Film-Tech Forum ARCHIVE: Regal Entertainment CEO Mike Campbell stepping down

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Posted by Dennis Benjamin (Member # 1137) on 05-08-2009, 12:08 PM:

LINK

Regal Entertainment CEO Mike Campbell stepping down

He will remain the movie theater chain's executive chairman. Chief Financial Officer Amy Miles was named the company's new chief executive.

By Richard Verrier
May 7, 2009

Marking the latest shift in the executive suites of the movie theater industry, Regal Entertainment Group said Wednesday that Amy Miles, the company's chief financial officer, had been named chief executive, replacing Mike Campbell, who remains executive chairman.

Miles, 42, a former executive with Deloitte & Touche and PricewaterhouseCoopers, has been Regal's CFO since March 2002. She will be replaced by David Ownby, who has been the company's senior vice president of finance. The changes take effect June 30.
Although Miles will oversee the daily operations of the company, Campbell said he would remain active in various "strategic initiatives," including possible acquisitions of other theater companies and the conversion of Regal's theaters to digital technology. Regal, the nation's No. 1 theater chain, operates 6,782 screens in 550 theaters in 39 states.

Regal, controlled by investor Phil Anschutz, said the change was part of a succession plan under which Campbell, who founded Regal in 1989 and presided over a series of acquisitions, would continue as chairman of the board.

Nonetheless, the news took analysts by surprise. "They may have been working on this a long time, but I don't think Wall Street was anticipating this," said Jeffrey Logsdon of BMO Capital Markets.
Anschutz's entertainment interests include sports and concert giant AEG, movie production company Walden Media as well stakes in the Los Angeles Lakers and Kings.

The announcement, made during the company's annual shareholder meeting in Knoxville, Tenn., came days after Regal announced that net income in the first quarter had dropped 22% to $21.3 million, largely because of charges for closing theaters and interest expense. Revenue for the period was up 6% to $655 million as theater operators benefited from strong ticket sales this year.

Campbell, 55, said in an interview that he suggested the change to the board, citing corporate governance issues to separate the duties of chairman and CEO.

"I think it's just good succession planning and good for the company and something I've been thinking about for the last two years," he said.

Campbell's stepping down comes in the wake of two other recent chief executive turnovers at major theater operators. In February, No. 2-ranked AMC Entertainment Inc. tapped Gerardo Lopez, a former Starbucks Corp. executive, to become chief executive. A month earlier, No. 4-ranked Carmike Cinemas Inc. ousted CEO Michael W. Patrick.

Despite increases in ticket sales this year, attendance levels at movie theaters have been largely flat over the long term as consumers face an ever-wider array of entertainment choices.

Theaters are embracing 3-D technology in the hope of attracting a generation of audiences reared on video games and the Internet.

Regal's management shifts appeared to be supported by Wall Street. The company's shares closed Wednesday at $14.08, up 26 cents.

Posted by Mike Blakesley (Member # 26) on 05-08-2009, 01:56 PM:

quote: The L.A. Times
Despite increases in ticket sales this year, attendance levels at movie theaters have been largely flat over the long term as consumers face an ever-wider array of entertainment choices.

That's a dumb sentence on a couple of levels. If there is an 'ever wider array of entertainment choices,' then that means the cinemas's share of the pie is actually increasing, if attendance is flat (which is definitely isn't this year). Also, the LA Times should know about the cyclical nature of the movie business if any paper should.

The newspaper business is just jealous because it is dying and the theatre business isn't.

Posted by Monte L Fullmer (Member # 2797) on 05-09-2009, 02:28 AM:

Prob is a stradegy move for Mr.Campbell to do the step-down and let someone else (like this Amy Miles) to grab a hold of the reigns and guide REG down the theatre industry road in a positive, productive and successful manner.

Interesting reading on about Mr.Patrick stepping down from his CEO post to remain on the board of directors. Maybe the new CEO of Carmike, Mr Passman III, will grab a hold of those reigns on those wild and insane horses and get that circuit on a better trail than what they were heading down to. They needed that "breath of fresh air-change of scenery" badly if they're going to keep rolling forward as a competitive circuit.

My kudos to REG!

Posted by Louis Bornwasser (Member # 3063) on 05-09-2009, 05:48 AM:

Mike; I think it IS flat at the large chain level since they all all out of good ideas to serve the customer and seem, instead, to be beset on exploiting him. It ain't pretty especially since the customer is smarter now than before. everyone gets it, except the CEO's. (Ivory tower syndrome.) Louis

Posted by Mark Gulbrandsen (Member # 72) on 05-09-2009, 09:25 AM:

Louis,
You're almost correct. The ivory tower part and all. Its not that they've run out of ideas, its that they want it all for themselves and are not willing to give the cuistomer anything at all any more let alone the poor overworked employee. This is why many an independent that is running his theater to serve his customers, and employees is doing better numbers.

Mark

Posted by John Joseph Fink (Member # 3619) on 05-09-2009, 10:41 AM:

Did Campbell bankrupt Regal many years ago with his stupid policies of rapid expansion that led many moronic decisions?

The worst was his decision to build two theaters in North Bergen, NJ. The first was planned by a chain they purchased, Magic Cinemas and went discount three months after they opened their doors. A year or so later they built a theater with a somewhat similar configuration two miles away. Meanwhile both were sharing films with the Loews sites in Secacus, which were successful as they were in the middle of shopping and dinning options. As for the two Regals: Bergen Plaza was in a parking garage under a super market in an industrial neighborhood, and Columbia Park was also in a parking garage under a Big Box shopping center. Way to build new 25 screens just to build 25 screens. (Regal had 12 and 13 screens, Loews 8 and 6 - which got the first choice when it came to bookings).

I'm sure there is countless other stupid moves Regal made in other markets. I know of one 20-plex that opened and closed in Florida. They grew too quickly, too fast and it's amazing they Campbell was not only permitted continue, but lead the chain in acquiring UA and Edwards. They, like the industry have become smarter with the sites they build/open/acquire in recent years, but with a lack of judgement and responsible management in the beginning, I'm shocked Campbell has made it this long.

Posted by Joe Redifer (Member # 3) on 05-09-2009, 10:51 AM:

Does this mean Regal will stop painting their buildings with the ugliest paint and designs imaginable? They made the Continental look like a theater that belongs in Arizona or New Mexico.

Posted by Mike Olpin (Member # 1115) on 05-09-2009, 12:01 PM:

quote: John Joseph Fink
Campbell was not only permitted continue, but lead the chain in acquiring UA and Edwards

You can blame Anschutz for that. He acquired the three bankrupt companies separately, and then merged them, giving control to Regal since they had more experience in acquisition and retraining.

Posted by Bobby Henderson (Member # 840) on 05-09-2009, 01:45 PM:

The big thing missing from movie theater chains is attention to detail in presentation quality. They don't seem to be interested in that at all since proper theater maintenance costs more money. I think their stance is the stupid customer will still come to the theater even if the projection is dim "movies by Braille" and the audio is in the glory of muddy mono.

My feeling is movie theater chain executives need to look at how successful restaurant chains are run. Sure, everyone likes to just get out of the house but when they choose a restaurant the quality and variety of the food is usually the top priority. Some companies like Darden and Brinker are very demanding in that regard. A general manager at an Olive Garden or Red Lobster location can be fired if three or more customers file complaints about bad dining experiences there within a year.

The only area where big theater chains have any sort of focus like that at all is in the concession stand. Who gives a damn about what's going on with the main the product the theater sells (the movie presentation)? Some chains will automatically fire an employee if he fails to upsell to a checker.

I don't visit movie theaters to be wowed by the lobby decor or variety of high priced concession items. I went to the theater to see a movie. The quality of that presentation has to be a vital area of focus for big theater chains. Right now I don't think that is the case.

Oh, and I think movie distributors have some blame to share in this as well. They'll pay someone to visit the theater to make sure all the proper movie trailers are running. But what about checking the damned quality in how the main feature is being presented? They don't do that. And I think that's pretty foolish. If I was an executive at a major distributor like Fox and had just released a $200 million movie I'd really like to know how that feature is being handled and have people out there finding out the truth. Movie theater chain executives need to be visiting more than just the lobby and management office when they visit various locations.

Posted by Louis Bornwasser (Member # 3063) on 05-09-2009, 03:36 PM:

Bobby: "You can't handle the truth." I have been waiting for years. . . .

They're too big. Yes, the studios have just about lost control, except with smaller cinemas. Louis

Posted by Sam D. Chavez (Member # 1841) on 05-09-2009, 04:44 PM:

Bobby and Louis,

You're both preaching to the choir.

IMHO, Hollywood generally does not care about cinema presentation outside major metropolitan areas. They totally have the upper hand but since the film will only run a few weeks before DVD release hey don't care so much. Disney seems a bit more demanding than the others.

Posted by Jesse Skeen (Member # 586) on 05-09-2009, 05:44 PM:

Just look up my past posts (2000-2001) to see why I STOPPED working for this company, and to see what they would have fired me for (not for bad presentation!)

They want digital projection to take over soon anyways; that can run by itself easier than film can.

Posted by Monte L Fullmer (Member # 2797) on 05-09-2009, 06:54 PM:

quote: John Joseph Fink
Did Campbell bankrupt Regal many years ago with his stupid policies of rapid expansion that led many moronic decisions?

He might have, but there were tons others who went "megaplex crazy" by the summer of 1999, then when the crash hit in 2000, it took those others down as well - with these companies building these 'plexes and not thinking about their smaller and older locations. Then, when the crash hit along with the customers heading to these 'plexes, it left those smaller and older locations without customers coming to them, then the domino effect hit with tonnage of red ink in the dockets.

So, don't single out Campbell for being the ring leader in making operational fubars..they're were tons others in the pile that did the same..and one of them is what caused my eventual leaving the REG group...thx to a son killing a father's empire.

I left REG due to location misoperations that caused my benefits to head out the window in a flash along with a serious decrease in wages.

Posted by Joe Redifer (Member # 3) on 05-09-2009, 07:45 PM:

quote: Monte L Fullmer
I left REG due to location misoperations that caused my benefits to head out the window in a flash along with a serious decrease in wages.

You did exactly what they wanted you to do.

Posted by Monte L Fullmer (Member # 2797) on 05-09-2009, 08:45 PM:

You got that right... [Big Grin]

Posted by Michael McGovern (Member # 4807) on 05-10-2009, 12:04 AM:

Of all the chains you could work for, Regal is pretty much the worst. They pay the least, expect the most, have a corporate office that extremely hostile towards the field, and provide little in the way of motivation, and allow for some of the worst managers in the industry to continue in their position while driving out all the good ones with their insane policies, endless micromanagement, and lack of decent wages. In 2 years Regal won't even have projectionists anymore, they expect to have every location digital, and won't need anyone up in the booth anymore. People I still talk to that work for the company have nightmares about dealing with their Human Resources department, and are in constant fear of losing their jobs due to factors that are either beyond their control, or asinine policy violations (their policy manual was 300+ pages when I last worked there). Go read an archive of Dilbert comic strips, that really is what working for them is like.

Posted by Joe Redifer (Member # 3) on 05-10-2009, 01:11 AM:

quote: Michael McGovern
In 2 years Regal won't even have projectionists anymore

From what I understand, they don't even have them now. Instead, managers run the booth. They are most certainly not projectionists, but rather "button pushers".

We have a Regal theater out here called the Continental. One of our employees went to the Continental to pick up a print a few weeks back and their GM was constantly yelling at their employees... literally yelling, for stupid things like going around a partition while moving a print instead of carrying the print over it which would have saved maybe 4 or 5 seconds. The GM did this in front of our employee who had never even been in the building before, so I assume he doesn't care about discretion. Our guy came back and couldn't believe how hot-tempered their GM was and was very thankful he wasn't employed there. I guess Regal managers just like to yell in front of everyone. Maybe even the public?

Posted by Monte L Fullmer (Member # 2797) on 05-10-2009, 03:23 AM:

quote: Joe Redifer
Instead, managers run the booth

the occupation title of "projectionist" isn't in their vocabulary. It's just "management" and "staff", thus a booth person is also a member of management.

But, usually it's the supervisors or assistants who tend to the booth operations - including the three necessary levels of 1)-basic show operations, 2)-make an break films, 3)-machine maintenance and an optional 4th level: bulb changes.

quote: Joe Redifer
I guess Regal managers just like to yell in front of everyone. Maybe even the public?

Interesting, that our local REG managers are no where like that here in this state.

Maybe there in the Denver area just have a situation with staff where the mgrs are tested to the limit in their actions.

All three locations in my area have great managers (whom I know). They are all well mannered, handle things on an exceptionaly professional manner and present an image to the public that the location that they are in charge of, that the customer is always welcome and will have the greatest movie-going experience.

Course also, there is a DM that is in charge of this area that has a great attitude towards his managers, thus this could have a huge impact on how that part of REG is being represented.

Maybe in Joe's and Mr. McGovern's areas, those two DM's could be more of a "whip cracker" and who wants to conquer that dist area as his own and not more to REG's method's of operation - which then becomes a high case of misrepresentation, and thus becomes totally unfair to who works at these locations under this false image.

Yes, REG will eventually become all digital to where the film operator positions will be eliminated...but that was to be expected anyway - just something that we have to be aware of.

-Monte

Posted by Dustin Mitchell (Member # 372) on 05-10-2009, 03:31 AM:

quote: Monte L Fullmer
Interesting reading on about Mr.Patrick stepping down from his CEO post to remain on the board of directors. Maybe the new CEO of Carmike, Mr Passman III, will grab a hold of those reigns on those wild and insane horses and get that circuit on a better trail than what they were heading down to. They needed that "breath of fresh air-change of scenery" badly if they're going to keep rolling forward as a competitive circuit.

Mr. Patrick is no longer on the board of directors; he was bought otu of his shares from what I understand.

Posted by Monte L Fullmer (Member # 2797) on 05-10-2009, 03:42 AM:

(That's right, Dustin - you're at a Carmike, which used to be an EXCELLENCE Theatre...my old company I used to work for...what a goofy company they were: Alan Silverman's company trying to be like Wal-Mart...)

Good, as I mention: maybe Carmike then will come out of the mire and be a better circuit...

-Monte

Posted by Bobby Henderson (Member # 840) on 05-10-2009, 12:01 PM:

I believe as long as details inside the auditorium continue to be ignored the current average situation with big theater companies will not improve. Matters may actually get worse.

One of the motives with converting to "digital" is removing as much labor out of the projection booth as possible. The projection systems can be automated to start movies on their own without an employee pressing any buttons. I wonder if the digital projection setups can have their play lists and schedules set up remotely. If that's the case then a lot of theater managers probably won't even have to touch the equipment at all. They'll just stay down in the lobby monitoring the concession stand the only area that seems to matter with big movie theater companies these days.

Of course the thing the executives at big theater chains may not realize or may underestimate is that digital projection systems are not fool proof. Errors will occur. Certain components in the system will fail. And with a digital projection system there is more stuff in the setup that can fail. Maybe the executives are counting on service providers like Cinedigm to keep tabs on the equipment. Unfortunately, with a lot of computer gear you have to be there in front of it to see what's really happening.

The situation with how audio is handled in movie theaters is already pretty bad and with even less attention being paid to what's happening in the projection booth and theater auditorium that situation may get worse.

It sucks that movie theaters typically make more of their income from concession sales than what they get from movie tickets. Still, the movie is the main reason why the customer showed up to the place. The movie is the "main course" of the product the theater is selling. I believe if a movie theater does as good a job as it can in showing the movie that will result in more customers visiting the theater and more stuff being sold at the concession counter. If the theater is showing movies in the tradition of "film done wrong" I'm not even going to be visiting the theater in the first place much less buying anything from the concession stand.

Posted by Jack Ondracek (Member # 1466) on 05-10-2009, 03:09 PM:

I'm not sure what you'd expect a "projectionist" to do in an all-digital theatre. Not that I've worked in one, but it seems that once you've "ingested" the feature and set up your playlists, there's not much to do but sit on your thumbs and hope something breaks.

The one all-digital theatre in my area does have an "operator" on-site. He does work the lower area of the theatre. However, as everything in the place is digital, including message and advertising boards, he does have primary responsibility for keeping everything running. From what I can see, the whole operation runs pretty well.

Posted by Joe Redifer (Member # 3) on 05-10-2009, 08:18 PM:

quote: Bobby Henderson
I wonder if the digital projection setups can have their play lists and schedules set up remotely. If that's the case then a lot of theater managers probably won't even have to touch the equipment at all.

They don't come out of the box that way, but keep an eye on Film-Tech for future products. Look at Brad's latest booth, nobody ever goes in there except to load new hard drives as they come in. Maybe once a year someone goes up and dusts off the vents and maybe cleans a lens or two.

Posted by James Westbrook (Member # 3690) on 05-11-2009, 02:09 AM:

What about the changing of Xenon bulbs? Someone has to do that on a regular basis...I would think.

Posted by Joe Redifer (Member # 3) on 05-11-2009, 01:11 PM:

They fly Brad down for that.