KNOXVILLE, Tenn.--(BUSINESS WIRE)--May. 1, 2012--
Regal Entertainment Group (NYSE: RGC), a leading motion picture
exhibitor owning and operating the largest theatre circuit in the United
States, today announced fiscal first quarter 2012 results.
Total revenues for the first quarter ended March 29, 2012 were $684.9
million compared to total revenues of $570.9 million for the first
quarter ended March 31, 2011. Net income (loss) attributable to
controlling interest was $46.3 million in the first quarter of 2012
compared to $(23.6) million in the first quarter of 2011. Diluted
earnings (loss) per share was $0.30 for the first quarter of 2012
compared to $(0.15) for the first quarter of 2011. Adjusted diluted
earnings (loss) per share(1) was $0.30 for the first quarter
of 2012 compared to $(0.04) for the first quarter of 2011. Adjusted
EBITDA(3) was $153.8 million for the first quarter of 2012
and $83.9 million for the first quarter of 2011. 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 15, 2012, to
stockholders of record on June 5, 2012. 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 that a strong film slate combined with our continued
focus on cost control allowed us to achieve our highest ever first
quarter Adjusted EBITDA and our highest Adjusted EBITDA margin for any
quarter in over seven years,” stated Amy Miles, CEO of Regal
Entertainment Group. "We are excited about the upcoming summer movie
season that kicks off with Marvel’s The Avengers and remain
optimistic about the potential for box office success for the remainder
of 2012,” continued Miles.
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 2011 Annual Report on Form 10-K filed with the Securities
and Exchange Commission on February 27, 2012. 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 2012 results on May
1, 2012 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 account #286 and conference call ID #382610.
About Regal Entertainment Group:
Regal Entertainment Group
(NYSE: RGC) is the largest motion picture exhibitor in the United
States. The Company's theatre circuit, comprising Regal Cinemas, United
Artists Theatres and Edwards Theatres, operates 6,587 screens in 523
locations in 37 states and the District of Columbia. Regal operates
theatres in 43 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 (Loss) Information
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For the Fiscal Quarters Ended 3/29/12 and 3/31/11
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(in millions, except per share data)
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(unaudited)
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Quarter Ended
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March 29, 2012
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March 31, 2011
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Revenues
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Admissions
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$
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474.1
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$
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394.4
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Concessions
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180.0
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151.3
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Other operating revenues
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30.8
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25.2
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Total revenues
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684.9
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570.9
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Operating expenses
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Film rental and advertising costs
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236.8
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196.2
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Cost of concessions
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23.7
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20.5
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Rent expense
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94.1
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93.7
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Other operating expenses
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176.8
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175.3
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General and administrative expenses (including share-based
compensation of $2.3 million and $1.9 million for the quarters ended
March 29, 2012 and March 31, 2011, respectively)
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15.8
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16.8
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Depreciation and amortization
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46.9
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52.0
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Net loss on disposal and impairment of operating assets
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—
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6.7
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Income from operations
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90.8
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9.7
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Interest expense, net
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36.0
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39.0
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Earnings recognized from NCM
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(13.8
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(13.6
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Loss on extinguishment of debt
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—
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21.9
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Other, net
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(2.9
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)
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0.4
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Income (loss) before income taxes
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71.5
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(38.0
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Provision for (benefit from) income taxes
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25.2
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(14.3
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)
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Net income (loss)
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46.3
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(23.7
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Noncontrolling interest, net of tax
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—
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0.1
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Net income (loss) attributable to controlling interest
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$
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46.3
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$
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(23.6
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)
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Diluted earnings (loss) per share
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$
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0.30
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$
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(0.15
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)
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Adjusted diluted earnings (loss) per share(1)
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$
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0.30
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$
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(0.04
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)
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Weighted average number of diluted shares outstanding(2)
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154.8
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153.6
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Consolidated Summary Balance Sheet Information
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(dollars in millions)
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(unaudited)
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As of
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As of
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March 29, 2012
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Dec. 29, 2011
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Cash and cash equivalents
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$
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316.2
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$
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253.0
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Total assets
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2,307.0
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2,341.3
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Total debt
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2,010.1
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2,016.3
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Total stockholders’ deficit of Regal Entertainment Group
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(550.9
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(570.9
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Operating Data
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(unaudited)
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Quarter Ended
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March 29, 2012
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March 31, 2011
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Theatres at period end
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523
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535
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Screens at period end
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6,587
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6,670
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Average screens per theatre
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12.6
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12.5
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Attendance (in thousands)
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53,721
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46,266
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Average ticket price
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$
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8.83
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$
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8.52
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Average concessions per patron
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$
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3.35
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$
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3.27
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Reconciliation of EBITDA to Net Cash Provided by Operating
Activities
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(dollars in millions)
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(unaudited)
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Quarter Ended
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March 29, 2012
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March 31, 2011
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EBITDA
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$
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154.4
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$
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53.1
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Interest expense, net
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(36.0
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(39.0
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(Provision for) benefit from income taxes
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(25.2
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14.3
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Deferred income taxes
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7.7
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(12.9
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Changes in operating assets and liabilities
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11.7
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(9.5
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Loss on extinguishment of debt
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—
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21.9
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Other items, net
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4.9
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14.3
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Net cash provided by operating activities
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$
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117.5
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$
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42.2
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Reconciliation of EBITDA to Adjusted EBITDA
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(dollars in millions)
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(unaudited)
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Quarter Ended
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March 29, 2012
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March 31, 2011
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EBITDA
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$
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154.4
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$
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53.1
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Net loss on disposal and impairment of operating assets
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—
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6.7
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Share-based compensation expense
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2.3
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1.9
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Loss on extinguishment of debt
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—
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21.9
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Noncontrolling interest, net of tax and other, net
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(2.9
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0.3
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Adjusted EBITDA(3)
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$
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153.8
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$
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83.9
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Reconciliation of Net Cash Provided by Operating Activities to
Free Cash Flow
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(dollars in millions)
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(unaudited)
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Quarter Ended
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March 29, 2012
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March 31, 2011
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Net cash provided by operating activities
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$
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117.5
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$
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42.2
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Capital expenditures
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(10.9
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(21.0
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Proceeds from asset sales
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0.1
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1.4
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Free cash flow(3)
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$
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106.7
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$
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22.6
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Reconciliation of Net Income (Loss) Attributable to Controlling
Interest to Adjusted
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Diluted Earnings (Loss) Per Share
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(dollars in millions, except per share data)
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(unaudited)
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Quarter Ended
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March 29, 2012
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March 31, 2011
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Net income (loss) attributable to controlling interest
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$
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46.3
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$
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(23.6
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Loss on extinguishment of debt, net of related tax effects
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—
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13.6
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Net loss on disposal and impairment of operating
assets, net of related tax effects
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—
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4.1
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Net income (loss) attributable to controlling interest, excluding
loss on extinguishment of debt, net of related tax effects, and
net loss on disposal and impairment of operating assets, net of
related tax effects
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$
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46.3
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$
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(5.9
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Weighted average number of diluted shares outstanding(2)
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154.8
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153.6
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Adjusted diluted earnings (loss) per share(1)
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$
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0.30
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$
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(0.04
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)
|
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Diluted earnings (loss) per share
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$
|
0.30
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$
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(0.15
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(1)
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We have included adjusted diluted earnings (loss) per share, which
is diluted earnings (loss) per share excluding loss on
extinguishment of debt, 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.
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(2)
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Represents reported weighted average number of diluted shares
outstanding for purposes of computing diluted earnings (loss) per
share and adjusted diluted earnings (loss) per share for the
quarters ended March 29, 2012 and March 31, 2011. Since the Company
reported a net loss attributable to controlling interest of $23.6
million and a net loss attributable to controlling interest,
excluding loss on extinguishment of debt, net of related tax effects
and net loss on disposal and impairment of operating assets, net of
related tax effects of $5.9 million for the quarter ended March 31,
2011, no common stock equivalents were included as the effect would
have been antidilutive.
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(3)
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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 $153.8 million for the quarter ended
March 29, 2012. 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 2011 Annual Report on Form 10-K filed with the Securities
and Exchange Commission on February 27, 2012. EBITDA, Adjusted
EBITDA and Free Cash Flow, as calculated, may not be comparable to
similarly titled measures reported by other companies.
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Source: Regal Entertainment Group
Financial Contact:
Kevin Mead
Regal Entertainment Group
Vice
President – Investor Relations and Planning
Kevin.Mead@regalcinemas.com
865-925-9685
or
Media
Contact:
Dick Westerling
Regal Entertainment Group
Senior
Vice President – Marketing
865-925-9539
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