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 ...

The Marcus Corporation INVESTOR PRESENTATION| AUGUST 2021 GRATEFUL | DETERMINED | RESILIENT Forward Looking Statement Certain matters discussed in this presentation are "forward-look ing statements" intended to qualif y for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-look ing 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 ...

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 July 1, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 ...

The Marcus Corporation (NYSE:MCS) Q2 2021 Earnings Conference Call August 4, 2021 11:00 AM ET Company Participants Doug Neis - Executive Vice President, Chief Financial Officer & Treasurer Greg Marcus - President & Chief Executive Officer Conference Call Participants Mike Hickey - Benchmark Company Eric Wold - B. Riley Securities Jim Goss - Barrington Research Ryan Hamilton - Morgan Dempsey Capital Operator Good morning, everyone, and welcome to the Marcus Corporation's Second Quarter Earnings Conference Ca ...

PART I – FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements of The Marcus Corporation for the 13 weeks ended April 1, 2021, and comparable periods, including balance sheets, statements of earnings (loss), comprehensive income (loss), and cash flows, along with condensed notes detailing accounting policies, the impact of COVID-19, impairment charges, debt, leases, income taxes, joint venture transactions, and business segment information [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Summary (April 1, 2021 vs. December 31, 2020) | Metric | April 1, 2021 (in thousands) | December 31, 2020 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total Current Assets | $67,817 | $63,654 | $4,163 | 6.5% | | Net Property and Equipment | $828,240 | $848,328 | $(20,088) | -2.4% | | Total Assets | $1,225,829 | $1,254,178 | $(28,349) | -2.3% | | Total Current Liabilities | $210,567 | $217,392 | $(6,825) | -3.1% | | Long-Term Debt | $227,770 | $193,036 | $34,734 | 18.0% | | Total Equity | $457,855 | $498,723 | $(40,868) | -8.2% | [Consolidated Statements of Earnings (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Earnings%20(Loss)) Statements of Earnings (Loss) Summary (13 Weeks Ended April 1, 2021 vs. March 26, 2020) | Metric | 13 Weeks Ended April 1, 2021 (in thousands) | 13 Weeks Ended March 26, 2020 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :----------------------------------- | :-------------------- | :------- | | Total Revenues | $50,787 | $159,460 | $(108,673) | -68.2% | | Total Costs and Expenses | $86,448 | $181,660 | $(95,212) | -52.4% | | Operating Loss | $(35,661) | $(22,200) | $(13,461) | 60.6% | | Net Loss | $(28,130) | $(19,500) | $(8,630) | 44.3% | | Net Loss Attributable to The Marcus Corporation | $(28,130) | $(19,352) | $(8,778) | 45.4% | | Net Loss Per Share - Basic (Common Stock) | $(0.93) | $(0.64) | $(0.29) | 45.3% | | Net Loss Per Share - Basic (Class B Common Stock) | $(0.80) | $(0.58) | $(0.22) | 37.9% | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Statements of Comprehensive Income (Loss) Summary (13 Weeks Ended April 1, 2021 vs. March 26, 2020) | Metric | 13 Weeks Ended April 1, 2021 (in thousands) | 13 Weeks Ended March 26, 2020 (in thousands) | Change (in thousands) | | :------------------------------------ | :------------------------------------ | :----------------------------------- | :-------------------- | | Net Loss | $(28,130) | $(19,500) | $(8,630) | | Other Comprehensive Income (Loss) | $452 | $(547) | $999 | | Comprehensive Loss | $(27,678) | $(20,047) | $(7,631) | | Comprehensive Loss Attributable to The Marcus Corporation | $(27,678) | $(19,899) | $(7,779) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Statements of Cash Flows Summary (13 Weeks Ended April 1, 2021 vs. March 26, 2020) | Metric | 13 Weeks Ended April 1, 2021 (in thousands) | 13 Weeks Ended March 26, 2020 (in thousands) | Change (in thousands) | | :------------------------------------ | :------------------------------------ | :----------------------------------- | :-------------------- | | Net Cash Used in Operating Activities | $(12,983) | $(16,618) | $3,635 | | Net Cash Provided by (Used in) Investing Activities | $2,552 | $(10,181) | $12,733 | | Net Cash Provided by Financing Activities | $9,246 | $132,448 | $(123,202) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $(1,185) | $105,649 | $(106,834) | | Cash, Cash Equivalents and Restricted Cash at End of Period | $12,903 | $131,267 | $(118,364) | [Condensed Notes to Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The condensed notes provide detailed explanations of the company's accounting policies, the significant impact of the COVID-19 pandemic on operations and liquidity, impairment charges recognized in prior periods, the structure and changes in long-term debt (including convertible notes), lease accounting, income tax effects, joint venture transactions, and business segment-specific financial performance [1. General](index=9&type=section&id=1.%20General) - The unaudited consolidated financial statements for the 13 weeks ended April 1, 2021, and March 26, 2020, have been prepared with normal recurring adjustments and are not necessarily indicative of full-year results[17](index=17&type=chunk) - The company adopted FASB ASU No. 2020-06 (Debt with Conversion and Other Options) on January 1, 2021, applied prospectively, with no other significant changes to accounting policies[19](index=19&type=chunk) - Depreciation expense decreased to **$17.96 million** for Q1 2021 from **$19.03 million** for Q1 2020[20](index=20&type=chunk) - Assets held for sale, primarily excess land, totaled **$4.12 million** as of April 1, 2021, down from **$8.66 million** at December 31, 2020[10](index=10&type=chunk)[21](index=21&type=chunk) - No indicators of impairment were identified for long-lived assets, goodwill, or trade name intangible assets during Q1 2021, unlike Q1 2020 when impairment charges were recorded[22](index=22&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) Shareholders' Equity Attributable to The Marcus Corporation (in thousands) | Metric | December 31, 2020 | April 1, 2021 | Change | | :------------------------------------ | :------------------ | :------------ | :----- | | Total Shareholders' Equity Attributable to The Marcus Corporation | $498,723 | $457,855 | $(40,868) | - The decrease in shareholders' equity was primarily due to the adoption of ASU No. 2020-06 (reducing equity by **$15,809 thousand**) and the net loss of **$28,130 thousand**[30](index=30&type=chunk) Fair Value Measurements (in thousands) | Category | April 1, 2021 | December 31, 2020 | | :-------------------------------- | :------------ | :---------------- | | Level 1 (Trading Securities) | $1,715 | $1,415 | | Level 2 (Interest Rate Swap Liability) | $1,186 | $1,470 | - No Level 3 assets or liabilities were measured on a recurring basis at fair market value[33](index=33&type=chunk) Net Periodic Pension Cost (in thousands) | Component | 13 Weeks Ended April 1, 2021 | 13 Weeks Ended March 26, 2020 | | :------------------------------------------ | :--------------------------- | :-------------------------- | | Service cost | $281 | $274 | | Interest cost | $300 | $342 | | Net amortization of prior service cost and actuarial loss | $328 | $248 | | **Net periodic pension cost** | **$909** | **$864** | Revenue Disaggregation by Segment (in thousands) | Revenue Type | Theatres (Q1 2021) | Hotels/Resorts (Q1 2021) | Corporate (Q1 2021) | Total (Q1 2021) | Theatres (Q1 2020) | Hotels/Resorts (Q1 2020) | Corporate (Q1 2020) | Total (Q1 2020) | | :-------------------- | :----------------- | :----------------------- | :------------------ | :---------------- | :----------------- | :----------------------- | :------------------ | :---------------- | | Theatre admissions | $10,685 | — | — | $10,685 | $55,395 | — | — | $55,395 | | Rooms | — | $9,044 | — | $9,044 | — | $16,989 | — | $16,989 | | Theatre concessions | $9,919 | — | — | $9,919 | $45,930 | — | — | $45,930 | | Food and beverage | — | $5,912 | — | $5,912 | — | $13,614 | — | $13,614 | | Other revenues | $1,915 | $9,879 | $100 | $11,894 | $7,703 | $10,984 | $89 | $18,776 | | Cost reimbursements | $43 | $3,290 | — | $3,333 | $183 | $8,573 | — | $8,756 | | **Total revenues** | **$22,562** | **$28,125** | **$100** | **$50,787** | **$109,211** | **$50,160** | **$89** | **$159,460** | - Deferred revenue from contracts with customers increased to **$38,773 thousand** as of April 1, 2021, from **$37,307 thousand** at December 31, 2020, with the majority relating to non-redeemed gift cards, advanced ticket sales, and loyalty programs[36](index=36&type=chunk) [2. Impact of COVID-19 Pandemic](index=15&type=section&id=2.%20Impact%20of%20COVID-19%20Pandemic) - The COVID-19 pandemic significantly impacted both business segments due to government restrictions and customer reactions[43](index=43&type=chunk) - Theatres started Q1 2021 with **~52%** open, ended with **~74%** open, operating with reduced days/hours and significantly reduced attendance[44](index=44&type=chunk) - All 8 company-owned and most managed hotels were open in Q1 2021 but generated significantly reduced revenues; two SafeHouse restaurants/bars remained closed[45](index=45&type=chunk) - Liquidity measures in Q1 2021 included receiving **$5.9 million** in 2019 tax refunds, **$4.9 million** in prior year CARES Act grants, and an additional **$1.27 million** in theatre grants[46](index=46&type=chunk) - The company filed **$24.2 million** in income tax refund claims for fiscal 2020, primarily from net operating loss carrybacks[47](index=47&type=chunk) - Management believes it has sufficient liquidity for at least 12 months, but future debt covenant compliance depends on new movie releases, government actions, and the speed of business recovery[49](index=49&type=chunk) [3. Impairment Charges](index=16&type=section&id=3.%20Impairment%20Charges) - During Q1 2020, the company recorded a **$6.51 million** impairment loss on certain theatre asset groups (leasehold improvements, furniture, fixtures, equipment, and operating lease right-of-use assets)[50](index=50&type=chunk) - Additionally, a **$2.2 million** impairment loss was recorded on the Movie Tavern trade name intangible asset in Q1 2020, with its fair value estimated at **$6.9 million** as of April 1, 2021[51](index=51&type=chunk) - No indicators of impairment were identified during the 13 weeks ended April 1, 2021[22](index=22&type=chunk)[26](index=26&type=chunk) [4. Long-Term Debt and Short-Term Borrowings](index=18&type=section&id=4.%20Long-Term%20Debt%20and%20Short-Term%20Borrowings) Long-Term Debt Summary (in thousands) | Debt Type | April 1, 2021 | December 31, 2020 | | :------------------------------------ | :------------ | :---------------- | | Mortgage notes | $24,482 | $24,482 | | Senior notes | $100,000 | $100,000 | | Unsecured term note | $1,642 | $1,735 | | Convertible senior notes | $100,050 | $100,050 | | Payroll Protection Program loans | $3,424 | $3,424 | | Revolving credit agreement | $14,000 | — | | Debt issuance costs | $(4,467) | $(3,684) | | **Total Long-Term Debt (net)** | **$227,770** | **$193,036** | - The company has a **$225 million** revolving credit facility, with **$14 million** outstanding and **$207.2 million** available as of April 1, 2021[53](index=53&type=chunk) - A **$90.8 million** Senior Term Loan A, maturing September 22, 2021, is included in short-term borrowings[54](index=54&type=chunk) - The company early adopted ASU No. 2020-06 on January 1, 2021, simplifying the accounting for its **$100.05 million** convertible senior notes by treating them as a single liability, resulting in a cumulative adjustment that increased long-term debt by **$21.39 million** and decreased capital in excess of par by **$16.51 million**[59](index=59&type=chunk) - As of April 2, 2021, the conversion feature on the convertible notes was met, but the notes remain classified as long-term as the company can settle in stock and does not expect conversion within 12 months[62](index=62&type=chunk) - The company uses interest rate swaps to manage market risks; one **$25 million** swap expired March 1, 2021, and another **$25 million** swap expires March 1, 2023, with a fair value liability of **$1.19 million** as of April 1, 2021[65](index=65&type=chunk) [5. Leases](index=21&type=section&id=5.%20Leases) Lease Cost (in thousands) | Lease Cost Type | 13 Weeks Ended April 1, 2021 | 13 Weeks Ended March 26, 2020 | | :-------------------------- | :--------------------------- | :-------------------------- | | Finance lease costs | $962 | $980 | | Operating lease costs | $6,341 | $6,954 | Cash Flows from Leases (in thousands) | Cash Flow Type | 13 Weeks Ended April 1, 2021 | 13 Weeks Ended March 26, 2020 | | :------------------------------------ | :--------------------------- | :-------------------------- | | Financing cash flows from finance leases | $630 | $635 | | Operating cash flows from finance leases | $250 | $269 | | Operating cash flows from operating leases | $7,393 | $4,644 | - Weighted-average remaining lease terms are **9 years** for finance leases and **15 years** for operating leases[69](index=69&type=chunk) - Weighted-average discount rates are **4.58%** for finance leases and **4.52%** for operating leases as of April 1, 2021[69](index=69&type=chunk) - The company obtained lease concessions, primarily payment deferrals, due to COVID-19, and continues to recognize rent expense as if no changes were made to the lease contracts, with deferred rent payments of approximately **$6.02 million** for operating leases included in total operating lease obligations[69](index=69&type=chunk) [6. Income Taxes](index=24&type=section&id=6.%20Income%20Taxes) - The effective income tax rate for Q1 2021 was **27.7%** (benefiting from nonrecurring adjustments), compared to **25.3%** for Q1 2020[71](index=71&type=chunk) - The company received **$5.9 million** in 2019 tax refunds and filed **$24.2 million** in 2020 tax refund claims, primarily from net operating loss carrybacks[72](index=72&type=chunk) - The effective income tax rate for the remaining quarters of fiscal 2021 is anticipated to be in the **24-26%** range[98](index=98&type=chunk) [7. Joint Venture Transactions](index=24&type=section&id=7.%20Joint%20Venture%20Transactions) - During Q1 2021, the company surrendered its ownership interest in a joint venture with a **$0** investment value[73](index=73&type=chunk) - The company sold its interest in another equity investment for **$4.15 million**, recording a gain of **$2.08 million**[73](index=73&type=chunk) [8. Business Segment Information](index=24&type=section&id=8.%20Business%20Segment%20Information) - The company's primary operations are reported in two business segments: Theatres and Hotels/Resorts[74](index=74&type=chunk) Business Segment Performance (in thousands) | Metric | Theatres (Q1 2021) | Hotels/Resorts (Q1 2021) | Corporate (Q1 2021) | Total (Q1 2021) | Theatres (Q1 2020) | Hotels/Resorts (Q1 2020) | Corporate (Q1 2020) | Total (Q1 2020) | | :-------------------------- | :----------------- | :----------------------- | :------------------ | :---------------- | :----------------- | :----------------------- | :------------------ | :---------------- | | Revenues | $22,562 | $28,125 | $100 | $50,787 | $109,211 | $50,160 | $89 | $159,460 | | Operating loss | $(25,639) | $(5,708) | $(4,314) | $(35,661) | $(7,083) | $(10,853) | $(4,264) | $(22,200) | | Depreciation and amortization | $12,786 | $5,127 | $66 | $17,979 | $13,510 | $5,412 | $111 | $19,033 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, highlighting the severe impact of the COVID-19 pandemic on both the theatre and hotels/resorts segments, detailing operational adjustments, liquidity preservation efforts, and the financial results for the first quarter of fiscal 2021 compared to 2020, including segment-specific revenue and operating loss trends, and discussing the outlook for recovery [Special Note Regarding Forward-Looking Statements](index=25&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks and uncertainties, including the adverse effects of the COVID-19 pandemic on business, liquidity, and debt servicing ability[78](index=78&type=chunk) - Key risks include the duration of the pandemic, government restrictions, film availability, economic conditions, financing access, competitive conditions, and the ability to achieve strategic benefits[78](index=78&type=chunk) - Forward-looking statements are based on assumptions about managing pandemic difficulties, temporary closures, workforce availability, and the pandemic's effects, but are not guarantees of future performance[78](index=78&type=chunk) [RESULTS OF OPERATIONS](index=25&type=section&id=RESULTS%20OF%20OPERATIONS) [General](index=25&type=section&id=General) - The company's fiscal year ends on the last Thursday in December, with fiscal 2021 being a 52-week year and fiscal 2020 a 53-week year[79](index=79&type=chunk) - The first quarter of fiscal 2021 covered January 1, 2021, to April 1, 2021, and the first quarter of fiscal 2020 covered December 27, 2019, to March 26, 2020[80](index=80&type=chunk) - The company's primary operations are in two business segments: movie theatres and hotels and resorts[80](index=80&type=chunk) [Impact of the COVID-19 Pandemic](index=26&type=section&id=Impact%20of%20the%20COVID-19%20Pandemic_MD%26A) - Theatres began Q1 2021 with **~52%** open, ended with **~74%** open, and as of the report date, **~89%** are open, operating with reduced days/hours and significantly reduced attendance[83](index=83&type=chunk) - All 8 company-owned and most managed hotels were open in Q1 2021 but generated significantly reduced revenues; two SafeHouse restaurants/bars remained temporarily closed[84](index=84&type=chunk) - As of April 1, 2021, the company had a cash balance of **~$6 million**, **$207 million** available under its revolving credit facility, and a debt-to-capitalization ratio of **0.41**, believing it has sufficient liquidity for fiscal 2021 and into fiscal 2022[85](index=85&type=chunk) - Liquidity was enhanced by receiving **$5.9 million** in 2019 tax refunds, filing **$24.2 million** in 2020 tax refund claims, and receiving **$4.9 million** in prior year CARES Act grants and **$1.3 million** in additional theatre grants[86](index=86&type=chunk)[87](index=87&type=chunk) - The company sold an equity interest in a joint venture for **~$4.2 million** and anticipates **$10-$40 million** from real estate sales in the next 12-18 months[88](index=88&type=chunk) - The company is optimistic about the theatre industry rebound, encouraged by recent film performance and easing restrictions, with a strong film slate expected for H2 2021 and 2022[89](index=89&type=chunk)[110](index=110&type=chunk) - Hotel demand in Q1 2021 primarily came from the 'drive-to leisure' market, exceeding expectations, while group bookings are significantly behind but increasing for late 2021 and 2022+[90](index=90&type=chunk)[121](index=121&type=chunk) [Overall Results](index=28&type=section&id=Overall%20Results) Overall Financial Performance (Q1 2021 vs. Q1 2020, in millions) | Metric | F2021 | F2020 | Variance (Amt.) | Variance (Pct.) | | :------------------------------------ | :---- | :---- | :-------------- | :-------------- | | Revenues | $50.8 | $159.5 | $(108.7) | (68.2)% | | Operating loss | $(35.7) | $(22.2) | $(13.5) | (60.6)% | | Other income (expense) | $(3.2) | $(3.9) | $0.7 | 16.6% | | Net loss attributable to The Marcus Corp. | $(28.1) | $(19.4) | $(8.7) | (45.4)% | | Net loss per common share - diluted | $(0.93) | $(0.64) | $(0.29) | (45.3)% | - The increased operating loss in Q1 2021 was due to decreased revenues from both divisions, partially offset by a **$1.3 million** state government grant[93](index=93&type=chunk)[94](index=94&type=chunk) - Q1 2020 operating loss was negatively impacted by **$5.5 million** in nonrecurring expenses and **$8.7 million** in impairment charges[94](index=94&type=chunk) - Interest expense increased by **$2.3 million (92.5%)** to **$4.8 million** in Q1 2021 due to increased borrowings, a higher average interest rate, and increased noncash amortization of debt issuance costs[96](index=96&type=chunk) - A net gain of **$2.2 million** on asset dispositions was reported in Q1 2021, primarily from the sale of a joint venture equity investment, compared to a **$12 thousand** loss in Q1 2020[97](index=97&type=chunk) - The effective income tax rate for Q1 2021 was **27.7%**, benefiting from nonrecurring adjustments, compared to **25.3%** in Q1 2020[98](index=98&type=chunk) [Theatres](index=30&type=section&id=Theatres) Theatre Segment Performance (Q1 2021 vs. Q1 2020, in millions) | Metric | F2021 | F2020 | Variance (Amt.) | Variance (Pct.) | | :-------------------------- | :---- | :---- | :-------------- | :-------------- | | Revenues | $22.6 | $109.2 | $(86.6) | (79.3)% | | Operating loss | $(25.6) | $(7.1) | $(18.5) | (262.0)% | | Operating margin | (113.6)% | (6.5)% | | | Theatre Revenue Breakdown (Q1 2021 vs. Q1 2020, in millions) | Revenue Type | F2021 | F2020 | Variance (Amt.) | Variance (Pct.) | | :------------------ | :---- | :---- | :-------------- | :-------------- | | Admission revenues | $10.7 | $55.4 | $(44.7) | (80.7)% | | Concession revenues | $9.9 | $45.9 | $(36.0) | (78.4)% | | Other revenues | $1.9 | $7.7 | $(5.8) | (75.1)% | | Cost reimbursements | $0.1 | $0.2 | $(0.1) | (76.5)% | - The **80.7%** decrease in admission revenues outperformed the U.S. box office decrease of **89.7%** by **9.0 percentage points**, with market share increasing to **~4.8%** from **~3.1%** in Q1 2019[103](index=103&type=chunk) - The Marcus Private Cinema (MPC) program averaged over **1,500 events** per week in Q1 2021, contributing approximately **21%** of admission revenues[104](index=104&type=chunk) - Average ticket price increased by **3.7%** due to a larger proportion of premium large format (PLF) screens and MPC events[107](index=107&type=chunk) - Average concession revenues per person increased by **16.0%**, attributed to animated films, shorter lines, and increased online ordering[108](index=108&type=chunk) - The company ended Q1 2021 with **1,091 company-owned screens** in **88 theatres** and **6 managed screens** in **1 theatre**, with plans to open most remaining closed theatres by the end of May 2021[112](index=112&type=chunk) [Hotels and Resorts](index=33&type=section&id=Hotels%20and%20Resorts) Hotels and Resorts Segment Performance (Q1 2021 vs. Q1 2020, in millions) | Metric | F2021 | F2020 | Variance (Amt.) | Variance (Pct.) | | :-------------------------- | :---- | :---- | :---- | :---- | | Revenues | $28.1 | $50.2 | $(22.1) | (43.9)% | | Operating loss | $(5.7) | $(10.9) | $5.2 | 47.4% | | Operating margin | (20.3)% | (21.6)% | | | Hotels and Resorts Revenue Breakdown (Q1 2021 vs. Q1 2020, in millions) | Revenue Type | F2021 | F2020 | Variance (Amt.) | Variance (Pct.) | | :---------------------- | :---- | :---- | :---- | :---- | | Room revenues | $9.0 | $17.0 | $(8.0) | (46.8)% | | Food and beverage revenues | $5.9 | $13.6 | $(7.7) | (56.6)% | | Other revenues | $9.9 | $11.0 | $(1.1) | (10.1)% | | Cost reimbursements | $3.3 | $8.6 | $(5.3) | (61.6)% | | **Total revenues** | **$28.1** | **$50.2** | **$(22.1)** | **(43.9)%** | - Despite decreased revenues, the operating loss improved significantly due to Q1 2020 nonrecurring expenses, improved performance at Grand Geneva, and strong cost controls[116](index=116&type=chunk) Operating Statistics (Company-Owned Properties, Q1 2021 vs. Q1 2020) | Metric | F2021 | F2020 | Variance (Amt.) | Variance (Pct.) | | :-------------------- | :---- | :---- | :-------------- | :-------------- | | Occupancy percentage | 28.3% | 54.2% | (25.9)pts | (47.8)% | | ADR | $133.12 | $129.71 | $3.41 | 2.6% | | RevPAR | $37.66 | $70.26 | $(32.60) | (46.4)% | - The company's RevPAR decrease of **46.4%** outperformed the U.S. 'upper upscale' segment (**54.5%** decrease) and competitive sets (**52.3%** decrease) by approximately **8 and 6 points**, respectively[118](index=118&type=chunk) - ADR increased primarily due to improved performance at the Grand Geneva Resort & Spa[119](index=119&type=chunk) - Future demand is expected to continue from the 'drive-to leisure' segment, with group bookings significantly behind but increasing for late 2021 and 2022+[121](index=121&type=chunk)[122](index=122&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=37&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - The company's movie theatre and hotels and resorts businesses typically generate significant and consistent daily cash under normal operating conditions[123](index=123&type=chunk) - Management believes current liquidity is sufficient to meet obligations and comply with debt covenants for at least 12 months, but future compliance is subject to the pace of business recovery and external factors[124](index=124&type=chunk) [Liquidity](index=37&type=section&id=Liquidity) - The company's businesses, when operating normally, generate significant and consistent daily cash, supporting operational liquidity[123](index=123&type=chunk) - Management believes current actions provide sufficient liquidity to meet obligations and comply with debt covenants for at least 12 months[124](index=124&type=chunk) - Future debt covenant compliance is dependent on the timing of new movie releases, government actions, and the speed of recovery for theatres and hotels/resorts, with potential for covenant waivers or amendments if recovery is slower than expected[124](index=124&type=chunk) - Theatres are expected to progressively return to near-normal performance in H2 2021 and Q1 2022, while hotels/resorts are expected to improve quarterly but not return to pre-COVID occupancy levels in fiscal 2021[124](index=124&type=chunk) [Financial Condition](index=38&type=section&id=Financial%20Condition) - Net cash used in operating activities decreased to **$13.0 million** in Q1 2021 from **$16.6 million** in Q1 2020, primarily due to favorable timing of grant and tax refund collections[125](index=125&type=chunk) - Net cash provided by investing activities increased to **$2.6 million** in Q1 2021 (from **$10.2 million** used in Q1 2020), driven by decreased capital expenditures and **$4.3 million** from asset disposals[126](index=126&type=chunk) - Capital expenditures totaled **$1.5 million** in Q1 2021, significantly down from **$10.0 million** in Q1 2020[126](index=126&type=chunk)[127](index=127&type=chunk) - Net cash provided by financing activities decreased to **$9.2 million** in Q1 2021 from **$132.4 million** in Q1 2020, reflecting a net increase of **$14.0 million** in revolving credit borrowings in Q1 2021 compared to **$139.0 million** in Q1 2020[128](index=128&type=chunk) - The debt-to-capitalization ratio increased to **0.41** at April 1, 2021, from **0.37** at December 31, 2020, partly due to the accounting change for convertible senior notes[129](index=129&type=chunk) - The company repurchased **~54,000 shares** for **~$1.2 million** in Q1 2021, primarily for income taxes on vested restricted stock, with **~2.7 million shares** remaining available under authorization[130](index=130&type=chunk)[136](index=136&type=chunk) - No dividend payments were made in Q1 2021, as the credit agreement temporarily suspends quarterly dividends for Q1 and Q2 2021[131](index=131&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes in its market risk exposures since December 31, 2020 - No material changes in market risk exposures have occurred since December 31, 2020[132](index=132&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of April 1, 2021, and there were no significant changes in internal control over financial reporting during the period - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of April 1, 2021[133](index=133&type=chunk) - There were no significant changes in internal control over financial reporting during the period covered by this report[133](index=133&type=chunk) PART II – OTHER INFORMATION [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No material changes from the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020[134](index=134&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 54,439 shares of common stock for approximately $1.2 million during the first quarter of fiscal 2021, primarily for income taxes on vested restricted stock, with approximately 2.7 million shares remaining available for repurchase under existing authorizations Common Stock Repurchases (Q1 2021) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Programs | Maximum Shares Yet to be Purchased | | :------------------ | :--------------------- | :--------------------------- | :------------------------------------------------------ | :--------------------------------- | | January 1-January 31 | — | $— | — | 2,718,994 | | February 1-February 28 | 15,819 | $17.72 | 15,819 | 2,703,175 | | March 1-April 1 | 38,620 | $23.32 | 38,620 | 2,664,555 | | **Total** | **54,439** | **$21.69** | **54,439** | **2,664,555** | - Repurchases were primarily made in conjunction with the payment of income taxes on vested restricted stock[135](index=135&type=chunk) - Approximately **2.7 million shares** remained available for repurchase under prior Board authorizations as of April 1, 2021[136](index=136&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to The Marcus Corporation - This item is not applicable to the company[137](index=137&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, and various XBRL-related documents - Exhibits include certifications by the Chief Financial Officer (31.2) and Chief Executive Officer (32) pursuant to the Sarbanes-Oxley Act, along with various Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[141](index=141&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report is duly signed on May 11, 2021, by Gregory S. Marcus, President and Chief Executive Officer, and Douglas A. Neis, Executive Vice President, Chief Financial Officer and Treasurer, on behalf of The Marcus Corporation - The report was signed on May 11, 2021, by Gregory S. Marcus (President and CEO) and Douglas A. Neis (Executive Vice President, CFO and Treasurer)[145](index=145&type=chunk)

The Marcus Corporation (NYSE:MCS) Q1 2021 Earnings Conference Call May 5, 2021 11:00 AM ET Company Participants Greg Marcus - President & Chief Executive Officer Doug Neis - Executive Vice President, Chief Financial Officer & Treasurer Conference Call Participants Mike Hickey - The Benchmark Company Eric Wold - B. Riley Jim Goss - Barrington Research Operator Good morning, everyone, and welcome to The Marcus Corporation First Quarter Earnings Conference Call. My name is Celine, and I will be your operator f ...