Marcus Theatres and Marcus Hotels & Resorts achieve record revenues, outperform competition
First Quarter Fiscal 2018 Highlights
- Total revenues for the first quarter of fiscal 2018 were a record
$168,191,000 , a 1.7% increase from revenues of$165,456,000 for the first quarter of fiscal 2017. - Operating income was
$17,016,000 for the first quarter of fiscal 2018, a 7.8% decrease from operating income of$18,453,000 for the first quarter of fiscal 2017. - Net earnings attributable to The
Marcus Corporation were$9,821,000 for the first quarter of fiscal 2018, a 3.9% increase from net earnings attributable to TheMarcus Corporation of$9,453,000 for the first quarter of fiscal 2017. - Net earnings per diluted common share attributable to The
Marcus Corporation were$0.35 for the first quarter of fiscal 2018, a 6.1% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.33 for the first quarter of fiscal 2017.
“We are pleased by the strong start to the year, with record revenues that represented the highest revenues in any quarter in our history. Our net earnings were also a record and benefited from a lower income tax rate as part of the tax reform legislation signed into law in December 2017,” said
Revenues for Marcus Theatres were up 0.8% over the first quarter of 2017. Operating income for the quarter was the second highest on record, down 3.0% from the first quarter of 2017, which broke all prior quarterly records. Although operating income declined slightly due to a weaker film slate compared to last year, the division outperformed the change in the national box office revenues compared to the same corresponding weeks in the prior year, according to Rentrak. “Marcus Theatres’ record revenues for the quarter were achieved despite multiple screens being out of service for renovations,” said Marcus.
“Our performance this quarter was driven in part by our
“We added DreamLoungerSM recliner seating and select food and beverage concepts to our eighth
The five top-performing films for Marcus Theatres in the first quarter of fiscal 2018 were Black Panther; Jumanji: Welcome to the Jungle; Star Wars: The Last Jedi; The Greatest Showman; and Fifty Shades Freed.
“The second quarter is already off to a strong start, thanks to the continued success of Black Panther and new films such as A
Marcus Hotels & Resorts’ revenue per available room (RevPAR) for comparable company-owned properties decreased 2.4% in the first quarter; however, the division outperformed the competitive set in its markets.
“The first quarter is traditionally Marcus Hotels & Resorts’ weakest quarter due to the typically slow winter season in our Midwestern markets. Despite that, total revenues increased 3.4% and operating losses improved in the quarter due in part to strong contributions from our food and beverage offerings,” said Marcus.
During the quarter, Marcus Hotels & Resorts announced that it was selected to manage the newly-opened
Return of Capital to Shareholders
“During the first quarter, 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 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 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; (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 29, | March 30, | |||||||||
|
2018 |
2017 |
|||||||||
| Revenues: | ||||||||||
| Theatre admissions | $ | 63,006 | $ | 63,841 | ||||||
| Rooms | 20,671 | 20,934 | ||||||||
| Theatre concessions | 41,413 | 40,896 | ||||||||
| Food and beverage | 15,803 | 15,040 | ||||||||
| Other revenues | 19,526 | 17,243 | ||||||||
| 160,419 | 157,954 | |||||||||
| Cost reimbursements | 7,772 | 7,502 | ||||||||
| Total revenues | 168,191 | 165,456 | ||||||||
| Costs and expenses: | ||||||||||
| Theatre operations | 54,655 | 54,685 | ||||||||
| Rooms | 9,501 | 9,198 | ||||||||
| Theatre concessions | 11,961 | 11,118 | ||||||||
| Food and beverage | 14,065 | 13,467 | ||||||||
| Advertising and marketing | 5,114 | 5,562 | ||||||||
| Administrative | 17,282 | 16,529 | ||||||||
| Depreciation and amortization | 13,904 | 12,248 | ||||||||
| Rent | 2,951 | 3,273 | ||||||||
| Property taxes | 5,214 | 5,078 | ||||||||
| Other operating expenses | 8,756 | 8,343 | ||||||||
| Reimbursed costs | 7,772 | 7,502 | ||||||||
| Total costs and expenses | 151,175 | 147,003 | ||||||||
| Operating income | 17,016 | 18,453 | ||||||||
| Other income (expense): | ||||||||||
| Investment income (loss) | (36 | ) | 72 | |||||||
| Interest expense | (3,309 | ) | (2,924 | ) | ||||||
| Other expense | (496 | ) | (428 | ) | ||||||
| Loss on disposition of property, equipment and other assets | - | (399 | ) | |||||||
| Equity earnings from unconsolidated joint ventures, net | 52 | 55 | ||||||||
| (3,789 | ) | (3,624 | ) | |||||||
| Earnings before income taxes | 13,227 | 14,829 | ||||||||
| Income taxes | 3,421 | 5,712 | ||||||||
| Net earnings | 9,806 | 9,117 | ||||||||
| Net loss attributable to noncontrolling interests | (15 | ) | (336 | ) | ||||||
| Net earnings attributable to The Marcus Corporation | $ | 9,821 | $ | 9,453 | ||||||
| Net earnings per common share attributable to | ||||||||||
| The Marcus Corporation - diluted | $ | 0.35 | $ | 0.33 | ||||||
| Weighted average shares outstanding - diluted | 28,434 | 28,383 | ||||||||
| THE MARCUS CORPORATION | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | (Audited) | |||||||
| March 29, | December 28, | |||||||
|
2018 |
2017 |
|||||||
| Assets: | ||||||||
| Cash, cash equivalents and restricted cash | $ | 13,406 | $ | 20,747 | ||||
| Accounts and notes receivable | 19,157 | 27,230 | ||||||
| Refundable income taxes | 11,721 |
|
15,335 | |||||
| Other current assets | 13,171 | 13,409 | ||||||
| Property and equipment, net | 853,441 | 860,064 | ||||||
| Other assets | 81,160 | 81,012 | ||||||
| Total Assets | $ | 992,056 | $ | 1,017,797 | ||||
| Liabilities and Shareholders' Equity: | ||||||||
| Accounts payable | $ | 30,818 | $ | 51,541 | ||||
| Taxes other than income taxes | 17,271 | 19,638 | ||||||
| Other current liabilities | 62,881 | 68,918 | ||||||
| Current portion of capital lease obligations | 7,405 | 7,570 | ||||||
| Current maturities of long-term debt | 12,199 | 12,016 | ||||||
| Capital lease obligations | 26,559 | 28,282 | ||||||
| Long-term debt | 290,494 | 289,813 | ||||||
| Deferred income taxes | 38,240 | 38,233 | ||||||
| Deferred compensation and other | 56,640 | 56,662 | ||||||
| Equity | 449,549 | 445,124 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 992,056 | $ | 1,017,797 | ||||
| THE MARCUS CORPORATION | ||||||||||||||||||
| Business Segment Information | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||
| Hotels/ | Corporate | |||||||||||||||||
| Theatres | Resorts | Items | Total | |||||||||||||||
| 13 Weeks Ended March 29, 2018 | ||||||||||||||||||
| Revenues(1) | $ | 112,935 | $ | 55,168 | $ | 88 | $ | 168,191 | ||||||||||
| Operating income (loss) | 23,983 | (2,649 | ) | (4,318 | ) | 17,016 | ||||||||||||
| Depreciation and amortization | 9,228 | 4,590 | 86 | 13,904 | ||||||||||||||
| 13 Weeks Ended March 30, 2017 | ||||||||||||||||||
| Revenues(1) | $ | 112,006 | $ | 53,340 | $ | 110 | $ | 165,456 | ||||||||||
| Operating income (loss) | 24,723 | (2,675 | ) | (3,595 | ) | 18,453 | ||||||||||||
| Depreciation and amortization | 7,793 | 4,357 | 98 | 12,248 | ||||||||||||||
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.
(1) Revenues include cost reimbursements of
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Source: The
The Marcus Corporation
Douglas A. Neis
(414) 905-1100