Both divisions achieve record first quarter revenues and operating income; Marcus Theatres® continues to outperform the industry
First Quarter Fiscal 2016 Highlights
-
Total revenues for the first quarter of fiscal 2016 were a record
$149,190,000 , a 13.2% increase from revenues of$131,769,000 for the first quarter of fiscal 2015. -
Operating income was
$25,856,000 for the first quarter of fiscal 2016, a 14.0% increase from operating income of$22,689,000 for the first quarter of fiscal 2015. -
Net earnings attributable to The
Marcus Corporation were$14,651,000 for the first quarter of fiscal 2016, a 17.8% increase from net earnings attributable to TheMarcus Corporation of$12,432,000 for the first quarter of fiscal 2015. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.53 for the first quarter of fiscal 2016, a 17.8% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.45 for the first quarter of fiscal 2015.
“Fiscal 2016 is off to an excellent start. Not only did we report record
revenues for The
“This was another record quarter for Marcus Theatres. The division
achieved a 20.1% increase in revenues and a 21.6% increase in operating
income, and again outperformed the industry. The strong summer film
slate generated a 10.1% increase in the national box office for the
corresponding weeks of our first quarter according to
“In addition, our industry-leading attendance gains and a 13.1% increase
in concession revenues per person contributed to a substantial 27.5%
increase in overall concession revenues,” said
“As our record performance indicates, the significant investments we are making in our theatres and amenities, along with our successful marketing strategies and popular Magical Movie RewardsSM loyalty program, are producing positive results. The customer response to our DreamLoungerSM oversized recliner seating, UltraScreen DLX® and SuperScreen DLXSM auditoriums, and food and beverage concepts including Zaffiro’s® Express, Take FiveSM Lounges and Big Screen BistroSM in-theatre dining, continues to be outstanding,” said Rodriguez.
Rodriguez said the five top-performing films for Marcus Theatres in the
first quarter of fiscal 2016 were Jurassic World, Inside Out,
Minions, Ant-Man and Mission Impossible – Rogue Nation. “As
we begin our second quarter, we look forward to upcoming potential hit
films such as Maze Runner: The Scorch Trials, Everest,
“Marcus Hotels & Resorts also achieved record results, with a 5.6% increase in revenues and a 4.6% increase in operating income. With a focus this quarter on increasing total revenues, our overall revenue per available room (RevPAR) actually decreased 1.1% compared to last year, due in part to reduced group occupancy in the first half of the summer at a couple of our hotels. Increased food and beverage revenues, an increase in our average daily rate and strong cost controls contributed to our improved operating income for the quarter. Business improved significantly in the second half of the summer, and the quarter ended strong,” said Marcus.
“Early in our first quarter, we celebrated the opening of the new
“As previously announced, we purchased the SafeHouse® restaurant
and bar in
Marcus noted that in July the company announced an agreement to sell its
company owned and operated
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About The
Celebrating its 80th anniversary in 2015,
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 | |||||||||
August 27, | August 28, | ||||||||
2015 | 2014 | ||||||||
Revenues: | |||||||||
Theatre admissions | $ | 48,222 | $ | 41,345 | |||||
Rooms | 34,186 | 34,681 | |||||||
Theatre concessions | 31,780 | 24,922 | |||||||
Food and beverage | 18,809 | 16,155 | |||||||
Other revenues | 16,193 | 14,666 | |||||||
Total revenues | 149,190 | 131,769 | |||||||
Costs and expenses: | |||||||||
Theatre operations | 41,679 | 34,863 | |||||||
Rooms | 11,187 | 11,402 | |||||||
Theatre concessions | 9,038 | 6,721 | |||||||
Food and beverage | 14,762 | 12,063 | |||||||
Advertising and marketing | 6,489 | 7,388 | |||||||
Administrative | 14,566 | 12,392 | |||||||
Depreciation and amortization | 10,426 | 9,078 | |||||||
Rent | 2,193 | 2,154 | |||||||
Property taxes | 3,821 | 3,906 | |||||||
Other operating expenses | 9,173 | 9,113 | |||||||
Total costs and expenses | 123,334 | 109,080 | |||||||
Operating income | 25,856 | 22,689 | |||||||
Other income (expense): | |||||||||
Investment income | 5 | 25 | |||||||
Interest expense | (2,401 | ) | (2,404 | ) | |||||
Gain (loss) on disposition of property, equipment and other assets | 195 | (6 | ) | ||||||
Equity losses from unconsolidated joint ventures, net | (19 | ) | (41 | ) | |||||
(2,220 | ) | (2,426 | ) | ||||||
Earnings before income taxes | 23,636 | 20,263 | |||||||
Income taxes | 9,183 | 7,987 | |||||||
Net earnings | 14,453 | 12,276 | |||||||
Net loss attributable to noncontrolling interests | (198 | ) | (156 | ) | |||||
Net earnings attributable to The Marcus Corporation | $ | 14,651 | $ | 12,432 | |||||
Net earnings per common share attributable to | |||||||||
The Marcus Corporation - diluted | $ | 0.53 | $ | 0.45 | |||||
Weighted average shares outstanding - diluted | 27,882 | 27,613 |
THE MARCUS CORPORATION | |||||||
Condensed Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(Unaudited) | (Audited) | ||||||
August 27, | May 28, | ||||||
2015 | 2015 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 14,735 | $ | 15,483 | |||
Accounts and notes receivable | 19,829 | 16,339 | |||||
Refundable income taxes | - | 4,022 | |||||
Deferred income taxes | 3,093 | 2,997 | |||||
Assets held for sale | 17,395 | 17,623 | |||||
Other current assets | 6,670 | 6,732 | |||||
Property and equipment, net | 657,339 | 662,494 | |||||
Other assets | 85,913 | 83,352 | |||||
Total Assets | $ | 804,974 | $ | 809,042 | |||
Liabilities and Shareholders' Equity: | |||||||
Accounts payable | $ | 24,472 | $ | 36,776 | |||
Income taxes | 4,474 | - | |||||
Taxes other than income taxes | 14,537 | 15,099 | |||||
Other current liabilities | 42,799 | 50,574 | |||||
Current portion of capital lease obligation | 5,081 | 5,053 | |||||
Current maturities of long-term debt | 18,093 | 17,742 | |||||
Capital lease obligation | 17,044 | 18,317 | |||||
Long-term debt | 229,303 | 229,669 | |||||
Deferred income taxes | 48,155 | 47,502 | |||||
Deferred compensation and other | 42,839 | 42,075 | |||||
Equity | 358,177 | 346,235 | |||||
Total Liabilities and Shareholders' Equity | $ | 804,974 | $ | 809,042 |
THE MARCUS CORPORATION | |||||||||||||
Business Segment Information | |||||||||||||
(Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
Hotels/ | Corporate | ||||||||||||
Theatres | Resorts | Items | Total | ||||||||||
13 Weeks Ended August 27, 2015 | |||||||||||||
Revenues | $ | 83,324 | $ | 65,741 | $ | 125 | $ | 149,190 | |||||
Operating income (loss) | 18,060 | 11,512 | (3,716 | ) | 25,856 | ||||||||
Depreciation and amortization | 5,686 | 4,600 | 140 | 10,426 | |||||||||
13 Weeks Ended August 28, 2014 | |||||||||||||
Revenues | $ | 69,387 | $ | 62,247 | $ | 135 | $ | 131,769 | |||||
Operating income (loss) | 14,854 | 11,004 | (3,169 | ) | 22,689 | ||||||||
Depreciation and amortization | 4,730 | 4,247 | 101 | 9,078 | |||||||||
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