Marcus Corporation (the) · NYSE:MCS
Marcus Corporation (the) — The Marcus — Shareholder Meeting (May 2022)
67 slides from Marcus Corporation (the)'s shareholder meeting presentation, May 10, 2022
Slide 1: Annual Shareholders' Meeting May 10, 2022
ANNUAL SHAREHOLDERS’ MEETING MAY 10, 2022
Slide 2: Gregory S. Marcus, President and CEO
Gregory S. Marcus President and CEO, The Marcus Corporation 2
Slide 3: Thomas F. Kissinger, General Counsel and Secretary
Thomas F. Kissinger Senior Executive Vice President, General Counsel and Secretary, The Marcus Corporation 3
Slide 4: Douglas A. Neis, Chief Financial Officer
Douglas A. Neis Executive Vice President and Chief Financial Officer, The Marcus Corporation 4
Slide 5: Rolando B. Rodriguez, Marcus Theatres
Rolando B. Rodriguez Executive Vice President, The Marcus Corporation Chairman, President and CEO, Marcus Theatres 5
Slide 6: Michael R. Evans, Marcus Hotels & Resorts
Michael R. Evans President, Marcus Hotels & Resorts 6
Slide 7: Kim M. Lueck, Chief Information Officer
Kim M. Lueck Chief Information Officer, The Marcus Corporation 7
Slide 8: Steven V. Martin, Chief Human Resources Officer
Steven V. Martin Chief Human Resources Officer, The Marcus Corporation 8
Slide 9: Chad M. Paris, Corporate Controller & Treasurer
Chad M. Paris Corporate Controller & Treasurer, The Marcus Corporation 9
Slide 10: Business Meeting
Business Meeting
Slide 11: 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 12: Board of Directors
Board of Directors
Slide 13: Gregory S. Marcus, President and CEO
Gregory S. Marcus President and CEO, The Marcus Corporation 13
Slide 14: Diane Marcus Gershowitz
Diane Marcus Gershowitz Real Estate Management and Investments 14
Slide 15: Timothy E. Hoeksema
Timothy E. Hoeksema Retired Chairman, President & CEO, Midwest Air Group, Inc. 15
Slide 16: Allan H. (Bud) Selig
Allan H. (Bud) Selig Commissioner Emeritus, Major League Baseball 16
Slide 17: Bruce J. Olson
Bruce J. Olson Retired Senior Vice President, The Marcus Corporation Retired President, Marcus Theatres 17
Slide 18: Philip L. Milstein
Philip L. Milstein Principal, Ogden CAP Properties, LLC 18
Slide 19: Brian J. Stark
Brian J. Stark Former Founding Principal, Chief Executive Officer and Chief Investment Officer, Stark Investments 19
Slide 20: Katherine M. Gehl
Katherine M. Gehl Former President and CEO, Gehl Foods, Inc. 20
Slide 21: David M. Baum
David M. Baum President, Baum Media Group, LLC Former Partner, Goldman Sachs & Co. 21
Slide 22: Board of Directors
Board of Directors
Slide 23: Compensation of Named Executives
Compensation of Named Executives
Slide 24: Selection of Independent Registered Public Account Firm
Selection of Independent Registered Public Account Firm
Slide 25: Business Meeting
Business Meeting
Slide 26: Annual Shareholders' Meeting May 10, 2022
ANNUAL SHAREHOLDERS’ MEETING MAY 10, 2022
Slide 27: Associates are Our Greatest Assets
Associates are Our Greatest Assets 27
Slide 28: What a Difference a Year Makes!
What a Difference a Year Makes! Revenues Adjusted EBITDA (in millions) (in millions) $200 $169.1 $40 $35.1 $145.9 $20 $150 $0 2020 2021 $100 $92.6 -$20 $50.8 -$40 $50 -$60 -$80 $(76.1) $0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 28
Slide 29: Strong Foundation from Which to Rebuild
Strong Foundation from Which to Rebuild • Strong balance sheet • Significant real estate holdings • Diversified business portfolio 29
Slide 30: Success in 2021 Builds Optimism
Success in 2021 Builds Optimism 30
Slide 31: Annual Shareholders' Meeting May 10, 2022
ANNUAL SHAREHOLDERS’ MEETING MAY 10, 2022
Slide 32: Welcome to Movie Tavern Brookfield Square!
Welcome to Movie Tavern Brookfield Square! 32
Slide 33: Thank You to Our Associates
Thank You to Our Associates 33
Slide 34: 2021 Year-in-Review
34 2021 Year-in-Review THE BIG SCREEN IS BACK
Slide 35: 2021: A Tale of Two Halves
2021: A Tale of Two Halves of theatres open in January of theatres open by the end of of current theatres open by the 2021 Q2 2021 end of Q3 2021 35
Slide 36: Return of Blockbuster Hits
Return of Blockbuster Hits 36
Slide 37: Outperformed the Industry
Outperformed the Industry • Significantly outperformed the industry by 5.6 percentage points during fiscal 2021 • Marcus Theatres continues to be one of the top performing theatre circuits in the U.S. 37
Slide 38: Enhancing Technology to Improve the Customer Experience
Enhancing Technology to Improve the Customer Experience 38
Slide 39: Continuously Evolving
Continuously Evolving • Maximize and leverage current assets • Reinvent out-of-home entertainment experience • Strategic growth 39 Invested over the past eight years
Slide 40: Q1 2022 Film Highlights
Q1 2022 Film Highlights All the top 5 films in Q1 2021 debuted with an exclusive theatrical window 40
Slide 41: Looking Ahead
Looking Ahead AVATAR
Slide 42: Thank you!
42 Thank you!
Slide 43: Annual Shareholders' Meeting May 10, 2022
ANNUAL SHAREHOLDERS’ MEETING MAY 10, 2022
Slide 44: Continued Outperformance
Continued Outperformance • Significantly outperformed the industry by 9.6 percentage points during fiscal 2021 • Outperformed its competitive sets by 6.9 percentage points during fiscal 2021 44
Slide 45: Best in the Business
Best in the Business h—_ ‘Condé Nast Tass READERS’ CHOICE AWARDS ~ 2021_ SSA USATODAY 2021 ® (foun Dani GYWV (oud
Slide 46: Expansive Offerings
Expansive Offerings Grand Geneva Resort & Spa The Pfister Hotel Lake Geneva, WI Milwaukee, WI Hilton Milwaukee City Center Saint Kate – The Arts Hotel 46 Milwaukee, WI Milwaukee, WI
Slide 47: Flight to Quality
Flight to Quality 47
Slide 48: Improving Group Bookings
Improving Group Bookings 48
Slide 49: Expanding Our Footprint
Expanding Our Footprint Hyatt Regency Coralville Hotel & Conference Center Coralville, IA Kimpton Hotel Monaco Pittsburgh Pittsburgh, PA 49
Slide 50: Unwavering Excellence
Unwavering Excellence • Strategically grow our portfolio • Strengthen F&B expertise • Leverage technology • Reinvest in our properties Grand Geneva Resort & Spa Lake Geneva, WI • Continue to be financially disciplined while maintaining excellence 50
Slide 51: Looking Ahead
Looking Ahead 51
Slide 52: Annual Shareholders' Meeting May 10, 2022
ANNUAL SHAREHOLDERS’ MEETING MAY 10, 2022
Slide 53: Fiscal 2021 Results
Fiscal 2021 Results Revenues Operating Loss (in millions) (in millions) $500 $458.2 $0 2020 2021 $400 -$50 $(41.5) $300 $237.7 -$100 $200 $100 -$150 $0 -$200 $(178.4) 2020 2021 53
Slide 54: Fiscal 2021 Results
Fiscal 2021 Results Net Loss Net Loss Per Share Adjusted EBITDA (in millions) (in millions) (in millions) $0 $0 2020 2021 $40 $35.1 2020 2021 -$1 $20 -$50 $(43.3) $(1.42) $0 -$2 -$100 2020 2021 -$20 -$3 $(124.8) -$40 -$150 -$4 -$60 -$200 $(4.13) -$5 -$80 $(76.1) 54
Slide 55: Strong Balance Sheet
Strong Balance Sheet 50% Debt Ratios 10 9 40% 40% 8 37% 37% $239.1 million 33% 7 30% 6 26% 5 in cash and revolving credit availability as of December 30, 2021 20% 4 3 10% 2 1 0% 0 12/28/2017 12/27/2018 12/26/2019 12/31/2020 12/30/2021 55
Slide 56: Ample Liquidity
Ample Liquidity • Amended Credit Agreement in July 2021 and made an early payment, reducing the balance of the facility to $50 million and extending maturity date to September 2022 • Received remaining tax refunds and state government grants • Realized over $22 million in asset sale proceeds in fisc
Slide 57: Marcus Theatres Fiscal 2021 Results
Marcus Theatres Fiscal 2021 Results • Positive Adjusted EBITDA for full year of fiscal 2021 • Reported positive net earnings in Q4 of fiscal 2021 • Continued to outperform the industry 57
Slide 58: Marcus Hotels & Resorts Fiscal 2021 Results
Marcus Hotels & Resorts Fiscal 2021 Results • Returned to profitability during fiscal 2021 • RevPAR increased at all company-owned properties during fiscal 2021 • Reported positive Adjusted EBITDA for fiscal 2021 • Continued to outperform the industry 58
Slide 59: First Quarter Fiscal 2022 Results
First Quarter Fiscal 2022 Results
Slide 60: First Quarter 2022 Overview
First Quarter 2022 Overview Revenues Operating Loss Net Loss Adjusted EBITDA (in millions) (in millions) (in millions) (in millions) $150 $0 $0 $10 $132.2 Q1 2021 Q1 2022 Q1 2021 Q1 2022 $3.4 -$10 -$10 $100 $0 $(14.9) -$20 $(16.8) -$20 Q1 2021 Q1 2022 $50.8 $50 -$30 -$30 $(28.1) -$10 -$40 $(35.7) -$
Slide 61: Division Highlights
Division Highlights • Both divisions again outperformed their perspective industries • Theatres realized increased attendance and revenue per person compared to first quarter of fiscal 2021 • Comparable hotels total revenues for first quarter of fiscal 2022 were approximately 91% of the first quarte
Slide 62: Annual Shareholders' Meeting May 10, 2022
ANNUAL SHAREHOLDERS’ MEETING MAY 10, 2022
Slide 63: Thank you, Doug!
Thank you, Doug! 63
Slide 64: Enjoy a Movie!
Enjoy a Movie! —— THE JUNGLE ISN'T READY FOR COE wane STIS Docton Smit MULTIVERSE OF MADNESS MAY IN CINEMAS APRIL 14
Slide 65: Shareholder Comments & Questions
Shareholder Comments & Questions
Slide 66: Thank You Gift
Thank You Gift
Slide 67: Annual Shareholders' Meeting May 10, 2022
ANNUAL SHAREHOLDERS’ MEETING MAY 10, 2022