Bloomberg reports that shares in Regal rose the most in three years following yesterday's announcement that the company's Board of Directors "has authorized the exploration of strategic alternatives to enhance shareholder value, which may include a potential sale of the Company."
Here's the official news release from Regal:
KNOXVILLE, Tenn. -- Regal Entertainment Group (NYSE: RGC), a leading motion picture exhibitor owning and operating the largest theatre circuit in the United States, today reported fiscal third quarter 2014 results.
Total revenues for the third quarter ended September 25, 2014 were $693.8 million compared to total revenues of $813.1 million for the third quarter ended September 26, 2013. Net income attributable to controlling interest in the third quarter of 2014, was $26.7 million compared to $75.1 million in the third quarter of 2013. Diluted earnings per share was $0.17 for the third quarter of 2014 compared to $0.48 for the third quarter of 2013. Adjusted diluted earnings per share(1) was $0.18 for the third quarter of 2014 compared to $0.38 for the third quarter of 2013. Adjusted EBITDA(3) was $122.1 million for the third quarter of 2014 compared to $177.3 million for the third quarter of 2013. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Regal's Board of Directors today declared both a quarterly cash dividend of $0.22 and a special cash dividend of $1.00 per Class A and Class B common share, each payable on December 15, 2014, to stockholders of record on December 4, 2014. The Company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the Board of Directors depending on available cash, anticipated cash needs, overall financial condition, loan agreement restrictions, future prospects for earnings and cash flows as well as other relevant factors.
The Company also announced today that its Board of Directors has authorized the exploration of strategic alternatives to enhance shareholder value, which may include a potential sale of the Company. While the Board of Directors has great confidence in the Company's management team and its strategic plan, the combination of Regal's continued strong performance and attractive industry dynamics has led the Board to conclude that this is an opportune time to conduct a thorough review of options.
"Commitment to delivering shareholder value has been the cornerstone of our strategy for many years and we believe today's announcement along with the declaration of our sixth special dividend clearly demonstrate that commitment," stated Amy Miles, CEO of Regal Entertainment Group. "Looking ahead, we are optimistic regarding the potential for box office success during the upcoming holiday season and throughout 2015," Miles continued.
The Board of Directors has retained Morgan Stanley & Co. LLC, Inc. as its financial advisor to assist in the review process. The Company has not set a definitive timetable for completing its exploration of strategic alternatives and there can be no assurance that the process will result in any specific outcome. The Company does not intend to disclose further developments during this process, unless and until its Board of Directors approves a specific course of action or otherwise concludes the review.