Marcus Corporation (the) · NYSE:MCS
Marcus Corporation (the) — Q1 2025 Earnings Presentation
40 slides from Marcus Corporation (the)'s earnings presentation, May 6, 2025
Slide 1: Investor Presentation May 2025
INVESTOR PRESENTATION MAY 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 The Marcus Corporation bef
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 LTM REVENUES LTM ADJUSTED EBITDA 39% 36% Adjusted $745.8M $99.9M (1) Revenues* EBITDA 61% 64% MARKET CAP LTM ADJ. EBI
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 M. 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
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) 140.0 135.9 135.0 130.0 125.0 120.0 108.1 113.1 115.0 122.1 108.5 110.0 106.5 111.3 105.0 105.3 105.0 106.2 107.9 106.2 101.9 104.5 105.1 100.0 100.8 101.7 100.6 99.9 99.6 98.9 95.0 90.0 (2) 2019 2020 2021 2022 2023 2024 Q1 2025 RevPAR ADR
Slide 18: Favorable Growth Potential
FAVORABLE GROWTH POTENTIAL
Slide 19: Strong Demand for Out-of-Home Entertainment by All Generations
STRONG DEMAND FOR OUT-OF-HOME ENTERTAINMENT BY ALL GENERATIONS •Strong demand for blockbuster films, small of Americans 12-74 saw at and mid-sized films as well as event cinema 76% least one movie in the •Theatrical exhibition remains an important theatre in 2024.(1) component of studios’ business m
Slide 20: Growing and Stronger Film Slate in 2025
GROWING AND STRONGER FILM SLATE IN 2025 SECOND 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 Jumanji 3 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: Leisure & Group Travel Demand Remains Strong
LEISURE & GROUP TRAVEL DEMAND REMAINS STRONG Group demand continues to exceed 2024.(3) of global respondents plan 74% on taking 1-3 domestic trips in 2025.(1) Growing consumer preference for experiential destinations and lifestyle hotels 52% of Gen Z adults are already frequent travelers, on par wit
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
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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 • Quarterly cash dividend of $0.07 Annual Cash Dividends • Annual cash dividend was $0.68 prior to suspension on 4/29/20 (3-year average yield of 1.7%) $0.7 $0.64 $0.60 • 45 years of consecutive dividends $0.6 Post
Slide 31: Historical Results & Additional Information
HISTORICAL RESULTS & ADDITIONAL INFORMATION
Slide 32: Fiscal Year Change
FISCAL YEAR CHANGE • Beginning December 27, 2024, the Company’s fiscal year changed from a 52-53 week fiscal year ending on the last Thursday of each year to a fiscal year ending on December 31 of each year. • Accordingly, beginning in fiscal 2025, the Company’s quarterly results will be for three-m
Slide 33: First Quarter Fiscal 2025 Highlights
FIRST QUARTER FISCAL 2025 HIGHLIGHTS • Momentum building with several thrilling films coming soon • Attendance grew 6.9%, same store admission revenues up 1.3% and concession revenues per Revenues (1) Operating Loss Adjusted EBITDA person up 2.9% compared to Q1 24 • Top five highest- performing film
Slide 34: First Quarter Fiscal 2025 Highlights
FIRST QUARTER FISCAL 2025 HIGHLIGHTS • Revenues before cost reimbursements increased over the prior year quarter due to additional operating days and a stronger ski season at Grand Geneva Resort & Spa Revenues(1) Operating Income (2) Adjusted EBITDA $52.3M $(6.0)M $1.0M • RevPAR increased 1.1% at co
Slide 35: First Quarter Fiscal 2025 Results
FIRST QUARTER FISCAL 2025 RESULTS Revenues(1) Operating Loss Net Earnings (Loss) Adjusted EBITDA(2) (in millions) (in millions) (in millions) (in millions) $150 $148.8 $3 $2.3 $148 $0 Q1 2024 Q1 2025 $0 $2 $146 Q1 2024 Q1 2025 $144 -$5 -$2 $2 $142 -$4 -$10 $1 $140 $138.5 -$6 $138 $1 -$15 -$8 $136 $(
Slide 36: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE (6) 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 8.3% $729.6 $735.6 $745.8 4.6% 2.2% 1.7% $155.2 $677.4 1.2% $700
Slide 37: Historical Results by Segment (in millions)
HISTORICAL RESULTS BY SEGMENT (IN MILLIONS) Revenues(1) (in millions) Operating Income (Loss) (in millions) $800 $100 $10 $18 $18 $19 $18 $227 $77 $6 $600 $233 $248 $253 $0 $36 $22 $22 $236 $(28) $8 $400 $(121) $168 $556 -$100 $200 $408 $458 $446 $452 $88 $271 $(44) $132 -$200 $0 2019 2020 2021 2022
Slide 38: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Reconciliation of Net loss to Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended March 31, March 28, 2025 2024 Net loss $ (16,816) $ (11,866) Add (deduct): Investment income (74) (692) Interest expense 2,822 2,534 Other expense (income) 444 341 (Gain) Loss on dispo
Slide 39: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Reconciliation of Operating loss to Adjusted EBITDA by Reportable Segment (Unaudited) (In thousands) Three Months Ended March 31, 2025 Hotels & Corp. Theatres Resorts Items Total Operating loss $ (6,281) $ (6,044) $ (8,087) $ (20,412) Depreciation and amortization 10,706 6,73
Slide 40: Investor Presentation
INVESTOR PRESENTATION MAY 2025
Marcus Corporation (The) — Q1 2025 Earnings Presentation on 6ix