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 2015
results.
Total revenues for the first quarter ended March 31, 2015 were
$691.3 million compared to total revenues of $726.9 million for the
first quarter ended March 27, 2014. Net income (loss) attributable
to controlling interest in the first quarter of 2015 was $23.1
million compared to $(1.2) million, which included a $32.6 million
after-tax loss on extinguishment of debt, in the first quarter of
2014. Diluted earnings (loss) per share was $0.15 for the first
quarter of 2015 compared to $(0.01) for the first quarter of 2014.
Adjusted diluted earnings per share(1) was $0.15 for the first
quarter of 2015 compared to $0.20 for the first quarter of 2014.
Adjusted EBITDA(4) was $128.1 million for the first quarter of 2015
and $144.2 million for the first quarter of 2014. Reconciliations
of non-GAAP financial measures are provided in the financial
schedules accompanying this press release.
Beginning January 2, 2015, Regal’s fiscal year changed from a
52-53 week fiscal year ending on the first Thursday after December
25 of each year to a fiscal year ending on December 31 of each
year. Accordingly, beginning in the current year, Regal’s quarterly
results will be for three month periods ending March 31, June 30,
September 30 and December 31. As a result of the calendar change,
the quarters ended March 31, 2015 and March 27, 2014 were comprised
of 89 and 91 days, respectively. Additionally, the comparison of
the first quarter results of 2015 to the first quarter results of
2014 was impacted by the timing of our 2014 fiscal calendar. The
first fiscal quarter of 2014 included six days from Christmas to
New Year’s Day, a traditionally high attendance period for the
Company and the industry, while the first quarter of 2015 did not
include any days during that period.
Regal’s Board of Directors also today declared a cash dividend
of $0.22 per Class A and Class B common share, payable on June 12,
2015, to stockholders of record on June 2, 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.
“A better than expected box office environment and our focus on
delivering a great customer experience helped us achieve solid
first quarter results, highlighted by a record concession per cap
and one of the highest first quarter revenue totals in our
history,” stated Amy Miles, CEO of Regal Entertainment Group. “With
a great first quarter box office already in the books and a
much-anticipated film slate set for the upcoming summer and holiday
seasons, we remain optimistic regarding the potential for box
office success throughout 2015.”
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 2014 Annual Report on Form
10-K filed with the Securities and Exchange Commission on March 2,
2015. 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 2015 results on April 30, 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 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 #13595840.
About Regal Entertainment Group:
Regal Entertainment Group (NYSE: RGC) operates the largest and
most geographically diverse theatre circuit in the United States,
consisting of 7,334 screens in 570 theatres in 42 states along with
Guam, Saipan, American Samoa and the District of Columbia as of
March 31, 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 website at
www.REGmovies.com.
Regal Entertainment Group
Consolidated Statements of Income (Loss) Information For
the Fiscal Quarters Ended 3/31/15 and 3/27/14
(in millions, except per share data)
(unaudited)
Quarter Ended March 31, 2015 March 27, 2014 Revenues
Admissions $ 454.1 $ 489.6 Concessions 198.2 200.7 Other operating
revenues 39.0 36.6 Total revenues 691.3 726.9 Operating
expenses Film rental and advertising costs 234.3 255.0 Cost of
concessions 26.0 26.3 Rent expense 103.7 104.6 Other operating
expenses 202.2 201.1 General and administrative expenses (including
share-based compensation of $1.7 million and $1.9 million for the
quarters ended March 31, 2015 and March 27, 2014, respectively)
18.6 18.6 Depreciation and amortization 54.2 51.4 Net (gain) loss
on disposal and impairment of operating assets and other 1.9 (0.4 )
Income from operations 50.4 70.3 Interest expense, net 30.0
34.3 Loss on extinguishment of debt ― 51.9 Earnings recognized from
NCM (8.8 ) (13.3 ) Other, net (9.1 ) (3.2 ) Income before income
taxes 38.3 0.6 Provision for income taxes 15.3 1.9 Net income
(loss) 23.0 (1.3 ) Noncontrolling interest, net of tax 0.1 0.1 Net
income (loss) attributable to controlling interest $ 23.1 $ (1.2 )
Diluted earnings (loss) per share $ 0.15 $ (0.01 ) Adjusted
diluted earnings per share(1) $ 0.15 $ 0.20
Weighted average number of diluted shares
outstanding(2)
156.6 155.3
Adjusted weighted average number of
diluted shares outstanding(3)
156.6 156.2
Consolidated Summary Balance Sheet
Information
(dollars in millions)
(unaudited)
As of
March 31, 2015
As of
Jan. 1, 2015
Cash and cash equivalents $ 172.4 $ 147.1 Total assets
2,484.4 2,539.5 Total debt 2,355.6 2,360.2 Total stockholders’
deficit of Regal Entertainment Group (908.9
)
(894.8 )
Operating Data
(unaudited)
Quarter Ended March 31, 2015 March 27, 2014 Theatres
at period end 570 578 Screens at period end 7,334 7,381 Average
screens per theatre 12.9 12.8 Attendance (in thousands) 50,605
55,136 Average ticket price $ 8.97 $ 8.88 Average
concessions per patron $ 3.92 $ 3.64
Reconciliation of EBITDA to Net Cash Provided by Operating
Activities
(dollars in millions)
(unaudited)
Quarter Ended March 31, 2015 March 27, 2014 EBITDA $
122.6 $ 86.4 Interest expense, net (30.0 ) (34.3 ) Provision for
income taxes (15.3 ) (1.9 ) Deferred income taxes (3.2 ) 0.1
Changes in operating assets and liabilities 11.5 16.7 Loss on
extinguishment of debt ― 51.9 Landlord contributions 10.9 1.0 Other
items, net 5.4 8.1 Net cash provided by operating activities $
101.9 $ 128.0
Reconciliation of EBITDA to Adjusted
EBITDA
(dollars in millions)
(unaudited)
Quarter Ended March 31, 2015 March 27, 2014 EBITDA $
122.6 $ 86.4 Net (gain) loss on disposal and impairment of
operating assets and other 1.9 (0.4 ) Share-based compensation
expense 1.7 1.9 Loss on extinguishment of debt ― 51.9 Earnings
recognized from NCM (8.8
)
(13.3 ) Cash distributions from NCM 19.9 21.0 Noncontrolling
interest, net of tax and other, net (9.2
)
(3.3 ) Adjusted EBITDA(4) $ 128.1 $ 144.2
Reconciliation of Net Cash Provided by Operating Activities to
Free Cash Flow
(dollars in millions)
(unaudited)
Quarter Ended March 31, 2015 March 27, 2014 Net cash
provided by operating activities $ 101.9 $ 128.0 Capital
expenditures (29.7
)
(29.1 ) Proceeds from asset sales ― 1.7 Free cash flow(4) $ 72.2 $
100.6
Reconciliation of Net Income (Loss)
Attributable to Controlling Interest to Adjusted Diluted
Earnings Per Share
(dollars in millions, except per share
data)
(unaudited)
Quarter Ended March 31, 2015 March 27, 2014 Net
income (loss) attributable to controlling interest $ 23.1 $ (1.2 )
Loss on extinguishment of debt, net of related tax effects ― 32.6
Gain on sale of available for sale
securities, net of related tax effects
― (0.4 )
Net (gain) loss on disposal and impairment
of operating
assets and other, net of related tax
effects
1.1 (0.2 )
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, and net (gain)
loss on disposal and impairment of
operating assets and other, net of related tax effects
$ 24.2 $ 30.8 Weighted average number of diluted shares
outstanding(2) 156.6 155.3 Weighted average effect of dilutive
securities ― 0.9 Adjusted weighted average number of diluted shares
outstanding(3) 156.6 156.2 Adjusted diluted earnings per
share(1) $ 0.15 $ 0.20 Diluted earnings (loss) per share $ 0.15 $
(0.01 )
___________________________________
(1) We have included adjusted
diluted earnings per share, which is diluted earnings (loss) 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, and net (gain) 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 (loss) per share for the quarters ended
March 31, 2015 and March 27, 2014. Since the Company reported a net
loss attributable to controlling interest of $1.2 million for the
quarter ended March 27, 2014, no common stock equivalents were
included as the effect would have been antidilutive. (3)
Represents the weighted average number of diluted shares
outstanding, after giving effect to common stock equivalents that
had a dilutive effect on the computation of adjusted earnings per
diluted share for the quarter ended March 27, 2014. (4)
Adjusted EBITDA (earnings adjusted for interest, taxes,
depreciation and amortization expense, net (gain) loss on disposal
and impairment of operating assets and other, share-based
compensation expense, loss on extinguishment of debt, earnings
recognized from NCM, cash distributions from NCM and noncontrolling
interest, net of tax and other, net) was approximately $128.1
million for the quarter ended March 31, 2015. In previous quarters,
earnings recognized from NCM have been included in Adjusted EBITDA.
However, we believe that including cash distributions of NCM in our
Adjusted EBITDA measure more accurately reflects our liquidity.
Accordingly, the Adjusted EBITDA computation for all periods
presented herein reflects such cash distributions received from
NCM. 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 2014 Annual
Report on Form 10-K filed with the Securities and Exchange
Commission on March 2, 2015. EBITDA, Adjusted EBITDA and Free Cash
Flow, as calculated, may not be comparable to similarly titled
measures reported by other companies.
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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