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 2014
results.
Total revenues for the fourth quarter ended January 1, 2015 were
$799.1 million compared to total revenues of $739.9 million for the
fourth quarter ended December 26, 2013. Net income attributable to
controlling interest was $46.3 million in the fourth quarter of
2014 compared to $24.0 million in the fourth quarter of 2013.
Diluted earnings per share was $0.30 for the fourth quarter of 2014
compared to $0.15 during the fourth quarter of 2013. Adjusted
diluted earnings per share (1) was $0.30 for the fourth quarter of
2014 compared to $0.17 during the fourth quarter of 2013. Adjusted
EBITDA (3) was $163.5 million for the fourth quarter of 2014
compared to $125.8 million for the fourth quarter of 2013. Results
for the fourth fiscal quarter of 2014 and for fiscal 2014 were
significantly and positively impacted by the timing of our fiscal
calendar which consisted of a 14 week period in the fourth quarter
of 2014 compared to a 13 week period in the fourth quarter of 2013
and a 53 week period in 2014 compared to a 52 week period in 2013.
The additional week was the week between Christmas and New Year’s
Day, a traditionally high attendance week for the company and the
industry. Reconciliations of non-GAAP financial measures are
provided in the financial schedules accompanying this press
release.
“In 2014, we demonstrated our ability to deliver value to our
shareholders despite a challenging box office environment as our
strategic and operational execution helped generate total
shareholder return of over 20% for the third consecutive year,”
stated Amy Miles, CEO of Regal Entertainment Group. “Looking ahead,
we are encouraged by the industry box office results for the last
several weeks and optimistic about the potential for box office
success throughout 2015.”
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 13,
2015, to stockholders of record on March 3, 2015. 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 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 fourth quarter 2014 results on February 12, 2015 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 #13574245.
About Regal Entertainment Group
Regal Entertainment Group (NYSE: RGC) operates the largest and
most geographically diverse theatre circuit in the United States,
consisting of 7,367 screens in 574 theatres in 42 states along with
the District of Columbia, American Samoa, Guam and Saipan as of
January 1, 2015. 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 1/1/15 and 12/26/13
(in millions, except per share data)
(unaudited)
Quarter Ended Four Quarters Ended Jan. 1, 2015 Dec.
26, 2013 Jan. 1, 2015 Dec. 26, 2013 Revenues Admissions $
531.2 $ 503.6 $ 1,998.9 $ 2,059.6 Concessions 222.1 193.3 829.6
816.9 Other operating revenues 45.8 43.0 161.6 161.6 Total revenues
799.1 739.9 2,990.1 3,038.1 Operating expenses Film rental
and advertising costs 273.9 265.6 1,047.1 1,078.0 Cost of
concessions 30.8 25.7 111.1 111.6 Rent expense 108.0 103.7 423.4
413.6 Other operating expenses(4) 220.8 215.1 813.2 812.8 General
and administrative expenses (including share-based compensation of
$3.0 million and $2.3 million for the quarters ended January 1,
2015 and December 26, 2013, respectively, and $9.4 million and $9.3
million for the four quarters ended January 1, 2015 and December
26, 2013, respectively) 20.2 19.2 74.4 73.7 Depreciation and
amortization 52.9 51.2 207.2 200.2 Net loss on disposal and
impairment of operating assets and other 0.8 3.7 7.3 8.4 Income
from operations 91.7 55.7 306.4 339.8 Interest expense, net
32.5 34.8 126.5 141.3 Loss on extinguishment of debt ― ― 62.4 30.7
Earnings recognized from NCM (8.8 ) (12.9 ) (32.1 ) (37.5 ) Gain on
sale of NCM, Inc. common stock ― ― ― (30.9 ) Other, net (9.4 ) (5.0
) (29.0 ) (28.4 ) Income before income taxes 77.4 38.8 178.6 264.6
Provision for income taxes 31.1 14.8 73.4 107.0 Net income 46.3
24.0 105.2 157.6 Noncontrolling interest, net of tax ― ― 0.4 0.1
Net income attributable to controlling interest $ 46.3 $ 24.0 $
105.6 $ 157.7 Diluted earnings per share $ 0.30 $ 0.15 $
0.68 $ 1.01 Adjusted diluted earnings per share(1) $ 0.30 $ 0.17 $
0.95 $ 1.04
Weighted average number of diluted shares
outstanding(2)
156.5 155.9 156.3 155.7
Consolidated
Summary Balance Sheet Information
(dollars in millions)
(unaudited)
As of
Jan. 1, 2015
As of
Dec. 26, 2013
Cash and cash equivalents $ 147.1 $ 280.9 Total assets
2,539.5 2,704.7 Total debt 2,360.2 2,310.7 Total stockholders’
deficit of Regal Entertainment Group (894.8 ) (713.4 )
Operating Data
(unaudited)
Quarter Ended Four Quarters Ended Jan. 1, 2015 Dec.
26, 2013 Jan. 1, 2015 Dec. 26, 2013 Theatres at
period end 574 580 574 580 Screens at period end 7,367 7,394 7,367
7,394 Average screens per theatre 12.8 12.7 12.8 12.7 Attendance
(in thousands) 58,214 54,246 220,249 228,564 Average ticket price $
9.12 $ 9.28 $ 9.08 $ 9.01 Average concessions per patron $ 3.82 $
3.56 $ 3.77 $ 3.57
Reconciliation of EBITDA to Net
Cash Provided by Operating Activities
(dollars in millions)
(unaudited)
Quarter Ended Four Quarters Ended Jan. 1, 2015 Dec. 26, 2013
Jan. 1, 2015 Dec. 26, 2013 EBITDA $ 162.8 $ 124.8 $ 512.7 $
606.2 Interest expense, net (32.5 ) (34.8 ) (126.5 ) (141.3 )
Provision for income taxes (31.1 ) (14.8 ) (73.4 ) (107.0 )
Deferred income taxes 14.3 (18.1 ) 6.6 (11.8 ) Changes in operating
assets and liabilities 44.5 26.3 (42.9 ) (5.0 ) Gain on sale of
NCM, Inc. common stock ― ― ― (30.9 ) Loss on extinguishment of debt
― ― 62.4 30.7 Landlord contributions 5.9 3.5 8.8 3.5 Other items,
net 0.2 4.4 1.4 2.5 Net cash provided by operating activities $
164.1 $ 91.3 $ 349.1 $ 346.9
Reconciliation of
EBITDA to Adjusted EBITDA
(dollars in millions)
(unaudited)
Quarter Ended Four Quarters Ended Jan. 1, 2015 Dec. 26, 2013
Jan. 1, 2015 Dec. 26, 2013 EBITDA $ 162.8 $ 124.8 $ 512.7 $
606.2 Net loss on disposal and impairment of operating assets and
other 0.8 3.7 7.3 8.4 Share-based compensation expense 3.0 2.3 9.4
9.3 Gain on sale of NCM, Inc. common stock ― ― ― (30.9 ) Loss on
extinguishment of debt ― ― 62.4 30.7 Cash distribution from DCIP
investment 6.3 ― 6.3 ―
Noncontrolling interest, net of tax and
other, net(5)
(9.4 ) (5.0 )
(29.4
)
(28.5
) Adjusted EBITDA(3) $ 163.5 $ 125.8 $ 568.7 $ 595.2
Reconciliation of Net Cash Provided by Operating Activities to
Free Cash Flow
(dollars in millions)
(unaudited)
Quarter Ended Four Quarters Ended Jan. 1, 2015 Dec. 26, 2013
Jan. 1, 2015 Dec. 26, 2013 Net cash provided by operating
activities $ 164.1 $ 91.3 $ 349.1 $ 346.9 Capital expenditures
(60.0 ) (42.0 ) (156.8 ) (112.1 ) Proceeds from asset sales ― 0.6
1.7 7.3 Free cash flow(3) $ 104.1 $ 49.9 $ 194.0 $ 242.1
Reconciliation of Net Income Attributable
to Controlling Interest to Adjusted Diluted Earnings Per
Share
(dollars in millions, except per share
data)
(unaudited)
Quarter Ended Four Quarters Ended Jan. 1, 2015
Dec. 26, 2013 Jan. 1, 2015 Dec. 26, 2013 Net income
attributable to controlling interest $ 46.3 $ 24.0 $ 105.6 $ 157.7
Loss on extinguishment of debt, net of
related tax effects
― ― 39.2 19.4
Gain on sale of available for sale
securities, net of related tax effects
― ― (1.2 ) (1.6 )
Gain on sale of NCM, Inc. common stock,
net of related tax effects
― ― ― (18.5 )
Net loss on disposal and impairment of
operating assets and other, net of related tax effects
0.5 2.2 4.4 5.1
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 effects, gain on sale of NCM, Inc. common stock, net of
related tax effects, and net loss on disposal, impairment of
operating assets and other, net of related tax effects
$ 46.8 $ 26.2 $ 148.0 $ 162.1
Weighted average number of diluted shares
outstanding(2)
156.5 155.9 156.3 155.7 Adjusted diluted earnings per
share(1) $ 0.30 $ 0.17 $ 0.95 $ 1.04 Diluted earnings per share $
0.30 $ 0.15 $ 0.68 $ 1.01
______________________________
(1) 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 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. (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 and four
quarters ended January 1, 2015 and December 26, 2013. (3)
Adjusted EBITDA (earnings adjusted for 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, cash distribution from DCIP investment and
noncontrolling interest, net of tax and other, net) was
approximately $163.5 million for the quarter ended January 1, 2015.
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 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. (4) On July 10, 2014,
the State of New York approved a sales tax refund claim filed by
the Company to recover sales taxes paid on certain nontaxable
purchases made during the fiscal 2008 through fiscal 2012 periods.
The refund resulted in a reduction to other operating expenses of
$16.8 million during the third quarter of fiscal 2014. (5)
Includes equity in earnings attributable to the DCIP investment of
$8.8 million and $28.6 million for the quarter and four quarters
ended January 1, 2015, respectively and $8.5 million and $22.9
million for the quarter and four quarters ended December 26, 2013,
respectively.
Financial Contact:Kevin MeadRegal Entertainment GroupVice
President Investor Relations and
PlanningKevin.Mead@regalcinemas.com865-925-9685orMedia
Contact:Ken ThewesRegal Entertainment GroupSenior Vice
President and Chief Marketing Officer865-925-9539
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