Earnings Review and Free Research Report: Regal Entertainment Reports Better than Expected Earnings

Research Desk Line-up: Cinemark Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Regal Entertainment Group (NYSE: RGC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RGC, following the Company’s reporting of its financial results on October 24, 2017, for the third quarter fiscal 2017. The movie theatre owner’s cash provided by operating activities increased 425.2% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Movie Production, Theaters industry. Pro-TD has currently selected Cinemark Holdings, Inc. (NYSE: EXR) for due-diligence and potential coverage as the Company reported on November 03, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Cinemark when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RGC; also brushing on EXR. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For three months ended September 30, 2017, Regal’s total revenues decreased 11.7% to $716.0 million from $811.5 million in Q3 FY16. Total revenue was below analysts’ expectations of $722 million.

During Q3 FY17, Regal’s admissions revenue decreased 13.3% to $455.4 million from $525.3 million in the same period last year. The decrease was due to 18% decrease in total attendance. For the reported quarter, the Company’s concessions revenue decreased 11.3% to $212.7 million from $239.9 million in Q3 FY16. The decline was relatively less due to price increases and the continued success at enhanced food menu and alcoholic beverage offerings.

During Q3 FY17, Regal’s earnings before interest, tax, depreciation, and amortization (EBITDA) decreased 27% to $118.1 million from $161.9 million in the same period last year. For the reported quarter, the Company’s EBITDA margin decreased 350 basis points to 16.4% of revenue from 19.9% of revenue in Q3 FY16. During Q3 FY17, the Company’s adjusted EBITDA decreased 33% to $104.4 million from $155.9 million in the same period last year. For the reported quarter, the Company’s adjusted EBITDA margin decreased 470 basis points to 14.5% of revenue from 19.2% of revenue in Q3 FY16

For the reported quarter, Regal’s film rental and advertising costs decreased 14% to $236.8 million from $275.6 million in Q3 FY16. During Q3 FY17, the Company’s depreciation and amortization (D&A) expenses costs increased 6.6% to $62.4 million from $58.5 million in the same period last year.

During Q3 FY17, Regal’s operating income decreased 74.1% to $22.5 million from $87.2 million in the same period last year. For the reported quarter, the Company’s operating margin decreased 760 basis points to 3.1% of revenue from 10.7% of revenue in Q3 FY16.

For the reported quarter, Regal’s net income decreased 73% to $11.4 million from $42.3 million in Q3 FY16. During Q3 FY17, the Company’s diluted EPS decreased 74% to $0.07 from $0.27 in the same period last year. For the reported quarter, Regal’s adjusted net income decreased 76.1% to $10.8 million from $45.2 million in Q3 FY16. For the reported quarter, the Company’s adjusted diluted EPS decreased 75.8% to $0.07 from $0.29 in Q3 FY16. Adjusted diluted EPS surpassed analysts’ expectations of $0.04.

Balance Sheet

As on September 30, 2017, Regal’s cash and cash equivalents decreased 23.1% to $189.5 million from $246.5 million on December 31, 2016. For the reported quarter, the Company’s total debt increased 5.8% to $2.48 billion, from $2.34 billion in Q4 FY17.

During Q3 FY17, the Company’s cash provided by operating activities increased 425.2% to $47.8 million from $9.1 million in the same period last year. For the reported quarter, the Company’s free cash flow was negative $14.9 million compared to negative $56.6 million in Q3 FY16.

As on September 30, 2017, the Company had 561 theatres and 7,315 screens compared to 565 theatres and 7,310 screens in Q3 FY16.

On October 24, 2017, the Company’s Board of Directors declared a cash dividend of $0.22 per Class A and Class B common share, payable on December 15, 2017, to stockholders of record on December 04, 2017.

Outlook

For FY17, Regal expects capital expenditure to be in the range of $130 million to $145 million.

During FY18, the Company expects to open 8 to 12 theaters with 90 to 130 screens and close 4 to 8 theaters with 45 to 75 screens and end the year with approximately 565 theaters and 7,365 screens.

Stock Performance

At the close of trading session on Wednesday, November 08, 2017, Regal Entertainment’s stock price declined 2.34% to end the day at $15.00. A total volume of 4.63 million shares were exchanged during the session, which was above the 3-month average volume of 3.83 million shares. The Company’s shares are trading at a PE ratio of 18.07 and have a dividend yield of 5.87%. At Wednesday’s closing price, the stock’s net capitalization stands at $2.43 billion.

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