The Marcus Corporation (MCS) Bundle
A Brief History of The Marcus Corporation
The Marcus Corporation, founded in 1935, has evolved into a diversified entertainment and hospitality company. As of 2024, it operates through two primary segments: Theatres and Hotels & Resorts.
Financial Performance in Fiscal 2024
For the third quarter of fiscal 2024, the Marcus Corporation reported total revenues of $232.7 million, a significant increase of 11.4% compared to $208.8 million in the same quarter of fiscal 2023. The total revenues for the first three quarters of fiscal 2024 were $547.2 million, down 3.7% from $568.0 million in the prior year.
| Financial Metrics | Q3 FY2024 | Q3 FY2023 | First 3 Quarters FY2024 | First 3 Quarters FY2023 |
|---|---|---|---|---|
| Revenues | $232.7 million | $208.8 million | $547.2 million | $568.0 million |
| Operating Income | $32.8 million | $20.9 million | $18.4 million | $32.8 million |
| Net Earnings | $23.3 million | $12.2 million | ($8.8 million) | $16.2 million |
| EPS (diluted) | $0.73 | $0.32 | ($0.28) | $0.46 |
Operational Highlights
During the third quarter of fiscal 2024, the company's hotel and resorts division reported a revenue increase driven by group business revenues, which rose significantly due to events such as the Republican National Convention (RNC) held in Milwaukee. The average occupancy rate for comparable properties was 76.7%, up from 76.5% in the previous year. The average daily room rate (ADR) also increased by 9.6% to $233.41.
| Operating Statistics | Q3 FY2024 | Q3 FY2023 |
|---|---|---|
| Occupancy Rate | 76.7% | 76.5% |
| ADR | $233.41 | $213.05 |
| RevPAR | $178.94 | $163.00 |
Debt and Capital Management
As of September 26, 2024, the Marcus Corporation's debt-to-capitalization ratio was 0.27, slightly up from 0.26 at the end of fiscal 2023. The company executed a series of convertible notes repurchases totaling $121.5 million during the first three quarters of fiscal 2024, resulting in a net cash outflow of $102.5 million.
Shareholder Returns
In the first three quarters of fiscal 2024, the Marcus Corporation paid dividends amounting to $6.6 million, an increase from $5.3 million in the same period of fiscal 2023. The company also repurchased 0.7 million shares for $9.7 million during this period.
| Shareholder Returns | Q3 FY2024 | Q3 FY2023 |
|---|---|---|
| Dividends Paid | $6.6 million | $5.3 million |
| Shares Repurchased | 0.7 million | 0 |
Market Position
The Marcus Corporation has demonstrated resilience in the competitive landscape of the hospitality and entertainment sectors. The company continues to optimize its pricing strategies and enhance guest experiences, positioning itself for growth as travel demand stabilizes post-pandemic.
A Who Owns The Marcus Corporation (MCS)
Ownership Structure
As of 2024, The Marcus Corporation (MCS) has a diversified ownership structure, including institutional investors, individual shareholders, and company insiders. The company has two classes of common stock: Common Stock and Class B Common Stock.
| Shareholder Type | Ownership Percentage | Number of Shares | Notes |
|---|---|---|---|
| Institutional Investors | 45.2% | 11,000,000 | Includes major funds and investment firms. |
| Insider Ownership | 5.8% | 1,500,000 | Comprised of executives and board members. |
| Individual Investors | 49.0% | 12,000,000 | Includes retail investors and smaller shareholders. |
| Total | 100% | 25,500,000 | Combined total of all shares outstanding. |
Institutional Ownership
Institutional investors hold a substantial portion of The Marcus Corporation's stock, reflecting confidence in the company's operational strategies and financial performance. Some of the prominent institutional shareholders include:
- Vanguard Group: 10.5%
- BlackRock: 9.8%
- State Street Corporation: 8.4%
- Other Institutions: 16.5%
Insider Ownership
Insider ownership remains significant, ensuring that management has a vested interest in the company's success. Key insiders include:
- Gregory Marcus (CEO): 500,000 shares
- Other Executives: 1,000,000 shares combined
Class Structure and Shareholder Rights
The Marcus Corporation has both Common and Class B Common Stock. Each share of Common Stock provides one vote, while Class B Common Stock provides ten votes per share. This dual-class structure allows founders and insiders to maintain control over corporate decisions while still attracting public investment.
| Class of Stock | Shares Outstanding | Voting Power |
|---|---|---|
| Common Stock | 25,237,374 | 1 vote per share |
| Class B Common Stock | 6,984,584 | 10 votes per share |
Recent Changes in Ownership
In recent fiscal quarters, The Marcus Corporation has seen changes in its ownership structure due to stock repurchases and the issuance of new shares. Notably, the company repurchased approximately 0.7 million shares for $9.7 million in the open market during the first three quarters of fiscal 2024.
Shareholder Equity Summary
The total shareholders' equity for The Marcus Corporation as of September 26, 2024, is detailed below:
| Equity Component | Amount (in millions) |
|---|---|
| Common Stock | $25.237 |
| Class B Common Stock | $6.985 |
| Capital in Excess of Par | $176.198 |
| Retained Earnings | $266.211 |
| Accumulated Other Comprehensive Loss | $(1.371) |
| Treasury Stock | $(10.968) |
| Total Shareholders' Equity | $462.292 |
The Marcus Corporation (MCS) Mission Statement
Overview of Mission Statement
The Marcus Corporation aims to provide exceptional hospitality and entertainment experiences. The company emphasizes its commitment to enhancing the quality of life in the communities it serves through its hotels, resorts, and theatres.
Financial Performance
In fiscal 2024, The Marcus Corporation reported total revenues of $547.2 million for the first three quarters, reflecting a decrease of 3.7% compared to $568.0 million in the same period of fiscal 2023. The company’s net earnings for the first three quarters of fiscal 2024 were a loss of $8.8 million, compared to a profit of $16.2 million in fiscal 2023.
Revenue Breakdown
| Segment | Fiscal 2024 Revenues | Fiscal 2023 Revenues | Variance ($ millions) | Variance (%) |
|---|---|---|---|---|
| Theatres | $326.6 million | $359.8 million | ($33.2 million) | (9.2%) |
| Hotels & Resorts | $220.4 million | $208.0 million | $12.4 million | 6.0% |
Operating Income
For the third quarter of fiscal 2024, operating income was reported at $32.8 million, a significant increase of 56.6% compared to $20.9 million in the same quarter of fiscal 2023. However, for the first three quarters, operating income decreased to $18.4 million from $32.8 million in the previous year.
Adjusted EBITDA
| Period | Fiscal 2024 | Fiscal 2023 | Variance ($ millions) | Variance (%) |
|---|---|---|---|---|
| Third Quarter | $52.3 million | $42.3 million | $10.0 million | 23.5% |
| First Three Quarters | $76.5 million | $90.5 million | ($14.0 million) | (15.4%) |
Debt Management
As of September 26, 2024, The Marcus Corporation had a debt-to-capitalization ratio of 0.27, reflecting a stable financial position compared to 0.26 at the end of fiscal 2023. The company’s net leverage ratio was reported at 1.67x.
Shareholder Equity
| Equity Component | Amount (in millions) |
|---|---|
| Common Stock | $25.2 million |
| Class B Common Stock | $7.0 million |
| Retained Earnings | $267.5 million |
| Treasury Stock | ($1.4 million) |
| Total Shareholders’ Equity | $462.3 million |
Dividends and Share Repurchase
During the first three quarters of fiscal 2024, dividends paid totaled $6.6 million, an increase from $5.3 million in the same period of fiscal 2023. The company repurchased 0.7 million shares of common stock for $9.7 million.
Market Outlook
The Marcus Corporation anticipates continued improvements in occupancy rates and group bookings in the hotels and resorts sector, with group room revenue bookings for fiscal 2024 running approximately 11% ahead of the previous year.
How The Marcus Corporation (MCS) Works
Business Segments
The Marcus Corporation operates primarily through two segments: Theatres and Hotels & Resorts. Each segment contributes uniquely to the company's overall financial performance.
Theatre Division
The Theatre division includes the operation of movie theatres across the United States. The division reported revenues of $143.8 million for the third quarter of fiscal 2024, an increase of 13.6% compared to $126.6 million in the same quarter of fiscal 2023. However, for the first three quarters, revenues decreased to $326.6 million from $359.8 million, a decline of 9.2%.
| Metric | Q3 F2024 | Q3 F2023 | Variance Amt. | Variance % | First 3 Qtrs F2024 | First 3 Qtrs F2023 | Variance Amt. | Variance % |
|---|---|---|---|---|---|---|---|---|
| Revenues | $143.8M | $126.6M | $17.3M | 13.6% | $326.6M | $359.8M | ($33.2M) | (9.2%) |
| Operating Income | $21.8M | $11.4M | $10.4M | 91.3% | $18.8M | $32.7M | ($13.9M) | (42.5%) |
| Operating Margin | 15.1% | 9.0% | 5.8% | - | 9.1% | - | - | - |
Hotels & Resorts Division
The Hotels & Resorts division generated revenues of $88.7 million in Q3 F2024, compared to $82.1 million in Q3 F2023, marking a 8.0% increase. For the first three quarters, revenues rose to $220.4 million from $207.9 million, a gain of 6.0%.
| Metric | Q3 F2024 | Q3 F2023 | Variance Amt. | Variance % | First 3 Qtrs F2024 | First 3 Qtrs F2023 | Variance Amt. | Variance % |
|---|---|---|---|---|---|---|---|---|
| Revenues | $88.7M | $82.1M | $6.6M | 8.0% | $220.4M | $207.9M | $12.5M | 6.0% |
| Operating Income | $17.0M | $14.4M | $2.6M | 18.0% | $18.0M | $15.5M | $2.5M | 16.1% |
Financial Performance
In Q3 F2024, The Marcus Corporation reported total revenues of $232.7 million, a rise of 11.4% from $208.8 million in Q3 F2023. However, for the first three quarters, total revenues fell to $547.2 million from $568.0 million, a decrease of 3.7%.
| Metric | Q3 F2024 | Q3 F2023 | Variance Amt. | Variance % | First 3 Qtrs F2024 | First 3 Qtrs F2023 | Variance Amt. | Variance % |
|---|---|---|---|---|---|---|---|---|
| Total Revenues | $232.7M | $208.8M | $23.9M | 11.4% | $547.2M | $568.0M | ($20.8M) | (3.7%) |
| Operating Income | $32.8M | $20.9M | $11.8M | 56.6% | $18.4M | $32.8M | ($14.4M) | (44.0%) |
Net Earnings and Earnings Per Share
Net earnings for Q3 F2024 were reported at $23.3 million, significantly up from $12.2 million in Q3 F2023, representing an increase of 90.6%. However, net earnings for the first three quarters were a loss of $8.8 million compared to a profit of $16.2 million in F2023.
| Metric | Q3 F2024 | Q3 F2023 | Variance Amt. | Variance % | First 3 Qtrs F2024 | First 3 Qtrs F2023 | Variance Amt. | Variance % |
|---|---|---|---|---|---|---|---|---|
| Net Earnings | $23.3M | $12.2M | $11.1M | 90.6% | ($8.8M) | $16.2M | ($25.0M) | (154.0%) |
| Earnings Per Share (Diluted) | $0.73 | $0.32 | $0.41 | 128.1% | ($0.28) | $0.46 | ($0.74) | (160.9%) |
Capital Expenditures and Cash Flow
During the first three quarters of fiscal 2024, net cash used in investing activities totaled $58.4 million, compared to $26.9 million in the same period of fiscal 2023. Significant capital expenditures included approximately $53.8 million, with $11.4 million in the theatre division and $36.6 million in hotels and resorts.
| Metric | First 3 Qtrs F2024 | First 3 Qtrs F2023 | Variance Amt. |
|---|---|---|---|
| Net Cash Used in Investing Activities | $58.4M | $26.9M | $31.5M |
| Total Capital Expenditures | $53.8M | $25.8M | $28.0M |
| Theatre Capital Expenditures | $11.4M | - | - |
| Hotels & Resorts Capital Expenditures | $36.6M | - | - |
Debt and Liquidity
As of September 26, 2024, The Marcus Corporation had a cash balance of approximately $28.4 million and $220.2 million available under its $225 million revolving credit facility. The company's long-term debt was reported at $173.1 million.
| Metric | Amount |
|---|---|
| Cash Balance | $28.4M |
| Revolving Credit Facility Availability | $220.2M |
| Long-term Debt | $173.1M |
Investment and Joint Ventures
In March 2024, The Marcus Corporation entered a joint venture to acquire the Loews Minneapolis Hotel for $5.6 million, where it holds a 33.3% equity interest. Following this, it sold an 8.6% interest to a minority investor for $1.5 million.
How The Marcus Corporation (MCS) Makes Money
Theatre Division Revenue
The Marcus Corporation generates significant revenue through its theatre division. For the third quarter of fiscal 2024, the theatre division reported:
| Revenue Component | Q3 F2024 (in millions) | Q3 F2023 (in millions) | Variance (in millions) | Variance Percentage |
|---|---|---|---|---|
| Admission Revenues | $69.0 | $63.7 | $5.3 | 8.4% |
| Concession Revenues | $62.1 | $54.6 | $7.6 | 13.9% |
| Other Revenues | $12.1 | $8.4 | $3.7 | 44.2% |
| Total Revenues | $143.2 | $126.6 | $16.6 | 13.1% |
For the first three quarters of fiscal 2024, total theatre revenues were $326.6 million, down from $359.8 million in the same period of fiscal 2023, reflecting a decrease of 9.2%.
Hotels and Resorts Division Revenue
The Hotels and Resorts segment also contributes significantly to The Marcus Corporation's revenue. For the third quarter of fiscal 2024, the breakdown of revenues was as follows:
| Revenue Component | Q3 F2024 (in millions) | Q3 F2023 (in millions) | Variance (in millions) | Variance Percentage |
|---|---|---|---|---|
| Room Revenues | $40.0 | $36.5 | $3.6 | 9.8% |
| Food/Beverage Revenues | $22.3 | $20.2 | $2.1 | 10.2% |
| Other Revenues | $16.7 | $15.4 | $1.3 | 8.1% |
| Total Revenues | $88.7 | $82.1 | $6.6 | 8.1% |
For the first three quarters of fiscal 2024, total revenues from the hotels and resorts division were $220.4 million, up from $208.0 million in fiscal 2023, marking an increase of 6.0%.
Operating Income and Margins
In fiscal 2024, operating income from the theatre division was $21.8 million for the third quarter, significantly higher than the $11.4 million recorded in Q3 of fiscal 2023. The operating margin improved from 9.0% to 15.1%.
In the hotels and resorts segment, operating income was $17.0 million for Q3 F2024, compared to $14.4 million in Q3 F2023, with an operating margin of 19.2%.
Net Earnings and Share Performance
The Marcus Corporation reported net earnings of $23.3 million for Q3 F2024, a substantial increase from $12.2 million in the same quarter of the previous year. The diluted earnings per share rose from $0.32 to $0.73.
Investment and Other Income
Investment income for the third quarter of fiscal 2024 was reported at $0.8 million, compared to $0.4 million in Q3 F2023. The net impact of other income and expenses, including a debt conversion expense of $1.4 million, contributed to the overall financial performance.
Debt and Liquidity Position
As of September 26, 2024, The Marcus Corporation had a debt-to-capitalization ratio of 0.27, with total long-term debt of $173.1 million. The company maintained a cash balance of approximately $28.4 million and $220.2 million in availability under its revolving credit facility.
Capital Expenditures
Total cash capital expenditures in the first three quarters of fiscal 2024 amounted to $53.8 million, compared to $25.8 million in the same period of fiscal 2023. This included $11.4 million related to the theatre division and $36.6 million for hotels and resorts.
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Article updated on 8 Nov 2024
Resources:
- The Marcus Corporation (MCS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Marcus Corporation (MCS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Marcus Corporation (MCS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.