Message #22 From:
NewsBot Date: October 26, 2006 03:00:00 AM
RGC News Regal Entertainment Group Reports Results for Third Quarter 2006 and Declares Quarterly Dividend
KNOXVILLE, Tenn.--(BUSINESS WIRE)--Regal Entertainment Group (NYSE:RGC), a leading motion picture exhibitor
owning and operating the largest theatre circuit in the United States,
today announced fiscal third quarter 2006 results and declared a cash
dividend of $0.30 per common share.
Total revenue for the quarter ended September 28, 2006 was $675.7
million, a 7.5% increase from total revenue of $628.4 million for the
third fiscal quarter of 2005. Net income was $29.3 million in the third
quarter of 2006 compared to net income of $17.2 million in the same
period of 2005. Adjusted earnings per diluted share(1)
was $0.20 for the third quarter of 2006 compared to $0.11 during the
third quarter of 2005. Adjusted EBITDA(2) of
$138.0 million for the third quarter of 2006 increased 14.1% from the
comparable quarter in 2005 and represented an Adjusted EBITDA margin of
approximately 20.4%. 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 $0.30 per Class A and Class B common share, payable
on December 19, 2006, to stockholders of record on December 11, 2006.
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.
“Regal Entertainment Group is pleased to
report another quarter of solid financial results,”
stated Mike Campbell, CEO of Regal Entertainment Group. “We
reported growth in total revenues, adjusted EBITDA and net income as we
benefited from a strong summer film slate,”
Campbell continued.
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 2005 Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 14, 2006. 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 third quarter 2006 results on October 26, 2006 at 9:30 a.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 #213771. In addition, this
press release and other pertinent statistical and financial information
are available in the investor relations section of the Company's Web
site: www.REGmovies.com.
About Regal Entertainment Group
Regal Entertainment Group (NYSE: RGC) is the largest motion picture
exhibitor in the world. The Company's theatre circuit, comprising Regal
Cinemas, United Artists Theatres and Edwards Theatres, operates 6,386
screens in 539 locations in 40 states and the District of Columbia.
Regal operates approximately 18% of all indoor screens in the United
States including theatres in 43 of the top 50 U.S. markets and growing
suburban 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 and,
through its investment in National CineMedia, LLC, further realize
cinema advertising, marketing and other revenue enhancing opportunities
by utilizing Regal's existing asset base.
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 Three Quarters Ended 9/28/06 and
9/29/05
(in millions, except per share data)
(unaudited)
Quarter
Quarter
Three Quarters
Three Quarters
Ended
Ended
Ended
Ended
Sept. 28, 2006
Sept. 29, 2005
Sept. 28, 2006
Sept. 29, 2005
Revenues
Admissions
$450.6
$416.2
$1,295.1
$1,224.7
Concessions
181.0
164.7
524.8
485.9
Other operating revenues
44.1
47.5
125.5
137.9
Total revenues
675.7
628.4
1,945.4
1,848.5
Operating expenses
Film rental and advertising costs
241.1
218.5
682.7
651.6
Cost of concessions
27.7
24.0
80.6
71.4
Rent expense
81.0
78.3
238.4
229.6
Other operating expenses
174.0
172.8
501.2
501.4
General and administrative expenses (including share-based
compensation expense of $2.2 million and $1.5 million for the
quarters ended September 28, 2006 and September 29 2005 and $6.3
million and $4.3 million for the three quarters ended September
28, 2006 and September 29, 2005, respectively)
16.7
16.1
49.7
50.8
Depreciation and amortization
49.1
51.0
149.5
148.1
Net loss on disposal and impairment of operating assets
2.0
7.6
12.8
11.8
Joint venture equity including former employee compensation
0.6
1.8
7.3
4.3
Income from operations
83.5
58.3
223.2
179.5
Interest expense, net
31.7
29.4
92.2
85.6
Minority interest in earnings of consolidated subsidiaries
(0.1)
(0.1)
-
(0.2)
Loss on debt extinguishment
3.1
-
35.6
-
Income before income taxes
48.8
29.0
95.4
94.1
Provision for income taxes
19.5
11.8
38.3
37.4
Net income
$29.3
$17.2
$57.1
$56.7
Diluted earnings per share
$0.19
$0.11
$0.37
$0.37
Adjusted earnings per diluted share(1)
$0.20
$0.11
$0.51
$0.37
Weighted average number of diluted shares outstanding
154.5
154.1
155.0
154.2
Consolidated Summary Balance Sheet Information
(dollars in millions)
(unaudited)
As of
As of
Sept. 28, 2006
December 29, 2005
Cash and cash equivalents
$80.0
$196.3
Total assets
2,358.8
2,532.8
Total debt
1,956.9
1,984.5
Stockholders' equity (deficit)
(14.2)
29.9
Operating Data
(unaudited)
Quarter Ended
Sept. 28, 2006
Sept. 29, 2005
Theatres at period end
539
568
Screens at period end
6,386
6,537
Average screens per theatre
11.8
11.5
Attendance (in thousands)
63,900
60,614
Average ticket price
$7.05
$6.87
Average concessions per patron
$2.83
$2.72
Reconciliation of Net Income to EBITDA to Net Cash Provided by Operating
Activities
(dollars in millions)
Four Quarters Ended
(unaudited)
Quarter Ended
Sept. 28, 2006
Sept. 29, 2005
Sept. 28, 2006
Net income
$29.3
$17.2
$92.2
Interest expense, net
31.7
29.4
123.9
Provision for income taxes
19.5
11.8
61.6
Depreciation and amortization
49.1
51.0
200.7
EBITDA
129.6
109.4
478.4
Interest expense, net
(31.7)
(29.4)
(123.9)
Provision for income taxes
(19.5)
(11.8)
(61.6)
Deferred income taxes
(5.3)
(3.0)
(18.8)
Loss on debt extinguishment
3.1
-
35.6
Changes in operating assets and liabilities
(60.6)
4.0
(3.4)
Other items, net
4.7
10.8
29.2
Net cash provided by operating activities
$20.3
$80.0
$335.5
Reconciliation of EBITDA to Adjusted EBITDA (dollars
in millions) (unaudited)
Four
Quarter Ended
Quarters Ended
Sept. 28, 2006
Sept. 29, 2005
Sept. 28, 2006
EBITDA
$129.6
$109.4
$478.4
Loss on disposal and impairment of operating assets
