Regal Entertainment Profits Soar

Its fourth-quarter earnings rose 85.5% to $58.8 million in the fourth quarter compared to net income of $31.7 million a year earlier. Total revenues rose 24.9% to $683.8 million, compared with $547.3 million in the fourth quarter of 2002.

Earnings per diluted share, excluding merger and restructuring expenses and amortization of deferred stock compensation, increased 70.8% to $0.41 for fourth quarter 2003 compared to $0.24 in fourth quarter 2002. The results include the acquisitions of Hoyts Cinemas theatres for all periods subsequent to March 27.

For the full year, which includes the week between Christmas and New Year's, which wasn't included in the prior year's tally, it had net income of $185.4 million, 58.9% higher than the $117.2 million in 2003. Its total year for reporting purposes included 53 weeks, compared with 52 weeks in the prior year. For the year, its revenue was $2.5 billion, compared with $2.1 billion during the prior year.

Regal's board also declared a cash dividend of $0.18 per Class A and Class B common share, which represents a 20% increase in the quarterly dividend. The dividend is payable on March 12 to stockholders of record on Feb. 26, 2004. The company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the board, 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.

"In 2003, Regal Entertainment Group acquired and integrated Hoyts, returned value to shareholders in the form of dividends totaling nearly $800 million and continued to generate significant free cash flow," says Mike Campbell, CEO of Regal Entertainment Group's theatre operations and co-CEO of Regal Entertainment Group. "In 2004 we expect to deliver another year of solid financial performance."

"We are very pleased with Regal CineMedia's business development to date," adds metro-area-based Kurt Hall, CEO of Regal CineMedia and co-CEO of Regal Entertainment. "CineMedia's revenue growth…and margins for the quarter and year have exceeded our expectations. With the build out of the digital network substantially completed in 2003, CineMedia is positioned to produce incremental high margin revenue and free cash flow to Regal Entertainment Group's shareholders in 2004."

Hall wrings out more dollars from theaters, which largely stand empty during the week. Movie theaters do most of their business from Friday night to Sunday.

Regal's largest shareholder is local billionaire Phil Anschutz, who made his fortune in oil, real estate, railroads and the entertainment industry.