Total assets cross
Fourth Quarter Fiscal 2017 Highlights
-
Total revenues for the fourth quarter of fiscal 2017 were a record
$158,167,000 , a 14.0% increase from revenues of$138,747,000 for the fourth quarter of fiscal 2016. -
Operating income for the fourth quarter of fiscal 2017 was a record
$17,394,000 , an 11.0% increase from operating income of$15,664,000 for the fourth quarter of fiscal 2016. -
Net earnings attributable to The
Marcus Corporation were a record$34,441,000 for the fourth quarter of fiscal 2017, a 294.0% increase from net earnings attributable to TheMarcus Corporation of$8,742,000 for the fourth quarter of fiscal 2016. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$1.21 for the fourth quarter of fiscal 2017, a 290.3% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.31 for the fourth quarter of fiscal 2016. -
Net earnings attributable to The
Marcus Corporation for the fourth quarter of fiscal 2017 were favorably impacted by a one-time reduction of deferred income taxes of$21.2 million related to the future lower federal tax rate resulting from theDecember 22, 2017 signing of the Tax Cuts and Jobs Act of 2017. The one-time adjustment increased fiscal 2017 net earnings attributable to TheMarcus Corporation by approximately$0.75 per diluted common share.
Fiscal 2017 Highlights
-
Total revenues were a record
$622,714,000 for fiscal 2017, a 14.5% increase from revenues of$543,864,000 for fiscal 2016. -
Operating income was a record
$75,595,000 for fiscal 2017, an 8.1% increase from operating income of$69,954,000 for fiscal 2016. -
Net earnings attributable to The
Marcus Corporation were$64,996,000 for fiscal 2017, a 71.5% increase from net earnings attributable to TheMarcus Corporation of$37,902,000 for fiscal 2016. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$2.29 for fiscal 2017, a 68.4% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$1.36 for fiscal 2016. -
Net earnings attributable to The
Marcus Corporation for fiscal 2017 were favorably impacted by the one-time reduction of deferred income taxes described above.
“Strong contributions from both divisions resulted in record revenues,
operating income and net earnings for both the fourth quarter and full
year 2017,” said
Revenues for Marcus Theatres increased 19.0% for the fourth quarter and 22.3% for fiscal 2017, while operating income was up 8.0% in the fourth quarter and 11.9% for fiscal 2017. On a comparable theatre basis, the division outperformed national box office revenues by 5.2 percentage points in the fourth quarter and 1.6 percentage points for the full year, according to Rentrak.
“As expected, the holiday film slate proved to be very strong for Marcus Theatres. Rebounding from a weak summer movie season, the fourth quarter of fiscal 2017 was the division’s best fourth quarter ever, helping to drive record results for the full year. This was on top of our previous record performance in fiscal 2016,” said Marcus.
During 2017, Marcus Theatres opened two new theatres, including our
first BistroPlexSM dining and movie concept, and added
DreamLoungerSM recliner seating to 15 additional theatres,
including six
“Our record results in 2017 were a direct result of the investments we
continue to make in our theatres, including our DreamLounger recliners,
premium large-format auditoriums and variety of food and beverage
concepts. In addition, our innovative pricing strategies and Magical
Movie RewardsSM loyalty program, now with nearly 2.6 million
members, set Marcus Theatres apart as the premier destination for an
exceptional moviegoing experience,” said
The five top-performing films for Marcus Theatres in the fourth quarter
were Star Wars: The Last Jedi, Thor: Ragnarok,
“The first quarter is off to a good start. Popular films including Star
Wars: The Last Jedi, Jumanji: Welcome to the Jungle and The
Greatest Showman have carried over from the fourth quarter, and new
films such as Fifty Shades Freed and this past week’s huge
blockbuster, Black Panther,have been well received. A
number of additional films, including
Marcus Hotels & Resorts’ revenue per available room (RevPAR) for
comparable company-owned properties increased 2.7% in the fourth
quarter, outperforming both the industry and the division’s competitive
set in its markets. For the full year, RevPAR increased 0.9%,
outperforming our competitive set by nearly four percentage points. An
increased average daily rate was the primary contributor to our fourth
quarter RevPAR growth, with results also benefiting from guest bookings
at the 29 new all-season villas that opened at the
Early in the fourth quarter of fiscal 2017, Marcus Hotels & Resorts
ceased management of The Westin® Atlanta Perimeter North in
Numerous Marcus Hotels & Resorts hotels and restaurants were recognized by prestigious organizations for their commitment to excellence in 2017. Among the recognitions include four properties being recognized as top hotels in Condé Nast Traveler’s 30th annual Readers’ Choice Awards, and 23 hotels and restaurants receiving the TripAdvisor® 2017 Certificate of Excellence.
“In 2017, we continued to deliver memorable experiences for our guests,
while maintaining our focus on improving operating efficiency. Our
growth strategy includes pursuing strategic opportunities to enhance our
existing properties while also adding new management contracts to our
portfolio. We were thrilled to kick off 2018 by announcing our plans to
rebrand the InterContinental Milwaukee into a creatively bold
independent arts hotel, and to assume management of
Return of Capital to Shareholders
“Yesterday, we announced a 20% increase in the cash dividend rate, our
fourth dividend increase in the last three years. 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
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) | |||||||||||||||||
| 13 Weeks Ended | 52 Weeks Ended | ||||||||||||||||
| Dec. 28, | Dec. 29, | Dec. 28, | Dec. 29, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Theatre admissions | $ | 60,869 | $ | 48,985 | $ | 227,091 | $ | 186,768 | |||||||||
| Rooms | 24,032 | 23,183 | 106,876 | 105,167 | |||||||||||||
| Theatre concessions | 39,624 | 32,331 | 148,989 | 120,975 | |||||||||||||
| Food and beverage | 18,140 | 16,767 | 70,627 | 67,551 | |||||||||||||
| Other revenues | 15,502 | 17,481 | 69,131 | 63,403 | |||||||||||||
| Total revenues | 158,167 | 138,747 | 622,714 | 543,864 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Theatre operations | 51,426 | 42,681 | 197,270 | 160,729 | |||||||||||||
| Rooms | 10,169 | 9,804 | 40,286 | 40,213 | |||||||||||||
| Theatre concessions | 12,968 | 7,967 | 43,634 | 32,407 | |||||||||||||
| Food and beverage | 15,282 | 13,729 | 59,375 | 55,526 | |||||||||||||
| Advertising and marketing | 6,080 | 5,549 | 23,960 | 21,582 | |||||||||||||
| Administrative | 17,012 | 17,982 | 68,666 | 63,620 | |||||||||||||
| Depreciation and amortization | 14,175 | 10,807 | 51,719 | 41,832 | |||||||||||||
| Rent | 2,151 | 2,107 | 11,869 | 8,384 | |||||||||||||
| Property taxes | 4,240 | 3,951 | 18,815 | 16,257 | |||||||||||||
| Other operating expenses | 7,270 | 8,506 | 31,525 | 33,360 | |||||||||||||
| Total costs and expenses | 140,773 | 123,083 | 547,119 | 473,910 | |||||||||||||
| Operating income | 17,394 | 15,664 | 75,595 | 69,954 | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Investment income | 359 | 273 | 588 | 298 | |||||||||||||
| Interest expense | (2,646 | ) | (2,183 | ) | (12,100 | ) | (9,176 | ) | |||||||||
| Gain (loss) on disposition of property, equipment and other assets | 4,401 | (366 | ) | 3,981 | (844 | ) | |||||||||||
| Equity earnings (losses) from unconsolidated joint ventures, net | (29 | ) | 31 | 46 | 301 | ||||||||||||
| 2,085 | (2,245 | ) | (7,485 | ) | (9,421 | ) | |||||||||||
| Earnings before income taxes | 19,479 | 13,419 | 68,110 | 60,533 | |||||||||||||
| Income taxes (benefit) | (14,946 | ) | 4,758 | 3,625 | 22,994 | ||||||||||||
| Net earnings | 34,425 | 8,661 | 64,485 | 37,539 | |||||||||||||
| Net loss attributable to noncontrolling interests | (16 | ) | (81 | ) | (511 | ) | (363 | ) | |||||||||
| Net earnings attributable to The Marcus Corporation | $ | 34,441 | $ | 8,742 | $ | 64,996 | $ | 37,902 | |||||||||
|
Net earnings per common share attributable to The Marcus Corporation - diluted |
$ | 1.21 | $ | 0.31 | $ | 2.29 | $ | 1.36 | |||||||||
| Weighted average shares outstanding - diluted | 28,385 | 28,235 | 28,393 | 27,957 | |||||||||||||
| THE MARCUS CORPORATION | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | (Audited) | |||||||||
| December 28, | December 29, | |||||||||
| 2017 | 2016 | |||||||||
| Assets: | ||||||||||
| Cash, cash equivalents and restricted cash | $ | 20,747 | $ | 8,705 | ||||||
| Accounts and notes receivable | 27,230 | 14,761 | ||||||||
| Refundable income taxes | 15,335 |
|
1,672 | |||||||
| Other current assets | 13,409 | 11,005 | ||||||||
| Property and equipment, net | 860,064 | 789,198 | ||||||||
| Other assets | 81,012 | 85,925 | ||||||||
| Total Assets | $ | 1,017,797 | $ | 911,266 | ||||||
| Liabilities and Shareholders' Equity: | ||||||||||
| Accounts payable | $ | 51,541 | $ | 31,206 | ||||||
| Taxes other than income taxes | 19,638 | 17,261 | ||||||||
| Other current liabilities | 68,918 | 63,568 | ||||||||
| Current portion of capital lease obligation | 7,570 | 6,598 | ||||||||
| Current maturities of long-term debt | 12,016 | 12,040 | ||||||||
| Capital lease obligation | 28,282 | 26,106 | ||||||||
| Long-term debt | 289,813 | 271,343 | ||||||||
| Deferred income taxes | 38,233 | 46,433 | ||||||||
| Deferred compensation and other | 56,662 | 45,064 | ||||||||
| Equity | 445,124 | 391,647 | ||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,017,797 | $ | 911,266 | ||||||
| THE MARCUS CORPORATION | ||||||||||||||
| Business Segment Information | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In thousands) | ||||||||||||||
| Theatres |
Hotels/ |
Corporate |
Total | |||||||||||
| 13 Weeks Ended December 28, 2017 | ||||||||||||||
| Revenues | $ | 106,314 | $ | 51,728 | $ | 125 | $ | 158,167 | ||||||
| Operating income (loss) | 21,838 | 55 | (4,499 | ) | 17,394 | |||||||||
| Depreciation and amortization | 9,448 | 4,642 | 85 | 14,175 | ||||||||||
| 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 | ||||||||||
| 52 Weeks Ended December 28, 2017 | ||||||||||||||
| Revenues | $ | 401,291 | $ | 220,866 | $ | 557 | $ | 622,714 | ||||||
| Operating income (loss) | 80,319 | 12,748 | (17,472 | ) | 75,595 | |||||||||
| Depreciation and amortization | 33,448 | 17,912 | 359 | 51,719 | ||||||||||
| 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 | ||||||||||
|
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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View source version on businesswire.com: http://www.businesswire.com/news/home/20180222005337/en/
Source: The
The Marcus Corporation
Douglas A. Neis
(414) 905-1100