Regal Entertainment (RGC) discusses industry-wide capacity, studio marketing expenses and film release schedules (quotes from conf call)

Below are some comments from Regal Entertainment (RGC) from its February 10, 2005 conference call with investors. (Quotes from the CCBN StreetEvents transcript.)

On industry-wide capacity:

"…. if we can keep that screen growth in that historical 2.5 to 3 percent a year, like we've seen over time. That is essentially a replacement rate. And what we've seen recently is…. a disproportionate amount of the growth seems to be coming in secondary and third tier markets that may have escaped a lot of the stadium building the first few years…..what I see is the industry returning after some time, some years of overbuilding followed by a decline in screen count as you're going back to the normal replacement rate now."

On studio marketing expenses:

…. they continue to be rising at the studio level. I think the payback there clearly is obnoxious in the theatrical market but there is some benefit down stream…. you will continue to see some increases there I think in line with what we've seen in the last few years.

On the number of upcoming releases:

"…. the number of releases appears to be very stable for the next couple years. And whether it's up 5 percent or down 5 percent I think on an annual basis, as long as it within a range I think it's kind of irrelevant as to what that does for the ultimate box office."