Regal Posts 3Q Loss But Sees Improvement Ahead

KNOXVILLE, Tenn. (AP) — Movie theater operator Regal Entertainment Group said Thursday it swung to a loss in the third quarter as sales dropped by a double-digit percentage and it made bigger interest payments.

The company, based in Knoxville, Tenn., lost $1.8 million, or a penny per share, in the quarter that ended Oct. 1. That compares to with profit of $31 million, or 20 cents per share, a year earlier.

Adjusted profit of 5 cents per share fell short of a 7-cent-per-share consensus estimate of analysts polled by Thomson Reuters.

Revenue fell 11 percent to $673.5 million from $757.6 million, also missing analysts' $701.8 million average estimate. Admissions declined to $463.4 million from $516.8 million and concessions fell as well, partially due to a shift in its fiscal calendar and the drop-off in the California market, which accounts for more than 21 percent of Regal's revenue.

Regal also noted that last year's third-quarter included the release of the Batman movie "The Dark Night," which is the second-highest grossing film of all-time. Some of the highlights for this third quarter include "Harry Potter and the Half-Blood Prince" and "Ice Age, Dawn of the Dinosaur" — the third highest grossing 3-D film ever.