Regal Entertainment Group (RGC) filed Quarterly Report for the period ended 2010-09-30.
Regal Entertainment Group has a market cap of $2.14 billion; its shares were traded at around $13.89 with a P/E ratio of 22.4 and P/S ratio of 0.7. The dividend yield of Regal Entertainment Group stocks is 5.2%.
This is the annual revenues and earnings per share of RGC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of RGC.
Highlight of Business Operations:
On July 15, 2009, Regal Cinemas issued $400.0 million in aggregate principal amount of the 85/8% Senior Notes at a price equal to 97.561% of their face value in a transaction exempt from registration under the Securities Act. Interest on the 85/8% Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2010. The 85/8% Senior Notes will mature on July 15, 2019. The net proceeds from the offering, after deducting the initial purchase discount (approximately $9.8 million) and offering expenses paid by the Company, were approximately $381.3 million. The Company used all of the net proceeds of the offering to repay a portion of the Prior Senior Credit Facility. As a result of this repayment, the Company recorded a loss on debt extinguishment of approximately $7.4 million, representing the pro-rata write off of unamortized debt issue costs under the Prior Senior Credit Facility. See Note 4Debt Obligations for further discussion of this transaction.
As further described in Note 3Investments, on March 10, 2010, DCIP executed definitive agreements and related financing transactions in connection with the conversion to digital projection. As part of the closing, the Company made the DCIP Contributions. In connection with the contribution of its 200 existing digital projection systems, the Company recorded a loss on the contribution of $2.0 million based on the excess of the carrying value of the digital projection systems contributed over the $12.6 million fair value (as determined by an independent appraisal) of such equipment. In addition, during May 2010, Regal sold an additional 337 digital projection systems
On March 17, 2010, we received from National CineMedia approximately 0.3 million newly issued common units of National CineMedia. On August 18, 2010, we redeemed 4.2 million of our National CineMedia common units for a like number of shares of NCM, Inc. common stock, which we sold in an underwritten public offering for $16.00 per share, reducing our investment in National CineMedia by $13.7 million, the average carrying amount of the shares sold. We received approximately $64.5 million in proceeds after deducting related fees and expenses payable by us, resulting in a gain on sale of $50.8 million. In addition, on September 8, 2010, we redeemed an additional 0.1 million National CineMedia common units for a like number of shares of NCM, Inc. common stock and sold them to the underwriters to cover over-allotments at $16.00 per share, further reducing our investment in National CineMedia by $0.3 million, the average carrying amount of the shares sold. We received approximately $1.5 million of net proceeds from this sale, resulting in a gain on sale of $1.2 million. The aggregate net proceeds will be used for general corporate purposes. These transactions, together with National CineMedias issuance of 6.5 million common units to AMC in the the second quarter of 2010 as a result of an acquistion, had the effect of decreasing the Companys ownership share in National CineMedia. As a result, on a fully diluted basis, we own a 19.4% interest in NCM, Inc. as of September 30, 2010.
On May 19, 2010, Regal Cinemas entered into the Amended Senior Credit Facility, with Credit Suisse and the lenders party thereto which amends, restates and refinances the Prior Senior Credit Facility among Regal Cinemas, Credit Suisse, Cayman Islands Branch, and the lenders party thereto. The Amended Senior Credit Facility consists of a Term Facility in an aggregate principal amount of $1,250.0 million with a final maturity date in November 2016 and a Revolving Facility in an aggregate principal amount of $85.0 million with a final maturity date in May 2015. The Term Facility amortizes in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount of the Term Facility, with the balance payable on the Term Facility maturity date. Net proceeds of the Term Facility (approximately $1,237.5 million) were applied to refinance the term loan under the Prior Senior Credit Facility, which had an aggregate principal balance of approximately $1,262.1 million. Upon the execution of the Amended Senior Credit Facility, Regal recognized a loss on debt extinguishment of approximately $18.4 million. No amounts have been drawn on the Revolving Facility. The Amended Senior Credit Facility also permits Regal Cinemas to borrow additional term loans thereunder, subject to lenders providing additional commitments of up to $200.0 million and satisfaction of other conditions, as well as other term loans for acquisitions and certain capital expenditures subject to lenders providing additional commitments and satisfaction of other conditions. The Amended Senior Credit Agreement is secured by substantially all assets of Regal Cinemas and certain of its subsidiaries.
Our total revenues for the quarter ended September 30, 2010 (Q3 2010 Period) were $696.4 million and consisted of $486.1 million of admissions revenues, $183.0 million of concessions revenues and $27.3 million of other operating revenues, and increased approximately 3.4% from total revenues of $673.5 million for the quarter ended October 1, 2009 (Q3 2009 Period).
Total admissions revenues increased $22.7 million during the Q3 2010 Period, or 4.9%, to $486.1 million, from $463.4 million in the Q3 2009 Period primarily due to a 6.2% increase in average ticket prices, partially offset by a 1.3% decline in attendance. An increase in the percentage of our admissions revenues generated by premium-priced 3D and IMAX® films exhibited during the Q3 2010 Period along with price increases identified during our ongoing periodic pricing reviews (which include analysis of various factors such as general inflationary trends and local market conditions) were the primary drivers of the increase in our Q3 2010 Period average ticket price. We believe that the slight decrease in attendance during the Q3 2010 Period was largely mitigated by an increase in the percentage of attendance from films released in premium-priced 3D and IMAX® formats, such as Inception, Despicable Me and The Twilight Saga: Eclipse. Based on our review of certain industry sources, the increase in our admissions revenues on a per screen basis was in line with the industrys results for the Q3 2010 Period as compared to the Q3 2009 Period.