Exhibitor chain Regal Entertainment reported a 41 percent year-to-year drop in third-quarter earnings to $25 million, despite a 7 percent increase in quarterly revenue to $743.6 million.
The Knoxville, Tenn.-based company attributed the decline in quarterly profit to a poor year-to-year comparison -- specifically, the $31.4 million after-tax gain it received last year in the third quarter when it sold off National CineMedia.
Here's the company's full earnings release:
Regal Entertainment Group Reports Results for Fiscal Third Quarter 2011 and Declares Quarterly Dividend
KNOXVILLE, Tenn., Oct 27, 2011 (BUSINESS WIRE) --
Regal Entertainment Group (NYSE: RGC), a leading motion picture exhibitor owning and operating the largest theatre circuit in the United States, today announced fiscal third quarter 2011 results.
Total revenues for the third quarter ended September 29, 2011 were $743.6 million compared to total revenues of $696.4 million for the third quarter ended September 30, 2010. Net income attributable to controlling interest in the third quarter of 2011 was $25.0 million compared to $42.6 million in the third quarter of 2010, which included a $31.4 million after-tax gain on the sale of National CineMedia common stock. Diluted earnings per share was $0.16 for the third quarter of 2011 compared to $0.28 for the third quarter of 2010. Adjusted diluted earnings per share(1) was $0.19 for the third quarter of 2011 compared to $0.07 for the third quarter of 2010. Adjusted EBITDA(3) was $146.3 million for the third quarter of 2011 compared to $116.5 million for the third quarter of 2010. 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 December 16, 2011, to stockholders of record on December 7, 2011. 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 that industry attendance growth combined with our continued focus on cost control allowed us to achieve significant growth in both Adjusted EBITDA and Adjusted EBITDA margin for the second consecutive quarter," stated Amy Miles, CEO of Regal Entertainment Group. "We are encouraged by the record summer box office and remain optimistic regarding the upcoming holiday film slate," 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.
