Regal Entertainment Group (NYSE: RGC), a leading motion picture
exhibitor, today announced second quarter 2017 results.
Total revenues for the second quarter ended June 30, 2017 were
$764.2 million compared to total revenues of $785.9 million for the
second quarter ended June 30, 2016. Net income attributable to
controlling interest in the second quarter of 2017 was $23.6
million compared to $33.5 million in the second quarter of 2016.
Diluted earnings per share(1) was $0.15 for the second quarter of
2017 compared to $0.21 for the second quarter of 2016. Adjusted
diluted earnings per share(1) was $0.16 for the second quarter of
2017 compared to $0.23 for the second quarter of 2016. Net cash
provided by (used in) operating activities was $(41.8) million for
the second quarter of 2017 and $58.0 million for the second quarter
of 2016. Adjusted EBITDA(3) was $135.5 million for the second
quarter of 2017 and $137.7 million for the second quarter of 2016.
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, 2017, to stockholders of record on September 5, 2017. 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.
“Both our ongoing seating and concession initiatives and our
acquisition of 134 high quality screens had a positive impact on
our operating results in the second quarter, including record highs
in average ticket price and concession sales per patron,” stated
Amy Miles, CEO of Regal Entertainment Group. “With year-to-date
industry box office revenue in line with last year’s record total
and an exciting film slate yet to come in the back half of the
year, we remain optimistic regarding the potential for box office
success in 2017.”
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 2016 Annual Report on Form
10-K filed with the Securities and Exchange Commission on February
27, 2017. 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 2017 results on July 26, 2017 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 877-481-4010 (Domestic) or 919-882-2331
(International) and enter conference call ID #10180.
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 7,379 screens in 566 theatres in 43
states along with Guam, Saipan, American Samoa and the District of
Columbia as of June 30, 2017. The Company operates theatres in 48
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 Group
Consolidated Statements of Income
Information
For the Quarters and Two Quarters Ended
6/30/17 and 6/30/16
(in millions, except per share data)
(unaudited)
Quarter Ended Two Quarters Ended June 30, 2017 June
30, 2016 June 30, 2017 June 30, 2016 Revenues
Admissions $ 481.2 $ 505.8 $ 1,014.4 $ 1,021.5 Concessions 231.4
235.5 470.9 465.6 Other operating revenues 51.6 44.6 100.1
85.9 Total revenues 764.2 785.9 1,585.4 1,573.0 Operating
expenses Film rental and advertising costs 258.5 278.9 541.6 556.4
Cost of concessions 30.6 30.0 61.4 58.8 Rent expense 106.0 106.3
212.2 213.8 Other operating expenses 222.8 214.8 438.5 426.3
General and administrative expenses (including share-based
compensation of $2.3 for the quarters ended June 30, 2017 and June
30, 2016, and $4.5 and $4.1 for the two quarters ended June 30,
2017 and June 30, 2016, respectively) 23.2 20.9 45.5 42.1
Depreciation and amortization 62.9 56.9 123.8 112.6 Net loss on
disposal and impairment of operating assets and other 1.2 1.5 3.9
5.8 Income from operations 59.0 76.6 158.5 157.2
Interest expense, net 31.1 32.3 61.8 64.8 Loss on extinguishment of
debt 1.3 1.5 1.3 1.5 Earnings recognized from NCM (6.6 ) (2.9 )
(8.6 ) (15.2 ) Equity in income of non-consolidated entities and
other, net (8.4 ) (10.4 ) (16.7 ) (20.4 ) Income before income
taxes 41.6 56.1 120.7 126.5 Provision for income taxes 18.0 22.5
48.7 52.2 Net income 23.6 33.6 72.0 74.3 Noncontrolling
interest, net of tax ― (0.1 ) ― (0.1 ) Net income attributable to
controlling interest $ 23.6 $ 33.5 $ 72.0 $ 74.2
Diluted earnings per share(1) $ 0.15 $ 0.21 $ 0.46 $ 0.47 Adjusted
diluted earnings per share(1) $ 0.16 $ 0.23 $ 0.48 $ 0.50 Weighted
average number of diluted shares outstanding(2) 156.9 156.7 157.0
156.8
Consolidated Summary Balance Sheet
Information
(dollars in millions)
(unaudited)
As of
June 30, 2017
As of
December 31, 2016
Cash and cash equivalents $ 235.5 $ 246.5 Total assets 2,748.4
2,645.7 Total debt 2,484.3 2,340.1 Total stockholders’ deficit of
Regal Entertainment Group (835.1 ) (839.1 )
Operating
Data
(unaudited)
Quarter Ended Two Quarters Ended June 30, 2017
June 30, 2016 June 30, 2017 June 30, 2016
Theatres at period end 566 564 566 564 Screens at period end 7,379
7,307 7,379 7,307 Average screens per theatre 13.0 13.0 13.0 13.0
Attendance (in thousands) 47,441 51,246 100,796 104,543 Average
ticket price $ 10.14 $ 9.87 $ 10.06 $ 9.77 Average concessions per
patron $ 4.88 $ 4.60 $ 4.67 $ 4.45
Reconciliation of Net Income
Attributable to Controlling Interest to EBITDA to Net Cash Provided
by (Used in) Operating Activities
(dollars in millions)
(unaudited)
Quarter Ended Two Quarters Ended June 30, 2017 June
30, 2016 June 30, 2017 June 30, 2016 Net income attributable
to controlling interest $ 23.6 $ 33.5 $ 72.0 $ 74.2 Interest
expense, net 31.1 32.3 61.8 64.8 Provision for income taxes 18.0
22.5 48.7 52.2 Depreciation and amortization 62.9 56.9 123.8
112.6 EBITDA(3) 135.6 145.2 306.3 303.8 Interest expense, net (31.1
) (32.3 ) (61.8 ) (64.8 ) Provision for income taxes (18.0 ) (22.5
) (48.7 ) (52.2 ) Deferred income taxes (3.2 ) (0.4 ) (7.7 ) (4.6 )
Changes in operating assets and liabilities (148.0 ) (46.2 ) (46.7
) 14.9 Loss on extinguishment of debt 1.3 1.5 1.3 1.5 Landlord
contributions 23.6 21.6 49.9 43.8 Other items, net (2.0 ) (8.9 )
15.2 (3.6 ) Net cash provided by (used in) operating activities $
(41.8 ) $ 58.0 $ 207.8 $ 238.8
Reconciliation of EBITDA to Adjusted
EBITDA
(dollars in millions)
(unaudited)
Quarter Ended Two Quarters Ended June 30, 2017 June
30, 2016 June 30, 2017 June 30, 2016 EBITDA(3) $ 135.6 $
145.2 $ 306.3 $ 303.8 Net loss on disposal and impairment of
operating assets and other 1.2 1.5 3.9 5.8 Share-based compensation
expense 2.3 2.3 4.5 4.1 Acquisition related costs 1.0 ― 1.0 ― Loss
on extinguishment of debt 1.3 1.5 1.3 1.5 Earnings recognized from
NCM (6.6 ) (2.9 ) (8.6 ) (15.2 ) Cash distributions from NCM and
other non-consolidated entities 9.1 0.4 31.5 22.2 Noncontrolling
interest, net of tax and equity in income of non-consolidated
entities and other, net (8.4 ) (10.3 ) (16.7 ) (20.3 ) Adjusted
EBITDA(3) $ 135.5 $ 137.7 $ 323.2 $ 301.9
Reconciliation of Net Cash Provided by
(Used in) Operating Activities to Free Cash Flow
(dollars in millions)
(unaudited)
Quarter Ended Two Quarters Ended June 30, 2017 June
30, 2016 June 30, 2017 June 30, 2016 Net cash provided by
(used in) operating activities (41.8 ) 58.0 $ 207.8 $ 238.8 Capital
expenditures (59.6 ) (58.3 ) (104.3 ) (89.4 ) Proceeds from asset
sales 3.1 ― 4.6 1.3 Free cash flow(3) $ (98.3 ) $ (0.3 ) $ 108.1 $
150.7
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, 2017
June 30, 2016 June 30, 2017 June 30, 2016 Net income
attributable to controlling interest $ 23.6 $ 33.5 $ 72.0 $ 74.2
Loss on extinguishment of debt, net of related tax effects of $0.5
for the quarter and two quarters ended June 30, 2017, and $0.6 for
the quarter and two quarters ended June 30, 2016 0.8 0.9 0.8 0.9
Net loss on disposal and impairment of operating assets and other,
net of related tax effects of $0.4 and $0.6 for the quarters ended
June 30, 2017 and June 30, 2016, respectively, and $1.5 and $2.3
for the two quarters ended June 30, 2017 and June 30, 2016,
respectively 0.8 0.9 2.4 3.5 Gain on sale of available for sale
securities, net of related tax effects of $0.4 for the two quarters
ended June 30, 2016 ― ― ― (0.6 ) Net income attributable to
controlling interest, excluding loss on extinguishment of debt, net
of related tax effects, net loss on disposal and impairment of
operating assets and other, net of related tax effects, and gain on
sale of available for sale securities, net of related tax effects $
25.2 $ 35.3 $ 75.2 $ 78.0
Weighted average number of diluted shares
outstanding(2)
156.9 156.7 157.0 156.8 Adjusted diluted earnings per share(1) $
0.16 $ 0.23 $ 0.48 $ 0.50 Diluted earnings per share(1) $ 0.15 $
0.21 $ 0.46 $ 0.47 (1) Diluted earnings per share is net
income attributable to controlling interest divided by weighted
average number of diluted shares outstanding. 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, net loss on disposal and impairment of operating assets
and other, net of related tax effects, and gain on sale of
available for sale securities, 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, 2017 and
June 30, 2016. (3) Adjusted EBITDA (net income attributable to
controlling interest adjusted for interest expense, net, provision
for income taxes, depreciation and amortization, net loss on
disposal and impairment of operating assets and other, share-based
compensation expense, acquisition related costs, loss on
extinguishment of debt, earnings recognized from NCM, cash
distributions from NCM and other non-consolidated entities, and
noncontrolling interest, net of tax and equity in income of
non-consolidated entities and other, net) was approximately $135.5
million for the quarter ended June 30, 2017. 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 and performance
of our Company. EBITDA, Adjusted EBITDA and Free Cash Flow are not
measurements of liquidity or performance 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 or
performance. 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 2016 Annual Report on Form 10-K filed with the Securities
and Exchange Commission on February 27, 2017. 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/20170726006202/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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