Regal Entertainment Q2 Profit Plunges - Update

(RTTNews) - Motion picture exhibitor Regal Entertainment Group (RGC: News ) on Thursday reported an 88% plunge in profit for the second quarter from last year, hurt by lower revenues due to a soft box-office performance in the movie industry, and higher one-time charges.

The Knoxville, Tennessee-based company's net income for the second quarter was $4.8 million or $0.03 per share, down from $40.5 million or $0.26 per share in the previous-year quarter.

The latest quarter's results include a loss on debt extinguishment of $11.5 million, after-tax, and net loss on disposal and impairment of operating assets of $1.6 million. The year-ago quarter's results include net loss on disposal and impairment of operating assets of $6.3 million.

Excluding items, the company's net earnings for the quarter declined to $17.9 million or $0.12 per share from $46.8 million or $0.30 per share in the prior-year quarter. On average, nineteen analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter. Analysts' estimate typically excludes one-time items.

Total revenue of Regal Entertainment, which operates theater circuit under the Regal Cinemas, United Artists, and Edwards brands, declined 7.4% in the quarter to $730.7 million from $789.2 million in the prior-year quarter. Analysts had a consensus revenue estimate for the quarter of $756.56 million.

Amy Miles, CEO of Regal Entertainment Group, said, "We continue to be pleased with the pace of our digital cinema and 3D rollout and were happy to complete the acquisition of eight theatres from AMC in late June. We are also encouraged by the year-to-date and early third quarter box office results and the outlook for the remainder of the year."

Revenue from admissions for the second quarter declined 6.6% to $506.0 million, while revenue from concessions were down 10.4% to $192.6 million. Other operating revenues edged down to $32.1 million from $32.6 million in the year-ago quarter.

At the end of the second quarter, the number of theaters owned by Regal were 547, while the number of screens were 6,777. This compares to 549 theaters and 6,778 screens at the end of the year-ago quarter.

Attendance at the company's theaters declined to 57.82 million in the quarter from 66.32 million in the year-ago period, while the average ticket price increased to $8.75 from $8.17 in the prior-year quarter.

The company's cash and cash equivalents as at the end of the second quarter were $225.1 million, compared to $328.1 million as of December 31, 2009.

Regal's board of directors declared a cash dividend of $0.18 per Class A and Class B common share, payable on September 17, 2010, to stockholders of record on September 9, 2010.

To receive FREE breaking news email alerts for Regal Entertainment Group and others in your portfolio

 1   2   Next Page