Marcus Theatres® reports record operating results and again outperforms the industry
Third Quarter Fiscal 2015 Highlights
-
Total revenues for the third quarter of fiscal 2015 were a record
$120,153,000 , a 9.4% increase from revenues of$109,845,000 for the third quarter of fiscal 2014. -
Operating income was
$7,305,000 for the third quarter of fiscal 2015, a 29.0% increase from operating income of$5,661,000 for the third quarter of fiscal 2014. -
Net earnings (before net earnings/losses attributable to
non-controlling interests) were
$2,834,000 for the third quarter of fiscal 2015, a 938% increase from net earnings of$273,000 for the third quarter of fiscal 2014. -
Net earnings attributable to The
Marcus Corporation were$3,091,000 for the third quarter of fiscal 2015, a 24.1% decrease from net earnings attributable to TheMarcus Corporation of$4,071,000 for the third quarter of fiscal 2014. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.11 for the third quarter of fiscal 2015, a 26.7% decrease from net earnings per diluted common share attributable to TheMarcus Corporation of$0.15 for the third quarter of fiscal 2014. -
Comparisons of net earnings attributable to The
Marcus Corporation for the third quarter of fiscal 2015 were negatively impacted by the fact that results for the third quarter of fiscal 2014 benefited from an allocation of a$3.8 million pre-tax loss attributable to non-controlling interests related to a settlement with the company’s partners in theSkirvin Hilton hotel. The settlement increased third quarter fiscal 2014 net earnings attributable to TheMarcus Corporation by approximately$0.08 per diluted common share.
First Three Quarters Fiscal 2015 Highlights
-
Total revenues for the first three quarters of fiscal 2015 were
$367,983,000 , an 8.4% increase from revenues of$339,465,000 for the same period in fiscal 2014. -
Operating income was
$41,614,000 for the first three quarters of fiscal 2015, a 7.2% increase from operating income of$38,818,000 for the first three quarters of fiscal 2014. -
Net earnings (before net earnings/losses attributable to
non-controlling interests) were
$20,501,000 for the first three quarters of fiscal 2015, a 23.5% increase from net earnings of$16,601,000 for the same period in fiscal 2014. -
Net earnings attributable to The
Marcus Corporation were$20,746,000 for the first three quarters of fiscal 2015, basically flat with net earnings attributable to TheMarcus Corporation of$20,747,000 for the same period in fiscal 2014. -
Net earnings per diluted common share attributable to The
Marcus Corporation were$0.75 for the first three quarters of fiscal 2015, a 2.6% decrease from net earnings per diluted common share attributable to TheMarcus Corporation of$0.77 for the same period in fiscal 2014.
“We are pleased to report record revenues and another strong third
quarter, driven by record results for Marcus Theatres. The division
significantly outperformed the industry for the fifth consecutive
quarter. Marcus Hotels & Resorts also reported record third quarter
revenues, although operating income was reduced by the temporary impact
of construction for the conversion of our downtown
“Marcus Theatres achieved an 11.5% increase in revenues and a 17.1%
increase in operating income for the third quarter and significantly
outperformed the industry for the fifth quarter in a row. The national
box office was up 0.5% for the corresponding weeks of our third quarter,
according to
“Our multi-million dollar investments in creating the ultimate
movie-going experience, along with successful marketing and pricing
strategies, continue to generate industry-leading attendance gains and
corresponding strong results for Marcus Theatres. Our expanded food and
beverage concepts contributed to a 19.6% increase in concession revenues
for the third quarter and our
The five top-performing films for Marcus Theatres for the third quarter of fiscal 2015 were American Sniper, The Hobbit: The Battle of the Five Armies, The Hunger Games: Mockingjay – Part 1, Fifty Shades of Grey and Unbroken.
“Cinderella opened strong this past weekend. Other pictures with
good box office potential opening during our fiscal fourth quarter
include The Divergent Series: Insurgent, Get Hard, Fast & Furious 7,
Paul Blart: Mall
“We are making good progress on our plans for significant renovations and additional new amenities at a number of our theatres. We added DreamLoungerSM recliner seating to two additional theatres during the third quarter, with another location to be completed next week. We have also recently converted two auditoriums to our UltraScreen DLX® concept and added another Take FiveSM lounge and Zaffiro’s® Express to our circuit. Two more Zaffiro’s Express locations and another Take Five lounge will be added in early fiscal 2016, with additional major investments in the developmental stage,” said Rodriguez.
“A highlight of the fourth quarter will be the opening of the Palace at
Sun Prairie Cinema, our brand-new 12-screen theatre located near
“Marcus Hotels & Resorts achieved record revenues for the third quarter,
which is typically the weakest quarter for the division due to the
impact of winter weather on our predominantly Midwestern locations.
Excluding the
“While the construction had a temporary negative impact on operating
income, we look forward to the opening of our new
“Hotel occupancy rates continue to be at historic highs and we are encouraged by the improvement in group business,” said Khairallah. “We are also continuing to pursue growth opportunities through additional management contracts.”
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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 |
39 Weeks Ended |
|||||||||||||||||||
February 26, |
February 27, |
February 26, |
February 27, |
|||||||||||||||||
2015 |
2014 |
2015 |
2014 |
|||||||||||||||||
Revenues: | ||||||||||||||||||||
Theatre admissions | $ | 44,279 | $ | 40,873 | $ | 118,418 | $ | 110,955 | ||||||||||||
Rooms | 19,277 | 19,040 | 83,636 | 80,158 | ||||||||||||||||
Theatre concessions | 28,113 | 23,508 | 73,519 | 63,073 | ||||||||||||||||
Food and beverage | 15,107 | 13,730 | 51,396 | 44,806 | ||||||||||||||||
Other revenues | 13,377 | 12,694 | 41,014 | 40,473 | ||||||||||||||||
Total revenues | 120,153 | 109,845 | 367,983 | 339,465 | ||||||||||||||||
Costs and expenses: | ||||||||||||||||||||
Theatre operations | 37,614 | 35,923 | 100,430 | 96,007 | ||||||||||||||||
Rooms | 9,728 | 9,570 | 31,855 | 30,422 | ||||||||||||||||
Theatre concessions | 7,479 | 6,472 | 20,041 | 17,378 | ||||||||||||||||
Food and beverage | 13,443 | 11,823 | 41,430 | 34,860 | ||||||||||||||||
Advertising and marketing | 5,799 | 5,805 | 19,897 | 19,218 | ||||||||||||||||
Administrative | 13,954 | 11,978 | 39,301 | 35,348 | ||||||||||||||||
Depreciation and amortization | 9,808 | 8,284 | 29,042 | 25,068 | ||||||||||||||||
Rent | 2,118 | 2,139 | 6,432 | 6,379 | ||||||||||||||||
Property taxes | 3,874 | 4,142 | 11,499 | 11,316 | ||||||||||||||||
Other operating expenses | 8,715 | 8,048 | 26,126 | 24,651 | ||||||||||||||||
Impairment charge | 316 | - | 316 | - | ||||||||||||||||
Total costs and expenses | 112,848 | 104,184 | 326,369 | 300,647 | ||||||||||||||||
Operating income | 7,305 | 5,661 | 41,614 | 38,818 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Investment income (loss) | (22 | ) | 389 | 28 | 409 | |||||||||||||||
Interest expense | (2,326 | ) | (2,585 | ) | (7,118 | ) | (7,563 | ) | ||||||||||||
Loss on disposition of property, equipment and other assets | (289 | ) | (193 | ) | (790 | ) | (965 | ) | ||||||||||||
Equity losses from unconsolidated joint ventures, net | (106 | ) | (164 | ) | (120 | ) | (193 | ) | ||||||||||||
(2,743 | ) | (2,553 | ) | (8,000 | ) | (8,312 | ) | |||||||||||||
Earnings before income taxes | 4,562 | 3,108 | 33,614 | 30,506 | ||||||||||||||||
Income taxes | 1,728 | 2,835 | 13,113 | 13,905 | ||||||||||||||||
Net earnings | 2,834 | 273 | 20,501 | 16,601 | ||||||||||||||||
Net loss attributable to noncontrolling interests | (257 | ) | (3,798 | ) | (245 | ) | (4,146 | ) | ||||||||||||
Net earnings attributable to The Marcus Corporation | $ | 3,091 | $ | 4,071 | $ | 20,746 | $ | 20,747 | ||||||||||||
Net earnings per common share attributable to | ||||||||||||||||||||
The Marcus Corporation - diluted | $ | 0.11 | $ | 0.15 | $ | 0.75 | $ | 0.77 | ||||||||||||
Weighted ave. shares outstanding - diluted | 27,690 | 27,036 | 27,623 | 27,083 | ||||||||||||||||
THE MARCUS CORPORATION | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
(Unaudited) | (Audited) | |||||||
February 26, | May 29, | |||||||
2015 | 2014 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 15,664 | $ | 14,812 | ||||
Accounts and notes receivable | 10,866 | 9,472 | ||||||
Refundable income taxes | 170 | 2,958 | ||||||
Deferred income taxes | 3,241 | 3,056 | ||||||
Other current assets | 5,970 | 6,367 | ||||||
Property and equipment, net | 659,785 | 647,592 | ||||||
Other assets | 83,067 | 84,666 | ||||||
Total Assets | $ | 778,763 | $ | 768,923 | ||||
Liabilities and Shareholders' Equity: | ||||||||
Accounts payable | $ | 19,624 | $ | 30,954 | ||||
Taxes other than income taxes | 14,939 | 14,333 | ||||||
Other current liabilities | 46,658 | 44,826 | ||||||
Current portion of capital lease obligation | 5,031 | 4,871 | ||||||
Current maturities of long-term debt | 8,330 | 7,030 | ||||||
Capital lease obligation | 19,584 | 23,370 | ||||||
Long-term debt | 233,752 | 233,557 | ||||||
Deferred income taxes | 45,303 | 42,561 | ||||||
Deferred compensation and other | 40,857 | 37,442 | ||||||
Equity | 344,685 | 329,979 | ||||||
Total Liabilities and Shareholders' Equity | $ | 778,763 | $ | 768,923 | ||||
THE MARCUS CORPORATION | ||||||||||||||||||
Business Segment Information | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Hotels/ | Corporate | |||||||||||||||||
Theatres | Resorts | Items | Total | |||||||||||||||
13 Weeks Ended February 26, 2015 | ||||||||||||||||||
Revenues | $ | 75,642 | $ | 44,404 | $ | 107 | $ | 120,153 | ||||||||||
Operating income (loss) | 16,341 | (4,976 | ) | (4,060 | ) | 7,305 | ||||||||||||
Depreciation and amortization | 5,281 | 4,396 | 131 | 9,808 | ||||||||||||||
13 Weeks Ended February 27, 2014 | ||||||||||||||||||
Revenues | $ | 67,810 | $ | 41,918 | $ | 117 | $ | 109,845 | ||||||||||
Operating income (loss) | 13,959 | (4,369 | ) | (3,929 | ) | 5,661 | ||||||||||||
Depreciation and amortization | 4,145 | 4,036 | 103 | 8,284 | ||||||||||||||
39 Weeks Ended February 26, 2015 | ||||||||||||||||||
Revenues | $ | 201,304 | $ | 166,277 | $ | 402 | $ | 367,983 | ||||||||||
Operating income (loss) | 40,978 | 11,757 | (11,121 | ) | 41,614 | |||||||||||||
Depreciation and amortization | 15,016 | 13,678 | 348 | 29,042 | ||||||||||||||
39 Weeks Ended February 27, 2014 | ||||||||||||||||||
Revenues | $ | 183,694 | $ | 155,432 | $ | 339 | $ | 339,465 | ||||||||||
Operating income (loss) | 36,179 | 13,574 | (10,935 | ) | 38,818 | |||||||||||||
Depreciation and amortization | 12,278 | 12,386 | 404 | 25,068 | ||||||||||||||
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