Regal Entertainment Group: Addressing Industry Dependency and Differentiation

7165 WordsJan 21, 201329 Pages
| Regal Entertainment Group: Addressing Industry Dependency and DifferentiationClaire Fuller BA 301 Final Term Paper Section 003 June 6, 2012 Claire Fuller BA 301 Final Term Paper Section 003 June 6, 2012 | Executive Summary Regal Entertainment Groups is the parent company of Regal Cinemas, which is made up of Regal Cinemas, the United Artists Theaters, and the Edwards Theater. It runs the largest theater circuit in the U.S., and uses the multiplex cinema model in metropolitan and metropolitan growth areas. The movie theater industry is highly competitive, both within the film entertainment industry (as with Netflix and pirated films) and with substitute goods, such as live performances, restaurants, and sporting events. In…show more content…
These dividends have been distributed for the past four quarters (Form 10-K 97). Regal anticipates continued dividends in the foreseeable future, but note that dividends are considered quarterly and are only paid when their Board of Directions approves them. From May of 2002 to the end of December of 2011, Regal has returned $3.3 billion in cash dividends to their stockholders (Form 10-K 5). The movie theater industry as a whole has a fairly low profit margin to dip into, and Regal has the same approximate costs and revenues as its competitors (Mintel – Leading Companies). Regal’s 2011 10-K states a net income of $40 million dollars, and cash and cash equivalents of $253 million, with $174 million in accounts payable (54); Regal appears confident in its ability to met its obligations. Current Activities In 2003, a year after its consolidation, Regal removed video games showing "graphic depictions of sexual behavior or nudity," "graphically violent character deaths" or "human-like characters suffering bloodshed and/or dismemberment." It also removed games depicting “violence toward law enforcement officers or other figures of authority or the ‘glorification of illegal activity (Earnest).’” A potential reason for this decision may be Regal’s major shareholder, Philip Anschutz, who

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