Marcus Theatres® achieves record results and again outperforms the industry; strong operating performance for Marcus® Hotels & Resorts
First Quarter Results
-
Total revenues for the first quarter of fiscal 2016 were
$125,444,000 , a 5.7% increase from revenues of$118,707,000 for the comparable period in 2015. -
Operating income was
$11,346,000 for the first quarter of fiscal 2016, a 49.1% increase from operating income of$7,609,000 for the comparable prior period in 2015. -
Net earnings attributable to The
Marcus Corporation were$5,452,000 for the first quarter of fiscal 2016, a 68.4% increase from net earnings attributable to TheMarcus Corporation of$3,237,000 for the comparable period in 2015. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.20 for the first quarter of fiscal 2016, a 66.7% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.12 for the comparable prior period in 2015.
“Fiscal 2016 is off to a great start, with record revenues for
“First quarter revenues for Marcus Theatres increased 10.8% and operating income rose 17.7% over the comparable prior year period, with a particularly strong March film slate ending the quarter on a high note. The division outperformed the national box office by approximately six percentage points, according to Rentrak, compared to the same corresponding weeks in the prior year,” said Marcus.
“The significant investments in our theatres are making a strong contribution to our overall performance, including our attendance gains and an 11.4% increase in concession revenues in the first quarter. Our record first quarter results were achieved despite a number of screens that were closed for construction during the period,” said Rolando B. Rodriguez, president and chief executive officer of Marcus Theatres.
“In December, we opened 17 newly renovated UltraScreen DLX®
and SuperScreen DLXSM premium large format screens
with DreamLoungerSM recliner seating, and followed that up
with two new UltraScreen DLXauditoriums in February.
We added five more all-DreamLounger locations in March and
Rodriguez said the top-performing films for the division in the first quarter were Deadpool, Star Wars: The Force Awakens, Zootopia, Batman v Superman: Dawn of Justice and The Revenant.
“Jungle Book has performed well early in the second quarter. The
busy summer season starts in May, with anticipated films opening through
the end of the second quarter including Captain America: Civil War, X
Men: Apocalypse, Alice Through the Looking Glass, Teenage Mutant Ninja
Turtles: Out of the Shadows, Finding Dory and
“Our growth strategies include building new theatres, acquisitions and additional investments in our existing theatres to bring our distinctive features and amenities to more movie-goers,” he said.
“We plan to begin construction on two new theatres in 2016 – a replacement theatre and our first stand-alone all in-theatre dining location. We are also continuing to expand our successful food and beverage concepts, with one Zaffiro’s SM Express and two new Reel Sizzle® locations opening in the second quarter. Reel Sizzle is our newest concept inspired by the iconic diners of the 50s that represents a growth opportunity for us,” said Rodriguez.
“In April, we purchased the Country Club Hills Cinema, a 16-screen
theatre in
“Marcus Hotels & Resorts’ first quarter revenue per available room
(RevPAR) for comparable company-owned properties increased 4.4% and the
division’s operating loss improved by a significant 28.0%, compared to
the comparable period in 2015. The majority of our hotels reported
improved first quarter operating results, including our
“We are managing costs and increasing profitability, while maintaining
our high levels of customer service. Our operating margin improved two
percentage points in the first quarter of 2016, compared to the
comparable prior period,” said
“We continue to invest in our existing properties to maintain and
enhance their value. We renovated the recently acquired iconic SafeHouse®
restaurant in
“As we increase our visibility as a national hotel management company, one of our major strengths is the established infrastructure we can bring to hotel owners and developers. This includes our highly awarded web development team that has produced nationally recognized websites, mobile apps and social media campaigns. We recently established a new business unit named Graydient Creative that will extend this experience to other companies in the hospitality, retail, theatre and entertainment industries. An example of Graydient Creative’s work is our new website, MarcusHotels.com, which was unveiled this past quarter,” added Khairallah.
Balance Sheet
“During the first quarter, we increased our quarterly cash dividend by
7.1% and repurchased 257,000 shares of our common stock, while still
ending the quarter with a debt-to-total capitalization ratio of only
40%. Our strong balance sheet gives us the ability to return capital to
shareholders through our dividend policy and share repurchases, while
also continuing to invest in our two businesses and pursue future growth
opportunities,” said
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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) | ||||||||||
| 13 Weeks Ended | ||||||||||
| March 31, | March 26, | |||||||||
| 2016 | 2015 | |||||||||
| Revenues: | ||||||||||
| Theatre admissions | $ | 46,914 | $ | 42,343 | ||||||
| Rooms | 20,052 | 20,686 | ||||||||
| Theatre concessions | 29,881 | 26,834 | ||||||||
| Food and beverage | 14,545 | 15,170 | ||||||||
| Other revenues | 14,052 | 13,674 | ||||||||
| Total revenues | 125,444 | 118,707 | ||||||||
| Costs and expenses: | ||||||||||
| Theatre operations | 40,298 | 36,392 | ||||||||
| Rooms | 9,301 | 9,780 | ||||||||
| Theatre concessions | 7,736 | 7,071 | ||||||||
| Food and beverage | 12,761 | 13,376 | ||||||||
| Advertising and marketing | 4,988 | 5,369 | ||||||||
| Administrative | 14,604 | 14,241 | ||||||||
| Depreciation and amortization | 10,191 | 9,730 | ||||||||
| Rent | 2,119 | 2,154 | ||||||||
| Property taxes | 4,143 | 4,046 | ||||||||
| Other operating expenses | 7,957 | 8,623 | ||||||||
| Impairment charge | - | 316 | ||||||||
| Total costs and expenses | 114,098 | 111,098 | ||||||||
| Operating income | 11,346 | 7,609 | ||||||||
| Other income (expense): | ||||||||||
| Investment income (loss) | 8 | (22 | ) | |||||||
| Interest expense | (2,409 | ) | (2,427 | ) | ||||||
| Loss on disposition of property, equipment and other assets | (113 | ) | (252 | ) | ||||||
| Equity losses from unconsolidated joint ventures, net | (21 | ) | (98 | ) | ||||||
| (2,535 | ) | (2,799 | ) | |||||||
| Earnings before income taxes | 8,811 | 4,810 | ||||||||
| Income taxes | 3,531 | 1,764 | ||||||||
| Net earnings | 5,280 | 3,046 | ||||||||
| Net loss attributable to noncontrolling interests | (172 | ) | (191 | ) | ||||||
| Net earnings attributable to The Marcus Corporation | $ | 5,452 | $ | 3,237 | ||||||
| Net earnings per common share attributable to | ||||||||||
| The Marcus Corporation - diluted | $ | 0.20 | $ | 0.12 | ||||||
| Weighted average shares outstanding - diluted | 27,759 | 27,753 | ||||||||
| THE MARCUS CORPORATION | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | (Audited) | |||||||
| March 31, | December 31, | |||||||
| 2016 | 2015 | |||||||
| Assets: | ||||||||
| Cash, cash equivalents and restricted cash | $ | 24,909 | $ | 24,691 | ||||
| Accounts and notes receivable | 10,762 | 13,366 | ||||||
| Deferred income taxes | 2,807 | 2,807 | ||||||
| Other current assets | 6,851 | 7,041 | ||||||
| Property and equipment, net | 673,345 | 670,702 | ||||||
| Other assets | 88,229 | 88,901 | ||||||
| Total Assets | $ | 806,903 | $ | 807,508 | ||||
| Liabilities and Shareholders' Equity: | ||||||||
| Accounts payable | $ | 22,993 | $ | 28,737 | ||||
| Income taxes | 5,750 | 3,490 | ||||||
| Taxes other than income taxes | 14,179 | 17,303 | ||||||
| Other current liabilities | 50,407 | 55,500 | ||||||
| Current portion of capital lease obligation | 5,271 | 5,181 | ||||||
| Current maturities of long-term debt | 42,740 | 18,292 | ||||||
| Capital lease obligation | 13,829 | 15,192 | ||||||
| Long-term debt | 196,453 | 207,376 | ||||||
| Deferred income taxes | 46,117 | 46,212 | ||||||
| Deferred compensation and other | 44,712 | 44,527 | ||||||
| Equity | 364,452 | 365,698 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 806,903 | $ | 807,508 | ||||
| THE MARCUS CORPORATION | ||||||||||||||
| Business Segment Information | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In thousands) | ||||||||||||||
| Hotels/ | Corporate | |||||||||||||
| Theatres | Resorts | Items | Total | |||||||||||
| 13 Weeks Ended March 31, 2016 | ||||||||||||||
| Revenues | $ | 80,477 | $ | 44,832 | $ | 135 | $ | 125,444 | ||||||
| Operating income (loss) | 17,805 | (2,552 | ) | (3,907 | ) | 11,346 | ||||||||
| Depreciation and amortization | 5,858 | 4,241 | 92 | 10,191 | ||||||||||
| 13 Weeks Ended March 26, 2015 | ||||||||||||||
| Revenues | $ | 72,642 | $ | 45,958 | $ | 107 | $ | 118,707 | ||||||
| Operating income (loss) | 15,129 | (3,546 | ) | (3,974 | ) | 7,609 | ||||||||
| Depreciation and amortization | 5,288 | 4,352 | 90 | 9,730 | ||||||||||
| 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. | ||||||||||||||
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Source: The
The Marcus Corporation
Douglas A. Neis
(414) 905-1100