Financial Data and Key Metrics Changes - The company reported consolidated revenues of $233 million, an over 11% increase year-over-year, with both divisions contributing to revenue growth [11] - Consolidated operating income was $32.8 million, and adjusted EBITDA reached $52.3 million, marking record results for the third quarter [11] - Net earnings for the third quarter were $24.8 million or $0.78 per share, excluding the impacts of convertible debt repurchases [12] Business Line Data and Key Metrics Changes - Theatres division revenue was $143.8 million, a 13.6% increase compared to the prior year, with comparable theatre admission revenue up 9.5% and attendance increasing by 7.1% [13][14] - Hotels & Resorts division revenues were $88.7 million, an 8.1% increase year-over-year, with RevPAR for comparable owned hotels growing 9.8% [19] Market Data and Key Metrics Changes - U.S. box office receipts increased 3.8% during the fiscal 2024 third quarter compared to the same period in fiscal 2023, indicating the company's theatres outperformed the industry by approximately 5.7 percentage points [14] - The upper-upscale hotel segment experienced a RevPAR increase of 1.4%, indicating the company's hotels outperformed the industry by 8.4 percentage points, including the impact of the Republican National Convention [21] Company Strategy and Development Direction - The company is focused on maintaining a balanced approach to capital allocation, investing in growth while returning capital to shareholders through dividends and share repurchases [30][53] - The management expressed optimism about the long-term future of the theatre business, citing a strong film slate for the remainder of 2024 and 2025 [43][44] Management's Comments on Operating Environment and Future Outlook - Management noted that the theatre industry is experiencing a significant recovery, with record results achieved in both divisions, and emphasized the importance of a favorable film slate [33][34] - The Republican National Convention positively impacted hotel revenues, demonstrating the potential for future events to drive demand [46] Other Important Information - The company repurchased $13.5 million of convertible senior notes for $15.5 million, marking the retirement of substantially all convertible debt [28] - Cash flow from operations was $30 million, an increase from $21 million in the prior year quarter, primarily due to higher EBITDA [25] Q&A Session Summary Question: Impact of consumer behavior on attendance - Management acknowledged that the theatre business often benefits during economic slowdowns as it becomes a more affordable entertainment option [60] Question: Capital allocation and M&A opportunities - Management is open to M&A but noted a slow market for transactions, with many potential sellers waiting for more stable conditions [62] Question: Attendance trends and customer demographics - Management indicated that the changes to Value Tuesday and other promotions have successfully attracted value-driven customers, contributing to improved attendance [68][78] Question: Concession sales and merchandise - Management confirmed an increase in souvenir items, which has positively impacted concession sales, although there is not a significant introduction of standalone merchandise [79]