25.2          )
Deferred income taxes                      (1.5           )   7.7
Changes in operating assets and            43.5               11.7
liabilities
Other items, net                           (0.8           )   4.9
Net cash provided by operating             $     110.9        $     117.5
activities




Reconciliation of EBITDA to Adjusted EBITDA
(dollars in millions)
(unaudited)

                                          Quarter Ended
                                           March 28, 2013    March 29, 2012
                                                                             
EBITDA                                     $     119.8        $     154.4
Net gain on disposal and impairment of     (2.6           )   —
operating assets
Share-based compensation expense           2.3                2.3
Noncontrolling interest, net of tax and    (5.6           )   (2.9           )
other, net
Adjusted EBITDA^(3)                        $     113.9        $     153.8




Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
(dollars in millions)
(unaudited)

                                    Quarter Ended
                                     March 28, 2013        March 29, 2012
                                                                             
Net cash provided by operating       $      110.9           $      117.5
activities
Capital expenditures                 (23.9            )     (10.9            )
Proceeds from asset sales            3.5                    0.1
Free cash flow^(3)                   $      90.5            $      106.7




Reconciliation of Net Income Attributable to Controlling Interest to Adjusted
Diluted Earnings Per Share
(dollars in millions, except per share data)
(unaudited)

                                            Quarter Ended
                                             March 28, 2013    March 29, 2012
                                                                
Net income attributable to controlling       $     22.5         $     46.3
interest
Net gain on disposal and impairment of
operating assets, net of related tax         (1.6           )   —
effects
Net income attributable to controlling
interest, excluding net gain on disposal     $     20.9         $     46.3
and impairment of operating assets, net of
related tax effects
                                                                
Weighted average number of diluted shares    155.5              154.8
outstanding^(2)
                                                                
Adjusted diluted earnings per share^(1)      $     0.13         $     0.30
Diluted earnings per share                   $     0.14         $     0.30

______________________
            We have included adjusted diluted earnings per share, which is
            diluted earnings per share excluding net gain on disposal and
   (1)  impairment of operating assets, 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 ended
            March 28, 2013 and March 29, 2012.
            
            Adjusted EBITDA (earnings before interest, taxes, depreciation and
            amortization expense, net gain on disposal and impairment of
            operating assets, share-based compensation expense, and
            noncontrolling interest, net of tax and other, net) was
            approximately $113.9 million for the quarter ended March 28, 2013.
            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 principles and should not be considered in
     (3)   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 2012 Annual Report on Form 10-K filed with the
            Securities and Exchange Commission on February 25, 2013. 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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