Film-Tech Forum ARCHIVE: Regal gobbles up Eastern Federal

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Posted by Mike Spaeth (Member # 524) on 04-28-2005, 03:36 PM:

Regal expaneds again ... word has it Eastern Federal was purchased for $120 million plus.

Posted by Monte L Fullmer (Member # 2797) on 04-29-2005, 03:58 AM:

Wasn't that the note that was posted in this month's BoxOffice magazine of that 74 screen circuit? -Monte

Posted by Jason Whitlock (Member # 3077) on 04-29-2005, 01:36 PM:

Eastern Federal is roughly 230 screens.

Posted by John Carpenter (Member # 1488) on 04-29-2005, 03:18 PM:

Eastern Federal is/was an amazing compnay to work for from my expereince. It is very sad to see them go like this. Hopefully there are some other managers that were "bought out" by Regal that can enlighten us on what to expect. Thanks in advance!

Here is the artcile on the sale:

Regal to buy Eastern Federal theaters for $127 million

DUNCAN MANSFIELD

Associated Press

KNOXVILLE, Tenn. - Regal Entertainment Group, the country's largest motion picture exhibitor, announced Thursday a dip in first-quarter earnings compared to a year ago, and a cash deal to buy North Carolina-based Eastern Federal Theatres for $127.6 million.

Meanwhile, the Knoxville-based movie theater company said it was closing another deal announced last month for seven theaters in Maryland, Florida, Pennsylvania and Virginia owned by R/C Theatres of Maryland for $31 million in cash.

"Both the assets acquired from R/C Theatres and Eastern Federal Theatre circuit represent high-quality assets," Regal co-CEO Mike Campbell said, noting most offer stadium seating.

Eastern Federal, headquartered in Charlotte, has 22 theaters with 238 screens in Florida, North Carolina and South Carolina. Campbell said 18 of the 22 theaters also come with the property on which they are sited.

Regal currently owns and operates 6,264 screens in 553 theaters in 40 states, representing about 18 percent of all indoor screens in the United States. They operate under the Regal Cinemas, United Artists and Edwards Theatres brands.

The company reported a profit for the first quarter ending March 31 of $13.1 million or 9 cents a share, compared to $22.8 million or 16 cents a share for the same period of 2004. Analysts with Thomson First Call predicted 8 cents a share for first quarter 2005.

Campbell said the quarterly comparison suffered because Mel Gibson's "The Passion of The Christ" was such a huge hit in first quarter 2004, grossing more than $320 million during the period. He said the biggest movie of first quarter 2005 was "Hitch" at $175 million.

"Taking into consideration the tough competition with last year's first quarter, we actually performed better than we expected this year," Campbell said.

Regal, with Denver billionaire Philip Anschutz as a major investor, reported a 6.8 percent increase in revenue for the period to $577 million, up from $540.5 million.

Campbell said an average 3 percent increase in ticket prices offset a 1.7 percent drop in attendance. "We continue to be optimistic about the prospects for the films scheduled to open in the summer season," he said, despite slow returns in the first three weeks of the second quarter.

Regal shares fell 28 cents to $19.52 in afternoon trading on the New York Stock Exchange, near their 52-week low of $17.35.

---

Regal Entertainment: www.REGmovies.com

Eastern Federal Theatres: http://www.easternfederal.com

Posted by Monte L Fullmer (Member # 2797) on 05-02-2005, 11:53 PM:

...the bigger they get the harder they fall.....-Monte

[ 05-03-2005, 02:29 PM: Message edited by: Monte L Fullmer ]

Posted by Jon Morgan (Member # 3059) on 05-15-2005, 01:11 PM:

We've got two EF megaplexes in town, both of them very new. It'll be interesting to see how they change, if at all. I'm quite a fan of their theater at Briar Creek here in Raleigh, although they have odd problems--candy that is visibly covered with tape in the displays, for instance--stuff that a lot of people wouldn't care about but stuff that irks some of us. It's a bit unusual, though, as Regal has basically no presence in this part of the state.

Posted by Dennis Benjamin (Member # 1137) on 05-15-2005, 03:16 PM:

Another one falls to the dark side.....

Posted by Lyle Romer (Member # 1266) on 06-30-2005, 12:57 PM:

John,

Has Regal announced what they are intending to do in Gainesville now that they will own two locations that don't play day and date?

Posted by John Carpenter (Member # 1488) on 06-30-2005, 04:49 PM:

No, we havent heard a thing yet. I will let you know when we start to hear things like that. In my opinion it would make sense to play all the movies at both locations though - make everything run smoother - parking, payroll, etc.

Posted by Mike Spaeth (Member # 524) on 06-30-2005, 05:28 PM:

I don't think they would go day and date depending on the particular locations. If one is definitely better than the other, they are not going to kill it by making it compete head-to-head with the other multiplex. It doesn't make any business sense to do so, really, in either situation ... as 100% of the box office receipts belong to them now ... why not keep the selection of movies diverse ...