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Mar 26, 2020
Marcus Q1 2020 Earnings Report
Reported first quarter fiscal 2020 results impacted by temporary property closures and nonrecurring expenses related to the COVID-19 pandemic.
Key Takeaways
The Marcus Corporation faced unprecedented challenges in Q1 due to the COVID-19 pandemic, leading to temporary closures of movie theatres, restaurants, bars, hotels and resorts. Results were further reduced by non-recurring expenses and impairment charges related to the temporary closures.
Temporarily closed movie theatres on March 17, 2020, following CDC guidance.
Temporarily closed restaurants and bars on March 17, 2020, and five of eight company-owned hotels and resorts on March 24, 2020.
Comparable company-owned hotels' RevPAR decreased 14.5% due to the COVID-19 pandemic.
Added a new $90.8 million term loan to further solidify the company’s balance sheet and increase its liquidity.
Forward Guidance
The company anticipates a strong film slate for 2021, including films originally scheduled for 2020. They look forward to gradually and safely ramping up their businesses and once again delivering the exceptional experiences people enjoy at our movie theatres, hotels and restaurants
Positive Outlook
- Significant number of films currently scheduled to hit the box office during the second half of the year which the company expects will appeal to a broad audience base.
- Anticipated film slate for 2021 is expected to be very strong as it now includes several films that were originally scheduled for 2020.
- Company is on strong financial footing that they believe will help sustain our business and weather the challenges created by the COVID-19 pandemic.
- Nation now beginning to make plans for reopening its economy.
- Looking forward to gradually and safely ramping up our businesses and once again delivering the exceptional experiences people enjoy at our movie theatres, hotels and restaurants
Challenges Ahead
- Numerous films scheduled to be released during the second quarter have been postponed due to the COVID-19 pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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