Regal Entertainment Group Reports Results for Fourth Quarter 2013 and Increases Quarterly Dividend

  Regal Entertainment Group Reports Results for Fourth Quarter 2013 and
  Increases Quarterly Dividend

Business Wire

KNOXVILLE, Tenn. -- February 13, 2014

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

Total revenues for the fourth quarter ended December 26, 2013 were $739.9
million compared to total revenues of $721.4 million for the fourth quarter
ended December 27, 2012^(1). Net income attributable to controlling interest
was $24.0 million in the fourth quarter of 2013 compared to $36.3 million in
the fourth quarter of 2012^(1). Diluted earnings per share was $0.15 for the
fourth quarter of 2013 compared to $0.23 during the fourth quarter of
2012^(1). Adjusted diluted earnings per share^(2) was $0.17 for the fourth
quarter of 2013 compared to $0.27 during the fourth quarter of 2012^(1).
Adjusted EBITDA^(3) was $125.8 million for the fourth quarter of 2013 and
$150.6 million for the fourth quarter of 2012^(1). Reconciliations of non-GAAP
financial measures are provided in the financial schedules accompanying this
press release.

“We are pleased to report that a healthy box office environment combined with
the impact of our recent acquisitions enabled us to generate record total
revenue and Adjusted EBITDA for the second consecutive year,” stated Amy
Miles, CEO of Regal Entertainment Group. “The increase in our recurring
quarterly dividend to $0.22 per share illustrates our confidence in the
Company’s ability to generate significant free cash flow and our commitment to
returning value to stockholders,” Miles continued.

Regal’s Board of Directors also today declared a cash dividend of $0.22 per
Class A and Class B common share, payable on March 14, 2014, to stockholders
of record on March 4, 2014. 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.

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
fourth quarter 2013 results on February 13, 2014 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 #405494.

About Regal Entertainment Group:

Regal Entertainment Group (NYSE: RGC) operates the largest and most
geographically diverse theatre circuit in the United States, consisting of
7,394 screens in 580 theatres in 42 states along with Guam, Saipan, American
Samoa and the District of Columbia as of December 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 Four Quarters Ended 12/26/13 and 12/27/12

(in millions, except per share data)

(unaudited)
                                                                             
                     Quarter Ended                 Four Quarters Ended
                     Dec. 26,     Dec. 27,       Dec. 26,      Dec. 27,
                     2013           2012^(1)       2013            2012^(1)
Revenues
Admissions           $  503.6       $  485.3       $ 2,059.6       $ 1,925.1
Concessions          193.3          188.5          816.9           748.4
Other operating      43.0           47.6           161.6           146.5
revenues
Total revenues       739.9          721.4          3,038.1         2,820.0
                                                                             
Operating
expenses
Film rental and
advertising          265.6          250.8          1,078.0         1,000.5
costs
Cost of              25.7           25.9           111.6           101.1
concessions
Rent expense         103.7          99.1           413.6           384.4
Other operating      215.1          189.9          812.8           735.9
expenses
General and
administrative
expenses
(including
share-based
compensation of
$2.3 million and
$3.3 million for
the quarters
ended December
26, 2013 and
December 27,         19.2           20.1           73.7            68.8
2012,
respectively,
and $9.3 million
and $10.3
million for the
four quarters
ended December
26, 2013 and
December 27,
2012,
respectively)
Depreciation and     51.2           45.5           200.2           183.1
amortization
Net loss on
disposal and
impairment of        3.7            9.8            8.4             16.2
operating assets
and other
Income from          55.7           80.3           339.8           330.0
operations
                                                                             
Interest             34.8           32.2           141.3           135.0
expense, net
Earnings
recognized from      (12.9    )     (11.7    )     (37.5     )     (34.8     )
NCM
Gain on sale of
NCM, Inc. common     ―              ―              (30.9     )     ―
stock
Loss on
extinguishment       ―              ―              30.7            ―
of debt
Other, net           (5.0     )     (1.1     )     (28.4     )     (1.9      )
Income before        38.8           60.9           264.6           231.7
income taxes
Provision for        14.8           24.6           107.0           89.5
income taxes
Net income           24.0           36.3           157.6           142.2
Noncontrolling
interest, net of     ―              ―              0.1             0.1
tax
Net income
attributable to      $  24.0        $  36.3        $ 157.7         $ 142.3
controlling
interest
                                                                             
Diluted earnings     $  0.15        $  0.23        $ 1.01          $ 0.92
per share
Adjusted diluted
earnings per         $  0.17        $  0.27        $ 1.04          $ 0.98
share^(2)
Weighted average
number of            155.9             155.3       155.7             155.0
diluted shares
outstanding^(4)

                                                  
Consolidated Summary Balance Sheet Information

(dollars in millions)

(unaudited)
                                                                             
                                   As of                   As of

                                   Dec. 26, 2013           Dec. 27, 2012^(1)
                                                                             
Cash and cash equivalents          $    280.9              $      109.5
Total assets                       2,704.7                 2,222.1
Total debt                         2,310.7                 1,995.2
Total stockholders’
deficit of Regal                   (713.4        )         (748.6            )
Entertainment Group

                                                    
Operating Data

(unaudited)
                                                         
                               Quarter Ended             Four Quarters Ended
                               Dec. 26,   Dec. 27,     Dec. 26,   Dec. 27,
                               2013         2012         2013         2012
                                                                      
Theatres at period end         580          540          580          540
Screens at period end          7,394        6,880        7,394        6,880
Average screens per            12.7         12.7         12.7         12.7
theatre
Attendance (in thousands)      54,246       54,762       228,564      216,365
Average ticket price           $  9.28      $  8.86      $  9.01      $  8.90
Average concessions per        $  3.56      $  3.44      $  3.57      $  3.46
patron

                                                 
Reconciliation of EBITDA to Net Cash Provided by Operating Activities

(dollars in millions)

(unaudited)
                                                                             
                         Quarter Ended               Four Quarters Ended
                         Dec. 26,     Dec. 27,      Dec. 26,     Dec. 27,
                         2013          2012^(1)      2013          2012^(1)
                                                                             
EBITDA                   $  124.8      $  138.6      $  606.2      $  549.9
                                                                             
Interest expense,        (34.8     )   (32.2     )   (141.3    )   (135.0    )
net
Provision for income     (14.8     )   (24.6     )   (107.0    )   (89.5     )
taxes
Deferred income          (18.1     )   22.6          (11.8     )   52.4
taxes
Changes in operating
assets and               29.8          44.8          (1.5      )   (68.3     )
liabilities
Gain on sale of NCM,     ―             ―             (30.9     )   ―
Inc. common stock
Loss on
extinguishment of        ―             ―             30.7          ―
debt
Other items, net         4.4           15.7          2.5           37.1
Net cash provided by     $  91.3       $  164.9      $  346.9      $  346.6
operating activities

                                                 
Reconciliation of EBITDA to Adjusted EBITDA

(dollars in millions)

(unaudited)
                                                                             
                         Quarter Ended               Four Quarters Ended
                         Dec. 26,     Dec. 27,      Dec. 26,     Dec. 27,
                         2013          2012^(1)      2013          2012^(1)
                                                                             
EBITDA                   $  124.8      $  138.6      $  606.2      $  549.9
Net loss on disposal
and impairment of        3.7           9.8           8.4           16.2
operating assets and
other
Share-based              2.3           3.3           9.3           10.3
compensation expense
Gain on sale of NCM,     ―             ―             (30.9     )   ―
Inc. common stock
Loss on
extinguishment of        ―             ―             30.7          ―
debt
Noncontrolling
interest, net of tax     (5.0      )   (1.1      )   (28.5     )   (2.0      )
and other, net
Adjusted EBITDA^(3)      $  125.8      $  150.6      $  595.2      $  574.4

                                                 
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

(dollars in millions)

(unaudited)
                                                                             
                          Quarter Ended              Four Quarters Ended
                          Dec. 26,    Dec. 27,      Dec. 26,     Dec. 27,
                          2013         2012          2013          2012
                                                                             
Net cash provided by      $  91.3      $  164.9      $  346.9      $  346.6
operating activities
Capital expenditures      (42.0    )   (26.1     )   (112.1    )   (89.2     )
Proceeds from asset       0.6          4.7           7.3           5.8
sales
Free cash flow^(3)        $  49.9      $  143.5      $  242.1      $  263.2

                                                
Reconciliation of Net Income Attributable to Controlling Interest to Adjusted
Diluted Earnings Per Share

(dollars in millions, except per share data)

(unaudited)
                                                     
                          Quarter Ended              Four Quarters Ended
                          Dec. 26,   Dec. 27,      Dec. 26,      Dec. 27,
                          2013         2012^(1)      2013            2012^(1)
                                                                     
Net income
attributable to           $  24.0      $   36.3      $  157.7        $  142.3
controlling interest
Loss on
extinguishment of         ―            ―             19.4            ―
debt, net of related
tax effects
Gain on sale of
available for sale        ―            ―             (1.6      )     ―
securities, net of
related tax effects
Gain on sale of NCM,
Inc. common stock,        ―            ―             (18.5     )     ―
net of related tax
effects
Net loss on disposal
and impairment of
operating assets and      2.2          5.9           5.1             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, gain on
sale of available for
sale securities, net
of related tax            $  26.2      $   42.2      $  162.1        $  152.1
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 diluted         155.9        155.3         155.7           155.0
shares
outstanding^(4)
                                                                     
Adjusted diluted
earnings per              $  0.17      $   0.27      $  1.04         $  0.98
share^(2)
Diluted earnings per      $  0.15      $   0.23      $  1.01         $  0.92
share

__________________________________

                    During the fourth quarter of fiscal 2013, the Company
                    identified errors related to an understatement of deferred
                    revenue attributable to its paper gift certificate and
                    discount ticket products and an overstatement of other
        (1)    operating revenue associated with the unredeemed portion
                    of these products dating back to 2002. In accordance with
                    Financial Accounting Standards Board Accounting Standards
                    Codification 250, Accounting Changes and Error
                    Corrections, we evaluated the materiality of the errors
                    from quantitative and qualitative perspectives, and
                    concluded that the errors were immaterial to the Company’s
                    prior period interim and annual consolidated financial
                    statements. Since these revisions were not material to any
                    prior period interim or annual consolidated financial
                    statements, no amendments to previously filed interim or
                    annual periodic reports are required. Consequently, the
                    Company revised the historical consolidated financial
                    information presented herein and will reflect the same
                    revisions in our forthcoming fiscal 2013 Form 10-K.

                    

                    For the quarter ended December 27, 2012, the immaterial
                    error correction resulted in a decrease in other operating
                    revenues, total revenues, income from operations and
                    income before income taxes of $1.7 million, a decrease in
                    provision for income taxes of $0.7 million, a decrease in
                    net income and net income attributable to controlling
                    interest of $1.0 million, and a decrease in diluted
                    earnings per share of $0.01. For the four quarters ended
                    December 27, 2012, the correction resulted in a decrease
                    in other operating revenues, total revenues, income from
                    operations and income before income taxes of $4.2 million,
                    a decrease in provision for income taxes of $1.7 million,
                    a decrease in net income and net income attributable to
                    controlling interest of $2.5 million, and a decrease in
                    diluted earnings per share of $0.01. Additionally, the
                    correction resulted in a decrease to EBITDA and Adjusted
                    EBITDA of $1.7 million and $4.2 million for the quarter
                    and four quarters ended December 27, 2012, respectively.
                    The correction also resulted in a decrease to adjusted
                    diluted earnings per share of $0.01 and $0.02 for the
                    quarter and four quarters ended December 27, 2012,
                    respectively.

                    

                    As of December 27, 2012, the immaterial error correction
                    resulted in an increase in total assets of $12.6 million
                    and an increase in total stockholders’ deficit of Regal
                    Entertainment Group of $51.8 million.
                    
                    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 effects, gain on sale of NCM, Inc. common stock, net
            (2)     of related tax effects, and net loss on disposal and
                    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.
                    
                    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, gain on sale of NCM,
                    Inc. common stock, loss on extinguishment of debt and
                    noncontrolling interest, net of tax and other, net) was
                    approximately $125.8 million for the quarter ended
                    December 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
            (3)     liquidity under U.S. generally accepted accounting
                    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.
                    
                    Represents reported weighted average number of diluted
                    shares outstanding for purposes of computing diluted
            (4)     earnings per share and adjusted diluted earnings per share
                    for the quarters and four quarters ended December 26, 2013
                    and December 27, 2012.

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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