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

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

Business Wire

KNOXVILLE, Tenn. -- October 24, 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 third quarter 2013 results.

Total revenues for the third quarter ended September 26, 2013 were $813.1
million  compared to total revenues of $692.9 million  for the third quarter
ended September 27, 2012. Net income attributable to controlling interest in
the third quarter of 2013, which included an $18.5 million after-tax gain on
the sale of National CineMedia common stock, was $75.1 million compared to
$24.0 million in the third quarter of 2012. Diluted earnings per share was
$0.48 for the third quarter of 2013 compared to $0.15 for the third quarter of
2012. Adjusted diluted earnings per share^(1) was $0.38 for the third quarter
of 2013 compared to $0.17 for the third quarter of 2012. Adjusted EBITDA^(3)
was $177.3 million for the third quarter of 2013 compared to $133.7 million
for the third 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 December 13, 2013, to
stockholders of record on December 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.

“We are pleased to report third quarter records for both total revenue and
Adjusted EBITDA as total revenues exceeded $800 million and Adjusted EBITDA
exceeded $175 million for the second consecutive quarter,” stated Amy Miles,
CEO of Regal Entertainment Group. “We are encouraged by the year-to-date
industry box office results and are optimistic regarding the box office
prospects for the upcoming holiday season,” Miles continued.

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
third quarter 2013 results on October 24, 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 #405492.

About Regal Entertainment Group:

Regal Entertainment Group (NYSE: RGC) operates the largest and most
geographically diverse theatre circuit in the United States, consisting of
7,334 screens in 575 theatres in 42 states along with Guam, Saipan, American
Samoa and the District of Columbia as of September 26, 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 and Three Quarters Ended 9/26/13 and 9/27/12

(in millions, except per share data)

(unaudited)
                                                                             
                     Quarter Ended                 Three Quarters Ended
                     Sept. 26,     Sept. 27,     Sept. 26,     Sept. 27,
                     2013            2012          2013            2012
Revenues
Admissions           $  548.4        $ 471.0       $ 1,556.0       $ 1,439.8
Concessions          224.1           187.3         623.6           559.9
Other operating      40.6           34.6         118.6          101.4     
revenues
Total revenues       813.1           692.9         2,298.2         2,101.1
                                                                             
Operating
expenses
Film rental and
advertising          286.6           247.6         812.4           749.7
costs
Cost of              30.5            25.5          85.9            75.2
concessions
Rent expense         105.7           95.9          309.9           285.3
Other operating      208.7           185.2         597.7           546.0
expenses
General and
administrative
expenses
(including
share-based
compensation of
$2.2 and $2.4
for the quarters
ended September
26, 2013 and         16.9            16.1          54.5            48.7
September 27,
2012,
respectively,
and $7.0 for the
three quarters
ended September
26, 2013 and
September 27,
2012)
Depreciation and     50.8            45.0          149.0           137.6
amortization
Net loss on
disposal and         4.1            3.9          4.7            6.4       
impairment of
operating assets
Income from          109.8           73.7          284.1           252.2
operations
                                                                             
Interest             35.0            32.3          106.5           102.8
expense, net
Earnings
recognized from      (10.4     )     (8.7    )     (24.6     )     (23.1     )
NCM
Gain on sale of
NCM, Inc. common     (30.9     )     ―             (30.9     )     ―
stock
Loss on
extinguishment       ―               ―             30.7            ―
of debt
Other, net           (9.2      )     10.5         (23.4     )     (0.8      )
Income before        125.3           39.6          225.8           173.3
income taxes
Provision for        50.2           15.7         92.2           65.9      
income taxes
Net income           75.1            23.9          133.6           107.4
Noncontrolling
interest, net of     ―              0.1          0.1            0.1       
tax
Net income
attributable to      $  75.1        $ 24.0       $ 133.7        $ 107.5   
controlling
interest
                                                                             
Diluted earnings     $  0.48         $ 0.15        $ 0.86          $ 0.69
per share
Adjusted diluted
earnings per         $  0.38         $ 0.17        $ 0.87          $ 0.72
share^(1)
Weighted average
number of            155.8             155.1       155.7             154.9
diluted shares
outstanding^(2)

                                                   
Consolidated Summary Balance Sheet Information

(dollars in millions)

(unaudited)
                                                                            
                                  As of                          As of

                                  Sept. 26, 2013                 Dec. 27, 2012
                                                                            
Cash and cash                     $   270.2                      $   109.5
equivalents
Total assets                      2,508.3                        2,209.5
Total debt                        2,307.9                        1,995.2
Total stockholders’
deficit of Regal                  (656.6      )                  (696.8     )
Entertainment Group

                                                 
Operating Data

(unaudited)
                                                                             
                    Quarter Ended                     Three Quarters Ended
                    Sept. 26,      Sept. 27,        Sept. 26,    Sept. 27,
                    2013             2012             2013           2012
                                                                             
Theatres at         575              524              575            524
period end
Screens at          7,334            6,621            7,334          6,621
period end
Average screens     12.8             12.6             12.8           12.6
per theatre
Attendance (in      62,392           53,585           174,318        161,603
thousands)
Average ticket      $  8.79          $  8.79          $  8.93        $ 8.91
price
Average
concessions per     $  3.59          $  3.50          $  3.58        $ 3.46
patron


Reconciliation of EBITDA to Net Cash Provided by (Used in) Operating
Activities

(dollars in millions)

(unaudited)

                    Quarter Ended                     Three Quarters Ended
                    Sept. 26,        Sept. 27,        Sept. 26,      Sept. 27,
                    2013             2012             2013           2012
                                                                             
EBITDA              $  211.1         $  117.0         $  481.4       $ 413.8
Interest            (35.0     )      (32.3     )      (106.5   )     (102.8  )
expense, net
Provision for       (50.2     )      (15.7     )      (92.2    )     (65.9   )
income taxes
Deferred income     3.8              20.4             6.3            29.8
taxes
Changes in
operating           (100.0    )      (114.3    )      (31.3    )     (114.6  )
assets and
liabilities
Gain on sale of
NCM, Inc.           (30.9     )      ―                (30.9    )     ―
common stock
Loss on
extinguishment      ―                ―                30.7           ―
of debt
Other items,        0.2             17.7            (1.9     )     21.4    
net
Net cash
provided by
(used in)           $  (1.0   )      $  (7.2   )      $  255.6      $ 181.7 
operating
activities
                                                                             
                                                                             
Reconciliation of EBITDA to Adjusted EBITDA

(dollars in millions)

(unaudited)

                    Quarter Ended                     Three Quarters Ended
                    Sept. 26,        Sept. 27,        Sept. 26,      Sept. 27,
                    2013             2012             2013           2012
                                                                             
EBITDA              $  211.1         $  117.0         $  481.4       $ 413.8
Net loss on
disposal and
impairment of       4.1              3.9              4.7            6.4
operating
assets
Share-based
compensation        2.2              2.4              7.0            7.0
expense
Gain on sale of
NCM, Inc.           (30.9     )      ―                (30.9    )     ―
common stock
Loss on
extinguishment      ―                ―                30.7           ―
of debt
Noncontrolling
interest, net       (9.2      )      10.4            (23.5    )     (0.9    )
of tax and
other, net
Adjusted            $  177.3        $  133.7        $  469.4      $ 426.3 
EBITDA^(3)
                                                                             
                                                                             
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free
Cash Flow

(dollars in millions)

(unaudited)
                    Quarter Ended                     Three Quarters Ended
                    Sept. 26,        Sept. 27,        Sept. 26,      Sept. 27,
                    2013             2012             2013           2012
                                                                             
Net cash
provided by
(used in)           $  (1.0   )      $  (7.2   )      $  255.6       $ 181.7
operating
activities
Capital             (21.5     )      (27.8     )      (70.1    )     (63.1   )
expenditures
Proceeds from       2.6             0.1             6.7           1.1     
asset sales
Free cash           $  (19.9  )      $  (34.9  )      $  192.2      $ 119.7 
flow^(3)

                                                       
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.        Sept.      Sept. 26,     Sept.
                                    26, 2013   27,        2013        27,
                                                 2012                     2012
                                                                          
Net income attributable to          $ 75.1       $ 24.0     $ 133.7       $ 107.5
controlling interest
Loss on extinguishment of debt,     ―            ―          19.4          ―
net of related tax effects
Gain on sale of available for
sale securities, net of related     ―            ―          (1.6    )     ―
tax effects
Gain on sale of NCM, Inc.
common stock, net of related        (18.5  )     ―          (18.5   )     ―
tax effects
Net loss on disposal and
impairment of operating assets,     2.5         2.4        2.8          3.9
net of related tax effects
Net income attributable to
controlling interest, excluding
loss on extinguishment of debt,
net of related tax effects,
gain on sale of available for
sale securities, net of related     $ 59.1       $ 26.4     $ 135.8       $ 111.4
tax effects, gain on sale of
NCM, Inc. common stock, net of
related tax effects, and net
loss on disposal, impairment of
operating assets, net of
related tax effects
                                                                          
Weighted average number of          155.8        155.1      155.7         154.9
diluted shares outstanding^(2)
Adjusted diluted earnings per       $ 0.38       $ 0.17     $ 0.87        $ 0.72
share^(1)
Diluted earnings per share          $ 0.48       $ 0.15     $ 0.86        $ 0.69
_______________________________

                  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, gain on
                  sale of available for sale securities, net of related tax
      (1)  effects, gain on sale of NCM, Inc. common stock, net of
                  related tax effects, and net loss on disposal and 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 outstanding for purposes of computing diluted
            (2)   earnings per share and adjusted diluted earnings per share
                  for the quarters and three quarters ended September 26, 2013
                  and September 27, 2012.
                  
                  Adjusted EBITDA (earnings before interest, taxes,
                  depreciation and amortization expense, net loss on disposal
                  and impairment of operating assets, share-based compensation
                  expense, gain on sale of NCM, Inc. common stock, loss on
                  extinguishment of debt and noncontrolling interest, net of
                  tax and other, net) was approximately $177.3 million for the
                  quarter ended September 26, 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
            (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 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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