The Marcus Corporation Reports Fourth Quarter and Full Year Fiscal 2023 Results
- None.
- None.
Insights
The Marcus Corporation's announcement of strong results for the fourth quarter and fiscal year 2023 highlights the company's successful navigation through the post-pandemic recovery phase, especially within the entertainment and hospitality sectors. The reported growth in both Marcus Theatres and Marcus Hotels & Resorts indicates a positive consumer response to the company's offerings, which is a vital sign of health in these industries that were severely impacted by COVID-19 restrictions.
From a market perspective, the resurgence of leisure travel and group events is a noteworthy trend, suggesting a broader recovery in the hospitality sector. This is particularly relevant for stakeholders as it could signal sustainable revenue streams for The Marcus Corporation going forward. The mention of 'operational excellence' suggests efficiency improvements, which are crucial for maintaining profitability amidst rising operational costs.
The fiscal results of The Marcus Corporation have direct implications for shareholders and potential investors. The strong performance in the fourth quarter is often a predictor of a healthy financial status and may influence investor confidence. It is important to consider the earnings before interest, taxes, depreciation and amortization (EBITDA) as a measure of the company's operational profitability, especially given the capital-intensive nature of the theatre and hotel industries.
Investors should also look at the company's cash flow statements and balance sheets to assess liquidity and long-term financial health. The ability to leverage the upswing in leisure and group travel could be a catalyst for future growth, but it is crucial to monitor how the company manages its capital expenditures to maintain and expand its properties in a competitive landscape.
The positive results reported by Marcus Theatres and Marcus Hotels & Resorts reflect industry-specific trends where there is a renewed interest in leisure and group travel. The strategic focus on diverse movie offerings and the strength in the leisure market are key factors that likely contributed to the company's success. Understanding consumer preferences and the competitive dynamics within the hospitality and entertainment sectors is essential for maintaining this growth trajectory.
It is also important to recognize the potential challenges of maintaining growth in a post-pandemic environment. The hospitality industry faces headwinds such as fluctuating travel demand, labor shortages and increased competition from alternative lodging options like short-term rentals. The company's ability to adapt to these challenges while continuing to offer compelling experiences will be critical for long-term success.
Marcus Theatres and Marcus Hotels & Resorts Contributed to Strong Results
“Our fiscal year 2023 results marked another year of significant growth as both Marcus Theatres and Marcus Hotels & Resorts continued to drive operational excellence at our movie theatres and our hotels and resorts,” said Gregory S. Marcus, chief executive officer of The Marcus Corporation. “Marcus Theatres’ results improved in fiscal 2023 thanks to a wide array of new movies that appealed to diverse audiences. Our hotel division had another good year, driven by continued strength in the leisure travel market and growth in group events. As we look ahead, we remain optimistic about the long-term future of our company thanks to our experienced team, diverse business model, strong operating fundamentals, opportunities for strategic growth, and compelling assets and offerings.”
Fourth Quarter Fiscal 2023 Highlights
-
Total revenues for the fourth quarter of fiscal 2023 were
$161.5 million 0.9% decrease from total revenues of$162.9 million -
Operating income was
$1.2 million $2.7 million -
Net loss was
$1.4 million $9.3 million -
Net loss per diluted common share attributable to The Marcus Corporation was
$0.05 $0.30 -
Adjusted EBITDA was
$18.2 million 10.1% increase from Adjusted EBITDA of$16.6 million
Full Year Fiscal 2023 Highlights
-
Total revenues for fiscal 2023 were
$729.6 million 7.7% increase from total revenues of$677.4 million -
Operating income was
$33.9 million 308.5% increase from operating income of$8.3 million -
Net earnings attributable to The Marcus Corporation was
$14.8 million $12.0 million -
Net earnings per diluted common share attributable to The Marcus Corporation was
$0.46 $0.39 -
Adjusted EBITDA was
$108.7 million 27.8% increase from Adjusted EBITDA of$85.1 million
For the fourth quarter of fiscal 2023, Marcus Theatres reported total revenues of
For the full year fiscal 2023, a diverse slate of films including Barbie, The Super Mario Bros. Movie, Guardians of the Galaxy Vol.3, Spider-man: Across the Spider-Verse, and Avatar: The Way of Water, drove full year revenue growth of
“We were thrilled with the quantity and quality of exciting new theatrical debuts in 2023, which drove our attendance growth for the year,” said Mark A. Gramz, president of Marcus Theatres. “The success of movies like Barbie, The Super Mario Bros. Movie, and Guardians of the Galaxy Vol. 3, along with more niche films like Oppenheimer and Sound of Freedom, is proof positive that moviegoers are hungry for diverse storytelling on the big screen.”
“As we have long said, our theatres are entertainment destinations that offer unforgettable experiences not available at home,” added Gramz. “The success of Taylor Swift: The Eras Tour concert film, along with other non-traditional programming like live events, sports and musical theater, create new opportunities to enjoy unique experiences with the clearest sound, most vivid screens, comfortable amenities, and exciting food and beverage options.”
While the quantity of new films will be negatively impacted in fiscal 2024 due to production delays caused by WGA and SAG-AFTRA strikes earlier in the year, there are many exciting film releases planned for the rest of the year. Several films have contributed to early fiscal 2024 first quarter results, including Wonka, Mean Girls, Migration, Anyone But You, The Beekeeper, and Bob Marley: One Love. While additional schedule changes may occur, new films expected to be released during the remainder of fiscal 2024 that have the potential to do well include Dune: Part Two, Kung Fu Panda 4, Ghostbusters: Frozen Empire, Godzilla x Kong: The New Empire, The Fall Guy, Kingdom of the Planet of the Apes, IF, Furiosa, Inside Out 2, A Quiet Place: Day One, Despicable Me 4, Twisters, Deadpool & Wolverine, Beetlejuice 2, Joker: Folie A Deux, Smile 2, Venom 3, Moana 2, Wicked Part One, Mufasa: The Lion King, and Sonic the Hedgehog 3, among others.
During the fourth quarter of fiscal 2023, comparable hotels revenues before cost reimbursements (which excludes the impact of the sale of The Skirvin Hilton) increased
For the full year fiscal 2023, comparable hotels revenues before cost reimbursements increased
"We are pleased with our fourth quarter and fiscal 2023 results as leisure travel remains healthy and group and business travel continue to steadily approach pre-pandemic levels,” said Michael R. Evans, president of Marcus Hotels & Resorts. “We have much to look forward to in fiscal 2024 with renovations at The Pfister Hotel and Grand Geneva Resort & Spa - two of our iconic company-owned properties - nearing completion and the Republican National Convention coming to
Group booking pace for fiscal 2024 is running ahead of comparable pace during the same period in fiscal 2023, even when excluding the favorable impact of the Republican National Convention scheduled for July 2024. Fiscal 2025 booking pace is also running well ahead of comparable pace during the same period a year ago. In addition, banquet and catering booking pace for fiscal 2024 and 2025 are ahead compared to the same period last year.
Earlier this month, Marcus Hotels & Resorts announced that its newly-formed joint venture had reached an agreement to acquire the Loews Minneapolis Hotel. Upon closing, which is expected in early March 2024, Marcus Hotels & Resorts will assume management of the hotel. The hotel will be rebranded under another major global hotel system. The terms of the agreement were not disclosed and remain subject to the satisfaction of certain standard closing conditions.
The Pfister Hotel in
Grand Geneva Resort & Spa in
Balance Sheet and Liquidity
The Marcus Corporation’s financial position remains strong with
During the fourth quarter of fiscal 2023, The Marcus Corporation entered into a credit agreement amendment to provide for a new
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 fiscal 2023, diluted weighted average shares outstanding includes 9.2 million from the dilutive effect of the convertible notes. During fiscal 2022 and the fourth quarter of fiscal 2023 and fiscal 2022, diluted weighted average shares outstanding excludes the dilutive effect of the convertible notes 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 2.8 million shares during fiscal 2023 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, Thursday, February 29, 2024, 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: investors.marcuscorp.com, or by dialing 1-404-975-4839 and entering the passcode 589400. 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 Thursday, March 7, 2024, by dialing 1-866-813-9403 and entering passcode 745084. The webcast will be archived on the company’s website until its next earnings release.
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, 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
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 or future pandemics); (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 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 MARCUS CORPORATION
Consolidated Statements of Earnings (Loss) (Unaudited) (in thousands, except per share data) |
|||||||||||||||
|
13 Weeks Ended |
|
52 Weeks Ended |
||||||||||||
|
December 28,
|
|
December 29,
|
|
December 28,
|
|
December 29,
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Theatre admissions |
$ |
48,912 |
|
|
$ |
47,557 |
|
|
$ |
229,186 |
|
|
$ |
198,485 |
|
Rooms |
|
23,659 |
|
|
|
24,480 |
|
|
|
106,618 |
|
|
|
107,699 |
|
Theatre concessions |
|
41,020 |
|
|
|
41,854 |
|
|
|
197,653 |
|
|
|
180,180 |
|
Food and beverage |
|
19,298 |
|
|
|
19,867 |
|
|
|
73,278 |
|
|
|
74,836 |
|
Other revenues |
|
20,396 |
|
|
|
20,387 |
|
|
|
85,420 |
|
|
|
82,560 |
|
|
153,285 |
|
|
|
154,145 |
|
|
|
692,155 |
|
|
|
643,760 |
|
|
Cost reimbursements |
|
8,241 |
|
|
|
8,802 |
|
|
|
37,420 |
|
|
|
33,634 |
|
Total revenues |
|
161,526 |
|
|
|
162,947 |
|
|
|
729,575 |
|
|
|
677,394 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Theatre operations |
|
50,054 |
|
|
|
51,489 |
|
|
|
230,770 |
|
|
|
212,410 |
|
Rooms |
|
9,839 |
|
|
|
11,031 |
|
|
|
41,071 |
|
|
|
41,561 |
|
Theatre concessions |
|
16,834 |
|
|
|
17,070 |
|
|
|
75,903 |
|
|
|
73,124 |
|
Food and beverage |
|
14,586 |
|
|
|
15,947 |
|
|
|
57,871 |
|
|
|
59,272 |
|
Advertising and marketing |
|
6,135 |
|
|
|
6,874 |
|
|
|
22,838 |
|
|
|
23,877 |
|
Administrative |
|
19,394 |
|
|
|
18,052 |
|
|
|
78,565 |
|
|
|
74,755 |
|
Depreciation and amortization |
|
16,273 |
|
|
|
16,638 |
|
|
|
67,301 |
|
|
|
67,073 |
|
Rent |
|
6,475 |
|
|
|
6,537 |
|
|
|
26,154 |
|
|
|
26,037 |
|
Property taxes |
|
3,919 |
|
|
|
3,319 |
|
|
|
17,871 |
|
|
|
17,955 |
|
Other operating expenses |
|
8,228 |
|
|
|
8,402 |
|
|
|
38,824 |
|
|
|
37,865 |
|
Impairment charges |
|
377 |
|
|
|
1,525 |
|
|
|
1,061 |
|
|
|
1,525 |
|
Reimbursed costs |
|
8,241 |
|
|
|
8,802 |
|
|
|
37,420 |
|
|
|
33,634 |
|
Total costs and expenses |
|
160,355 |
|
|
|
165,686 |
|
|
|
695,649 |
|
|
|
669,088 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
1,171 |
|
|
|
(2,739 |
) |
|
|
33,926 |
|
|
|
8,306 |
|
|
|
|
|
|
|
||||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Investment income (loss) |
|
1,362 |
|
|
|
717 |
|
|
|
2,426 |
|
|
|
(45 |
) |
Interest expense |
|
(3,751 |
) |
|
|
(3,456 |
) |
|
|
(12,721 |
) |
|
|
(15,299 |
) |
Other income (expense) |
|
(477 |
) |
|
|
218 |
|
|
|
(1,832 |
) |
|
|
(1,060 |
) |
Gain on sale of hotel |
|
— |
|
|
|
6,274 |
|
|
|
— |
|
|
|
6,274 |
|
Equity losses from unconsolidated joint ventures |
|
(22 |
) |
|
|
(39 |
) |
|
|
(149 |
) |
|
|
(143 |
) |
|
|
(2,888 |
) |
|
|
3,714 |
|
|
|
(12,276 |
) |
|
|
(10,273 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) before income taxes |
|
(1,717 |
) |
|
|
975 |
|
|
|
21,650 |
|
|
|
(1,967 |
) |
Income tax expense (benefit) |
|
(277 |
) |
|
|
7,426 |
|
|
|
6,856 |
|
|
|
7,137 |
|
Net earnings (loss) |
|
(1,440 |
) |
|
|
(6,451 |
) |
|
|
14,794 |
|
|
|
(9,104 |
) |
Net earnings attributable to noncontrolling interests |
|
— |
|
|
|
2,868 |
|
|
|
— |
|
|
|
2,868 |
|
Net earnings (loss) attributable to The Marcus Corporation |
$ |
(1,440 |
) |
|
$ |
(9,319 |
) |
|
$ |
14,794 |
|
|
$ |
(11,972 |
) |
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) per common share attributable to |
|
|
|
|
|
|
|
||||||||
The Marcus Corporation - diluted |
$ |
(0.05 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.46 |
|
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - diluted |
|
31,696 |
|
|
|
31,509 |
|
|
|
40,989 |
|
|
|
31,488 |
|
THE MARCUS CORPORATION
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
|||||
|
December 28,
|
|
December 29,
|
||
|
|
|
|
||
Assets: |
|
|
|
||
|
|
|
|
||
Cash and cash equivalents |
$ |
55,589 |
|
$ |
21,704 |
Restricted cash |
|
4,249 |
|
|
2,802 |
Accounts receivable |
|
19,703 |
|
|
21,455 |
Assets held for sale |
|
— |
|
|
460 |
Other current assets |
|
22,175 |
|
|
17,474 |
Property and equipment, net |
|
682,262 |
|
|
715,765 |
Operating lease right-of-use assets |
|
179,788 |
|
|
194,965 |
Other assets |
|
101,337 |
|
|
89,973 |
|
|
|
|
||
Total Assets |
$ |
1,065,103 |
|
$ |
1,064,598 |
|
|
|
|
||
Liabilities and Shareholders' Equity: |
|
|
|
||
|
|
|
|
||
Accounts payable |
$ |
37,384 |
|
$ |
32,187 |
Taxes other than income taxes |
|
18,585 |
|
|
17,948 |
Other current liabilities |
|
80,283 |
|
|
78,787 |
Current portion of finance lease obligations |
|
2,579 |
|
|
2,488 |
Current portion of operating lease obligations |
|
15,290 |
|
|
14,553 |
Current maturities of long-term debt |
|
10,303 |
|
|
10,432 |
Finance lease obligations |
|
12,753 |
|
|
15,014 |
Operating lease obligations |
|
178,582 |
|
|
195,281 |
Long-term debt |
|
159,548 |
|
|
170,005 |
Deferred income taxes |
|
32,235 |
|
|
26,567 |
Other long-term obligations |
|
46,389 |
|
|
44,415 |
Equity |
|
471,172 |
|
|
456,921 |
|
|
|
|
||
Total Liabilities and Shareholders' Equity |
$ |
1,065,103 |
|
$ |
1,064,598 |
THE MARCUS CORPORATION
Business Segment Information (Unaudited) (In thousands) |
|||||||||||||
|
Theatres |
|
Hotels/ Resorts |
|
Corporate Items |
|
Total |
||||||
13 Weeks Ended December 28, 2023 |
|
|
|
|
|
|
|
||||||
Revenues |
$ |
98,583 |
|
$ |
62,860 |
|
$ |
83 |
|
|
$ |
161,526 |
|
Operating income (loss) |
|
3,469 |
|
|
2,063 |
|
|
(4,361 |
) |
|
|
1,171 |
|
Depreciation and amortization |
|
11,315 |
|
|
4,863 |
|
|
95 |
|
|
|
16,273 |
|
Adjusted EBITDA |
|
14,667 |
|
|
7,359 |
|
|
(3,789 |
) |
|
|
18,237 |
|
|
|
|
|
|
|
|
|
||||||
13 Weeks Ended December 29, 2022 |
|
|
|
|
|
|
|
||||||
Revenues |
$ |
97,555 |
|
$ |
65,328 |
|
$ |
64 |
|
|
$ |
162,947 |
|
Operating income (loss) |
|
421 |
|
|
736 |
|
|
(3,896 |
) |
|
|
(2,739 |
) |
Depreciation and amortization |
|
11,874 |
|
|
4,676 |
|
|
88 |
|
|
|
16,638 |
|
Adjusted EBITDA |
|
13,964 |
|
|
5,622 |
|
|
(3,028 |
) |
|
|
16,558 |
|
|
|
|
|
|
|
|
|
||||||
52 Weeks Ended December 28, 2023 |
|
|
|
|
|
|
|
||||||
Revenues |
$ |
458,394 |
|
$ |
270,835 |
|
$ |
346 |
|
|
$ |
729,575 |
|
Operating income (loss) |
|
36,176 |
|
|
17,513 |
|
|
(19,763 |
) |
|
|
33,926 |
|
Depreciation and amortization |
|
48,378 |
|
|
18,569 |
|
|
354 |
|
|
|
67,301 |
|
Adjusted EBITDA |
|
86,416 |
|
|
37,731 |
|
|
(15,424 |
) |
|
|
108,723 |
|
|
|
|
|
|
|
|
|
||||||
52 Weeks Ended December 29, 2022 |
|
|
|
|
|
|
|
||||||
Revenues |
$ |
407,741 |
|
$ |
269,286 |
|
$ |
367 |
|
|
$ |
677,394 |
|
Operating income (loss) |
|
8,108 |
|
|
18,699 |
|
|
(18,501 |
) |
|
|
8,306 |
|
Depreciation and amortization |
|
47,560 |
|
|
19,160 |
|
|
353 |
|
|
|
67,073 |
|
Adjusted EBITDA |
|
59,950 |
|
|
38,904 |
|
|
(13,780 |
) |
|
|
85,074 |
|
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 |
|
52 Weeks Ended |
||||||||||||
Consolidated |
|
December 28,
|
|
December 29,
|
|
December 28,
|
|
December 29,
|
||||||||
Net cash flow provided by (used in) operating activities |
|
$ |
33,987 |
|
|
$ |
32,847 |
|
|
$ |
102,629 |
|
|
$ |
93,209 |
|
Net cash flow provided by (used in) investing activities |
|
|
(9,867 |
) |
|
|
22,517 |
|
|
|
(36,749 |
) |
|
|
(346 |
) |
Net cash flow provided by (used in) financing activities |
|
|
(4,364 |
) |
|
|
(47,653 |
) |
|
|
(30,548 |
) |
|
|
(92,411 |
) |
Capital expenditures |
|
|
(12,938 |
) |
|
|
(9,360 |
) |
|
|
(38,774 |
) |
|
|
(36,843 |
) |
THE MARCUS CORPORATION
Reconciliation of Net earnings (loss) to Adjusted EBITDA (Unaudited) (In thousands) |
|||||||||||||||
|
13 Weeks Ended |
|
52 Weeks Ended |
||||||||||||
|
December 28,
|
|
December 29,
|
|
December 28,
|
|
December 29,
|
||||||||
Net earnings (loss) |
$ |
(1,440 |
) |
|
$ |
(9,319 |
) |
|
$ |
14,794 |
|
|
$ |
(11,972 |
) |
Add (deduct): |
|
|
|
|
|
|
|
||||||||
Investment (income) loss |
|
(1,362 |
) |
|
|
(717 |
) |
|
|
(2,426 |
) |
|
|
45 |
|
Interest expense |
|
3,751 |
|
|
|
3,456 |
|
|
|
12,721 |
|
|
|
15,299 |
|
Other expense (income) |
|
477 |
|
|
|
586 |
|
|
|
1,832 |
|
|
|
2,131 |
|
(Gain) loss on disposition of property, equipment and other assets |
|
(978 |
) |
|
|
(804 |
) |
|
|
41 |
|
|
|
(1,071 |
) |
Gain on sale of hotel |
|
— |
|
|
|
(6,274 |
) |
|
|
— |
|
|
|
(6,274 |
) |
Equity losses from unconsolidated joint ventures |
|
22 |
|
|
|
39 |
|
|
|
149 |
|
|
|
143 |
|
Net loss attributable to noncontrolling interests |
|
— |
|
|
|
2,868 |
|
|
|
— |
|
|
|
2,868 |
|
Income tax expense (benefit) |
|
(277 |
) |
|
|
7,426 |
|
|
|
6,856 |
|
|
|
7,137 |
|
Depreciation and amortization |
|
16,273 |
|
|
|
16,638 |
|
|
|
67,301 |
|
|
|
67,073 |
|
Share-based compensation (a) |
|
1,394 |
|
|
|
1,134 |
|
|
|
6,394 |
|
|
|
8,170 |
|
Impairment charges (b) |
|
377 |
|
|
|
1,525 |
|
|
|
1,061 |
|
|
|
1,525 |
|
Adjusted EBITDA |
$ |
18,237 |
|
|
$ |
16,558 |
|
|
$ |
108,723 |
|
|
$ |
85,074 |
|
Reconciliation of Operating income (loss) to Adjusted EBITDA by Reportable Segment (Unaudited) (In thousands) |
||||||||||||||||||||||||||||
|
13 Weeks Ended December 28, 2023 |
|
52 Weeks Ended December 28, 2023 |
|||||||||||||||||||||||||
|
Theatres |
|
Hotels & Resorts |
|
Corp. Items |
|
Total |
|
Theatres |
|
Hotels & Resorts |
|
Corp. Items |
|
Total |
|||||||||||||
Operating income (loss) |
$ |
3,469 |
|
|
$ |
2,063 |
|
$ |
(4,361 |
) |
|
$ |
1,171 |
|
|
$ |
36,176 |
|
|
$ |
17,513 |
|
$ |
(19,763 |
) |
|
$ |
33,926 |
Depreciation and amortization |
|
11,315 |
|
|
|
4,863 |
|
|
95 |
|
|
|
16,273 |
|
|
|
48,378 |
|
|
|
18,569 |
|
|
354 |
|
|
|
67,301 |
Loss (gain) on disposition of property, equipment and other assets |
|
(636 |
) |
|
|
188 |
|
|
(530 |
) |
|
|
(978 |
) |
|
|
(99 |
) |
|
|
670 |
|
|
(530 |
) |
|
|
41 |
Share-based compensation (a) |
|
142 |
|
|
|
245 |
|
|
1,007 |
|
|
|
1,394 |
|
|
|
900 |
|
|
|
979 |
|
|
4,515 |
|
|
|
6,394 |
Impairment charges (b) |
|
377 |
|
|
|
— |
|
|
— |
|
|
|
377 |
|
|
|
1,061 |
|
|
|
— |
|
|
— |
|
|
|
1,061 |
Adjusted EBITDA |
$ |
14,667 |
|
|
$ |
7,359 |
|
$ |
(3,789 |
) |
|
$ |
18,237 |
|
|
$ |
86,416 |
|
|
$ |
37,731 |
|
$ |
(15,424 |
) |
|
$ |
108,723 |
|
13 Weeks Ended December 29, 2022 |
|
52 Weeks Ended December 29, 2022 |
|||||||||||||||||||||||
|
Theatres |
|
Hotels & Resorts |
|
Corp. Items |
|
Total |
|
Theatres |
|
Hotels & Resorts |
|
Corp. Items |
|
Total |
|||||||||||
Operating income (loss) |
$ |
421 |
|
$ |
736 |
|
$ |
(3,896 |
) |
|
$ |
(2,739 |
) |
|
$ |
8,108 |
|
$ |
18,699 |
|
$ |
(18,501 |
) |
|
$ |
8,306 |
Depreciation and amortization |
|
11,874 |
|
|
4,676 |
|
|
88 |
|
|
|
16,638 |
|
|
|
47,560 |
|
|
19,160 |
|
|
353 |
|
|
|
67,073 |
Share-based compensation (a) |
|
144 |
|
|
210 |
|
|
780 |
|
|
|
1,134 |
|
|
|
2,757 |
|
|
1,045 |
|
|
4,368 |
|
|
|
8,170 |
Impairment charges (b) |
|
1,525 |
|
|
— |
|
|
— |
|
|
|
1,525 |
|
|
|
1,525 |
|
|
— |
|
|
— |
|
|
|
1,525 |
Adjusted EBITDA |
$ |
13,964 |
|
$ |
5,622 |
|
$ |
(3,028 |
) |
|
$ |
16,558 |
|
|
$ |
59,950 |
|
$ |
38,904 |
|
$ |
(13,780 |
) |
|
$ |
85,074 |
(a) |
|
Non-cash expense related to share-based compensation programs. |
(b) |
|
Non-cash impairment charges related to two permanently closed theatres and surplus theatre real estate in fiscal 2023, and two operating theatres in fiscal 2022. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228559554/en/
Chad
(414) 905-1100
investors@marcuscorp.com
Source: The Marcus Corporation
FAQ
What were the results reported by The Marcus Corporation (MCS) for Q4 and fiscal year 2023?
What factors contributed to the improved results of Marcus Theatres in fiscal year 2023?
What drove the good year for Marcus Hotels & Resorts in fiscal year 2023?
Who is the chief executive officer of The Marcus Corporation (MCS)?
