Regal Entertainment Group Reports Results for the Fiscal First Quarter of 2005, Announces Pending Acquisition of Eastern Federal Theatres and Declares Quarterly Dividend of $0.30 per Share.KNOXVILLE Knoxville, city (1990 pop. 165,121), seat of Knox co., E Tenn., on the Tennessee River; inc. 1876. A port of entry, it is a trade and shipping center for a farm, bituminous-coal, and marble area. , Tenn. -- Regal Entertainment Group (NYSE NYSE See: New York Stock Exchange :RGC RGC Royal Government of Cambodia RGC Retinal Ganglion Cell RGC Responsible Gambling Council RGC Rio Grande City (Texas) RGC Routing Group Connector (Microsoft) ), a leading motion picture exhibitor owning and operating the largest theatre circuit in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , today announced fiscal first quarter 2005 results. Total revenues for the quarter ended March 31, 2005 were $577.0 million, a 6.8% increase compared to total revenues of $540.5 million for the comparable quarter ended April 1, 2004. Net income totaled $13.1 million in the first quarter of 2005 compared to net income of $22.8 million in the comparable quarter of 2004. Adjusted earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, excluding merger and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses and amortization of deferred stock compensation (net of related tax effect)(1), was $0.09 for the first quarter of 2005 compared to $0.16 in the first quarter of 2004. Total Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (2) of $102.3 million for the quarter ended March 31, 2005 increased 5.1% from $97.3 million in the comparable period in 2004 and represented a Total Adjusted EBITDA margin of 17.7%. The results of operations for the Company include the results of operations for the acquired Signature Theatres for all periods subsequent to September September: see month. 30, 2004. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. this press release. Today Regal also announced its pending acquisition of Eastern Federal Theatres for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $127.6 million in cash. The acquisition of the Eastern Federal circuit will add a total of 22 theatres and 238 screens and enhance Regal's presence in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. . Consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the acquisition is subject to customary closing conditions and is expected to be completed by the end of the Company's third fiscal quarter of 2005. Regal's Board of Directors also today declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend of $0.30 per Class A and Class B common share. The dividend is payable on June June: see month. 16, 2005, to stockholders of record on June 8, 2005. The Company intends to pay a regular quarterly dividend for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. 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. "During the first quarter, we grew revenue by 6.8% and total adjusted EBITDA by 5.1% despite a tough quarter comparison," stated Mike Campbell For other persons named Mike Campbell, see Mike Campbell (disambiguation). Michael (Mike) Wayne Campbell (born February 1 1950 in Panama City, Florida in the U.S.) is a guitarist and record producer, best known for his work with Tom Petty. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Regal Entertainment Group's theatre operations and Co-CEO of Regal Entertainment Group. "Today, we are also pleased to announce the pending acquisition of the Eastern Federal Theatres circuit, which represents a modern group of theatres in the Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. continued. Also in the first quarter, Regal continued its strategy of expanding its ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. businesses by consolidating the operations of its cinema advertising and new business development subsidiary, Regal CineMedia, with the cinema advertising business of AMC (Advanced Mezzanine Card) See AdvancedTCA. Entertainment Inc.(R) into a new joint venture, National CineMedia National CineMedia, LLC (NCM) (NASDAQ: NCMI)operates the largest digital in-theatre network in North America through long-term agreements with its founding members, AMC Entertainment Inc., Cinemark USA Inc. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . "The creation of National CineMedia continues the transformation and growth of the cinema advertising industry initiated by Regal CineMedia and National Cinema Network over the last few years," said Kurt Kurt is a given name. Its principal English variant is Curt, while others include Cord, Curd, and Kort. It originated as a short form of Curtis, Konrad (Conrad), and Kunibert. Hall, Chief Executive Officer of Regal CineMedia and Co-CEO of Regal Entertainment Group. "National CineMedia's leading distribution technology and focused sales team are expected to ultimately deliver greater revenue to both owner circuits," Mr. Hall continued. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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 dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the risk factors contained in the Company's 2004 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 15, 2005. All forward-looking statements are expressly qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by such factors. Conference Call: Regal Entertainment Group management will conduct a conference call to discuss first quarter 2005 results on April 28, 2005 at 9:30 a.m. (Eastern Time). Interested parties can listen to the call live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's Web site: www.REGmovies.com, or by dialing 800-310-8725 (Domestic) and 312-461-1932 (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 To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. 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 888-203-1112 (Domestic) and 719-457-0820 (International) and enter the conference ID #4303765. In addition, this press release and other pertinent PERTINENT, evidence. Those facts which tend to prove the allegations of the party offering them, are called pertinent; those which have no such tendency are called impertinent, 8 Toull. n. 22. By pertinent is also meant that which belongs. Willes, 319. statistical and financial information are available in the investor relations section of the Company's Web site: www.REGmovies.com. Annual Meeting: Stockholders are cordially invited to attend the Annual Meeting of Stockholders of Regal Entertainment Group, which will be held on May 11, 2005 at 12:00 p.m. (Eastern Time) at our offices located at 7132 Regal Lane, Knoxville, Tennessee “Knoxville” redirects here. For other uses, see Knoxville (disambiguation). Founded in 1786, Knoxville is the third-largest city in the state of Tennessee, behind Memphis and Nashville, and is the county seat of Knox CountyGR6. 37918. 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 6,264 screens in 553 locations in 40 states. Regal operates approximately 18% of all indoor indoor strictly in a human dwelling; more widely includes an animal dwelling. indoor environment the physical, social and psychological environment within a human dwelling that can influence the health of a companion animal. screens in the United States including theatres in 44 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 or www.regalcinemedia.com
Regal Entertainment Group
Consolidated Statements of Income Information
For the Fiscal Quarters Ended 3/31/05 and 4/1/04
(dollars in millions, except per share data)
Quarter Ended
-------------------------
Mar. 31, Apr. 1,
2005 2004
------------ ------------
Revenues:
Admissions $388.8 $368.9
Concessions 149.6 136.7
Other operating revenues 38.6 34.9
------------ ------------
Total revenues 577.0 540.5
Operating expenses:
Film rental and advertising costs 198.9 181.2
Cost of concessions 22.4 20.2
Rent expense 74.5 68.8
Other operating expenses 161.8 157.4
General and administrative expenses 17.1 15.6
Merger and restructuring expenses and
amortization of deferred stock
compensation 1.7 1.8
Depreciation and amortization 48.2 43.2
Net loss (gain) on disposal and impairment
of operating assets 2.9 (1.1)
Gain on lawsuit settlement - (8.2)
------------ ------------
Income from operations 49.5 61.6
Interest expense, net 27.9 19.2
Minority interest in earnings of
consolidated subsidiaries - 1.1
Other, net - 3.4
------------ ------------
Income before income taxes 21.6 37.9
Provision for income taxes 8.5 15.1
------------ ------------
Net income $13.1 $22.8
============ ============
Diluted earnings per share $0.09 $0.16
Adjusted diluted earnings per share,
excluding merger and restructuring expenses
and deferred stock compensation expense,
net of related tax effect $0.09 $0.16
Weighted average number of diluted shares
outstanding (in millions): 153.7 145.7
Consolidated Summary Balance Sheet Information
(dollars in millions)
As of As of
Mar. 31, Dec. 30,
2005 2004
------------ ------------
Cash and cash equivalents $191.5 $243.9
Total assets 2,460.1 2,542.4
Total debt 1,996.9 2,005.8
Stockholders' equity 56.8 69.0
Operating Data
Quarter Ended
-------------------------
Mar. 31, Apr. 1,
2005 2004
------------ ------------
Theatres at period end 553 545
Screens at period end 6,264 6,020
Average screens per theatre 11.3 11.0
Attendance (in thousands) 58,612 57,302
Average ticket price $6.63 $6.44
Average concessions per patron $2.55 $2.39
Reconciliation of Net Income to Total EBITDA and Net Cash Provided by
Operating Activities
(dollars in millions)
Quarter Ended
-------------------------
Mar. 31, Apr. 1,
2005 2004
------------ ------------
Net income $13.1 $22.8
Interest expense, net 27.9 19.2
Provision for income taxes 8.5 15.1
Depreciation and amortization 48.2 43.2
------------ ------------
Total EBITDA 97.7 100.3
EBITDA - Theatre group, net of
inter-company eliminations 91.8 89.7
EBITDA - Regal CineMedia 5.9 10.6
------------ ------------
Total EBITDA 97.7 100.3
Interest expense, net (27.9) (19.2)
Provision for income taxes (8.5) (15.1)
Deferred income taxes (1.5) 0.1
Changes in operating assets and
liabilities (37.0) (41.9)
Other items, net 4.4 1.4
------------ ------------
Net cash provided by operating activities $27.2 $25.6
Reconciliation of Total EBITDA to Total Adjusted EBITDA
(dollars in millions)
Quarter Ended
-------------------------
Mar. 31, Apr. 1,
2005 2004
------------ ------------
Total EBITDA $97.7 $100.3
Net loss (gain) on disposal and impairment
of operating assets 2.9 (1.1)
Gain on lawsuit settlement - (8.2)
Merger and restructuring expenses and
amortization of deferred stock
compensation 1.7 1.8
Minority interest and other, net - 4.5
------------ ------------
Total Adjusted EBITDA(2) $102.3 $97.3
============ ============
Adjusted EBITDA - Theatre group, net of
inter-company
eliminations $96.4 $86.6
============ ============
Adjusted EBITDA - Regal CineMedia $5.9 $10.7
============ ============
Free Cash Flow
(dollars in millions)
Quarter Ended
-------------------------
Mar. 31, Apr. 1,
2005 2004
------------ ------------
Net cash provided by operating activities $27.2 $25.6
Capital expenditures (30.7) (17.7)
Proceeds from asset sales 0.9 24.6
------------ ------------
Free cash flow(2) ($2.6) $32.5
============ ============
Reconciliation of Earnings Per Diluted Share
(dollars in millions, except per share data)
Quarter Ended
-------------------------
Mar. 31, Apr. 1,
2005 2004
------------ ------------
Net income $13.1 $22.8
Merger and restructuring expenses and
amortization of deferred stock
compensation, net of related tax effect 1.0 1.1
------------ ------------
Net income excluding merger and
restructuring expenses and amortization of
deferred stock compensation, net of related
tax effect $14.1 $23.9
============ ============
Weighted average number of diluted shares 153.7 145.7
Adjusted earnings per diluted share
excluding merger and restructuring expenses
and amortization of deferred stock
compensation, net of related tax effect(1) $0.09 $0.16
Earnings per diluted share $0.09 $0.16
(1) We have included adjusted earnings per diluted share, which
excludes merger and restructuring expenses and amortization of
deferred stock compensation, net of related tax effect, 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) Total Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization expense, gain on lawsuit settlement,
merger and restructuring expenses and amortization of deferred
stock compensation, gain/loss on disposal and impairment of
operating assets, minority interest in earnings of consolidated
subsidiaries and other, net) was approximately $102.3 million, or
17.7% of total revenues, for the quarter ended March 31, 2005. We
believe Total EBITDA, Total Adjusted EBITDA and Free Cash Flow
provide useful measures of cash flows from operations for our
investors because Total EBITDA, Total 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 performance and
liquidity of our Company. Total EBITDA, Total Adjusted EBITDA and
Free Cash Flow are not measurements of financial performance or
liquidity under accounting principles generally accepted in the
United States of America and should not be considered in isolation
or construed as a substitutes for net income or other operations
data or cash flow data prepared in accordance with accounting
principles generally accepted in the United States of America for
purposes of analyzing our profitability or liquidity. In addition,
not all funds depicted by Total EBITDA, Total 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 2004
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 15, 2005. Total EBITDA, Total Adjusted EBITDA
and Free Cash Flow, as calculated, may not be comparable to
similarly titled measures reported by other companies.
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