Date: Fri, 19 Dec 1997 03:06:52 GMT Server: Apache/1.1.3 Content-type: text/html Content-length: 14449 Last-modified: Wed, 09 Jul 1997 18:06:59 GMT Regal Cinemas Inc. - History
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Michael CampbellMichael Campbell is chairman and chief executive officer of Regal Cinemas Inc., the sixth largest theatre circuit in the United States. Campbell founded the Knoxville, Tennessee.-based chain in 1989 with the purchase of a twin screen theatre in Titusville, Florida Over the past five and a half years, Regal has come to encompass 1417 screens in 20 states; 900 more are planned for the next 24-36 months.

Campbell got his start in the exhibition business in August 1982 when he and partner Neal Melton purchased a single-screen theatre in New Tazwell, Tenn.. a town with a population of 5,000. The old downtown theatre had been closed by its owner when they purchased it. 'It was a quasi-hobby for me at the time," says Campbell, who was a manager for the 61- store supermarket chain White Stores. "The first film we showed was 'ET.' The lines were around the block. We thought, 'This is a great business to be in!' Of course, we soon found out that not every movie is 'E.T.' But I thought [the exhibition industry] was intriguing, and a lot more exciting than operating a supermarket."

Four months later, Campbell left his management-level job with the supermarket chain, after spending 11 years working his way up the ranks. "It was a bit frightening, because at first we only had one theatre, and we had to support two families. But we were willing to take the plungeówe had enough faith in what we were doing. And once we had a flavor for the business, there was no looking back. By December Campbell's Premiere Cinemas was in the process of building a second theatre: a four-screen complex at a regional mall in Middlesboro, Ky. In June 1983, the four-plex opened its doors to the public.

With no available capital for loans, Campbell first borrowed money to finance the theatres, primarily through a small, hometown bank in New Tazewell. By the end of 1986. the Premiere Cinemas chain had grown to 45 screens in 13 small-town locations in Kentucky, Tennessee and North Carolina.

To continue operating at this level. the Premiere partners decided to seek venture capital so they could continue to build the chain. In October 1987, they finalized a deal lo sell a portion of Premiere Cinemas to a group of venture capital companies in the southeast for $2 million. With that financing and an additional loan from a larger bank. they were able to expand Premiere to 135 screens.

Two years later, in 1989, the Texas-based Cinemark Theatres chain approached Campbell with an offer to buy out Premiere. Negotiations began in April. An agreement was signed in October of that year, which generated a substantial profit for Premiere's management and shareholders. At the time of the sale, Premiere Cinemas encompassed 143 screens in the states of Kentucky, Tennessee, Georgia Ohio and North Carolina.

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Three weeks after selling Premiere, Campbell returned to the theatre business. founding Regal Cinemas Inc. for the purpose of acquiring and constructing movie theatres while he remains chairman, chief executive officer and president. His goal was to step up the market size for the new theatre circuit from small to midsize markets. With Melton along as Regal's vice president of construction, Campbell made Regal's first acquisition, a two-screen movie house in Titusville. Fla

From November 1989 to June 1993, Regal Cinemas grew to 315 screens. In June 1993. Regal conducted an initial public offering selling its stock for $8.62 a share. By June 1995. its ticker was up to at $32 a share, an increase of almost 300 percent.

FUNSCAPE
Regal Cinemas' first FunScape entertainment center, located in Chesapeake, Va.

Regal now operates throughout the eastern United States with 1417 screens. Campbell predicts that in the next 24-36 months, it will add 900 more screens. The recent announcement that Regal will acquire Cobb Cinemas will add an additional 671 screens positioning Regal as the third largest theatre exhibitor in the United States. With the opening of FunScape, Regal's new, 95,000-square foot entertainment complex in Chesapeake, VA, in 1995 the company had additionally diversified its operations. The all-indoor entertainment park features a state-of-the-art 13-screen multiplex theatre, a 36-hole, tri-level miniature golf course, a Victorian-era cityscape of shops. food courts, children's play areas, arcades motion simulation theatres and virtual-reality games. Three other FunScape locations are currently in operation in Rochester, N.Y., Syracuse, N.Y., and Brandywine Delaware; two others are scheduled to open in 1997, both in Ft. Lauderdale, Florida.

Surrounded by a young but energetic group of managers, Regal Cinemas continues to expand its hold in the exhibition business. Forbes Magazine has profiled Campbell and has twice named Regal in its top 100 growth companies in the United States.

Campbell attributes its success to building expensive-looking theatres while keeping a close eye on the bottom-line. Others say he has the golden touch.


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