Good morning everyone and welcome to the Marcus Corporation Third Quarter Earnings Conference Call. My name is Francis and I will 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.

Thank you and welcome everybody to our fiscal 2012 third quarter 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 be limited to statements about our future revenue 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, expectations about the future trends in the business group and leisure travel industry and in our markets, expectations and plans regarding growth in a 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 could be obtained from the SEC or the company. We will also post all Regulation G disclosures when applicable on our website at www.marcuscorp.com. So with that behind let's talk about our fiscal 2012 third quarter results. We're obviously pleased to be reporting a significantly improved quarter compared to last year, thanks to much stronger results from our Theatre division and continued positive trends ins our Hotels and Resorts Division. I'm going to take you through some of the details behind the numbers, then turn the call over to Greg for his comments. We did have some variations in a couple of other income and expense line items which are below operating income, primarily as a result of…

Thanks Doug. I'll begin my remarks today with our Theater division. We're obviously very pleased with the results we are reporting today and we are clearly on a path to report much stronger fiscal 2012 theatre operating results after a very challenging year last year. Is has been well documented that film products last year, during our fiscal third quarter significantly underperformed so it was gratifying to see this year's third quarter film product perform at a much higher level. There has been a steady stream of good quality films released in the past couple of months. In fact getting back to Christmas week and taking us all the way to last week, we have now had a 11 straight weeks of box office increases. That's the sound of knocking wood. So the industry is on a nice roll right now and the mild winter weather has certainly helped us as well. There was a really interesting dynamic that occurred this quarter. That hasn’t happened often but would bode well for the future if it were to happen more frequently. When I could go look at the performance of our top 15 films this quarter compared to last year, I was surprised to note that this year's top 15 films produced box office receipts that were 5.5% lower than our top 15 films last year. Doug earlier pointed out to you that our total box office revenues for the quarter were 9.3% higher than last year. On the surface, it would appear these numbers conflict with each other. I'd to go philosophical for a moment, like many things in life; the answer to this apparent contradiction lies in the middle. In this case, it is the middle films. We had a very deep slate of films this quarter and as…

(Operator Instructions). Our first question is from the line of Jonathan Pong from Robert W. Baird. You may proceed.

Obviously your SMB and your theater division has been highlighted in the recent quarters, I just want to see with that success are there plans to potential expand on those opportunities that some of your other theaters?

Well as we talked about we are currently expanding the Zaffiro's into the region of New Berlin. I would call this still work in progress; we continue to try to find the optimal mix, whether it's standalone restaurants inside the theater or in-theater dining. As we continue to do as we have always done, we are going to move at a measured pace and refine the operations. But obviously we are pleased with how things are going and because we are doing, but I can’t commit to a certain number.

Jonathan, I would add just as well. We didn’t mention in the press release but we are also adding another take Take Five Lounge up at, it's going to be in conjunction with that OMNIMAX is become an UltraScreen in Duluth. So there are multiple levers that we have and we location by location making decisions that relate somewhat what might be appropriate.

Got it makes sense. And then on the MCS capital site, can you guys comment on the pipeline of hotels that you see out there with REITS basically recovering all of the lost market value over the summer. You would think that a lot of the sellers are coming back to market new inventory. Is that what you guys are seeing? Are those opportunities starting to pick up again and when do you think we can start seeing some activity in terms of capital that you guys put into that initiative?

I hear the engines revving up, it sounds like the beginning of a race. At least someone's point the court on the lawnmowers; you can hear the engine revving up there. I am not sure what the right analogy is but it's clear we are seeing increased activity. I am pleased with the quality of the stuff that we're seeing. But I can't tell you when I think there is going to be a real good match between buyers and sellers. The sellers I think, how the regulators are dealing with the bank system as we talked about before, there is not a huge pressure to sell. Although there's a huge backlog of things to sell, yet it doesn’t seem to be a commensurate pressure. So I can't tell you when things are going to start to necessarily let loose and without that pressure you may not see fire sales. As you look at it, as we all witness and you all write about it, you are seeing, when the REIT's price, the stock goes up and they can afford to pay more, then sellers want to sell. But when the price goes, their stock goes down, the sellers don't want to sell. So as we said, we keep seeing stuff. We are being opportunistic. We are looking at interesting deals and I am confident we'll (inaudible) soon.

And Jonathan what I would add is that Bill Reynolds liked to use the term REIT food in that there are certain properties out there that we're not going to chase after. The stuff that we tend to be looking at and we think as our wheel houses, stuff where we can add value, where we can step in and do something and really add value. So there are a lot of different types of properties out there and I don't necessarily see us going head-to-head with REITs on lots of properties.

To build on what Doug said, our strategy is to do stuff where we’ve got a long history of coming in and adding value by, repositioning and we have things like that. When you buy something that you have to add value that way as opposed to just playing cycle, you've got to give a little more room for air, because you are just buying something that you are just buying for cash flow that you can't affect changes you just have to write about where you are in the cycle. In our case it's sort of a double win because if we can do it, we're going to buy something right, we're going to add value by improving management, maybe improving the physical plant, changing marketing orientation and then on top of that we believe it’s a good time to be buying things.

(Operator Instructions). And at this time there are no other questions in the queue. I'll turn the call to Mr. Neis for any additional or closing comments.

Well thank you. You guys are really at us today. We certainly would like to thank you once again for joining us today. We look forward to talking to you again this time in July when we release our fourth quarter and year-end fiscal 2012 results. Thank you and have a great day.

And ladies and gentlemen, this concludes your presentation. You may disconnect and have a good day.