The Marcus Corporation (NYSE: MCS) today reported results for
the first quarter fiscal 2024 ended March 28, 2024.
“Marcus Hotels & Resorts led our results for the quarter as
our group business continued to grow significantly. As we head into
the summer travel and convention season in our markets, we are well
positioned to capture both leisure and group business across our
portfolio, particularly at our newly renovated properties,” said
Gregory S. Marcus, chief executive officer of The Marcus
Corporation. “As anticipated, the shutdown in movie production due
to the 2023 Hollywood labor strikes resulted in a weaker film slate
that negatively impacted Marcus Theatres’ first quarter fiscal 2024
results. While we expect the impact from the strikes to continue in
the second quarter, there are a number of exciting films on the
horizon this summer with an improving film slate expected this
fall.”
First Quarter Fiscal 2024
Highlights
- Total revenues for the first quarter of fiscal 2024 were $138.5
million, a 9.0% decrease from total revenues of $152.3 million for
the first quarter of fiscal 2023.
- Operating loss was $16.7 million for the first quarter of
fiscal 2024, compared to operating loss of $9.0 million for the
prior year quarter.
- Net loss was $11.9 million for the first quarter of fiscal
2024, compared to net loss of $9.5 million for the same period in
fiscal 2023.
- Net loss per diluted common share was $0.38 for the first
quarter of fiscal 2024, compared to net loss per diluted common
share of $0.31 for the first quarter of fiscal 2023.
- Adjusted EBITDA was $2.3 million for the first quarter of
fiscal 2024, compared to Adjusted EBITDA of $9.5 million for the
prior year quarter.
Marcus® Hotels & Resorts
Revenues before cost reimbursements increased 3.8% during the
first quarter of fiscal 2024 compared to the first quarter of
fiscal 2023. Revenue per available room, or RevPAR, increased 2.1%
during the first quarter of fiscal 2024 compared to the prior year
first quarter, resulting in Marcus Hotels & Resorts
outperforming its competitive sets by 2.0 percentage points during
the first quarter of fiscal 2024.
“While the first quarter is seasonally our slowest, I am pleased
with the meaningful improvements in midweek group travel during the
quarter,” said Michael R. Evans, president of Marcus Hotels &
Resorts. “As the warmer weather sets in, we are looking forward to
a busy spring and summer travel season for both leisure and group
travel, including the Republican National Convention in Milwaukee
this July. We are excited to show off our renovations at the Grand
Geneva Resort & Spa and The Pfister Hotel, with our impressive
properties and outstanding guest experiences positioning us well
for the years ahead.”
Group business continued to increase during the first quarter of
fiscal 2024, with an increase in mid-week groups driving occupancy
growth 2.9 percentage points during the first quarter of fiscal
2024. Group booking pace for the remainder of fiscal 2024 is
running ahead of comparable pace during the same period in fiscal
2023, even when excluding bookings related to the upcoming
Republican National Convention. Group booking pace for fiscal 2025
is also running significantly ahead of comparable pace at this time
last year.
During the first quarter of fiscal 2024, Marcus Hotels &
Resorts, along with Hempel Real Estate and Robinson Park, completed
the acquisition of the Loews Minneapolis Hotel. The division
assumed management of the property, which was rebranded as The
Lofton Hotel under the Tapestry Collection by Hilton flag. The
Lofton Hotel is the first Tapestry Collection hotel in
Minnesota.
Grand Geneva Resort & Spa in Lake Geneva, Wisconsin is
nearing completion of its meeting and event space renovation, which
has resulted in increases in bookings for groups, weddings, and
other social events. This most recent phase of the multi-year
reinvestment in the resort follows major renovations to its
reception and lobby bar areas in 2021 and its guest rooms in 2022
and 2023.
In addition, extensive renovations continue at The Pfister Hotel
in Milwaukee. With the revitalization of its ballrooms and meeting
and event spaces completed in late 2023, the hotel continues to
benefit from increased bookings for weddings and other events. The
hotel is currently completing a guest room renovation in its
historic tower, soon to be followed by a refresh of the historic
lobby, first floor public spaces, and the popular Pfister Café in
2024.
Marcus Theatres®
As anticipated, the production delays caused by the WGA and
SAG-AFTRA labor strikes in 2023 resulted in fewer blockbuster films
opening during the first quarter of fiscal 2024 compared to the
first quarter of fiscal 2023. In addition, the carryover runs of
films from the holidays into the first quarter of fiscal 2024 was
softer than the prior year first quarter when Avatar: The Way of
Water was continuing its impressive run.
As a result, Marcus Theatres reported total revenue of $81.3
million in the first quarter of fiscal 2024, compared to $96.4
million in the first quarter of fiscal 2023. The division recorded
an operating loss of $5.7 million in the first quarter of fiscal
2024 and Adjusted EBITDA of $6.2 million. Average ticket price
increased 4.9% and average concession revenues per person grew
0.8%, largely due to ticket price optimization and the impact of
the Value Tuesday promotion changes that were effective near the
end of the first quarter of fiscal 2023.
“Despite the overall weaker film slate in the quarter, the
success of several films reinforced that consumers remain hungry
for a steady flow of new, diverse, theatrical entertainment,” said
Mark A. Gramz, president of Marcus Theatres. “Dune: Part Two, Kung
Fu Panda 4, Wonka, Bob Marley: One Love, and Migration performed
well during the first quarter of fiscal 2024, and Godzilla x Kong:
The New Empire started our fiscal second quarter with a roar. As we
look forward to the coming release of highly anticipated films such
as Kingdom of the Planet of the Apes, Inside Out 2, Deadpool &
Wolverine, and Despicable Me 4, Marcus Theatres’ incredible sound,
premium large format screens and recliner seating, enticing food
and beverage offerings, and consumer friendly technology will
continue to deliver an unforgettable entertainment experience.”
While schedule changes may occur, new films expected to be
released during the remainder of fiscal 2024 that have the
potential to perform well include The Fall Guy, Kingdom of the
Planet of the Apes, IF, Furiosa, Inside Out 2, A Quiet Place: Day
One, Horizon: An American Saga, Despicable Me 4, Twisters, Deadpool
& Wolverine, Beetlejuice 2, Joker: Folie A Deux, Smile 2, Venom
3, Moana 2, Wicked Part One, Mufasa: The Lion King, and Sonic the
Hedgehog 3, among others.
Balance Sheet and
Liquidity
The Marcus Corporation’s financial position remains strong with
$237.4 million in cash and revolving credit availability at the end
of the first quarter of fiscal 2024.
Conference Call and
Webcast
The Marcus Corporation management will hold a conference call
today, Thursday, May 2, 2024, 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: investors.marcuscorp.com, or by dialing 1-404-975-4839 and
entering the passcode 877978. 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 Thursday, May 9, 2024, by dialing 1-866-813-9403 and
entering passcode 937873. The webcast will be archived on the
company’s website until its next earnings release.
Non-GAAP Financial
Measure
Adjusted EBITDA has been presented in this press release as a
supplemental measure of financial performance that is not required
by, or presented in accordance with, GAAP. 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, depreciation and
amortization and non-cash share-based compensation expense,
adjusted to eliminate the impact of certain items that the company
does not consider indicative of its core operating performance. A
reconciliation of this measure to the equivalent measure under
GAAP, along with reconciliations of this measure for each of our
operating segments, are set forth in the attached table.
Adjusted EBITDA is a key measure 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 EBITDA is a useful measure, as it eliminates certain
expenses and gains that are not indicative of the company’s core
operating performance and facilitates 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 EBITDA is also used
by analysts, investors and other interested parties as a
performance measure to evaluate industry competitors.
Adjusted EBITDA is a non-GAAP measure of the company’s financial
performance and should not be considered as an alternative to net
earnings (loss) as a measure of financial performance, or any other
performance measure derived in accordance with GAAP and it should
not be construed as an inference that the company’s future results
will be unaffected by unusual or non-recurring items. Additionally,
Adjusted EBITDA is not intended to be a measure of liquidity or
free cash flow for management’s discretionary use. In addition,
this non-GAAP measure excludes certain non-recurring and other
charges and has its limitations as an analytical tool. You should
not consider Adjusted EBITDA in isolation or as a substitute for
analysis of the company’s results as reported under GAAP. In
evaluating 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 EBITDA, such as acquisition expenses, preopening expenses,
accelerated depreciation, impairment charges and other adjustments.
The company’s presentation of 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 EBITDA differ among companies in our industries, and
therefore 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 993 screens at 79
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 16 hotels,
resorts and other properties in eight 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 the COVID-19
pandemic, or future pandemics, may have 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 availability,
in terms of both quantity and audience appeal, of motion pictures
for our theatre division (including disruptions in the production
of films due to events such as a strike by actors, writers or
directors or future pandemics); (3) the effects of theatre 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; (5) the effects of
adverse economic conditions 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 relative industry supply of
available rooms at comparable lodging facilities in our markets;
(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 changes in the availability of and cost of
labor and other supplies essential to the operation of our
business; (11) the effects of weather conditions, particularly
during the winter in the Midwest and in our other markets; (12) our
ability to identify properties to acquire, develop and/or manage
and the continuing availability of funds for such development; (13)
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; and (14) 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, 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. 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
March 28, 2024
March 30, 2023
Revenues:
Theatre admissions
$
40,596
$
47,635
Rooms
18,213
17,857
Theatre concessions
34,695
42,375
Food and beverage
16,163
15,193
Other revenues
19,702
19,688
129,369
142,748
Cost reimbursements
9,178
9,528
Total revenues
138,547
152,276
Costs and expenses:
Theatre operations
44,985
51,069
Rooms
9,411
9,278
Theatre concessions
14,886
15,730
Food and beverage
13,863
13,568
Advertising and marketing
5,301
5,065
Administrative
21,402
19,851
Depreciation and amortization
16,015
15,876
Rent
6,347
6,493
Property taxes
3,931
4,757
Other operating expenses
9,870
9,651
Loss on disposition of property, equipment
and other assets
23
398
Reimbursed costs
9,178
9,528
Total costs and expenses
155,212
161,264
Operating loss
(16,665
)
(8,988
)
Other income (expense):
Investment income
692
260
Interest expense
(2,534
)
(3,008
)
Other income (expense)
(341
)
(401
)
Equity losses from unconsolidated joint
ventures
(387
)
(171
)
(2,570
)
(3,320
)
Loss before income taxes
(19,235
)
(12,308
)
Income tax benefit
(7,369
)
(2,842
)
Net Loss
$
(11,866
)
$
(9,466
)
Net loss per common share -
diluted
$
(0.38
)
$
(0.31
)
Weighted average shares outstanding -
diluted
31,892
31,572
THE MARCUS CORPORATION
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands)
March 28, 2024
December 28,
2023
Assets:
Cash and cash equivalents
$
17,258
$
55,589
Restricted cash
3,295
4,249
Accounts receivable
13,425
19,703
Assets held for sale
2,980
—
Other current assets
24,589
22,175
Property and equipment, net
678,198
682,262
Operating lease right-of-use assets
173,068
179,788
Other assets
105,322
101,337
Total Assets
$
1,018,135
$
1,065,103
Liabilities and Shareholders'
Equity:
Accounts payable
$
29,574
$
37,384
Taxes other than income taxes
15,785
18,585
Other current liabilities
69,603
80,283
Current portion of finance lease
obligations
2,602
2,579
Current portion of operating lease
obligations
14,061
15,290
Current maturities of long-term debt
10,273
10,303
Finance lease obligations
12,129
12,753
Operating lease obligations
172,985
178,582
Long-term debt
159,506
159,548
Deferred income taxes
25,311
32,235
Other long-term obligations
46,988
46,389
Equity
459,318
471,172
Total Liabilities and Shareholders'
Equity
$
1,018,135
$
1,065,103
THE MARCUS CORPORATION
Business Segment
Information
(Unaudited)
(In thousands)
Theatres
Hotels/ Resorts
Corporate Items
Total
13 Weeks Ended March 28, 2024
Revenues
$
81,270
$
57,197
$
80
$
138,547
Operating loss
(5,739
)
(5,162
)
(5,764
)
(16,665
)
Depreciation and amortization
11,033
4,864
118
16,015
Adjusted EBITDA
6,156
(11
)
(3,854
)
2,291
13 Weeks Ended March 30, 2023
Revenues
$
96,376
$
55,811
$
89
$
152,276
Operating income (loss)
1,519
(5,032
)
(5,475
)
(8,988
)
Depreciation and amortization
11,488
4,301
87
15,876
Adjusted EBITDA
13,803
(410
)
(3,935
)
9,458
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
Consolidated
March 28, 2024
March 30, 2023
Net cash flow provided by (used in)
operating activities
$
(15,098
)
$
(7,734
)
Net cash flow provided by (used in)
investing activities
(20,758
)
(9,531
)
Net cash flow provided by (used in)
financing activities
(3,429
)
5,575
Capital expenditures
(15,440
)
(8,921
)
THE MARCUS CORPORATION
Reconciliation of Net Loss to
Adjusted EBITDA
(Unaudited)
(In thousands)
13 Weeks Ended
March 28, 2024
March 30, 2023
Net loss
$
(11,866
)
$
(9,466
)
Add (deduct):
Investment income
(692
)
(260
)
Interest expense
2,534
3,008
Other expense (income)
341
401
Loss on disposition of property, equipment
and other assets
23
398
Equity losses from unconsolidated joint
ventures
387
171
Income tax benefit
(7,369
)
(2,842
)
Depreciation and amortization
16,015
15,876
Share-based compensation (a)
2,514
2,172
Insured losses (b)
404
—
Adjusted EBITDA
$
2,291
$
9,458
Reconciliation of Operating
income (loss) to Adjusted EBITDA by Reportable Segment
(Unaudited)
(In thousands)
13 Weeks Ended March 28,
2024
Theatres
Hotels & Resorts
Corp. Items
Total
Operating loss
$
(5,739
)
$
(5,162
)
$
(5,764
)
$
(16,665
)
Depreciation and amortization
11,033
4,864
118
16,015
Loss on disposition of property, equipment
and other assets
18
5
—
23
Share-based compensation (a)
440
282
1,792
2,514
Insured losses (b)
404
—
—
404
Adjusted EBITDA
$
6,156
$
(11
)
$
(3,854
)
$
2,291
13 Weeks Ended March 30,
2023
Theatres
Hotels & Resorts
Corp. Items
Total
Operating income (loss)
$
1,519
$
(5,032
)
$
(5,475
)
$
(8,988
)
Depreciation and amortization
11,488
4,301
87
15,876
Loss on disposition of property, equipment
and other assets
323
75
—
398
Share-based compensation (a)
473
246
1,453
2,172
Adjusted EBITDA
$
13,803
$
(410
)
$
(3,935
)
$
9,458
(a)
Non-cash expense related to share-based
compensation programs.
(b)
Repair costs related to insured property
damage at one theatre location that are non-operating in
nature.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501474382/en/
Chad Paris (414) 905-1100 investors@marcuscorp.com
Marcus (NYSE:MCS)
Historical Stock Chart
From Dec 2024 to Jan 2025
Marcus (NYSE:MCS)
Historical Stock Chart
From Jan 2024 to Jan 2025
