Regal Entertainment Reels in Greater Q2 Profit, Revenue

The theater chain beat last year’s numbers as well as analyst expectations

Regal Entertainment Group posted earnings and revenue gains during its second fiscal quarter ended July 1, surpassing Wall Street expectations.

The theater chain announced Tuesday net profits of $34.8 million — up from $4.8 million in the same frame last year — and earnings per share of $0.24, exceeding the prediction of $0.19.

Revenues came in at $753.3 million, up from $730.7 million in the second quarter last year.

During the comparable period in 2010, Regal took a $11.5 million write-down on debt. Regal CEO Amy Miles attributed the stronger Q2 earnings to a focus on cost control and healthy box office, and said the company is encouraged by the early third-quarter results. 

Her statement:

“We are pleased to report that the combination of a healthy second quarter box office and our focus on cost control enabled us to generate over $130 million of free cash flow, our second highest quarterly total in the last four years. We are also encouraged by the early third quarter box office results and the prospects for the remainder of the year.”

Here's the press release:

Regal Entertainment Group (NYSE: RGC), a leading motion picture exhibitor owning and operating the largest theatre circuit in the United States, today announced fiscal second quarter 2011 results.

Total revenues for the second quarter ended June 30, 2011 were $753.3 million compared to total revenues of $730.7 million for the second quarter ended July 1, 2010. Net income attributable to controlling interest in the second quarter of 2011 was $34.8 million compared to $4.8 million in the second quarter of 2010, which included an $11.5 million after-tax loss on extinguishment of debt. Diluted earnings per share was $0.23 for the second quarter of 2011 compared to $0.03 for the second quarter of 2010. Adjusted diluted earnings per share(1) was $0.24 for the second quarter of 2011 compared to $0.12 for the second quarter of 2010. Adjusted EBITDA(3) was $155.9 million for the second quarter of 2011 and $128.4 million for the second 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 September 19, 2011, to stockholders of record on September 9, 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 to report that the combination of a healthy second quarter box office and our focus on cost control enabled us to generate over $130 million of free cash flow, our second highest quarterly total in the last four years," stated Amy Miles, CEO of Regal Entertainment Group. "We are also encouraged by the early third quarter box office results and the prospects for the remainder of the year," Miles continued.