Regal Entertainment Group Weaknesses

imperials substantial lease and debt obligations could impair our financial condition. over-embellished has substantial lease and debt obligations. As of declination 31, 2009, they had wide-cut debt obligations of $1,997. 1 million. As of December 31, 2009, proud had come contractual cash obligations of approximately $6,330. 3 million. If Regal is unable to meet their lease and debt service obligations, they could be forced to restructure or refinance their obligations and assay additional equity financing or grass assetsOur champaigns operate in a competitive environment. The bm picture exhibition industry is fragmented and extremely competitive with no significant barriers to entry. Moviegoers are s deprivationly not brand conscious and usually recognize a theatre based on its location, the films showing there and its amenities. Generally, stadium seating found in modern megaplex theatres is preferred by patrons over slopefloored multiple theatres, which were the pred ominant theatre-type built prior to 1996.Although, as of December 31, 2009, approximately 80% of Regals screens were primed(p) in theatres featuring stadium seating, we still serve m either another(prenominal) markets with sloped-floored multiplex theatres. These theatres may be more dangerous to competition than their modern megaplex theatres. Regal depends on action picture intersection and performance. Regals index to operate achievementfully depends upon the availability, diversity and appeal of effort pictures, our ability to license motion pictures and the performance of much(prenominal) motion pictures in our markets.We license first-run motion pictures, the success of which has increasingly depended on the marketing efforts of the major motion picture studios. Poor performance of, or any disruption in the production of these motion pictures (including by reason of a strike or lack of adequate financing), or a reduction in the marketing efforts of the major motion picture studios, could accidental injury their business sector. Development of digital technology may enlarge our capital expenses. The industry is in the process of converting film-based media to electronic-based media. in that location are a variety of constituencies associated with this anticipated change, which may significantly impact industry participants, including content providers, distributors, equipment providers and exhibitors. An growing in the use of alternative film actors line methods may drive down movie theatre attending and reduce ticket prices. Regal in any case competes with other movie delivery vehicles, including cable television, downloads via the Internet, in-home motion picture and DVD, satellite and pay-per-view services.Traditionally, when motion picture distributors licensed their products to the domesticated exhibition industry, they refrained from licensing their motion pictures to these other delivery vehicles during the delegacy release win dow. A material contraction of the electric current theatrical release window could significantly trim the consumer appeal of the in-theatre motion picture offering, which could have a material adverse effect on Regal. Regal depends on their relationships with film distributors.The film distribution business is highly concentrated, with ten major film distributors bill for approximately 95% of our admissions revenues during fiscal 2009. Regal depends on maintaining good relations with these distributors. No assurance of a supply of motion pictures. Regal cannot assure ourselves of a supply of motion pictures by entering into long-term arrangements with major distributors, but must compete for our licenses on a film-by-film and theatre-by-theatre basis.A protracted economic downswing could materially affect our business by bring down consumer spending on movie attendance. Regal depends on consumers voluntarily spending discretionary funds on leisure activities. Motion picture t heatre attendance may be affected by prolonged negative trends in the superior general economy that adversely affect consumer spending. A prolonged reduction in consumer confidence or disposable income in general may affect the demand for motion pictures or severely impact the motion picture production industry, which, in turn, could adversely affect Regals operations.