Marcus Theatres® reports record operating results and again outperforms the industry
Second Quarter Fiscal 2015 Highlights
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Total revenues for the second quarter of fiscal 2015 were a record
$116,061,000 , a 15.4% increase from revenues of$100,588,000 for the second quarter of fiscal 2014. -
Operating income was
$11,620,000 for the second quarter of fiscal 2015, a 31.9% increase from operating income of$8,810,000 for the second quarter of fiscal 2014. -
Net earnings attributable to The
Marcus Corporation were$5,223,000 for the second quarter of fiscal 2015, a 61.0% increase from net earnings attributable to TheMarcus Corporation of$3,245,000 for the second quarter of fiscal 2014. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.19 for the second quarter of fiscal 2015, a 58.3% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.12 for the second quarter of fiscal 2014.
First Half Fiscal 2015 Highlights
-
Total revenues for the first half of fiscal 2015 were
$247,830,000 , a 7.9% increase from revenues of$229,620,000 for the same period in fiscal 2014. -
Operating income was
$34,309,000 for the first half of fiscal 2015, a 3.5% increase from operating income of$33,157,000 for the first half of the prior year.
-
Net earnings attributable to The
Marcus Corporation were$17,655,000 for the first half of fiscal 2015, a 5.9% increase from net earnings attributable to TheMarcus Corporation of$16,676,000 for the first half of fiscal 2014. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.64 for the first half of fiscal 2015, a 3.2% increase from net earnings per diluted common share attributable to TheMarcus Corporation of$0.62 for the same period in fiscal 2014.
“This was a strong quarter for The
“Marcus Theatres achieved a 20.3% increase in revenues and an 84.3%
increase in operating income, and significantly outperformed the
industry for the fourth consecutive quarter. The national box office was
up 0.4% for the corresponding weeks of our second quarter, according to
“As our outperformance numbers indicate, our major investments and
innovative marketing and pricing strategies are generating positive
results. Investments in new amenities including DreamLoungerSM
oversized recliner seating and UltraScreen DLX®
premium large-screen auditoriums are attracting more movie-goers, while
our expanded food and beverage concepts contributed to a 29.0% increase
in concession revenues for the quarter. Our popular
The top five performing films for Marcus Theatres for the second quarter
were The Hunger Games: Mockingjay – Part 1, Gone Girl, Big Hero 6,
The Maze Runner and Interstellar. “The holiday season kicked
into full gear this week, with Tuesday’s opening of The Hobbit: The
Battle of the Five Armies. Two more films, Annie and Night
at the Museum: Secret of the Tomb, open tomorrow. Several more
potential hits open
“Building on the success of our multi-million dollar investment in our circuit earlier this year, we recently announced significant renovations and new amenities at seven additional locations. When we complete the addition of DreamLounger recliner seating at three more theatres, we will offer this amenity at 25% of our screens, one of the highest percentages in the industry. We also plan to convert two of our existing UltraScreen® auditoriums and an additional auditorium to our UltraScreen DLX concept. Our investments also include adding two new Take Five Lounges and three Zaffiro’s® Express outlets,” said Rodriguez. “We believe it is important to create a comprehensive movie-going experience that attracts audiences by providing options, comfort and convenience.”
“Marcus Hotels & Resorts achieved record revenues for the second
quarter. Revenue per available room (RevPAR) for comparable
company-owned hotels was up 4.3% for the second quarter and 5.5% for the
first half. While we saw a nice improvement at many of our hotels, our
overall operating income was impacted by several factors, including
increased depreciation and the start of construction on the conversion
of our
“Founded by
“During the second quarter, we assumed management and acquired a 10%
minority interest in
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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 Ended |
26 Weeks Ended |
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November 27, |
November 28, |
November 27, |
November 28, |
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2014 |
2013 |
2014 |
2013 |
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Revenues: | |||||||||||||||||||||
Theatre admissions | $ | 32,794 | $ | 27,973 | $ | 74,139 | $ | 70,082 | |||||||||||||
Rooms | 29,678 | 28,548 | 64,359 | 61,118 | |||||||||||||||||
Theatre concessions | 20,484 | 15,876 | 45,406 | 39,565 | |||||||||||||||||
Food and beverage | 20,134 | 15,546 | 36,289 | 31,076 | |||||||||||||||||
Other revenues | 12,971 | 12,645 | 27,637 | 27,779 | |||||||||||||||||
Total revenues | 116,061 | 100,588 | 247,830 | 229,620 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||
Theatre operations | 27,953 | 25,461 | 62,816 | 60,084 | |||||||||||||||||
Rooms | 10,725 | 10,160 | 22,127 | 20,852 | |||||||||||||||||
Theatre concessions | 5,841 | 4,768 | 12,562 | 10,906 | |||||||||||||||||
Food and beverage | 15,924 | 11,491 | 27,987 | 23,037 | |||||||||||||||||
Advertising and marketing | 6,710 | 6,529 | 14,098 | 13,413 | |||||||||||||||||
Administrative | 12,955 | 11,126 | 25,347 | 23,370 | |||||||||||||||||
Depreciation and amortization | 10,156 | 8,457 | 19,234 | 16,784 | |||||||||||||||||
Rent | 2,160 | 2,115 | 4,314 | 4,240 | |||||||||||||||||
Property taxes | 3,719 | 3,752 | 7,625 | 7,174 | |||||||||||||||||
Other operating expenses | 8,298 | 7,919 | 17,411 | 16,603 | |||||||||||||||||
Total costs and expenses | 104,441 | 91,778 | 213,521 | 196,463 | |||||||||||||||||
Operating income | 11,620 | 8,810 | 34,309 | 33,157 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Investment income | 25 | 17 | 50 | 20 | |||||||||||||||||
Interest expense | (2,388 | ) | (2,584 | ) | (4,792 | ) | (4,978 | ) | |||||||||||||
Loss on disposition of property, equipment and other assets | (495 | ) | (789 | ) | (501 | ) | (772 | ) | |||||||||||||
Equity earnings (losses) from unconsolidated joint ventures, net | 27 | 54 | (14 | ) | (29 | ) | |||||||||||||||
(2,831 | ) | (3,302 | ) | (5,257 | ) | (5,759 | ) | ||||||||||||||
Earnings before income taxes | 8,789 | 5,508 | 29,052 | 27,398 | |||||||||||||||||
Income taxes | 3,398 | 2,026 | 11,385 | 11,070 | |||||||||||||||||
Net earnings | 5,391 | 3,482 | 17,667 | 16,328 | |||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | 168 | 237 | 12 | (348 | ) | ||||||||||||||||
Net earnings attributable to The Marcus Corporation | $ | 5,223 | $ | 3,245 | $ | 17,655 | $ | 16,676 | |||||||||||||
Net earnings per common share attributable to | |||||||||||||||||||||
The Marcus Corporation - diluted | $ | 0.19 | $ | 0.12 | $ | 0.64 | $ | 0.62 | |||||||||||||
THE MARCUS CORPORATION | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(In thousands) | |||||||||
(Unaudited) | (Audited) | ||||||||
November 27, | May 29, | ||||||||
2014 | 2014 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 18,165 | $ | 14,812 | |||||
Accounts and notes receivable | 14,608 | 9,472 | |||||||
Refundable income taxes | - | 2,958 | |||||||
Deferred income taxes | 3,180 | 3,056 | |||||||
Other current assets | 6,052 | 6,367 | |||||||
Property and equipment, net | 653,280 | 651,580 | |||||||
Other assets | 83,574 | 80,678 | |||||||
Total Assets | $ | 778,859 | $ | 768,923 | |||||
Liabilities and Shareholders' Equity: | |||||||||
Accounts payable | $ | 23,320 | $ | 30,954 | |||||
Income taxes | 2,687 | - | |||||||
Taxes other than income taxes | 15,953 | 14,333 | |||||||
Other current liabilities | 40,691 | 44,826 | |||||||
Current portion of capital lease obligation | 4,999 | 4,871 | |||||||
Current maturities of long-term debt | 8,605 | 7,030 | |||||||
Capital lease obligation | 20,861 | 23,370 | |||||||
Long-term debt | 234,740 | 233,557 | |||||||
Deferred income taxes | 42,148 | 42,561 | |||||||
Deferred compensation and other | 41,217 | 37,442 | |||||||
Equity | 343,638 | 329,979 | |||||||
Total Liabilities and Shareholders' Equity | $ | 778,859 | $ | 768,923 | |||||
THE MARCUS CORPORATION | |||||||||||||||
Business Segment Information | |||||||||||||||
(Unaudited) | |||||||||||||||
(In thousands) | |||||||||||||||
Hotels/ | Corporate | ||||||||||||||
Theatres | Resorts | Items | Total | ||||||||||||
13 Weeks Ended November 27, 2014 | |||||||||||||||
Revenues | $ | 56,275 | $ | 59,626 | $ | 160 | $ | 116,061 | |||||||
Operating income (loss) | 9,783 | 5,729 | (3,892 | ) | 11,620 | ||||||||||
Depreciation and amortization | 5,005 | 5,035 | 116 | 10,156 | |||||||||||
13 Weeks Ended November 28, 2013 | |||||||||||||||
Revenues | $ | 46,772 | $ | 53,704 | $ | 112 | $ | 100,588 | |||||||
Operating income (loss) | 5,307 | 7,045 | (3,542 | ) | 8,810 | ||||||||||
Depreciation and amortization | 4,147 | 4,169 | 141 | 8,457 | |||||||||||
26 Weeks Ended November 27, 2014 | |||||||||||||||
Revenues | $ | 125,662 | $ | 121,873 | $ | 295 | $ | 247,830 | |||||||
Operating income (loss) | 24,637 | 16,733 | (7,061 | ) | 34,309 | ||||||||||
Depreciation and amortization | 9,735 | 9,282 | 217 | 19,234 | |||||||||||
26 Weeks Ended November 28, 2013 | |||||||||||||||
Revenues | $ | 115,884 | $ | 113,514 | $ | 222 | $ | 229,620 | |||||||
Operating income (loss) | 22,220 | 17,943 | (7,006 | ) | 33,157 | ||||||||||
Depreciation and amortization | 8,133 | 8,350 | 301 | 16,784 | |||||||||||
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. | |||||||||||||||
Source: The
The Marcus Corporation
Douglas A. Neis, (414) 905-1100