Marcus Corporation (the) · NYSE:MCS
Marcus Corporation (the) — Q4 2024 Earnings Presentation
38 slides from Marcus Corporation (the)'s earnings presentation, Feb 27, 2025
Slide 1: Investor Presentation February 2025
INVESTOR PRESENTATION FEBRUARY 2025
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT Certain matters discussed in this presentation are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Adjusted EBITDA has been presented in this presentation as a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. The company defines Adjusted EBITDA as net earnings (loss) attributable to Marcus Corporation before
Slide 4: Legacy of Leadership in Entertainment and Hospitality
LEGACY OF LEADERSHIP IN ENTERTAINMENT AND HOSPITALITY Founded in 1935 | Headquartered in Milwaukee FOURTH LARGEST US PORTFOLIO OF 16 EXHIBITOR DISTINCTIVE PROPERTIES LTM BY DIVISIONS FY 2024 REVENUES FY 2024 ADJUSTED EBITDA 38% 35% Adjusted $735.6M $102.4M (1) Revenues* EBITDA 62% 65% MARKET CAP FY
Slide 5: Long-Term Value Proposition
LONG-TERM VALUE PROPOSITION 1. 2. 3. Significant competitive Experienced History of advantages operators outperformance 4. 5. 6. Favorable growth Strong balance sheet Shareholder value potential and access to capital creation 5
Slide 6: Significant Competitive Advantages
SIGNIFICANT COMPETITIVE ADVANTAGES
Slide 7: Diversified Platform
DIVERSIFIED PLATFORM 985 78 17 Company-owned 7 9 Managed properties Screens Locations States properties for other owners Full screen preview Marcus Theatres by Location(1) Marcus Theatres by Screen(1) Full screen preview ND ND 2 MN 24 MN 8 103 NY NEARLY 60 YEARS OF HOTEL NY BRANDED AND INDEPENDENT W
Slide 8: Significant Real Estate Ownership
SIGNIFICANT REAL ESTATE OWNERSHIP Theatre Real Estate • Own 62% of movie theatres and seven 100% hotels • Reduces our monthly fixed lease 38% payments and enhances free cash flow 75% • Provides significant underlying credit support 50% 94% • Surplus real estate may be monetized if opportunities aris
Slide 9: High Quality Assets
HIGH QUALITY ASSETS Invested $620 million in our assets over the past decade Modernizing the movie-going experience with DreamLounger Reinvesting in existing award-winning properties to maintain and seating, PLF screens, expanded F&B offerings and more enhance their value while delivering memorable
Slide 10: Experienced Operators
EXPERIENCED OPERATORS
Slide 11: Proven Leadership Team
PROVEN LEADERSHIP TEAM GREGORY S. MARCUS THOMAS F. KISSINGER CHAD PARIS Chairman, President and Senior Executive Vice Chief Financial Officer Chief Executive Officer President, General Counsel & Treasurer Joined March 1992 and Secretary Joined October 2021 Joined August 1993 MARK A. GRAMZ MICHAEL R.
Slide 12: 90 Years of Entrepreneurship & Innovation
90 YEARS OF ENTREPRENEURSHIP & INNOVATION Founded by Ben Marcus in 1935 with an opening of a single movie Over more than 60 years, Marcus Hotels & Resorts has grown into a leading theatre in Ripon, Wisconsin. Today, Marcus Theatres’ facilities are nationwide hotel management company with deep expert
Slide 13: History of Outperformance
HISTORY OF OUTPERFORMANCE
Slide 14: Reinventing the Moviegoing Experience
REINVENTING THE MOVIEGOING EXPERIENCE Invested $390 million in new and existing assets over the last decade LUXURY RECLINER COMPELLING NEW VIEWING PLF SCREENS TECHNOLOGY SEATING FOOD & BEVERAGE EXPERIENCES • 69% of company-owned • Enhanced mobile ticketing • 86% of company-owned • 83% of company-own
Slide 15: Historically Strong Performance
HISTORICALLY STRONG PERFORMANCE Our investments in amenities and implementation of innovative operating and marketing strategies historically results in strong performance Box Office Recovery vs. 2019(1) Concessions Revenue per person Ticket Revenue per person YoY Growth YoY Growth 90% 81.3% 79.4% 7
Slide 16: Delivering the Best in Hospitality
DELIVERING THE BEST IN HOSPITALITY Invested $230 million to further enhance our properties over the last decade MARQUEE UNIQUE MEMORABLE OPERATIONAL RECOGNIZED PROPERTIES FOOD & BEVERAGE EXPERIENCES EXCELLENCE EXPERTISE • Develop our own F&B • Develop our own • Focus on creating superior • Own/manag
Slide 17: Historically Strong Performance
HISTORICALLY STRONG PERFORMANCE Marcus Owned Market Share(1) 140.0 135.9 135.0 130.0 125.0 120.0 108.1 113.1 115.0 122.1 108.5 110.0 106.5 111.3 105.0 105.3 105.0 106.2 107.9 106.2 104.5 105.1 100.0 101.7 100.6 99.9 99.6 95.0 90.0 (2) 2019 2020 2021 2022 2023 2024 RevPAR ADR Occupancy Fair Market Sh
Slide 18: Favorable Growth Potential
FAVORABLE GROWTH POTENTIAL
Slide 19: Strong Demand for Out-of-Home Entertainment
STRONG DEMAND FOR OUT-OF-HOME ENTERTAINMENT •Customers across all ages and audience types have shown continued preference for out-of-home entertainment experiences and the moviegoing experience •Strong demand for blockbuster films, small and mid-sized films as well as event cinema •Theatrical exhibi
Slide 20: Growing and Stronger Film Slate in 2025
GROWING AND STRONGER FILM SLATE IN 2025 SECOND QUARTER FIRST QUARTER THIRD QUARTER FOURTH QUARTER 20 * Film slate subject to change
Slide 21: Highly Anticipated Films Slated for 2026
HIGHLY ANTICIPATED FILMS SLATED FOR 2026 2026 The Odyssey Jumanji 3 Shrek 5 21 * Film slate subject to change
Slide 22: Strategic Growth Priorities
STRATEGIC GROWTH PRIORITIES MAXIMIZE ASSETS • Leveraging insights from Marcus Movie Rewards loyalty program • Optimizing pricing strategies • Further monetize lobby, screens, website and mobile app • Regularly upgrade and remodel theatres REINVENT MOVIEGOING EXPERIENCE • New membership programs (Mar
Slide 23: US Occupancy Continues to Increase
US OCCUPANCY CONTINUES TO INCREASE • Growing consumer preference for experiential destinations and lifestyle hotels • Group business continues to grow with more opportunities to capture • Business travel recovery continues • Hotel revenues have historically tracked closely with GDP • Wholly owned pr
Slide 24: Active Portfolio Management
ACTIVE PORTFOLIO MANAGEMENT The Lofton Hotel JV Acquisition The Pfister Hotel Renovation • Acquired Loews Minneapolis Hotel • $20 million extensive, state-of-the-art, through joint venture multi-phase renovation • Assumed management and rebranded as • Full revitalization of the ballrooms and The Lof
Slide 25: Strategic Priorities
STRATEGIC PRIORITIES COMMITMENT TO EXCELLENCE • Outperform in our markets • Capture growing group demand and grow ancillary revenues • Leverage F&B expertise to further distinguish from competition • Invest in HR and technology to drive labor efficiency • Improve customer interactions and service wi
Slide 26: Strong Balance Sheet and Access to Capital
STRONG BALANCE SHEET AND ACCESS TO CAPITAL
Slide 27: 90-Year History of Prudent Balance Sheet and Liquidity Management
90-YEAR HISTORY OF PRUDENT BALANCE SHEET AND LIQUIDITY MANAGEMENT • Approach has been and will remain Debt Ratios 50% 10 thoughtful, opportunistic and focused Debt/Capitalization % Net Debt to Adjusted EBITDA Ratio long-term 9 40% 8 • Match our debt portfolio to our asset 37% 37% base – fixed and lo
Slide 28: Shareholder Value Creation
SHAREHOLDER VALUE CREATION
Slide 29: Delivering Shareholder Value
DELIVERING SHAREHOLDER VALUE CAPITAL MANAGEMENT DIVESTITURE • Strong Free Cash Flow Generation EXPANSION • Sale of Selected Hotels (may • Share Repurchases REINVESTMENT retain management) THEATRES • Growing Dividend • Selected Theatre OPERATIONAL • Hotel Renovations • Acquisitions/New Builds Replace
Slide 30: Returning Capital to Shareholders
RETURNING CAPITAL TO SHAREHOLDERS • First major theatre company to reinstate dividend Annual Cash Dividends • Quarterly cash dividend of $0.07 • Annual cash dividend was $0.68 prior to suspension on 4/29/20 (3-year $0.7 $0.64 average yield of 1.7%) $0.6 $0.60 Post • 45 years of consecutive dividends
Slide 31: Historical Results & Additional Information
HISTORICAL RESULTS & ADDITIONAL INFORMATION
Slide 32: Fourth Quarter Fiscal 2024 Highlights (Theatres)
FOURTH QUARTER FISCAL 2024 HIGHLIGHTS • Significantly improved film slate for the holiday season • Same store admission revenues grew 15.4% and same store attendance was up 29.1% compared Revenues (1) Operating Income (2) Adjusted EBITDA to Q4 23 $120.5M $3.3M $23.7M • Top five highest- performing f
Slide 33: Fourth Quarter Fiscal 2024 Highlights (Hotels)
FOURTH QUARTER FISCAL 2024 HIGHLIGHTS • Record revenue and Adjusted EBITDA for FY2024 • Outperformed the industry by 1.4 percentage points • RevPAR increased 3.6% Revenues(1) Operating Income (2) Adjusted EBITDA at comparable company- $57.6M $0.5M $7.1M owned hotels compared to Q4 2023 • Group booki
Slide 34: Fiscal 2024 Fourth Quarter & Full Year Results
FISCAL 2024 FOURTH QUARTER & FULL YEAR RESULTS Revenues Operating Income (Loss)(1) Net Earnings (Loss)(2) Adjusted EBITDA(3) (in millions) (in millions) (in millions) (in millions) $800 $735.6 $120 $729.6 $108.7 $700 $40 $102.4 $33.9 $20 $100 $35 $600 $30 $14.8 $500 $80 $15 $25 $400 $20 $60 $16.2 $1
Slide 35: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE (5) Revenues Operating Income (Loss) Adjusted EBITDA (in millions) (in millions) (in millions) Operating Income % of Revenues Adjusted EBITDA Adjusted EBITDA Margin % $900 $820.9 $100 25% $200 25% $800 $735.6 8.3% $729.6 4.6% 2.2% $155.2 $677.4 1.2% $700 $50 $150 $68
Slide 36: Historical Results by Segment
HISTORICAL RESULTS BY SEGMENT (IN MILLIONS) Revenues(1) (in millions) Operating Income (Loss) (in millions) $800 $100 $10 $18 $19 $18 $227 $77 $6 $600 $233 $248 $36 $22 $236 $0 $(28) $8 $400 $(121) $168 $556 -$100 $200 $408 $458 $446 $88 $(44) $271 $132 $0 -$200 2019 2020 2021 2022 2023 2024 2019 20
Slide 37: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Reconciliation of Net earnings (loss) to Adjusted EBITDA (Unaudited) (In thousands) 13 Weeks Ended 52 Weeks Ended December 26, December 28, December 26, December 28, 2024 2023 2024 2023 Net earnings (loss) $ 986 $ (1,440) $ (7,787) $ 14,794 Add (deduct): Investment (income) l
Slide 38: Non-GAAP Reconciliation by Segment
NON-GAAP RECONCILIATION Reconciliation of Operating income (loss) to Adjusted EBITDA by Reportable Segment (Unaudited) (In thousands) 13 Weeks Ended December 26, 2024 52 Weeks Ended December 26, 2024 Hotels & Corp. Hotels & Corp. Theatres Resorts Items Total Theatres Resorts Items Total Operating in
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