Regal Entertainment Group Reports Results for Third Quarter 2008 and Declares Quarterly...

Regal Entertainment Group Reports Results for Third Quarter 2008 and Declares Quarterly Dividend

KNOXVILLE, Tenn.--(Business Wire)--
Regal Entertainment Group (NYSE:RGC), a leading motion picture
exhibitor owning and operating the largest theatre circuit in the
United States, today announced fiscal third quarter 2008 results and
declared a cash dividend of $0.30 per common share.

Total revenues for the third quarter ended September 25, 2008 were
$757.6 million compared to total revenues of $752.9 million for the
third quarter of 2007. Net income of $31.6 million in the third
quarter of 2008 compared to net income of $58.0 million in the same
period of 2007. Diluted earnings per share were $0.21 for the third
quarter of 2008 compared to $0.36 during the third quarter of 2007.
Adjusted EBITDA(2) of $146.9 million for the third quarter of 2008
represented an Adjusted EBITDA margin of approximately 19.4%.
Reconciliations of non-GAAP financial measures are provided in the
financial schedules accompanying this press release.

Regal's Board of Directors also today declared a cash dividend of
$0.30 per Class A and Class B common share, payable on December 18,
2008, to stockholders of record on December 10, 2008. 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.

"We are pleased with the solid year to date box office results
that have been achieved despite the challenging economic environment,"
stated Mike Campbell, CEO of Regal Entertainment Group. "We are also
encouraged by the early fourth quarter results and the outlook for the
balance of the 2008 fiscal year," Campbell continued.

Forward-looking Statements:

This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements included herein, other than statements of historical
fact, may constitute forward-looking statements. Although the Company
believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Important factors that could
cause actual results to differ materially from the Company's
expectations are disclosed in the risk factors contained in the
Company's 2007 Annual Report on Form 10-K filed with the Securities
and Exchange Commission on February 26, 2008. All forward-looking
statements are expressly qualified in their entirety by such factors.

Conference Call:

Regal Entertainment Group management will conduct a conference
call to discuss third quarter 2008 results on October 23, 2008 at 9:30
a.m. (Eastern Time). Interested parties can listen to the call live on
the Internet through the investor relations section of the Company's
Web site: www.REGmovies.com, or by dialing 877-407-0778 (Domestic) and
201-689-8565 (International). Please dial in to the call at least 5 -
10 minutes prior to the start of the call or go to the Web site at
least 15 minutes prior to the call to download and install any
necessary audio software. When prompted, ask for the Regal
Entertainment Group conference call. A replay of the call will be
available beginning approximately two hours following the call. Those
interested in listening to the replay of the conference call should
dial 877-660-6853 (Domestic) or 201-612-7415 (International) and enter
account #286 and conference call ID #264086. In addition, this press
release and other pertinent statistical and financial information are
available in the investor relations section of the Company's Web site:
www.REGmovies.com.

About Regal Entertainment Group

Regal Entertainment Group (NYSE: RGC) is the largest motion
picture exhibitor in the world. The Company's theatre circuit,
comprising Regal Cinemas, United Artists Theatres and Edwards
Theatres, operates 6,782 screens in 551 locations in 39 states and the
District of Columbia. Regal operates theatres in all of the top 33 and
43 of the top 50 U.S. designated market areas. We believe that the
size, reach and quality of the Company's theatre circuit not only
provide its patrons with a convenient and enjoyable movie-going
experience, but is also an exceptional platform to realize economies
of scale in theatre operations.

Additional information is available on the Company's Web site at
www.REGmovies.com.

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Regal Entertainment Group
Consolidated Statements of Income Information
For the Fiscal Quarters Ended 9/25/08 and 9/27/07
(in millions, except per share data)
(unaudited)
Quarter Quarter Three Three
Ended Ended Quarters Quarters
Sept. Sept. Ended Ended
25, 27, Sept. 25, Sept. 27,
2008 2007 2008 2007
------- ------- --------- ---------
Revenues
Admissions $516.8 $515.8 $1,404.5 $1,400.4
Concessions 209.6 210.9 564.6 576.6
Other operating revenues 31.2 26.2 91.1 84.3
------- ------- --------- ---------
Total revenues 757.6 752.9 2,060.2 2,061.3

Operating expenses
Film rental and advertising
costs 282.0 279.4 744.9 749.8
Cost of concessions 30.4 29.3 78.6 82.2
Rent expense 94.1 85.6 267.4 249.9
Other operating expenses 197.2 183.8 546.3 524.9
General and administrative
expenses (including share-
based compensation expense of
$1.4 million and $1.1 million
for the quarters ended Sept.
25, 2008 and Sept. 27, 2007,
respectively, and $4.3 million
and $4.6 million for the three
quarters ended Sept. 25, 2008
and Sept. 27, 2007,
respectively) 15.5 15.3 46.3 48.1
Depreciation and amortization 51.1 45.6 147.3 138.0
Net loss (gain) on disposal and
impairment of operating assets 11.5 (3.6) 16.0 (0.8)
Joint venture equity including
former employee compensation 0.1 0.1 0.4 3.8
------- ------- --------- ---------
Income from operations 75.7 117.4 213.0 265.4

Interest expense, net 29.0 27.8 88.7 84.3
Gain on NCM transaction - - - (350.7)
Gain on sale of Fandango interest - (0.3) - (28.6)
Earnings recognized from NCM (7.1) (7.1) (21.4) (9.3)
Minority interest in earnings of
consolidated subsidiaries and
other 0.6 0.2 1.8 0.4
Loss on debt extinguishment - - 70.5 -
------- ------- --------- ---------
Income before income taxes 53.2 96.8 73.4 569.3
Provision for income taxes 21.6 38.8 31.0 229.5
------- ------- --------- ---------
Net income $31.6 $58.0 $42.4 $339.8
======= ======= ========= =========

Diluted earnings per share $0.21 $0.36 $0.28 $2.13
Adjusted earnings per diluted
share(1) $0.21 $0.36 $0.56 $0.71

Weighted average number of diluted
shares outstanding 153.8 160.5 153.8 159.3

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Consolidated Summary Balance Sheet Information
(dollars in millions)
(unaudited)
As of As of
Sept. 25, 2008 December 27, 2007
-------------- -----------------

Cash and cash equivalents $113.1 $435.2
Total assets 2,557.5 2,634.9
Total debt 2,024.4 1,965.5
Stockholders' deficit (223.7) (119.3)

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Operating Data
(unaudited)
Quarter Ended
-----------------------------
Sept. 25, 2008 Sept. 27, 2007
-------------- --------------
Theatres at period end 551 526
Screens at period end 6,782 6,355
Average screens per theatre 12.3 12.1
Attendance (in thousands) 66,813 69,251
Average ticket price $7.74 $7.45
Average concessions per patron $3.14 $3.05

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Reconciliation of EBITDA to Net Cash Provided by (Used in) Operating
Activities
(dollars in millions)
(unaudited)
Quarter Ended
-----------------------------
Sept. 25, 2008 Sept. 27, 2007
-------------- --------------

EBITDA $133.3 $170.2
Interest expense, net (29.0) (27.8)
Provision for income taxes (21.6) (38.8)
Deferred income taxes (1.7) 0.7
Changes in operating assets and
liabilities (125.7) (74.0)
Gain on sale of Fandango interest - (0.3)
Other items, net 15.3 0.1
-------------- --------------
Net cash provided by (used in)
operating activities $(29.4) $30.1
============== ==============

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Reconciliation of EBITDA to Adjusted EBITDA
(dollars in millions)
(unaudited)
Quarter Ended
-----------------------------
Sept. 25, 2008 Sept. 27, 2007
-------------- --------------

EBITDA $133.3 $170.2
Gain on sale of Fandango interest - (0.3)
Net loss (gain) on disposal and
impairment of operating assets 11.5 (3.6)
Share-based compensation expense 1.4 1.1
Joint venture employee compensation 0.1 0.1
Minority interest and other, net 0.6 0.2
-------------- --------------
Adjusted EBITDA(2) $146.9 $167.7
============== ==============

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Free Cash Flow
(dollars in millions)
(unaudited)
Quarter Ended
-----------------------------
Sept. 25, 2008 Sept. 27, 2007
-------------- --------------

Net cash provided by (used in)
operating activities $(29.4) $30.1
Capital expenditures (28.5) (24.2)
Proceeds from asset sales 0.3 21.1
-------------- --------------
Free cash flow(2) $(57.6) $27.0
============== ==============

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Reconciliation to Diluted Earnings Per Share and Net Income
(dollars in millions, except per share data)
(unaudited)
Quarter Ended
-----------------------------
Sept. 25, 2008 Sept. 27, 2007
-------------- --------------

Net income $31.6 $58.0
Gain on sale of Fandango interest,
net of related tax effects - (0.2)
-------------- --------------
Net income, excluding gain on sale of
Fandango interest, net of related
tax effects $31.6 $57.8

Weighted average number of diluted
shares 153.8 160.5

Adjusted earnings per diluted
share(1) $0.21 $0.36
Diluted earnings per share $0.21 $0.36

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(1) We have included adjusted earnings per diluted share, which is
diluted earnings per share excluding loss on debt
extinguishment, net of related tax effects, gain on sale of
Fandango interest, net of related tax effects and gain on NCM
transaction, net of related tax effects, because we believe it
provides investors with a useful industry comparative and is a
financial measure used by management to assess the performance
of our Company.

(2) Adjusted EBITDA (earnings before interest, taxes, depreciation
and amortization expense, gain on sale of Fandango interest,
net loss (gain) on disposal and impairment of operating
assets, share-based compensation expense, joint venture
employee compensation and minority interest and other, net)
was approximately $146.9 million, or 19.4% of total revenues,
for the quarter ended September 25, 2008. We believe EBITDA,
Adjusted EBITDA and Free Cash Flow provide useful measures of
cash flows from operations for our investors because EBITDA,
Adjusted EBITDA and Free Cash Flow are industry comparative
measures of cash flows generated by our operations and because
they are financial measures used by management to assess the
liquidity of our Company. EBITDA, Adjusted EBITDA and Free
Cash Flow are not measurements of liquidity under U.S.
generally accepted accounting principles and should not be
considered in isolation or construed as a substitute for other
operations data or cash flow data prepared in accordance with
U.S. generally accepted accounting principles for purposes of
analyzing our liquidity. In addition, not all funds depicted
by EBITDA, Adjusted EBITDA and Free Cash Flow are available
for management's discretionary use. For example, a portion of
such funds are subject to contractual restrictions and
functional requirements to pay debt service, fund necessary
capital expenditures and meet other commitments from time to
time as described in more detail in the Company's 2007 Annual
Report on Form 10-K filed with the Securities and Exchange
Commission on February 26, 2008. EBITDA, Adjusted EBITDA and
Free Cash Flow, as calculated, may not be comparable to
similarly titled measures reported by other companies.
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Regal Entertainment Group
Financial Contact:
Don De Laria, 865-925-9685
Vice President - Investor Relations
don.delaria@REGmovies.com
or
Media Contact:
Dick Westerling, 865-925-9539
Senior Vice President - Marketing
dick.westerling@REGmovies.com

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