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» Film-Tech Forum   » Operations   » Ground Level   » Regal Entertainment Group acquires Hollywood Cinemas (Page 1)

 
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Author Topic: Regal Entertainment Group acquires Hollywood Cinemas
Michael McGovern
Film Handler

Posts: 57
From: New Britain, CT, USA
Registered: May 2008


 - posted 02-19-2013 11:37 PM      Profile for Michael McGovern     Send New Private Message       Edit/Delete Post 
http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-regal-acquisition-20130219,0,3428534.story

I wonder if Regal is ever going to stretch themselves too thing with all these acquisitions? I know Hollywood operates a few locations that are waaaaaaay out there like in Guam, Samoa, and Northern Mariana Islands, I wonder if these locations were included? I can't imagine Regal operating theaters in such remote areas, it wouldn't make sense financially to do so if you're only going to have a handful of locations. My guess is those theaters are or will be sold separately to local buyers, or Regal is just going to buy them and shutter them. They do operate some very successful locations in Hawaii and Alaska, but even that's not nearly as far way from the continental US as the other places are.

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 02-19-2013 11:40 PM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
The Story below:
quote:

By Richard Verrier
February 19, 2013, 4:55 p.m.

Shares of Regal Entertainment gained modestly Tuesday after the nation's largest theater chain announced it had reached a deal to acquire Hollywood Theaters.

Regal Entertainment Group said it has entered into an agreement to buy Hollywood Theaters, a Portland, Ore., chain that operates 43 theaters in 16 states, for $191 million in cash and about $47 million of assumed lease obligations. Most of Hollywood's cinemas are concentrated in Texas, Missouri, Hawaii and Kansas.

Investors responded favorably to the news. Regal shares closed up 3% at $15.83. Shares have climbed 9% this year for Regal, based in Knoxville, Tenn.

“Regal is well-positioned to once again generate results above expectations in 2013 driven by its leading industry position on a robust film slate,” Eric Wold, an analyst with B. Riley Caris in San Francisco, said today in a research note.

The acquisition, subject to regulatory approval, would add 513 screens to Regal's portfolio, which includes 6,880 screens in 540 locations.

The Hollywood Theaters deal will add to the company's cash flow, Regal Chief Executive Amy Miles said in a statement. Such 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," Miles added.

The deal is the latest in a string of consolidations in the U.S. exhibition industry. Cinemark USA Inc., the nation's third largest theater chain, announced in November that it was acquiring Rave Cinemas, the Dallas chain that operates the former Bridge theater in Los Angeles, for $240 million.

Carmike Cinemas, the Columbus, Ga., chain, said it had already signed an agreement to buy 16 theaters with 251 screens from Rave for $19 million in cash and $100.4 million of assumed lease obligations.

China's Dalian Wanda Group last year acquired AMC Entertainment, the nation's second-largest theater chain, for $2.6 billion.

And this small story on Cinemark

quote:


Cinemark USA, Inc., the nation's third largest theater chain, said it is acquiring Rave Cinemas, the Dallas, Texas based chain that operates the former Bridge theater in Los Angeles, for $240 million.

The deal, which is subject to regulatory approval, includes 32 theaters located in 12 states, representing 483 screens.

Based in Plano, Texas, Cinemark operates 461 theatres with 5,207 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries.

"The acquisition of these high quality assets will further enhance Cinemark's diversified domestic footprint, including the expansion of our presence in the New England market," Tim Warner, Cinemark's Chief Executive Officer said in a statement.

The theaters generated revenues of $228 million and net income of $21.9 million in the last year.

Launched in 1999, Rave expanded by acquiring and renovating theaters in underserved smaller markets in the South and Midwest, including Ft. Wayne, Ind., Baton Rouge, La., and Peoria, Ill.

The chain, backed by TowerBrook Capital Partners, a New York investment firm that owns the alcoholic beverage superstore BevMo, was an early player in screening live sporting events and concerts in theaters.

The deal is the latest consolidation in the U.S. exhibition industry. Last month, Carmike Cinemas, the Columbus, Ga.-based chain, said it had signed an agreement to buy 16 theaters with 251 screens from Rave for $19 million in cash and $100.4 million of assumed lease obligations.

China's Dalian Wanda Group recently acquired AMC Entertainment, the nation's second largest theater chain for $2.6 billion.


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James Westbrook
Phenomenal Film Handler

Posts: 1133
From: Lubbock, Texas, Usa
Registered: Mar 2006


 - posted 02-20-2013 12:56 AM      Profile for James Westbrook   Email James Westbrook   Send New Private Message       Edit/Delete Post 
McAuthur Marketplace 16 in Irving was originally opened by UA/Regal, ended up in Hollywood's hands...and, if the deal does not fall through, will end up with Regal again.
Regal will also be re-entering Midland and Odessa, which they also left many years ago. Maybe before Regal acquired UA, I believe UA sold some of their properties to Hollywood, a lot of which have closed. The theaters in Midland and Odessa were built new by Hollywood.
Strange scenes in the gold mine...

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Maybelline Cabrera
Film Handler

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From: Saipan, MP, Northern Mariana Islands
Registered: Sep 2007


 - posted 02-20-2013 01:16 AM      Profile for Maybelline Cabrera   Email Maybelline Cabrera   Send New Private Message       Edit/Delete Post 
Michael,

I work with the Hollywood Theaters out here in Saipan (Northern Mariana Islands) and yep, all three out here are included in the deal.

May

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001


 - posted 02-20-2013 09:26 AM      Profile for Bobby Henderson   Email Bobby Henderson   Send New Private Message       Edit/Delete Post 
I wouldn't be surprised to see Regal shut down some of the existing Hollywood Theaters locations. Some of Hollywood's theaters are fairly nice, like the 14-plex they recently built just north of Colorado Springs. Others aren't so great.

I'm surprised the Hollywood Spotlight 14 in Norman is still open. I wasn't impressed with the place when it opened back in 1997. Now the Moore Warren 14 (plus IMAX & 2 "Directors Suites" houses) is just a few miles north on I-35. It outclasses the Spotlight 14 in every way. Regal will have to do a lot to get that existing theater competitive with the Warren location. That might involve demolishing the existing theater and building something brand new. Perhaps that's really the plan.

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Dennis Benjamin
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From: Denton, MD
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 - posted 02-20-2013 09:42 AM      Profile for Dennis Benjamin   Author's Homepage   Email Dennis Benjamin   Send New Private Message       Edit/Delete Post 
My Regal related quote regarding this:

"All your theatres are belong to us".

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Mike Blakesley
Film God

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From: Forsyth, Montana
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 - posted 02-20-2013 09:56 AM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
I suppose someday there will just be one gargantuan company owning all the chains.

Then Disney will buy that company, decide it's not profitable enough, and close all the theatres down.

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James Westbrook
Phenomenal Film Handler

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From: Lubbock, Texas, Usa
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 - posted 02-20-2013 10:43 AM      Profile for James Westbrook   Email James Westbrook   Send New Private Message       Edit/Delete Post 
Speaking of chains, I heard on the radio this morning Office Max and Office Depot may be merging.
Regal may want to keep Midland and Odessa, as the grosses in both towns have gone up due to the influx of oil money.

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Jack Ondracek
Film God

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From: Port Orchard, WA, USA
Registered: Oct 2002


 - posted 02-20-2013 11:22 AM      Profile for Jack Ondracek   Author's Homepage   Email Jack Ondracek   Send New Private Message       Edit/Delete Post 
A slogan from the Borg came to mind when I read this.

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Buck Wilson
Jedi Master Film Handler

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From: St. Joseph MO, USA
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 - posted 02-20-2013 06:33 PM      Profile for Buck Wilson   Email Buck Wilson   Send New Private Message       Edit/Delete Post 
I love how Film-Tech knew about this before I did, and I work at a Hollywood! Just found out today, however Regal did a very through 'inspection' of all the facilities a number of weeks back.

Awfully curious to see what all changes......

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Claude S. Ayakawa
Film God

Posts: 2738
From: Waipahu, Hawaii, USA
Registered: Aug 2002


 - posted 02-20-2013 07:03 PM      Profile for Claude S. Ayakawa   Author's Homepage   Email Claude S. Ayakawa   Send New Private Message       Edit/Delete Post 
Mike,

I do not think Disney and other studios are allowed to own and operate thratres anymore. Fox, Warner and Lowes (MGM) used to but they had to sell their theaters when the government made them do it.

There used to be Hollywood theatres on Oahu here in Hawaii but they have all closed. I think there are a few on the neighbor islands including one or two on Maui.

-Claude

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Mike Blakesley
Film God

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From: Forsyth, Montana
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 - posted 02-20-2013 09:16 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
Claude I was mostly making a joke, what with Disney being the all-devouring conglomerate that it is. However I don't think it is illegal for studios to own theaters anymore. (I'm not sure about that though.)

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Maybelline Cabrera
Film Handler

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From: Saipan, MP, Northern Mariana Islands
Registered: Sep 2007


 - posted 02-20-2013 09:21 PM      Profile for Maybelline Cabrera   Email Maybelline Cabrera   Send New Private Message       Edit/Delete Post 
quote: Buck Wilson
I love how Film-Tech knew about this before I did, and I work at a Hollywood! Just found out today, however Regal did a very through 'inspection' of all the facilities a number of weeks back.

Awfully curious to see what all changes......

Heh, I actually found out early yesterday and contemplated on whether I should post the article here or not. I wonder how everything will pan out this summer.

May

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Michael McGovern
Film Handler

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From: New Britain, CT, USA
Registered: May 2008


 - posted 02-20-2013 10:29 PM      Profile for Michael McGovern     Send New Private Message       Edit/Delete Post 
Buck - Good luck, I was part of a Regal merger in 2004, and the differences were night and day. Any local autonomy you might have over your own theater is gone, Regal is very much a company that like to micro manage down to the very last detail. They are very Disney-esque in that they want to present themselves as more than just a movie theater, they want to present themselves as an experience.

Regal doesn't have employees, they have "cast members" and they don't have customers, they have "guests". Basically any story you've ever heard about companies bending over backwards to placate insane and unprofitable customers is magnified 10x with them in my experience. They would rather lose 5 good employees than 1 bad customer. Oh, and pay for staff and management is outrageously low compared to the amount of work and responsibilities they expect you to handle.

I honestly have very few good things to say in my experience from working there, and I know others on this board that have worked for them who have even fewer good things to say than I do. So my best advice would be, good luck.

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Dennis Benjamin
Phenomenal Film Handler

Posts: 1445
From: Denton, MD
Registered: Feb 2002


 - posted 02-21-2013 10:09 AM      Profile for Dennis Benjamin   Author's Homepage   Email Dennis Benjamin   Send New Private Message       Edit/Delete Post 
Regal Entertainment Group is a company that is run by the numbers:

As an employee you are given a employee number. You work at a numbered location in a numbered region.

That's it.

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