Marcus Hotels & Resorts and Marcus Theatres
Significantly Outperformed Their Respective Industries; Record
Third Quarter for Company and Both Divisions; Company Completes $10
Million in Share Repurchases
The Marcus Corporation (NYSE: MCS) today reported record results
for the third quarter fiscal 2024 ended September 26, 2024.
“Results for the third quarter of fiscal 2024 were driven by
strong contributions from both divisions, with Marcus Hotels &
Resorts and Marcus Theatres each significantly outperforming their
respective industries,” said Gregory S. Marcus, chief executive
officer of The Marcus Corporation. “We delivered record third
quarter revenue and earnings in both of our divisions and as a
company. Marcus Hotels & Resorts benefited from strong room
rates during the Republican National Convention in Milwaukee, and
Marcus Theatres achieved growth with a markedly improved film slate
that played particularly well with audiences in our markets. As we
look ahead to the remainder of the year and into 2025, we are
encouraged by trends within both businesses, including an
impressive array of high-quality films headed for the big screen
this holiday season and into 2025 and continued improvements in
group bookings in our hotel division. Turning to our balance sheet,
we completed the retirement of our convertible debt to eliminate
any future dilution, and our confidence in the future was also
highlighted by our decision to repurchase nearly $10 million of our
shares during the quarter.”
Third Quarter Fiscal 2024
Highlights
- Total revenues for the third quarter of fiscal 2024 were a
record $232.7 million, an 11.4% increase from total revenues of
$208.8 million for the third quarter of fiscal 2023.
- Operating income was a record $32.8 million for the third
quarter of fiscal 2024, a 56.6% increase compared to operating
income of $20.9 million for the prior year quarter.
- Net earnings was a record $23.3 million for the third quarter
of fiscal 2024, a 90.6% increase compared to net earnings of $12.2
million for the same period in fiscal 2023. Net earnings for the
third quarter of fiscal 2024 was negatively impacted by $1.5
million, or $0.05 per share, of debt conversion expense and related
tax impacts of the previously announced convertible senior notes
repurchases. Excluding the impacts of the convertible senior notes
repurchases, net earnings was $24.8 million for the third quarter
of fiscal 2024.
- Net earnings per diluted common share was $0.73 for the third
quarter of fiscal 2024, a 128.1% increase compared to net earnings
per diluted common share of $0.32 for the third quarter of fiscal
2023. Excluding the impacts of the convertible senior notes
repurchases, net earnings per diluted common share was $0.78 for
the third quarter of fiscal 2024.
- Adjusted EBITDA was a record $52.3 million for the third
quarter of fiscal 2024, a 23.5% increase compared to Adjusted
EBITDA of $42.3 million for the prior year quarter.
First Three Quarters Fiscal 2024
Highlights
- Total revenues for the first three quarters of fiscal 2024 were
$547.2 million, a 3.7% decrease from total revenues of $568.0
million for the first three quarters of fiscal 2023.
- Operating income was $18.4 million for the first three quarters
of fiscal 2024, compared to operating income of $32.8 million for
the first three quarters of fiscal 2023.
- Net loss was $8.8 million for the first three quarters of
fiscal 2024, compared to net income of $16.2 million for the for
the first three quarters of fiscal 2023. Net loss for the first
three quarters of fiscal 2024 was negatively impacted by $16.5
million, or $0.52 per share, of debt conversion expense and related
tax impacts of the previously announced convertible senior notes
repurchases. Excluding the impacts of the convertible senior notes
repurchases, net earnings was $7.7 million for the first three
quarters of fiscal 2024.
- Net loss per diluted common share was $0.28 for the first three
quarters of fiscal 2024, compared to net earnings per diluted
common share of $0.46 for the first three quarters of fiscal 2023.
Excluding the impacts of the convertible senior notes repurchases,
net earnings per diluted common share was $0.24 for the first three
quarters of fiscal 2024.
- Adjusted EBITDA was $76.5 million for the first three quarters
of fiscal 2024, compared to Adjusted EBITDA of $90.5 million for
the first three quarters of fiscal 2023.
Marcus Theatres®
For the third quarter of fiscal 2024, Marcus Theatres reported
total revenues of $143.8 million, a 13.6% increase compared to the
third quarter of fiscal 2023. Division operating income of $21.8
million increased 91.3% in the third quarter of fiscal 2024 and
Adjusted EBITDA of $33.2 million increased 24.3% during the same
period compared to the prior year quarter. Division total revenue,
operating income, and Adjusted EBITDA were records for the fiscal
third quarter.
Marcus Theatres’ attendance grew 7.1% at same store theatres
during the third quarter of fiscal 2024 compared to the same period
the prior year. As a result, the division outperformed the industry
by 5.7 percentage points during the third quarter of fiscal 2024.
An improved film slate featuring record-breaking films that played
well with audiences in our markets drove growth and outperformance.
The division’s Everyday Matinee, which offers a $7 ticket for
children and seniors for all shows starting before 4 p.m., as well
as Marcus Theatres’ enhanced Value Tuesday promotion, which brought
back a free complimentary size popcorn for members of the Magical
Movie Rewards loyalty program, also positively contributed to
Marcus Theatres’ outperformance.
During the third quarter fiscal 2024, average ticket price
increased 2.6% with an increased percentage of ticket sales coming
from Premium Large Format (PLF) screens and evening showings,
partially offset by attendance associated with Value Tuesday and
other promotional offerings. Average concession revenues per person
increased 7.9% during the third quarter compared to the prior year
quarter.
“While the WGA and SAG-AFTRA strikes impacted results for the
first half of the year, we are pleased that the lingering effects
seem to be further in the rearview mirror as demonstrated by the
significant improvements in our third quarter fiscal 2024 results,”
said Mark A. Gramz, president of Marcus Theatres. “A larger number
of exciting blockbuster films performed particularly well in our
Midwestern markets during the quarter, including record-breaking
Inside Out 2 and Deadpool & Wolverine, as well as Despicable Me
4, Twisters and It Ends With Us. The remainder of the fourth
quarter of fiscal 2024 includes an exciting slate of diverse films,
including the highly anticipated debuts of Gladiator II, Wicked,
and Moana 2. Throughout this holiday season, moviegoers will be
treated to a full slate of great movies that appeal to a wide range
of audiences, ending the year on a much higher note than it
started.”
Marcus Theatres’ top five highest-performing films in the third
quarter of fiscal 2024 were Deadpool & Wolverine, Despicable Me
4, Twisters, Inside Out 2 and Beetlejuice Beetlejuice.
While film schedule changes may occur, new films planned to be
released during the remainder of fiscal 2024 that have the
potential to perform very well include: Gladiator II, Wicked, Moana
2, Lord of The Rings: The War of the Rohirrim, Mufasa: The Lion
King, and Sonic the Hedgehog 3.
Marcus® Hotels & Resorts
Marcus Hotels & Resorts reported total revenues before cost
reimbursements of $79.0 million in the third quarter of fiscal
2024, a 9.6% increase over the prior year period. Division
operating income of $17.0 million increased 18.5% in the third
quarter of fiscal 2024 and Adjusted EBITDA of $23.1 million
increased 18.7% over the same prior year period. Division total
revenue, operating income, and Adjusted EBITDA were records for the
fiscal third quarter.
Revenue per available room, or RevPAR, increased 9.8% at
comparable company-owned hotels during the third quarter of fiscal
2024 compared to the third quarter of fiscal 2023. As a result, the
division outperformed the industry by 8.4 percentage points.
“Our record third quarter fiscal 2024 results were favorably
impacted by the Republican National Convention in Milwaukee,
continued improvements in our group business, and the summer
leisure travel season,” said Michael R. Evans, president of Marcus
Hotels & Results. “While we anticipate some softening of our
leisure business as we head into the traditionally slower winter
travel months, our team is continuing to capitalize on the growth
of group business, especially midweek. Our high-quality hotels and
resorts - including the newly renovated Pfister Hotel in Milwaukee
and Grand Geneva Resort & Spa in Lake Geneva, Wisconsin – are
well positioned to continue capturing accelerating group demand
with our outstanding team delivering memorable moments for every
guest who walks through our doors.”
Group booking pace for the remainder of fiscal 2024 is running
ahead of the same period in fiscal 2023. Fiscal 2025 booking pace
is running significantly ahead compared to the same period last
year, excluding bookings related to the Republican National
Convention in July 2024, with banquet and catering booking pace
running similarly ahead.
In October, four Marcus Hotels & Resorts properties earned
high honors in Condé Nast Traveler’s Readers’ Choice Awards. The
Pfister Hotel and Saint Kate – The Arts Hotel, both in Milwaukee,
were named among the Top Hotels in the Midwest. Grand Geneva Resort
& Spa in Lake Geneva, Wisconsin was named the #2 Top Resort in
the Midwest, and the Kimpton Hotel Monaco Pittsburgh was recognized
as the #2 Top Hotel in the Mid-Atlantic. The Condé Nast Traveler
Readers’ Choice Awards are the longest-running and most prestigious
recognition of excellence in the travel industry and are commonly
known as “the best of the best of travel.”
Return of Capital to
Shareholders
During the third quarter of fiscal 2024, the Company repurchased
approximately 693,000 shares of common stock for $9.7 million in
cash. During the first three quarters of fiscal 2024, the Company
has returned $16.5 million in capital to shareholders through share
repurchases and dividends paid.
“Our strong balance sheet gives us the ability to return capital
to shareholders, while at the same time continuing to invest in our
two businesses and pursue potential growth opportunities,” said
Chad M. Paris, chief financial officer and treasurer of The Marcus
Corporation.
Balance Sheet and
Liquidity
The Marcus Corporation’s financial position remains strong with
$248.6 million in cash and revolving credit availability at the end
of the third quarter of fiscal 2024.
During the second and third quarters of fiscal 2024, the Company
completed the previously announced repurchases of $86.4 million
aggregate principal amount of its 5.00% Convertible Senior Notes
due 2025 (the “Convertible Senior Notes”). On September 19, 2024,
the Company entered into an agreement to repurchase and retire an
additional $13.5 million aggregate principal amount of Convertible
Senior Notes, and entered into unwind agreements to terminate a
corresponding portion of the existing capped call transactions. The
additional repurchase and unwind transactions closed on October 11,
2024. The final cash cost of the $99.9 million aggregate principal
amount of Convertible Senior Notes repurchases, net of the cash
received from the unwind of the capped call transactions, was
$103.3 million. Following the completion of the repurchases, the
Company has retired substantially all of the $100 million of
Convertible Senior Notes, with $0.1 million remaining
outstanding.
In connection with the repurchases, the required accounting for
the transactions resulted in the Company recognizing $1.4 million
and $15.3 million of debt conversion expense during the third
quarter and first three quarters of fiscal 2024, respectively,
while the unwind of the capped call transactions resulted in a $4.7
and $17.6 million increase in shareholders equity during the third
quarter and first three quarters of fiscal 2024, respectively. In
addition, income tax expense (benefit) during the first three
quarters of fiscal 2024 was negatively impacted by $1.2 million for
the related noncash tax impacts of the capped call unwind.
In addition, during the third quarter of fiscal 2024 the Company
completed a private placement offering of $100 million aggregate
principal amount of senior notes in two tranches: $60 million
aggregate principal amount of 6.89% senior notes due 2031 and $40
million aggregate principal amount of 7.02% senior notes due 2034.
The net proceeds of the offering were used to refinance the
repurchases and for general corporate purposes.
These refinancing transactions significantly simplified the
Company’s capital structure and extended debt maturities.
Conference Call and
Webcast
The Marcus Corporation management will hold a conference call
today, Thursday, October 31, 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 935227. 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, November 14, 2024, by dialing 1-866-813-9403 and
entering passcode 167289. 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 995 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 future pandemics
or epidemics 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 or other incidents of violence in public venues such
as hotels and movie theatres; 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
39 Weeks Ended
September 26,
2024
September 28,
2023
September 26,
2024
September 28,
2023
Revenues:
Theatre admissions
$
68,980
$
63,652
$
158,156
$
180,274
Rooms
40,019
36,456
88,728
82,959
Theatre concessions
62,118
54,551
141,230
156,633
Food and beverage
22,283
20,214
57,718
53,980
Other revenues
28,876
23,908
71,112
65,024
222,276
198,781
516,944
538,870
Cost reimbursements
10,392
9,985
30,303
29,179
Total revenues
232,668
208,766
547,247
568,049
Costs and expenses:
Theatre operations
68,460
62,742
165,563
180,716
Rooms
12,300
11,594
32,875
31,232
Theatre concessions
24,062
20,738
57,463
59,069
Food and beverage
16,084
15,266
45,027
43,285
Advertising and marketing
6,645
6,025
18,448
16,703
Administrative
23,202
19,854
67,234
59,171
Depreciation and amortization
17,274
19,158
49,988
51,028
Rent
6,631
6,592
19,474
19,679
Property taxes
4,442
4,663
12,061
13,952
Other operating expenses
10,279
10,290
29,890
29,577
Loss on disposition of property, equipment
and other assets
115
242
95
1,019
Impairment charges
—
684
472
684
Reimbursed costs
10,392
9,985
30,303
29,179
Total costs and expenses
199,886
187,833
528,893
535,294
Operating income
32,782
20,933
18,354
32,755
Other income (expense):
Investment income
809
445
1,674
1,064
Interest expense
(3,062
)
(2,869
)
(8,160
)
(8,970
)
Other income (expense)
(390
)
(477
)
(1,121
)
(1,355
)
Debt conversion expense
(1,410
)
—
(15,318
)
—
Equity earnings (losses) from
unconsolidated joint ventures
(9
)
75
(446
)
(127
)
(4,062
)
(2,826
)
(23,371
)
(9,388
)
Earnings (loss) before income
taxes
28,720
18,107
(5,017
)
23,367
Income tax expense
5,406
5,873
3,756
7,133
Net earnings (loss)
$
23,314
$
12,234
(8,773
)
16,234
Net earnings (loss) per common share -
diluted
$
0.73
$
0.32
$
(0.28
)
$
0.46
Weighted average shares outstanding -
diluted
32,031
40,974
32,002
40,935
THE MARCUS CORPORATION
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands)
September 26,
2024
December 28,
2023
Assets:
Cash and cash equivalents
$
28,415
$
55,589
Restricted cash
4,630
4,249
Accounts receivable
28,309
19,703
Assets held for sale
—
—
Other current assets
26,391
22,175
Property and equipment, net
686,993
682,262
Operating lease right-of-use assets
168,404
179,788
Other assets
103,817
101,337
Total Assets
$
1,046,959
$
1,065,103
Liabilities and Shareholders'
Equity:
Accounts payable
$
39,284
$
37,384
Income taxes
847
—
Taxes other than income taxes
17,730
18,585
Other current liabilities
76,317
80,283
Current portion of finance lease
obligations
2,546
2,579
Current portion of operating lease
obligations
14,315
15,290
Current maturities of long-term debt
10,460
10,303
Finance lease obligations
10,989
12,753
Operating lease obligations
167,384
178,582
Long-term debt
162,633
159,548
Deferred income taxes
34,719
32,235
Other long-term obligations
47,443
46,389
Equity
462,292
471,172
Total Liabilities and Shareholders'
Equity
$
1,046,959
$
1,065,103
THE MARCUS CORPORATION
Business Segment
Information
(Unaudited)
(In thousands)
Theatres
Hotels/
Resorts
Corporate
Items
Total
13 Weeks Ended September 26,
2024
Revenues
$
143,843
$
88,738
$
87
$
232,668
Operating income (loss)
21,761
17,041
(6,020
)
32,782
Depreciation and amortization
11,347
5,789
138
17,274
Adjusted EBITDA
33,187
23,074
(3,986
)
52,275
13 Weeks Ended September 28,
2023
Revenues
$
126,585
$
82,098
$
83
$
208,766
Operating income (loss)
11,377
14,377
(4,821
)
20,933
Depreciation and amortization
14,258
4,817
83
19,158
Adjusted EBITDA
26,695
19,446
(3,811
)
42,330
39 Weeks Ended September 26,
2024
Revenues
$
326,565
$
220,432
$
250
$
547,247
Operating income (loss)
18,803
17,996
(18,445
)
18,354
Depreciation and amortization
33,900
15,701
387
49,988
Adjusted EBITDA
54,412
34,489
(12,375
)
76,526
39 Weeks Ended September 28,
2023
Revenues
$
359,811
$
207,975
$
263
$
568,049
Operating income (loss)
32,707
15,450
(15,402
)
32,755
Depreciation and amortization
37,063
13,706
259
51,028
Adjusted EBITDA
71,749
30,372
(11,635
)
90,486
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
Consolidated
September 26,
2024
September 28,
2023
September 26,
2024
September 28,
2023
Net cash flow provided by (used in)
operating activities
$
30,497
$
21,316
$
51,374
$
68,642
Net cash flow provided by (used in)
investing activities
(17,757
)
(10,240
)
(58,397
)
(26,882
)
Net cash flow provided by (used in)
financing activities
(17,480
)
(19,848
)
(19,770
)
(26,184
)
Capital expenditures
(18,487
)
(9,940
)
(53,770
)
(25,836
)
THE MARCUS CORPORATION
Reconciliation of Net earnings
(loss) to Adjusted EBITDA
(Unaudited)
(In thousands)
13 Weeks Ended
39 Weeks Ended
September 26,
2024
September 28,
2023
September 26,
2024
September 28,
2023
Net earnings (loss)
$
23,314
$
12,234
$
(8,773
)
$
16,234
Add (deduct):
Investment income
(809
)
(445
)
(1,674
)
(1,064
)
Interest expense
3,062
2,869
8,160
8,970
Other expense (income)
390
477
1,121
1,355
(Gain) Loss on disposition of property,
equipment and other assets
115
242
95
1,019
Equity (earnings) losses from
unconsolidated joint ventures
9
(75
)
446
127
Income tax expense (benefit)
5,406
5,873
3,756
7,133
Depreciation and amortization
17,274
19,158
49,988
51,028
Share-based compensation (a)
2,225
1,313
7,157
5,000
Impairment charges (b)
—
684
472
684
Theatre exit costs (c)
—
—
136
—
Insured losses (recoveries) (d)
(206
)
—
239
—
Debt conversion expense (e)
1,410
—
15,318
—
Other non-recurring (f)
85
—
85
—
Adjusted EBITDA
$
52,275
$
42,330
$
76,526
$
90,486
Reconciliation of Operating
income (loss) to Adjusted EBITDA by Reportable Segment
(Unaudited)
(In thousands)
13 Weeks Ended September 26,
2024
39 Weeks Ended September 26,
2024
Theatres
Hotels & Resorts
Corp. Items
Total
Theatres
Hotels & Resorts
Corp. Items
Total
Operating income (loss)
$
21,761
$
17,041
$
(6,020
)
$
32,782
$
18,803
$
17,996
$
(18,445
)
$
18,354
Depreciation and amortization
11,347
5,789
138
17,274
33,900
15,701
387
49,988
(Gain) loss on disposition of property,
equipment and other assets
126
(11
)
—
115
99
(4
)
—
95
Share-based compensation (a)
159
255
1,811
2,225
763
796
5,598
7,157
Impairment charges (b)
—
—
—
—
472
—
—
472
Theatre exit costs (c)
—
—
—
—
136
—
—
136
Insured losses (recoveries) (d)
(206
)
—
—
(206
)
239
—
—
239
Other non-recurring (f)
—
—
85
85
—
—
85
85
Adjusted EBITDA
$
33,187
$
23,074
$
(3,986
)
$
52,275
$
54,412
$
34,489
$
(12,375
)
$
76,526
13 Weeks Ended September 28,
2023
39 Weeks Ended September 28,
2023
Theatres
Hotels & Resorts
Corp. Items
Total
Theatres
Hotels & Resorts
Corp. Items
Total
Operating income (loss)
$
11,377
$
14,377
$
(4,821
)
$
20,933
$
32,707
$
15,450
$
(15,402
)
$
32,755
Depreciation and amortization
14,258
4,817
83
19,158
37,063
13,706
259
51,028
(Gain) loss on disposition of property,
equipment and other assets
233
9
—
242
537
482
—
1,019
Share-based compensation (a)
143
243
927
1,313
758
734
3,508
5,000
Impairment charges (b)
684
—
—
684
684
—
—
684
Adjusted EBITDA
$
26,695
$
19,446
$
(3,811
)
$
42,330
$
71,749
$
30,372
$
(11,635
)
$
90,486
(a)
Non-cash expense related to
share-based compensation programs.
(b)
Non-cash impairment charges
related to one permanently closed theatre location in the second
quarter of fiscal 2024 and one permanently closed theatre location
in fiscal 2023.
(c)
Non-recurring costs related to
the closure and exit of one theatre location in the second quarter
of fiscal 2024.
(d)
Repair costs and insurance
recoveries that are non-operating in nature related to insured
property damage at one theatre location.
(e)
Debt conversion expense for
repurchases of $99.9 million aggregate principal amount of
Convertible Notes. See Convertible Senior Notes Repurchases in the
“Liquidity and Capital Resources” section of MD&A included in
the fiscal 2024 third quarter Form 10-Q for further discussion.
(f)
Other non-recurring includes
professional fees related to convertible debt repurchase
transactions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031770635/en/
Chad Paris (414) 905-1100 investors@marcuscorp.com
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