The Marcus(US:MCS)2025-10-31 21:11Financial Performance - Revenues for Q3 fiscal 2025 were $210.2 million, a decrease of $22.5 million (9.7%) compared to Q3 fiscal 2024's $232.7 million[75] - Operating income for Q3 fiscal 2025 was $22.7 million, down $10.1 million (30.7%) from $32.8 million in Q3 fiscal 2024[75] - Net earnings for Q3 fiscal 2025 were $16.2 million, a decline of $7.1 million (30.4%) compared to $23.3 million in Q3 fiscal 2024[75] - Net earnings per diluted share for Q3 fiscal 2025 were $0.52, down $0.21 (28.8%) from $0.73 in Q3 fiscal 2024[75] - Revenues for the first three quarters of fiscal 2025 increased to $565.0 million, up $17.7 million (3.2%) from $547.2 million in the first three quarters of fiscal 2024[75] - Operating income for the first three quarters of fiscal 2025 was $15.3 million, a decrease of $3.0 million (16.5%) compared to $18.4 million in the first three quarters of fiscal 2024[75] - Total Adjusted EBITDA for the company decreased by 22.6% to $40.4 million in Q3 2025 compared to $52.3 million in Q3 2024[114] - Adjusted EBITDA for Q3 F2025 was $40.4 million, a decrease of 22.5% from $52.3 million in Q3 F2024[116] Theatre Division Performance - Theatre division revenues for Q3 FY2025 were $119.9 million, a decrease of $23.9 million (16.6%) compared to Q3 FY2024 revenues of $143.8 million[87] - Operating income for the Theatre division in Q3 FY2025 was $12.3 million, down $9.4 million (43.3%) from $21.8 million in Q3 FY2024[87] - Admission revenues in Q3 FY2025 were $57.7 million, a decline of $11.3 million (16.3%) from $69.0 million in Q3 FY2024[88] - Total theatre attendance decreased by 18.7% in Q3 FY2025 compared to Q3 FY2024, attributed to lower box office performances from top films[92] - Theatres division Adjusted EBITDA decreased by 33.4% to $22.1 million in Q3 2025, reflecting lower attendance and revenues[114] Hotels and Resorts Division Performance - Hotels and resorts division revenues increased by 1.6% in Q3 FY2025 to $90.1 million, compared to $88.7 million in Q3 FY2024[101] - Operating income for the hotels and resorts division in Q3 FY2025 was $16.4 million, a decrease of $0.7 million (4.0%) from $17.0 million in Q3 FY2024[101] - Total revenues for the hotels and resorts division in the first three quarters of FY2025 increased by 2.4% to $225.7 million compared to $220.4 million in the same period of FY2024[102] - Food and beverage revenues grew by 8.3% to $24.1 million in Q3 2025, driven by strong group business and increased occupancy[103] - Average occupancy percentage rose to 78.4% in Q3 2025, up 1.7 percentage points from 76.7% in Q3 2024[105] - RevPAR decreased by 1.5% to $176.32 in Q3 2025, compared to $178.94 in Q3 2024, primarily due to lower average daily rates[105] Corporate Expenses and Income - Corporate expenses for the first three quarters of fiscal 2025 increased by $2.5 million compared to the same period in fiscal 2024, driven by higher depreciation and professional fees[77] - Other income for Q3 fiscal 2025 included a $4.5 million gain from a property insurance settlement, contributing to a 135.9% increase in other income compared to Q3 fiscal 2024[79] - Interest expense for Q3 fiscal 2025 was $2.8 million, down from $3.1 million in Q3 fiscal 2024, primarily due to decreased borrowings[80] - The effective income tax rate for the first three quarters of fiscal 2025 was 33.2%, with an anticipated range of 32% to 34% for the full fiscal year[85] Cash Flow and Capital Expenditures - Net cash provided by operating activities in the first three quarters of F2025 was $35.4 million, down from $51.4 million in the first three quarters of F2024, a decrease of 31.0%[125] - Total cash capital expenditures for the first three quarters of F2025 amounted to $60.8 million, an increase from $53.8 million in the same period of F2024[126] - Net cash used in investing activities during the first three quarters of F2025 totaled $46.6 million, a decrease of 20.2% from $58.4 million in the same period of F2024[126] - The company incurred approximately $18.4 million in capital expenditures in its theatre division during the first three quarters of F2025[127] Debt and Shareholder Actions - The debt-to-capitalization ratio was 0.26, and the net leverage ratio was 1.69x net debt to Adjusted EBITDA as of September 30, 2025[122] - Principal payments on long-term debt were approximately $10.4 million during the first three quarters of F2025, compared to $11.0 million in the same period of F2024[130] - The company added $156.0 million of new short-term revolving credit facility borrowings during the first three quarters of F2025[129] - The company repurchased 1.0 million shares of common stock for $16.2 million in the first three quarters of fiscal 2025, compared to 0.7 million shares for $9.7 million in the same period of fiscal 2024[134] - Dividends paid during the first three quarters of fiscal 2025 were $6.8 million, slightly up from $6.6 million in the same period of fiscal 2024[135]