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 2015
results.
Total revenues for the second quarter ended June 30, 2015 were
$862.8 million compared to total revenues of $770.3 million for the
second quarter ended June 26, 2014. Net income attributable to
controlling interest in the second quarter of 2015 was $53.4
million, which included a $3.6 million after-tax loss on
extinguishment of debt, compared to $33.8 million in the second
quarter of 2014, which included a $6.6 million after-tax loss on
extinguishment of debt. Diluted earnings per share was $0.34 for
the second quarter of 2015 compared to $0.22 for the second quarter
of 2014. Adjusted diluted earnings per share(1) was $0.38 for the
second quarter of 2015 compared to $0.27 for the second quarter of
2014. Adjusted EBITDA(3) was $177.3 million for the second quarter
of 2015 and $145.4 million for the second quarter of 2014.
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 $0.22 per Class A and Class B common share, payable on September
15, 2015, to stockholders of record on September 4, 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.
“We are pleased to report that a healthy second quarter box
office environment combined with the impact of our recent
investments in luxury amenities enabled us to achieve all-time
quarterly records in average ticket price, average concessions per
patron and total revenues, and near-record adjusted EBITDA,” stated
Amy Miles, CEO of Regal Entertainment Group. “We are also
encouraged by the early third quarter box office results and remain
optimistic about the prospects for the remainder of the year.”
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 second quarter 2015 results on
July 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 #
13595835.
About Regal Entertainment GroupRegal Entertainment Group
(NYSE: RGC) operates the largest and most geographically diverse
theatre circuit in the United States and, as of June 30, 2015,
operates 7,324 screens in 569 theatres throughout 42 states along
with the District of Columbia, American Samoa, Guam and Saipan. 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 moviegoing 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
Information
For the Fiscal Quarters and Two
Quarters Ended 6/30/15 and 6/26/14
(in millions, except per share data)
(unaudited)
Quarter Ended Two Quarters Ended
June 30, 2015 June 26, 2014
June 30, 2015
June 26, 2014
Revenues Admissions $ 568.6 $ 517.0 $ 1,022.7
$ 1,006.6 Concessions 247.7 212.3 445.9 413.0 Other
operating revenues 46.5 41.0 85.5 77.6
Total revenues 862.8 770.3 1,554.1 1,497.2 Operating
expenses Film rental and advertising costs 314.7 273.5 549.0 528.5
Cost of concessions 34.4 28.3 60.4 54.6 Rent expense 106.6 106.3
210.3 210.9 Other operating expenses 214.7 203.1 416.9 404.2
General and administrative expenses (including share-based
compensation of $2.2 and $2.3 for the quarters ended June 30, 2015
and June 26, 2014, respectively, and $3.9 and $4.2 for the two
quarters ended June 30, 2015 and June 26, 2014, respectively) 19.3
18.3 37.9 36.9 Depreciation and amortization 54.0 51.0 108.2 102.4
Net loss on disposal and impairment of operating assets and other
4.0 4.0 5.9 3.6 Income from operations
115.1 85.8 165.5 156.1 Interest expense, net 33.2 30.4 63.2
64.7 Loss on extinguishment of debt 5.7 10.5 5.7 62.4 Earnings
recognized from NCM (3.4 ) (3.5 ) (12.2 ) (16.8 ) Other, net (7.9 )
(7.8 ) (17.0 ) (11.0 ) Income before income taxes 87.5 56.2 125.8
56.8 Provision for income taxes 34.2 22.4 49.5
24.3 Net income 53.3 33.8 76.3 32.5 Noncontrolling interest,
net of tax 0.1 ― 0.2 0.1 Net income
attributable to controlling interest $ 53.4 $
33.8 $ 76.5 $ 32.6
Diluted earnings per share $ 0.34 $ 0.22 $ 0.49 $ 0.21 Adjusted
diluted earnings per share(1) $ 0.38 $ 0.27 $ 0.53 $ 0.47
Weighted average number of diluted shares
outstanding(2)
156.4 156.2 156.5 156.2
Consolidated Summary Balance Sheet
Information
(dollars in millions)
(unaudited)
As ofJune 30, 2015
As ofJanuary 1, 2015
Cash and cash equivalents $ 267.7 $ 147.1 Total
assets 2,590.9 2,539.5 Total debt 2,355.8 2,360.2 Total
stockholders’ deficit of Regal Entertainment Group (891.0 ) (894.8
)
Operating Data
(unaudited)
Quarter Ended Two Quarters Ended
June 30, 2015 June 26, 2014 June 30, 2015
June 26, 2014 Theatres at period end 569 574 569 574
Screens at period end 7,324 7,349 7,324 7,349 Average screens per
theatre 12.9 12.8 12.9 12.8 Attendance (in thousands) 59,078 56,085
109,683 111,221 Average ticket price $ 9.62 $ 9.22 $ 9.32 $ 9.05
Average concessions per patron $ 4.19 $ 3.79 $ 4.07 $ 3.71
Reconciliation of EBITDA to Net Cash
Provided by Operating Activities
(dollars in millions)
(unaudited)
Quarter Ended Two Quarters Ended
June 30, 2015 June 26, 2014 June 30, 2015
June 26, 2014 EBITDA $ 174.8 $
137.6 $ 297.4 $ 224.0 Interest expense, net (33.2 ) (30.4 ) (63.2 )
(64.7 ) Provision for income taxes (34.2 ) (22.4 ) (49.5 ) (24.3 )
Deferred income taxes (9.6 ) (0.6 ) (12.8 ) (0.5 ) Changes in
operating assets and liabilities 84.3 (7.6 ) 95.8 9.1 Loss on
extinguishment of debt 5.7 10.5 5.7 62.4 Landlord contributions 3.2
0.7 14.1 1.7 Other items, net (3.3 ) (2.9 ) 2.1 5.2
Net cash provided by operating activities $ 187.7 $
84.9 $ 289.6 $ 212.9
Reconciliation of EBITDA to Adjusted
EBITDA
(dollars in millions)
(unaudited)
Quarter Ended Two Quarters Ended
June 30, 2015 June 26, 2014 June 30, 2015
June 26, 2014 EBITDA $ 174.8 $
137.6 $ 297.4 $ 224.0 Net loss on disposal and impairment of
operating assets and other 4.0 4.0 5.9 3.6 Share-based compensation
expense 2.2 2.3 3.9 4.2 Loss on extinguishment of debt 5.7 10.5 5.7
62.4 Earnings recognized from NCM (3.4) (3.5) (12.2) (16.8) Cash
distributions from NCM ― 2.3 19.9 23.3 Cash distributions from DCIP
2.0 ― 2.0 ― Noncontrolling interest, net of tax and other, net
(8.0) (7.8) (17.2) (11.1) Adjusted EBITDA(3) $ 177.3 $
145.4 $ 305.4 $ 289.6
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow
(dollars in millions)
(unaudited)
Quarter Ended Two Quarters Ended
June 30, 2015 June 26, 2014 June 30, 2015
June 26, 2014 Net cash provided
by operating activities $ 187.7 $ 84.9 $ 289.6 $ 212.9 Capital
expenditures (41.4 ) (28.4 ) (71.1 ) (57.5 ) Proceeds from asset
sales ― ― ― 1.7 Free cash flow(3) $ 146.3 $
56.5 $ 218.5 $ 157.1
Reconciliation of Net Income
Attributable to Controlling Interest to Adjusted Diluted Earnings
Per Share
(dollars in millions, except per share
data)
(unaudited)
Quarter Ended Two Quarters Ended
June 30, 2015 June 26, 2014 June 30, 2015
June 26, 2014 Net income attributable to controlling
interest $ 53.4 $ 33.8 $ 76.5 $ 32.6
Loss on extinguishment of debt, net of
related tax effects
3.6 6.6 3.6 39.2 Gain on sale of available for sale
securities, net of related tax effects ― (0.8 ) ― (1.2 ) Net loss
on disposal and impairment of operating assets and other, net of
related tax effects 2.5 2.4 3.6 2.2
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 loss on disposal and impairment of
operating assets and other, net of related tax effects
$ 59.5 $ 42.0 $ 83.7 $ 72.8
Weighted average number of diluted shares
outstanding(2)
156.4 156.2 156.5 156.2 Adjusted diluted earnings per share(1) $
0.38 $ 0.27 $ 0.53 $ 0.47 Diluted earnings per share $ 0.34 $ 0.22
$ 0.49 $ 0.21
(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, 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 two
quarters ended June 30, 2015 and June 26, 2014.
(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, loss on extinguishment of debt, earnings recognized from
NCM, cash distributions from NCM, cash distributions from DCIP and
noncontrolling interest, net of tax and other, net) was
approximately $177.3 million for the quarter ended June 30, 2015.
Prior to 2015, earnings recognized from NCM were 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150730006588/en/
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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