Marcus Theatres® achieves a record fourth quarter and year; continues to significantly outperform the industry
Fourth Quarter Fiscal 2016 Highlights
-
Total revenues for the 13-week fourth quarter of fiscal 2016 were
$138,747,000 , a 1.8% decrease from revenues of$141,315,000 for the comparable 14-week period in 2015. -
Operating income was
$15,664,000 for the 13-week fourth quarter of fiscal 2016, a 2.0% decrease from operating income of$15,977,000 for the comparable 14-week period in 2015. -
Net earnings attributable to The
Marcus Corporation were$8,742,000 for the 13-week fourth quarter of fiscal 2016, a 14.2% increase from net earnings attributable to TheMarcus Corporation of$7,657,000 for the comparable 14-week period in 2015. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.31 for the 13-week fourth quarter of fiscal 2016, a 14.8% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.27 for the comparable 14-week period in 2015.
Fiscal 2016 Highlights
-
Total revenues were a record
$543,864,000 for the 52-week fiscal 2016, a 2.3% increase from revenues of$531,694,000 for the comparable 53-week period in 2015.
-
Operating income was a record
$69,954,000 for the 52-week fiscal 2016, a 14.6% increase from operating income of$61,023,000 for the comparable 53-week period in 2015. -
Net earnings attributable to The
Marcus Corporation were$37,902,000 for the 52-week fiscal 2016, a 23.1% increase from net earnings attributable to TheMarcus Corporation of$30,782,000 for the comparable 53-week period in 2015. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$1.36 for the 52-week fiscal 2016, a 23.6% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$1.10 for the comparable 53-week period in 2015.
“The fourth quarter was a strong finish to fiscal 2016. We achieved
record revenues and operating income for the year, as well as a 23%
increase in net earnings, despite the extra week in the comparable 2015
period. Marcus Theatres had a record fourth quarter and fiscal year and
continued to significantly outperform the industry. Operating income for
Marcus Hotels & Resorts was up year-over-year and the division also
outperformed the industry, although reduced group business at some of
our hotels and one less week of operations compared to 2015 impacted the
division’s fourth-quarter performance. Both divisions made solid
contributions to our record results for fiscal 2016,” said Gregory S.
Marcus, president and chief executive officer of The
“Not only did Marcus Theatres achieve record results for the fourth quarter and fiscal 2016 despite the extra week in both periods last year, this was the best quarter ever reported by the division. Revenues increased 4.7% for the fourth quarter and 7.0% for the full year, while operating income increased 11.9% in the fourth quarter and 14.1% for fiscal 2016 compared to the comparable periods last year. The division outperformed the change in national box office revenues by 9.0 percentage points in the fourth quarter and 6.4 percentage points for the full year, according to Rentrak, compared to the same corresponding weeks in the prior year periods. We also benefited from an increase in ancillary revenues during the fiscal 2016 periods,” said Marcus.
“While the national box office increased just 2.2% in 2016 compared to
2015, our results were significantly better. This was due to the
multi-million dollar investments we are making in our DreamLoungerSM
recliner seating, premium large-format screens, successful food and
beverage concepts, innovative marketing initiatives and our growing
loyalty program. Our strong leadership and excellent execution by our
team continue to drive our solid results and industry outperformance,”
said
“On
“We are currently rolling out new promotions across the Wehrenberg circuit and plan to bring our signature features and amenities to select theatres in 2017,” said Rodriguez. “Strategic acquisitions, combined with ongoing investments in our existing theatres, will continue to be important components of our growth strategy moving forward.”
During the fourth quarter, the division also opened the Marcus Country
Club Hills Cinema in
“We currently have two new theatres under construction – a 10-screen
theatre in
The five top-performing films for Marcus Theatres in the fourth quarter of fiscal 2016 were Rogue One: A Star Wars Story, Fantastic Beasts and Where to Find Them, Doctor Strange, Trolls and Moana. For fiscal 2016, the five top-performing movies were Rogue One: A Star Wars Story, Finding Dory, The Secret Life of Pets, Deadpool and Captain America: Civil War.
“The first quarter is off to a good start. Popular films including Rogue
One: A Star Wars Story, Sing and La La Land carried over from
the fourth quarter, and new films such as Hidden Figures, Split, The
LEGO Batman Movie,
“Marcus Hotels & Resorts’ revenue per available room (RevPAR) for
comparable company-owned properties decreased 2.6% in the fourth
quarter, consistent with the competitive set in its markets. However,
RevPAR increased 3.0% overall in fiscal 2016, due in large part to a
higher average daily rate,” said Marcus. He noted that total revenues
and operating income for the division during fiscal 2016 were impacted
by last year’s sale of the
“Our operating income increased 12% in fiscal 2016, despite the extra
week of operations during the fourth quarter last year. Reduced group
sales and a resulting decrease in food and beverage revenues, which were
exacerbated by the lack of a New Year’s Eve in fiscal 2016, impacted our
fourth quarter comparisons. Our ability to improve our operating
performance is a direct result of our ongoing focus on managing costs
and increasing profitability, while continually maintaining our high
standards for customer service,” said
As a testament to the division’s commitment to providing the highest
quality customer service, four of its owned and managed properties
received the prestigious
We continue to invest in our company-owned properties to maintain and
enhance their value,” said Khairallah. “Construction is underway on the
addition of 29 spacious, all-season villas to the
“We are looking forward to the summer 2017 opening of the new
Return of Capital to Shareholders
“Yesterday, we announced an 11.1% increase in the cash dividend rate,
our third dividend increase in the last two years. Our total return to
shareholders was 68% for fiscal 2016, and has grown at a compounded
average growth rate of more than 36% over the past three years and 22%
over the last five years, calculated on a dividend reinvested basis. Our
strong balance sheet gives us the ability to return capital to
shareholders, while at the same time continuing to invest in our two
businesses and pursue potential growth opportunities,” said Douglas A.
Neis, chief financial officer and treasurer of The
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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 | 14 Weeks | 52 Weeks | 53 Weeks | ||||||||||||||||||
| Ended | Ended | Ended | Ended | ||||||||||||||||||
| December 29, | December 31, | December 29, | December 31, | ||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 |
||||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Theatre admissions | $ | 48,985 | $ | 48,736 | $ | 186,768 | $ | 176,251 | |||||||||||||
| Rooms | 23,183 | 26,082 | 105,167 | 109,857 | |||||||||||||||||
| Theatre concessions | 32,331 | 32,407 | 120,975 | 115,081 | |||||||||||||||||
| Food and beverage | 16,767 | 19,681 | 67,551 | 71,028 | |||||||||||||||||
| Other revenues | 17,481 | 14,409 | 63,403 | 59,477 | |||||||||||||||||
| Total revenues | 138,747 | 141,315 | 543,864 | 531,694 | |||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||
| Theatre operations | 42,681 | 42,515 | 160,729 | 153,612 | |||||||||||||||||
| Rooms | 9,804 | 10,344 | 40,213 | 42,408 | |||||||||||||||||
| Theatre concessions | 7,967 | 9,227 | 32,407 | 32,279 | |||||||||||||||||
| Food and beverage | 13,729 | 15,322 | 55,526 | 57,769 | |||||||||||||||||
| Advertising and marketing | 5,549 | 6,619 | 21,582 | 23,929 | |||||||||||||||||
| Administrative | 17,982 | 17,786 | 63,620 | 60,610 | |||||||||||||||||
| Depreciation and amortization | 10,807 | 10,101 | 41,832 | 40,032 | |||||||||||||||||
| Rent | 2,107 | 2,105 | 8,384 | 8,622 | |||||||||||||||||
| Property taxes | 3,951 | 3,511 | 16,257 | 14,876 | |||||||||||||||||
| Other operating expenses | 8,506 | 7,808 | 33,360 | 33,615 | |||||||||||||||||
| Impairment charge | - | - | - | 2,919 | |||||||||||||||||
| Total costs and expenses | 123,083 | 125,338 | 473,910 | 470,671 | |||||||||||||||||
| Operating income | 15,664 | 15,977 | 69,954 | 61,023 | |||||||||||||||||
| Other income (expense): | |||||||||||||||||||||
| Investment income | 273 | 4 | 298 | 209 | |||||||||||||||||
| Interest expense | (2,183 | ) | (2,645 | ) | (9,176 | ) | (10,035 | ) | |||||||||||||
| Loss on disposition of property, equipment and other assets | (366 | ) | (669 | ) | (844 | ) | (1,233 | ) | |||||||||||||
| Equity earnings (losses) from unconsolidated joint ventures, net | 31 | (39 | ) | 301 | (160 | ) | |||||||||||||||
| (2,245 | ) | (3,349 | ) | (9,421 | ) | (11,219 | ) | ||||||||||||||
| Earnings before income taxes | 13,419 | 12,628 | 60,533 | 49,804 | |||||||||||||||||
| Income taxes | 4,758 | 4,911 | 22,994 | 19,415 | |||||||||||||||||
| Net earnings | 8,661 | 7,717 | 37,539 | 30,389 | |||||||||||||||||
| Net earnings (loss) attributable to noncontrolling interests | (81 | ) | 60 | (363 | ) | (393 | ) | ||||||||||||||
| Net earnings attributable to The Marcus Corporation | $ | 8,742 | $ | 7,657 | $ | 37,902 | $ | 30,782 | |||||||||||||
| Net earnings per common share attributable to | |||||||||||||||||||||
| The Marcus Corporation - diluted | $ | 0.31 | $ | 0.27 | $ | 1.36 | $ | 1.10 | |||||||||||||
| Weighted average shares outstanding - diluted | 28,235 | 27,957 | 27,957 | 27,924 | |||||||||||||||||
| THE MARCUS CORPORATION | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | (Audited) | ||||||||
| December 29, | December 31, | ||||||||
| 2016 | 2015 | ||||||||
| Assets: | |||||||||
| Cash, cash equivalents and restricted cash | $ | 8,705 | $ | 24,691 | |||||
| Accounts and notes receivable | 14,761 | 13,366 | |||||||
| Refundable income taxes | 1,673 | - | |||||||
| Other current assets | 11,005 | 7,041 | |||||||
| Property and equipment, net | 786,517 | 670,702 | |||||||
| Other assets | 85,925 | 88,901 | |||||||
| Total Assets | $ | 908,586 | $ | 804,701 | |||||
| Liabilities and Shareholders' Equity: | |||||||||
| Accounts payable | $ | 28,526 | $ | 28,737 | |||||
| Income taxes | - | 3,490 | |||||||
| Taxes other than income taxes | 17,261 | 17,303 | |||||||
| Other current liabilities | 63,568 | 55,500 | |||||||
| Current portion of capital lease obligation | 6,598 | 5,181 | |||||||
| Current maturities of long-term debt | 52,173 | 18,292 | |||||||
| Capital lease obligation | 26,106 | 15,192 | |||||||
| Long-term debt | 231,210 | 207,376 | |||||||
| Deferred income taxes | 46,433 | 43,405 | |||||||
| Deferred compensation and other | 45,064 | 44,527 | |||||||
| Equity | 391,647 | 365,698 | |||||||
| Total Liabilities and Shareholders' Equity | $ | 908,586 | $ | 804,701 | |||||
| THE MARCUS CORPORATION | ||||||||||||||||||
| Business Segment Information | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||
| Hotels/ | Corporate | |||||||||||||||||
| Theatres | Resorts | Items | Total | |||||||||||||||
| 13 Weeks Ended December 29, 2016 | ||||||||||||||||||
| Revenues | $ | 89,328 | $ | 49,291 | $ | 128 | $ | 138,747 | ||||||||||
| Operating income (loss) | 20,224 | (469 | ) | (4,091 | ) | 15,664 | ||||||||||||
| Depreciation and amortization | 6,395 | 4,313 | 99 | 10,807 | ||||||||||||||
| 14 Weeks Ended December 31, 2015 | ||||||||||||||||||
| Revenues | $ | 85,293 | $ | 55,849 | $ | 173 | $ | 141,315 | ||||||||||
| Operating income (loss) | 18,074 | 2,889 | (4,986 | ) | 15,977 | |||||||||||||
| Depreciation and amortization | 5,690 | 4,320 | 91 | 10,101 | ||||||||||||||
| 52 Weeks Ended December 29, 2016 | ||||||||||||||||||
| Revenues | $ | 328,165 | $ | 215,171 | $ | 528 | $ | 543,864 | ||||||||||
| Operating income (loss) | 71,754 | 14,604 | (16,404 | ) | 69,954 | |||||||||||||
| Depreciation and amortization | 24,570 | 16,895 | 367 | 41,832 | ||||||||||||||
| 53 Weeks Ended December 31, 2015 | ||||||||||||||||||
| Revenues | $ | 306,651 | $ | 224,455 | $ | 588 | $ | 531,694 | ||||||||||
| Operating income (loss) | 62,909 | 13,039 | (14,925 | ) | 61,023 | |||||||||||||
| Depreciation and amortization | 21,962 | 17,706 | 364 | 40,032 | ||||||||||||||
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/20170223005319/en/
Source: The
The Marcus Corporation
Douglas A. Neis
(414) 905-1100