Marcus Theatres® achieves record results and continues to outperform the industry
First Quarter Fiscal 2017 Highlights
-
Total revenues for the first quarter of fiscal 2017 were a record
$157,954,000 , a 25.9% increase from revenues of$125,444,000 for the first quarter of fiscal 2016. -
Operating income was
$18,025,000 for the first quarter of fiscal 2017, a 58.9% increase from operating income of$11,346,000 for the first quarter of fiscal 2016. -
Net earnings attributable to The
Marcus Corporation were$9,453,000 for the first quarter of fiscal 2017, a 73.4% increase from net earnings attributable to TheMarcus Corporation of$5,452,000 for the first quarter of fiscal 2016. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.33 for the first quarter of fiscal 2017, a 65.0% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.20 for the first quarter of fiscal 2016.
“Fiscal 2017 is off to an excellent start, with revenues that were
higher than any quarter in our history. Marcus Theatres drove our strong
first quarter performance, setting new all-time records for both
revenues and operating income and continuing to outperform the industry.
Marcus Hotels & Resorts achieved increased revenues and also
outperformed the industry during its traditionally slower winter
season,” said
“Marcus Theatres broke all previous quarterly records, reporting a 38.4% increase in revenues and a 38.7% increase in operating income for the first quarter of fiscal 2017. On a comparable theatre basis, the division outperformed the change in national box office revenues by 2.1 percentage points, compared to the same corresponding weeks in the prior year, according to Rentrak. This is even more significant given that a large number of screens were out of service during the quarter for renovations that will bring our signature DreamLoungerSM recliner seating and other features to more locations,” said Marcus.
“The 14 Wehrenberg Theatres® locations we acquired in
“We have extended our successful
“In addition to strategic acquisitions and investing in existing
theatres, our growth strategy also includes building new theatres. In
April, we opened the Marcus Southbridge Crossing Cinema, a 10-screen
theatre in
Construction is continuing on the division’s first stand-alone all
in-theatre dining location in
Rodriguez said the five top-performing films for Marcus Theatres in the first quarter of fiscal 2017 were Beauty and the Beast, The LEGO® Batman Movie, Hidden Figures, Logan and Rogue One: A Star Wars Story.
“The second quarter is off to a good start with the strong opening of Fate of the Furious. The busy summer season starts in May, with anticipated films opening through the end of the second quarter including Guardians of the Galaxy Vol. 2, Alien: Covenant, Baywatch, Pirates of the Caribbean: Dead Men Tell No Tales, Wonder Woman, The Mummy, Cars 3 and Transformers: The Last Knight,” said Rodriguez.
“Marcus Hotels & Resorts’ revenue per available room (RevPAR) for comparable company-owned properties increased 4.4% in the first quarter, outperforming the industry and the competitive set in its markets. The first quarter results benefitted from additional group and transient business in what is typically the division’s weakest quarter due to the impact of winter weather on our Midwestern locations,” said Marcus.
“While revenue and operating income at our eight company-majority-owned
hotels was up over the first quarter of last year, total division
operating income declined due in part to pre-opening expenses for our
new SafeHouse®
“The 29 spacious, all-season villas we are adding to the Grand Geneva®
“We are also eagerly anticipating the summer 2017 opening of the new
Omaha Marriott Downtown at
Return of Capital to Shareholders
“During the first quarter, we increased our quarterly cash dividend by
11.1%, our third dividend increase in the last two years. Our
debt-to-total capitalization ratio remained steady at 42% at the end of
the first quarter. 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 | |||||||||
| March 30, | March 31, | ||||||||
|
2017 |
2016 |
||||||||
| Revenues: | |||||||||
| Theatre admissions | $ | 63,841 | $ | 46,914 | |||||
| Rooms | 20,934 | 20,052 | |||||||
| Theatre concessions | 40,896 | 29,881 | |||||||
| Food and beverage | 15,040 | 14,545 | |||||||
| Other revenues | 17,243 | 14,052 | |||||||
| Total revenues | 157,954 | 125,444 | |||||||
| Costs and expenses: | |||||||||
| Theatre operations | 54,685 | 40,298 | |||||||
| Rooms | 9,198 | 9,301 | |||||||
| Theatre concessions | 11,118 | 7,736 | |||||||
| Food and beverage | 13,467 | 12,761 | |||||||
| Advertising and marketing | 5,562 | 4,988 | |||||||
| Administrative | 16,957 | 14,604 | |||||||
| Depreciation and amortization | 12,248 | 10,191 | |||||||
| Rent | 3,273 | 2,119 | |||||||
| Property taxes | 5,078 | 4,143 | |||||||
| Other operating expenses | 8,343 | 7,957 | |||||||
| Total costs and expenses | 139,929 | 114,098 | |||||||
| Operating income | 18,025 | 11,346 | |||||||
| Other income (expense): | |||||||||
| Investment income | 72 | 8 | |||||||
| Interest expense | (2,924 | ) | (2,409 | ) | |||||
| Loss on disposition of property, equipment and other assets | (399 | ) | (113 | ) | |||||
| Equity earnings (losses) from unconsolidated joint ventures, net | 55 | (21 | ) | ||||||
| (3,196 | ) | (2,535 | ) | ||||||
| Earnings before income taxes | 14,829 | 8,811 | |||||||
| Income taxes | 5,712 | 3,531 | |||||||
| Net earnings | 9,117 | 5,280 | |||||||
| Net loss attributable to noncontrolling interests | (336 | ) | (172 | ) | |||||
| Net earnings attributable to The Marcus Corporation | $ | 9,453 | $ | 5,452 | |||||
| Net earnings per common share attributable to | |||||||||
| The Marcus Corporation - diluted | $ | 0.33 | $ | 0.20 | |||||
| Weighted average shares outstanding - diluted | 28,383 | 27,759 | |||||||
| THE MARCUS CORPORATION | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | (Audited) | |||||||
| March 30, | December 29, | |||||||
| 2017 | 2016 | |||||||
| Assets: | ||||||||
| Cash, cash equivalents and restricted cash | $ | 14,910 | $ | 8,705 | ||||
| Accounts and notes receivable | 13,646 | 14,761 | ||||||
| Refundable income taxes | - | 1,672 | ||||||
| Other current assets | 11,461 | 11,005 | ||||||
| Property and equipment, net | 802,860 | 789,198 | ||||||
| Other assets | 85,129 | 85,925 | ||||||
| Total Assets | $ | 928,006 | $ | 911,266 | ||||
| Liabilities and Shareholders' Equity: | ||||||||
| Accounts payable | $ | 42,692 | $ | 31,206 | ||||
| Income taxes | 2,795 | - | ||||||
| Taxes other than income taxes | 16,943 | 17,261 | ||||||
| Other current liabilities | 55,609 | 63,568 | ||||||
| Current portion of capital lease obligation | 6,715 | 6,598 | ||||||
| Current maturities of long-term debt | 12,061 | 12,040 | ||||||
| Capital lease obligation | 24,371 | 26,106 | ||||||
| Long-term debt | 276,590 | 271,343 | ||||||
| Deferred income taxes | 46,425 | 46,433 | ||||||
| Deferred compensation and other | 44,465 | 45,064 | ||||||
| Equity | 399,340 | 391,647 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 928,006 | $ | 911,266 | ||||
| THE MARCUS CORPORATION | ||||||||||||||||
| Business Segment Information | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Theatres |
Hotels/ |
Corporate |
Total | |||||||||||||
| 13 Weeks Ended March 30, 2017 | ||||||||||||||||
| Revenues | $ | 111,388 | $ | 46,456 | $ | 110 | $ | 157,954 | ||||||||
| Operating income (loss) | 24,691 | (2,712 | ) | (3,954 | ) | 18,025 | ||||||||||
| Depreciation and amortization | 7,793 | 4,357 | 98 | 12,248 | ||||||||||||
| 13 Weeks Ended March 31, 2016 | ||||||||||||||||
| Revenues | $ | 80,477 | $ | 44,832 | $ | 135 | $ | 125,444 | ||||||||
| Operating income (loss) | 17,805 | (2,552 | ) | (3,907 | ) | 11,346 | ||||||||||
| Depreciation and amortization | 5,858 | 4,241 | 92 | 10,191 | ||||||||||||
| 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/20170427005282/en/
Source: The
The Marcus Corporation
Douglas A. Neis
(414) 905-1100