Regal Entertainment Group (NYSE: RGC), a leading motion picture
exhibitor, today announced first quarter 2016 results.
Total revenues for the first quarter ended March 31, 2016 were
$787.1 million compared to total revenues of $691.3 million for the
first quarter ended March 31, 2015. Net income attributable to
controlling interest in the first quarter of 2016 was $40.7 million
compared to $23.1 million for the first quarter of 2015. Diluted
earnings per share was $0.26 for the first quarter of 2016 compared
to $0.15 for the first quarter of 2015. Adjusted diluted earnings
per share(1) was $0.27 for the first quarter of 2016 compared to
$0.15 for the first quarter of 2015. Adjusted EBITDA(4) was $164.2
million for the first quarter of 2016 and $128.1 million for the
first quarter of 2015. 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 June 16,
2016, to stockholders of record on June 6, 2016. 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.
“On the heels of a record breaking 2015, we are pleased to
report that 2016 is off to a tremendous start. A healthy box office
environment and our focus on delivering a great customer experience
enabled us to achieve Adjusted EBITDA of over $164 million – a
first quarter record and one of the highest quarterly totals in our
history,” stated Amy Miles, CEO of Regal Entertainment Group. “With
a great first quarter already in the books and an exciting film
slate set for the upcoming summer and holiday seasons, we are
optimistic regarding box office 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 2015 Annual Report on Form
10-K filed with the Securities and Exchange Commission on February
29, 2016. 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 2016 results on April 28, 2016 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 #13625450.
About Regal Entertainment Group:
Regal Entertainment Group (NYSE: RGC) operates one of the
largest and most geographically diverse theatre circuits in the
United States, consisting of 7,329 screens in 567 theatres in 42
states along with Guam, Saipan, American Samoa and the District of
Columbia as of March 31, 2016. 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 GroupConsolidated
Statements of Income InformationFor the Fiscal Quarters
Ended 3/31/16 and 3/31/15(in millions, except per share
data)(unaudited)
Quarter Ended March 31, 2016
March 31, 2015 Revenues Admissions $ 515.7 $ 454.1
Concessions 230.1 198.2 Other operating revenues 41.3 39.0
Total revenues 787.1 691.3 Operating expenses Film
rental and advertising costs 277.5 234.3 Cost of concessions 28.8
26.0 Rent expense 107.5 103.7 Other operating expenses 211.5 202.2
General and administrative expenses (including share-based
compensation of $1.8 million and $1.7 million for the quarters
ended March 31, 2016 and March 31, 2015, respectively) 21.2 18.6
Depreciation and amortization 55.7 54.2 Net loss on disposal and
impairment of operating assets and other 4.3 1.9
Income from operations 80.6 50.4 Interest expense, net 32.5
30.0 Earnings recognized from NCM (12.3 ) (8.8 ) Equity in income
of non-consolidated entities and other, net (10.0 ) (9.1 ) Income
before income taxes 70.4 38.3 Provision for income taxes 29.7
15.3 Net income 40.7 23.0 Noncontrolling interest,
net of tax ― 0.1 Net income attributable to controlling
interest $ 40.7 $ 23.1 Diluted earnings per
share $ 0.26 $ 0.15 Adjusted diluted earnings per share(1) $ 0.27 $
0.15 Weighted average number of diluted shares outstanding(2) 156.8
156.6
Consolidated Summary Balance Sheet
Information(dollars in millions)(unaudited)
As of
March 31, 2016
As of
Dec. 31, 2015
Cash and cash equivalents $ 328.0 $ 219.6 Total assets(3)
2,591.3 2,601.6 Total debt obligations 2,343.9 2,342.4 Total
stockholders’ deficit of Regal Entertainment Group (873.7 ) (877.8
)
Operating Data(unaudited)
Quarter Ended March 31, 2016
March 31, 2015 Theatres at period end 567 570
Screens at period end 7,329 7,334 Average screens per theatre 12.9
12.9 Attendance (in thousands) 53,297 50,605 Average ticket price $
9.68 $ 8.97 Average concessions per patron $ 4.32 $ 3.92
Reconciliation of EBITDA to Net Cash
Provided by Operating Activities(dollars in
millions)(unaudited)
Quarter Ended March 31, 2016
March 31, 2015 EBITDA(4) $ 158.6 $ 122.6 Interest
expense, net (32.5 ) (30.0 ) Provision for income taxes (29.7 )
(15.3 ) Deferred income taxes (4.2 ) (3.2 ) Changes in operating
assets and liabilities 61.1 11.5 Landlord contributions 22.2 10.9
Other items, net 5.3 5.4 Net cash provided by
operating activities $ 180.8 $ 101.9
Reconciliation of EBITDA to Adjusted
EBITDA(dollars in millions)(unaudited)
Quarter Ended March 31, 2016
March 31, 2015 EBITDA(4) $ 158.6 $ 122.6 Net loss on
disposal and impairment of operating assets and other 4.3 1.9
Share-based compensation expense 1.8 1.7 Earnings recognized from
NCM (12.3 ) (8.8 ) Cash distributions from NCM 21.8 19.9
Noncontrolling interest, net of tax and equity in income of
non-consolidated entities and other, net (10.0 ) (9.2 ) Adjusted
EBITDA(4) $ 164.2 $ 128.1
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow(dollars in
millions)(unaudited)
Quarter Ended March 31, 2016
March 31, 2015 Net cash provided by operating
activities $ 180.8 $ 101.9 Capital expenditures (31.1 ) (29.7 )
Proceeds from asset sales 1.3 ― Free cash flow(4) $ 151.0
$ 72.2
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 31, 2016
March 31, 2015 Net income attributable to controlling
interest $ 40.7 $ 23.1 Gain on sale of available for sale
securities, net of related tax effects (0.6 ) ― Net loss on
disposal and impairment of operating
assets and other, net of related tax
effects
2.6 1.1
Net income attributable to controlling
interest, excluding 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
$ 42.7 $ 24.2 Weighted average number of diluted shares
outstanding(2) 156.8 156.6 Adjusted diluted earnings per
share(1) $ 0.27 $ 0.15 Diluted earnings per share $ 0.26 $ 0.15
___________________________
(1) We have included adjusted diluted earnings per share,
which is diluted earnings per share excluding 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
for the quarters ended March 31, 2016 and March 31, 2015. (3) In
April 2015, the FASB issued ASU 2015-03, Interest—Imputation of
Interest, which intends to simplify the presentation of debt
issuance costs. Prior to the issuance of ASU 2015-03, debt issuance
costs were reported on the balance sheet as assets and amortized as
interest expense. ASU 2015-03 requires that they be presented on
the balance sheet as a direct deduction from the carrying amount of
the related debt liability. The costs will continue to be amortized
to interest expense using the effective interest method. ASU
2015-03 is to be applied retrospectively and is effective for
annual periods and interim periods within those annual periods
beginning after December 15, 2015. The Company adopted this
guidance during the quarter ended March 31, 2016. Debt issuance
costs associated with long-term debt, net of accumulated
amortization, were $29.6 million and $30.7 million as of March 31,
2016 and December 31, 2015, respectively. The balance sheet as of
December 31, 2015 has been recast to reflect the reclassification
of debt issuances costs, net of accumulated amortization. (4)
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, earnings recognized from NCM, cash distributions from NCM
and noncontrolling interest, net of tax and equity in income of
non-consolidated entities and other, net) was approximately $164.2
million for the quarter ended March 31, 2016. 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 2015 Annual Report on
Form 10-K filed with the Securities and Exchange Commission on
February 29, 2016. 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/20160428006754/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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