- Total revenues for the second quarter of fiscal 2016 were $134,978,000, a 2.0% decrease from revenues of $137,778,000 for the comparable period in 2015.
- Operating income was $18,261,000 for the second quarter of fiscal 2016, a 3.6% increase from operating income of $17,626,000 for the comparable prior period in 2015.
- Net earnings attributable to The Marcus Corporation were $9,336,000 for the second quarter of fiscal 2016, a 3.5% increase from net earnings attributable to The Marcus Corporation of $9,017,000 for the comparable period in 2015.
- Net earnings per diluted common share attributable to The Marcus Corporation were $0.34 for the second quarter of fiscal 2016, a 6.3% increase from net earnings per diluted common share attributable to The Marcus Corporation of $0.32 for the comparable prior period in 2015.
- Total revenues for the first half of fiscal 2016 were $260,422,000, a 1.5% increase from revenues of $256,485,000 for the comparable prior period in 2015.
- Operating income was $29,607,000 for the first half of fiscal 2016, a 17.3% increase from operating income of $25,235,000 for the comparable prior period in 2015.
- Net earnings attributable to The Marcus Corporation were $14,788,000 for the first half of fiscal 2016, a 20.7% increase from net earnings attributable to The Marcus Corporation of $12,254,000 for the comparable period in 2015.
- Net earnings per diluted common share attributable to The Marcus Corporation were $0.53 for the first half of fiscal 2016, a 20.5% increase from net earnings per diluted common share attributable to The Marcus Corporation of $0.44 for the comparable prior period in 2015.
"Our third quarter is off to a very good start, with a solid July box office for films including The Legend of Tarzan, The Secret Life of Pets, Ghostbusters and Star Trek Beyond. Looking ahead, anticipated films opening through the end of the third quarter include Jason Bourne, Bad Moms, Suicide Squad, Ben-Hur, Storks and The Magnificent Seven," said Rodriguez.Marcus® Hotels & Resorts "Marcus Hotels & Resorts' revenue per available room (RevPAR) for comparable company-owned properties increased 6.9% in the second quarter and was up 5.9% for the first half of 2016. The majority of the RevPAR increase was due to a higher average daily rate (ADR), with all eight of our majority company-owned hotels reporting ADR increases for the quarter," said Marcus. He noted that total revenues for the division were impacted by last year's sale of the Hotel Phillips in Kansas City, Mo. "Operating income for Marcus Hotels & Resorts increased nearly three-fold in the second quarter as we continued to focus on managing costs and increasing profitability, while maintaining our high standards for customer service. After adjusting for an impairment charge in last year's comparable period, our operating margin improved by over four percentage points during the quarter - another solid indicator of the progress we are making," said Joseph Khairallah, chief operating officer of Marcus Hotels & Resorts. "In addition to the improvement in RevPAR and operating income, our properties also continue to outperform their competitive set in their markets. We believe this reflects our ongoing investments in our company-owned properties to maintain and enhance their value, as well as our successful track record as an experienced hotel management company," said Khairallah. "The Skirvin Hilton Hotel in Oklahoma City is currently undergoing a $4.3 million renovation that includes all 225 guest rooms and public spaces, including the lobby and popular Red Piano Lounge. The renovation will add fresh, elegant designs and décor, while carefully maintaining the historic details and beauty of the hotel," added Khairallah. Summary "With a debt-to-capitalization ratio of 39% at the end of the second quarter and a new amended and extended five-year, $225 million credit facility completed in June, we are well positioned to continue to make investments in our existing assets, seek acquisitions and other new-build growth opportunities, as well as enhance shareholder value through dividends and share repurchases when timing and market conditions are appropriate," added Marcus.
Conference Call and WebcastMarcus Corporation management will hold a conference call today, July 28, 2016 at 10:00 a.m. Central/11:00 a.m. Eastern time to discuss the second quarter 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 1-530-379-4643 and entering the passcode 42268086. 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, August 4, 2016, by dialing 1-855-859-2056 and entering passcode 42268086. The webcast will be archived on the company's website until its next earnings release. About The Marcus Corporation Headquartered 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 670 screens at 53 locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. These totals do not include a 16-screen theatre currently closed for renovations. The company's lodging division, Marcus® Hotels & Resorts, owns and/or manages 18 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 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)|
|13 Weeks Ended||26 Weeks Ended|
|June 30,||June 25,||June 30,||June 25,|
|Food and beverage||18,248||17,498||32,793||32,668|
|Costs and expenses:|
|Food and beverage||14,538||14,459||27,299||27,835|
|Advertising and marketing||5,505||5,789||10,493||11,158|
|Depreciation and amortization||10,360||9,859||20,551||19,589|
|Other operating expenses||8,116||8,336||16,073||16,959|
|Total costs and expenses||116,717||120,152||230,815||231,250|
|Other income (expense):|
|Loss on disposition of property, equipment and other assets||(604||)||(495||)||(717||)||(747||)|
|Equity earnings (losses) from unconsolidated joint ventures, net||130||(25||)||109||(123||)|
|Earnings before income taxes||15,339||14,856||24,150||19,666|
|Net earnings (loss) attributable to noncontrolling interests||10||(103||)||(162||)||(294||)|
|Net earnings attributable to The Marcus Corporation||$||9,336||$||9,017||$||14,788||$||12,254|
|Net earnings per common share attributable to|
|The Marcus Corporation - diluted||$||0.34||$||0.32||$||0.53||$||0.44|
|Weighted ave. shares outstanding - diluted||27,814||27,866||27,795||27,810|
|THE MARCUS CORPORATION|
|Condensed Consolidated Balance Sheets|
|June 30,||December 31,|
|Cash, cash equivalents and restricted cash||$||15,097||$||24,691|
|Accounts and notes receivable||19,335||13,366|
|Deferred income taxes||2,547||2,807|
|Other current assets||6,846||7,041|
|Property and equipment, net||688,057||670,702|
|Liabilities and Shareholders' Equity:|
|Taxes other than income taxes||16,061||17,303|
|Other current liabilities||48,464||55,500|
|Current portion of capital lease obligation||5,361||5,181|
|Current maturities of long-term debt||36,404||18,292|
|Capital lease obligation||12,466||15,192|
|Deferred income taxes||47,405||46,212|
|Deferred compensation and other||45,603||44,527|
|Total Liabilities and Shareholders' Equity||$||816,030||$||807,508|
|THE MARCUS CORPORATION|
|Business Segment Information|
|13 Weeks Ended June 30, 2016|
|Operating income (loss)||15,630||7,011||(4,380||)||18,261|
|Depreciation and amortization||6,089||4,183||88||10,360|
|13 Weeks Ended June 25, 2015|
|Operating income (loss)||17,397||2,430||(2,201||)||17,626|
|Depreciation and amortization||5,288||4,480||91||9,859|
|26 Weeks Ended June 30, 2016|
|Operating income (loss)||33,435||4,459||(8,287||)||29,607|
|Depreciation and amortization||11,947||8,424||180||20,551|
|26 Weeks Ended June 25, 2015|
|Operating income (loss)||32,526||(1,116||)||(6,175||)||25,235|
|Depreciation and amortization||10,576||8,832||181||19,589|
|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.|