Good morning, everyone. And welcome to the Marcus Corporation Fourth Quarter Earnings Conference Call. My name is Zineda 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 are 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.

Thanks very much. And welcome everybody to our fiscal 2009 fourth quarter and year-end conference call. As usual, I need to begin by stating 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 fourth quarter and year-end results. As is obvious, when you look at our numbers, we continue to benefit from having two distinct businesses. The lodging environment continues to be very challenging, negatively impacting our results compared to last year. But thanks to another good quarter for the theater division in fact we are reporting record revenues in operating income from this business during fiscal 2009. The impact has been lessened so much so much so that we're pleased…

Thanks Doug and good morning everybody. Let me start with our Theater division. As you've heard and seen, we've had another very good quarter in this division and I am very pleased that we were able to report better operating results during fiscal 2009. While I bear the risk of repeating myself, it's the business the theme movie theater business has continued its history of being resistant to economic downturn. It's hard to argue with the fact that going to the movies remains an inexpensive form of out of home entertainment. They consistently provide an escape from the challenges of daily life. I think that when you add that environment to the new collection of sound films such as those mentioned in our release, you end up with the results we reported this morning from this division. As Doug shared some of the additional numbers with you, you probably noted that during the past quarter the increases is in our comparable fee of box-office revenues came up from a fairly sizeable increase in our average admission price. As Doug noted, comparable attendance was actually even with last year. But our average ticket price increased to over 8% during the quarter and over 5% for the year. Clearly, we benefited from a couple of our key strategies that we shared with you in the past including an expansion of our Digital 3D presence and a continued expansion of our UltraScreen concept. As the press release notes, Monsters vs. Aliens was our number one picture during the fourth quarter. So, the impact of 3D premium pricing on our average ticket price was even more pronounced. We also opened up another UltraScreen during our fourth quarter. We charge a premium for UltraScreen attraction and an additional premium for reserved seating. Nearly one half…

Thank you. (Operator Instructions) We'll go first to David Loeb with Robert W. Baird. Please proceed.

Good morning gentlemen. I appreciate the thoroughness of your prepared remarks and I have a couple of follow ups on that. Doug, you mentioned acquisition strategies in both divisions, I wonder if you or Greg could comment on the market conditions for acquisition? I'm guessing that with the theater business going well you're seeing somewhat fewer opportunities there, would you agree with that?

I would generally agree with that, yes. Obviously if you look back -- think about the theater business if you remember David, and look at the two acquisitions that we did the preceding two years, those were not driven by distressed and or things going really well. They were driven by situations and ownership of those particular chains, little circuits where they were looking to exit next generation might not be as interested in maintaining wherever might be. So the business that you know, when the opportunities come you can't just necessarily point to the macro economic conditions and say that’s what's going to drive it. So it's fairly unpredictable, but in general I would agree with this statement.

I guess, I was thinking that if you're in that older generation and you are hanging on, it's a good time to hang on. I suppose it’s also a good time to sell if that the values are better?

You know David, I guess what I would say is, you know, that we continue to look at opportunities in the marketplace. We are not in the theater business a trailing 12 month purchaser at any instance. This is historically a business that has fluctuations as you follow us you know and when we evaluate opportunities, we will not buy until 12 months frankly, in any instance. So we look at how the business has performed overtime and how we expect it to perform overtime and we take a long-term outlook and if the opportunity presents itself and makes sense and the capital is available we will take advantage of it.

Okay. That certainly makes sense. How about in the hotel side? There is a lot more distress there that must be creating a lot of opportunities, what do you think are the prospects for you in that environment?

Well we sure would like to take advantage of some of those opportunities David. I think that right now our general sense if I had to characterize as patience is a virtue here right now. There certainly are an increasing number of opportunities starting to present themselves. But I think the general consensus is that there probably will be more and so we're watching that very closely and certainly as we've indicated in the past if we like to be able to pick up some additional properties now they could be in a variety of different forms, management contracts, equity investments, but certainly there is going to be some stress now is could some more distress in the future. So we will be watching that very closely.

Want to just follow up on that and ask about distress at management contracts and particularly we saw reports that Whitehall launched the former resort suites which you had managed for them. Did that end your management contract there and do you see net opportunities as opposed to net launches threatening as your owners are under some financial stress?

We are still managing the property for Whitehall. That sure what the report that you saw said.

I think it was a default that that may not have been a foreclosure yet, but I thought we actually saw it report. In fact they know we saw our report that said that hotel under its new name formally the resort suites [inaudible] have defaulted.

I think that's correct. I think I saw the same report but at this point they still continue to control the resort and we are running it for them.

Okay. So your prospects for management contracts in distress are probably greater as opposed to more risky given the state of the owners. That's fair.

I think all I would add to that will be the same. With the turmoil, there should be opportunities at management contracts. I think it will be our focus to look for management contracts we think we have a long term focus. We're not looking to just come in and manage while somebody's in receivership to be turned over to the next company.

That make sense, great that's good answer now thanks.

(Operator Instructions) Your next question comes from the line of Andrew Whiteman with Robert W. Baird. Please proceed.

Hi guys, Greg I just wanted to drill in a little bit more on your outlook for the hotels, you mentioned that you are optimistic for third quarter, fourth quarter '10, that things might turn around a little bit? Can you just talk a little bit about what gives you some confidence to maybe believe that or sense that, maybe in terms of looking at your group bookings or other things that you might have to look at?

It’s more just as -- it is more just a feeling about what's going on with economy in general and that with all the stimulus that's being applied and that these things are cyclical that eventually we are going to come to that and I can't point to any specific data point that says calendar 2010 is going to get to be a lot better. I know that if the data point that were going to last 2009 is absolutely going to happen, but there's a lot of stimulus being applied to our economy and we should start to see some of that, but that's what I'm facing I think...

Is part of that maybe your comps too, I mean is that a factor here?

Certainly and you'll notice and we choose our words very carefully as you know Andy I mean we're not suggesting, we're not projecting that we think RevPAR is going to be up or anything like that, where I think no one really knows the -- all the so called industry experts aren’t suggesting that right now. Most of the industry experts are suggesting that RevPAR will still be down in 2010, but on a much smaller scale, but again if anyone I don't think anyone really knows, certainly the comps will be better and everyone is using terms you have listened and you have listened to another call today as everyone is using terms like left out and things like that, and that's generally what's happening right now is that things have somewhat stabilized here in the summer as we mentioned our July is certainly less bad but it’s still down so, that gives us some confidence that we have seen the worst, we hope that’s the case.

Hopeful, but looking at the words and our script today I m hopeful it will get better and I am hopeful.

Okay. That makes senses. I guess just wanted to go one other direction here and just talk a little bit about Las Vegas, clearly that has been a very challenging market, lot of new supply demands -- I want to understand if you could give us any color on what your options for I guess, managing and owning the common space is of The Platinum at this point. What do you think your potential outcome could be there?

That's a tough one Andy, I mean right now as you said, the market is in tough shape we've already addressed previously from the ownership of the units perspective, began there we are just going to show some patience. We are not just stress sellers, we don't feel any need to force the market on the 16 that we have and so we have already addressed that. As it relates to management itself, certainly it’s not a profitable venture for us right now and so we continue to look at operationally things that we can do and then of course we continue to look at other options if there are options out there that could make that a better possible proposition for us but

Anything that you think could be interested in teaming up with you there? Other capital sources that might want to take you out?

Yeah, I know. I wouldn't want to go there Andy I mean we keep on looking, we’ll look at options and if options do present themselves, we will absolutely take a look at them, but right now, we're writing this thing out, and as everyone else and if something does come along that provides us something we want to consider, we’d look at it but, here we are today and we're still as best we can.

Okay. On the other side of that coin, you mentioned that one hotel was up for fiscal '09, just out of curiosity, can I ask you what that was?

For fiscal '09, we have mentioned it previously that our Okalahoma city property had a -- overall for the year they were actually up slightly. We don't normally name the property so I am not going to name it for one of those, but actually it was not the property that was up in our fourth quarter, but another property that has had a good and better quarter and comparably, but overall Oklahoma city has held up the best of our properties.

And as part of that the function of not only being a lower bid market but also the fact that there is some ramp in that hotel since its openings still.

Well certainly, that property ramped up very, very quickly. It is a new property, it is one of the best properties, if not the best property in town, that market in general if you just look at some market dynamics as well, certainly has performed better than others.

Is there still some ramp in that you think, into a tough 2010 may be?

I'm sorry, what did you say?

Just wondering if you thought there is some more ramp in the Oklahoma city asset that just could continue to have that one outperform.

You know how oil is going to do, that's a strive in that market. So what’s my question as Doug pointed out, it’s not a question of ramp, that property ramped up pretty well, this not when it’s ramping up, its really been driven by the market down there.

Interesting, Okay thanks I think that's all for me.

We have a follow up question in the line of David Loeb with Robert W. Baird. Please proceed.

We are doing the tag team approach. I just wanted to come back to the theaters, I am very impressed with the average ticket pricing gains particularly in the fourth quarter and I am just curious about given the CapEx budget that you laid out, if there are, aside from continuing to roll out the visual 3D, are there other ultrascreen construction projects or retrofit projects in existing theaters or additions of theaters that you see where you can continue that trend towards premium offerings at your locations.

We may have mentioned, there are three locations in that budget for new UltraScreen. None of them have officially come to the investment committee yet. But yes, there are dollars potentially set aside for three more ultrascreens, which certainly are driver on that. Greg touched on the reserve seating which then can be an added premium. And we’ve got a interesting experiment going on with that at the North Shore Cinema that expands on that far then we’ve ever gone in the past as well. So, time will tell when that translates into additional, because we do have some additional food and beverage concepts and some things that we hope to continue selectively in fiscal 2010 as well. So, well, yeah, but clearly the 3D and the ultra screen pricing, the reserve seating pricing. Those were the three main drivers.

And are you having reserved seating only in ultra screens or in traditional screens as well?

Well, the experiment at North Shore and let me be clear about how that works is because it’s different than 3D, 3D which gets a premium price. That is a pure premium added to the ticket. What we are doing in the ultra screen and we do in the North Shore, and most of the other screens where we offer a select portion of reserve seating is that we essentially make the reserve seating complementary, but to get a reserved seat you have to pay an additional $3. But that $3 is a food and beverage voucher. So, if you are eating in our restaurant, for example at Zaffiro’s, you are probably spending more than $3 a ticket, in that instance you have paid nothing more for a reserved seat but you get it because you can use your voucher. If you buy concessions at our concession stand, you can use your vouchers for your concession and get a reserved seat which means great, you don't have to wait in line, you shop at the last minute, you get a very good seat and you picked your seat obviously, but at no additional cost. The only time there is really additional cost is that you don't eat or drink anything at the theater, but you want a reserve seat and that would be the only time when you see a additional cost in addition to -- as a consumer. But otherwise, it's a service to be provided for our customers that participate in our food and beverage programs.

That is very clever Greg, I have to say. And that's if that succeeds at North Shore, you are going to roll that out more broadly?

We would like to make it, yeah. We would like to have to be successful and rolling out yes.

I mean there are operational challenges that were, that's why we are doing in one location, we got to work our way through, but and that obviously not every place has a separate Zaffiro’s restaurant but they all have professional stands. So there are ways to do this.

I mean that was what Douglas thought, that was the genesis of the idea which is Zaffiro --which said okay, aside from having absolutely incredible pizza which it has, how do we differentiate ourselves and how we can take advantage of our restaurant to make it a choice or any other restaurant in North Shore. And one of the things was, we can give somebody who eats with us a reserved seats. And so it works to the benefit of the restaurant and it’s good for the theater as well

That’s great. And one final follow up on that, what would the timing be assuming the three UltraScreens get through the committee process and you decide to move ahead with them. How long would that take to construct or retrofit?

Well realistically they wouldn't have a lot of impact on fiscal 2010, because with our mid western locations and none of them are in the ground today, so the big push is typically to get screens opened either in time for the holiday season on in time for the May kick off of new pictures. And so, realistically you are probably looking at more likely that these screens would come out in the second half of the year than in the first half.

Okay. So they are likely to be opened assuming you go ahead with them -- to be opened near the end of the next fiscal year, but in time for next summer.

That would be the most likely scenario. If they are prepared and we fast track one of these and get in the ground quickly, I suppose it’s possible something is going to happen sooner there, but I don't know the answer to that yet.

That's great. Thanks very much.

Thank you. At this time it appears there are no other questions. I'd like to turn the call back to Mr. Neis for any additional or closing remarks.

We certainly like to thank you once again for joining us today. We look forward to talking to you again actually very shortly in September when we release our fiscal 2010 first quarter results. Till then have a great day. Thanks again.

That concludes today's call. You may disconnect your line at any time. Have a good day.