5/30/12

Regal Entertainment Group - Investor Relations - Press Release

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PRESS RELEASE
RegalEntertainmentGroupReportsResultsforFiscalFirstQuarter2012andDeclaresQuarterlyDividend KNOXVILLE,Tenn.(BUSINESSWIRE)May.1,2012RegalEntertainmentGroup(NYSE:RGC),aleadingmotion pictureexhibitorowningandoperatingthelargesttheatrecircuitintheUnitedStates,todayannouncedfiscalfirst quarter2012results. TotalrevenuesforthefirstquarterendedMarch29,2012were$684.9millioncomparedtototalrevenuesof$570.9 millionforthefirstquarterendedMarch31,2011.Netincome(loss)attributabletocontrollinginterestwas$46.3 millioninthefirstquarterof2012comparedto$(23.6)millioninthefirstquarterof2011.Dilutedearnings(loss)per sharewas$0.30forthefirstquarterof2012comparedto$(0.15)forthefirstquarterof2011.Adjusteddiluted earnings(loss)pershare (1)was$0.30forthefirstquarterof2012comparedto$(0.04)forthefirstquarterof2011. AdjustedEBITDA (3)was$153.8millionforthefirstquarterof2012and$83.9millionforthefirstquarterof2011. ReconciliationsofnonGAAPfinancialmeasuresareprovidedinthefinancialschedulesaccompanyingthispress release. RegalsBoardofDirectorsalsotodaydeclaredacashdividendof$0.21perClassAandClassBcommonshare, payableonJune15,2012,tostockholdersofrecordonJune5,2012.TheCompanyintendstopayaregularquarterly dividendfortheforeseeablefutureatthediscretionoftheBoardofDirectorsdependingonavailablecash,anticipated cashneeds,overallfinancialcondition,loanagreementrestrictions,futureprospectsforearningsandcashflowsas wellasotherrelevantfactors. Wearepleasedthatastrongfilmslatecombinedwithourcontinuedfocusoncostcontrolallowedustoachieveour highesteverfirstquarterAdjustedEBITDAandourhighestAdjustedEBITDAmarginforanyquarterinoverseven years,statedAmyMiles,CEOofRegalEntertainmentGroup."Weareexcitedabouttheupcomingsummermovie seasonthatkicksoffwithMarvelsTheAvengersandremainoptimisticaboutthepotentialforboxofficesuccessfor theremainderof2012,continuedMiles. ForwardlookingStatements: Thispressreleaseincludes"forwardlookingstatements"withinthemeaningofSection27AoftheSecuritiesActof 1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended.Allstatementsincluded herein,otherthanstatementsofhistoricalfact,mayconstituteforwardlookingstatements.AlthoughtheCompany believesthattheexpectationsreflectedinsuchforwardlookingstatementsarereasonable,itcangivenoassurance thatsuchexpectationswillprovetobecorrect.Importantfactorsthatcouldcauseactualresultstodiffermaterially fromtheCompany'sexpectationsaredisclosedintheriskfactorscontainedintheCompany's2011AnnualReporton Form10KfiledwiththeSecuritiesandExchangeCommissiononFebruary27,2012.Allforwardlookingstatements areexpresslyqualifiedintheirentiretybysuchfactors. ConferenceCall: RegalEntertainmentGroupmanagementwillconductaconferencecalltodiscussfirstquarter2012resultsonMay1, 2012at4:30p.m.(EasternTime).InterestedpartiescanlistentothecallliveontheInternetthroughtheinvestor relationssectionoftheCompany'sWebsite:www.REGmovies.com,orbydialing8774070778(Domestic)and201 6898565(International).Pleasedialintothecallatleast510minutespriortothestartofthecallorgototheWeb siteatleast15minutespriortothecalltodownloadandinstallanynecessaryaudiosoftware.Whenprompted,ask fortheRegalEntertainmentGroupconferencecall.Areplayofthecallwillbeavailablebeginningapproximatelytwo hoursfollowingthecall.Thoseinterestedinlisteningtothereplayoftheconferencecallshoulddial8776606853 (Domestic)or2016127415(International)andenteraccount#286andconferencecallID#382610. AboutRegalEntertainmentGroup: RegalEntertainmentGroup(NYSE:RGC)isthelargestmotionpictureexhibitorintheUnitedStates.TheCompany's theatrecircuit,comprisingRegalCinemas,UnitedArtistsTheatresandEdwardsTheatres,operates6,587screensin 523locationsin37statesandtheDistrictofColumbia.Regaloperatestheatresin43ofthetop50U.S.designated marketareas.Webelievethatthesize,reachandqualityoftheCompany'stheatrecircuitnotonlyprovideitspatrons withaconvenientandenjoyablemoviegoingexperience,butisalsoanexceptionalplatformtorealizeeconomiesof scaleintheatreoperations. AdditionalinformationisavailableontheCompany'sWebsiteatwww.REGmovies.com. RegalEntertainmentGroup ConsolidatedStatementsofIncome(Loss)Information FortheFiscalQuartersEnded3/29/12and3/31/11
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5/30/12

Regal Entertainment Group - Investor Relations - Press Release

(inmillions,exceptpersharedata) (unaudited) QuarterEnded March March 29, 31, 2012 2011 Revenues Admissions Concessions Otheroperatingrevenues Totalrevenues Operatingexpenses Filmrentalandadvertisingcosts Costofconcessions Rentexpense Otheroperatingexpenses Generalandadministrativeexpenses(includingsharebasedcompensationof$2.3millionand $1.9millionforthequartersendedMarch29,2012andMarch31,2011,respectively) Depreciationandamortization Netlossondisposalandimpairmentofoperatingassets Incomefromoperations Interestexpense,net EarningsrecognizedfromNCM Lossonextinguishmentofdebt Other,net Income(loss)beforeincometaxes Provisionfor(benefitfrom)incometaxes Netincome(loss) Noncontrollinginterest,netoftax Netincome(loss)attributabletocontrollinginterest Dilutedearnings(loss)pershare Adjusteddilutedearnings(loss)pershare (1) Weightedaveragenumberofdilutedsharesoutstanding(2) ConsolidatedSummaryBalanceSheetInformation (dollarsinmillions) (unaudited) Asof March29,2012 Cashandcashequivalents Totalassets Totaldebt TotalstockholdersdeficitofRegalEntertainmentGroup $ 316.2 2,307.0 2,010.1 (550.9) OperatingData (unaudited) QuarterEnded March29,2012 March31,2011 Theatresatperiodend Screensatperiodend Averagescreenspertheatre Attendance(inthousands) 523 6,587 12.6 53,721 535 6,670 12.5 46,266
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$ 474.1 180.0 30.8 684.9

$394.4 151.3 25.2 570.9

236.8 23.7 94.1 176.8 15.8 46.9 90.8 36.0 (13.8) (2.9) 71.5 25.2 46.3 $ 46.3 $ $ 0.30 0.30 154.8

196.2 20.5 93.7 175.3 16.8 52.0 6.7 9.7 39.0 (13.6) 21.9 0.4 (38.0) (14.3) (23.7) 0.1 $ (23.6) $ (0.15) $ (0.04) 153.6

Asof Dec.29,2011 $ 253.0 2,341.3 2,016.3 (570.9)

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Regal Entertainment Group - Investor Relations - Press Release

Averageticketprice Averageconcessionsperpatron

$ $

8.83 3.35

$ $

8.52 3.27

ReconciliationofEBITDAtoNetCashProvidedbyOperatingActivities (dollarsinmillions) (unaudited) QuarterEnded March29,2012 March31,2011 EBITDA Interestexpense,net (Provisionfor)benefitfromincometaxes Deferredincometaxes Changesinoperatingassetsandliabilities Lossonextinguishmentofdebt Otheritems,net Netcashprovidedbyoperatingactivities $ 154.4 (36.0) (25.2) 7.7 11.7 4.9 117.5 $ 53.1 (39.0) 14.3 (12.9) (9.5) 21.9 14.3 42.2 ReconciliationofEBITDAtoAdjustedEBITDA (dollarsinmillions) (unaudited) QuarterEnded March29,2012 March31,2011 EBITDA Netlossondisposalandimpairmentofoperatingassets Sharebasedcompensationexpense Lossonextinguishmentofdebt Noncontrollinginterest,netoftaxandother,net AdjustedEBITDA (3) $ 154.4 2.3 (2.9) 153.8 $ 53.1 6.7 1.9 21.9 0.3 83.9 ReconciliationofNetCashProvidedbyOperatingActivitiestoFreeCashFlow (dollarsinmillions) (unaudited) QuarterEnded March29,2012 March31,2011 Netcashprovidedbyoperatingactivities $ 117.5 $ 42.2 Capitalexpenditures (10.9) (21.0) Proceedsfromassetsales 0.1 1.4 Freecashflow(3) $ 106.7 $ 22.6 ReconciliationofNetIncome(Loss)AttributabletoControllingInteresttoAdjusted DilutedEarnings(Loss)PerShare (dollarsinmillions,exceptpersharedata) (unaudited) QuarterEnded March March 29, 31, 2012 2011 $ 46.3 $(23.6) 13.6
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Netincome(loss)attributabletocontrollinginterest Lossonextinguishmentofdebt,netofrelatedtaxeffects
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5/30/12

Regal Entertainment Group - Investor Relations - Press Release

Netlossondisposalandimpairmentofoperating assets,netofrelatedtaxeffects Netincome(loss)attributabletocontrollinginterest,excludinglossonextinguishmentofdebt,net ofrelatedtaxeffects,andnetlossondisposalandimpairmentofoperatingassets,netofrelated taxeffects Weightedaveragenumberofdilutedsharesoutstanding(2) Adjusteddilutedearnings(loss)pershare (1) Dilutedearnings(loss)pershare

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$ 46.3 154.8 $ 0.30 $ 0.30

$ (5.9) 153.6 $(0.04) $(0.15)

(1) Wehaveincludedadjusteddilutedearnings(loss)pershare,whichisdilutedearnings(loss)pershareexcluding lossonextinguishmentofdebt,netofrelatedtaxeffects,andnetlossondisposalandimpairmentofoperating assets,netofrelatedtaxeffects,becausewebelieveitprovidesinvestorswithausefulindustrycomparative andisafinancialmeasureusedbymanagementtoassesstheperformanceofourCompany. (2) Representsreportedweightedaveragenumberofdilutedsharesoutstandingforpurposesofcomputingdiluted earnings(loss)pershareandadjusteddilutedearnings(loss)pershareforthequartersendedMarch29,2012 andMarch31,2011.SincetheCompanyreportedanetlossattributabletocontrollinginterestof$23.6million andanetlossattributabletocontrollinginterest,excludinglossonextinguishmentofdebt,netofrelatedtax effectsandnetlossondisposalandimpairmentofoperatingassets,netofrelatedtaxeffectsof$5.9millionfor thequarterendedMarch31,2011,nocommonstockequivalentswereincludedastheeffectwouldhavebeen antidilutive. (3) AdjustedEBITDA(earningsbeforeinterest,taxes,depreciationandamortizationexpense,netlossondisposal andimpairmentofoperatingassets,sharebasedcompensationexpense,lossonextinguishmentofdebt,and noncontrollinginterest,netoftaxandother,net)wasapproximately$153.8millionforthequarterendedMarch 29,2012.WebelieveEBITDA,AdjustedEBITDAandFreeCashFlowprovideusefulmeasuresofcashflowsfrom operationsforourinvestorsbecauseEBITDA,AdjustedEBITDAandFreeCashFlowareindustrycomparative measuresofcashflowsgeneratedbyouroperationsandbecausetheyarefinancialmeasuresusedby managementtoassesstheliquidityofourCompany.EBITDA,AdjustedEBITDAandFreeCashFlowarenot measurementsofliquidityunderU.S.generallyacceptedaccountingprinciplesandshouldnotbeconsideredin isolationorconstruedasasubstituteforotheroperationsdataorcashflowdatapreparedinaccordancewith U.S.generallyacceptedaccountingprinciplesforpurposesofanalyzingourliquidity.Inaddition,notallfunds depictedbyEBITDA,AdjustedEBITDAandFreeCashFlowareavailableformanagement'sdiscretionaryuse. Forexample,aportionofsuchfundsaresubjecttocontractualrestrictionsandfunctionalrequirementstopay debtservice,fundnecessarycapitalexpendituresandmeetothercommitmentsfromtimetotimeasdescribed inmoredetailintheCompanys2011AnnualReportonForm10KfiledwiththeSecuritiesandExchange CommissiononFebruary27,2012.EBITDA,AdjustedEBITDAandFreeCashFlow,ascalculated,maynotbe comparabletosimilarlytitledmeasuresreportedbyothercompanies.

Source:RegalEntertainmentGroup FinancialContact: KevinMead RegalEntertainmentGroup VicePresidentInvestorRelationsandPlanning Kevin.Mead@regalcinemas.com 8659259685 or MediaContact: DickWesterling RegalEntertainmentGroup SeniorVicePresidentMarketing 8659259539

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