The Marcus (MCS) Q4 2023 earnings summary

Executive summary

• FY2023 results improved as a diverse film slate supported theatre growth, while healthy leisure travel and stronger group events aided hotel performance.

• FY2023 revenue rose 7.7% to $729.6M; operating income increased to $33.9M from $8.3M, and net earnings were $14.8M versus a $12.0M net loss.

Financial highlights

• Q4 FY2023 revenue was $161.5M, down 0.9% YoY; operating income was $1.2M versus a $2.7M loss, and net loss narrowed to $1.4M from $9.3M.

• Q4 diluted loss per share was $0.05 versus $0.30; Adjusted EBITDA increased 10.1% to $18.2M.

• FY2023 diluted EPS was $0.46 versus a $0.39 loss; Adjusted EBITDA rose 27.8% to $108.7M.

Outlook and guidance

• Fiscal 2024 film quantity is expected to be lower due to production delays from WGA and SAG-AFTRA strikes; multiple releases are contributing to early FY2024 results, with further schedule changes possible.

• FY2024 group booking pace is ahead of comparable prior-year pace even excluding the Republican National Convention; FY2025 group pace and FY2024–25 banquet and catering pace are also ahead YoY.

• Renovations at The Pfister Hotel and Grand Geneva Resort & Spa are nearing completion; Grand Geneva meeting and event space work is expected to finish in spring 2024.