Regal Entertainment Group Reports Results for Fourth Quarter 2012 and Declares Quarterly Dividend

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Regal Entertainment Group Reports Results for Fourth Quarter 2012 and Declares Quarterly Dividend

KNOXVILLE, Tenn.--(BUSINESS WIRE)-- Regal Entertainment Group (NYS: RGC) , a leading motion picture exhibitor owning and operating the largest theatre circuit in the United States, today announced fiscal fourth quarter 2012 results.

Total revenues for the fourth quarter ended December 27, 2012 were $723.1 million compared to total revenues of $613.9 million for the fourth quarter ended December 29, 2011. Net income attributable to controlling interest was $37.3 million in the fourth quarter of 2012 compared to $4.1 million in the fourth quarter of 2011. Diluted earnings per share was $0.24 for the fourth quarter of 2012 compared to $0.03 during the fourth quarter of 2011. Adjusted diluted earnings per share(1) was $0.28 for the fourth quarter of 2012 compared to $0.10 during the fourth quarter of 2011. Adjusted EBITDA(3) was $152.3 million for the fourth quarter of 2012 and $99.4 million for the fourth quarter of 2011. 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 $0.21 per Class A and Class B common share, payable on March 15, 2013, to stockholders of record on March 5, 2013. 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 2012 was a record year for Regal. We achieved our highest ever Adjusted EBITDA totaling almost $580 million and our highest Adjusted EBITDA margin in the last six years. Additionally, our accretive acquisition of the Great Escape theatre circuit combined with the $1 special dividend declared and paid in the fourth quarter clearly demonstrate our commitment to creating value for our shareholders," stated Amy Miles, CEO of Regal Entertainment Group. "Looking ahead, we are encouraged by the early 2013 box office results and the films scheduled for release in the coming months," Miles 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 2011 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2012. 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 2012 results on February 7, 2013 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 account #286 and conference call ID #382614.

About Regal Entertainment Group:
Regal Entertainment Group (NYS: RGC) is the largest motion picture exhibitor in the United States. The Company's theatre circuit, comprising Regal Cinemas, United Artists Theatres and Edwards Theatres, operates 6,880 screens in 540 locations in 38 states and the District of Columbia. Regal operates theatres in 43 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 12/27/12 and 12/29/11

(in millions, except per share data)

(unaudited)

  
Quarter EndedFour Quarters Ended
Dec. 27, 2012 Dec. 29, 2011Dec. 27, 2012 Dec. 29, 2011
Revenues
Admissions$485.3$414.0$1,925.1$1,842.6
Concessions188.5159.3748.4708.0
Other operating revenues49.340.6150.7131.1
Total revenues723.1613.92,824.22,681.7
 
Operating expenses
Film rental and advertising costs250.8210.91,000.5953.7
Cost of concessions25.921.9101.196.6
Rent expense99.195.5384.4381.5
Other operating expenses189.9183.4735.9744.4

General and administrative expenses (including share-
   based compensation of $3.3 million and $1.6
   million for the quarters ended December 27, 2012
   and December 29, 2011, respectively, and $10.3
   million and $7.9 million for the four quarters ended
   December 27, 2012 and December 29, 2011,
   respectively)

20.116.168.865.8
Depreciation and amortization45.547.8183.1197.6

Net loss on disposal and impairment of operating
   assets and other

9.84.716.220.8
Income from operations82.033.6334.2221.3
 
Interest expense, net32.235.9135.0149.7
Earnings recognized from NCM(11.7)(11.7)(34.8)(37.9)
Impairment of RealD, Inc. investment13.913.9
Loss on extinguishment of debt21.9
Other, net(1.1)(1.6)(1.9)15.9
Income (loss) before income taxes62.6(2.9)235.957.8
Provision for (benefit from) income taxes25.3(6.9)91.217.7
Net income37.34.0144.740.1
Noncontrolling interest, net of tax0.10.10.2
Net income attributable to controlling interest$37.3$4.1$144.8$40.3
 
Diluted earnings per share$0.24$0.03$0.93$0.26
Adjusted diluted earnings per share(1)$0.28$0.10$1.00$0.48

Weighted average number of diluted shares
   outstanding(2)

155.3154.7155.0154.6
 

Consolidated Summary Balance Sheet Information

(dollars in millions)

  

(unaudited)

 
As ofAs of
Dec. 27, 2012Dec. 29, 2011
 
Cash and cash equivalents$109.5$253.0
Total assets2,209.52,341.3
Total debt1,995.22,016.3
Total stockholders' deficit of Regal Entertainment Group(696.8)(570.9)
 

Operating Data

  

(unaudited)

 
Quarter EndedFour Quarters Ended
Dec. 27, 2012 Dec. 29, 2011Dec. 27, 2012 Dec. 29, 2011
 
Theatres at period end540527540527
Screens at period end6,8806,6146,8806,614
Average screens per theatre12.712.612.712.6
Attendance (in thousands)54,76247,682216,365211,946
Average ticket price$8.86$8.68$8.90$8.69
Average concessions per patron$3.44$3.34$3.46$3.34
 

Reconciliation of EBITDA to Net Cash Provided by Operating Activities

(dollars in millions)

(unaudited)

 
Quarter EndedFour Quarters Ended
Dec. 27, 2012Dec. 29, 2011Dec. 27, 2012Dec. 29, 2011
 
EBITDA$140.3$80.9$554.1$405.3
Interest expense, net(32.2)(35.9)(135.0

)

 

(149.7)
(Provision for) benefit from income taxes(25.3)6.9(91.2

)

 

(17.7)
Deferred income taxes22.614.652.441.3
Changes in operating assets and liabilities43.844.7(70.8

)

 

(19.4)
Impairment of RealD, Inc. investment13.913.9
Loss on extinguishment of debt21.9
Other items, net15.77.837.157.5
Net cash provided by operating activities$164.9$132.9$346.6$353.1
 

Reconciliation of EBITDA to Adjusted EBITDA

(dollars in millions)

(unaudited)

 
Quarter EndedFour Quarters Ended
Dec. 27, 2012Dec. 29, 2011Dec. 27, 2012Dec. 29, 2011
 
EBITDA$140.3$80.9$554.1$405.3

Net loss on disposal and impairment of operating assets
   and other

9.84.716.220.8
Share-based compensation expense3.31.610.37.9
Impairment of RealD, Inc. investment13.913.9
Loss on extinguishment of debt21.9
Noncontrolling interest, net of tax and other, net(1.1)(1.7)

(2.0

)

15.7
Adjusted EBITDA(3)$152.3$99.4$578.6$485.5
 

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

(dollars in millions)

(unaudited)

 
Quarter EndedFour Quarters Ended
Dec. 27, 2012Dec. 29, 2011Dec. 27, 2012Dec. 29, 2011
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