BAT4M FINAL SUMMATIVE - FINANCIAL ANALYSIS
COMPANY ONE: CINEPLEX ENTERTAINMENT INC.
COMPANY TWO: REGAL ENTERTAINMENT GROUP
BAT4M1 - 01
Wednesday, May 30th, 2012
TABLE OF CONTENTS
Part One: Company Background - Cineplex Entertainment Inc. 3-4
Part One: Company Background - Regal Entertainment Group
Part Two: Companies in the News - Cineplex Entertainment Inc.
Part Two: Companies in the News - Regal Entertainment Group 12-15
Part Three: Stock Prices - Graphs
Part Three: Stock Prices - Cineplex vs. Regal Entertainment
Part Four: Ratio Analysis - Cineplex Entertainment Inc.
Part Four: Ratio Analysis - Regal Entertainment Group
Part Four: Ratio Analysis - Comparison of Companies’ Ratios 28-30
Part Five: Investment Recommendation
Appendix A - News Articles
Appendix B - Financial Statements and Data
Appendix C - Works Cited
Part One: Company Background - Cineplex Entertainment Inc.
Introduction to Cineplex Entertainment:
Cineplex Entertainment is a public corporation in the film exhibitor industry that is based in North America. It shares trades on the Toronto Stock Exchange and is headquartered in Toronto, Ontario, Canada. It operates theatres from all over the country ranging from British Columbia to Quebec. Cineplex Entertainment is the largest motion picture exhibitor in Canada as it owns and leases 130 theatres with 1352 screens while serving 70 million guests annually. It is also the largest exhibitor of digital, 3D, and IMAX projections. It provides wages to more than 10 000 employees and there are a wide variety of jobs available to the public ranging from jobs such as marketing manager to projection coordinator.
Establishment of Cineplex Entertainment:
Nathan Nathanson founded Famous Players Canadian Corporation in 1920 and became the first president of the corporation. The Odeon Theatres of Canada was founded by Nathan’s son, Paul. In 1978, the Odeon Theatres of Canada merged with the Famous Players Canadian Corporation to become Canadian Odeon Theatres. In 1979, the inventor of the multi-screen theatre, Nathan Taylor and Garth Drabinsky opened the first Cineplex location in the basement of the Toronto Eaton Centre. After being one of Canadian Odeon Theatres’ main competitors for a long period of time, Cineplex moved on to purchase Canadian Odeon Theatres and became Cineplex Odeon Corporation. When Drabinsky lost ownership of Cineplex to its major investor, the Bronfman family, the Bronfmans decided to merge Cineplex Odeon Corporation with Sony’s Loews Theatres and became Loews Cineplex Entertainment. While all this was happening, in 1999, Ellis Jacob proceeded to be the founder of Galaxy Entertainment Inc. and in 2003, Loews Cineplex Entertainment merged with Galaxy Entertainment Inc. to become Cineplex Galaxy Income Fund. The owners of this chain finally proceeded to rename this corporation to Cineplex Entertainment Incorporation as it is known today.
Cineplex Entertainment has a unique business strategy as opposed to other companies. Their goal is to provide Canadians with a first-class movie-going experience while also maintaining and improving its position as a leading movie exhibitor in Canada. Cineplex Entertainment also expects to open three new theatres each year and the size of this corporation will allow them to explore new revenue opportunities quickly and profitably. They operate many theatres located in the major metropolitan markets and they offer advertisers a large number of screens as they act as another source of revenue. Cineplex Entertainment maximizes their efficiency by effectively managing their films, concessions, and other theatre level costs. Finally, Cineplex Entertainment earns additional revenue by...
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