NYSE$MCS

The Marcus Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported third quarter fiscal 2020 results and reaffirmed its strong balance sheet and liquidity position.

The Marcus Corporation reported results for the third quarter of fiscal 2020, highlighting a strong balance sheet and liquidity position despite challenges from the COVID-19 pandemic, including theater closures and reduced hotel occupancies.

  • Net-debt-to-capitalization ratio was 35% as of September 24, 2020.
  • Extended debt maturities and enhanced liquidity with $218.2 million in cash and revolving credit availability as of September 24, 2020.
  • Marcus Theatres initially reopened 80% of theatres as of August 28, 2020.
  • Marcus Hotels & Resorts reopened three additional company-owned hotels during the quarter.

Headline financials

Total Revenue

$33.6M

Previous: $211M-84.1%
EPS (adj)

-$1.22

Previous: $0.50-344.0%
Capital Expenditures

-$18.7M

Previous: -$50.1M+62.7%
Free Cash Flow

-$58.1M

Previous: -$35.8M-62.3%
Net Income

-$39.4M

Previous: $14.3M-376.0%
Operating Income

-$48M

Previous: $22.4M-314.4%
Gross Profit

$33.6M

Previous: $211M-84.1%
Cash & Equivalents

$8.24M

Previous: $7.45M+10.6%
Total Assets

$1.32B

Previous: $1.34B-1.8%

Revenue & EPS history

Marcus · Revenue · Quarterly

$33.6M

Q3 2020-84.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Marcus · $55.8M total across 1 segment · Q1 2023

  • Marcus Hotels & Resorts
    $55.8M+6.0%

Forward guidance

The company expects both of its businesses will begin returning to more normal conditions once the pandemic is under control and the company has the financial flexibility to sustain operations throughout fiscal 2021.

Tailwinds

  • Balance sheet and reinforce our liquidity provide us with the financial flexibility to sustain operations throughout fiscal 2021.
  • Significant real estate ownership.
  • Comprehensive safety protocols and advanced technology.
  • Welcoming our guests back to our hotels, resorts and restaurants and remain committed as ever to making our guests’ ordinary days extraordinary.
  • Properties are uniquely positioned in their respective markets to continue capturing demand as travel recovers and groups begin to plan for future events.

Headwinds

  • Challenging times.
  • Theatres being closed during most of the third quarter of fiscal 2020.
  • Majority of hotels opened but operating at significantly reduced occupancies.
  • Film product release schedule continued to change.
  • Many cancelled group bookings due to COVID-19 are rebooking for future dates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.8%

Avg return

30 days after

57%

34 / 60 earnings

Positive

+20.1%

Q3 2024

Best reaction

-11.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.2%-4.4%-0.6%
Q4 2025+3.2%+8.3%+4.7%
Q3 2025-0.5%+9.9%+18.1%
Q1 2025-1.1%+3.4%+4.5%
Q4 2024-11.2%-17.4%-20.6%
Q3 2024+20.1%+25.0%+31.9%
Q2 2024+4.6%+2.1%+12.4%
Q1 2024-9.2%-14.3%-18.8%
Q4 2023-3.0%-2.6%-3.6%
Q3 2023-1.5%-0.6%-8.9%
Q2 2023+3.3%+4.8%-3.4%
Q1 2023-5.4%-9.7%-10.9%
Q4 2022+0.1%+0.1%+0.1%
Q3 2022+3.4%+5.6%+12.7%
Q2 2022+5.2%+6.8%-6.1%
Q1 2022-7.8%-8.0%-1.8%
Q4 2021-0.1%-4.5%-3.7%
Q3 2021+3.5%+8.0%-8.7%
Q2 2021+2.6%-1.9%-3.2%
Q1 2021-2.4%-3.3%+14.1%
Q4 2020+3.9%+6.8%-1.0%
Q3 2020+2.6%+7.4%+48.6%
Q2 2020-0.3%+1.2%+19.0%
Q1 2020-11.5%-5.9%+17.9%
Q4 2019+2.0%-8.1%-65.9%
Q3 2019-2.7%-0.9%-15.5%
Q2 2019+5.4%+5.6%+0.4%
Q1 2019-1.7%-3.0%-7.5%
Q4 2018+4.1%+2.9%-4.7%
Q3 2018-5.3%-5.5%+2.0%
Q2 2018+12.1%+18.1%+20.1%
Q1 2018-2.4%-2.1%+2.6%
Q4 2017+4.0%+3.4%+12.5%
Q3 2017-0.6%+1.7%+4.1%
Q2 2017-1.3%-4.3%-8.4%
Q1 2017+1.7%-0.3%+0.9%
Q4 2016+7.4%+5.1%+4.2%
Q3 2016+4.3%+4.7%+24.7%
Q2 2016+3.0%+3.6%+8.0%
Q1 2016+0.2%
Q2 2015-1.5%
Q4 2015-1.4%
Q3 2015+1.0%
Q2 2014+2.1%
Q3 2014+9.7%
Q4 2013+0.2%
Q2 2013+0.1%
Q3 2013+3.1%
Q4 2012+1.7%
Q3 2012+0.9%
Q2 2012+1.3%
Q1 2012-2.5%
Q4 2011+1.3%
Q3 2011+13.6%
Q2 2011-1.0%
Q1 2011-0.2%
Q4 2010-2.5%
Q3 2010+7.7%
Q2 2010-8.6%
Q1 2009+1.3%

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