Regal Entertainment: Executing plan for maturing debt, digital, 3D rollout are priorities for cash

By Jennifer Lanning Drey

Portland, Ore., Feb. 16 - Regal Entertainment Group's primary objectives for cash allocation in 2010 are to execute on its plan for handling near- and mid-term debt maturities and to ensure that it achieves its expectations for the digital and 3D rollout, David Ownby, chief financial officer of the company, said Tuesday during its fourth-quarter earnings conference call.

"As has always been the case, we will strive to allocate our capital resources in ways that we believe provide the best long-term benefit to shareholders," Ownby said.

Regal will continue to evaluate alternatives, including growing the company through acquisitions or new-build activity, improving its balance sheet and returning value to shareholders, he said.

Regal ended 2009 with $328 million of cash and total debt of just under $2 billion, Ownby reported.

The company's leverage ratio was 2.7 times at Dec. 31.

Also during Tuesday's call, Regal chief executive officer Amy Miles said financing for the Digital Cinema Implementation Partners collaboration has been negotiated and is likely to close within the next few weeks. Regal is one of three motion picture exhibitors in the collaboration.

Basic terms include a $445 million five-year delayed-draw term facility, $135 million of junior capital and a combined equity contribution of $80 million from the three exhibitors.

Regal posted fourth-quarter revenues of $765.6 million compared to total revenues of $711.7 million for the same period in 2008. Adjusted EBITDA was $156.8 million for the fourth quarter, up from $145.8 million for the prior-year period.

Regal is a Knoxville, Tenn.-based motion picture exhibitor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.