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This topic comprises 2 pages: 1 2
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Author
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Topic: Regal Entertainment Group acquires Hollywood Cinemas
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Michael McGovern
Film Handler
Posts: 57
From: New Britain, CT, USA
Registered: May 2008
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posted 02-19-2013 11:37 PM
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
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posted 02-19-2013 11:40 PM
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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Michael McGovern
Film Handler
Posts: 57
From: New Britain, CT, USA
Registered: May 2008
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posted 02-20-2013 10:29 PM
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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