The Marcus (MCS) Q4 2021 earnings summary

Executive summary

• Recovery accelerated in H2 2021; positive net earnings returned in Q3 and Q4, and full-year Adjusted EBITDA turned positive.

• All theatres were open by year-end; all eight owned hotels and resorts contributed to the hotels division’s return to full-year profitability.

Financial highlights

• FY2021 revenue was $458.2M vs. $237.7M in FY2020; operating loss narrowed to $41.5M from $178.4M.

• Net loss attributable to shareholders was $43.3M vs. $124.8M; diluted EPS was $(1.42) vs. $(4.13).

• Adjusted EBITDA was $35.1M vs. $(71.6)M; FY2021 results included $10.7M in grants and tax credits and $5.8M in impairment charges.

• Operating cash flow was $46.3M, compared with cash used of $68.6M in FY2020.

Outlook and guidance

• FY2022 cash capital expenditures were forecast at $35M–$45M, including $15M–$20M for theatres and $20M–$25M for hotels and resorts.

• Theatre revenues were expected to improve through FY2022 but remain below FY2019 levels; closer-to-normal performance was anticipated progressively from FY2023.

• Hotel results were expected to improve sequentially, while business and group travel were expected to lag pre-pandemic levels through FY2022.

• FY2022 effective tax rate was estimated at 24%–26%, excluding potential tax changes or one-time benefits.