- Total revenues for the last five weeks of the transition period ended December 31, 2015 were $59,401,000, an 81.0% increase from revenues of $32,810,000 for the comparable four-week period in fiscal 2015.
- Operating income was $8,004,000 for the last five weeks of the transition period, compared to an operating loss of $285,000 for the comparable four-week period in fiscal 2015.
- Net earnings attributable to The Marcus Corporation were $3,969,000 for the last five weeks of the transition period, compared to a net loss attributable to The Marcus Corporation of $873,000 for the comparable four-week period in fiscal 2015.
- Net earnings per diluted common share attributable to The Marcus Corporation were $0.14 for the last five weeks of the transition period, compared to a net loss per diluted common share attributable to The Marcus Corporation of $0.03 for the comparable four-week period in fiscal 2015.
- Total revenues for the 31-week transition period ended December 31, 2015 were $324,267,000, a 15.5% increase from revenues of $280,640,000 for the comparable 30-week period in fiscal 2015.
- Operating income was $44,414,000 for the 31-week transition period, a 30.5% increase from operating income of $34,024,000 for the comparable 30-week period in fiscal 2015.
- Net earnings attributable to The Marcus Corporation were $23,565,000 for the 31-week transition period, a 40.4% increase from net earnings attributable to The Marcus Corporation of $16,782,000 for the comparable 30-week period in fiscal 2015.
- Net earnings per diluted common share attributable to The Marcus Corporation were $0.84 for the 31-week transition period, a 37.7% increase from net earnings per diluted common share attributable to The Marcus Corporation of $0.61 for the comparable 30-week period in fiscal 2015.
"We are executing on our strategy to manage costs and increase profitability in all areas of our properties. Our operating margin improved to 12.2% for the 31-week transition period, compared to 10.7% for the comparable 30-week period in fiscal 2015. We also continue to deliver an exceptional experience to our guests. Our properties, in aggregate, rank in the top 20 th percentile on TripAdvisor ® in their respective markets," said Joseph Khairallah, chief operating officer of Marcus Hotels & Resorts."Investing in our properties remains a top priority, with projects underway at several of our hotels to maintain and enhance their value. In addition, we are renovating the SafeHouse Restaurant and Bar in Milwaukee to enhance the espionage experience, while maintaining the iconic restaurant's spy-themed culture," said Khairallah. Return of Capital to Shareholders "On February 15, 2016, we announced a 7.1% increase in the quarterly cash dividend, our third consecutive year of increased dividend payments. Our strong balance sheet gives us the ability to return capital to shareholders through cash dividends and share repurchases, while at the same time continuing to invest in our two businesses and pursue potential growth opportunities," said Douglas A. Neis, chief financial officer and treasurer of The Marcus Corporation. Change in Fiscal Year End As previously announced, the company changed its fiscal year end from the last Thursday in May to the last Thursday in December. The company will report its financial results for the 31-week period from May 29, 2015 to December 31, 2015 on a transition report on Form 10-K and thereafter file reports for periods based on the new fiscal year. Updated information on the company's change in fiscal year, including comparative historical financial information and the impact of the extra week in the transition period will be available today on the "presentations" page in the investor relations section of the company's website: www.marcuscorp.com. Conference Call and Webcast Marcus Corporation management will hold a conference call today, February 24, 2016 at 10:00 a.m. Central/11:00 a.m. Eastern time to discuss the final transition period results. 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 617-614-6206 and entering the passcode 26282023. 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, March 2, 2016, by dialing 1-888-286-8010 and entering the passcode 50073319. The webcast will be archived on the company's website until its next earnings release.
About The Marcus CorporationHeadquartered in Milwaukee, Wisconsin, 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®, currently owns or manages 668 screens at 53 locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. The company's lodging division, Marcus® Hotels & Resorts, owns and/or manages 19 hotels, resorts and other properties in 10 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 availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division, 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; (2) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (3) the effects on our occupancy and room rates of the relative industry supply of available rooms at comparable lodging facilities in our markets; (4) the effects of competitive conditions in our markets; (5) our ability to achieve expected benefits and performance from our strategic initiatives and acquisitions; (6) 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 businesses; (7) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (8) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; and (9) 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. 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|
|(In thousands, except per share data)|
|5 Weeks||4 Weeks||31 Weeks||30 Weeks|
|December 31,||December 25,||December 31,||December 25,|
|Food and beverage||6,565||5,167||44,590||41,456|
|Costs and expenses:|
|Food and beverage||5,375||4,438||34,656||32,425|
|Advertising and marketing||2,531||2,080||14,842||16,178|
|Depreciation and amortization||3,405||3,178||24,073||22,412|
|Other operating expenses||2,851||2,500||19,582||19,911|
|Total costs and expenses||51,397||33,095||279,853||246,616|
|Other income (expense):|
|Investment income (loss)||(10||)||8||15||58|
|Loss on disposition of property, equipment and other assets||(459||)||(218||)||(490||)||(719||)|
|Equity losses from unconsolidated joint ventures, net||(56||)||(49||)||(36||)||(63||)|
|Earnings (loss) before income taxes||6,587||(1,309||)||38,228||27,743|
|Income taxes (benefit)||2,705||(342||)||14,785||11,043|
|Net earnings (loss)||3,882||(967||)||23,443||16,700|
|Net loss attributable to noncontrolling interests||(87||)||(94||)||(122||)||(82||)|
|Net earnings (loss) attributable to The Marcus Corporation||$||3,969||$||(873||)||$||23,565||$||16,782|
|Net earnings (loss) per common share attributable to|
|The Marcus Corporation - diluted||$||0.14||$||(0.03||)||$||0.84||$||0.61|
|Weighted ave. shares outstanding - diluted||27,950||27,616||27,917||27,593|
|THE MARCUS CORPORATION|
|Condensed Consolidated Balance Sheets|
|December 31,||May 28,|
|Cash, cash equivalents and restricted cash||$||24,691||$||15,483|
|Accounts and notes receivable||13,366||16,339|
|Refundable income taxes||-||4,022|
|Deferred income taxes||2,807||2,997|
|Other current assets||7,041||6,732|
|Property and equipment, net||670,702||680,117|
|Liabilities and Shareholders' Equity:|
|Taxes other than income taxes||17,303||15,099|
|Other current liabilities||55,500||50,574|
|Current portion of capital lease obligation||5,181||5,053|
|Current maturities of long-term debt||18,292||17,742|
|Capital lease obligation||15,192||18,317|
|Deferred income taxes||46,212||47,502|
|Deferred compensation and other||44,527||42,075|
|Total Liabilities and Shareholders' Equity||$||807,912||$||809,042|
|THE MARCUS CORPORATION|
|Business Segment Information|
|5 Weeks Ended December 31, 2015|
|Operating income (loss)||11,773||(1,951||)||(1,818||)||8,004|
|Depreciation and amortization||1,935||1,428||42||3,405|
|4 Weeks Ended December 25, 2014|
|Operating income (loss)||3,083||(2,255||)||(1,113||)||(285||)|
|Depreciation and amortization||1,660||1,475||43||3,178|
|31 Weeks Ended December 31, 2015|
|Operating income (loss)||37,162||17,189||(9,937||)||44,414|
|Depreciation and amortization||13,215||10,529||329||24,073|
|30 Weeks Ended December 25, 2014|
|Operating income (loss)||27,720||14,478||(8,174||)||34,024|
|Depreciation and amortization||11,395||10,757||260||22,412|
|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.|