Good morning everyone and welcome to The Marcus Corporation Fourth Quarter Earnings Conference Call. My name is Bruce 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'd like to turn the program over to Mr. Neis for his opening remarks. Please go ahead, sir.

Thank you very much. Welcome everybody to our fiscal 2017 fourth quarter and year-end conference call. As usual, you know 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 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 Regulation G disclosures, when applicable, on our Web-site at www.marcuscorp.com. So with that behind us, let's talk about our fiscal 2017 fourth quarter and our completed fiscal year. As our press release noted, we are reporting record revenues, record operating income and record net earnings for the quarter and the fiscal year, thanks to a record performance from our Theatres division in both periods, once again outperforming industry, and a nice gain on the sale of one of our hotel [indiscernible]. You add to that of course that we also had a significant tax adjustment due to the…

Thanks Doug. I'll begin my remarks today with our Theatres division. I think we can all agree that it was quite the rollercoaster year. On the heels of a record fiscal 2016, fiscal 2017 started off with a record first quarter and everyone was feeling great about our business. Of course as we now know, everything was about the change and all that momentum came to a halt with a challenging second and third quarter where the film product just didn't perform. That naturally led to all the inevitable articles about the future of the movie theatre business. Yet here we sit today reporting another record quarter and year for Marcus theatres, once again outperforming the industry, and yes, we had Star Wars in December. But we also are comparing our results to a quarter with a significant Screenvision one time incentive payment. So this accomplishment should not be minimized. The honest truth is that fiscal 2017 was a very good year, but not quite the year we had hoped for. It's hard to make up for underperforming films during our peak summer movie season. But as you've heard me say many times before, it is difficult to predict the box office over the short term, but over the long-term steady growth has proven to be very predictable. It is our job to continue to execute on our operating and investment strategies so that we'll be prepared to capitalize on the movies that are there for us, just like we did during our recently completed fourth quarter. Thus, I want to start my remarks by congratulating Rolando Rodriguez, our management team and the entire theatre operational organization for their performance during the fourth quarter, and for that matter, the entire year. Our press release went through a fair amount of…

[Operator Instructions] Our first question comes from the line of Eric Wold from B. Riley. Your line is now open.

Few questions, I guess one, obviously you had great outperformance in the Theatres division in Q4 relative to the industry. If you drill down for what data you do have to your theatre level or maybe a smaller regional level, can you talk about the outperformance you see, maybe not specifically but anything you can read from the outperformance trends of one theatre, one region versus another in terms of maybe what some theatres offer their consumers in terms of amenities and whatnot versus others did not and how that will be addressed? And then anything that underperformed noticeably that you can point to?

I guess I could just say, generally, Eric, in sort of highlights that we talked about on our prepared remarks is that where we are making these investments we are seeing our outperformance. We are seeing – and what we saw we'd call the legacy circuit. As we made the investments in the amenities, in the recliner during the DreamLoungers, those investments are paying off and I can't really point to anything specifically. Does everything work as planned? Actually I wish I could tell you everything worked better than planned, but overall we're very pleased with the performance and we can see it, it is highlighted.

Eric, maybe what I would add to that is, and you've been with us through this whole journey here, at one point in time I don't think I was throwing around numbers saying that we thought we were going to get to 65% penetration with the DreamLoungers for example, when we met couple of years ago where we might have been. We are up to that number and we are going farther because one of the reasons is that it's proven to continue to work even as we started getting into some markets where there was no market share to steal from anybody. I mean this past year we've done a few markets where we're the only game in town and there are smaller markets and we've seen some results that have been very pleasing. And again, as Greg said, not every single one of them is going to be a homerun but we've had some encouraging results in some markets that probably weren't initially in our radar. And so that's probably allowed us to continue to move this along.

I think what we are seeing there, I'll build on it a little bit, Doug, and that is, first of all, even in our smaller markets we tend to have pretty good facilities. We don't [indiscernible] on the small markets. So then when we go do this, we really get a state of the art theatre in those markets. And then what I think we're seeing, and I have not – I haven't seen the data yet, so any of the people who are listening they know they are going to get here this question, but we think what we're seeing, and we can see it because we can see it through our markets rewards data, I think we're going to just find that people are driving farther in those other markets to come to our theatres.

That's helpful. And then just on the capital structure, you lowered your appetite obviously for additional acquisitions. Maybe remind me where you are now into the leverage and what would be the high end of your comfort level?

From the traditional kind of balance sheet debt capitalization ratio, we're at 40% right now. And if you look at our debt-to-EBITDA, I mean we are in the 2s, right, and then somewhere in that range to announce something with that. So, we have got a lot of room, Eric. We've got certainly plenty of availability on our existing bank agreements. We certainly have access to additional capital beyond that. We have historically said that 50% debt cap is kind of a number where we – if you just look historically, I don't think we've really ever been much above that. Our credit agreements allow us to go farther than that. But again, we play for the long-term, and so if there were some reasons to go farther, we could always fix that after the fact, but I got to be honest with you. Right now we spend $80 million next year in CapEx that I talked about on the high-end of that range. Given the cash flow we are generating from our business, that 40% might even go down. So, we certainly have room, Eric.

And we have desire, but our strategies, we need to be able to add value. And our value added is what we think one of our team's skill set, relying on the team. Their skill set is, going and taking something and fixing it up, investing capital in something and making more out of it. That's really the kind of things we look for and I guess – I think you said appetite, I think the guy I can think of is Austin Powers in Get In My Belly. We're certainly not like the use of a movie quotes. We're not at [indiscernible].

We throw a lot of movie quotes around here, Eric, just so you know.

I can imagine. Last question, switching to the hotel side, so it's been year-over-year since the Wehrenberg acquisition, at that time I know the acquisition was not done anticipating a 1031 as a part of the approval process but you thought there was an opportunity possibly for a reverse 1031 to take advantage of that. Nothing has happened, obviously we don't know the timeframe of a reverse 1031 versus a normal, which is the normal six months, but nothing has happened. So I guess what should we read into that? Has there been interest in the hotel that you indicated for sale with no prices you want to see, has there not been interest, and I guess how does that impact your ability to kind of use hotel monetization in 1031 exchanges as kind of an additional growth strategy going forward?

I'll start and then I'll see if Doug wants to add anything. Our first choice is to do that, but the pricing has to be right. I think what you saw in the hotel market, which was pretty well known, is that it did get pretty – the transaction market got relatively quiet last year, the REITs were out of the game. We are starting to hear, we're starting to see some more some activity picking up as people – because people are wondering where you are in the cycle, but they are starting to see there's been this discussion where all those cycles in prolonged, reinvigorated. But again, it comes back to we're going to make the best decision that we can make. We were not trying to sell something just to sell, but if the price is right and the opportunity is there and it lines up, we look at all the factors and then make a decision. Now the tax law changing is going to impact that as well.

I mean I guess speaking specifically to those types of issues, Eric, I mean, look, as you correctly noted, it's a little less clear how much time you have on the reverse 1031 versus a 1031. So, certainly that window is still open for us, but all of the facts have to be correct. And so it really will depend on things. So again, just like when we bought Wehrenberg without calling anything, we're not sitting here today making these sort of decisions based on assuming that something like that will happen. And then to Greg's point, obviously since the tax impact is one of the key components for us in making decisions about what assets could be sold and for how much, the fact that the effective tax rate on gains is going to go down certainly does change the math. Whether that makes a difference or not, it's going to be on an asset by asset basis, but that certainly will change the math a little bit.

And by the way, it wasn't like there was no activity to see this year. Madison was sold, the Westin Atlanta was sold, and we participated in those.

That's fair. Thank you, guys.

Our next question comes from the line of Jim Goss with Barrington Research. Your line is now open.

Staying on the hotel theme for the moment, you do seem to be having some success in getting some management contracts, which is always a challenge if you're not going to own the property, and I'm wondering how valuable all the awards you point to in terms of the qualities of your hotels and the industry's reception, how valuable those are in terms of securing some of the contracts you've been able to get? And also, are you getting, are you still looking at sliver equity in some of the new properties?

I'll tell you this much, I don't think the awards hurt. It's good. Look, I think they just emphasize what I think the sophisticated investors who are investing in these properties do understand, and that is they look at what we – we aren't an unknown quantity, we're not a new entity doing the hotel business, 56 years now since 1962 when my dead grandfather bought the Pfister in Milwaukee. So, I think it just chose our consistency and the fact that we were able to continue to perform at a high level And yes, we look for sliver equity. We have in some of the projects we have some sliver equity as well. So we will continue to do that.

So, how active and methodical is this process of trying to generate these new management contracts? Are there a certain number of people dedicated as a staff to scouring the country for these sort of opportunities or is it just as they happen to, if you become aware of them?

No, we've been deliberate about it. A management contract is like a product. That's not to say it's like toothpaste. We're out there selling it. So, we have people who are devoted to finding these opportunities for us.

And then what I would add to that, Jim, is that then there is the money side of things, and so we have one effort, and it kind of works hand in hand, but one effort is out there looking for these deals, looking for these transactions, looking for the management contracts. But as we have talked about in the past, on the sliver equity side, on the potential fund side, which is also I think we believe is an opportunity as we go forward to potentially have a little more say in the process by identifying properties and having money ready to go where we can acquire properties off balance sheet but with partners, that's a whole different effort that's also been very active and going on as well.

Okay. And when you bought Wehrenberg, and perhaps even before, you were talking about getting to a stage where you have executed on the theatre receivings and enhancements and that you were beginning to need additional properties in order to renovate, and now it seems like you're getting close to a very late stage in that process even including Wehrenberg. How likely is additional M&A at this stage? How wide in that geographically are you searching? And could you talk about without being precise but just talk in general of where you think the industry stands and your role in the industry right now in that regard?

They are very unpredictable, as you know, Jim. We don't know when someone is going to have that desire. The transaction markets definitely don't like them, the robust transaction market in the lodging industry. Depending on what you want to participate there, it is robust. And we continue to be out there and I think we are viewed as a leader in the industry. I know we are viewed as a leader in the industry. And people know of our interest. And so I think that we're active in the discussions that go on and we will remain disciplined and look for opportunities, and I wish I could tell you something specifically, but we're active, and as Doug said, we have the capacity to do it and we will do it.

And Jim, you've heard me say this before, so I'll just say this kind of for the larger group as well. I mean certainly we do believe that doing nothing in the theatre industry is not an option. We think that obviously it's evidenced by all the investments we've made. So, there are people out there who've got to make some decisions. Some of them are making these investments and others are trying to figure out are they going to come up with the capital to make these investments or not, do they have access to the capital, do they really want to double down the family net worth, whatever it might be. So, certainly I do think that there will continue to be that pressure in the industry to be able to make these investments. Food and beverage is not easy, it's difficult, we're really good at it. So for all those reasons, I think if you look, come back to our balance sheet, our balance sheet is in great shape, we're certainly a logical player if someone wants to take that next step. It's just, obviously again, it's very hard to predict. I mean I wish I could go putting a percentage on it, Jim, but it's just too hard.

All right. Just one last thing, Greg, I liked your comment that fiscal 2018 looks good, but it always does by the way, and that's very true. So I'm wondering, do you always try to guess internally? How has it worked out so far relative to your expectations and what do you think now?

I never guess. I mean maybe in my head I have a few thoughts, but having been around this long enough, it is impossible to guess. I mean I could tell you right now some of the smartest people in my Company, and our Company here could never have guessed the Black Panther was go this weekend. It just didn't hit at all that this business is a business about the original thing in Hollywood that every movie is R&D except the sequel. And so, I find guessing relatively futile. Our job is to maximize every potential revenue dollar that we can get in the place, and then based on the cards that were dealt, and then to make sure that we bring as much to the bottom line as we can. Those are our key responsibilities. We cannot predict the film for the most part.

What I will add to that, Jim, is that I think we're really, really good at, and I'm really talking about our whole team and some of them listening this call right now, we're really good at then being very reactive and quick and moving very quickly when we see what actually happens, right. Everyone tries to guess. I mean, Black Panther, everyone tried to guess what was going to happen, and then when what actually happened, happened, I think that one of the places where we had value is we move very quickly and adjust accordingly and obviously with being all digital, that certainly gives us – and everyone else is all-digital as well, but I think we're just really good in reacting and adding screens and show times and doing and changing and adapting from a labor model perspective, et cetera, et cetera. And so, I think that's been one of the places where we've been quite successful and I think this past weekend was a prime example of that.

All right, good answers. Thank you both.

Our next question comes from the line of Mike Hickey from The Benchmark. Your line is now open.

Congrats on one of the great quarters here. So, just curious I guess on Wehrenberg, you sort of highlighted that, Greg, and sounds like it's really starting to get some traction into your fiscal Q1. Maybe it's obvious since it's the recliners and the amenities that you are putting in there, but I'm just sort of wondering if you could perhaps give us little bit more insight there. Obviously that network is about 20% I think of your total, and a fair amount to trade, now it looks like it's going to be obviously within your comparable performance for all of 2018, and wondering if that's sort of the key here to your upside if you have it, which we expect obviously in Q1 in 2018 on the theatre side.

I do want to just add one thing before I answer your question directly, Mike. I think it's important that we pointed it out in the call that a huge thing is physically fixing up the assets, but it's not just that. It is the marketing programs that we bring along with us, the $5 Tuesday, Student Day, all those specials that we do, the MMR, our Magical Movie Rewards program really is and we're up to about 2.6 million members, and there is some opportunity in those markets to grow as well. That is a very powerful tool, I've talked about it before, I will continue to talk about it. It is so important for us to own our customers and we're very disciplined about making sure that happens and maximizing and building a relationship with our customers. For the first time, we can actually build the relationship with our customers, which I think is going to continue to pay dividends for many years. Now, taking that question of the upside, so the upside continues to be in expanding those marketing programs, yes. With the Wehrenberg, we're seeing those trends. The Wehrenberg set of assets is probably where the bulk of the opportunity is, but throughout the system we know we continue to see opportunities in food and beverage to maximize that potential as well.

From a number perspective, Mike, I mean you correctly noted, so the Wehrenberg represents 20-some-percent of our overall business. So if they start outperforming by some sizable number in 2018, when you roll that into our overall results, I mean you've got to factor that into it, that they are only 20-some-percent of our overall results. When you look at our core market circuit, look, for the year we outperformed by 1.6%. Yet you saw what happened in the fourth quarter, it was over 500 basis points just because of – that's going to happen occasionally where we're going to have certain quarters where the way those pictures play and everything else, but obviously we're maturing from the Marcus perspective. Everyone else would agree there is competition that is catching up. And so, while we have never once tried to project any sort of out performance numbers, and I'm not going to start doing that today, it's reasonable to expect that the Marcus piece, our goal is to outperform, but we're not going out there and saying we're going to consistently outperform the core Marcus piece by over 5 point, but I certainly think the Wehrenberg piece is going to continue to outperform and you're going to see some of that higher number and can factor that in.

Okay. Thank you, guys. Another tough question, I guess real quick to your concession gross margin, it looked like, if I did my math right, target to the pretty big dip and…

Yes, I'll tell you, Mike. What I would strongly suggest to do is focusing on the year-to-date numbers. As always, some quarterly stuff that goes on and the last year there was in that particular line there was some adjustment, and this year there was a little bit of a swing between operations, the theatre operations line and the food and beverage or the concessions line. Enough to maybe mess with those percentages a little bit but not enough to be material overall. And so, I would certainly suggest that you zoom in on those where our year-to-date percentages are. That's probably more reflective of overall what you're seeing. As we continue to add these food and beverage outlets, that by definition are going to have a little higher cost of sales than our traditional popcorn sort of business.

So if I heard you right, Doug, a little margin pressure maybe in 2018 is just a function of sort of mix there, is that your expectation I guess?

Specifically in the fourth quarter there was just some stuff going on within those line items both this year and last year that I'm just saying that I wouldn't zoom in on that. I mean, I don't know, I did my own math on it too and I think it shows up with like 32% of the concession revenues. That's not a normal percentage and last year was lower because of stuff going on. So, I would really focus in – we've been pretty consistent when you look at what that line item is as a percentage of the concession revenues, and if you look at it from a year-to-date perspective, I think that's really representative of kind of the pace that we generally have in that part of our business, if that makes sense.

Yes, thank you. I guess just maybe back to the first question a touch, obviously Black Panther has been outlier performance here, curious how your circuit is tracking relative to market on that film. And I think you've said Wehrenberg is outperforming in Q1 versus the market, curious how your entire circuit including Wehrenberg is currently performing quarter to date and Black Panther specifically?

I'll let Greg answer the first part. The second part of it, I will just tell you that, yes, I mean look, quarter to date we are outperforming. I mean, again, we're just not going to provide numbers because things can change but we are outperforming.

And the first question specifically about Black Panther, and ditto, I mean we're outperforming on Black Panther. I'll tell you it was very interesting to do the testament to our team. I think that we were sort of just tracking a hair behind, I'm not sure we were close, because we look at the numbers literally every day. So, on Friday the team moved – Friday night the place was a beehive, they made changes, they added screens, and we actually started to outperform. And so, it was really cool to see that. And it was a little surprising that film we thought might play better in the coastal markets where we don't have as much of a presence, but a Playball for us too. It played well everywhere. It's been great, really it's been nice to see.

Good. Last question from me, I'm not sure how much we've talked about on MoviePass, but obviously they have grown their subscriber base, and it looks like they are sort of using that as a leverage against some operators in terms of desiring a share or subsidy. I guess just your thoughts here on that sort of what they are up to and how maybe it could impact your business or is impacting it?

I guess what I will want to say is that we're watching what they are doing. They've obviously tapped into something, but I'm not sure what that ultimately means. But what they are doing it's interesting, and I think I'm going to leave it at that.

Okay. Thanks guys. Good luck.

Our next question comes from the line of [Brian] [ph] with [indiscernible]. Your line is now open.

Just a point of clarification, the Wehrenberg circuit, are you guys about finished with renovations there, because I'm assuming they are kind of you're not changing a couple of light bulbs, that's a floor to ceiling turnkey type renovation?

Yes, it really is, Brian. I mean when we go into these theatres, pretty much all the time. Sometimes there's economics that comes into play in terms of how extensive we do the other stuff, but in general we go in, we are really updating these theatres. I mean the customer ultimately is seeing a brand-new theatre, I mean they really are. And so, we're not just going in and just adding seats, recliner seats into the auditoriums. I mean we are really making these things, improving the movie-going experience from beginning to end, and so it's pretty extensive.

Yes. Now were they digital before you bought them?

They were.

They were, okay. Is there anything from the standpoint when you look at, and I'm going back to looking at some of your market's layout where you might've taken out maybe a birthday room or you might have taken out a video arcade and you put in a Take Five Lounge or Reel Sizzle, how spacious or space constrained are there either for you to be able to do that?

Spacious, they have a lot of room. They were not [indiscernible] on their lobbies.

Okay, all right. That's good. From the standpoint of, is there anything, maybe Greg, you can answer this, is there anything that you might have learned from them, was there anything they might have had, maybe not in food and beverage, any novelties, anything that you might adopt for the overall market gain or is it primarily just you bringing your marketing that powers them?

We do try to go in, but we don't have the market cornered on good ideas. So, actually they had some arcades we have at Ronnie's, which is where the flagship down there, there is an arcade there that we made current and it really is, it's pretty cool. We've been watching how they are doing some of their pricing and watching what they're doing. So, yes, we're looking at them for ideas. I can't tell you there is a huge idea that we got from them, but yes, we're always in a lookout for good ideas, and they were good operators.

Okay. And then how much progress on your $5 Tuesday, what is your $5 College and Thursday or whatever, how much progress in either food and beverage ticket or theatre concession?

Are you just talking about Wehrenberg still or you're talking about just overall?

No, I'm talking about the overall chain, not Wehrenberg. As you had $5, I mean that's a…

Yes, we're making some progress in that, Brian. I mean obviously, by definition Tuesday is a value day and so we try to in turn offer some value opportunities on the food and beverage side as well in order to try to make that really a special day for our customer, and I think we've made some progress. It still has by that very definition the fact that we're giving away free small popcorn to all our loyalty members, it's going to have us a lower per capita than our normal days. But we've made some progress there.

But I think there will continue to be opportunity. To an earlier question, what are the opportunities, there is opportunity there.

Yes, okay. If you guys look at, I know the Greendale Southridge BistroPlex kind of just opened, are you seeing any divergences or maybe a bigger food and beverage ticket or a Queen's BistroPlex standalone versus the old Big Screen Bistro that might be an auditorium within a larger venue?

I think we're seeing pretty much what we expected in terms of average tickets and spend.

And then when you guys had the Black Panther tick-up, you talked about 'we reacted pretty quickly'. When you do a pivot, can you change theatre screens on the same day or is that really something you'll respond to the next day?

There are instances where we will do it on the same day. Obviously the team is looking to not displace customers. It happens occasionally and then it's up to us to do our best to recover from that and take care of the people who we displace. But yes, we can move same day if we have to.

And then relative to the Wehrenberg, your Marcus Magical Rewards program, what's been kind of the early penetration? I think you said you had about 2.6 million participants or whatever. Is that just being rolled out, how is that then early adopter at Wehrenberg?

So, Brian, we mentioned and disclosed previously that they had about 200,000 in their loyalty program, but I will tell you, what we quickly learned is that that wasn't necessarily 200,000 active members. So, we have seen growth in there. I think that when Greg talked about being an opportunity, I think that's one of the areas of opportunity that we continue to – we're still relatively new down there, and so I think as we're continuing to kind of build out this Marcus Wehrenberg brand, I think that's one of our opportunities is to further grow that loyalty program down in those markets. But we have in this past year certainly increased and now have accounts that's active versus maybe what was there before.

And just another one relative to what used to be kind of a first quarter post Christmas graveyard of movies, with the Black Panther and one of the Chris Kyle movie, but are you seeing Hollywood kind of get the sense that maybe there is a moviegoer there between January-March?

Seeing to begin lately, I mean as you know that's been something that we as an industry have been preaching for quite a few years now. And so, yes, it's very encouraging to see that when a picture like this does really well in February, or last year Beauty and the Beast doing really well in March, we think the studios are taking notice of that, and we hope to see more of that.

The dynamic could be that as the performance of movies condenses into shorter periods, having like a President's weekend, that allows you to really maximize and take advantage of it, and I think the studios are seeing that.

Yes, awesome. And then just congratulations to you guys, you and your dad, Greg. I grew up in your [Rip and Tampus] [ph] theatre. Your grandpa would be really proud of you guys.

Thank you very much, Brian.

Thank you, Brian. Appreciate it.

Our last question comes from the line of [indiscernible] from Stifel. Your line is now open.

I've got a couple of quick questions here. How much has the Disney restricted your take on Black Panther, and I know they put some restrictions on you but this movie is doing so well I guess you really can't complain, but have you given up something here?

We can complain. We pretty much complain with every studio and every movie, but we don't talk about individuals. It's set to scale, and so as the film performs, we pay more.

Okay. I mean they restricted you on how many showings in a theatre or whatever but I'm sure you don't mind putting in as many theatres as you can at this point and this movie should have legs hopefully for the next three or four weeks. What do you see looking out beyond Black Panther? I know you don't like to do this but what are your best bets as you look out over the next two or three months?

So, once you get past the Black Panther, I mean in March we mentioned a couple of movies in our press release. There's Red Sparrow with Jennifer Lawrence, I think A Wrinkle in Time, Disney's picture coming out on March 9. You've got a couple of other pictures coming out in mid-March including Tomb Raider and Pacific Rim Uprising. The next big wave of pictures, there's actually a picture opening up at the end of March called Ready Player One, a Steven Spielberg picture, that we hope it does a little bit of business. And then the real, as is always the case every year, then May kind of really becomes the start of the summer. It used to be June, our Memorial Day, but now it's really May. And so on May 4, you got this Avengers Infinity War picture, which maybe not surprisingly, watch their ads right now for this thing, their focus over the Black Panther is a key focus of their advertising now on that. So that's the next big picture that we'll be looking at beginning in May. And they've got another Deadpool, now you've got the Deadpool picture coming out in May, in mid-May. And you've got the Star Wars, kind of the Han Solo special movie coming out right at Memorial Day weekend. And so, as Greg noted, on paper I mean there is some pretty good stuff, so we'll see.

Has the Omaha Marriott hurt the Cornhusker at all, is that a concern? It's about 50 miles away.

No, in fact we think probably ultimately it will be better to have two Marriott projects that we are running and can maximize performance on, because it just gives us so – with the louder voice throughout the market more, we think it will be good.

Have the advanced bookings been pretty good for the Omaha Marriott or is it too soon to tell?

We're pleased.

Okay. Any change in your dividend policy versus your buyback? The fact that you had a good increase in the dividend, is there any comments you can make about this?

We really view those – I mean, look, they are all part of the puzzle that we are always looking at, [Herb] [ph], in terms of our capital expenditures, our use of the cash, I mean our capital expenditures, our buying back, share repurchases, we certainly have pulled that lever in the past. More recently we've been a little more focused on the dividend policy and obviously yesterday's announcement was the largest increase yet. But we talk about all of those options internally all the time, we talk about what the Board here recorded. And so, we always have the option of pivoting from one to the other or utilizing both, but certainly more this past year the focus has been on the dividend side.

So, with the lower tax rate, it's not necessarily going to increase the buyback significantly?

Again, we tend to be very – we have an existing authorization out there right now in the buybacks. We tend to be very opportunistic when it comes to that. We're not a company that just kind of puts their head down because like we said, buybacks are really just buying no matter what. We tend to be very opportunistic in that service very well. So I'm not closing the door to saying we wouldn't do buybacks in the future. It's just that we – and we don't generally telegraph which direction we tend to go either, but we tend to just be very opportunistic as it relates to our uses of cash.

How much do you have left on existing buyback?

About 2.9 million shares.

2.9 million shares, all right. The last thing, you haven't said much about your real estate development project in suburban Milwaukee, but what's going on there, is there any opportunities to monetize that or is it just going along okay?

Herb, I think you're talking about the The Corners in Brookfield, that project we've undertaken, and that project actually is really not our project anymore. A couple of years ago we took on a partner who became the managing member of the LLC that's developed it. That project has opened up, The Corners in Brookfield.

We continue to have a financial interest in it.

We still have a financial interest in this entity, but we don't talk about it and you haven't seen much about it because it's not on our balance sheet, it's not something that rises the level from a materiality standpoint for our public company. But we still have a significant financial interest in it as a minority investor.

Is there a chance that you'd want to monetize this, since it's not really in your normal business? I mean it's obviously not exactly on the radar.

Herb, again, it's not a Marcus Corporation – it's not on our balance sheet, so it's really not appropriate for me to talk about what our future plans might be for that project.

Okay, all right. Keep up the good work. Thanks a lot.

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 comments.

Thank you everybody for joining us today. We look forward to talking to you once again in late April, just a couple of months from now, when we release our fiscal 2018 first quarter results. Till then, thanks and have a great day.

Ladies and gentlemen, thanks for your participation in today's conference. You may all disconnect. Have a great day.