MCS 8-K
Marcus Corp (MCS)
8-K
2023-08-02
For: 2023-08-02
View Original
Added on
April 09, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
| Date of Report | |||||||||||
| (Date of earliest event reported): | |||||||||||
(Exact name of registrant as
specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(414 ) 905-1000
(Registrant’s telephone number, including area code)
| Not Applicable | ||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17-CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17-CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02.Results of Operations and Financial Condition.
On August 2, 2023, The Marcus Corporation issued a press release announcing its financial results for its second quarter ended June 29, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01.Financial Statements and Exhibits.
(a)Not applicable.
(b)Not applicable.
(c)Not applicable.
(d)Exhibits. The following exhibit is being furnished herewith:
Exhibit Number | |||||
| 99.1 | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE MARCUS CORPORATION | ||||||||
| Date: August 2, 2023 | By: | /s/ Chad M. Paris | ||||||
| Chad M. Paris | ||||||||
| Chief Financial Officer and Treasurer | ||||||||
Exhibit 99.1
THE MARCUS CORPORATION REPORTS SECOND QUARTER FISCAL 2023 RESULTS
Marcus Theatres and Marcus Hotels & Resorts Both Contribute to Strong Operating and Financial Results
Milwaukee, August 2, 2023 … The Marcus Corporation (NYSE: MCS) today reported results for the second quarter fiscal 2023 ended June 29, 2023.
“Thanks to continued strong customer demand and operational excellence in both businesses, The Marcus Corporation reported increased revenue, operating income, net earnings and Adjusted EBITDA for the second quarter of fiscal 2023,” said Gregory S. Marcus, chairman, president and chief executive officer of The Marcus Corporation. “A growing wide-release film slate brought new franchises to theatrical, including The Super Mario Bros. Movie, a surprise blockbuster that drew diverse audiences to the big screen experience. Hotels continued to see healthy demand with strength in group travel during the quarter. As we look ahead to the second half of fiscal 2023, we are off to a very strong start with huge crowds flocking to Marcus Theatres for a great slate of summer blockbuster films, and strong seasonal demand at Marcus Hotels & Resorts.”
Second Quarter Fiscal 2023 Highlights
•Total revenues for the second quarter of fiscal 2023 were $207.0 million, a 4.3% increase from total revenues of $198.6 million for the second quarter of fiscal 2022.
•Operating income was $20.8 million for the second quarter of fiscal 2023, a 10.1% increase from operating income of $18.9 million for the prior year quarter.
•Net earnings was $13.5 million for the second quarter of fiscal 2023, a 50.3% increase from net earnings of $9.0 million for the same period in fiscal 2022.
•Net earnings per diluted common share was $0.35 for the second quarter of fiscal 2023, a 45.8% increase from net earnings per diluted common share of $0.24 for the second quarter of fiscal 2022.
•Adjusted EBITDA was $38.7 million for the second quarter of fiscal 2023, a 3.7% increase from Adjusted EBITDA of $37.3 million for the prior year quarter.
First Half Fiscal 2023 Highlights
•Total revenues for the first half of fiscal 2023 were $359.3 million, an 8.6% increase from total revenues of $330.8 million for the first half of fiscal 2022.
•Operating income was $11.8 million for the first half of fiscal 2023, a 464.0% increase from operating income of $2.1 million for the first half of fiscal 2022.
•Net earnings was $4.0 million for the first half of fiscal 2023, compared to net loss of $5.9 million for the same period in fiscal 2022.
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•Net earnings per diluted common share was $0.13 for the first half of fiscal 2023, compared to net loss per diluted common share of $0.19 for the first half of fiscal 2022.
•Adjusted EBITDA was $48.2 million for the first half of fiscal 2023, an 18.5% increase from Adjusted EBITDA of $40.7 million for the first half of fiscal 2022.
Marcus Theatres®
During the second quarter of fiscal 2023, Marcus Theatres’ total revenue of $136.9 million increased 5.7% and comparable same store admission revenue increased 9.7% compared to the second quarter of fiscal 2022. Operating income of $19.8 million increased 20.7% and Adjusted EBITDA of $31.3 million increased 8.7% compared to the second quarter of fiscal 2022.
Strong per capita revenue growth was driven by a 14.2% increase in average ticket price and a 7.3% increase in average concession revenues per person during the second quarter of fiscal 2023 compared to the prior year quarter. Both average ticket price and average concession revenue per person benefited from the new Value Tuesday promotion, which took full effect in the second quarter of fiscal 2023. The new Value Tuesday promotion features $6 admission for members of the free Magical Movie Rewards (MMR) loyalty program and $7 admission for non-MMR members. The new Value Tuesday promotion features other changes including a new 20% discount on all concessions, food and non-alcoholic beverages for MMR members, which helped positively impact concession revenue. Marcus Theatres currently has 5.5 million members in its MMR loyalty program.
“While blockbusters make headlines and remain an important part of our industry, the increase in the number of quality mid-sized wide-release films across a variety of genres created more reasons for moviegoers of all ages and demographics to keep returning to Marcus Theatres,” said Mark A. Gramz, president of Marcus Theatres. “Despite a difficult comparison to the same quarter in 2022, which included not only Top Gun: Maverick but other successful blockbusters, we are very pleased by the increase in the number of new wide-release films that performed well during the quarter, including the huge blockbuster hit The Super Mario Bros. Movie.”
“We are off to a great start to the second half of the year thanks to the global phenomenon known as ‘Barbenheimer,’ with Barbie and Oppenheimer contributing to the fourth highest box office weekend of all time,” added Gramz. “Add in the early third quarter performance of Indiana Jones & The Dial of Destiny and Mission: Impossible – Dead Reckoning Part One, along with surprise hits like the Sound of Freedom, moviegoers continue to reaffirm that the movie theatre – with big screens, incredible sound, comfortable seating, and compelling food and beverage options – remains an appealing part of their out-of-home experiences.”
Marcus Theatres’ top five highest-performing films in the second quarter of fiscal 2023 were The Super Mario Bros. Movie, Guardians of the Galaxy Vol. 3, Spider-Man Across the Spider-Verse, The Little Mermaid and Fast X. While schedule changes may occur, new films scheduled to be released during the remainder of 2023 that have the potential to perform very well include: Gran Turismo, Teenage Mutant Ninja Turtles: Mutant Mayhem, Blue Beetle, Strays, The Meg 2: The Trench, The Equalizer 3, The Nun II, The Expendables 4, Paw Patrol: The Mighty Movie, Killers of the Flower Moon, Dune: Part Two, Trolls Band Together, Hunger Games: The Ballad of Songbirds and Snakes, Wish, Napoleon, Wonka, The Color Purple, and Aquaman and the Lost Kingdom.
Marcus® Hotels & Resorts
Marcus Hotels & Resorts reported total revenue before cost reimbursements of $60.4 million during the second quarter of fiscal 2023, an increase of 7.2% compared to the second quarter of 2022 (excluding the impact from the sale of The Skirvin Hilton in the fourth quarter of fiscal 2022). During the second quarter of fiscal 2023, Marcus Hotels & Resorts reported increased revenue per available room (RevPAR) at all company-owned properties compared to the second quarter of fiscal 2022, resulting in the division outperforming the industry in the second quarter of fiscal 2023 by approximately 4.3 percentage points.
“Our peak summer travel season is off to a great start,” said Michael R. Evans, president of Marcus Hotels & Resorts. “Group demand continues to grow, resulting in improving weekday and weekend demand and positive booking trends for group events. Leisure demand remains seasonally healthy, while normalizing after a very strong 2022.”
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Group demand continued to improve during the second quarter of fiscal 2023 with group booking pace running ahead of comparable pace at this time last year. Banquet and catering revenue pace for fiscal 2023 and 2024 was also ahead of comparable pace at this same time in fiscal 2022.
Last week, The Pfister Hotel in downtown Milwaukee announced that it is undergoing an extensive, state-of-the-art, multi-phase renovation. The renovation, which began in June and is expected to cost approximately $20 million, will feature a full revitalization of the ballrooms and meeting spaces, followed by all-new guest rooms in its historic tower and conclude with enhancements to the hotel’s iconic lobby, lobby bar and Café at the Pfister. All phases of this renovation are expected to be completed by spring 2024.
During the second quarter of fiscal 2023, Grand Geneva Resort & Spa announced that it completed a renovation of its 358 redesigned guest rooms and suites. This multi-phased investment also included updates to the resort’s lobby and lobby lounge, the addition of a 60-seat outdoor dining venue, and renovations to all guest bathrooms. The property is also planning a series of renovations to its meeting and event spaces.
Balance Sheet and Liquidity
The Marcus Corporation’s financial position remains strong with $265.2 million in cash and revolving credit availability at the end of the second quarter of fiscal 2023.
Diluted weighted average shares outstanding and diluted net earnings per common share include the dilutive effect of conversion of the Company’s convertible notes to the extent conversion is dilutive in each period. During the second quarter of fiscal 2023 and 2022, diluted weighted average shares outstanding includes 9.2 million and 9.1 million shares, respectively, from the dilutive effect of the convertible notes, which were excluded from diluted weighted average shares outstanding in the other periods presented as the convertible notes were antidilutive. Diluted weighted average shares outstanding does not include the benefit from the capped call transactions the Company entered into in connection with the issuance of the convertible notes, which mitigate the dilutive effect of the convertible notes by approximately 3.0 million and 2.6 million shares during the second quarter of fiscal 2023 and 2022, respectively, when settled at the maturity date of the convertible notes. Upon conversion, the convertible notes may be settled, at the Company’s election, in cash, shares of common stock or a combination thereof. To the extent the Company settles the convertible notes in cash, there will be no incremental dilution from the settlement of the convertible notes.
Conference Call and Webcast
The Marcus Corporation management will hold a conference call today, Wednesday, August 2, 2023, at 10:00 a.m. Central/11:00 a.m. Eastern time. Interested parties may listen to the call live on the internet through the investor relations section of the company's website: www.marcuscorp.com, or by dialing 1-404-975-4839 and entering the passcode 406379. Listeners should dial in to the call at least 5-10 minutes prior to the start of the call or should go to the website at least 15 minutes prior to the call to download and install any necessary audio software.
A telephone replay of the conference call will be available through Wednesday, August 9, 2023, by dialing 1-866-813-9403 and entering passcode 767206. The webcast will be archived on the company’s website until its next earnings release
For additional information, contact:
Chad Paris
(414) 905-1036
Non-GAAP Financial Measure
Adjusted EBITDA has been presented in this press release as a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. The company defines Adjusted EBITDA as net earnings (loss) attributable to The Marcus Corporation before investment income or loss, interest expense,
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other expense, gain or loss on disposition of property, equipment and other assets, equity earnings or losses from unconsolidated joint ventures, net earnings or losses attributable to noncontrolling interests, income taxes, depreciation and amortization and non-cash share-based compensation expense, adjusted to eliminate the impact of certain items that the company does not consider indicative of its core operating performance. A reconciliation of this measure to the equivalent measure under GAAP, along with reconciliations of this measure for each of our operating segments, are set forth in the attached table.
Adjusted EBITDA is a key measure used by management and the company’s board of directors to assess the company’s financial performance and enterprise value. The company believes that Adjusted EBITDA is a useful measure, as it eliminates certain expenses and gains that are not indicative of the company’s core operating performance and facilitates a comparison of the company’s core operating performance on a consistent basis from period to period. The company also uses Adjusted EBITDA as a basis to determine certain annual cash bonuses and long-term incentive awards, to supplement GAAP measures of performance to evaluate the effectiveness of its business strategies, to make budgeting decisions, and to compare its performance against that of other peer companies using similar measures. Adjusted EBITDA is also used by analysts, investors and other interested parties as a performance measure to evaluate industry competitors.
Adjusted EBITDA is a non-GAAP measure of the company’s financial performance and should not be considered as an alternative to net earnings (loss) as a measure of financial performance, or any other performance measure derived in accordance with GAAP and it should not be construed as an inference that the company’s future results will be unaffected by unusual or non-recurring items. Additionally, Adjusted EBITDA is not intended to be a measure of liquidity or free cash flow for management’s discretionary use. In addition, this non-GAAP measure excludes certain non-recurring and other charges and has its limitations as an analytical tool. You should not consider Adjusted EBITDA in isolation or as a substitute for analysis of the company’s results as reported under GAAP. In evaluating Adjusted EBITDA, you should be aware that in the future the company will incur expenses that are the same as or similar to some of the items eliminated in the adjustments made to determine Adjusted EBITDA, such as acquisition expenses, preopening expenses, accelerated depreciation, impairment charges and other adjustments. The company’s presentation of Adjusted EBITDA should not be construed to imply that the company’s future results will be unaffected by any such adjustments. Definitions and calculations of Adjusted EBITDA differ among companies in our industries, and therefore Adjusted EBITDA disclosed by the company may not be comparable to the measures disclosed by other companies.
About The Marcus Corporation
Headquartered in Milwaukee, The Marcus Corporation is a leader in the lodging and entertainment industries, with significant company-owned real estate assets. The Marcus Corporation’s theatre division, Marcus Theatres®, is the fourth largest theatre circuit in the U.S. and currently owns or operates 1,027 screens at 82 locations in 17 states under the Marcus Theatres, Movie Tavern® by Marcus and BistroPlex® brands. The company’s lodging division, Marcus® Hotels & Resorts, owns and/or manages 16 hotels, resorts and other properties in eight states. For more information, please visit the company’s website at www.marcuscorp.com.
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 adverse effects the COVID-19 pandemic, or future pandemics, may have on our theatre and hotels and resorts businesses, results of operations, liquidity, cash flows, financial condition, access to credit markets and ability to service our existing and future indebtedness; (2) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division (including disruptions in the production of films due to events such as a strike by actors, writers or directors); (3) the effects of theatre 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; (4) the effects of adverse economic conditions in our markets; (5) the effects of adverse economic conditions on our ability to obtain financing on reasonable and acceptable terms, if at all; (6) the effects on our occupancy and room rates caused
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by the relative industry supply of available rooms at comparable lodging facilities in our markets; (7) the effects of competitive conditions in our markets; (8) our ability to achieve expected benefits and performance from our strategic initiatives and acquisitions; (9) 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 business; (10) the effects of changes in the availability of and cost of labor and other supplies essential to the operation of our business; (11) the effects of weather conditions, particularly during the winter in the Midwest and in our other markets; (12) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; (13) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States, other incidents of violence in public venues such as hotels and movie theatres or epidemics; and (14) a disruption in our business and reputational and economic risks associated with civil securities claims brought by shareholders. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Our forward-looking statements are based upon our assumptions, which are based upon currently available information. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
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THE MARCUS CORPORATION
Consolidated Statements of Earnings (Loss)
(Unaudited)
(in thousands, except per share data)
| 13 Weeks Ended | 26 Weeks Ended | ||||||||||||||||||||||
| June 29, 2023 | June 30, 2022 | June 29, 2023 | June 30, 2022 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Theatre admissions | $ | 68,987 | $ | 63,087 | $ | 116,622 | $ | 101,504 | |||||||||||||||
| Rooms | 28,646 | 28,865 | 46,503 | 46,295 | |||||||||||||||||||
| Theatre concessions | 59,707 | 58,147 | 102,082 | 93,611 | |||||||||||||||||||
| Food and beverage | 18,573 | 19,014 | 33,766 | 33,525 | |||||||||||||||||||
| Other revenues | 21,428 | 21,192 | 41,116 | 39,999 | |||||||||||||||||||
| 197,341 | 190,305 | 340,089 | 314,934 | ||||||||||||||||||||
| Cost reimbursements | 9,666 | 8,250 | 19,194 | 15,863 | |||||||||||||||||||
| Total revenues | 207,007 | 198,555 | 359,283 | 330,797 | |||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Theatre operations | 66,905 | 61,737 | 117,974 | 106,165 | |||||||||||||||||||
| Rooms | 10,360 | 10,471 | 19,638 | 18,674 | |||||||||||||||||||
| Theatre concessions | 22,601 | 22,993 | 38,331 | 38,186 | |||||||||||||||||||
| Food and beverage | 14,451 | 15,035 | 28,019 | 27,175 | |||||||||||||||||||
| Advertising and marketing | 5,613 | 5,978 | 10,678 | 10,459 | |||||||||||||||||||
| Administrative | 19,466 | 17,627 | 39,317 | 36,708 | |||||||||||||||||||
| Depreciation and amortization | 15,994 | 16,752 | 31,870 | 33,983 | |||||||||||||||||||
| Rent | 6,594 | 6,578 | 13,087 | 12,828 | |||||||||||||||||||
| Property taxes | 4,532 | 4,980 | 9,289 | 9,725 | |||||||||||||||||||
| Other operating expenses | 10,015 | 9,261 | 20,064 | 18,935 | |||||||||||||||||||
| Reimbursed costs | 9,666 | 8,250 | 19,194 | 15,863 | |||||||||||||||||||
| Total costs and expenses | 186,197 | 179,662 | 347,461 | 328,701 | |||||||||||||||||||
| Operating income | 20,810 | 18,893 | 11,822 | 2,096 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Investment income (loss) | 359 | (459) | 619 | (727) | |||||||||||||||||||
| Interest expense | (3,093) | (4,063) | (6,101) | (8,155) | |||||||||||||||||||
| Other income (expense) | (477) | (653) | (878) | (806) | |||||||||||||||||||
| Equity earnings (losses) from unconsolidated joint ventures | (31) | 7 | (202) | (134) | |||||||||||||||||||
| (3,242) | (5,168) | (6,562) | (9,822) | ||||||||||||||||||||
| Earnings (loss) before income taxes | 17,568 | 13,725 | 5,260 | (7,726) | |||||||||||||||||||
| Income tax expense (benefit) | 4,102 | 4,765 | 1,260 | (1,784) | |||||||||||||||||||
| Net earnings (loss) | 13,466 | 8,960 | 4,000 | (5,942) | |||||||||||||||||||
| Net earnings (loss) per common share - diluted | $ | 0.35 | $ | 0.24 | $ | 0.13 | $ | (0.19) | |||||||||||||||
| Weighted average shares outstanding - diluted | 40,935 | 40,617 | 31,674 | 31,469 | |||||||||||||||||||
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THE MARCUS CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
| June 29, 2023 | December 29, 2022 | ||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 44,580 | $ | 21,704 | |||||||
| Restricted cash | 4,274 | 2,802 | |||||||||
| Accounts receivable | 20,591 | 21,455 | |||||||||
| Assets held for sale | 558 | 460 | |||||||||
| Other current assets | 21,579 | 17,474 | |||||||||
| Property and equipment, net | 699,178 | 715,765 | |||||||||
| Operating lease right-of-use assets | 187,275 | 194,965 | |||||||||
| Other assets | 89,915 | 89,973 | |||||||||
| Total Assets | $ | 1,067,950 | $ | 1,064,598 | |||||||
| Liabilities and Shareholders' Equity: | |||||||||||
| Accounts payable | $ | 40,636 | $ | 32,187 | |||||||
| Taxes other than income taxes | 19,618 | 17,948 | |||||||||
| Other current liabilities | 76,123 | 78,787 | |||||||||
| Current portion of finance lease obligations | 2,538 | 2,488 | |||||||||
| Current portion of operating lease obligations | 14,596 | 14,553 | |||||||||
| Current maturities of long-term debt | 10,391 | 10,432 | |||||||||
| Finance lease obligations | 13,899 | 15,014 | |||||||||
| Operating lease obligations | 187,026 | 195,281 | |||||||||
| Long-term debt | 169,784 | 170,005 | |||||||||
| Deferred income taxes | 27,292 | 26,567 | |||||||||
| Other long-term obligations | 44,605 | 44,415 | |||||||||
| Equity | 461,442 | 456,921 | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,067,950 | $ | 1,064,598 | |||||||
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THE MARCUS CORPORATION
Business Segment Information
(Unaudited)
(In thousands)
| Theatres | Hotels/ Resorts | Corporate Items | Total | ||||||||||||||||||||
| 13 Weeks Ended June 29, 2023 | |||||||||||||||||||||||
| Revenues | $ | 136,850 | $ | 70,066 | $ | 91 | $ | 207,007 | |||||||||||||||
| Operating income (loss) | 19,811 | 6,105 | (5,106) | 20,810 | |||||||||||||||||||
| Depreciation and amortization | 11,317 | 4,588 | 89 | 15,994 | |||||||||||||||||||
| Adjusted EBITDA | 31,252 | 11,335 | (3,889) | 38,698 | |||||||||||||||||||
| 13 Weeks Ended June 30, 2022 | |||||||||||||||||||||||
| Revenues | $ | 129,437 | $ | 69,001 | $ | 117 | $ | 198,555 | |||||||||||||||
| Operating income (loss) | 16,430 | 6,817 | (4,354) | 18,893 | |||||||||||||||||||
| Depreciation and amortization | 11,863 | 4,801 | 88 | 16,752 | |||||||||||||||||||
| Adjusted EBITDA | 28,753 | 11,833 | (3,286) | 37,300 | |||||||||||||||||||
| 26 Weeks Ended June 29, 2023 | |||||||||||||||||||||||
| Revenues | $ | 233,226 | $ | 125,877 | $ | 180 | $ | 359,283 | |||||||||||||||
| Operating income (loss) | 21,330 | 1,073 | (10,581) | 11,822 | |||||||||||||||||||
| Depreciation and amortization | 22,805 | 8,889 | 176 | 31,870 | |||||||||||||||||||
| Adjusted EBITDA | 45,055 | 10,925 | (7,824) | 48,156 | |||||||||||||||||||
| 26 Weeks Ended June 30, 2022 | |||||||||||||||||||||||
| Revenues | $ | 208,928 | $ | 121,658 | $ | 211 | $ | 330,797 | |||||||||||||||
| Operating income (loss) | 8,410 | 3,843 | (10,157) | 2,096 | |||||||||||||||||||
| Depreciation and amortization | 24,054 | 9,751 | 178 | 33,983 | |||||||||||||||||||
| Adjusted EBITDA | 33,532 | 14,217 | (7,098) | 40,651 | |||||||||||||||||||
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.
Supplemental Data
(Unaudited)
(In thousands)
| 13 Weeks Ended | 26 Weeks Ended | |||||||||||||||||||||||||
| Consolidated | June 29, 2023 | June 30, 2022 | June 29, 2023 | June 30, 2022 | ||||||||||||||||||||||
| Net cash flow provided by (used in) operating activities | $ | 55,060 | $ | 48,757 | $ | 47,326 | $ | 55,228 | ||||||||||||||||||
| Net cash flow provided by (used in) investing activities | (7,111) | (8,372) | (16,642) | (11,475) | ||||||||||||||||||||||
| Net cash flow provided by (used in) financing activities | (11,911) | (1,220) | (6,336) | (4,389) | ||||||||||||||||||||||
| Capital expenditures | (6,975) | (9,779) | (15,896) | (16,341) | ||||||||||||||||||||||
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THE MARCUS CORPORATION
Reconciliation of Net earnings (loss) to Adjusted EBITDA
(Unaudited)
(In thousands)
| 13 Weeks Ended | 26 Weeks Ended | ||||||||||||||||||||||
| June 29, 2023 | June 30, 2022 | June 29, 2023 | June 30, 2022 | ||||||||||||||||||||
| Net earnings (loss) | $ | 13,466 | $ | 8,960 | $ | 4,000 | $ | (5,942) | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Investment (income) loss | (359) | 459 | (619) | 727 | |||||||||||||||||||
| Interest expense | 3,093 | 4,063 | 6,101 | 8,155 | |||||||||||||||||||
| Other expense (income) | 477 | 584 | 878 | 1,161 | |||||||||||||||||||
| (Gain) loss on disposition of property, equipment and other assets | 379 | 69 | 777 | (355) | |||||||||||||||||||
| Equity (earnings) losses from unconsolidated joint ventures | 31 | (7) | 202 | 134 | |||||||||||||||||||
| Income tax expense (benefit) | 4,102 | 4,765 | 1,260 | (1,784) | |||||||||||||||||||
| Depreciation and amortization | 15,994 | 16,752 | 31,870 | 33,983 | |||||||||||||||||||
| Share-based compensation (a) | 1,515 | 1,655 | 3,687 | 4,572 | |||||||||||||||||||
| Adjusted EBITDA | $ | 38,698 | $ | 37,300 | $ | 48,156 | $ | 40,651 | |||||||||||||||
Reconciliation of Operating income (loss) to Adjusted EBITDA by Reportable Segment
(Unaudited)
(In thousands)
| 13 Weeks Ended June 29, 2023 | 26 Weeks Ended June 29, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Theatres | Hotels & Resorts | Corp. Items | Total | Theatres | Hotels & Resorts | Corp. Items | Total | ||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 19,811 | $ | 6,105 | $ | (5,106) | $ | 20,810 | $ | 21,330 | $ | 1,073 | $ | (10,581) | $ | 11,822 | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 11,317 | 4,588 | 89 | 15,994 | 22,805 | 8,889 | 176 | 31,870 | |||||||||||||||||||||||||||||||||||||||
| Loss (gain) on disposition of property, equipment and other assets | (19) | 398 | — | 379 | 304 | 473 | — | 777 | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation (a) | 143 | 244 | 1,128 | 1,515 | 616 | 490 | 2,581 | 3,687 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 31,252 | $ | 11,335 | $ | (3,889) | $ | 38,698 | $ | 45,055 | $ | 10,925 | $ | (7,824) | $ | 48,156 | |||||||||||||||||||||||||||||||
| 13 Weeks Ended June 30, 2022 | 26 Weeks Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Theatres | Hotels & Resorts | Corp. Items | Total | Theatres | Hotels & Resorts | Corp. Items | Total | ||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 16,430 | $ | 6,817 | $ | (4,354) | $ | 18,893 | $ | 8,410 | $ | 3,843 | $ | (10,157) | $ | 2,096 | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 11,863 | 4,801 | 88 | 16,752 | 24,054 | 9,751 | 178 | 33,983 | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation (a) | 460 | 215 | 980 | 1,655 | 1,068 | 623 | 2,881 | 4,572 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 28,753 | $ | 11,833 | $ | (3,286) | $ | 37,300 | $ | 33,532 | $ | 14,217 | $ | (7,098) | $ | 40,651 | |||||||||||||||||||||||||||||||
(a)Non-cash expense related to share-based compensation programs.
9