Financial Data and Key Metrics Changes - In Q4 2025, RevPAR was approximately $182, reflecting a nearly 1% year-over-year increase, or nearly 3% when excluding the Royal Palm [20] - For the full year, RevPAR declined 2% versus 2024, while hotel adjusted EBITDA margin was 26.5%, a reduction of 130 basis points from the prior year [21] - Core hotel adjusted EBITDA margin improved by 230 basis points to 30%, contrasting with a 280 basis point contraction in the non-core portfolio [20][21] Business Line Data and Key Metrics Changes - The core portfolio delivered a RevPAR increase of 6% to nearly $216, significantly outperforming the non-core portfolio by nearly 1,500 basis points [20] - Fourth quarter group revenue for the core portfolio increased 13% year-over-year, with double-digit growth in banquet and catering revenues across key markets [11] - The Royal Palm renovation is expected to generate a 15%-20% return on invested capital, with projected EBITDA doubling from $14 million to nearly $28 million once stabilized [16] Market Data and Key Metrics Changes - The core portfolio outperformed the non-core hotels by an average of 480 basis points in 2025, reinforcing the company's strategic focus [10] - Hawaii is expected to be a significant contributor to earnings growth, with a multiyear recovery anticipated as demand trends improve [12] - New York delivered its highest fourth quarter group revenue in hotel history, up over 8% year-over-year, indicating strong market performance [14] Company Strategy and Development Direction - The company is focused on reshaping its portfolio by concentrating ownership in 21 core hotels with superior growth prospects and aggressively exiting non-core assets [6][8] - Over $120 million in non-core sales were executed at a blended multiple of 21x, with a strong track record of successfully recycling capital [7] - The company aims to complete its transition to a streamlined portfolio of high-quality hotels located in premium gateway cities and resort markets [18] Management's Comments on Operating Environment and Future Outlook - The U.S. economy remains on firm footing, with modestly higher growth expectations and easing inflation, which should support consumer demand [16] - The company remains cautious in its guidance due to potential geopolitical or macroeconomic volatility impacting booking decisions [17] - Management is optimistic about the setup for 2026, with anticipated demand boosts from major events like the World Cup [17] Other Important Information - The company invested nearly $300 million across the portfolio in 2025, with a planned reduction in capital investment for 2026 to $230 million-$260 million [22][24] - As of year-end 2025, liquidity was approximately $2 billion, including $200 million in cash and $1 billion in available capacity under the revolver [25] - The company returned a total of $245 million of capital in 2025, including $200 million in dividends and $45 million in share repurchases [32] Q&A Session Summary Question: Earnings trajectory for Hawaii properties - Management indicated that Hawaii properties should see mid-single-digit EBITDA growth, with RevPAR growth expected to be on the higher end of the 2% range [36][38] Question: Sequential change in Hilton Hawaiian Village performance - Management noted a 37% decrease in group pace for Q1, impacting expected performance despite a strong Q4 [45] Question: Non-core asset sales and potential for core hotel sales - Management emphasized a focus on non-core asset sales, with core hotels accounting for 90% of EBITDA and value, making them less likely to be sold [70][72] Question: Impact of World Cup on Miami property - Management expressed confidence in capturing demand from the World Cup, with the Royal Palm expected to open in early June [49][75] Question: Future growth and potential acquisitions - Management is optimistic about transitioning to an offensive strategy post non-core asset sales, with potential for acquisitions in the future [81][82]

Financial Data and Key Metrics Changes - Consolidated revenues for the third quarter were $210 million, down 9.7% compared to the prior year quarter [5] - Operating income decreased by $10.1 million to $22.7 million compared to the prior year quarter [5] - Consolidated adjusted EBITDA was $40.4 million, a decrease of $11.9 million from the third quarter of fiscal 2024 [5] - Net earnings for the quarter were $16.2 million, or $0.52 per share, impacted by a non-recurring gain on a property insurance settlement of $3 million [5][6] - Excluding the gain, net earnings were $13.2 million, or $0.42 per share, compared to $24.8 million, or $0.78 per share in the prior year [6] Business Line Data and Key Metrics Changes Theater Division - Total revenue for the theater division was $119.9 million, a decrease of approximately 16% compared to the prior year [6] - Comparable theater admission revenue decreased by 15.8%, and attendance decreased by 18.7% compared to the fiscal third quarter 2024 [7] - Adjusted EBITDA for the theater division was $22.1 million, a 33% decrease over the prior year quarter [10] Hotels and Resorts Division - Total revenues before cost reimbursements were $80.3 million, a 1.7% increase compared to the prior year [10] - RevPAR for comparable owned hotels decreased by 1.5%, with an average occupancy rate of 78.4% [10][11] - Adjusted EBITDA for hotels was essentially flat compared to the prior year quarter [14] Market Data and Key Metrics Changes - U.S. box office receipts decreased by 12% during the fiscal 2025 third quarter compared to the previous year, indicating a trailing performance relative to the industry [7] - Comparable competitive hotels experienced a RevPAR decrease of 6.7%, indicating that the company's hotels outperformed the competitive set by 5.2 percentage points [12] Company Strategy and Development Direction - The company plans to continue pursuing growth investments while returning capital to shareholders through dividends and share repurchases [17][32] - Capital expenditures for fiscal 2025 are expected to be between $75 to $85 million, with a significant decrease anticipated in 2026 [15][32] - The company is focused on optimizing pricing strategies to capture premium during peak periods while maintaining value-oriented options for price-sensitive customers [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a mixed quarter with solid results in hotels but challenges in theaters due to a less concentrated film slate [4][18] - The company remains optimistic about the upcoming film slate and expects continued growth in admission per caps [25][49] - There is an increased level of economic uncertainty, but the company is prepared to react and adjust quickly if needed [30] Other Important Information - The company repurchased approximately 600,000 shares for $9.1 million during the third quarter, totaling over 1 million shares repurchased this year [16] - The board approved a 4 million share increase in the current repurchase authorization, bringing it to 4.7 million shares [32] - The company celebrated its 90th anniversary, emphasizing its entrepreneurial legacy [33] Q&A Session Summary Question: On the hotel side, what is the situation with rate growth in three hotels? - Management indicated that the lack of rate growth was due to market dynamics, with two hotels facing persistent supply issues and one experiencing recent demand softening [36][37] Question: Is the $50 million to $55 million CapEx primarily maintenance? - Management confirmed that while it includes some ROI investments, it is primarily maintenance and ROI capital [38] Question: How does the company view M&A opportunities? - The company is comfortable with its current leverage and has capacity for M&A if attractive opportunities arise [40][41] Question: Have there been changes in consumer behavior regarding concessions? - Management noted no significant changes in consumer buying patterns, with consistent basket sizes and increased merchandise sales [42][43] Question: How does the company view the M&A market in the current macro environment? - Management observed a sluggish transaction volume but noted a potential increase in activity as interest rates decrease [44][45] Question: What are the expectations for admission per cap growth? - Management expects growth to continue, driven by strategic pricing moves implemented in the third quarter [46][47] Question: What growth opportunities does the company see for theaters and hotels? - Management highlighted the strong film slate for 2026 and the benefits of recent investments in hotel renovations [49][51]

Financial Data and Key Metrics Changes - Consolidated revenues for the second quarter were $206 million, up 17% compared to the prior year quarter, with operating income increasing to $13 million, a rise of $10.8 million [6] - Consolidated adjusted EBITDA for the second quarter was $32.3 million, reflecting a nearly 47% increase over the previous year [6] - Net earnings for the quarter were $7.3 million, or $0.23 per share, compared to a net loss of $5.2 million, or $0.17 per share, in the prior year [6] Business Line Data and Key Metrics Changes - Theater division revenue for the second quarter was $131.7 million, an increase of nearly 30% year-over-year, with comparable admission revenue up 29.3% and attendance up 26.7% [7][8] - Hotel division revenues before cost reimbursements were $64.6 million, a 1.2% increase compared to the prior year, with RevPAR decreasing by 2.9% due to a 5.4 percentage point drop in occupancy [12][14] Market Data and Key Metrics Changes - U.S. box office receipts increased by 36.5% during the second quarter compared to the previous year, indicating that the company's admissions revenue performance trailed the industry by approximately seven percentage points [8] - Comparable competitive hotels in the markets experienced RevPAR growth of 2.9%, indicating that the company's hotels underperformed the competitive set by 5.8 percentage points [14] Company Strategy and Development Direction - The company is focused on driving long-term attendance and total revenue, with strategies that include optimizing ticket prices and promotional programs to encourage repeat moviegoing [22][23] - The company plans to continue capital expenditures for fiscal 2025 between $70 million and $85 million, with a significant portion allocated to renovations [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second quarter results, highlighting strong consumer demand and a diverse film slate as key drivers of growth [18][19] - The company noted that while there is increased economic uncertainty, its hotel portfolio has generally performed well, with stable group bookings and no significant cancellations [29] Other Important Information - The company completed major renovations at the Hilton Milwaukee, with all guest rooms returned to service, and expects limited impact on room sales moving forward [13][27] - The company is exploring opportunities for capital deployment to grow both business segments, with a history of executing on attractive investments [30][31] Q&A Session Summary Question: Can you separate the group pace between the Milwaukee area and outside of Milwaukee? - Management indicated that group pace gains are partly due to renovated meeting spaces and acknowledged the positive impact of the convention center expansion, but did not provide specific splits [34][36] Question: What is the size of the blockbuster surcharge being implemented? - Management mentioned that the everyday matinee pricing is moving from $7 to $7.50, with certain films priced at $8.50, indicating a cautious approach to pricing strategies [35][41] Question: What are the preliminary thoughts for the domestic box office going into the second half? - Management noted that while there are tough comparisons, there are strong films expected in the latter half of the year, making it difficult to predict box office performance [46][49] Question: How do you see the hotel segment revenue netting out for the current period? - Management highlighted strong banquet and catering business growth but noted lower margins, while the impact of the Hilton renovation is expected to ease in the second half [50][52] Question: What is the outlook for capital expenditures moving forward? - Management indicated a significant step down in capital expenditures is expected next year, with ongoing smaller projects but no major renovations like those recently completed [56][60]

Financial Data and Key Metrics Changes - Consolidated revenues for the first quarter were $148.8 million, an increase of $10.2 million or 7.4% compared to the prior year quarter, with revenue growth in both divisions [10] - Operating loss for the quarter was $20.4 million, a decline of $3.7 million compared to the prior year quarter [10] - Consolidated adjusted EBITDA for the first quarter was a loss of $0.3 million, a decrease of $2.6 million over the first quarter of fiscal 2024 [11] - Cash flow from operations was a use of cash of $35.3 million in the first quarter, compared to cash used by operations of $15.1 million in the prior year quarter [20] - Total capital expenditures during the first quarter were $23 million, compared to $15.4 million in the first quarter of fiscal 2024 [21] Business Line Data and Key Metrics Changes Theater Division - Total revenue for the first quarter was $87.4 million, an increase of 7.5% compared to the prior year first quarter [12] - Comparable theater admission revenue increased by 1.3% and comparable theater attendance increased by 6.9% compared to the prior year [12] - Theater division adjusted EBITDA was $3.7 million, compared to $6.2 million in the prior year quarter [17] Hotels and Resorts Division - Revenues were $61.3 million for the first quarter, an increase of 7.2% compared to the prior year [18] - RevPAR for comparable owned hotels grew by 1.1% during the first quarter, with an average daily rate (ADR) increase of 8% [18] - Hotels adjusted EBITDA increased by $1 million in the first quarter compared to the prior year quarter [20] Market Data and Key Metrics Changes - Comparable competitive hotels in the markets experienced RevPAR growth of 6.7% for the first quarter, indicating that the company's hotels underperformed the competitive set by 5.6 percentage points [19] - The upper upscale segment experienced an increase in RevPAR of 2.8% during the first quarter, indicating that the company's hotels underperformed the industry by 1.7 percentage points [19] Company Strategy and Development Direction - The company plans to maintain a focus on long-term value creation while managing short-term dynamics, with expectations for growth in both theater and hotel divisions [25] - The company is investing in enhancing customer experience through new ScreenX auditoriums and additional concession stands at Dine-in Movie Tavern locations [30][32] - The company is optimistic about the film slate for the rest of the year and into 2026, with several major franchises expected to perform well [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the first quarter did not meet expectations but expressed optimism for the summer movie season and the overall outlook for the year [25][26] - The company is prepared to react quickly to any economic uncertainties that may arise, leveraging its diversified business model [26][40] - Management emphasized the importance of attendance and customer experience, indicating a thoughtful approach to pricing in a potentially slowing economy [29][46] Other Important Information - The company repurchased approximately 424,000 shares of common stock for $7.1 million in cash during the quarter [23] - The Hilton Milwaukee renovation is progressing as planned, with 65% of the guest rooms completed and expected to be fully operational by June 30 [39] Q&A Session Summary Question: Impact of concessions per patron - Management indicated that the change in food and beverage per caps was primarily due to pricing, with no significant changes in incidence or basket size [45] Question: Ability to take price increases - Management expressed confidence in their ability to manage pricing, noting that they have successfully passed through price increases in the past [46] Question: Hilton Milwaukee renovation pricing strategy - Management views the renovation as an opportunity to hold or potentially increase prices, especially with the upcoming convention center demand [47][50] Question: Impact of Marcus Movie Club on ticket pricing - Management reported that the initial results of the subscription product are positive, but its impact is still minimal [56] Question: Group pace and market dynamics - Management noted that group business is performing well, particularly in recently renovated properties, and that bookings are solid across several markets [58] Question: Labor expense impact and staffing levels - Management indicated that higher labor costs were due to a return to normal operating hours and that there is room for improvement in labor efficiency [75][76]