-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EOwN4kEHg34Rl0naRSIO9haNgRckKgRwrO76icUK8+8Qk3foRlR9yEPIKD1bRNk7 fSAfaVFZ/fpnPsbE0L4TBQ== 0000897069-03-001056.txt : 20030918 0000897069-03-001056.hdr.sgml : 20030918 20030918130925 ACCESSION NUMBER: 0000897069-03-001056 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030918 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030918 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARCUS CORP CENTRAL INDEX KEY: 0000062234 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 391139844 STATE OF INCORPORATION: WI FISCAL YEAR END: 0527 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12604 FILM NUMBER: 03900983 BUSINESS ADDRESS: STREET 1: 100 EAST WISCONSIN AVENUE STREET 2: SUITE 1900 CITY: MILWAUKEE STATE: WI ZIP: 53202-4125 BUSINESS PHONE: 4142726020 MAIL ADDRESS: STREET 1: 100 EAST WISCONSIN AVENUE STREET 2: SUITE 1900 CITY: MILWAUKEE STATE: WI ZIP: 53202-4125 8-K 1 cmw166.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 _______________________ Date of Report (Date of earliest event reported): September 18, 2003 THE MARCUS CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Wisconsin 1-12609 39-1139844 --------------- ----------- ------------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 100 East Wisconsin Avenue, Suite 1900, Milwaukee, WI 53202-4125 --------------------------------------------------------------- (Address of principal executive offices, including zip code) (414) 905-1000 ------------------------------- (Registrant's telephone number) Item 7. Financial Statements and Exhibits. - ------- ---------------------------------- (a) Not applicable. (b) Not applicable. (c) Exhibits. The following exhibit is being filed herewith: (99.1) The Marcus Corporation press release, dated September 18, 2003, regarding its first quarter financial results. Item 9. Regulation FD Disclosure. - ------- -------------------------- On September 18, 2003, The Marcus Corporation issued a press release announcing its financial results for the first quarter ended August 28, 2003. A copy of the company's press release is being furnished as Exhibit 99.1. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE MARCUS CORPORATION Date: September 18, 2003 By: /s/ Douglas A. Neis ---------------------------------------- Douglas A. Neis Chief Financial Officer and Treasurer EX-99.1 3 cmw166a.txt PRESS RELEASE For additional information, contact: Douglas A. Neis (414) 905-1100 THE MARCUS CORPORATION REPORTS FIRST QUARTER RESULTS ---------------------------------------------------- Earnings from Continuing Operations Up 4.6%; Marcus Theatres(R) Again Achieves Record Results Milwaukee, Wis., September 18, 2003.....The Marcus Corporation (NYSE: MCS) today reported increased revenues and earnings from continuing operations for the first quarter ended August 28, 2003. Total revenues for the first quarter of fiscal 2004 were $120,795,000, a 1.0% increase from revenues of $119,577,000 for the first quarter of the prior year. Operating income for the first quarter of fiscal 2004 increased 1.9% to $25,641,000, from operating income of $25,155,000 for the comparable prior period. Earnings from continuing operations and net earnings were $12,945,000 or $0.44 per diluted share for the first quarter of fiscal 2004, a 4.6% increase in earnings from continuing operations from $12,371,000 or $0.42 per diluted share for the first quarter of the prior year. Net earnings of $13,587,000 or $0.46 per diluted share for the first quarter of fiscal 2003 included an additional gain on the sale of the company's former KFC restaurants. Continuing operations include The Marcus Corporation's theatre, limited-service lodging and hotels and resorts divisions. "We are pleased that we were able to increase earnings from continuing operations during a period that continued to be challenging for our two lodging divisions. Our diversity once again proved to be an asset, with Marcus Theatres(R) achieving record results for the quarter," said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation. Marcus Theatres reported record revenues and operating income for the first quarter. "The summer movie season was a little like a roller coaster. We started the summer with two great weeks, went through nine weeks of generally underperforming film product, and then finished the quarter with another two comparatively stronger weeks. In the end, solid hits such as Finding Nemo and Pirates of the Caribbean led the way to another record quarter," said Marcus. Marcus said the fall and holiday movie line-ups appear strong, with Runaway Jury and Intolerable Cruelty opening in October and The Matrix Revolutions, Master and Commander, Looney Tunes: Back in Action -more- Page 2 and Dr. Seuss' The Cat in the Hat opening in November. Anticipated hits during the upcoming holiday season include The Haunted Mansion and the third installment of Lord of the Rings. "With a broad variety of movies in the pipeline, we are very optimistic about the continued strong performance of our theatre division," said Marcus. He noted that four new screens under construction at the Marcus Cinema in Menomonee Falls, Wisconsin, are scheduled to open in time for the busy holiday season, increasing this theatre to 16 screens. In addition, the company's fourth UltraScreen(TM) now under construction in Elgin, Illinois, is scheduled to open late in the third quarter of fiscal 2004. The division is also overseeing the construction of a new six-screen theatre in Tomah, Wisconsin, which it will manage for the Ho-Chunk Indian Nation under a long-term contract. "On the lodging side of our business, we are encouraged by recent signs of improvement in the economy. Although our overall performance during the first quarter continued to be affected by the downturn in business travel, we were able to show a slight improvement in our revenue per available room (RevPAR) in both divisions, and that is a very positive development, particularly in this challenging environment," said Marcus. "Revenues and operating income for our limited-service lodging division for the first quarter were below the levels for the same period in the prior fiscal year, due in part to slightly lower results from our Woodfield Suites properties and one fewer company-owned Baymont Inn. We remain in a very competitive pricing environment, but we were pleased that the summer ended stronger than it began, which we hope is an indication of continued improvement in demand in the coming months. A bright spot is that our Baymont Inns & Suites increased occupancy and market share for the fifth straight quarter. RevPAR was up 0.8% for the quarter, again outperforming our competitive set in our markets," said Marcus. "On October 1, we will expand to the West Coast with the opening of our first Baymont Inn & Suites in Ontario, California. This property will establish our presence in the greater Los Angeles market and begin to build brand awareness for Baymont Inns in the nation's second largest market," said Marcus. Marcus Hotels and Resorts reported slightly increased revenues and flat operating income for the first quarter. RevPAR increased 0.8% in the first quarter. "Excluding our timeshare development in Lake Geneva, Wisconsin, first quarter operating income for the division would have been up nearly 4% over the prior year," said Marcus. -more- Page 3 Marcus added that construction has started on a new destination spa at the company's Miramonte Resort in Indian Wells, California. "The new spa will further enhance the Miramonte's amenities and expand its appeal in the Palm Springs market," said Marcus. He noted that second quarter results for both of the company's lodging divisions got off to a strong start due to the Harley-Davidson 100th Anniversary Celebration in Milwaukee. "The celebration had a significant impact on all of our Milwaukee-area properties," said Marcus. "We continue to believe that our lodging divisions are well-positioned to benefit as the economy improves and our markets rebound." Marcus Corporation management will host a conference call today, September 18, 2003, at 3:00 p.m. Central/4:00 p.m. Eastern time to discuss the first quarter results. Interested parties can listen to the call live on the Internet through the investor relations section of the company's Web site: www.marcuscorp.com, or by dialing 1-913-981-5507. Listeners should dial in to the call at least 5 - 10 minutes prior to the start of the call or should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through Thursday, September 25, 2003 on the company's Web site or by dialing 1-888-203-1112 and entering the passcode 255972. Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The company's limited-service lodging division operates or franchises 181 Baymont Inns & Suites in 31 states, seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas and one Budgetel Inn in Wisconsin. Marcus Theatres owns or manages 488 screens at 46 locations in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin. Marcus Hotels and Resorts owns or manages 11 hotels and resorts in Wisconsin, California, Minnesota, Missouri and Texas, and one vacation club in Wisconsin. For more information, visit the company's Web site at www.marcuscorp.com. Certain matters discussed in this Press Release 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 because the context of such statements will include words such as we "believe," "anticipate," "expect" or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause results to differ materially from those expected, including, but not limited to, the following: (i) our ability to successfully define and build the Baymont brand within the "limited-service, mid-price without food and beverage" segment of the lodging industry;(ii) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division;(iii) the effects of increasing depreciation expenses and pre-opening and start-up costs due to the capital intensive nature of our businesses;(iv) the effects of adverse economic conditions in our markets, particularly with respect to our limited-service lodging and hotels and resorts divisions;(v ) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets;(vi ) the effects on our occupancy and room rates from the relative industry supply of available rooms at comparable lodging facilities in our markets;(vii) the effects of competitive conditions in the markets served by us;(viii) our ability to identify properties to acquire, develop and/or manage and continuing availability of funds for such development; and (ix) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States, the United States' responses thereto and subsequent hostilities. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this Press Release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. -more- Page 4 THE MARCUS CORPORATION Consolidated Statements of Earnings (in thousands, except per share data) (Unaudited)
13 Weeks Ended -------------- August 28, 2003 August 29, 2002 --------------- --------------- Revenues: Rooms and telephone.............................. $ 52,138 $ 52,796 Theatre admissions............................... 29,961 29,211 Theatre concessions.............................. 13,853 13,692 Food and beverage................................ 9,760 9,257 Other revenues................................... 15,083 14,621 --------------- --------------- Total revenues....................................... 120,795 119,577 Costs and expenses: Rooms and telephone.............................. 21,439 20,986 Theatre operations............................... 23,062 22,387 Theatre concessions.............................. 3,082 3,190 Food and beverage................................ 7,239 6,927 Advertising and marketing........................ 7,815 7,731 Administrative................................... 10,537 10,330 Depreciation and amortization.................... 11,308 11,438 Rent............................................. 616 602 Property taxes................................... 4,070 4,344 Preopening expenses.............................. 102 3 Other operating expenses......................... 5,884 6,484 --------------- --------------- Total costs and expenses............................. 95,154 94,422 --------------- --------------- Operating income..................................... 25,641 25,155 Other income (expense): Investment income................................ 475 622 Interest expense................................. (4,557) (5,324) Gain on disposition of property and equipment.... 7 409 --------------- --------------- (4,075) (4,293) Earnings from continuing operations before income taxes.............................. 21,566 20,862 Income taxes......................................... 8,621 8,491 --------------- --------------- Earnings from continuing operations.................. 12,945 12,371 =============== =============== Discontinued operations: Gain on sale of discontinued operations, net of applicable income taxes................. - 1,216 --------------- --------------- Net earnings......................................... $ 12,945 $ 13,587 Earnings per share - basic and diluted: Continuing operations............................ $ 0.44 $ 0.42 Discontinued operations.......................... $ - $ 0.04 --------------- --------------- Net earnings per share........................... $ 0.44 $ 0.46 =============== =============== Weighted Ave. Shares Outstanding: Basic............................................ 29,534 29,333 Diluted.......................................... 29,686 29,560
-more- Page 5 THE MARCUS CORPORATION Condensed Consolidated Balance Sheets (in thousands)
August 28, 2003 May 29, 2003 --------------- ------------ (Unaudited) (Audited) Assets: Cash and cash equivalents................................ $ 4,490 $ 6,039 Accounts and notes receivable............................ 22,518 29,685 Refundable income taxes.................................. - 4,032 Real estate and development costs........................ 6,308 5,338 Other current assets..................................... 6,285 5,771 Property and equipment - net............................. 653,790 655,803 Other assets............................................. 50,050 48,789 --------------- ------------ Total Assets............................................. $ 743,441 $ 755,457 =============== ============ Liabilities and Shareholders' Equity: Accounts and notes payable............................... $ 16,914 $ 22,188 Income taxes............................................. 5,110 - Taxes other than income taxes............................ 15,205 13,682 Other current liabilities................................ 20,057 18,110 Current maturities of long-term debt..................... 45,511 72,906 Long-term debt........................................... 202,220 203,307 Deferred income taxes.................................... 39,279 38,768 Deferred compensation and other.......................... 17,062 16,596 Shareholders' equity..................................... 382,083 369,900 --------------- ------------ Total Liabilities and Shareholders' Equity..................... $ 743,441 $ 755,457 =============== ============
THE MARCUS CORPORATION Business Segment Information (Unaudited) (in thousands)
Limited- Service Hotels/ Corporate Lodging Theatres Resorts Items Total ------- -------- ------- ----- ----- 13 Weeks Ended August 28, 2003 Revenues $ 36,754 $ 46,118 $ 37,640 $ 283 $ 120,795 Operating income (loss) 7,690 12,699 7,068 (1,816) 25,641 13 Weeks Ended August 29, 2002 Revenues $ 37,449 $ 44,262 $ 37,458 $ 408 $ 119,577 Operating income (loss) 8,558 11,341 7,137 (1,881) 25,155
Corporate items include amounts not allocable to the business segments. Corporate revenues consist principally of rent and the corporate operating loss includes general corporate expenses. # # # -----END PRIVACY-ENHANCED MESSAGE-----