Regal Entertainment Group Reports Results for Second Quarter 2008 and Declares Quarterly Dividend
2008-07-24 05:00:00
Regal Entertainment Group Reports Results for Second Quarter 2008 and Declares Quarterly Dividend
KNOXVILLE, Tenn.–(EMWNews)–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 2008 results and declared
a cash dividend of $0.30 per common share.
Total revenues for the second quarter ended June 26, 2008 were $675.8
million compared to total revenues of $683.4 million for the second
quarter of 2007. Net income was $13.8 million in the second quarter of
2008, which included a $11.1 million after-tax loss on debt
extinguishment, compared to net income of $52.7 million in the second
quarter of 2007, which benefited from a $17.0 million after-tax gain on
the sale of the Company’s Fandango interest.
Diluted earnings per share was $0.09 for the second quarter of 2008
compared to $0.33 during the second quarter of 2007. Adjusted earnings
per diluted share(1) was $0.16 for the second
quarter of 2008 compared to $0.22 during the second quarter of 2007.
Adjusted EBITDA(2) of $124.4 million for the
second quarter of 2008 represented an Adjusted EBITDA margin of
approximately 18.4%. 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 $0.30 per Class A and Class B common share, payable
on September 19, 2008, to stockholders of record on September 11, 2008.
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.
“During the quarter we were able to quickly
integrate the 400 screens acquired from Consolidated Theatres ahead of
the summer box office season and demonstrated an ability to control a
number of critical expense categories,” stated
Mike Campbell, CEO of Regal Entertainment Group.
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 2007 Annual Report on Form 10-K
filed with the Securities and Exchange Commission on February 26, 2008.
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 2008 results on July 24, 2008 at 9:30 a.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 #264084. 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) is the largest motion picture
exhibitor in the world. The Company’s theatre circuit, comprising Regal
Cinemas, United Artists Theatres and Edwards Theatres, operates 6,776
screens in 551 locations in 39 states and the District of Columbia.
Regal operates theatres in all of the top 33 and 44 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.
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Regal Entertainment Group |
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Consolidated Statements of Income Information |
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For the Fiscal Quarters and Two Quarters Ended 6/26/08 and 6/28/07 |
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(in millions, except per share data) |
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(unaudited) |
Quarter Ended |
Two Quarters Ended |
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June 26, 2008 |
June 28, 2007 |
June 26, 2008 |
June 28, 2007 |
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Revenues |
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Admissions |
$455.7 |
$457.9 |
$887.7 |
$884.6 |
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Concessions |
188.9 |
197.4 |
355.0 |
365.7 |
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Other operating revenues |
31.2 |
28.1 |
59.9 |
58.1 |
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Total revenues |
675.8 |
683.4 |
1,302.6 |
1,308.4 |
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Operating expenses |
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Film rental and advertising costs |
247.0 |
252.4 |
462.9 |
470.4 |
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Cost of concessions |
25.5 |
27.9 |
48.2 |
52.9 |
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Rent expense |
90.0 |
83.3 |
173.3 |
164.3 |
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Other operating expenses |
180.5 |
176.2 |
349.1 |
341.1 |
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General and administrative expenses |
15.8 |
16.8 |
30.8 |
32.8 |
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(including share-based compensation expense of $1.5 million and $1.4 million for the quarters ended June 26, 2008 and June 28, 2007, respectively, and $2.9 million and $3.5 million for the two quarters ended June 26, 2008 and June 28, 2007, respectively) |
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Depreciation and amortization |
49.9 |
46.1 |
96.2 |
92.4 |
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Net loss (gain) on disposal and impairment of operating assets |
2.3 |
(2.6) |
4.5 |
2.8 |
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Joint venture equity including former employee compensation |
0.1 |
0.3 |
0.3 |
3.7 |
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Income from operations |
64.7 |
83.0 |
137.3 |
148.0 |
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Interest expense, net |
30.0 |
25.5 |
59.7 |
56.5 |
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Gain on NCM transaction |
– |
– |
– |
(350.7) |
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Gain on sale of Fandango interest |
– |
(28.3) |
– |
(28.3) |
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Earnings recognized from NCM |
(5.9) |
(2.2) |
(14.3) |
(2.2) |
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Minority interest in earnings of consolidated subsidiaries and other |
0.6 |
0.2 |
1.2 |
0.2 |
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Loss on debt extinguishment |
17.7 |
– |
70.5 |
– |
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Income before income taxes |
22.3 |
87.8 |
20.2 |
472.5 |
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Provision for income taxes |
8.5 |
35.1 |
9.4 |
190.7 |
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Net income |
$13.8 |
$52.7 |
$10.8 |
$281.8 |
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Diluted earnings per share |
$0.09 |
$0.33 |
$0.07 |
$1.78 |
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Adjusted earnings per diluted share(1) |
$0.16 |
$0.22 |
$0.36 |
$0.35 |
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Weighted average number of diluted shares outstanding |
154.7 |
160.2 |
153.8 |
158.7 |
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Consolidated Summary Balance Sheet Information |
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(dollars in millions) |
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(unaudited) |
As of |
As of |
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June 26, 2008 |
Dec. 27, 2007 |
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Cash and cash equivalents |
$ |
223.8 |
$ |
435.2 |
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Total assets |
2,688.0 |
2,634.9 |
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Total debt |
2,029.8 |
1,965.5 |
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Stockholders’ deficit |
(213.7 |
) |
(119.3 |
) |
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Operating Data |
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(unaudited) |
Quarter Ended |
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June 26, 2008 |
June 28, 2007 |
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Theatres at period end |
551 |
529 |
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Screens at period end |
6,776 |
6,368 |
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Average screens per theatre |
12.3 |
12.0 |
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Attendance (in thousands) |
59,724 |
61,739 |
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Average ticket price |
$7.63 |
$7.42 |
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Average concessions per patron |
$3.16 |
$3.20 |
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Reconciliation of EBITDA to Net Cash Provided by (Used in) Operating Activities |
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(dollars in millions) |
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(unaudited) |
Quarter Ended |
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June 26, 2008 |
June 28, 2007 |
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EBITDA |
$102.2 |
$159.4 |
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Interest expense, net |
(30.0 |
) |
(25.5 |
) |
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Provision for income taxes |
(8.5 |
) |
(35.1 |
) |
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Deferred income taxes |
(27.6 |
) |
(2.0 |
) |
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Loss on debt extinguishment |
17.7 |
– |
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Changes in operating assets and liabilities |
25.3 |
(136.6 |
) |
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Gain on sale of Fandango interest |
– |
(28.3 |
) |
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Other items, net |
6.2 |
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1.4 |
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Net cash provided by (used in) operating activities |
$85.3 |
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($66.7 |
) |
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Reconciliation of EBITDA to Adjusted EBITDA |
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(dollars in millions) |
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(unaudited) |
Quarter Ended |
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June 26, 2008 |
June 28, 2007 |
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EBITDA |
$102.2 |
$159.4
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