The Company reports positive net earnings and
Adjusted EBITDA for the quarter as both Marcus Theatres and Marcus
Hotels & Resorts again significantly outperform their
respective industries
The Marcus Corporation (NYSE: MCS) today reported results for
the third quarter fiscal 2021 ended September 30, 2021.
“Our results for the third quarter affirm the recovery is
accelerating in both our divisions,” said Gregory S. Marcus,
president and chief executive officer of The Marcus Corporation.
“As the company returned to profitability in the quarter, we
reported nearly $25 million in Adjusted EBITDA thanks to
contributions from both businesses, which again significantly
outperformed their respective industries. Our competitive
differentiators are the driving force behind the strong pace of our
recovery. The combination of our diversified business model,
comparatively lower debt than our peers, and the fact that we own
most of our underlying real estate provides value to our
shareholders and has allowed us to successfully navigate the
pandemic and return to profitability faster than anticipated.”
Third Quarter Fiscal 2021
Highlights
- Total revenues for the third quarter of fiscal 2021 were
$145,862,000 compared to total revenues of $33,591,000 for the
third quarter of fiscal 2020.
- Operating income was $6,273,000 for the third quarter of fiscal
2021, compared to operating loss of $47,987,000 for the prior year
quarter.
- Net income attributable to The Marcus Corporation was
$1,759,000 for the third quarter of fiscal 2021, compared to net
loss attributable to The Marcus Corporation of $39,440,000 for the
same period in fiscal 2020.
- Net earnings per diluted common share attributable to The
Marcus Corporation was $0.06 for the third quarter of fiscal 2021,
compared to net loss per diluted common share attributable to The
Marcus Corporation of $1.30 for the third quarter of fiscal
2020.
- Adjusted net earnings attributable to The Marcus Corporation
was $275,000 for the third quarter of fiscal 2021, compared to
Adjusted net loss attributable to The Marcus Corporation of
$36,992,000 for the third quarter of fiscal 2020.
- Adjusted net earnings per diluted common share attributable to
The Marcus Corporation was $0.01 for the third quarter of fiscal
2021, compared to Adjusted net loss per diluted common share
attributable to The Marcus Corporation of $1.22 for the prior year
quarter.
- Adjusted EBITDA was $24,515,000 for the third quarter of fiscal
2021, compared to a loss of $25,808,000 for the comparable prior
year period.
- Adjusted loss attributable to The Marcus Corporation, Adjusted
loss per diluted common share attributable to The Marcus
Corporation and Adjusted EBITDA reflect adjustments made by the
company to eliminate the favorable impact of government grants
received during the third quarter of fiscal 2021 and to eliminate
the impact of a nonrecurring income tax adjustment and certain
nonrecurring property closure expenses, reopening expenses and
impairment charges during the third quarter of fiscal 2020.
First Three Quarters Fiscal 2021
Highlights
- Total revenues for the first three quarters of fiscal 2021 were
$289,196,000 compared to total revenues of $200,984,000 for the
first three quarters of fiscal 2020.
- Operating loss was $55,498,000 for the first three quarters of
fiscal 2021, compared to operating loss of $123,249,000 for the
first three quarters of fiscal 2020.
- Net loss attributable to The Marcus Corporation was $49,737,000
for the first three quarters of fiscal 2021, compared to net loss
attributable to The Marcus Corporation of $85,821,000 for the first
three quarters of fiscal 2020.
- Net loss per diluted common share attributable to The Marcus
Corporation was $1.66 for the first three quarters of fiscal 2021,
compared to net loss per diluted common share attributable to The
Marcus Corporation of $2.84 for the first three quarters of fiscal
2020.
- Adjusted net loss attributable to The Marcus Corporation was
$49,403,000 for the first three quarters of fiscal 2021, compared
to Adjusted net loss attributable to The Marcus Corporation of
$88,688,000 for the first three quarters of fiscal 2020.
- Adjusted net loss per diluted common share attributable to The
Marcus Corporation was $1.64 for the first three quarters of fiscal
2021, compared to Adjusted net loss per diluted common share
attributable to The Marcus Corporation of $2.93 for the first three
quarters of fiscal 2020.
- Adjusted EBITDA was $5,830,000 for the first three quarters of
fiscal 2021, compared to a loss of $43,804,000 for the first three
quarters of fiscal 2020.
- Adjusted loss attributable to The Marcus Corporation, Adjusted
loss per diluted common share attributable to The Marcus
Corporation and Adjusted EBITDA reflect adjustments made by the
company to eliminate the favorable impact of government grants
received and the impact of impairment charges during the first
three quarters of fiscal 2021, as well as the impact of a favorable
income tax adjustment and certain nonrecurring property closure
expenses, reopening expenses and impairment charges during the
first three quarters of fiscal 2020.
Marcus Theatres®
Bolstered by increasing vaccination rates, improving consumer
confidence and the release of a greater number of high-performing
new films, the division’s operating loss improved significantly in
the third quarter of fiscal 2021. For the first time since the
pandemic began, Marcus Theatres returned to positive Adjusted
EBITDA in the third quarter of fiscal 2021.
Comparing admission revenues to pre-pandemic fiscal 2019
results, Marcus Theatres significantly outperformed the industry by
nearly 8 percentage points during the third quarter of fiscal 2021
and by 6 percentage points during the first three quarters of
fiscal 2021, according to data received from Comscore. Based on
this data, the company believes Marcus Theatres continues to be one
of the top performing theatre circuits in the United States.
“We are optimistic about the continuing rebound in the movie
theatre industry and at Marcus Theatres in particular,” said
Rolando Rodriguez, chairman, president and chief executive officer
of Marcus Theatres. “The film studios continued to release exciting
new films during the quarter, driving significant improvement in
attendance across our circuit. Our guests are continuing to enjoy
the moviegoing experience as evidenced by strong concession
revenues during both the quarter and first three quarters of fiscal
2021, which further contributed to our results. As more consumers
return to seeing movies the way they are meant to be seen, we are
encouraged by the growing number of studios who have publicly
recognized the importance of the exclusive theatrical window to the
success of their films.”
The highest grossing films in the fiscal 2021 third quarter
included “Black Widow,” “Shang-Chi and the Legend of the Ten
Rings,” “Jungle Cruise,” “Free Guy,” and “Space Jam: A New Legacy.”
Momentum continued into October, as the division experienced its
best month at the box office in the COVID era, with films such as
“Venom: Let There Be Carnage,” “The Addams Family 2,” “No Time to
Die,” “Halloween Kills,” and “Dune” contributing to early fourth
quarter results. Highly anticipated new films scheduled for release
in the remainder of the fourth quarter of fiscal 2021 include
“Eternals,” “Ghostbusters: Afterlife,” “King Richard,” “Encanto,”
“West Side Story,” “Spider-Man: No Way Home,” “Sing 2,” “The Kings
Man,” and “The Matrix Resurrections.” Looking ahead to 2022, the
film slate is expected to remain very strong, including a long list
of familiar titles and franchises.
Marcus® Hotels &
Resorts
Marcus Hotels & Resorts again experienced strong operating
performance in the third quarter of fiscal 2021, with all eight
company-owned hotels and resorts contributing to our significantly
improved results. RevPAR increased at all company-owned properties
during the third quarter of fiscal 2021 compared to the same period
in the year prior. For the second straight quarter, Marcus Hotels
& Resorts reported positive Adjusted EBITDA.
Comparing RevPAR to pre-pandemic fiscal 2019 results, Marcus
Hotels & Resorts continued to significantly outperform the
industry by approximately 14 and 11 percentage points for the third
quarter of fiscal 2021 and first three quarters of fiscal 2021,
respectively. The division also outperformed its competitive sets
during the third quarter and first three quarters by approximately
7 and 8 percentage points, respectively.
“Our operating results significantly exceeded expectations
during the quarter,” said Michael Evans, president of Marcus Hotels
& Resorts. “While we are not yet back to 2019 levels, total
revenues for the third quarter of fiscal 2021 were approximately 88
percent of what was reported in the third quarter of fiscal 2019, a
sign that the rebound is making considerable progress. The
drive-to-leisure consumer continues to push the most demand at all
our company-owned properties during the quarter. In particular, the
return of special events such Milwaukee’s Summerfest, Major League
Baseball, the Milwaukee Bucks championship run, and the Ryder Cup
served as significant demand and pricing drivers during the
quarter. Average daily rate during the quarter exceeded
pre-pandemic levels from the third quarter of fiscal 2019 by
approximately 10 percent and several of our properties experienced
multiple periods where they were at or near sellout capacity during
the quarter. As we head into the traditionally slower winter
months, we are optimistic that business travel will continue to
gradually return as more people become vaccinated and remaining
business travel restrictions ease.”
Group booking pace for fiscal 2022, while still behind the
pre-pandemic pace, has meaningfully improved from earlier in the
year. Increased booking activity has extended into the fourth
quarter of fiscal 2021. Banquet and catering booking pace, while
also behind pre-pandemic levels, continues to benefit from
increases in wedding bookings.
Marcus Hotels & Resorts assumed management of the Hyatt
Regency Coralville Hotel & Conference Center effective August
18, 2021. Located just three miles from the University of Iowa, the
property boasts one of the area’s most desired locations for
travelers as well as large scale meetings, events, exhibitions and
more. The property will undergo a phased renovation focused on its
restaurant and all hotel rooms. As a recognized leader in property
management, Marcus Hotels & Resorts will continue to seek
opportunities to strategically grow its portfolio.
Balance Sheet and
Liquidity
The Marcus Corporation’s financial position remains strong, with
$197 million in cash and revolving credit availability at the end
of the fiscal 2021 third quarter. As previously announced, on July
13, 2021, the company amended its revolving credit agreement and
made an early payment on its term loan facility, reducing the
balance of the facility to $50 million and extending the term loan
facility’s maturity date to September 2022.
“As has been the case throughout our 86-year history, our strong
liquidity and low debt has positioned us well during various
economic cycles,” said Douglas Neis, executive vice president and
chief financial officer of The Marcus Corporation. “Moreover, our
significant real estate portfolio keeps our exposure to fixed
monthly lease payments low, thereby accelerating our return to
profitability, and serves as meaningful underlying credit support
for our balance sheet. As a result, we have greater flexibility to
continue navigating the impacts of the global pandemic while
seeking strategic growth opportunities when appropriate that others
may not.”
In the third quarter of fiscal 2021 the company realized
additional proceeds from the sale of non-core real estate assets
and increased the number of additional non-core assets under either
letter of intent or contract to sell. The company also anticipates
the receipt of expected income tax refunds in the fourth quarter of
fiscal 2021.
Conference Call and
Webcast
The Marcus Corporation management will hold a conference call
today, Wednesday, November 3, 2021 at 10:00 a.m. Central/11:00 a.m.
Eastern time. Interested parties may listen to the call live on the
internet through the investor relations section of the company's
website: www.marcuscorp.com, or by dialing
1-574-990-3059 and entering the passcode 6594275. Listeners
should dial in to the call at least 5-10 minutes prior to the start
of the call or should go to the website at least 15 minutes prior
to the call to download and install any necessary audio
software.
A telephone replay of the conference call will be available
through Wednesday, November 10, 2021, by dialing 1-855-859-2056 and
entering passcode 6594275. The webcast will be archived on the
company’s website until its next earnings release.
Non-GAAP Financial
Measures
Adjusted net earnings (loss) attributable to The Marcus
Corporation, Adjusted net earnings (loss) per diluted common share
attributable to The Marcus Corporation and Adjusted EBITDA have
been presented in this press release as supplemental measures of
financial performance that are not required by, or presented in
accordance with, GAAP. The company defines Adjusted net earnings
(loss) attributable to The Marcus Corporation as net earnings
(loss) attributable to The Marcus Corporation adjusted to eliminate
the impact of certain items that the company does not consider
indicative of its core operating performance and the tax effect
related to those items. The company defines Adjusted net earnings
(loss) per diluted common share attributable to The Marcus
Corporation as Adjusted net earnings (loss) attributable to The
Marcus Corporation divided by diluted weighted average shares
outstanding. The company defines Adjusted EBITDA as net earnings
(loss) attributable to The Marcus Corporation before investment
income or loss, interest expense, other expense, gain or loss on
disposition of property, equipment and other assets, equity
earnings or losses from unconsolidated joint ventures, net earnings
or losses attributable to noncontrolling interests, income taxes
and depreciation and amortization, adjusted to eliminate the impact
of certain items that the company does not consider indicative of
its core operating performance. Reconciliations of these measures
to the equivalent measures under GAAP are set forth in the attached
tables.
Adjusted net earnings (loss) attributable to The Marcus
Corporation, Adjusted net earnings (loss) per diluted common share
attributable to The Marcus Corporation and Adjusted EBITDA are key
measures used by management and the company’s board of directors to
assess the company’s financial performance and enterprise value.
The company believes that Adjusted net earnings (loss) attributable
to The Marcus Corporation, Adjusted net earnings (loss) per diluted
common share attributable to The Marcus Corporation and Adjusted
EBITDA are useful measures, as they eliminate certain expenses that
are not indicative of the company’s core operating performance and
facilitate a comparison of the company’s core operating performance
on a consistent basis from period to period. The company also uses
Adjusted EBITDA as a basis to determine certain annual cash bonuses
and long-term incentive awards, to supplement GAAP measures of
performance to evaluate the effectiveness of its business
strategies, to make budgeting decisions, and to compare its
performance against that of other peer companies using similar
measures. Adjusted net earnings, Adjusted diluted earnings per
share and Adjusted EBITDA are also used by analysts, investors and
other interested parties as performance measures to evaluate
industry competitors.
Adjusted net earnings (loss) attributable to The Marcus
Corporation, Adjusted net earnings (loss) per diluted common share
attributable to The Marcus Corporation and Adjusted EBITDA are
non-GAAP measures of the company’s financial performance and should
not be considered as alternatives to net earnings (loss) or diluted
earnings (loss) per share as a measure of financial performance, or
any other performance measure derived in accordance with GAAP and
they should not be construed as an inference that the company’s
future results will be unaffected by unusual or non-recurring
items. Additionally, Adjusted net earnings (loss) attributable to
The Marcus Corporation and Adjusted EBITDA are not intended to be
measures of liquidity or free cash flow for management’s
discretionary use. In addition, these non-GAAP measures exclude
certain non-recurring and other charges. Each of these non-GAAP
measures has its limitations as an analytical tool, and you should
not consider them in isolation or as a substitute for analysis of
the company’s results as reported under GAAP. In evaluating
Adjusted net earnings (loss) attributable to The Marcus
Corporation, Adjusted net earnings (loss) per diluted common share
attributable to The Marcus Corporation and Adjusted EBITDA, you
should be aware that in the future the company will incur expenses
that are the same as or similar to some of the items eliminated in
the adjustments made to determine Adjusted net earnings (loss)
attributable to The Marcus Corporation, Adjusted net earnings
(loss) per diluted common share attributable to The Marcus
Corporation and Adjusted EBITDA, such as acquisition expenses,
preopening expenses, accelerated depreciation, impairment charges
and other adjustments. The company’s presentation of Adjusted net
earnings (loss) attributable to The Marcus Corporation, Adjusted
net earnings (loss) per diluted common share attributable to The
Marcus Corporation and Adjusted EBITDA should not be construed to
imply that the company’s future results will be unaffected by any
such adjustments. Definitions and calculations of Adjusted net
earnings (loss), Adjusted diluted earnings (loss) per share and
Adjusted EBITDA differ among companies in our industries, and
therefore Adjusted net earnings (loss), Adjusted diluted earnings
(loss) per share and Adjusted EBITDA disclosed by the company may
not be comparable to the measures disclosed by other companies.
About The Marcus
Corporation
Headquartered in Milwaukee, The Marcus Corporation is a leader
in the lodging and entertainment industries, with significant
company-owned real estate assets. The Marcus Corporation’s theatre
division, Marcus Theatres®, is the fourth largest theatre circuit
in the U.S. and currently owns or operates 1,064 screens at 85
locations in 17 states under the Marcus Theatres, Movie Tavern® by
Marcus and BistroPlex® brands. The company’s lodging division,
Marcus® Hotels & Resorts, owns and/or manages 19 hotels,
resorts and other properties in nine states. For more information,
please visit the company’s website at www.marcuscorp.com.
Certain matters discussed in this press release are
“forward-looking statements” intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements may
generally be identified as such because the context of such
statements include words such as we “believe,” “anticipate,”
“expect” or words of similar import. Similarly, statements that
describe our future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties which may cause results
to differ materially from those expected, including, but not
limited to, the following: (1) the adverse effects of the COVID-19
pandemic on our theatre and hotels and resorts businesses, results
of operations, liquidity, cash flows, financial condition, access
to credit markets and ability to service our existing and future
indebtedness; (2) the duration of the COVID-19 pandemic and related
government restrictions and social distancing requirements and the
level of customer demand following the relaxation of such
requirements; (3) the availability, in terms of both quantity and
audience appeal, of motion pictures for our theatre division
(particularly following the COVID-19 pandemic, during which the
production of new movie content temporarily ceased and release
dates for motion pictures have been postponed), as well as other
industry dynamics such as the maintenance of a suitable window
between the date such motion pictures are released in theatres and
the date they are released to other distribution channels; (4) the
effects of adverse economic conditions in our markets, including
but not limited to, those caused by the COVID-19 pandemic; (5) the
effects of adverse economic conditions, including but not limited
to, those caused by the COVID-19 pandemic, on our ability to obtain
financing on reasonable and acceptable terms, if at all; (6) the
effects on our occupancy and room rates caused by the COVID-19
pandemic and the effects on our occupancy and room rates of the
relative industry supply of available rooms at comparable lodging
facilities in our markets once hotels and resorts have more fully
reopened; (7) the effects of competitive conditions in our markets;
(8) our ability to achieve expected benefits and performance from
our strategic initiatives and acquisitions; (9) the effects of
increasing depreciation expenses, reduced operating profits during
major property renovations, impairment losses, and preopening and
start-up costs due to the capital intensive nature of our business;
(10) the effects of weather conditions, particularly during the
winter in the Midwest and in our other markets; (11) our ability to
identify properties to acquire, develop and/or manage and the
continuing availability of funds for such development; (12) the
adverse impact on business and consumer spending on travel, leisure
and entertainment resulting from terrorist attacks in the United
States, other incidents of violence in public venues such as hotels
and movie theatres or epidemics (such as the COVID-19 pandemic);
and (13) a disruption in our business and reputational and economic
risks associated with civil securities claims brought by
shareholders. These statements are not guarantees of future
performance and are subject to risks, uncertainties and other
factors, including developments related to the COVID-19 pandemic,
some of which are beyond our control and difficult to predict and
could cause actual results to differ materially from those
expressed or forecasted in the forward-looking statements. Our
forward-looking statements are based upon our assumptions, which
are based upon currently available information, including
assumptions about our ability to manage difficulties associated
with or related to the COVID-19 pandemic; the assumption that our
theatre closures, hotel closures and restaurant closures are not
expected to be permanent or to re-occur; the continued availability
of our workforce; and the temporary and long-term effects of the
COVID-19 pandemic on our business. Shareholders, potential
investors and other readers are urged to consider these factors
carefully in evaluating the forward-looking statements and are
cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements made herein are made
only as of the date of this press release and we undertake no
obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
THE MARCUS CORPORATION Consolidated Statements of
Earnings (Loss) (Unaudited) (in thousands, except per
share data)
13 Weeks Ended 39 Weeks Ended
Sept. 30, Sept. 24, Sept. 30, Sept. 24,
2021
2020
2021
2020
Revenues: Theatre admissions
$
38,250
$
3,118
$
73,850
$
58,667
Rooms
30,917
9,772
57,293
27,618
Theatre concessions
35,952
3,243
68,932
50,277
Food and beverage
16,731
5,420
32,234
19,620
Other revenues
19,128
8,813
45,253
30,886
140,978
30,366
277,562
187,068
Cost reimbursements
4,884
3,225
11,634
13,916
Total revenues
145,862
33,591
289,196
200,984
Costs and expenses: Theatre operations
40,513
14,150
87,660
76,806
Rooms
9,682
4,611
22,019
16,132
Theatre concessions
15,094
2,592
29,627
25,634
Food and beverage
12,344
5,109
25,520
20,725
Advertising and marketing
4,827
1,981
11,195
8,446
Administrative
16,536
11,645
45,815
40,555
Depreciation and amortization
17,730
18,690
54,203
56,568
Rent
6,544
6,594
19,229
19,876
Property taxes
4,935
5,950
14,142
18,004
Other operating expenses
6,500
6,266
19,918
18,094
Impairment charges
-
765
3,732
9,477
Reimbursed costs
4,884
3,225
11,634
13,916
Total costs and expenses
139,589
81,578
344,694
324,233
Operating income (loss)
6,273
(47,987
)
(55,498
)
(123,249
)
Other income (expense): Investment income (loss)
(7
)
66
153
207
Interest expense
(4,600
)
(4,132
)
(14,350
)
(10,177
)
Other expense
(625
)
(590
)
(1,881
)
(1,771
)
Gain (loss) on disposition of property, equipment and other assets
868
(251
)
2,908
(299
)
Equity losses from unconsolidated joint ventures
-
(1,054
)
-
(1,539
)
(4,364
)
(5,961
)
(13,170
)
(13,579
)
Earnings (loss) before income taxes
1,909
(53,948
)
(68,668
)
(136,828
)
Income tax expense (benefit)
150
(14,508
)
(18,931
)
(50,984
)
Net earnings (loss) attributable to The Marcus Corporation
1,759
(39,440
)
(49,737
)
(85,844
)
Net loss attributable to noncontrolling interests
-
-
-
(23
)
Net earnings (loss) attributable to The Marcus Corporation
$
1,759
$
(39,440
)
$
(49,737
)
$
(85,821
)
Net earnings (loss) per common share attributable to
The Marcus Corporation - diluted
$
0.06
$
(1.30
)
$
(1.66
)
$
(2.84
)
Weighted average shares outstanding - diluted
31,469
31,064
31,340
31,033
THE MARCUS CORPORATION Condensed Consolidated Balance
Sheets (In thousands) (Unaudited) (Audited)
September
30, December 31,
2021
2020
Assets: Cash and cash equivalents
$
8,629
$
6,745
Restricted cash
6,346
7,343
Accounts receivable
18,808
6,359
Government grants receivable
-
4,913
Refundable income taxes
23,051
27,934
Assets held for sale
12,773
4,117
Other current assets
14,360
10,406
Property and equipment, net
787,267
848,328
Operating lease right-of-use assets
220,556
229,660
Other assets
97,256
108,373
Total Assets
$
1,189,046
$
1,254,178
Liabilities and Shareholders' Equity: Accounts
payable
$
21,141
$
13,158
Taxes other than income taxes
17,277
18,308
Other current liabilities
68,650
65,787
Short-term borrowings
49,796
87,194
Current portion of finance lease obligations
2,666
2,783
Current portion of operating lease obligations
17,010
19,614
Current maturities of long-term debt
11,712
10,548
Finance lease obligations
17,796
19,744
Operating lease obligations
220,075
230,550
Long-term debt
236,611
193,036
Deferred income taxes
22,061
33,429
Other long-term obligations
61,945
61,304
Equity
442,306
498,723
Total Liabilities and Shareholders' Equity
$
1,189,046
$
1,254,178
THE MARCUS CORPORATION Business Segment Information
(Unaudited) (In thousands) Theatres Hotels/Resorts
CorporateItems Total
13 Weeks Ended September 30, 2021
Revenues
$
79,996
$
65,803
$
63
$
145,862
Operating income (loss)
(2,604
)
13,458
(4,581
)
6,273
Depreciation and amortization
12,636
5,018
76
17,730
13 Weeks Ended September 24, 2020 Revenues
$
7,354
$
26,178
$
59
$
33,591
Operating loss
(37,174
)
(6,925
)
(3,888
)
(47,987
)
Depreciation and amortization
13,353
5,210
127
18,690
39 Weeks Ended September 30, 2021 Revenues
$
154,859
$
134,079
$
258
$
289,196
Operating income (loss)
(46,458
)
5,511
(14,551
)
(55,498
)
Depreciation and amortization
38,807
15,192
204
54,203
39 Weeks Ended September 24, 2020 Revenues
$
118,414
$
82,253
$
317
$
200,984
Operating loss
(78,788
)
(32,459
)
(12,002
)
(123,249
)
Depreciation and amortization
40,245
15,955
368
56,568
Corporate items include amounts not allocable to the
business segments. Corporate revenues consist principally of rent
and the corporate operating loss includes general corporate
expenses. Corporate information technology costs and accounting
shared services costs are allocated to the business segments based
upon several factors, including actual usage and segment revenues.
Supplemental Data (Unaudited) (In thousands)
13 Weeks Ended 39 Weeks Ended Sept. 30,
Sept. 24, Sept. 30, Sept. 24, Consolidated
2021
2020
2021
2020
Net cash flow provided by (used in) operating activities
$
11,738
$
(25,633
)
$
2,057
$
(80,649
)
Net cash flow provided by (used in) investing activities
12,993
(2,570
)
9,248
(11,709
)
Net cash flow provided by (used in) financing activities
(24,886
)
(43,025
)
(10,418
)
83,493
Capital expenditures
(2,926
)
(2,802
)
(9,121
)
(18,687
)
THE MARCUS CORPORATION Reconciliation of
Adjusted net earnings (loss) and Adjusted net earnings (loss) per
diluted common share (Unaudited) (In thousands, except
per share data)
13 Weeks Ended 39 Weeks Ended
Sept. 30, Sept. 24, Sept. 30, Sept. 24,
2021
2020
2021
2020
Net earnings (loss) attributable to The Marcus Corporation
$
1,759
$
(39,440
)
$
(49,737
)
$
(85,821
)
Add (deduct): Adjustment to income taxes (a)
168
(17,420
)
Property closure/reopening expenses - theatres (b)
-
1,173
-
4,630
Property closure/reopening expenses - hotels (c)
-
443
-
5,484
Impairment charges (d)
-
765
3,732
9,477
Joint venture impairment charge (e)
811
811
Government grants (f)
(2,009
)
-
(3,280
)
-
Tax impact of adjustments to net earnings (g)
525
(912
)
(118
)
(5,849
)
Adjusted net earnings (loss) attributable to The Marcus Corporation
$
275
$
(36,992
)
$
(49,403
)
$
(88,688
)
Weighted average shares outstanding - diluted
31,469
31,064
31,340
31,033
Net earnings (loss) per diluted common share attributable to
The Marcus Corporation
$
0.06
$
(1.30
)
$
(1.66
)
$
(2.84
)
Adjusted net earnings (loss) per diluted common share attributable
to The Marcus Corporation
$
0.01
$
(1.22
)
$
(1.64
)
$
(2.93
)
(a) Reflects a nonrecurring adjustment to income taxes
related to several accounting method changes and the impact of the
CARES Act, which allows net operating loss carrybacks to a higher
federal income tax rate year. (b) Reflects nonrecurring costs
related to the required closure of all of the company's movie
theatres due to the COVID-19 pandemic, plus subsequent nonrecurring
costs related to reopening theatres. (c) Reflects nonrecurring
costs related to the closure of the company's hotels and resorts
due to reduced occupancy as a result of the COVID-19 pandemic, plus
subsequent nonrecurring costs related to reopening hotels. (d)
Impairment charges related to surplus theatre real estate for the
fiscal 2021 periods and intangible assets (trade name) and several
theatre locations for the fiscal 2020 periods. (e) Impairment
charge related to an investment in a joint venture (f) Reflects
nonrecurring state government grants awarded to our theatres and
hotels for COVID-19 relief. (g) Represents the tax effect related
to adjustments (b), (c), (d), (e) and (f) to net earnings (loss),
calculated using a statutory tax rate of 26.1% for the fiscal 2021
periods and 28.7% for the fiscal 2020 periods.
THE MARCUS
CORPORATION Reconciliation of Net
earnings (loss) to Adjusted EBITDA (Unaudited) (In
thousands)
13 Weeks Ended
39 Weeks Ended
Sept. 30, Sept. 24, Sept. 30,
Sept. 24,
2021
2020
2021
2020
Net earnings (loss) attributable to The Marcus Corporation
$
1,759
$
(39,440
)
$
(49,737
)
$
(85,821
)
Add (deduct): Investment income
7
(66
)
(153
)
(207
)
Interest expense
4,600
4,132
14,350
10,177
Other expense
625
590
1,881
1,771
(Gain) loss on disposition of property, equipment and other assets
(868
)
251
(2,908
)
299
Equity losses from unconsolidated joint ventures
-
1,054
-
1,539
Net loss attributable to noncontrolling interests
-
0
0
(23
)
Income tax expense (benefit)
150
(14,508
)
(18,931
)
(50,984
)
Depreciation and amortization
17,730
18,690
54,203
56,568
Share-based compensation expenses (a)
2,521
1,108
6,673
3,286
Property closure/reopening expenses - theatres (b)
-
1,173
-
4,630
Property closure/reopening expenses - hotels (c)
-
443
-
5,484
Impairment charges (d)
-
765
3,732
9,477
Government grants (e)
(2,009
)
-
(3,280
)
-
Adjusted EBITDA
$
24,515
$
(25,808
)
$
5,830
$
(43,804
)
(a) Non-cash charges related to share-based
compensation programs. (b) Reflects nonrecurring costs (primarily
payroll) related to the required closure of all of the company's
movie theatres due to the COVID-19 pandemic, plus subsequent
nonrecurring costs related to reopening theatres. (c) Reflects
nonrecurring costs related to the closure of the company's hotels
and resorts due to reduced occupancy as a result of the COVID-19
pandemic, plus subsequent nonrecurring costs related to reopening
hotels. (d) Impairment charges related to surplus theatre real
estate for the fiscal 2021 periods and intangible assets (trade
name) and several theatre locations for the fiscal 2020 periods.
(e) Reflects nonrecurring state government grants awarded to our
theatres and hotels for COVID-19 relief.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211103005167/en/
Douglas A. Neis (414) 905-1100
Marcus (NYSE:MCS)
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