The numbers are strong, although apparently not enough to excite investors. Shares are up 0.2% post market after the leading exhibition company said it generated net income of $75.1M, +212.9% vs last year’s Q3, on revenues of $813.1M, +17.4%. Analysts expected revenues to come in lower at $800.4M. Adjusted earnings at 38 cents a share beat the consensus forecast of 30 cents. The chain says that it sold 62.4M tickets in the quarter, +16.4%, with an average ticket price of $8.79, unchanged from last year. That resulted in admissions revenue of $548.4M. The average visitor spent $3.59 on concessions, +2.6%, driving total revenues of $224.1M. CEO Amy Miles says that she’s “encouraged by the year-to-date industry box office results and [is] optimistic regarding the box office prospects for the upcoming holiday season.”
The No. 1 theater chain probably wants to forget the first three months of 2013. It ended up with $22.4M in net income, -51.6% vs. the period last year, on revenues of $642.8M, -6.1%. Analysts thought revenues would hit $652.7M. Earnings of 13 cents a share matched expectations. Admission revenues fell 7.9% to $436.6M as attendance fell 7.6% to $49.6M with an average ticket price of $8.79, down 4 cents. Concessions revenue fell just 4.6% to $171.8M as average spending per patron rose 11 cents to $3.46. “In a challenging box office environment, we’re pleased that the increase in our average concession sales per patron and our focus on controlling variable costs helped drive free cash flow of over $90M in the first quarter,” CEO Amy Miles says.
The exhibition company’s per-share earnings of 16 cents narrowly beat the 15 cents that analysts expected. But the 3Q revenues of $743.6M, up 6.8% from the period last year, were well ahead of the $729.2M forecast. Net income came in at $25M, down from $42.6M last year — but that included a $31.4M one-time gain from the sale of stock in National CineMedia. “We are pleased that industry attendance growth combined with our continued focus on cost control allowed us to achieve significant growth in both adjusted EBITDA and adjusted EBITDA margin for the second consecutive quarter,” CEO Amy Miles said. She added that the company is “encouraged by the record summer box office and remain(s) optimistic regarding the upcoming holiday film slate.” In addition to the earnings news, Regal declared a cash dividend of 21 cents a share that it will pay on December 16 to stockholders of record on December 7. Regal says that it “intends to pay a regular quarterly dividend for the foreseeable future.”
Regal reported 2Q net profits of $34.8M, up from $4.8M in the same period last year on revenues of $519.3M, up 2.6%. Earnings at 24 cents a share exceeded the 19 cents expected by analysts who follow the company. But they also expected the theater chain to generate as much as $762.1M in revenues. Regal CEO Amy Miles credits “our focus on cost control” for helping to improve profits. She adds that the company is “encouraged by the early third quarter box office results and the prospects for the remainder of the year.” Regal also declared a 21 cents a share dividend and says it “intends to pay a regular quarterly dividend for the foreseeable future.”