MARCUS CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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EX-99.1 - EXHIBIT 99.1 - MARCUS CORP	v427189_ex99-1.htm
8-K - 8-K - MARCUS CORP	v427189_8k.htm

Exhibit 99.2

Change in Fiscal Year End December 17, 2015

Special Note Regarding Forward Looking Statements 2 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 because the context of such statements 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 may cause results to differ materially from those expected, including, but not limited to, the following: (1) the availability, i n terms of both quantity and audience appeal, of motion pictures for our theatre division, as well as other industry dynamics such as the maintenance of a suitable window between the date such motion pictures are released in theatres and the date they are released to other distribution channels; (2) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (3) the effects on our occupancy and room rates of the relative industry supply of available rooms at comparable lodging facilities in our markets; (4) the effects of competitive conditions in our markets; (5) our ability to achieve expected benefits and performance from our strategic initiatives and acquisitions; (6) the effects of increasing depreciation expenses, reduced operating profits during major property renovations, impairment losses, and preopening and start - up costs due to the capital intensive nature of our businesses; (7) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (8) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; and (9) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States or other incidents of violence in public venues such as hotels and movie theatres. 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 Presentation and we undertake no obligation to publicly update such forward - looking statements to reflect subsequent events or circumstances.

Transitioning Fiscal Year End from May to December • The Marcus Corporation (MCS) is changing its fiscal year end from the last Thursday in May to the last Thursday in December. – Better aligns the company’s financial reporting schedule with the peer groups in its industries – Moves the company’s year - end closing activities outside of its busy summer season, enabling associates to better manage their workload. 3

Transitioning Fiscal Year End from May to December • The company will report a 31 - week transition period from May 29, 2015 to December 31, 2015, consisting of two 13 - week quarters ending on August 27, 2015 and November 26, 2015 and a final 5 - week period ending on December 31, 2015 . • Results from this transition period will be compared to a 30 - week period from May 30, 2014 to December 25, 2014, consisting of two 13 - week quarters ending on August 28, 2014 and November 27, 2014 and a final 4 - week period ending on December 25, 2014. • Fiscal 2016 will be a 52 - week period from January 1, 2016 to December 29, 2016. 4

Impact of Extra Week 5 • The transition period ending on December 31, 2015 will benefit from an additional 31 st week of operations compared to the prior year 30 - week period. This additional week includes the traditionally strong week for movie theatres between Christmas and New Year’s. • The company estimates that the comparable 31 st week last year contributed approximately $14.1 million in revenues ($10.7 million - Theatres, $3.4 million - Hotels) and $4.8 million in operating income ($4.2 million – Theatres, $0.7 million – Hotels, $(0.1) million - Corporate) to its reported financial results. • After interest expense and income taxes, the company estimates that the 31 st week of operations last year contributed approximately $2.8 million to net earnings, or $ 0.10 per diluted common share . • Actual results for the 31 st week this year could differ materially from those experienced last year.

Comparative Financial Information 6 • The company has prepared the following unaudited, historical financial information to assist investors in evaluating the impact the change in fiscal year may have on its future reported transition period, quarterly and annual operating results : – Consolidated Statements of Earnings for the 30 - week period from May 30, 2014 to December 25, 2014, including applicable interim periods and selected segment information; – Consolidated Statements of Earnings for the 52 - weeks ended December 25, 2014, including applicable interim periods and selected segment information; and – Consolidated Statements of Earnings for the 39 - weeks ended September 24, 2015, including applicable interim periods and selected segment information . • Actual results for the comparable periods in the transition period ending on December 31, 2015 and fiscal 2016 could differ materially from those experienced in the prior year periods and reflected in the above - described unaudited historical financial information.

THE MARCUS CORPORATION

Consolidated Statements of Earnings

Comparative Info - 30 week Period from May 30, 2014 to December 25, 2014 (Unaudited)

							4 Weeks
	13 Weeks Ended						Ended			30 Weeks Ended
(in thousands, except per share data)	August 28,			Nov. 27			Dec. 25,			Dec. 25,
	2014			2014			2014			2014
Revenues:
Theatre admissions	$	41,345		$	32,794		$	11,469		$	85,608
Rooms		34,681			29,678			5,538			69,897
Theatre concessions		24,922			20,484			7,466			52,872
Food and beverage		16,155			20,134			5,167			41,456
Other revenues		14,666			12,971			3,170			30,807
Total revenues		131,769			116,061			32,810			280,640

Costs and expenses:
Theatre operations		34,863			27,953			10,265			73,081
Rooms		11,402			10,725			2,977			25,104
Theatre concessions		6,721			5,841			2,149			14,711
Food and beverage		12,063			15,924			4,438			32,425
Advertising and marketing		7,388			6,710			2,080			16,178
Administrative		12,392			12,955			3,682			29,029
Depreciation and amortization		9,078			10,156			3,178			22,412
Rent		2,154			2,160			695			5,009
Property taxes		3,906			3,719			1,131			8,756
Other operating expenses		9,113			8,298			2,500			19,911
Total costs and expenses		109,080			104,441			33,095			246,616

Operating income		22,689			11,620			(285	)		34,024

Other income (expense):
Investment income (loss)		25			25			8			58
Interest expense		(2,404	)		(2,388	)		(765	)		(5,557	)
Gain (loss) on disposition of property, equipment and other assets		(6	)		(495	)		(218	)		(719	)
Equity earnings (losses) from unconsolidated joint ventures, net		(41	)		27			(49	)		(63	)
		(2,426	)		(2,831	)		(1,024	)		(6,281	)

Earnings before income taxes		20,263			8,789			(1,309	)		27,743
Income taxes		7,987			3,398			(342	)		11,043
Net earnings		12,276			5,391			(967	)		16,700
Net loss attributable to noncontrolling interests		(156	)		168			(94	)		(82	)
Net earnings attributable to The Marcus Corporation	$	12,432		$	5,223		$	(873	)	$	16,782

Net earnings per common share attributable to
The Marcus Corporation - diluted	$	0.45		$	0.19		$	(0.03	)	$	0.61

Weighted ave. shares outstanding - diluted		27,613			27,568			27,616			27,593

Selected Segment Data
Revenues:
Theatres	$	69,387		$	56,275		$	19,687		$	145,349
Hotels & Resorts		62,247			59,626			13,092			134,965
Corporate		135			160			31			326
Total revenues	$	131,769		$	116,061		$	32,810		$	280,640

Operating Income:
Theatres	$	14,854		$	9,783		$	3,083		$	27,720
Hotels & Resorts		11,004			5,729			(2,255	)		14,478
Corporate		(3,169	)		(3,892	)		(1,113	)		(8,174	)
Total operating income	$	22,689		$	11,620		$	(285	)	$	34,024

THE MARCUS CORPORATION

Consolidated Statements of Earnings

Comparative Info - 52 Weeks Ended December 25, 2014 (Unaudited)

	13 Weeks Ended												52 Weeks Ended
(in thousands, except per share data)	March 27,			June 26,			Sept. 25,			Dec. 25,			Dec. 25,
	2014			2014			2014			2014			2014
Revenues:
Theatre admissions	$	37,328		$	38,362		$	34,842		$	37,456		$	147,988
Rooms		21,201			28,609			33,684			25,452			108,946
Theatre concessions		21,745			22,745			21,433			23,680			89,603
Food and beverage		13,382			15,419			15,654			20,199			64,654
Other revenues		13,443			13,433			14,317			11,832			53,025
Total revenues		107,099			118,568			119,930			118,619			464,216

Costs and expenses:
Theatre operations		33,579			33,212			30,581			31,490			128,862
Rooms		9,887			10,620			11,470			10,186			42,163
Theatre concessions		6,056			6,369			5,859			6,660			24,944
Food and beverage		11,485			11,784			11,826			16,607			51,702
Advertising and marketing		5,709			6,573			6,871			6,854			26,007
Administrative		11,931			11,498			12,490			12,843			48,762
Depreciation and amortization		8,273			8,979			9,218			10,234			36,704
Rent		2,153			2,130			2,181			2,125			8,589
Property taxes		4,210			3,291			3,888			3,568			14,957
Other operating expenses		8,443			8,167			8,947			8,154			33,711
Total costs and expenses		101,726			102,623			103,331			108,721			416,401

Operating income		5,373			15,945			16,599			9,898			47,815

Other income (expense):
Investment income (loss)		385			236			26			21			668
Interest expense		(2,580	)		(2,433	)		(2,378	)		(2,410	)		(9,801	)
Gain (loss) on disposition of property, equipment and other assets		(10	)		(41	)		111			(817	)		(757	)
Equity earnings (losses) from unconsolidated joint ventures, net		(144	)		(41	)		23			(93	)		(255	)
		(2,349	)		(2,279	)		(2,218	)		(3,299	)		(10,145	)

Earnings before income taxes		3,024			13,666			14,381			6,599			37,670
Income taxes		2,726			5,560			5,646			2,703			16,635
Net earnings		298			8,106			8,735			3,896			21,035
Net earnings (loss) attributable to noncontrolling interests		(3,674	)		97			(157	)		45			(3,689	)
Net earnings attributable to The Marcus Corporation	$	3,972		$	8,009		$	8,892		$	3,851		$	24,724

Net earnings per common share attributable to
The Marcus Corporation - diluted	$	0.15		$	0.29		$	0.32		$	0.14		$	0.90

Weighted ave. shares outstanding - diluted		27,043			27,480			27,633			27,572			27,431

Selected Segment Data
Revenues:
Theatres	$	62,595		$	64,446		$	59,279		$	63,976		$	250,296
Hotels & Resorts		44,398			53,826			60,500			54,501			213,225
Corporate		106			296			151			142			695
Total revenues	$	107,099		$	118,568		$	119,930		$	118,619		$	464,216

Operating Income:
Theatres	$	11,841		$	12,728		$	10,194		$	12,648		$	47,411
Hotels & Resorts		(2,590	)		6,237			9,895			945			14,487
Corporate		(3,878	)		(3,020	)		(3,490	)		(3,695	)		(14,083	)
Total operating income	$	5,373		$	15,945		$	16,599		$	9,898		$	47,815

THE MARCUS CORPORATION

Consolidated Statements of Earnings

Comparative Info - 39 Weeks Ended September 24, 2015 (Unaudited)

	13 Weeks Ended									39 Weeks Ended
(in thousands, except per share data)	March 26,			June 25,			Sept. 24,			Sept. 24,
	2015			2015			2015			2015
Revenues:
Theatre admissions	$	42,343		$	46,047		$	39,125		$	127,515
Rooms		20,686			29,448			33,641			83,775
Theatre concessions		26,834			29,813			26,027			82,674
Food and beverage		15,170			17,498			18,679			51,347
Other revenues		13,674			14,972			16,422			45,068
Total revenues		118,707			137,778			133,894			390,379

Costs and expenses:
Theatre operations		36,392			39,536			35,169			111,097
Rooms		9,780			11,129			11,155			32,064
Theatre concessions		7,071			8,281			7,700			23,052
Food and beverage		13,376			14,459			14,612			42,447
Advertising and marketing		5,369			5,789			6,152			17,310
Administrative		14,241			14,572			14,011			42,824
Depreciation and amortization		9,838			9,970			10,452			30,260
Rent		2,154			2,154			2,209			6,517
Property taxes		4,046			3,434			3,885			11,365
Other operating expenses		8,623			8,336			8,848			25,807
Impairment charge		316			2,603			-			2,919
Total costs and expenses		111,206			120,263			114,193			345,662

Operating income		7,501			17,515			19,701			44,717

Other income (expense):
Investment income (loss)		(22	)		217			10			205
Interest expense		(2,319	)		(2,356	)		(2,386	)		(7,061	)
Gain (loss) on disposition of property, equipment and other assets		(252	)		(495	)		183			(564	)
Equity earnings (losses) from unconsolidated joint ventures, net		(98	)		(25	)		2			(121	)
		(2,691	)		(2,659	)		(2,191	)		(7,541	)

Earnings before income taxes		4,810			14,856			17,510			37,176
Income taxes		1,764			5,942			6,798			14,504
Net earnings		3,046			8,914			10,712			22,672
Net loss attributable to noncontrolling interests		(191	)		(103	)		(159	)		(453	)
Net earnings attributable to The Marcus Corporation	$	3,237		$	9,017		$	10,871		$	23,125

Net earnings per common share attributable to
The Marcus Corporation - diluted	$	0.12		$	0.32		$	0.39		$	0.83

Weighted ave. shares outstanding - diluted		27,753			27,866			27,898			27,841

Selected Segment Data
Revenues:
Theatres	$	72,642		$	79,797		$	68,919		$	221,358
Hotels & Resorts		45,958			57,809			64,840			168,607
Corporate		107			172			135			414
Total revenues	$	118,707		$	137,778		$	133,894		$	390,379

Operating Income:
Theatres	$	15,129		$	17,397		$	12,310		$	44,836
Hotels & Resorts		(3,605	)		2,369			11,206			9,970
Corporate		(4,023	)		(2,251	)		(3,815	)		(10,089	)
Total operating income	$	7,501		$	17,515		$	19,701		$	44,717

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