Good morning everyone and welcome to the Marcus Corporation Third Quarter Earnings conference call. My name is Derek and I will be your operator for today. At this time, all participants are on a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator Instructions). 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.

Thank you, and welcome, everybody, to our fiscal 2011 third quarter 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 statements can 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, our expectations about the future trends of 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 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 post all Regulation G disclosures when applicable on our website at www.marcuscorp.com. With that behind us, let’s talk about our fiscal 2011 third quarter results. This obviously was a rough quarter for our largest division, Marcus Theaters, significantly impacting our reported results. Comparisons of last year’s results were further negatively impacted by several unusual items, both this year and last year. I’ll provide you with some additional background on the operating results of our two divisions as well as explain those before-mentioned unusual items. Before I give the operating results, let me first briefly address any variations in the line items below operating income versus last year.…

Thanks, Doug. I’ll begin my remarks today with our theater division. You know, as a public company we’re pretty use to the various statements we are required to make about our businesses and the risk factors associated with them. In fact, we make these statements so often it is easy to take them for granted. For years now we’ve been making the following statement in our public documents, “revenues for the theater business and the motion picture industry in general, are heavily dependent on the general audience appeal of available films. Together with studio marketing, advertising and support campaigns and the maintenance of the current windows between the date a film is released in theaters and the date a motion picture is released to other channels including video on demand and DVD. These are factors over which we have no control.” Well, those words have certainly become real for us again this quarter. Just a year after experiencing the highs of a record quarter spurred on by the largest grossing movie of all time as well as three other top performing blockbusters, we have just completed one of the more disappointing fiscal third quarters we’ve had in recent memory with film product once again the primarily driver of our results. As our press release notes, all four of our top pictures last year performed better than our single best third quarter film this year. And while you could argue that the holiday and early winter film season featured critically-acclaimed specialty films such as True Grit, Black Swan, The King Speech, and The Fighter, clearly we were missing the big mass-appeal blockbusters that often are associated with this second most important season of the year for us. Some of the other featured films for the season such as The Tourist, TRON,…

Thank you. (Operator Instructions). And our first question is coming from the line of David Loeb from Baird. Please proceed. David Loeb – Robert W. Baird & Co. : Good morning. Greg, on the last topic, what kind of capital investment would you anticipate and what do you expect the return would be from that?

I’m sorry, David, you cut off at the end. Can you say that again? David Loeb – Robert W. Baird & Co. : Are you sure you just don’t want to dodge my question?

I’m happy not to dodge it. David Loeb – Robert W. Baird & Co. : I was saying about the development project in Brookfield, can you give us an idea about what kind of capital investment might be involved and what kind of return expectations or hurdle you would require for that?

Well, you know, I don’t want to get into detail. I can tell you that the investment is in the hundred-million dollar range, a little over that. But in terms of investment hurdles, it meets our general criteria but I don’t want to get into that just yet because we still are – we’re still working out all the details of the project. It’s still a work in progress.

Yeah, David, as soon as we have it more fined tuned and have a better understanding of how the financing is going to all come together, I mean, then we’ll by all means get that information to you. But right now, we just don’t have it yet. David Loeb – Robert W. Baird & Co. : It does seem like a big chunk of change to invest directly in your balance sheet and I’m just wondering how you look at that relative to other investment opportunities. Clearly, you have the balance sheet capacity for this and more, but I’m wondering how you’re looking at the capital allocation decision. Can you give a little more color?

Yeah, you know, David, my feeling on it is this. As you pointed out, our balance sheet is under levered and we – you know we’ve been searching long and hard for investments to make and we – even doing this, we’re not going to constrain our capital ability. You know, we will be cognizant of that. We’re still going to be able to grow our businesses. Organic growth, as you know, is very challenging and hotels, I’m hoping one day the banks will lighten up. The good thing about this project is that it’s such an exciting project and such a – I mean, this is the premier tenant in the Midwest everybody’s looking for is coming to Milwaukee in terms of Von Maur although they’re not predicted to be our tenant in this part of the project; they’ll have their own pad. But we feel that if we saw their opportunities in our core businesses, we’ll have the ability to move this or sell this and find a partner and take some of it off our balance sheet and then reinvest in stuff we want to. But we felt it was important that – to make investments that meet our criteria when we had the ability to right now. David Loeb – Robert W. Baird & Co. : That makes perfect sense and it does seem like you’re creating a fairly liquid asset with that so that makes sense. On the theater business, I guess aside from Super 8, which sounds to me like a movie about economic motels, with the number of sequals coming does it concern you that new franchises are not being created or about the lack of creativity? Or does it actually bode pretty well for attendance?

Man, your guess is as good as mine on that one. You know, I think it’s – you know, I think you’ll – it’s not like there’s not going to be any new stuff. Super 8 is there. There’s a new one called Cowboys and Aliens, which looks really interesting. David Loeb – Robert W. Baird & Co. : Filmed in New Mexico.

Yeah, exactly. You know, so there’s this movie Paul, which is coming out. I mean, there’s lot of new product. We play over 160 films in our theaters over a year; they release close to 500, obviously not all make it to the movie theater business. So 27, while it’s a lot for the number of sequals – but there’s still a lot of original product and you never know where they come from. That’s the good thing about the business. David Loeb – Robert W. Baird & Co. : That makes perfect sense. And finally, just one quick question about hotels. It sounds like you’re finally able to get regrowth. It doesn’t surprise me every time I come to Milwaukee you seem to be on the verge of selling out or sold out. What do you think it takes to get the kind of group business back that you’re seeing? Is it Milwaukee winning conventions? Is it you taking share from others in town, in your markets? Or is it really just macro – the economy coming back?

Yes. It really is all three of those things. I mean, now look at – probably the most minimal is the share of others because, you know, as you know in Milwaukee, we have to be careful not to just take from one pocket and move it to the other. You know, but as the economy gets better and you know, and people start – you know, it’s always that – as much as we have technology in the world, there’s nothing like shaking somebody’s hand and closing a deal. And when your competitors are out you start hearing, oh wait, my competitor was out making a sale, now I’ve got to get out. So that starts to build on itself. There’s lots of things that travel just can’t replace and have to occur in terms of, you know, you can’t – I didn’t mean travel can’t replace, I meant technology can’t replace. You know, you can’t have a conference without being together. It’s hard to do that over a video chat. So you know, as the economy gets better and companies start to have more money in their pockets and they’re comfortable spending it, instead of sending one person to the conference, maybe they’ll send two. Maybe they’ll stay in a little nicer hotel. You know, so all those things really will – and then we’ll continue to be aggressive in our markets and making sure that we’re getting our share if not more and delivering a great product, great service. And you put all those things together, that should be a very good formula. David Loeb – Robert W. Baird & Co. : Makes perfect sense. Great. Thank you very much.

Thank you, David.

(Operator Instructions). I do have a follow-up question coming from the line of David Loeb. Please proceed. David Loeb – Robert W. Baird & Co. : Well, if nobody else is going to - Any comment, Greg on the potential for an additional full-service hotel development in Downtown Milwaukee? If the Marriott does get in, what do you think of the chances of the Marriott built and if it does what impact might that have on the Pfister across the street or your hotels in Downtown in general?

Boy, you’re really going for the hornet’s nest with that question, aren’t you. David Loeb – Robert W. Baird & Co. : Sorry.

No, that’s okay. I’m happy to take it on. You know, I have no idea about what their ability to build it is. It is a subsidized hotel and that is not good. I mean, if you’re familiar with it, I don’t know if you are, it’s being – it’s really interesting. They’re using a program called EB5 to finance the hotel. And the – as a chunk of the financing. That is essentially money that is gained from the sale of green cards. It’s a foreign investors – foreign investors put up a certain amount of money and they have to create ten jobs. Now, the interesting thing about the formula when they look to see whether they’re creating ten jobs, they don’t look to see if they’re taking ten jobs or eight jobs away from somebody else. All they have to do is create ten jobs and [inaudible] they’re putting their money into. Well, in the hotel business, that’s not looking – that’s not a great idea because hotels are simply supply. And by the way, what kind of – let’s go back to EB5 for a minute. What kind of return is someone looking for when they’re buying a green card? They’re buying a green card so their kid can go to school in the United States. They’re buying a green card so they can travel outside the United States more freely because their passport may not be as – have the ability to be as flexible as a U.S. passport. And then they may be thirdly even maybe want to come here. But in most cases, that’s not even their main motivation. So they’re putting this money in expecting certainly a low level of return, if anything. I couldn’t tell you exactly what they expect but…

Well, you know, we always, you know us, David, we’re always looking at ways to improve our businesses whether it’s putting a flag on something or taking a flag off something or changing the flag or you know what we do. So you know, of course we’d consider that. We have come to no conclusion on it and whether the Marriott was there, we think about it sometimes too. Brands are very strong. But right now, we have no intention of doing anything. David Loeb – Robert W. Baird & Co. : Okay. Great, thank you very much for your help.

You want to ask Doug a question? David Loeb – Robert W. Baird & Co. : I like putting you on the hot seat.

Thanks.

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

Well, thank you. I certainly want to thank everyone for joining us again today. We look forward to talking to you once again in July when we release our fourth quarter and year-end fiscal 2011 results. Thanks, and have a great day.

Ladies and gentlemen, that concludes today’s call. You may disconnect your line at any time.