The Marcus Corporation (NYSE:MCS) Q3 2022 Earnings Conference Call November 3, 2022 11:00 AM ET Company Participants Greg Marcus - President and Chief Executive Officer Chad Paris - Chief Financial Officer and Treasurer Conference Call Participants Jim Goss - Barrington Research Mike Hickey - The Benchmark Company Andrew Shapiro - Lawndale Capital Management Operator Good morning, everyone and welcome to The Marcus Corporation Third Quarter Earnings Conference Call. My name is Nadia and I will be your opera ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) For the transition period from __________ to __________ Commission File Number 1-12604 THE MARCUS CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1139844 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 100 East Wisconsin Avenue, Suite 1900 Milwaukee ,Wisconsin 53202-4125 (Address of principal executive offices) (Zip ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. COMMON STOCK OUTSTANDING AT AUGUST 1, 2022 – 24,3 ...

Financial Data and Key Metrics Changes - Consolidated revenues more than doubled year-over-year, increasing from $92 million to over $198 million in Q2 2022 [11] - Consolidated adjusted EBITDA improved from a negative $1 million to a positive $37 million [11] - Cash flow from operations was $48.8 million, an increase of over $45 million compared to the prior year [28] - The company ended the quarter with $57.7 million in cash and nearly $280 million in total cash and revolving credit available liquidity [30] Business Line Data and Key Metrics Changes Theater Division - The theater division contributed approximately 71% of the combined $40 million of adjusted EBITDA [13] - Average admission price increased by 3.3% year-over-year and 9.3% compared to fiscal 2019 [15] - Average concession food and beverage revenues per person increased by 2.9% year-over-year and 23% compared to fiscal 2019 [16][17] Hotel Division - Hotel revenues were $69 million, with adjusted EBITDA reaching a record $11.8 million for the second quarter [22] - Total revenue for the hotel division was nearly 99% of 2019 levels [23] - RevPAR for comparable owned hotels decreased by 6.3% compared to Q2 2019, outperforming the industry average decline of 9% [24] Market Data and Key Metrics Changes - Admission revenues were down 24% compared to 2019, while U.S. box office receipts decreased 26.6% during the same period [19] - The hotel division's non-group business represented approximately 63% of total rooms revenue, down from 75% a year ago [53] Company Strategy and Development Direction - The company aims to optimize revenue management and enhance service for returning business travelers and group events [54] - The focus is on increasing the number of films released theatrically and collaborating with content providers for exclusive theatrical runs [44] - The company is committed to maintaining a strong balance sheet and pursuing growth opportunities through investments and acquisitions [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in both theater and hotel divisions, noting strong customer demand and a robust film slate [35][36] - The company anticipates continued progress in the recovery of the industry, particularly for group and business travel [59] - Management acknowledged potential macroeconomic challenges but remains confident in the ongoing recovery [87] Other Important Information - The Board of Directors reinstated a quarterly dividend of $0.05 per share, reflecting confidence in the recovery and cash flow generation [33][63] - The company repaid $46.6 million of short-term borrowings, reducing pandemic-related debt [32] Q&A Session Summary Question: Trends in admissions and concessions - Management noted strong traffic in theaters and a preference for premium large format screens, with successful pricing changes implemented [72][73] Question: Technology and concession sales - Management discussed efforts to reduce wait times at concession stands through mobile app enhancements and upselling strategies [74][75] Question: Day-and-date release strategy - Management confirmed that a theatrical window is beneficial for the film distribution ecosystem, emphasizing the importance of exclusive theatrical runs [78][80] Question: Normalization of business vs. leisure travel - Management indicated that the shift back to a more normalized mix of business and leisure travel is underway, with expectations for further improvement in 2023 [87] Question: Dividend reinstatement and share repurchase - Management expressed confidence in the recovery and sustainable cash flow generation, indicating that the dividend is a first step, with potential for future increases [108][110]

Financial Data and Key Metrics Changes - The company reported a significant increase in consolidated revenues, growing from $50 million in the previous year to over $132 million in the first quarter of fiscal 2022, representing a more than 2.5x increase [10] - Adjusted EBITDA improved from negative $17 million last year to positive $4 million this year, an increase of nearly $21 million [10] - Interest expense decreased by $750,000 due to lower short-term debt and reduced borrowings [12] Business Line Data and Key Metrics Changes - The theater division contributed the majority of the first quarter adjusted EBITDA, with a combined contribution of $7 million prior to unallocated corporate expenses [11] - Average admission prices in the theater division increased by 6.4% compared to last year and by 18% compared to fiscal 2019 [13] - Average concession and food and beverage revenues per person increased by 5.7% compared to last year and by 36.1% compared to fiscal 2019 [14] - Hotel division total revenue for the first quarter was over 95% of 2019 levels, with adjusted revenues at 91% of adjusted 2019 levels [21] Market Data and Key Metrics Changes - U.S. box office receipts decreased by 44.1% during the fiscal 2022 first quarter compared to fiscal 2019, with the company's admission revenue decline outperforming the industry average by 4.7 percentage points [16] - The RevPAR for the company's seven comparable owned hotels decreased just under 16% compared to fiscal 2019, outperforming comparable upper upscale hotels in the U.S. by 2.1 percentage points [23] Company Strategy and Development Direction - The company aims to continue its recovery from the pandemic while focusing on long-term growth and strategic priorities [32][59] - The company is exploring new subscription models to drive recurring traffic to theaters and is testing new entertainment options within theater locations [57][56] - The company remains committed to owning its real estate and maintaining a strong balance sheet [28][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory, noting that the first quarter results reflect significant year-over-year improvement despite challenges from the Omicron variant [9][31] - There is a belief that business travel will return to pre-pandemic levels as employees return to offices, which will positively impact hotel revenues [37] - Management highlighted the importance of exclusive theatrical windows for maximizing film performance and revenue [51][54] Other Important Information - The company reported cash flow from operations of $6.5 million, benefiting from a $23 million income tax refund and state government grants [25] - Total cash capital expenditures were $6.6 million, primarily for a guest room renovation project [26] - The company ended the quarter with nearly $241 million in cash and revolving credit availability, with no borrowings on its $225 million revolving credit facility [28] Q&A Session Summary Question: Thoughts on the volume of wide releases and potential collaboration with OTT providers - Management acknowledged that the industry is not back to pre-pandemic content levels but noted positive trends in discussions with OTT providers regarding potential collaborations [70][75] Question: Considerations for reinstating dividends - Management confirmed ongoing discussions about reinstating dividends, with expectations to return to being a dividend-paying stock, albeit at lower levels initially [84] Question: Consumer price sensitivity and inflationary pressures - Management indicated that both theater and hotel sides have shown elasticity in pricing, with selective price increases being implemented [88][90] Question: Acquisition environment in the theater sector - Management noted a quiet acquisition environment with limited activity but remains open to opportunities as the market stabilizes [94][95] Question: Exclusive theatrical window and studio compliance - Management confirmed that most major studios have conformed to a 45-day exclusive window, emphasizing the importance of this model for maximizing film revenue [97]

FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission File Number 1-12604 THE MARCUS CORPORATION (Exact name of registrant as specified in its charter) Wisconsin ...

The Marcus Corporation (NYSE:MCS) Q4 2021 Earnings Conference Call March 3, 2022 11:00 AM ET Company Participants Douglas Neis - Executive Vice President & CFO Gregory Marcus - President & Chief Executive Officer Conference Call Participants James Goss - Barrington Research Eric Wold - B. Riley Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding t ...

Table of Contents General UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 30, 2021 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 1-12604 THE MARCUS CORPORATION (Exact name of registrant as specified in its charter) Wisc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 1-12604 THE MARCUS CORPORATION (Exact name of registrant as specified in its charter) Wisco ...

The Marcus Corporation (NYSE:MCS) Q3 2021 Earnings Conference Call November 3, 2021 11:00 AM ET Company Participants Greg Marcus ??? President and Chief Executive Officer Doug Neis ??? Executive Vice President and Chief Financial Officer Conference Call Participants Eric Wold ??? B. Riley Jim Goss ??? Barrington Research Mike Hickey ??? Benchmark Company Operator Good morning, everyone, and welcome to the Marcus Corporation???s Third Quarter Earnings Conference Call. My name is Mel, and I will be your opera ...