The Marcus (MCS) Q4 2015 earnings summary

Executive summary

• FY2015 revenue reached a record $488.1M, up 9.0% YoY; operating income rose 3.7% to $50.2M.

• Net earnings attributable to shareholders were $24.1M and diluted EPS was $0.87, down 4.0% and 5.4%; excluding unusual non-cash items in FY2014 and FY2015, earnings and EPS were up nearly 12%.

Financial highlights

• FY2015 revenue was $488.1M vs. $447.9M in FY2014; operating income was $50.2M vs. $48.4M.

• Net earnings were $24.0M vs. $25.0M; diluted EPS was $0.87 vs. $0.92.

• Cash dividends per diluted share were $0.39 vs. $0.35, up 11.4%; shareholders’ equity increased 5.4% to $343.8M.

Outlook and guidance

• FY2016 plans include expanding theatre features to more locations, beginning construction on two new theatres, and continuing loyalty, targeted marketing and sales initiatives.

• Hotel growth is expected to focus on management contracts, with minority investments considered in some cases; additional theatre acquisitions remain an option if suitable opportunities arise.

• Planned hotel investments include guest-room, lobby and restaurant renovations at the Skirvin Hilton, plus new bedding and guest amenities at select properties.