NYSE$MCS

The Marcus Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Returned to profitability in Q3 2021 with significant outperformance in both Theatres and Hotels & Resorts divisions.

The Marcus Corporation reported positive net earnings and Adjusted EBITDA for the third quarter of fiscal 2021, driven by strong performance in both Marcus Theatres and Marcus Hotels & Resorts. The company's diversified business model, lower debt, and real estate ownership contributed to a faster-than-anticipated return to profitability.

  • The company reported nearly $25 million in Adjusted EBITDA.
  • Marcus Theatres returned to positive Adjusted EBITDA for the first time since the pandemic began.
  • Marcus Theatres outperformed the industry by nearly 8 percentage points.
  • Marcus Hotels & Resorts outperformed the industry by approximately 14 percentage points.

Headline financials

Total Revenue

$146M

Previous: $33.6M+334.2%
EPS (adj)

$0.01

Previous: -$1.22+100.8%
Capital Expenditures

-$9.12M

Previous: -$18.7M+51.2%
Free Cash Flow

-$7.36M

Previous: -$58.1M+87.3%
Net Income

$1.76M

Previous: -$39.4M+104.5%
Operating Income

$6.27M

Previous: -$48M+113.1%
Gross Profit

$146M

Previous: $33.6M+334.2%
Cash & Equivalents

$8.63M

Previous: $8.24M+4.7%
Total Assets

$1.19B

Previous: $1.32B-9.7%

Revenue & EPS history

Marcus · Revenue · Quarterly

$146M

Q3 2021+334.2%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

  • Marcus Hotels & Resorts
    $55.8M+6.0%

Forward guidance

The company is optimistic about the continuing rebound in the movie theatre industry and anticipates business travel will continue to gradually return. Increased booking activity has extended into the fourth quarter of fiscal 2021.

Tailwinds

  • Film studios continued to release exciting new films.
  • Guests are continuing to enjoy the moviegoing experience.
  • Growing number of studios who have publicly recognized the importance of the exclusive theatrical window to the success of their films.
  • Momentum continued into October, as the division experienced its best month at the box office in the COVID era.
  • Highly anticipated new films scheduled for release in the remainder of the fourth quarter of fiscal 2021.

Headwinds

  • Traditionally slower winter months.
  • Group booking pace for fiscal 2022, while still behind the pre-pandemic pace.
  • Banquet and catering booking pace, while also behind pre-pandemic levels.
  • The adverse effects of the COVID-19 pandemic on our theatre and hotels and resorts businesses.
  • The duration of the COVID-19 pandemic and related government restrictions and social distancing requirements and the level of customer demand following the relaxation of such requirements.

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 2021

Historical avgQ3 2021

+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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