Anschutz Leaving The Balcony?

Regal Entertainment Group, owned by Anschutz and operating the country’s largest theater chain, announced Oct. 27 it is considering going on the sales block, among other “strategic alternatives.”

Regal CEO Amy Miles made the announcement just a year after Anschutz called off the sale of AEG. The company said it hired Morgan Stanley to help review the possible sale and other options, according to the New York Times.

The announcement coincided with Regal’s release of third quarter earnings after a generally dismal summer at movie box offices. The company said net income for the quarter ended Sept. 25 was $26.7 million, or 18 cents a share, 64.5 percent down from the previous year’s $75.1 million, or 38 cents a share.

Revenue dropped about 15 percent to $693.8 million from $813.1 million.

The news that Regal, a majority of which was acquired by Anschutz in 2001, might be for sale came as a surprise to Wall Street.

“We were definitely surprised by the news and had always viewed the company as a consolidator,” MKM Partners analyst Eric Handler told the Wall Street Journal. “In our opinion, this news most likely reflects a decision made by … owner Phil Anschutz rather than management to unlock greater value for the shares.”

While the summer box office was already considered weak, Regal still underperformed, according to the paper. Yet analysts point to a number of highly anticipated films to be released during the holiday season and into next year, questioning the announcement’s timing – but also taking note of Anschutz’s knack for timing the market. Regal Entertainment Group is valued at $3.3 billion, according to the Journal.