Comparisons impacted by weaker film slate, additional week last year and unusual items
Fourth Quarter Fiscal 2013 Highlights
-
Total revenues for the 13-week fourth quarter of fiscal 2013 were
$100,590,000 , a 6.7% decrease from revenues of$107,845,000 for the 14-week fourth quarter of fiscal 2012. -
Operating income was
$8,256,000 for the 13-week fourth quarter of fiscal 2013, a 35.7% decrease from operating income of$12,831,000 for the 14-week fourth quarter of fiscal 2012. -
Net earnings attributable to The
Marcus Corporation were$3,475,000 for the 13-week fourth quarter of fiscal 2013, a 48.1% decrease from net earnings attributable to TheMarcus Corporation of$6,699,000 for the 14-week fourth quarter of fiscal 2012. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.13 for the 13-week fourth quarter of fiscal 2013, a 43.5% decrease from net earnings per diluted common share attributable to TheMarcus Corporation of$0.23 for the 14-week fourth quarter of fiscal 2012. -
Last year’s results benefited from an additional 53rd week
of operations (the 14-week quarter) that contributed approximately
$7.6 million in revenues,$2.1 million in operating income and$1.1 million , or$0.04 per diluted common share, in net earnings to the fourth quarter and fiscal 2012 results. -
Last year’s results also benefited from an approximately
$700,000 one-time pre-tax gain on sale of securities held for investment purposes, or approximately$0.02 per diluted common share.
Fiscal 2013 Highlights
-
Total revenues were
$412,836,000 for the 52-week fiscal 2013, a 0.3% decrease from revenues of$413,898,000 for the 53-week fiscal 2012. -
Operating income was
$38,204,000 for the 52-week fiscal 2013, a 17.9% decrease from operating income of$46,515,000 for the 53-week fiscal 2012. -
Net earnings attributable to The
Marcus Corporation were$17,506,000 for the 52-week fiscal 2013, a 23.0% decrease from net earnings attributable to TheMarcus Corporation of$22,734,000 for the 53-week fiscal 2012. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.63 for the 52-week fiscal 2013, a 19.2% decrease from net earnings per diluted common share of$0.78 for the 53-week fiscal 2012.
“A weaker film slate for Marcus Theatres® and the fact that fiscal 2013
was a 52-week year compared to last year’s 53 weeks contributed to our
reduced results for the fourth quarter and fiscal 2013. Not surprisingly
in the cyclical theatre industry, our business has improved
significantly in recent weeks, thanks to a very strong early summer film
line-up. Comparative results for
“Our fiscal 2013 results were also impacted by unusual items totaling
“Marcus Theatres had a difficult comparison against last year’s record fourth quarter and full year results. Last year’s fourth quarter included two blockbuster films, The Hunger Games and The Avengers, which ended up being our highest grossing films of the year. Without comparable films, particularly during March and April, and one less week in the quarter, we simply couldn’t match last year’s results,” said Marcus.
“The top films in the fourth quarter of fiscal 2013 were Iron Man 3
(3D), Oz: The Great and Powerful (3D) and The Croods. (3D),”
said
Olson said the new fiscal year is off to an excellent start, with much
stronger film product. “Man of Steel,
“We continue to invest in our existing properties and expand our
successful food and beverage concepts. We opened our fourth Take Five
cocktail lounge at the Village Pointe Cinema in
“Revenues for
“The average daily rate increased for the tenth consecutive quarter and
the third straight year. We are pleased with the continued recovery of
the lodging industry, however overall rates are still not back to
pre-recession levels and group business continues to be challenged,”
said
“We are currently overseeing an extensive, multi-million-dollar
renovation at The Cornhusker that includes our second Miller Time Pub
& Grill restaurant developed in association with world-class
brewer
He added that exclusive club lounges at
“The summer season has started strong and we expect our
Summary
“In fiscal 2013, we returned capital to shareholders through cash
dividends, including a special
“Our debt-to-total capitalization ratio was 44% at the end of the year
and we had
Conference Call and Webcast
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
increasing depreciation expenses, reduced operating profits during major
property renovations, and preopening and start-up costs due to the
capital intensive nature of our businesses; (3) the effects of adverse
economic conditions in our markets, particularly with respect to our
hotels and resorts division; (4) the effects of adverse weather
conditions, particularly during the winter in the Midwest and in our
other markets; (5) the effects on our occupancy and room rates of the
relative industry supply of available rooms at comparable lodging
facilities in our markets; (6) the effects of competitive conditions in
our markets; (7) our ability to identify properties to acquire, develop
and/or manage and the continuing availability of funds for such
development; and (8) 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 | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
13 Weeks | 14 Weeks | 52 Weeks | 53 Weeks | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||
May 30, | May 31, | May 30, | May 31, | |||||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||||||
Revenues: | ||||||||||||||||||||
Theatre admissions | $ | 32,424 | $ | 37,587 | $ | 134,523 | $ | 142,103 | ||||||||||||
Rooms | 24,543 | 24,653 | 99,668 | 94,890 | ||||||||||||||||
Theatre concessions | 18,172 | 19,842 | 73,189 | 74,478 | ||||||||||||||||
Food and beverage | 13,100 | 13,550 | 55,458 | 54,465 | ||||||||||||||||
Other revenues | 12,351 | 12,213 | 49,998 | 47,962 | ||||||||||||||||
Total revenues | 100,590 | 107,845 | 412,836 | 413,898 | ||||||||||||||||
Costs and expenses: | ||||||||||||||||||||
Theatre operations | 28,271 | 31,333 | 115,078 | 119,009 | ||||||||||||||||
Rooms | 10,056 | 9,480 | 38,260 | 35,896 | ||||||||||||||||
Theatre concessions | 4,884 | 4,793 | 19,816 | 18,447 | ||||||||||||||||
Food and beverage | 10,826 | 10,402 | 43,062 | 41,022 | ||||||||||||||||
Advertising and marketing | 5,481 | 5,836 | 23,571 | 22,551 | ||||||||||||||||
Administrative | 10,378 | 11,739 | 45,266 | 43,825 | ||||||||||||||||
Depreciation and amortization | 8,337 | 8,416 | 33,827 | 34,525 | ||||||||||||||||
Rent | 2,110 | 2,065 | 8,418 | 8,247 | ||||||||||||||||
Property taxes | 3,821 | 3,347 | 14,836 | 13,106 | ||||||||||||||||
Other operating expenses | 7,693 | 7,603 | 30,986 | 30,755 | ||||||||||||||||
Impairment charge | 477 | - | 1,512 | - | ||||||||||||||||
Total costs and expenses | 92,334 | 95,014 | 374,632 | 367,383 | ||||||||||||||||
Operating income | 8,256 | 12,831 | 38,204 | 46,515 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Investment income | 193 | 898 | 494 | 1,155 | ||||||||||||||||
Interest expense | (2,454 | ) | (2,298 | ) | (9,309 | ) | (9,272 | ) | ||||||||||||
Extinguishment of debt | - | - | 6,008 | - | ||||||||||||||||
Gain (loss) on disposition of property, equipment and other assets | 23 | 161 | (266 | ) | (759 | ) | ||||||||||||||
Equity earnings (losses) from unconsolidated joint ventures, net | (132 | ) | 10 | (450 | ) | (200 | ) | |||||||||||||
(2,370 | ) | (1,229 | ) | (3,523 | ) | (9,076 | ) | |||||||||||||
Earnings before income taxes | 5,886 | 11,602 | 34,681 | 37,439 | ||||||||||||||||
Income taxes | 2,299 | 4,903 | 11,350 | 14,705 | ||||||||||||||||
Net earnings | 3,587 | 6,699 | 23,331 | 22,734 | ||||||||||||||||
Net earnings attributable to noncontrolling interests | 112 | - | 5,825 | - | ||||||||||||||||
Net earnings attributable to The Marcus Corporation | $ | 3,475 | $ | 6,699 | $ | 17,506 | $ | 22,734 | ||||||||||||
Net earnings per common share attributable to | ||||||||||||||||||||
The Marcus Corporation - diluted | $ | 0.13 | $ | 0.23 | $ | 0.63 | $ | 0.78 | ||||||||||||
Weighted-average shares outstanding - diluted | 27,090 | 29,143 | 27,865 | 29,308 | ||||||||||||||||
THE MARCUS CORPORATION | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
(Unaudited) | (Audited) | |||||||
May 30, | May 31, | |||||||
2013 | 2012 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 18,053 | $ | 12,402 | ||||
Accounts and notes receivable | 8,568 | 8,467 | ||||||
Refundable income taxes | 255 | 2,950 | ||||||
Deferred income taxes | 2,877 | 2,797 | ||||||
Other current assets | 6,384 | 7,020 | ||||||
Property and equipment, net | 625,757 | 614,645 | ||||||
Other assets | 84,802 | 84,730 | ||||||
Total Assets | $ | 746,696 | $ | 733,011 | ||||
Liabilities and Shareholders' Equity: | ||||||||
Accounts and notes payable | $ | 25,330 | $ | 18,945 | ||||
Taxes other than income taxes | 14,000 | 13,110 | ||||||
Other current liabilities | 36,123 | 37,102 | ||||||
Current portion of capital lease obligation | 4,562 | 4,189 | ||||||
Current maturities of long-term debt | 11,193 | 97,918 | ||||||
Capital lease obligation | 28,241 | 31,489 | ||||||
Long-term debt | 231,580 | 106,276 | ||||||
Deferred income taxes | 43,516 | 44,372 | ||||||
Deferred compensation and other | 35,455 | 35,821 | ||||||
Equity | 316,696 | 343,789 | ||||||
Total Liabilities and Shareholders' Equity | $ | 746,696 | $ | 733,011 | ||||
THE MARCUS CORPORATION | |||||||||||||||||
Business Segment Information | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Hotels/ |
Corporate |
||||||||||||||||
Theatres | Resorts |
Items |
Total | ||||||||||||||
13 Weeks Ended May 30, 2013 | |||||||||||||||||
Revenues | $ | 53,702 | $ | 46,726 | $ | 162 | $ | 100,590 | |||||||||
Operating income (loss) | 9,881 | 1,558 | (3,183 | ) | 8,256 | ||||||||||||
Depreciation and amortization | 4,103 | 4,087 | 147 | 8,337 | |||||||||||||
14 Weeks Ended May 31, 2012 | |||||||||||||||||
Revenues | $ | 60,767 | $ | 46,834 | $ | 244 | $ | 107,845 | |||||||||
Operating income (loss) | 13,625 | 2,727 | (3,521 | ) | 12,831 | ||||||||||||
Depreciation and amortization | 4,269 | 4,021 | 126 | 8,416 | |||||||||||||
52 Weeks Ended May 30, 2013 | |||||||||||||||||
Revenues | $ | 219,533 | $ | 192,676 | $ | 627 | $ | 412,836 | |||||||||
Operating income (loss) | 40,907 | 10,662 | (13,365 | ) | 38,204 | ||||||||||||
Depreciation and amortization | 16,753 | 16,520 | 554 | 33,827 | |||||||||||||
53 Weeks Ended May 31, 2012 | |||||||||||||||||
Revenues | $ | 227,914 | $ | 185,177 | $ | 807 | $ | 413,898 | |||||||||
Operating income (loss) | 47,065 | 12,706 | (13,256 | ) | 46,515 | ||||||||||||
Depreciation and amortization | 18,189 | 15,837 | 499 | 34,525 | |||||||||||||
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.
Source: The
The Marcus Corporation
Douglas A. Neis, (414) 905-1100