The Marcus (MCS) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 revenue declined 15% year-over-year to $176 million, with hotels outperforming and theaters rebounding in June as film supply improved.

• Net loss for Q2 was $20.2 million, impacted by $15 million in debt conversion expense; excluding this, net loss was $5.2 million.

• Adjusted EBITDA fell 43.3% in Q2 to $22 million, reflecting lower theater attendance and debt conversion expense.

Financial highlights

• Q2 2024 revenues: $176 million (down from $207 million in Q2 2023); first half revenues: $314.6 million (down from $359.3 million).

• Q2 operating income: $2.2 million (down from $20.8 million); first half operating loss: $14.4 million.

• Net loss per diluted share: $(0.64) in Q2 (or $0.17 excluding debt conversion expense); first half net loss per share: $1.03 (or $0.56 adjusted).

• Adjusted EBITDA: $22 million in Q2 (down from $38.7 million); $24.3 million for the first half (down from $48.2 million).

• Cash and equivalents at June 27, 2024: $32.8 million; $175.2 million available under $225 million revolving credit facility.

Outlook and guidance

• Hotels expected to continue strong group bookings, with group pace for 2024 up 11% and for 2025 up 36% year-over-year.

• Theaters anticipate a stronger second half as film supply normalizes, with a robust slate for late 2024 and 2025.

• Effective tax rate for 2024 expected in the 5-10% range, excluding one-time items.

• Capital expenditures for 2024 projected at $60–$75 million.