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This topic comprises 2 pages: 1 2
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Author
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Topic: Regal For Sale?
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Martin McCaffery
Film God
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Posts: 2481
From: Montgomery, AL
Registered: Jun 99
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posted 10-27-2014 03:59 PM
quote: Regal Exploring Possible Sale
OCTOBER 27, 2014 | 01:15PM PT Brent Lang Senior Film and Media Reporter @BrentALang Regal Entertainment Group is exploring a possible sale, a move that would dramatically alter the exhibition landscape.
The blockbuster announcement came as quarterly revenues and profits fell sharply at the world’s largest theater chain as it struggled to ride out a summer box office downturn.
To soften the blow from its disappointing earnings announcement, the company said it was announcing a special cash dividend. But it was Regal’s announcement that its board of directors might flirt with selling the company as part of an “exploration of strategic alternatives” that might drive shareholder value that lifted its stock in after hours trading. Shares were up 1.53% at $20.51 after earnings were released.
In the past Regal CEO Amy Miles has said that the company was a buyer, not a seller, in the ongoing consolidation of the country’s theater chains. Regal has 7,349 screens across 574 theaters.
Not that the financial results were that sterling. Revenues at the Knoxville, Tenn. based circuit fell nearly 15% to $693.8 million for the quarter ending in September compared to total revenues of $813.1 million for the year-ago period. Net income plunged nearly 65% to $26.7 million, a steep drop from the $75.1 million the company reported in the third quarter of 2013.
The company reported earnings per share of 18 cents, compared with 38 cents for the same period a year ago, while EBITDA fell from $177.3 million to $122.1 million.
The results failed to hit Wall Street’s targets. Analysts projected the exhibition giant would post earnings of 20 cents per share and revenues of $724.1 million.
Overall, ticket sales for the industry were off 15% last summer with a few films such as “Teenage Mutant Ninja Turtles” and “Guardians of the Galaxy” providing lone bright spots in what was a disappointing end to the summer blockbuster season.
FILED UNDER: Amy MilesRegal Entertainment
Variety Article
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Monte L Fullmer
Film God
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Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004
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posted 10-28-2014 12:08 AM
quote: EBITDA fell from $177.3 million to $122.1 million.
This really hurts any business with this much of a drop.
This makes the investors extremely nervous.
I was with REG from 2010 til 2013 and was an ASSOC MGR at my first year with them.
When REG had just a 5% drop in the EBITDA at the end of 2010, this is when MGRS were booted out of the booth and replaced by floor monkeys.
Since I was good with the booth, I had to take a demotion to a Senior Cast Member so I can get the booth back in order due to the massive destruction that the floor monkeys were creating.
Granted, we've had a decent summer with "Guardians/Galaxy" and a handful of others, but these releases only makes up about 15% of features that made locations any decent monies.
As Amy Miles mentions that this industry has its peaks and valleys and now seeing bigger peaks and valleys, that is going to really hit a large business hard where it hurts.
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization
-Monte
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Bobby Henderson
"Ask me about Trajan."
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Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001
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posted 10-28-2014 01:06 PM
I have never fully understood just why any theater chain would want to be the biggest, other than the illusion having more bargaining clout with the movie studios.
I'm sure the movie distributors probably look at theaters in terms of specific markets, like seeing which chains have the best performing theaters in specific cities. Just like AMC, I doubt Regal has a solid strangle-hold on any major movie-going market. They have rivals everywhere.
Regal's overhead costs with over 7,000 screens have to be insane. A decade ago Carmike was trying in vain to become the first movie theater company with over 5,000 screens. The company was buying up just about any theater it could acquire. The buying binge threw Carmike into bankruptcy. Not long after Carmike emerged from bankruptcy they started an ambitious program to convert all the theaters to digital. The company ended up selling quite a few older theaters for various reasons, including those theaters not being worth d-cinema upgrades.
quote: Jonathan Goeldner Regal at the moment seems to be run by morons - install a brand new RPX auditorium at a new theater, and add Dolby Atmos system to maximum effect ?? nope...
It's the essence of Fake Large Format. Make the auditorium and screen a little bigger, install a couple techie logo signs. But don't make any of the fundamentals of the movie going experience any better than usual, but be sure to charge more money for it..
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Marcel Birgelen
Film God
Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012
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posted 10-29-2014 04:44 AM
Maybe it's me, but I'm not getting all excited about the news of nine new superhero stories from Marvel. The Guardians of the Galaxy was a fun deviation from the norm, but please cut the crap, go see a doctor and have this sequelitis looked at, pretty please.
I remember this discussion about a year ago about this (then still upcoming) summer, filled to the brim with sequels and reboots, could become somewhat problematic.
But maybe it's not time to write off the year entirely, as there is still Interstellar on the horizon. Together with this year's Hunger Games sequel, there's still some hope for damage control.
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