Largest movie exhibitor buys four Hawai'i theaters
By Duncan Mansfield
Associated Press Writer
KNOXVILLE, Tenn. — Regal Entertainment Group, the country's largest movie exhibitor, announced Tuesday pending acquisitions that would expand its reach in the Northeast and for the first time to Hawai'i.
Regal plans to acquire 37 theaters with 384 screens, including all of San Ramon, Calif.-based Signature Theatres' holdings. Signature operates 26 theaters in California and four in Hawai'i.
On Oahu, Signature's theaters include the 18-screen Signature Dole Cannery in Honolulu; the Pearl Highlands 12 in Pearl City; the Windward Stadium 10 in Kaneohe; and on the Big Island, the Keauhou 7 at the Keauhou Shopping Center in Kailua-Kona.
"We have got the deals all signed up and we would expect to close all of the transactions no later than the third quarter," said Mike Campbell, co-CEO of Regal Entertainment.
Regal also will buy five theaters in Massachusetts, New York, New Jersey and the Washington, D.C., area from the successor to Hoyts Cinemas and two theaters from independent owners in Connecticut and Massachusetts.
"We haven't disclosed any purchase price," Campbell said.
Signature would be the 15th movie theater circuit acquired by Knoxville-based Regal.
Regal currently runs 545 theaters in 39 states under the Regal Cinemas, United Artists and Edwards Theatres brands. The company controls 6,020 movie screens — nearly 17 percent of all screens in the United States.
"We are going to continue looking at acquisition opportunities as they arise and make a determination as to whether to participate in those opportunities based on quality of screens, obviously; purchase price and geographic fit," Campbell said.
The Signature chain complements Regal's existing theater locations in California and the Hawai'i theaters are all "relatively new, have good market share and (offer) some opportunity" for growth, he said. Most offer stadium-type seating.
Regal disclosed the acquisitions during a first-quarter earnings report Tuesday. The company said revenue grew 2.3 percent to $540.5 million for the period. Profits appeared down compared to a year ago because first quarter 2003 included the Christmas holiday week, when movie attendance is high, and first quarter 2004 didn't.
The company had $22.8 million in net income, or 16 cents a share, for the first quarter ending April 1, compared to $35.3 million, or 27 cents a share, a year ago. Analysts with Thomson First Call predicted 15 cents.
Regal stock traded Tuesday at $22.99 a share on the New York Stock Exchange, down 10 cents.
