logo
  Join        Login             Stock Quote

Regal Entertainment (RGC) Agrees To Buy Hollywood Theaters

 February 19, 2013 12:23 PM


(By Balaseshan) Regal Entertainment Group (NYSE: RGC), which operates as a motion picture exhibitor, said it has agreed to purchase Hollywood Theaters for total price of $238 million.

The Knoxville, Tennessee-based Regal said it expects the acquisition to add to cash flows and earnings.

The purchase price will consist of $191 million in cash, about $47 million of assumed lease obligations, comprised of capital leases and financing obligations, and certain working capital. The cash portion includes repayment of about $157 million of the sellers' debt.

In 1991, Hollywood Theaters' current chairman and CEO Scott Wallace founded Wallace Theater Corp. and in 1999 purchased Hollywood Theaters Inc., which operated 73 theaters with 502 screens.

[Related -Crude Rebound]

The proposed acquisition would add a total of 43 theatres with 513 screens to Regal's portfolio at a pre-synergy multiple of about 5.9 times cash flow and includes theatres in 16 states and 3 U.S. territories, Regal noted.

"Accretive acquisitions are a key component of our overall business strategy and we look forward to a successful closing and integration of the Hollywood Theater assets during the second quarter," said Amy Miles, CEO of Regal.

Regal's theatre circuit, comprising Regal Cinemas, United Artists Theatres and Edwards Theatres, operates 6,880 screens in 540 locations in 38 states and the District of Columbia. Regal operates theatres in 43 of the top 50 U.S. designated market areas.

On February 7, Regal reported a fourth-quarter earnings of $37.3 million or $0.24 per share, higher than last year's $4.1 million or $0.03 per share. Total revenue grew 17.8% to $723.1 million.

[Related -The Fed Remains Optimistic On The US Economy For 2015]

RGC is trading up 3.59% at $15.88 on Tuesday. The stock has been trading between $12.74 and $16.30 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageCrude Rebound

Since the price of crude oil broke below $90 per barrel in September, the Brent global benchmark has been read on...

article imageShould You Invest In The Hottest New Trend In Finance?

Thanks to major changes in regulation, social media and technology, the business of banking has undergone read on...

article imageStrong Attractor in Action Pulling S&P 500 Down

The attractor is formed by the 200-day moving average and the 50% Fibonacci retracement of the up move from read on...

article imageIs The Weak Housing Market A Warning Sign For The US Economy?

Today’s US economic releases – housing starts and business survey data for the manufacturing sector – read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.