Good morning everyone and welcome to The Marcus Corp. second quarter earnings conference call. My name is Omida and I will be your operator for today. (Operator Instructions) Joining us today are Greg Marcus, President and Chief Executive Officer; and Doug Neis, Chief Financial Officer of Marcus Corporation. At this time, I'd like to turn the program over to Mr. Neis for the opening remarks.

Thank you and welcome everybody to our fiscal 2010 second conference call. As usual, I need to begin by stating we plan on making a number of forward-looking statements on our call today. Our forward-looking statements that could include but not be 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. Our expectations about the quality, quantity and audience appeal of film products expected to be made available to us in the future, expectations about the future trends in the Business Group and Leisure Travel Industry and in our markets, expectations and plans regarding growth in the number and type of our properties and facilities, expectations regarding various non-operating line items on our earnings statement and 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 factor section of our 10-K and 10-Q filings which can be obtained from the SEC or the company. We'll also post all Regulation G disclosures when applicable on our website at www.marcuscorp.com. So, with that behind us, let's talk about our fiscal 2010 second quarter results. Excluding onetime adjustment that I’ll address in a moment, our theatre division reported another good quarter with record revenues and increased operating income. In our Hotel and Resorts division, while RevPAR trends improved slightly, division continued to be impacted by a very challenging lodging demand environments, and our results further impacted by impairment charge. Before I get into the operating results let me first briefly address any variations in the line items below operating income versus last year, especially do effect that…

Thanks Doug. As you saw in the release and heard from Doug there were several things going on these quarter in our reported numbers. Well this year and last year making it more difficult to sift through and determine how the quarter really went for us. Doug gave you a further description of two significant adjustments totaling approximately $0.08 per share it certainly mudding the waters for us during our fiscal 2010 second quarter. To be fair we also had a couple of unusual items last year during the same quarter. So while I'm not a fan of discussing what we would call earnings before bad stuff, after all some of the unusual items represent real circumstances that companies face from time-to-time. I think it's relevant and useful to note that if you strip out unusual adjustments from both year end reported results. Our core ongoing businesses would have reported earnings of approximately $0.07 per share this year versus approximately $0.10 per share last year. Underlying story behind those numbers is really not much different from what you heard from us in the last few quarters that is our theatres continue to perform well, but the hotel industry continuing to struggle in the face of this difficult economic environment. So, let me make a few comments about both businesses. Begin my remarks by theatre division. As you reported earlier the division had record revenues would have again reported increased operating income if not for the pension withdraw liability adjustment. We got to those record revenues in a roller coaster way with a stronger than unusual September giving way to a lull in the later weeks of the quarter, until we saw some very strong performance with a record week leading up to Thanksgiving day holiday. By now, twilight sequel delivered…

(Operator Instructions) Your first question comes from David Loeb - Baird.

I want to ask the same question every quarter, but you put the same line about balance sheet in every quarter about opportunities for new investments. Can we start with theatres, clearly that's not a business, that’s feeling much distress? Are there financing issues for other operators? Are there operators with maturity issues that are approaching? Do you think that changes the equation? I guess can you give us comment on the debt market as it relates to theatres and what you think that it does for your acquisition pipeline?

As we said before, we don't know of anybody. First of all, for theatres that we might be able to acquire, theatre chains that would be let's call it our most our strike zone, that data is not public, these are talking probably smaller regional operators. We aren't hearing whether they got what their debt situations are and roll over issues, but I guess the only thing I want to take over less than a hotels and movie theatre. So I don't know if they’re going to get the same extending treatment that the hotels are getting. So the bigger operators have, we don't know what they’re. I haven't been following their bank statistics, and frankly if AMC had a problem, it wasn’t got anything. I would make a decision on. The only transaction, as you know that was recently announced and it was basically related to financial pressure was disposition of some of the Showcase Cinemas, the National Amusements Theatres, red stone stuff, and that was bought up by private equity group. We look at that, we continue to look at any opportunity that comes our way, but as point out, the business is okay, and there’s not a lot of distress, so.

In hotels, do you think there are distressed real estate opportunities in your strike zone over the next year and how about management companies is that something you would consider as well?

I keep reading your research, David.

We’re somewhat skeptical about the timing?

I have to believe there’s going to be some opportunities, we’re looking at. So we continue to see them. Look at that deal was interesting sort of what happened, in New York and Union Square one, where basically, most of them like the C piece have been try to protect itself. I think what you’re seeing, I don’t know if you’re seeing at two, but these guys coming in and they keep going back to the lenders repeated times. I think they must be working their way down the capital stack.

Yes, which I guess means that you won't have a wave of opportunities anytime soon, but they may come eventually, is that fair?

I think that's fair. Again, I guess and then when the market opens up, would we be able to buy at a huge distress. I'm not so sure, but I believe it. We’ll be at the lower end of the cycle and that’s probably a good time to be buying stuff.

On management contract opportunities or management company opportunities, are you seeing more of those or is that are those pretty much frozen as well?

I think from what I’ve seen pretty frozen. We aren't seeing too many. Many of those tend to be a lot of big management companies rolling around and they’re not capital intensive.

On the form around the management contract opportunities some of the stuff is looking as management contracts, so some of that is because as others are also looking to some of the stuff that is out there distressed that is available. There are situations where they’re looking to pair up with a management company. So we’re involved in some of those types of discussions. I think, if I could give you one takeaway in the velocity we got right now, and that is that we’re not just out racing around trying to manage anything and trying to manage just trying to take up especially where there’s distressed stuff just if a lender or somebody or somebody ended up taking the property back, we aren't aggressively. Although, we do have some of that business and we’re looking at it. We’re being selective, because we have to tend to our own assets. Those may not have as long term management horizon, that’s a nice little pop in cash quickly, but we have our plate full just running on what we have, so we’re selective.

In terms of new supply particularly today, I think the aloft in downtown Milwaukee is opening. What do you think the impact will be of that opening and do you see much else coming in your markets?

I'm not looking forward to the aloft opening. I haven't seen the actual product yet, so I won’t be a great barometer. I think rooms are rooms and they're adding inventory to our market that doesn't need a lot of inventory right now. So, I think that they’ll pact us, but I couldn't give you an exact number what I think it's going to be yet. I would tell you that we are working hard to aggressively market and sell benefits of our properties. We will continue to do so.

Your final question comes from Marla Backer - Hudson Square Research.

I have one question on the lodging business and then a couple of questions on the theatre business. You talked about trying to boost occupancies at the hotel a little bit by migrating some demand to the alternative internet, but lower margin channels. First of all, can you quantify what if any impact you've seen so far? Is there, I think you alluded to this, is there a some sort of stickiness that you anticipate there that will make it a little in the short term to move back to the higher margin channels once the industry starts to rebound?

As far as quantifying, no I can't I'm not able at this moment to say it at as some percentage of our business. It's quantified in the standpoint when you look at the average rate, there’s no question that those channels play a role in that, because if you understand how that works, the consumer may be paying getting a room for $88, $99, but that's not what we’re getting, because the channel is taking there pound of flesh, and so as we make our decisions daily in terms of how much inventory to put out onto the channels, I mean it is a science, but clearly when we reported 12% decrease in average rate it is a component of that. I couldn't separate out and tell you how much of it is contributing to that. As it relates to making the transition, the occupancy cures all ills and so the fact is as the demand, and as the particularly in a group business, that’s one of the keys, as you have blocks of rooms that take up and cause compression in your hotel, you then no longer need to be concerned about giving as many rooms to the channels and so the ultimate fix is that. In the meantime, we try to do marketing efforts and value packages and we do some things that try to make that have the customer make the transition to us, if they got us through an opaque channel that first time, if you try to make sure that second time they come directly to us, that's the effort you try to make.

As you cited the Las Vegas market, obviously, there’s been a lot of hotel rooms coming on the market with City Center. Anecdotally, I've seen some increased marketing, I think for the overall Las Vegas market. How long do you think it will take to absorb some of the rooms and my understanding is that there were several projects that have been put on hold, but the developers are talking about resuming developments, at some points in the future, do you see significant number of new rooms coming on in line in Las Vegas over the next couple of years.

Well I think that obviously City Center is going to be a big chunk to digest. What might come on line I mean, the one that I got to believe as to come online, is got to be the sound blue, it’s got curtain always up, I mean, that thing to stop in the middle. So that’s what I guess, it year to piece of raw land I wouldn't be too worried to think anyone is going to build a new room on it. If you got something that’s under construction and maybe significantly advanced someone might buy it at a very discounted price and that might be something that would be finished up. Now, what you noted Marla is correct is that there has been a lot of marketing to Las Vegas and so while I don't normally single out properties, I will tell you that our occupancy was actually it was up at that property compared to last year for the quarter. So it's not that people aren't necessarily doing to Vegas right now, but it is the rate. Conversely, the decline in the rate was higher than what the average for whole circuit, chain was. So that's a market that again, given the number of rooms that's very aggressive pricing going on.

So switching topics to theatre business, okay getting back to the rentals and your margins; do you think that alternative content to kind of help with that and I noticed that in some of your theatres, you will be playing the Dave Matthews concert movie this week. Are you feeling kind of optimistic about the potential for alternative content like concerts and potentially sports events? Again just what kind of impact do you think it will have on margins?

It can you mean there’s no question that any time I can put some additional people in the theatre, particularly the time when maybe we wouldn't be as busy, that's a good thing. That would help our margins, but right now the size of this is just not big enough that you’d noticed it right now. You need to have more. In order for you to ever notice it in our numbers. So, I absolutely agree and buy into what you’re seeing in theory and as more of that comes on it can make a difference, but our Dave Matthews concert here, Glenn Beck’s Christmas…

Not going to do it right now?

No.

Good signs about what the potential is.

Absolutely.

Lastly, as you continue to expand your dining options and your SMB options generally, are you worried about cannibalizing some of the higher margins items at the concession stands and I think I asked this on the past this both for on your quarterly call. So just wanted to get your current feeling about it, now do you have more data?

Yes. Actually, we watch all the time, we don't just look at our gross per cap we look at net per cap, so it doesn’t do us any good sell more and make less.

Right now you are not seeing that?

Right now we are not seeing that.

(Operator Instructions)

Alright, listen, we certainly thank you for your questions and attention. Thank you for joining us again for our conference call and we look forward to talking to you once again in March when we release our third quarter fiscal 2010 results. Thank you. Hope you have a very wonderful Holiday season and a Happy New Year.

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a great day.