Regal Entertainment Group Reports Results for Fiscal Second Quarter 2014 and Declares Quarterly Dividend

  Regal Entertainment Group Reports Results for Fiscal Second Quarter 2014 and
  Declares Quarterly Dividend

Business Wire

KNOXVILLE, Tenn. -- July 24, 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 second quarter 2014 results.

Total revenues for the second quarter ended June 26, 2014 were $770.3 million
compared to total revenues of $842.3 million for the second quarter ended June
27, 2013. Net income attributable to controlling interest in the second
quarter of 2014 was $33.8 million, which included a $6.6 million after-tax
loss on extinguishment of debt, compared to $36.1 million in the second
quarter of 2013, which included a $19.4 million after-tax loss on
extinguishment of debt. Diluted earnings per share was $0.22 for the second
quarter of 2014 compared to $0.23 for the second quarter of 2013. Adjusted
diluted earnings per share^(1) was $0.27 for the second quarter of 2014
compared to $0.36 for the second quarter of 2013. Adjusted EBITDA^(3) was
$146.6 million for the second quarter of 2014 and $178.2 million for the
second quarter of 2013. 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 $0.22 per
Class A and Class B common share, payable on September 15, 2014, to
stockholders of record on September 5, 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.

“In a challenging summer box office environment, the growth in our average
concession sales per patron and our focus on controlling variable costs helped
drive Adjusted EBITDA margin of over 19%,” stated Amy Miles, CEO of Regal
Entertainment Group. “With year-to-date industry box office results on par
with last year’s record setting pace and an exciting film slate in the back
half of the year, we are optimistic regarding the potential for further box
office success in 2014.”

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 2013 Annual Report on
Form 10-K filed with the Securities and Exchange Commission on February 24,
2014. 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
second quarter 2014 results on July 24, 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 website: 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 website 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 #13574239.

About Regal Entertainment Group:

Regal Entertainment Group (NYSE: RGC) operates the largest and most
geographically diverse theatre circuit in the United States, consisting of
7,349 screens in 574 theatres in 42 states along with the District of
Columbia, American Samoa, Guam and Saipan as of June 26, 2014. 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 website at
www.REGmovies.com.

                                              
Regal Entertainment Group

Consolidated Statements of Income Information

For the Fiscal Quarters and Two Quarters Ended 6/26/14 and 6/27/13

(in millions, except per share data)

(unaudited)
                                                                             
                      Quarter Ended               Two Quarters Ended
                      June 26,     June 27,      June 26,       June 27,
                      2014          2013          2014            2013
Revenues
Admissions            $  517.0      $  571.0      $  1,006.6      $  1,007.6
Concessions           212.3         227.7         413.0           399.5
Other operating       41.0          43.6          77.6            78.0
revenues
Total revenues        770.3         842.3         1,497.2         1,485.1
                                                                             
Operating
expenses
Film rental and       273.5         309.9         528.5           525.8
advertising costs
Cost of               28.3          31.5          54.6            55.4
concessions
Rent expense          106.3         104.6         210.9           204.2
Other operating       203.1         205.4         404.2           389.0
expenses
General and
administrative
expenses
(including
share-based
compensation of
$2.3 and $2.5 for
the quarters
ended June 26,        18.3          19.6          36.9            37.6
2014 and June 27,
2013,
respectively, and
$4.2 and $4.8 for
the two quarters
ended June 26,
2014 and June 27,
2013,
respectively)
Depreciation and      51.0          51.0          102.4           98.2
amortization
Net loss on
disposal and          4.0           3.2           3.6             0.6
impairment of
operating assets
Income from           85.8          117.1         156.1           174.3
operations
                                                                             
Interest expense,     30.4          36.6          64.7            71.5
net
Loss on
extinguishment of     10.5          30.7          62.4            30.7
debt
Earnings
recognized from       (3.5      )   (4.4      )   (16.8       )   (14.2      )
NCM
Other, net            (7.8      )   (8.7      )   (11.0       )   (14.2      )
Income before         56.2          62.9          56.8            100.5
income taxes
Provision for         22.4          26.8          24.3            42.0
income taxes
Net income            33.8          36.1          32.5            58.5
Noncontrolling
interest, net of      ―             ―             0.1             0.1
tax
Net income
attributable to       $  33.8       $  36.1       $  32.6         $  58.6
controlling
interest
                                                                             
Diluted earnings      $  0.22       $  0.23       $  0.21         $  0.38
per share
Adjusted diluted
earnings per          $  0.27       $  0.36       $  0.47         $  0.49
share^(1)
Weighted average
number of diluted     156.2            155.6      156.2              155.6
shares
outstanding^(2)
                                                                             

                                                      
Consolidated Summary Balance Sheet Information

(dollars in millions)

(unaudited)
                                                                             
                                       As of               As of

                                       June 26, 2014       December 26, 2013
                                                                             
Cash and cash equivalents              $    355.3          $      280.9
Total assets                           2,675.7             2,704.7
Total debt                             2,362.7             2,310.7
Total stockholders’ deficit of         (748.3        )     (713.4            )
Regal Entertainment Group
                                                                             

                                                    
Operating Data

(unaudited)
                                                         
                               Quarter Ended             Two Quarters Ended
                               June 26,   June 27,     June 26,   June 27,
                               2014         2013         2014         2013
                                                                      
Theatres at period end         574          577          574          577
Screens at period end          7,349        7,343        7,349        7,343
Average screens per            12.8         12.7         12.8         12.7
theatre
Attendance (in thousands)      56,085       62,281       111,221      111,926
Average ticket price           $  9.22      $  9.17      $  9.05      $  9.00
Average concessions per        $  3.79      $  3.66      $  3.71      $  3.57
patron
                                                                         

                                                
Reconciliation of EBITDA to Net Cash Provided by Operating Activities

(dollars in millions)

(unaudited)
                                                                             
                     Quarter Ended                   Two Quarters Ended
                     June 26,        June 27,        June 26,        June
                     2014          2013            2014          27,
                                                                     2013
                                                                             
EBITDA               $  137.6        $  150.5        $  224.0        $ 270.3
Interest             (30.4     )     (36.6     )     (64.7     )     (71.5   )
expense, net
Provision for        (22.4     )     (26.8     )     (24.3     )     (42.0   )
income taxes
Deferred income      (0.6      )     4.0             (0.5      )     2.5
taxes
Changes in
operating assets     (6.9      )     25.2            10.8            68.7
and liabilities
Loss on
extinguishment       10.5            30.7            62.4            30.7
of debt
Other items, net     (2.9      )     (1.3      )     5.2             (2.1    )
Net cash
provided by          $  84.9         $  145.7        $  212.9        $ 256.6
operating
activities
                                                                             

                                                
Reconciliation of EBITDA to Adjusted EBITDA

(dollars in millions)

(unaudited)
                                                                             
                     Quarter Ended                   Two Quarters Ended
                     June 26,        June 27,        June 26,        June
                     2014          2013            2014          27,
                                                                     2013
                                                                             
EBITDA               $  137.6        $  150.5        $  224.0        $ 270.3
Net loss on
disposal and         4.0             3.2             3.6             0.6
impairment of
operating assets
Share-based
compensation         2.3             2.5             4.2             4.8
expense
Loss on
extinguishment       10.5            30.7            62.4            30.7
of debt
Noncontrolling
interest, net of     (7.8      )     (8.7      )     (11.1     )     (14.3   )
tax and other,
net
Adjusted             $  146.6        $  178.2        $  283.1        $ 292.1
EBITDA^(3)
                                                                             

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

(dollars in millions)

(unaudited)
                                                                             
                          Quarter Ended              Two Quarters Ended
                          June 26,    June 27,      June 26,     June 27,
                          2014         2013          2014          2013
                                                                             
Net cash provided by      $  84.9      $  145.7      $  212.9      $  256.6
operating activities
Capital expenditures      (28.4    )   (24.7     )   (57.5     )   (48.6     )
Proceeds from asset       ―            0.6           1.7           4.1
sales
Free cash flow^(3)        $  56.5      $  121.6      $  157.1      $  212.1
                                                                             

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

(dollars in millions, except per share data)

(unaudited)
                                                                             
                            Quarter Ended                Two Quarters Ended
                            June 26,       June          June         June
                            2014         27,           26,        27,
                                           2013          2014         2013
                                                                             
Net income attributable     $  33.8        $  36.1       $ 32.6       $ 58.6
to controlling interest
Loss on extinguishment
of debt, net of related     6.6            19.4          39.2         19.4
tax effects
Gain on sale of
available for sale          (0.8     )     (1.6    )     (1.2   )     (1.6   )
securities, net of
related tax effects
Net loss on disposal
and impairment of           2.4            1.9           2.2          0.4
operating assets, 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       $  42.0        $  55.8       $ 72.8       $ 76.8
sale securities, net of
related tax effects,
and net loss on
disposal and impairment
of operating assets,
net of related tax
effects
                                                                             
Weighted average number
of diluted shares           156.2          155.6         156.2        155.6
outstanding^(2)
Adjusted diluted            $  0.27        $  0.36       $ 0.47       $ 0.49
earnings per share^(1)
Diluted earnings per        $  0.22        $  0.23       $ 0.21       $ 0.38
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, gain on sale of available for
    (1) sale securities, 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
        (2) outstanding for purposes of computing diluted earnings per share
            and adjusted diluted earnings per share for the quarters and two
            quarters ended June 26, 2014 and June 27, 2013.
            
            Adjusted EBITDA (earnings before interest, taxes, depreciation and
            amortization expense, net loss on disposal and impairment of
            operating assets, share-based compensation expense, loss on
            extinguishment of debt and noncontrolling interest, net of tax and
            other, net) was approximately $146.6 million for the quarter ended
            June 26, 2014. 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
        (3) 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 2013 Annual Report on
            Form 10-K filed with the Securities and Exchange Commission on
            February 24, 2014. 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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