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Top 5 Companies in the Movies & Entertainment Industry With the Highest Debt to EBITDA Ratio (NAVR, RDI, LNET, RGC, LYV)

By Nick Russo

Below are the three companies in the Movies & Entertainment industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Navarre ranks highest with a a debt to EBITDA ratio of 9.0. Following is Reading International with a a debt to EBITDA ratio of 4.7. LodgeNet Interactive ranks third highest with a a debt to EBITDA ratio of 4.6.

Regal Entertainment Group follows with a a debt to EBITDA ratio of 4.0, and Live Nation rounds out the top five with a a debt to EBITDA ratio of 3.9.

SmarTrend recommended that its subscribers protect gains by selling shares of LodgeNet Interactive on December 10th, 2012 by issuing a Downtrend alert when the shares were trading at $0.14. Since that call, shares of LodgeNet Interactive have fallen 85.2%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio navarre amex:rdi reading international lodgenet interactive regal entertainment group Live Nation