Regal entertainment group reports results for fourth quarter 2013 and
increases quarterly dividend
Knoxville, tenn.--(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 fourth quarter 2013 results. total revenues for the fourth quarter ended december 26, 2013 were $739.9 million compared to total revenues of $721.4 million for the fourth quarter ended december 27, 2012(1). net income attributable to controlling interest was $24.0 million in the fourth quarter of 2013 compared to $36.3 million in the fourth quarter of 2012(1). diluted earnings per share was $0.15 for the fourth quarter of 2013 compared to $0.23 during the fourth quarter of 2012(1). adjusted diluted earnings per share(2) was $0.17 for the fourth quarter of 2013 compared to $0.27 during the fourth quarter of 2012(1). adjusted ebitda(3) was $125.8 million for the fourth quarter of 2013 and $150.6 million for the fourth quarter of 2012(1). reconciliations of non-gaap financial measures are provided in the financial schedules accompanying this press release. “we are pleased to report that a healthy box office environment combined with the impact of our recent acquisitions enabled us to generate record total revenue and adjusted ebitda for the second consecutive year,” stated amy miles, ceo of regal entertainment group. “the increase in our recurring quarterly dividend to $0.22 per share illustrates our confidence in the company’s ability to generate significant free cash flow and our commitment to returning value to stockholders,” miles continued. regal’s board of directors also today declared a cash dividend of $0.22 per class a and class b common share, payable on march 14, 2014, to stockholders of record on march 4, 2014. 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. 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. important factors that could cause actual results to differ materially from the company's expectations are disclosed in the risk factors contained in the company's 2012 annual report on form 10-k filed with the securities and exchange commission on february 25, 2013. all forward-looking statements are expressly qualified in their entirety by such factors. conference call: regal entertainment group management will conduct a conference call to discuss fourth quarter 2013 results on february 13, 2014 at 4:30 p.m. (eastern time). interested parties can listen to the call live on the internet through the investor relations section of the company's web site: www.regmovies.com, or by dialing 877-407-0778 (domestic) and 201-689-8565 (international). please dial in to the call at least 5 - 10 minutes prior to the start of the call or go to the web site at least 15 minutes prior to the call to download and install any necessary audio software. when prompted, ask for the regal entertainment group conference call. a replay of the call will be available beginning approximately two hours following the call. those interested in listening to the replay of the conference call should dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter conference call id #405494. about regal entertainment group: regal entertainment group (nyse: rgc) operates the largest and most geographically diverse theatre circuit in the united states, consisting of 7,394 screens in 580 theatres in 42 states along with guam, saipan, american samoa and the district of columbia as of december 26, 2013. the company operates theatres in 46 of the top 50 u.s. designated market areas. we believe that the size, reach and quality of the company’s theatre circuit not only provide its patrons with a convenient and enjoyable movie-going experience, but is also an exceptional platform to realize economies of scale in theatre operations. additional information is available on the company's web site at www.regmovies.com. regal entertainment group consolidated statements of income information for the fiscal quarters and four quarters ended 12/26/13 and 12/27/12 (in millions, except per share data) (unaudited) weighted average number of diluted shares outstanding(4) consolidated summary balance sheet information (dollars in millions) (unaudited) dec. 26, 2013 dec. 27, 2012(1) operating data (unaudited) reconciliation of ebitda to net cash provided by operating activities (dollars in millions) (unaudited) reconciliation of ebitda to adjusted ebitda (dollars in millions) (unaudited) noncontrolling interest, net of tax and other, net (28.5 (2.0 reconciliation of net cash provided by operating activities to free cash flow (dollars in millions) (unaudited) reconciliation of net income attributable to controlling interest to adjusted diluted earnings per share (dollars in millions, except per share data) (unaudited) net loss on disposal and impairment of operating assets and other, net of related tax effects net income attributable to controlling interest, excluding loss on extinguishment of debt, net of related tax effects, gain on sale of available for sale securities, net of related tax effects, gain on sale of ncm, inc. common stock, net of related tax effects, and net loss on disposal, impairment of operating assets, net of related tax effects weighted average number of diluted shares outstanding(4) __________________________________ during the fourth quarter of fiscal 2013, the company identified errors related to an understatement of deferred revenue attributable to its paper gift certificate and discount ticket products and an overstatement of other operating revenue associated with the unredeemed portion of these products dating back to 2002. in accordance with financial accounting standards board accounting standards codification 250, accounting changes and error corrections, we evaluated the materiality of the errors from quantitative and qualitative perspectives, and concluded that the errors were immaterial to the company’s prior period interim and annual consolidated financial statements. since these revisions were not material to any prior period interim or annual consolidated financial statements, no amendments to previously filed interim or annual periodic reports are required. consequently, the company revised the historical consolidated financial information presented herein and will reflect the same revisions in our forthcoming fiscal 2013 form 10-k. for the quarter ended december 27, 2012, the immaterial error correction resulted in a decrease in other operating revenues, total revenues, income from operations and income before income taxes of $1.7 million, a decrease in provision for income taxes of $0.7 million, a decrease in net income and net income attributable to controlling interest of $1.0 million, and a decrease in diluted earnings per share of $0.01. for the four quarters ended december 27, 2012, the correction resulted in a decrease in other operating revenues, total revenues, income from operations and income before income taxes of $4.2 million, a decrease in provision for income taxes of $1.7 million, a decrease in net income and net income attributable to controlling interest of $2.5 million, and a decrease in diluted earnings per share of $0.01. additionally, the correction resulted in a decrease to ebitda and adjusted ebitda of $1.7 million and $4.2 million for the quarter and four quarters ended december 27, 2012, respectively. the correction also resulted in a decrease to adjusted diluted earnings per share of $0.01 and $0.02 for the quarter and four quarters ended december 27, 2012, respectively. as of december 27, 2012, the immaterial error correction resulted in an increase in total assets of $12.6 million and an increase in total stockholders’ deficit of regal entertainment group of $51.8 million.
