Earnings Labs

The Marcus Corporation (MCS)

Q3 2009 Earnings Call· Thu, Mar 19, 2009

$19.22

+0.29%

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Transcript

Operator

Operator

Good morning, everyone. And welcome to the Marcus Corporation Third Quarter Earnings Conference Call. My name is Josh and I’ll be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator Instructions). As a reminder, this conference is being recorded. Joining us today is Greg Marcus, President and Chief Executive Officer and Doug Neis, Chief Financial Officer of the Marcus Corporation. At this time, I would like to turn the program over to Mr. Neis for his opening remarks. Please go ahead, sir.

Douglas A. Neis

Analyst

Well, thank you very much. And welcome everybody to our fiscal 2009 third quarter conference call. As usual, I need to have you bear with me as I once again state that we plan on making a number of forward-looking statements on our call today. Our forward-looking statements could include, but not limited to statements about our future revenues and earnings expectations, our future RevPAR, occupancy rates and room rate expectations for our Hotels and Resorts division, expectations about the quality, quantity and audience appeal of film products expected to be made available to us in the future, our expectations about the future trends in the business group and leisure travel industry and in our markets, our expectations and plans regarding growth in the number and type of our properties and facilities, our expectations regarding various non-operating line items on our earnings statement, and our expectations regarding future capital expenditures. Of course, our actual results could differ materially from those projected or suggested by our forward-looking statements. Factors, risks and uncertainties, which could impact our ability to achieve our expectations, are included in the Risk Factors section of our 10-K and 10-Q filings, which can be obtained from the SEC or the company. We’ll also post all our Regulation G disclosures when applicable, on our website at www.marcuscorp.com. So with that behind us, let’s talk about our fiscal 2009 third quarter and first three quarter’s results. This is one of those times, we certainly appreciate the diversity of our business operations during this difficult economic environment, no secret the hotels are struggling across the country, and we are no exception. We are reporting third quarter results today equal to last year and above our loan estimate due to a record setting performance of our Theatre division. But before I get…

Gregory S. Marcus

Analyst

Thanks Doug. I will begin my remarks with our Theatre division. Last quarter during our call, I quoted the same National Association of Theatre Owners statistic. That we used in our press release regarding the theatre industry’s performance during the last seven recessions this country has seen. I concluded that only time would tell whether we would be able to look back on this recession and change our industry’s recession busting statistic to six out of the last eight from five out of the last seven. While it’s still premature to claim victory, we’ve had two good, two record quarters in a row in our Theatre division during a time when there is not a lot of good news coming across the wire these days. It’s hard to argue with the fact that going to the movies remains an inexpensive form of out-of-home entertainment. That consistently provides an escape from the challenges of daily life. I think when you add that environment to a collection of solid films such as those mentioned in our release, you end up with the results we reported this morning for the division. The funny thing is we were a little worried just as we are going to December as the films were not performing particularly strong during the first weeks of the period. A very snowy month in the Midwest didn’t help matters, but then Christmas weekend and everything came together. Better weather quality films as well as a great variety of films opened during the time when people were looking to be entertained. When I look at our list the top films of the quarter, which strikes me is the depth of the film product available. We have three films last year, National Treasure, Alvin and the Chipmunks and I Am Legend that…

Operator

Operator

Thank you very much sir. (Operator Instructions). Thank you. And at this time it appears there are no other questions. I would like to turn the call back to Mr. Neis for any additional or closing comments.

Douglas A. Neis

Analyst

Well, you guys were really honest today and I think if that means you’ll approve of our results and, so I appreciate that the – again its interesting time and it’s a great quarter for our theatre division. And we have a lot of challenges ahead of us yet, but appreciate your continued support. We would like to thank you for joining us today. We look forward to talking to you once again in July when we release our fourth quarter and fiscal 2009 final results. Have a good day.

Operator

Operator

That concludes today’s call. You may disconnect your line at any time. Thank you.