Regal Entertainment F2Q08 (Qtr End 6/26/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-07-24 09:12:06.0

Tags: Regal Entertainment Group

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Eric Handler with Lehman Brothers.

Eric Handler - Lehman Brothers

Thanks. Hopefully, three quick questions; one, can you just refresh our memory as far as Consolidated? How does their ticket prices and per cap concession spending compare to Regal? Is that a little bit of a drag or is that roughly in line?

Secondly, the benefit that you got from your new beverage agreement, is that a one-time item or is that a permanent benefit to your concession margin?

And then last, the screen count that you just provided, a year-end expectation of 6,746, I think that’s a little bit lower from what you were discussing last quarter, of something close to 6,800. Anything going on there?

Amy E. Miles

With respect to the ticket price and the per cap, really they are slightly under on a ticket price. It didn’t really affect the company’s overall, just because of their percentage of their screens to our total screen count. Their concession per caps are actually a little higher to in line, but again when you look at our overall numbers, Consolidated didn’t impact either one of those reported numbers, and again that’s just due to the proportion of their revenues to Regal.

With respect to the beverage agreement, as long as that -- that’s a contractual arrangement that goes out for the next seven years, so I would categorize that as a permanent benefit over that time period. And the one thing that we have included that probably brings our screen count down just a little bit here, things might have moved a little bit from timing but we have also assumed that we would have the screens that we need to divest with respect to the Consolidated acquisition completed by the end of the year.

Eric Handler - Lehman Brothers

Great. Thank you.

Operator

Our next question comes from Lloyd Walmsley with Thomas Weisel Partners.

Lloyd Walmsley - Thomas Weisel Partners

I was wondering if you could provide us with some color on how fast you think you could get 3D screens out in particular. I know you’ve given us color in the past on 2D screens but -- I’m sorry, on digital only screens, but on 3D specifically, I would love to know how many per month you think you could do. And then would just love to know what you guys are thinking as far as the SAG negotiations and how that would impact the film slate.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here