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

KNOXVILLE, Tenn.--(BUSINESS WIRE)-- Regal Entertainment Group (NYS: 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 (NYS: 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 $2.3 million for the quarters ended March 28, 2013 and March 29, 2012) 18.0 15.8
Depreciation and amortization 47.2 46.9
Net gain on disposal and impairment of operating assets (2.6 )
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 interest $ 22.5 $ 46.3
 
Diluted earnings per share $ 0.14 $ 0.30
Adjusted diluted earnings per share(1) $ 0.13 $ 0.30

Weighted average number of diluted shares outstanding(2)

155.5 154.8
 
 
 

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

 
  As of

March 28, 2013

  As of

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 Entertainment Group (704.2 ) (696.8 )
 
 
 

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 liabilities 43.5 11.7
Other items, net (0.8 ) 4.9
Net cash provided by operating activities $ 110.9 $ 117.5
 
 
 

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 operating assets (2.6 )
Share-based compensation expense 2.3 2.3
Noncontrolling interest, net of tax and other, net (5.6 ) (2.9 )
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 activities $ 110.9 $ 117.5
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 interest $ 22.5 $ 46.3

Net gain on disposal and impairment of operating assets, net of related tax effects

(1.6 )

Net income attributable to controlling interest, excluding net gain on disposal and impairment of operating assets, net of related tax effects

$ 20.9 $ 46.3
 
Weighted average number of diluted shares outstanding(2) 155.5 154.8
 
Adjusted diluted earnings per share(1) $ 0.13 $ 0.30
Diluted earnings per share $ 0.14 $ 0.30

______________________

 

   

(1)

  We have included adjusted diluted earnings per share, which is diluted earnings per share excluding net gain 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.
 

 

(2)

Represents reported weighted average number of diluted shares 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.
 

 

(3)

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 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.
 
 



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

KEYWORDS:   United States  North America  Tennessee

INDUSTRY KEYWORDS:

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