Star Wars film drives strong five-week period for Marcus Theatres®; both divisions achieve significantly improved performance for the 31-week transition period
Last Five Weeks Highlights
-
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 TheMarcus 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 TheMarcus Corporation of$0.03 for the comparable four-week period in fiscal 2015.
31-Week Transition Period Highlights
-
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 TheMarcus 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 TheMarcus Corporation of$0.61 for the comparable 30-week period in fiscal 2015.
“We had an outstanding finish to the transition period ended
“The transition period was very strong for Marcus Theatres, as the division once again outperformed the industry during the reported periods. The national box office was up 34.5% for the last five weeks of the transition period compared to the same five weeks in calendar 2014 according to Rentrak, while our box office, after adjusting last year’s numbers for the additional week of operations, was up 37.9%. For the 31-week transition period compared to the same 31 weeks in calendar 2014, the national box office was up 10.0%, while our box office increased 13.7%,” said Marcus.
Marcus said the excellent results during the last five weeks were driven by the record-breaking box office revenues of Star Wars: The Force Awakens. He noted that the division benefited from the addition of 17 newly renovated premium large format screens with DreamLounger™ recliner seating that opened in time for the new Star Wars film.
“Our successful food and beverage concepts also continued to contribute
to our improved overall performance, with concession revenues per person
up 8.9% for the five-week period and 10.8% for the 31 weeks,” said
In addition to the blockbuster performance of Star Wars, Rodriguez said two other top performing films for Marcus Theatres in the five-week period were The Hunger Games: Mockingjay – Part 2 and The Good Dinosaur. For the 31-week period, Star Wars remained the top film, followed by Jurassic World, Inside Out, Minions and The Hunger Games: Mockingjay – Part 2.
“Looking ahead, although comparisons to last year’s recast first quarter
will be negatively impacted by the fact that last year included the week
between Christmas and New Year’s, a number of films have performed well
to this point. Star Wars continued its momentum into the new year
and the recent openings of
“Upcoming films with good box-office potential for the remainder of the
fiscal 2016 first quarter include Gods of
“We are continuing to invest in our existing theatres to add new features and amenities designed to create the ultimate movie-going experience for our guests. We recently opened two new UltraScreen® auditoriums at one of our existing theatres. We now offer at least one premium large format screen at 63% of our first-run, company-owned theatres. Renovations underway at five additional theatres, each with DreamLounger recliner seating and selected food and beverage outlets, are scheduled to be completed in the coming weeks,” said Rodriguez.
“Marcus Hotels & Resorts achieved increased revenues and operating income for both the last five weeks and the 31-week transition period. Revenue per available room (RevPAR) for comparable company-owned hotels increased in both periods, driven by a higher average daily rate,” said Marcus.
“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 20th percentile on
“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
Return of Capital to Shareholders
“On
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
Conference Call and Webcast
A telephone replay of the conference call will be available through
About The
Headquartered in
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 MARCUS CORPORATION | ||||||||||||||||
| Consolidated Statements of Earnings | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
|
5 Weeks |
4 Weeks |
31 Weeks |
30 Weeks |
|||||||||||||
|
Ended |
Ended |
Ended |
Ended |
|||||||||||||
|
December 31, |
December 25, |
December 31, |
December 25, |
|||||||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||||||||
| Revenues: | ||||||||||||||||
| Theatre admissions | $ | 24,643 | $ | 11,469 | $ | 104,606 | $ | 85,608 | ||||||||
| Rooms | 6,443 | 5,538 | 70,093 | 69,897 | ||||||||||||
| Theatre concessions | 16,420 | 7,466 | 69,206 | 52,872 | ||||||||||||
| Food and beverage | 6,565 | 5,167 | 44,590 | 41,456 | ||||||||||||
| Other revenues | 5,330 | 3,170 | 35,772 | 30,807 | ||||||||||||
| Total revenues | 59,401 | 32,810 | 324,267 | 280,640 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Theatre operations | 20,851 | 10,265 | 91,747 | 73,081 | ||||||||||||
| Rooms | 3,448 | 2,977 | 24,933 | 25,104 | ||||||||||||
| Theatre concessions | 4,403 | 2,149 | 19,958 | 14,711 | ||||||||||||
| Food and beverage | 5,375 | 4,438 | 34,656 | 32,425 | ||||||||||||
| Advertising and marketing | 2,531 | 2,080 | 14,842 | 16,178 | ||||||||||||
| Administrative | 7,039 | 3,682 | 36,392 | 29,029 | ||||||||||||
| Depreciation and amortization | 3,405 | 3,178 | 24,073 | 22,412 | ||||||||||||
| Rent | 688 | 695 | 5,040 | 5,009 | ||||||||||||
| Property taxes | 806 | 1,131 | 8,630 | 8,756 | ||||||||||||
| Other operating expenses | 2,851 | 2,500 | 19,582 | 19,911 | ||||||||||||
| Total costs and expenses | 51,397 | 33,095 | 279,853 | 246,616 | ||||||||||||
| Operating income | 8,004 | (285 | ) | 44,414 | 34,024 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Investment income (loss) | (10 | ) | 8 | 15 | 58 | |||||||||||
| Interest expense | (892 | ) | (765 | ) | (5,675 | ) | (5,557 | ) | ||||||||
| Loss on disposition of property, equipment and other assets | (459 | ) | (218 | ) | (490 | ) | (719 | ) | ||||||||
| Equity losses from unconsolidated joint ventures, net | (56 | ) | (49 | ) | (36 | ) | (63 | ) | ||||||||
| (1,417 | ) | (1,024 | ) | (6,186 | ) | (6,281 | ) | |||||||||
| 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 | ||||||
| (In thousands) | ||||||
| (Unaudited) | (Audited) | |||||
| December 31, | May 28, | |||||
| 2015 | 2015 | |||||
| Assets: | ||||||
| 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 | ||||
| Other assets | 89,305 | 83,352 | ||||
| Total Assets | $ | 807,912 | $ | 809,042 | ||
| Liabilities and Shareholders' Equity: | ||||||
| Accounts payable | $ | 28,737 | $ | 36,776 | ||
| Income taxes | 3,490 | - | ||||
| 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 | ||||
| Long-term debt | 207,780 | 229,669 | ||||
| Deferred income taxes | 46,212 | 47,502 | ||||
| Deferred compensation and other | 44,527 | 42,075 | ||||
| Equity | 365,698 | 346,235 | ||||
| Total Liabilities and Shareholders' Equity | $ | 807,912 | $ | 809,042 | ||
| THE MARCUS CORPORATION | ||||||||||||||||
| Business Segment Information | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Hotels/ | Corporate | |||||||||||||||
| Theatres | Resorts | Items | Total | |||||||||||||
| 5 Weeks Ended December 31, 2015 | ||||||||||||||||
| Revenues | $ | 43,058 | $ | 16,258 | $ | 85 | $ | 59,401 | ||||||||
| 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 | ||||||||||||||||
| Revenues | $ | 19,687 | $ | 13,092 | $ | 31 | $ | 32,810 | ||||||||
| 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 | ||||||||||||||||
| Revenues | $ | 182,845 | $ | 141,088 | $ | 334 | $ | 324,267 | ||||||||
| 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 | ||||||||||||||||
| Revenues | $ | 145,349 | $ | 134,965 | $ | 326 | $ | 280,640 | ||||||||
| 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. | ||||||||||||||||
|
|
||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160224005349/en/
Source: The
The Marcus Corporation
Douglas A. Neis
(414) 905-1100