Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-12604 | |
Entity Registrant Name | MARCUS CORP | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1139844 | |
Entity Address, Address Line One | 100 East | |
Entity Address, Address Line Two | Wisconsin Avenue | |
Entity Address, Address Line Three | Suite 1900 | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53202-4125 | |
City Area Code | 414 | |
Local Phone Number | 905-1000 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | MCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000062234 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,395,412 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,110,875 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 57,741,000 | $ 17,658,000 |
Restricted cash | 5,677,000 | 6,396,000 |
Accounts receivable, net of reserves of $169 and $1,001, respectively | 26,273,000 | 28,902,000 |
Government grants receivable | 0 | 4,335,000 |
Refundable income taxes | 0 | 22,435,000 |
Assets held for sale | 521,000 | 4,856,000 |
Other current assets | 19,683,000 | 15,364,000 |
Total current assets | 109,895,000 | 99,946,000 |
Property and equipment: | ||
Land and improvements | 129,802,000 | 129,642,000 |
Buildings and improvements | 766,057,000 | 756,974,000 |
Leasehold improvements | 167,316,000 | 166,060,000 |
Furniture, fixtures and equipment | 383,997,000 | 375,650,000 |
Finance lease right-of-use assets | 75,262,000 | 75,124,000 |
Construction in progress | 3,652,000 | 6,000,000 |
Total property and equipment | 1,526,086,000 | 1,509,450,000 |
Less accumulated depreciation and amortization | 770,460,000 | 738,258,000 |
Net property and equipment | 755,626,000 | 771,192,000 |
Operating lease right-of-use assets | 209,264,000 | 217,072,000 |
Other assets: | ||
Investments in joint ventures | 2,202,000 | 2,335,000 |
Goodwill | 75,052,000 | 75,095,000 |
Deferred incomes taxes | 10,198,000 | 10,032,000 |
Other | 12,398,000 | 12,689,000 |
Total other assets | 99,850,000 | 100,151,000 |
TOTAL ASSETS | 1,174,635,000 | 1,188,361,000 |
Current liabilities: | ||
Accounts payable | 38,335,000 | 35,781,000 |
Income taxes | 283,000 | 0 |
Taxes other than income taxes | 19,219,000 | 19,566,000 |
Accrued compensation | 18,879,000 | 20,474,000 |
Other accrued liabilities | 59,334,000 | 59,678,000 |
Short-term borrowings | 46,628,000 | 47,346,000 |
Current portion of finance lease obligations | 2,489,000 | 2,561,000 |
Current portion of operating lease obligations | 16,291,000 | 16,795,000 |
Current maturities of long-term debt | 11,077,000 | 10,967,000 |
Total current liabilities | 212,535,000 | 213,168,000 |
Finance lease obligations | 16,116,000 | 17,192,000 |
Operating lease obligations | 207,713,000 | 216,064,000 |
Long-term debt | 203,720,000 | 204,177,000 |
Deferred income taxes | 25,125,000 | 26,183,000 |
Other long-term obligations | 56,693,000 | 57,963,000 |
Shareholders’ equity attributable to The Marcus Corporation | ||
Preferred Stock, $1 par; authorized 1,000,000 shares; none issued | 0 | 0 |
Capital in excess of par | 150,565,000 | 145,656,000 |
Retained earnings | 283,364,000 | 289,306,000 |
Accumulated other comprehensive loss | (10,529,000) | (11,444,000) |
Stockholders' equity before treasury stock | 455,009,000 | 454,993,000 |
Less cost of Common Stock in treasury (112,282 shares at June 30, 2022 and 48,111 shares at December 30, 2021) | (2,276,000) | (1,379,000) |
Total shareholders’ equity attributable to The Marcus Corporation | 452,733,000 | 453,614,000 |
Noncontrolling interest | 0 | 0 |
Total equity | 452,733,000 | 453,614,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,174,635,000 | 1,188,361,000 |
Common Stock | ||
Shareholders’ equity attributable to The Marcus Corporation | ||
Common Stock | 24,498,000 | 24,345,000 |
Class B Common Stock | ||
Shareholders’ equity attributable to The Marcus Corporation | ||
Common Stock | $ 7,111,000 | $ 7,130,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 30, 2021 |
Accounts receivable, reserves | $ 169 | $ 1,001 |
Preferred stock, par (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Cost of common stock in treasury (in shares) | 112,282 | 48,111 |
Common Stock | ||
Common stock, par (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 24,498,243 | 24,345,356 |
Class B Common Stock | ||
Common stock, par (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 33,000,000 | 33,000,000 |
Common stock, issued (in shares) | 7,110,875 | 7,130,125 |
Common stock, outstanding (in shares) | 7,110,875 | 7,130,125 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Revenues: | ||||
Revenues | $ 190,305 | $ 89,130 | $ 314,934 | $ 136,584 |
Cost reimbursements | 8,250 | 3,417 | 15,863 | 6,750 |
Total revenues | 198,555 | 92,547 | 330,797 | 143,334 |
Costs and expenses: | ||||
Advertising and marketing | 5,978 | 3,819 | 10,459 | 6,368 |
Administrative | 17,627 | 15,963 | 36,708 | 29,279 |
Depreciation and amortization | 16,752 | 18,494 | 33,983 | 36,473 |
Rent | 6,578 | 6,344 | 12,828 | 12,685 |
Property taxes | 4,980 | 4,468 | 9,725 | 9,207 |
Other operating expenses | 9,261 | 8,628 | 18,935 | 13,418 |
Impairment charges | 0 | 0 | 3,732 | |
Reimbursed costs | 8,250 | 3,417 | 15,863 | 6,750 |
Total costs and expenses | 179,662 | 118,657 | 328,701 | 205,105 |
Operating income (loss) | 18,893 | (26,110) | 2,096 | (61,771) |
Other income (expense): | ||||
Investment income (loss) | (459) | 120 | (727) | 160 |
Interest expense | (4,063) | (4,907) | (8,155) | (9,750) |
Other expense | (584) | (628) | (1,161) | (1,256) |
Gain (loss) on disposition of property, equipment and other assets | (69) | (164) | 355 | 2,040 |
Equity earnings ( losses) from unconsolidated joint ventures | 7 | 0 | (134) | 0 |
Nonoperating income (expense), total | (5,168) | (5,579) | (9,822) | (8,806) |
Earnings (loss) before income taxes | 13,725 | (31,689) | (7,726) | (70,577) |
Income tax expense ( benefit) | 4,765 | (8,323) | (1,784) | (19,081) |
Net earnings (loss) | 8,960 | (23,366) | (5,942) | (51,496) |
Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to The Marcus Corporation | $ 8,960 | $ (23,366) | $ (5,942) | $ (51,496) |
Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Common stock (in dollars per share) | $ 0.29 | $ (0.76) | $ (0.19) | $ (1.71) |
Net earnings (loss) per share - diluted: | ||||
Common stock (in dollars per share) | 0.24 | (0.76) | (0.19) | (1.71) |
Class B Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Common stock (in dollars per share) | 0.26 | (0.68) | (0.18) | (1.44) |
Net earnings (loss) per share - diluted: | ||||
Common stock (in dollars per share) | $ 0.23 | $ (0.68) | $ (0.18) | $ (1.44) |
Theatre admissions | ||||
Revenues: | ||||
Revenues | $ 63,087 | $ 24,915 | $ 101,504 | $ 35,600 |
Rooms | ||||
Revenues: | ||||
Revenues | 28,865 | 17,332 | 46,295 | 26,376 |
Costs and expenses: | ||||
Costs | 10,471 | 7,072 | 18,674 | 12,337 |
Theatre concessions | ||||
Revenues: | ||||
Revenues | 58,147 | 23,061 | 93,611 | 32,980 |
Costs and expenses: | ||||
Costs | 22,993 | 10,037 | 38,186 | 14,533 |
Food and beverage | ||||
Revenues: | ||||
Revenues | 19,014 | 9,591 | 33,525 | 15,503 |
Costs and expenses: | ||||
Costs | 15,035 | 7,806 | 27,175 | 13,176 |
Other revenues | ||||
Revenues: | ||||
Revenues | 21,192 | 14,231 | 39,999 | 26,125 |
Theatre operations | ||||
Costs and expenses: | ||||
Costs | $ 61,737 | $ 28,877 | $ 106,165 | $ 47,147 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 8,960 | $ (23,366) | $ (5,942) | $ (51,496) |
Other comprehensive income (loss), net of tax: | ||||
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect of $67, $86, $134 and $172 , respectively | 190 | 242 | 380 | 484 |
Fair market value adjustment of interest rate swap, net of tax effect (benefit) of $37, $(2), $116 and $4, respectively | 106 | (7) | 329 | 10 |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect of $31, $43, $72 and $111, respectively | 88 | 121 | 206 | 314 |
Other comprehensive income | 384 | 356 | 915 | 808 |
Comprehensive income (loss) | 9,344 | (23,010) | (5,027) | (50,688) |
Comprehensive earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to The Marcus Corporation | $ 9,344 | $ (23,010) | $ (5,027) | $ (50,688) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect | $ 67 | $ 86 | $ 134 | $ 172 |
Fair market value adjustment of interest rate swap, net of tax effect | 37 | (2) | 116 | 4 |
Reclassification adjustment related to interest rate swap de-designation, net of tax effect | $ 31 | $ 43 | $ 72 | $ 111 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jul. 01, 2021 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (5,942) | $ (51,496) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Losses on investments in joint ventures | 134 | 0 |
Gain on disposition of property, equipment and other assets | (355) | (2,040) |
Impairment charges | 0 | 3,732 |
Depreciation and amortization | 33,983 | 36,473 |
Amortization of debt issuance costs | 826 | 1,244 |
Share-based compensation | 4,572 | 4,152 |
Deferred income taxes | (1,505) | (19,181) |
Other long-term obligations | (49) | 1,180 |
Contribution of the Company’s stock to savings and profit-sharing plan | 956 | 1,012 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,629 | (4,944) |
Government grants receivable | 4,335 | 4,913 |
Other assets | (4,294) | (1,712) |
Operating leases | (1,047) | (2,484) |
Accounts payable | 551 | 6,369 |
Income taxes | 22,720 | 6,003 |
Taxes other than income taxes | (347) | (654) |
Accrued compensation | (1,595) | 6,650 |
Other accrued liabilities | (344) | 1,102 |
Total adjustments | 61,170 | 41,815 |
Net cash provided by (used in) operating activities | 55,228 | (9,681) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (16,341) | (6,195) |
Proceeds from disposals of property, equipment and other assets | 4,821 | 4,297 |
Purchase of trading securities | 0 | (1,906) |
Other investing activities | 45 | 59 |
Net cash used in investing activities | (11,475) | (3,745) |
Debt transactions: | ||
Proceeds from borrowings on revolving credit facility | 22,000 | 66,500 |
Repayment of borrowings on revolving credit facility | (22,000) | (46,500) |
Repayments on short-term borrowings | (820) | (4,150) |
Principal payments on long-term debt | (851) | (187) |
Debt issuance costs | 0 | (4) |
Principal payments on finance lease obligations | (1,336) | (1,329) |
Equity transactions: | ||
Treasury stock transactions, except for stock options | (1,461) | (1,236) |
Exercise of stock options | 79 | 1,374 |
Net cash (used in) provided by financing activities | (4,389) | 14,468 |
Net increase in cash, cash equivalents and restricted cash | 39,364 | 1,042 |
Cash, cash equivalents and restricted cash at beginning of period | 24,054 | 14,088 |
Cash, cash equivalents and restricted cash at end of period | 63,418 | 15,130 |
Supplemental Information: | ||
Interest paid, net of amounts capitalized | 7,054 | 7,719 |
Income taxes refunded, including interest earned | 22,998 | 5,910 |
Change in accounts payable for additions to property, equipment and other assets | $ 2,003 | $ 400 |
General
General | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation - The unaudited consolidated financial statements for the 13 and 26 weeks ended June 30, 2022 and July 1, 2021 have been prepared by the Company. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary to present fairly the unaudited interim financial information at June 30, 2022, and for all periods presented, have been made. The results of operations during the interim periods are not necessarily indicative of the results of operations for the entire year or other interim periods. However, the unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2021. Accounting Policies - Refer to the Company’s audited consolidated financial statements (including footnotes) for the fiscal year ended December 30, 2021, contained in the Company’s Annual Report on Form 10-K for such year, for a description of the Company’s accounting policies. Noncontrolling Interests - The Company has an ownership interest greater than 50% in one joint venture that is considered a Variable Interest Entity (VIE) that is included in the accounts of the Company. The Company is the primary beneficiary of the VIE and the Company’s interest is considered a majority voting interest. The equity interest of outside owners in consolidated entities is recorded as noncontrolling interests in the consolidated balance sheets, and their share of earnings is recorded as net earnings (loss) attributable to noncontrolling interests in the consolidated statements of earnings (loss) in accordance with the partnership agreement. Due to the cumulative losses of the entity, the noncontrolling interest balance is $0 as of June 30, 2022 and December 30, 2021. The Company will not record earnings or losses from noncontrolling interest until the entity returns to profitability. Depreciation and Amortization - Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the estimated useful lives of the assets or any related lease terms. Depreciation expense totaled $16,744 and $33,967 for the 13 and 26 weeks ended June 30, 2022, respectively, and $18,475 and $36,433 for the 13 and 26 weeks ended July 1, 2021, respectively. Assets Held for Sale – Long-lived assets that are expected to be sold within the next 12 months and meet the other relevant held-for-sale criteria are classified as assets held for sale and included within current assets on the consolidated balance sheet. Assets held for sale are measured at the lower of their carrying value or their fair value less costs to sell the asset. As of June 30, 2022, assets held for sale consists primarily of excess land. Long-Lived Assets – The Company periodically considers whether indicators of impairment of long-lived assets held for use are present. This includes quantitative and qualitative factors, including evaluating the historical actual operating performance of the long-lived assets and assessing the potential impact of recent events and transactions impacting the long-lived assets. If such indicators are present, the Company determines if the long-lived assets are recoverable by assessing whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than their carrying amounts. If the long-lived assets are not recoverable, the Company recognizes any impairment losses based on the excess of the carrying amount of the assets over their fair value. There were no indicators of impairment identified during the 26 weeks ended June 30, 2022. Goodwill – The Company reviews goodwill for impairment annually or more frequently if certain indicators arise. The Company performs its annual impairment test on the first day of the fiscal fourth quarter. There were no indicators of impairment identified during the 26 weeks ended June 30, 2022 or July 1, 2021. Earnings (Loss) Per Share - Net earnings (loss) per share (EPS) of Common Stock and Class B Common Stock is computed using the two class method. Basic net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding. Diluted net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options and convertible debt instruments using the if-converted method. Convertible Class B Common Stock and convertible debt instruments are reflected on an if-converted basis when dilutive to Common Stock. The computation of the diluted net earnings (loss) per share of Common Stock assumes the conversion of Class B Common Stock in periods that have net earnings since it would be dilutive to Common Stock earnings per share, while the diluted net earnings (loss) per share of Class B Common Stock does not assume the conversion of those shares. Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of Class B Common Stock. As such, the undistributed earnings (losses) for each period are allocated based on the proportionate share of entitled cash dividends. The following table illustrates the computation of Common Stock basic and diluted net earnings (loss) per share and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: 13 Weeks Ended 26 Weeks Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Numerator: Net earnings (loss) attributable to The Marcus Corporation $ 8,960 $ (23,366) $ (5,942) $ (51,496) Denominator: Denominator for basic EPS 31,492 31,404 31,469 31,300 Effect of dilutive employee stock options 40 — — — Effect of convertible notes 9,085 — — — Denominator for diluted EPS 40,617 31,404 31,469 31,300 Net earnings (loss) per share - basic: Common Stock $ 0.29 $ (0.76) $ (0.19) $ (1.71) Class B Common Stock $ 0.26 $ (0.68) $ (0.18) $ (1.44) Net earnings (loss) per share - diluted: Common Stock $ 0.24 $ (0.76) $ (0.19) $ (1.71) Class B Common Stock $ 0.23 $ (0.68) $ (0.18) $ (1.44) For the periods when the Company reports a net loss, common stock equivalents are excluded from the computation of diluted loss per share as their inclusion would have an antidilutive effect. During the 26 weeks ended June 30, 2022, and the 13 and 26 weeks ended July 1, 2021, approximately 61,791, 165,439 and 142,746 common stock equivalents, respectively, were excluded from the computation of diluted loss per share due to the Company’s net loss. During the 26 weeks ended June 30, 2022, and the 13 and 26 weeks ended July 1, 2021, 9,084,924 shares related to the convertible notes were excluded from the computation of diluted loss per share as the effect would have been anti-dilutive. Shareholders’ Equity - Activity impacting total shareholders’ equity attributable to The Marcus Corporation and noncontrolling interest for the 13 and 26 weeks ended June 30, 2022 and July 1, 2021 was as follows: Common Class B Capital Retained Accumulated Treasury Shareholders’ Non- Total BALANCES AT DECEMBER 30, 2021 $ 24,345 $ 7,130 $ 145,656 $ 289,306 $ (11,444) $ (1,379) $ 453,614 $ — $ 453,614 Exercise of stock options — — (5) — — 31 26 — 26 Purchase of treasury stock — — — — — (1,373) (1,373) — (1,373) Savings and profit-sharing contribution 56 — 900 — — — 956 — 956 Reissuance of treasury stock — — 1 — — 8 9 — 9 Issuance of non-vested stock 78 — (236) — — 158 — — — Shared-based compensation — — 2,917 — — — 2,917 — 2,917 Other — — 1 (1) — — — — — Conversions of Class B Common Stock 19 (19) — — — — — — — Comprehensive income (loss) — — — (14,902) 531 — (14,371) — (14,371) BALANCES AT MARCH 31, 2022 $ 24,498 $ 7,111 $ 149,234 $ 274,403 $ (10,913) $ (2,555) $ 441,778 $ — $ 441,778 Exercise of stock options — — (16) — — 69 53 — 53 Purchase of treasury stock — — — — — (104) (104) — (104) Reissuance of treasury stock — — (2) — — 9 7 — 7 Issuance of non-vested stock — — (305) — — 305 — — — Shared-based compensation — — 1,655 — — — 1,655 — 1,655 Other — — (1) 1 — — — — — Comprehensive income — — — 8,960 384 — 9,344 — 9,344 BALANCES AT JUNE 30, 2022 $ 24,498 $ 7,111 $ 150,565 $ 283,364 $ (10,529) $ (2,276) $ 452,733 $ — $ 452,733 Common Class B Capital Retained Accumulated Treasury Shareholders’ Non- Total BALANCES AT DECEMBER 31, 2020 $ 23,264 $ 7,926 $ 153,529 $ 331,897 $ (14,933) $ (2,960) $ 498,723 $ — $ 498,723 Adoption of ASU No. 2020-06 — — (16,511) 702 — — (15,809) — (15,809) Exercise of stock options — — (659) — — 1,951 1,292 — 1,292 Purchase of treasury stock — — — — — (1,181) (1,181) — (1,181) Savings and profit-sharing contribution 44 — 968 — — — 1,012 — 1,012 Reissuance of treasury stock — — 2 — — 10 12 — 12 Issuance of non-vested stock 221 — (367) — — 146 — — — Shared-based compensation — — 1,484 — — — 1,484 — 1,484 Other — — — (1) — 1 — — — Conversions of Class B Common Stock 520 (520) — — — — — — — Comprehensive income (loss) — — — (28,130) 452 — (27,678) — (27,678) BALANCES AT APRIL 1, 2021 $ 24,049 $ 7,406 $ 138,446 $ 304,468 $ (14,481) $ (2,033) $ 457,855 $ — $ 457,855 Exercise of stock options — — (40) — — 122 82 — 82 Purchase of treasury stock — — — — — (73) (73) — (73) Reissuance of treasury stock — — (1) — — 7 6 — 6 Issuance of non-vested stock 18 — (157) — — 139 — — — Shared-based compensation — — 2,668 — — — 2,668 — 2,668 Conversions of Class B Common Stock 275 (275) — — — — — — — Comprehensive income (loss) — — — (23,366) 356 — (23,010) — (23,010) BALANCES AT JULY 1, 2021 $ 24,342 $ 7,131 $ 140,916 $ 281,102 $ (14,125) $ (1,838) $ 437,528 $ — $ 437,528 Accumulated Other Comprehensive Loss – Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: June 30, December 30, Unrecognized gain (loss) on interest rate swap agreements $ 26 $ (509) Net unrecognized actuarial loss for pension obligation (10,555) $ (10,935) $ (10,529) $ (11,444) Fair Value Measurements - Certain financial assets and liabilities are recorded at fair value in the consolidated financial statements. Some are measured on a recurring basis while others are measured on a non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. A fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s assets and liabilities measured at fair value are classified in one of the following categories: Level 1 - Assets or liabilities for which fair value is based on quoted prices in active markets for identical instruments as of the reporting date. At June 30, 2022 and December 30, 2021, respectively, the Company’s $3,789 and $4,617 of debt and equity securities classified as trading were valued using Level 1 pricing inputs and were included in other current assets. At June 30, 2022 and December 30, 2021, respectively, the Company’s $44,990 and $5,000 of investments in money market accounts were valued using Level 1 pricing inputs and were included in cash and cash equivalents. Level 2 - Assets or liabilities for which fair value is based on pricing inputs that were either directly or indirectly observable as of the reporting date. At June 30, 2022 and December 30, 2021, respectively, the Company’s $34 asset and $689 liability related to the Company’s interest rate swap contract was valued using Level 2 pricing inputs. Level 3 - Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. At June 30, 2022 and December 30, 2021, none of the Company’s recorded assets or liabilities that are measured on a recurring basis at fair market value were valued using Level 3 pricing inputs. Assets and liabilities that were measured on a non-recurring basis are discussed in Note 3. Defined Benefit Plan - The components of the net periodic pension cost of the Company’s unfunded nonqualified, defined-benefit plan are as follows: 13 Weeks Ended 26 Weeks Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Service cost $ 264 $ 280 $ 528 $ 561 Interest cost 335 301 670 601 Net amortization of prior service cost and actuarial loss 257 327 514 655 Net periodic pension cost $ 856 $ 908 $ 1,712 $ 1,817 Service cost is included in Administrative expense while all other components are recorded within Other expense outside of operating income in the consolidated statements of earnings. Revenue Recognition – The disaggregation of revenues by business segment for the 13 and 26 weeks ended June 30, 2022 is as follows: 13 Weeks Ended June 30, 2022 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 63,087 $ — $ — $ 63,087 Rooms — 28,865 — 28,865 Theatre concessions 58,147 — — 58,147 Food and beverage — 19,014 — 19,014 Other revenues (1) 8,203 12,872 117 21,192 Cost reimbursements — 8,250 — 8,250 Total revenues $ 129,437 $ 69,001 $ 117 $ 198,555 26 Weeks Ended June 30, 2022 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 101,504 $ — $ — $ 101,504 Rooms — 46,295 — 46,295 Theatre concessions 93,611 — — 93,611 Food and beverage — 33,525 — 33,525 Other revenues (1) 13,813 25,975 211 39,999 Cost reimbursements — 15,863 — 15,863 Total revenues $ 208,928 $ 121,658 $ 211 $ 330,797 (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The disaggregation of revenues by business segment for the 13 and 26 weeks ended July 1, 2021 is as follows: 13 Weeks Ended July 1, 2021 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 24,915 $ — $ — $ 24,915 Rooms — 17,332 — 17,332 Theatre concessions 23,061 — — 23,061 Food and beverage — 9,591 — 9,591 Other revenues (1) 4,281 9,855 95 14,231 Cost reimbursements 44 3,373 — 3,417 Total revenues $ 52,301 $ 40,151 $ 95 $ 92,547 26 Weeks Ended July 1, 2021 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 35,600 $ — $ — $ 35,600 Rooms — 26,376 — 26,376 Theatre concessions 32,980 — — 32,980 Food and beverage — 15,503 — 15,503 Other revenues (1) 6,196 19,734 195 26,125 Cost reimbursements 87 6,663 — 6,750 Total revenues $ 74,863 $ 68,276 $ 195 $ 143,334 (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The Company had deferred revenue from contracts with customers of $39,355 and $39,144 as of June 30, 2022 and December 30, 2021, respectively. The Company had no contract assets as of June 30, 2022 and December 30, 2021. During the 26 weeks ended June 30, 2022, the Company recognized revenue of $9,448 that was included in deferred revenues as of December 30, 2021. During the 26 weeks ended July 1, 2021, the Company recognized revenue of $4,115 that was included in deferred revenues as of December 31, 2020. The majority of the Company’s deferred revenue relates to non-redeemed gift cards, advanced ticket sales and the Company’s loyalty program. As of June 30, 2022, the amount of transaction price allocated to the remaining performance obligations under the Company’s advanced ticket sales was $3,228 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. The Company recognizes revenue as the tickets are redeemed, which is expected to occur within the next two years. As of June 30, 2022, the amount of transaction price allocated to the remaining performance obligations related to the amount of Hotels and Resorts non-redeemed gift cards was $3,559 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues. The Company recognizes revenue as the gift cards are redeemed, which is expected to occur within the next two years. The majority of the Company’s revenue is recognized in less than one year from the original contract. New Accounting Pronouncements – During the first quarter of fiscal 2022, the Company adopted Accounting Standards Update (ASU) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . The amendments in this update provide increased transparency of government assistance including the requirement of certain disclosures in a company’s notes to the consolidated financial statements about transactions with a government. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In March 2020, the Financial Accounting Standards Board issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional expedients and exceptions to the existing guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR), or other interbank offered rates, to alternative reference rates such as the Secured Overnight Financing Rate (SOFR). ASU No. 2020-14 is optional, effective immediately, and may be elected over time as reference rate reform activities occur, generally through December 31, 2022. The Company will evaluate the effect the new standard will have on its consolidated financial statements when a replacement rate is chosen. |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 6 Months Ended |
Jun. 30, 2022 | |
Loss Contingency [Abstract] | |
Impact of COVID-19 Pandemic | Impact of COVID-19 Pandemic The COVID-19 pandemic has had an unprecedented impact on the world and both of the Company’s business segments. As an operator of movie theatres, hotels and resorts, restaurants and bars, each of which consists of spaces where customers and guests gather in close proximity, the Company’s businesses were significantly impacted by protective actions that federal, state and local governments have taken to control the spread of the pandemic, and the customers’ reactions or responses to such actions. The extent of these protective actions and their impact on the Company’s businesses has continued to dissipate during the first half of fiscal 2022. The Company began fiscal 2022 with all of its theatres open with normal operating days and hours. While still below pre-COVID-19 levels, attendance has continued to gradually improve as the number of vaccinated individuals increased, more films are released, and customers indicate increasing willingness to return to movie theatres. The Company began fiscal 2022 with all eight of its company-owned and managed hotels open. The majority of the Company’s restaurants and bars in its hotels and resorts were open during the first quarters of fiscal 2022, operating under applicable state and local restrictions and guidelines, and in some cases reduced operating hours. The majority of the Company’s hotels and restaurants are generating reduced revenues as compared to pre-COVID-19 pandemic years, although hotel occupancy continues to improve as the travel activity increases. Since the COVID-19 pandemic began, the Company has been working proactively to preserve cash and enhance liquidity. As of June 30, 2022, the Company had cash and cash equivalents of approximately $57,741 and $221,809 of availability under its $225,000 revolving credit facility. With this strong liquidity position, combined with cash generated from operations and proceeds from the sale of surplus real estate, the Company believes it is positioned to meet its obligations as they come due and continue to sustain its operations throughout fiscal 2022 and 2023, even if the properties continue to generate reduced revenues during these periods. During the first quarter of fiscal 2022, the Company received a $22,959 federal income tax refund (including $636 of interest) related to its fiscal 2020 tax return, with the primary benefit derived from net operating loss carrybacks to prior years. The Company also received $4,335 in state theatre grants during the first quarter of fiscal 2022 that were awarded during the fourth quarter of fiscal 2021. The Company believes that the actions that have been taken will allow it to have sufficient liquidity to meet its obligations as they come due and to comply with its debt covenants for at least 12 months from the issuance date of these unaudited consolidated financial statements. However, future compliance with the Company’s debt covenants are dependent upon the timing of new movie releases and the protective actions that federal, state and local governments have taken which impact consumer confidence and the speed of recovery of the Company’s theatres and hotels and resorts businesses. The Company’s estimates and assumptions related to future forecasted results of the Company are subject to inherent risk and uncertainty due to the ongoing impact of the COVID-19 pandemic, and actual results could differ materially from estimated amounts and impact the Company’s ability to comply with its debt covenants. |
Impairment Charges
Impairment Charges | 6 Months Ended |
Jun. 30, 2022 | |
Asset Impairment Charges [Abstract] | |
Impairment Charges | 3. Impairment Charges During the 13 weeks ended July 1, 2021, the Company determined that indicators of impairment were evident at certain theatre asset groups. For certain of the theatre asset groups evaluated for impairment, the sum of the estimated undiscounted future cash flows attributable to these assets was less than their carrying amount. The Company evaluated the fair value of these assets, consisting primarily of leasehold improvements, furniture, fixtures and equipment, and operating lease right-of-use-assets less lease obligations, and determined that the fair value, measured using Level 3 pricing inputs (using estimated discounted cash flows over the life of the primary asset, including estimated sales proceeds) was less than their carrying values and recorded a $3,732 impairment loss, reducing certain property and equipment and certain operating lease right-of-use assets. The remaining net book value of the impaired assets was $10,200 as of July 1, 2021, excluding any applicable remaining lease obligations. There were no indicators of impairment identified during the 26 weeks ended June 30, 2022. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | Long-Term Debt and Short-Term Borrowings Long-term debt and short-term borrowings are summarized as follows: June 30, 2022 December 30, 2021 Mortgage notes $ 24,203 $ 24,388 Senior notes 90,000 90,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39, bearing interest at 5.75% 1,158 1,356 Convertible senior notes 100,050 100,050 Payroll Protection Program loans 2,712 3,181 Revolving credit agreement — — Debt issuance costs (3,326) (3,831) Total debt, net of debt issuance costs 214,797 215,144 Less current maturities, net of issuance costs 11,077 10,967 Long-term debt $ 203,720 204,177 Short-term borrowings 46,628 47,346 Total debt and short-term borrowings, net of issuance costs $ 261,425 $ 262,490 Credit Agreement and Short-Term Borrowings On January 9, 2020, the Company replaced its then-existing credit agreement with several banks. On April 29, 2020, the Company entered into the First Amendment, on September 15, 2020, the Company entered into the Second Amendment, and on July 13, 2021, the Company entered into the Third Amendment (the Credit Agreement, as amended by the First Amendment, the Second Amendment and the Third Amendment, hereinafter referred to as the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility that matures on January 9, 2025 with an initial maximum aggregate amount of availability of $225,000. At June 30, 2022, there were borrowings of $0 outstanding on the revolving credit facility, which when borrowed, bear interest at LIBOR plus a margin, effectively 6.10% at June 30, 2022. Availability under the line at June 30, 2022, was $221,809, after taking into consideration outstanding letters of credit that reduce revolver availability. In conjunction with the First Amendment, the Company added an initial $90,800 term loan facility that was scheduled to mature on September 22, 2021. In conjunction with the Third Amendment, the term loan facility was reduced to $50,000 and the maturity date was extended to September 22, 2022. As of June 30, 2022, the balance of the term loan was $46,628, which is included in short-term borrowings on the consolidated balance sheet. Borrowings under the Credit Agreement generally bear interest at a variable rate equal to: (i) LIBOR, subject to a 1% floor, plus a specified margin based upon the Company’s consolidated debt to capitalization ratio as of the most recent determination date; or (ii) the base rate (which is the highest of (a) the prime rate, (b) the greater of the federal funds rate and the overnight bank funding rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR), subject to a 1% floor, plus a specified margin based upon the Company’s consolidated debt to capitalization ratio as of the most recent determination date. In addition, the Credit Agreement generally requires the Company to pay a facility fee equal to 0.125% to 0.25% of the total revolving commitment, depending on its consolidated debt to capitalization ratio, as defined in the Credit Agreement. However, pursuant to the First Amendment and the Second Amendment: (A) in respect of revolving loans, (1) the Company is charged a facility fee equal to 0.40% of the total revolving credit facility commitment and (2) the specified margin is 2.35% for LIBOR borrowings and 1.35% for ABR borrowings, which facility fee rate and specified margins will remain in effect until the end of the first fiscal quarter ending after the end of any period in which any portion of the term loan facility remains outstanding or the testing of any financial covenant in the Credit Agreement is suspended (the “specified period”); and (B) in respect of term loans, the specified margin is 2.75% for LIBOR borrowings and 1.75% for ABR borrowings, in each case, at all times. The Credit Agreement contains various restrictions and covenants. Among other requirements, the Credit Agreement (a) limits the amount of priority debt (as defined in the Credit Agreement) held by the Company’s restricted subsidiaries to no more than 20% of the Company’s consolidated total capitalization (as defined in the Credit Agreement), (b) limits the Company’s permissible consolidated debt to capitalization ratio to a maximum of 0.55 to 1.0, (c) requires the Company to maintain a consolidated fixed charge coverage ratio of at least 3.0 to 1.0 as of the end of the fiscal quarter ending March 30, 2023 and each fiscal quarter thereafter, (d) restricts the Company’s ability to incur additional indebtedness, pay dividends and other distributions (the restriction on dividends and other distributions does not apply to subsidiaries), and make voluntary prepayments on or defeasance of the Company’s 4.02% Senior Notes due August 2025, 4.32% Senior Notes due February 2027, the notes or certain other convertible securities, (e) requires the Company’s consolidated EBITDA not to be less than or equal to (i) $10,000 as of December 30, 2021 for the two consecutive fiscal quarters then ending, (ii) $25,000 as of March 31, 2022 for the three consecutive fiscal quarters then ending, (iii) $50,000 as of June 30, 2022 for the four consecutive fiscal quarters then ending, (iv) $65,000 as of September 29, 2022 for the four consecutive fiscal quarters then ending, or (v) $70,000 as of December 29, 2022 for the four consecutive fiscal quarters then ending, (f) requires the Company’s consolidated liquidity not to be less than or equal to (i) $100,000 as of September 30, 2021, (ii) $100,000 as of December 30, 2021, (iii) $100,000 as of March 31, 2022, (iv) $100,000 as of June 30, 2022, or (v) $50,000 as of the end of any fiscal quarter thereafter until and including the fiscal quarter ending December 29, 2022; however, each such required minimum amount of consolidated liquidity would be reduced to $50,000 for each such testing date if the initial term loans are paid in full as of such date, and (g) prohibits the Company from incurring or making capital expenditures, (i) during fiscal 2021 in excess of the sum of $40,000 plus certain adjustments, or (ii) during the Company’s 2022 fiscal year in excess of $50,000 plus certain adjustments. See Note 9 for further discussion of an amendment to the Credit Agreement covenants subsequent to the end of the second quarter of fiscal 2022. Pursuant to the Credit Agreement, the Company is required to apply net cash proceeds received from certain events, including certain asset disposition, casualty losses, condemnations, equity issuances, capital contributions, and the incurrence of certain debt, to prepay outstanding term loans. During the 26 weeks ended June 30, 2022, approximately $820 in asset sale proceeds were applied to the term loan balance. In addition, if, at any time during the specified period, the Company’s unrestricted cash on hand exceeds $75,000, the Company is required to prepay revolving loans under the Credit Agreement by the amount of such excess, without a corresponding reduction in the revolving commitments under the Credit Agreement. In connection with the Credit Agreement: (i) the Company has pledged, subject to certain exceptions, security interests and liens in and on (a) substantially all of its respective personal property assets and (b) certain of its respective real property assets, in each case, to secure the Credit Agreement and related obligations; and (ii) certain of the Company’s subsidiaries have guaranteed the Company’s obligations under the Credit Agreement. The foregoing security interests, liens and guaranties will remain in effect until the Collateral Release Date (as defined in the Credit Agreement). The Credit Agreement contains customary events of default. If an event of default under the Credit Agreement occurs and is continuing, then, among other things, the lenders may declare any outstanding obligations under the Credit Agreement to be immediately due and payable and exercise rights and remedies against the pledged collateral. Note Purchase Agreements At June 30, 2022 and December 30, 2021, the Company’s $90,000 of senior notes consist of two Purchase Agreements maturing in 2025 through 2027, require annual principal payments in varying installments and bear interest payable semi-annually at fixed rates ranging from 4.02% to 4.32%. Convertible Senior Notes On September 17, 2020, the Company entered into a purchase agreement to issue and sell $100,050 aggregate principal amount of its 5.00% Convertible Senior Notes due 2025 (the “Convertible Notes.”) The Convertible Notes were issued pursuant to an indenture (the “Indenture”), dated September 22, 2020, between the Company and U.S. Bank National Association, as trustee. The Convertible Notes bear interest from September 22, 2020 at a rate of 5.00% per year. Interest will be payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2021. The Convertible Notes may bear additional interest under specified circumstances relating to the Company’s failure to comply with its reporting obligations under the Indenture or if the Convertible Notes are not freely tradeable as required by the Indenture. The Convertible Notes will mature on September 15, 2025, unless earlier repurchased or converted. Prior to March 15, 2025, the Convertible Notes will be convertible at the option of the holders only under the following circumstances: (i) during any fiscal quarter commencing after the fiscal quarter ending on December 31, 2020 (and only during such fiscal quarter), if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (ii) during the five business day period immediately after any five consecutive trading day period, or the measurement period, in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Common Stock and the conversion rate on each such trading day; or (iii) upon the occurrence of specified corporate events. On or after March 15, 2025, the Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Convertible Notes may be settled, at the Company’s election, in cash, shares of Common Stock or a combination thereof. The initial conversion rate is 90.8038 shares of Common Stock per $1,000 principal amount of the Convertible Notes (equivalent to an initial conversion price of approximately $11.01 per share of Common Stock), representing an initial conversion premium of approximately 22.5% to the $8.99 last reported sale price of the Common Stock on The New York Stock Exchange on September 17, 2020. If the Company undergoes certain fundamental changes, holders of Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes for a purchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if a make-whole fundamental change occurs prior to the maturity date, the Company will, under certain circumstances, increase the conversion rate for holders who convert Convertible Notes in connection with such make-whole fundamental change. The Company may not redeem the Convertible Notes before maturity and no “sinking fund” is provided for the Convertible Notes. The Indenture includes covenants customary for securities similar to the Convertible Notes, sets forth certain events of default after which the Convertible Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company and certain of its subsidiaries after which the Convertible Notes become automatically due and payable. During the Company’s fiscal 2021 second, third and fourth quarters, and the Company’s fiscal 2022 first, second and third quarters, the Company’s Convertible Notes were (are) eligible for conversion at the option of the holders as the last reported sale price of the Common Stock was greater than or equal to 130% of the applicable conversion price for at least 20 trading days during the last 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter. The Company has the ability to settle the conversion in Company stock. As such, the Convertible Notes will continue to be classified as long-term. Future convertibility and resulting balance sheet classification of this liability will be monitored at each quarterly reporting date and will be analyzed dependent upon market prices of the Company’s Common Stock during the prescribed measurement period. No Convertible Notes have been converted to date and the Company does not expect any to be converted within the next 12 months. Derivatives The Company utilizes derivatives principally to manage market risks and reduce its exposure resulting from fluctuations in interest rates. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. The Company entered into two interest rate swap agreements on March 1, 2018 covering $50,000 of floating rate debt. The first agreement had a notional amount of $25,000, expired March 1, 2021 and required the Company to pay interest at a defined rate of 2.559% while receiving interest at a defined variable rate of one-month LIBOR. The second agreement has a notional amount of $25,000, expires March 1, 2023 and requires the Company to pay interest at a defined rate of 2.687% while receiving interest at a defined variable rate of one-month LIBOR (1.063% at June 30, 2022). The Company’s interest rate swap agreement is considered effective and qualifies as a cash flow hedge. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. As of June 30, 2022, the remaining interest rate swap was considered highly effective. The fair value of the interest rate swap on June 30, 2022 was an asset of $34, which is included in other current assets in the consolidated balance sheet. The fair value of the interest rate swap on December 30, 2021, was a liability of $689, which was included in other long-term obligations in the consolidated balance sheet. The Company does not expect the interest rate swap to have a material effect on earnings over its remaining term. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is a lease at inception. The Company evaluates each lease for classification as either a finance lease or an operating lease according to accounting guidance ASU No. 2016-02, Leases (Topic 842) . The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. The Company leases real estate and equipment with lease terms of one year to 45 years, some of which include options to extend and/or terminate the lease. The majority of the Company’s lease agreements include fixed rental payments. For those leases with variable payments based on increases in an index subsequent to lease commencement, such payments are recognized as variable lease expense as they occur. Variable lease payments that do not depend on an index or rate, including those that depend on the Company’s performance or use of the underlying asset, are also expensed as incurred. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Total lease cost consists of the following: 13 Weeks Ended 26 Weeks Ended Lease Cost Classification June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 696 $ 668 $ 1,401 $ 1,380 Interest on lease liabilities Interest expense 216 240 437 490 $ 912 $ 908 $ 1,838 $ 1,870 Operating lease costs: Operating lease costs Rent expense $ 6,364 $ 6,465 $ 12,741 $ 12,786 Variable lease cost Rent expense 178 (158) 15 (173) Short-term lease cost Rent expense 36 37 72 72 $ 6,578 $ 6,344 $ 12,828 $ 12,685 Additional information related to leases is as follows: 13 Weeks Ended 26 Weeks Ended Other Information June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 752 $ 699 $ 1,336 $ 1,329 Operating cash flows from finance leases 216 240 437 490 Operating cash flows from operating leases 7,012 7,899 14,136 $ 15,292 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 116 — 188 — Operating lease liabilities — — 183 1,575 June 30, 2022 December 30, 2021 Finance leases: Property and equipment – gross $ 75,262 $ 75,124 Accumulated depreciation and amortization (59,552) (58,197) Property and equipment - net $ 15,710 $ 16,927 Remaining lease terms and discount rates are as follows: Lease Term and Discount Rate June 30, 2022 December 30, 2021 Weighted-average remaining lease terms: Finance leases 8 years 8 years Operating leases 13 years 13 years Weighted-average discount rates: Finance leases 4.58 % 4.58 % Operating leases 4.60 % 4.48 % Deferred rent payments of approximately $1,442 for the Company’s operating leases have been included in the total operating lease obligations as of June 30, 2022, of which approximately $698 is included in long-term operating lease obligations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective income tax rate for the 13 and 26 weeks ended June 30, 2022 was 34.7% and 23.1%, respectively, and was 26.3% and 27.0% for the 13 and 26 weeks ended and July 1, 2021, respectively. The effective tax rate for the 13 weeks ended June 30, 2022 includes discrete tax expense related to various matters. During the 26 weeks ended July 1, 2021, the Company filed income tax refund claims of $24,151 related to its fiscal 2020 tax return, of which $1,828 was received in fiscal 2021, and $22,323 was received during the 26 weeks ended June 30, 2022. An additional $636 of interest was received during the 26 weeks ended June 30, 2022 and is included within income tax benefit in the consolidated statement of earnings (loss). During the 26 weeks ended July 1, 2021, the Company received the remaining $5,900 of requested tax refunds from its fiscal 2019 tax return. |
Joint Venture Transactions
Joint Venture Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Joint Venture Transactions | Joint Venture TransactionsDuring the 26 weeks ended July 1, 2021, the Company sold its interest in an equity investment without a readily determinable fair value for $4,150 and recorded a gain of $2,079, which is included in gain (loss) on disposition of property, equipment and other assets in the consolidated statement of earnings (loss). |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment InformationThe Company’s primary operations are reported in the following business segments: Theatres and Hotels/Resorts. Corporate items include amounts not allocable to the business segments. Corporate revenues consist principally of rent and the corporate operating loss includes general corporate expenses. Corporate information technology costs and accounting shared services costs are allocated to the business segments based upon several factors, including actual usage and segment revenues. Following is a summary of business segment information for the 13 and 26 weeks ended June 30, 2022 and July 1, 2021: 13 Weeks Ended Theatres Hotels/ Corporate Total June 30, 2022 Revenues $ 129,437 $ 69,001 $ 117 $ 198,555 Operating income (loss) 16,430 6,817 (4,354) 18,893 Depreciation and amortization 11,863 4,801 88 16,752 13 Weeks Ended Theatres Hotels/ Corporate Total July 1, 2021 Revenues $ 52,301 $ 40,151 $ 95 $ 92,547 Operating loss $ (18,215) $ (2,239) $ (5,656) $ (26,110) Depreciation and amortization $ 13,385 $ 5,047 $ 62 $ 18,494 26 Weeks Ended Theatres Hotels/ Corporate Total June 30, 2022 Revenues $ 208,928 $ 121,658 $ 211 $ 330,797 Operating income (loss) 8,410 3,843 (10,157) 2,096 Depreciation and amortization 24,054 9,751 178 33,983 26 Weeks Ended Theatres Hotels/ Corporate Total July 1, 2021 Revenues $ 74,863 $ 68,276 $ 195 $ 143,334 Operating loss (43,854) (7,947) (9,970) (61,771) Depreciation and amortization 26,171 10,174 128 36,473 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to the end of the second quarter of fiscal 2022, on July 29, 2022 the Company repaid $46,628 of short-term borrowings, repaying in full and retiring the term loan facility maturing on September 22, 2022. In connection with the repayment of the term loan, the Company amended the Credit Agreement by entering into the Fourth Amendment which modified the consolidated fixed charge coverage covenant, reducing the requirement to maintain a consolidated fixed charge coverage ratio of at least 3.0 to 1.0 to at least 2.5 to 1 starting as of the end of the fiscal quarter ending March 30, 2023, and continuing for each fiscal quarter thereafter. Subsequent to the end of the second quarter of fiscal 2022, on July 29, 2022, the Board of Directors declared a regular quarterly cash dividend of $0.05 per share of common stock. The dividend will be paid September 15, 2022, to shareholders of record on August 25, 2022. The Board of Directors also declared a dividend of $0.045 per share on the Class B common stock. The dividend on the Class B commons stock, which is not publicly traded, will also be paid September 15, 2022, to shareholders of record on August 25, 2022. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The unaudited consolidated financial statements for the 13 and 26 weeks ended June 30, 2022 and July 1, 2021 have been prepared by the Company. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary to present fairly the unaudited interim financial information at June 30, 2022, and for all periods presented, have been made. The results of operations during the interim periods are not necessarily indicative of the results of operations for the entire year or other interim periods. However, the unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2021. |
Noncontrolling Interests | Noncontrolling Interests - The Company has an ownership interest greater than 50% in one joint venture that is considered a Variable Interest Entity (VIE) that is included in the accounts of the Company. The Company is the primary beneficiary of the VIE and the Company’s interest is considered a majority voting interest. The equity interest of outside owners in consolidated entities is recorded as noncontrolling interests in the consolidated balance sheets, and their share of earnings is recorded as net earnings (loss) attributable to noncontrolling interests in the consolidated statements of earnings (loss) in accordance with the partnership agreement. Due to the cumulative losses of the entity, the noncontrolling interest balance is $0 as of June 30, 2022 and December 30, 2021. The Company will not record earnings or losses from noncontrolling interest until the entity returns to profitability. |
Depreciation and Amortization | Depreciation and Amortization - Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the estimated useful lives of the assets or any related lease terms. Depreciation expense totaled $16,744 and $33,967 for the 13 and 26 weeks ended June 30, 2022, respectively, and $18,475 and $36,433 for the 13 and 26 weeks ended July 1, 2021, respectively. |
Assets Held for Sale | Assets Held for Sale – Long-lived assets that are expected to be sold within the next 12 months and meet the other relevant held-for-sale criteria are classified as assets held for sale and included within current assets on the consolidated balance sheet. Assets held for sale are measured at the lower of their carrying value or their fair value less costs to sell the asset. As of June 30, 2022, assets held for sale consists primarily of excess land. |
Long-Lived Assets | Long-Lived Assets – The Company periodically considers whether indicators of impairment of long-lived assets held for use are present. This includes quantitative and qualitative factors, including evaluating the historical actual operating performance of the long-lived assets and assessing the potential impact of recent events and transactions impacting the long-lived assets. If such indicators are present, the Company determines if the long-lived assets are recoverable by assessing whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than their carrying amounts. If the long-lived assets are not recoverable, the Company recognizes any impairment losses based on the excess of the carrying amount of the assets over their fair value. There were no indicators of impairment identified during the 26 weeks ended June 30, 2022. |
Goodwill | Goodwill – The Company reviews goodwill for impairment annually or more frequently if certain indicators arise. The Company performs its annual impairment test on the first day of the fiscal fourth quarter. There were no indicators of impairment identified during the 26 weeks ended June 30, 2022 or July 1, 2021. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share - Net earnings (loss) per share (EPS) of Common Stock and Class B Common Stock is computed using the two class method. Basic net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding. Diluted net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options and convertible debt instruments using the if-converted method. Convertible Class B Common Stock and convertible debt instruments are reflected on an if-converted basis when dilutive to Common Stock. The computation of the diluted net earnings (loss) per share of Common Stock assumes the conversion of Class B Common Stock in periods that have net earnings since it would be dilutive to Common Stock earnings per share, while the diluted net earnings (loss) per share of Class B Common Stock does not assume the conversion of those shares. Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of Class B Common Stock. As such, the undistributed earnings (losses) for each period are allocated based on the proportionate share of entitled cash dividends. The following table illustrates the computation of Common Stock basic and diluted net earnings (loss) per share and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: 13 Weeks Ended 26 Weeks Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Numerator: Net earnings (loss) attributable to The Marcus Corporation $ 8,960 $ (23,366) $ (5,942) $ (51,496) Denominator: Denominator for basic EPS 31,492 31,404 31,469 31,300 Effect of dilutive employee stock options 40 — — — Effect of convertible notes 9,085 — — — Denominator for diluted EPS 40,617 31,404 31,469 31,300 Net earnings (loss) per share - basic: Common Stock $ 0.29 $ (0.76) $ (0.19) $ (1.71) Class B Common Stock $ 0.26 $ (0.68) $ (0.18) $ (1.44) Net earnings (loss) per share - diluted: Common Stock $ 0.24 $ (0.76) $ (0.19) $ (1.71) Class B Common Stock $ 0.23 $ (0.68) $ (0.18) $ (1.44) For the periods when the Company reports a net loss, common stock equivalents are excluded from the computation of diluted loss per share as their inclusion would have an antidilutive effect. During the 26 weeks ended June 30, 2022, and the 13 and 26 weeks ended July 1, 2021, approximately 61,791, 165,439 and 142,746 common stock equivalents, respectively, were excluded from the computation of diluted loss per share due to the Company’s net loss. During the 26 weeks ended June 30, 2022, and the 13 and 26 weeks ended July 1, 2021, 9,084,924 shares related to the convertible notes were excluded from the computation of diluted loss per share as the effect would have been anti-dilutive. |
Fair Value Measurements | Fair Value Measurements - Certain financial assets and liabilities are recorded at fair value in the consolidated financial statements. Some are measured on a recurring basis while others are measured on a non-recurring basis. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. A fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s assets and liabilities measured at fair value are classified in one of the following categories: Level 1 - Assets or liabilities for which fair value is based on quoted prices in active markets for identical instruments as of the reporting date. At June 30, 2022 and December 30, 2021, respectively, the Company’s $3,789 and $4,617 of debt and equity securities classified as trading were valued using Level 1 pricing inputs and were included in other current assets. At June 30, 2022 and December 30, 2021, respectively, the Company’s $44,990 and $5,000 of investments in money market accounts were valued using Level 1 pricing inputs and were included in cash and cash equivalents. Level 2 - Assets or liabilities for which fair value is based on pricing inputs that were either directly or indirectly observable as of the reporting date. At June 30, 2022 and December 30, 2021, respectively, the Company’s $34 asset and $689 liability related to the Company’s interest rate swap contract was valued using Level 2 pricing inputs. Level 3 - Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. At June 30, 2022 and December 30, 2021, none of the Company’s recorded assets or liabilities that are measured on a recurring basis at fair market value were valued using Level 3 pricing inputs. Assets and liabilities that were measured on a non-recurring basis are discussed in Note 3. |
Defined Benefit Plan | Defined Benefit Plan - The components of the net periodic pension cost of the Company’s unfunded nonqualified, defined-benefit plan are as follows: 13 Weeks Ended 26 Weeks Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Service cost $ 264 $ 280 $ 528 $ 561 Interest cost 335 301 670 601 Net amortization of prior service cost and actuarial loss 257 327 514 655 Net periodic pension cost $ 856 $ 908 $ 1,712 $ 1,817 Service cost is included in Administrative expense while all other components are recorded within Other expense outside of operating income in the consolidated statements of earnings. |
Revenue Recognition | Revenue Recognition – The disaggregation of revenues by business segment for the 13 and 26 weeks ended June 30, 2022 is as follows: 13 Weeks Ended June 30, 2022 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 63,087 $ — $ — $ 63,087 Rooms — 28,865 — 28,865 Theatre concessions 58,147 — — 58,147 Food and beverage — 19,014 — 19,014 Other revenues (1) 8,203 12,872 117 21,192 Cost reimbursements — 8,250 — 8,250 Total revenues $ 129,437 $ 69,001 $ 117 $ 198,555 26 Weeks Ended June 30, 2022 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 101,504 $ — $ — $ 101,504 Rooms — 46,295 — 46,295 Theatre concessions 93,611 — — 93,611 Food and beverage — 33,525 — 33,525 Other revenues (1) 13,813 25,975 211 39,999 Cost reimbursements — 15,863 — 15,863 Total revenues $ 208,928 $ 121,658 $ 211 $ 330,797 (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The disaggregation of revenues by business segment for the 13 and 26 weeks ended July 1, 2021 is as follows: 13 Weeks Ended July 1, 2021 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 24,915 $ — $ — $ 24,915 Rooms — 17,332 — 17,332 Theatre concessions 23,061 — — 23,061 Food and beverage — 9,591 — 9,591 Other revenues (1) 4,281 9,855 95 14,231 Cost reimbursements 44 3,373 — 3,417 Total revenues $ 52,301 $ 40,151 $ 95 $ 92,547 26 Weeks Ended July 1, 2021 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 35,600 $ — $ — $ 35,600 Rooms — 26,376 — 26,376 Theatre concessions 32,980 — — 32,980 Food and beverage — 15,503 — 15,503 Other revenues (1) 6,196 19,734 195 26,125 Cost reimbursements 87 6,663 — 6,750 Total revenues $ 74,863 $ 68,276 $ 195 $ 143,334 (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The Company had deferred revenue from contracts with customers of $39,355 and $39,144 as of June 30, 2022 and December 30, 2021, respectively. The Company had no contract assets as of June 30, 2022 and December 30, 2021. During the 26 weeks ended June 30, 2022, the Company recognized revenue of $9,448 that was included in deferred revenues as of December 30, 2021. During the 26 weeks ended July 1, 2021, the Company recognized revenue of $4,115 that was included in deferred revenues as of December 31, 2020. The majority of the Company’s deferred revenue relates to non-redeemed gift cards, advanced ticket sales and the Company’s loyalty program. As of June 30, 2022, the amount of transaction price allocated to the remaining performance obligations under the Company’s advanced ticket sales was $3,228 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. The Company recognizes revenue as the tickets are redeemed, which is expected to occur within the next two years. As of June 30, 2022, the amount of transaction price allocated to the remaining performance obligations related to the amount of Hotels and Resorts non-redeemed gift cards was $3,559 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues. The Company recognizes revenue as the gift cards are redeemed, which is expected to occur within the next two years. The majority of the Company’s revenue is recognized in less than one year from the original contract. |
New Accounting Pronouncements | New Accounting Pronouncements – During the first quarter of fiscal 2022, the Company adopted Accounting Standards Update (ASU) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . The amendments in this update provide increased transparency of government assistance including the requirement of certain disclosures in a company’s notes to the consolidated financial statements about transactions with a government. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In March 2020, the Financial Accounting Standards Board issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide optional expedients and exceptions to the existing guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR), or other interbank offered rates, to alternative reference rates such as the Secured Overnight Financing Rate (SOFR). ASU No. 2020-14 is optional, effective immediately, and may be elected over time as reference rate reform activities occur, generally through December 31, 2022. The Company will evaluate the effect the new standard will have on its consolidated financial statements when a replacement rate is chosen. |
General (Tables)
General (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the computation of Common Stock basic and diluted net earnings (loss) per share and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: 13 Weeks Ended 26 Weeks Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Numerator: Net earnings (loss) attributable to The Marcus Corporation $ 8,960 $ (23,366) $ (5,942) $ (51,496) Denominator: Denominator for basic EPS 31,492 31,404 31,469 31,300 Effect of dilutive employee stock options 40 — — — Effect of convertible notes 9,085 — — — Denominator for diluted EPS 40,617 31,404 31,469 31,300 Net earnings (loss) per share - basic: Common Stock $ 0.29 $ (0.76) $ (0.19) $ (1.71) Class B Common Stock $ 0.26 $ (0.68) $ (0.18) $ (1.44) Net earnings (loss) per share - diluted: Common Stock $ 0.24 $ (0.76) $ (0.19) $ (1.71) Class B Common Stock $ 0.23 $ (0.68) $ (0.18) $ (1.44) |
Schedule of Stockholders Equity | Activity impacting total shareholders’ equity attributable to The Marcus Corporation and noncontrolling interest for the 13 and 26 weeks ended June 30, 2022 and July 1, 2021 was as follows: Common Class B Capital Retained Accumulated Treasury Shareholders’ Non- Total BALANCES AT DECEMBER 30, 2021 $ 24,345 $ 7,130 $ 145,656 $ 289,306 $ (11,444) $ (1,379) $ 453,614 $ — $ 453,614 Exercise of stock options — — (5) — — 31 26 — 26 Purchase of treasury stock — — — — — (1,373) (1,373) — (1,373) Savings and profit-sharing contribution 56 — 900 — — — 956 — 956 Reissuance of treasury stock — — 1 — — 8 9 — 9 Issuance of non-vested stock 78 — (236) — — 158 — — — Shared-based compensation — — 2,917 — — — 2,917 — 2,917 Other — — 1 (1) — — — — — Conversions of Class B Common Stock 19 (19) — — — — — — — Comprehensive income (loss) — — — (14,902) 531 — (14,371) — (14,371) BALANCES AT MARCH 31, 2022 $ 24,498 $ 7,111 $ 149,234 $ 274,403 $ (10,913) $ (2,555) $ 441,778 $ — $ 441,778 Exercise of stock options — — (16) — — 69 53 — 53 Purchase of treasury stock — — — — — (104) (104) — (104) Reissuance of treasury stock — — (2) — — 9 7 — 7 Issuance of non-vested stock — — (305) — — 305 — — — Shared-based compensation — — 1,655 — — — 1,655 — 1,655 Other — — (1) 1 — — — — — Comprehensive income — — — 8,960 384 — 9,344 — 9,344 BALANCES AT JUNE 30, 2022 $ 24,498 $ 7,111 $ 150,565 $ 283,364 $ (10,529) $ (2,276) $ 452,733 $ — $ 452,733 Common Class B Capital Retained Accumulated Treasury Shareholders’ Non- Total BALANCES AT DECEMBER 31, 2020 $ 23,264 $ 7,926 $ 153,529 $ 331,897 $ (14,933) $ (2,960) $ 498,723 $ — $ 498,723 Adoption of ASU No. 2020-06 — — (16,511) 702 — — (15,809) — (15,809) Exercise of stock options — — (659) — — 1,951 1,292 — 1,292 Purchase of treasury stock — — — — — (1,181) (1,181) — (1,181) Savings and profit-sharing contribution 44 — 968 — — — 1,012 — 1,012 Reissuance of treasury stock — — 2 — — 10 12 — 12 Issuance of non-vested stock 221 — (367) — — 146 — — — Shared-based compensation — — 1,484 — — — 1,484 — 1,484 Other — — — (1) — 1 — — — Conversions of Class B Common Stock 520 (520) — — — — — — — Comprehensive income (loss) — — — (28,130) 452 — (27,678) — (27,678) BALANCES AT APRIL 1, 2021 $ 24,049 $ 7,406 $ 138,446 $ 304,468 $ (14,481) $ (2,033) $ 457,855 $ — $ 457,855 Exercise of stock options — — (40) — — 122 82 — 82 Purchase of treasury stock — — — — — (73) (73) — (73) Reissuance of treasury stock — — (1) — — 7 6 — 6 Issuance of non-vested stock 18 — (157) — — 139 — — — Shared-based compensation — — 2,668 — — — 2,668 — 2,668 Conversions of Class B Common Stock 275 (275) — — — — — — — Comprehensive income (loss) — — — (23,366) 356 — (23,010) — (23,010) BALANCES AT JULY 1, 2021 $ 24,342 $ 7,131 $ 140,916 $ 281,102 $ (14,125) $ (1,838) $ 437,528 $ — $ 437,528 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets consists of the following, all presented net of tax: June 30, December 30, Unrecognized gain (loss) on interest rate swap agreements $ 26 $ (509) Net unrecognized actuarial loss for pension obligation (10,555) $ (10,935) $ (10,529) $ (11,444) |
Schedule of Defined Benefit Plan | The components of the net periodic pension cost of the Company’s unfunded nonqualified, defined-benefit plan are as follows: 13 Weeks Ended 26 Weeks Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Service cost $ 264 $ 280 $ 528 $ 561 Interest cost 335 301 670 601 Net amortization of prior service cost and actuarial loss 257 327 514 655 Net periodic pension cost $ 856 $ 908 $ 1,712 $ 1,817 |
Schedule of Disaggregation of Revenue | The disaggregation of revenues by business segment for the 13 and 26 weeks ended June 30, 2022 is as follows: 13 Weeks Ended June 30, 2022 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 63,087 $ — $ — $ 63,087 Rooms — 28,865 — 28,865 Theatre concessions 58,147 — — 58,147 Food and beverage — 19,014 — 19,014 Other revenues (1) 8,203 12,872 117 21,192 Cost reimbursements — 8,250 — 8,250 Total revenues $ 129,437 $ 69,001 $ 117 $ 198,555 26 Weeks Ended June 30, 2022 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 101,504 $ — $ — $ 101,504 Rooms — 46,295 — 46,295 Theatre concessions 93,611 — — 93,611 Food and beverage — 33,525 — 33,525 Other revenues (1) 13,813 25,975 211 39,999 Cost reimbursements — 15,863 — 15,863 Total revenues $ 208,928 $ 121,658 $ 211 $ 330,797 (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The disaggregation of revenues by business segment for the 13 and 26 weeks ended July 1, 2021 is as follows: 13 Weeks Ended July 1, 2021 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 24,915 $ — $ — $ 24,915 Rooms — 17,332 — 17,332 Theatre concessions 23,061 — — 23,061 Food and beverage — 9,591 — 9,591 Other revenues (1) 4,281 9,855 95 14,231 Cost reimbursements 44 3,373 — 3,417 Total revenues $ 52,301 $ 40,151 $ 95 $ 92,547 26 Weeks Ended July 1, 2021 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 35,600 $ — $ — $ 35,600 Rooms — 26,376 — 26,376 Theatre concessions 32,980 — — 32,980 Food and beverage — 15,503 — 15,503 Other revenues (1) 6,196 19,734 195 26,125 Cost reimbursements 87 6,663 — 6,750 Total revenues $ 74,863 $ 68,276 $ 195 $ 143,334 (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term debt and short-term borrowings | Long-term debt and short-term borrowings are summarized as follows: June 30, 2022 December 30, 2021 Mortgage notes $ 24,203 $ 24,388 Senior notes 90,000 90,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39, bearing interest at 5.75% 1,158 1,356 Convertible senior notes 100,050 100,050 Payroll Protection Program loans 2,712 3,181 Revolving credit agreement — — Debt issuance costs (3,326) (3,831) Total debt, net of debt issuance costs 214,797 215,144 Less current maturities, net of issuance costs 11,077 10,967 Long-term debt $ 203,720 204,177 Short-term borrowings 46,628 47,346 Total debt and short-term borrowings, net of issuance costs $ 261,425 $ 262,490 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease, Cost | Total lease cost consists of the following: 13 Weeks Ended 26 Weeks Ended Lease Cost Classification June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 696 $ 668 $ 1,401 $ 1,380 Interest on lease liabilities Interest expense 216 240 437 490 $ 912 $ 908 $ 1,838 $ 1,870 Operating lease costs: Operating lease costs Rent expense $ 6,364 $ 6,465 $ 12,741 $ 12,786 Variable lease cost Rent expense 178 (158) 15 (173) Short-term lease cost Rent expense 36 37 72 72 $ 6,578 $ 6,344 $ 12,828 $ 12,685 |
Schedule of Other Information Related to Leases | Additional information related to leases is as follows: 13 Weeks Ended 26 Weeks Ended Other Information June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 752 $ 699 $ 1,336 $ 1,329 Operating cash flows from finance leases 216 240 437 490 Operating cash flows from operating leases 7,012 7,899 14,136 $ 15,292 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 116 — 188 — Operating lease liabilities — — 183 1,575 June 30, 2022 December 30, 2021 Finance leases: Property and equipment – gross $ 75,262 $ 75,124 Accumulated depreciation and amortization (59,552) (58,197) Property and equipment - net $ 15,710 $ 16,927 |
Schedule of Lease Term and Discount Rate | Remaining lease terms and discount rates are as follows: Lease Term and Discount Rate June 30, 2022 December 30, 2021 Weighted-average remaining lease terms: Finance leases 8 years 8 years Operating leases 13 years 13 years Weighted-average discount rates: Finance leases 4.58 % 4.58 % Operating leases 4.60 % 4.48 % |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Following is a summary of business segment information for the 13 and 26 weeks ended June 30, 2022 and July 1, 2021: 13 Weeks Ended Theatres Hotels/ Corporate Total June 30, 2022 Revenues $ 129,437 $ 69,001 $ 117 $ 198,555 Operating income (loss) 16,430 6,817 (4,354) 18,893 Depreciation and amortization 11,863 4,801 88 16,752 13 Weeks Ended Theatres Hotels/ Corporate Total July 1, 2021 Revenues $ 52,301 $ 40,151 $ 95 $ 92,547 Operating loss $ (18,215) $ (2,239) $ (5,656) $ (26,110) Depreciation and amortization $ 13,385 $ 5,047 $ 62 $ 18,494 26 Weeks Ended Theatres Hotels/ Corporate Total June 30, 2022 Revenues $ 208,928 $ 121,658 $ 211 $ 330,797 Operating income (loss) 8,410 3,843 (10,157) 2,096 Depreciation and amortization 24,054 9,751 178 33,983 26 Weeks Ended Theatres Hotels/ Corporate Total July 1, 2021 Revenues $ 74,863 $ 68,276 $ 195 $ 143,334 Operating loss (43,854) (7,947) (9,970) (61,771) Depreciation and amortization 26,171 10,174 128 36,473 |
General - Additional informatio
General - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | Dec. 30, 2021 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Noncontrolling interest | $ 0 | $ 0 | $ 0 | ||
Depreciation | 16,744,000 | $ 18,475,000 | $ 33,967,000 | $ 36,433,000 | |
Percentage of cash dividends | 110% | ||||
Deferred revenue | 39,355,000 | $ 39,355,000 | 39,144,000 | ||
Contract assets | 0 | 0 | 0 | ||
Deferred revenue, revenue recognized | 9,448,000 | $ 4,115,000 | |||
Remaining performance obligation related to advanced ticket sales | 3,228,000 | 3,228,000 | |||
Remaining performance obligation related to hotels gift cards | 3,559,000 | ||||
Level 1 | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Trading securities, fair value | 3,789,000 | 3,789,000 | 4,617,000 | ||
Level 1 | Money Market Funds | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Trading securities, fair value | 44,990,000 | 44,990,000 | 5,000,000 | ||
Level 2 | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Fair value of the interest rate swaps, assets | 34,000 | 34,000 | |||
Fair value of the interest rate swaps, liabilities | 689,000 | ||||
Level 3 | Recurring | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Fair value, asset (liability) | $ 0 | $ 0 | $ 0 | ||
Common Stock | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Shares related to the convertible notes were excluded from the computation of diluted earnings per share (in shares) | 165,439 | 61,791 | 142,746 | ||
Shares Related to Convertible Notes | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Shares related to the convertible notes were excluded from the computation of diluted earnings per share (in shares) | 9,084,924 | 9,084,924 | 9,084,924 |
General - Earnings Per Share (D
General - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Numerator: | ||||
Net earnings (loss) attributable to The Marcus Corporation | $ 8,960 | $ (23,366) | $ (5,942) | $ (51,496) |
Denominator: | ||||
Denominator for basic EPS (in shares) | 31,492 | 31,404 | 31,469 | 31,300 |
Effect of dilutive employee stock options (in shares) | 40 | 0 | 0 | 0 |
Effect of convertible notes (in shares) | 9,085 | 0 | 0 | 0 |
Denominator for diluted EPS (in shares) | 40,617 | 31,404 | 31,469 | 31,300 |
Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Common stock (in dollars per share) | $ 0.29 | $ (0.76) | $ (0.19) | $ (1.71) |
Net earnings (loss) per share - diluted: | ||||
Common stock (in dollars per share) | 0.24 | (0.76) | (0.19) | (1.71) |
Class B Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Common stock (in dollars per share) | 0.26 | (0.68) | (0.18) | (1.44) |
Net earnings (loss) per share - diluted: | ||||
Common stock (in dollars per share) | $ 0.23 | $ (0.68) | $ (0.18) | $ (1.44) |
General - Shareholders' Equity
General - Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jul. 01, 2021 | Apr. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Accounting standards update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 441,778 | $ 453,614 | $ 457,855 | $ 498,723 | $ 453,614 | $ 498,723 |
Exercise of stock options | 53 | 26 | 82 | 1,292 | ||
Purchase of treasury stock | (104) | (1,373) | (73) | (1,181) | ||
Savings and profit-sharing contribution | 956 | 1,012 | ||||
Reissuance of treasury stock | 7 | 9 | 6 | 12 | ||
Issuance of non-vested stock | 0 | 0 | 0 | 0 | ||
Shared-based compensation | 1,655 | 2,917 | 2,668 | 1,484 | ||
Other | 0 | 0 | 0 | |||
Conversions of Class B Common Stock | 0 | 0 | 0 | |||
Comprehensive income (loss) | 9,344 | (14,371) | (23,010) | (27,678) | (5,027) | (50,688) |
Ending balance | 452,733 | 441,778 | 437,528 | 457,855 | 452,733 | 437,528 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (15,809) | (15,809) | ||||
Shareholders’ Equity Attributable to The Marcus Corporation | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 441,778 | 453,614 | 457,855 | 498,723 | 453,614 | 498,723 |
Exercise of stock options | 53 | 26 | 82 | 1,292 | ||
Purchase of treasury stock | (104) | (1,373) | (73) | (1,181) | ||
Savings and profit-sharing contribution | 956 | 1,012 | ||||
Reissuance of treasury stock | 7 | 9 | 6 | 12 | ||
Issuance of non-vested stock | 0 | 0 | ||||
Shared-based compensation | 1,655 | 2,917 | 2,668 | 1,484 | ||
Other | 0 | 0 | 0 | |||
Conversions of Class B Common Stock | 0 | |||||
Comprehensive income (loss) | 9,344 | (14,371) | (23,010) | (27,678) | ||
Ending balance | 452,733 | 441,778 | 437,528 | 457,855 | 452,733 | 437,528 |
Shareholders’ Equity Attributable to The Marcus Corporation | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (15,809) | (15,809) | ||||
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 24,498 | 24,345 | 24,049 | 23,264 | 24,345 | 23,264 |
Savings and profit-sharing contribution | 56 | 44 | ||||
Issuance of non-vested stock | 0 | 78 | 18 | 221 | ||
Conversions of Class B Common Stock | 19 | 275 | 520 | |||
Ending balance | 24,498 | 24,498 | 24,342 | 24,049 | 24,498 | 24,342 |
Capital in Excess of Par | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 149,234 | 145,656 | 138,446 | 153,529 | 145,656 | 153,529 |
Exercise of stock options | (16) | (5) | (40) | (659) | ||
Savings and profit-sharing contribution | 900 | 968 | ||||
Reissuance of treasury stock | (2) | 1 | (1) | 2 | ||
Issuance of non-vested stock | (305) | (236) | (157) | (367) | ||
Shared-based compensation | 1,655 | 2,917 | 2,668 | 1,484 | ||
Other | (1) | 1 | ||||
Ending balance | 150,565 | 149,234 | 140,916 | 138,446 | 150,565 | 140,916 |
Capital in Excess of Par | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (16,511) | (16,511) | ||||
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 274,403 | 289,306 | 304,468 | 331,897 | 289,306 | 331,897 |
Other | 1 | (1) | (1) | |||
Comprehensive income (loss) | 8,960 | (14,902) | (23,366) | (28,130) | ||
Ending balance | 283,364 | 274,403 | 281,102 | 304,468 | 283,364 | 281,102 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 702 | 702 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (10,913) | (11,444) | (14,481) | (14,933) | (11,444) | (14,933) |
Comprehensive income (loss) | 384 | 531 | 356 | 452 | ||
Ending balance | (10,529) | (10,913) | (14,125) | (14,481) | (10,529) | (14,125) |
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (2,555) | (1,379) | (2,033) | (2,960) | (1,379) | (2,960) |
Exercise of stock options | 69 | 31 | 122 | 1,951 | ||
Purchase of treasury stock | (104) | (1,373) | (73) | (1,181) | ||
Reissuance of treasury stock | 9 | 8 | 7 | 10 | ||
Issuance of non-vested stock | 305 | 158 | 139 | 146 | ||
Other | 1 | |||||
Ending balance | (2,276) | (2,555) | (1,838) | (2,033) | (2,276) | (1,838) |
Non- controlling Interest | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
Class B Common Stock | Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 7,111 | 7,130 | 7,406 | 7,926 | 7,130 | 7,926 |
Conversions of Class B Common Stock | (19) | (275) | (520) | |||
Ending balance | $ 7,111 | $ 7,111 | $ 7,131 | $ 7,406 | $ 7,111 | $ 7,131 |
General - Accumulated Other Com
General - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 30, 2021 |
Accounting Policies [Abstract] | ||
Unrecognized gain (loss) on interest rate swap agreements | $ 26 | $ (509) |
Net unrecognized actuarial loss for pension obligation | (10,555) | (10,935) |
Accumulated other comprehensive loss | $ (10,529) | $ (11,444) |
General - Defined Benefit Plan
General - Defined Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Accounting Policies [Abstract] | ||||
Service cost | $ 264 | $ 280 | $ 528 | $ 561 |
Interest cost | 335 | 301 | 670 | 601 |
Net amortization of prior service cost and actuarial loss | 257 | 327 | 514 | 655 |
Net periodic pension cost | $ 856 | $ 908 | $ 1,712 | $ 1,817 |
General - Revenue Recognition (
General - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | $ 190,305 | $ 89,130 | $ 314,934 | $ 136,584 |
Cost reimbursements | 8,250 | 3,417 | 15,863 | 6,750 |
Total revenues | 198,555 | 92,547 | 330,797 | 143,334 |
Theatre admissions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 63,087 | 24,915 | 101,504 | 35,600 |
Rooms | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 28,865 | 17,332 | 46,295 | 26,376 |
Theatre concessions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 58,147 | 23,061 | 93,611 | 32,980 |
Food and beverage | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 19,014 | 9,591 | 33,525 | 15,503 |
Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 21,192 | 14,231 | 39,999 | 26,125 |
Theatres | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost reimbursements | 0 | 44 | 0 | 87 |
Total revenues | 129,437 | 52,301 | 208,928 | 74,863 |
Theatres | Theatre admissions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 63,087 | 24,915 | 101,504 | 35,600 |
Theatres | Theatre concessions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 58,147 | 23,061 | 93,611 | 32,980 |
Theatres | Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 8,203 | 4,281 | 13,813 | 6,196 |
Hotels/Resorts | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost reimbursements | 8,250 | 3,373 | 15,863 | 6,663 |
Total revenues | 69,001 | 40,151 | 121,658 | 68,276 |
Hotels/Resorts | Rooms | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 28,865 | 17,332 | 46,295 | 26,376 |
Hotels/Resorts | Food and beverage | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 19,014 | 9,591 | 33,525 | 15,503 |
Hotels/Resorts | Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 12,872 | 9,855 | 25,975 | 19,734 |
Corporate | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total revenues | 117 | 95 | 211 | 195 |
Corporate | Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | $ 117 | $ 95 | $ 211 | $ 195 |
Impact of COVID-19 Pandemic (De
Impact of COVID-19 Pandemic (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jul. 01, 2021 USD ($) | Dec. 30, 2021 USD ($) hotel | |
Debt Instrument [Line Items] | ||||
Number of hotels opened | hotel | 8 | |||
Cash and cash equivalents | $ 57,741,000 | $ 17,658,000 | ||
Proceeds from tax refunds | 22,323,000 | $ 5,900,000 | ||
Grants received | $ 4,335,000 | |||
Federal | ||||
Debt Instrument [Line Items] | ||||
Proceeds from tax refunds | $ 22,959,000 | |||
Interest from income tax refunds | 636,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Available facility | 221,809,000 | |||
Maximum borrowing capacity | $ 225,000,000 |
Impairment Charges (Detail)
Impairment Charges (Detail) - Level 3 $ in Thousands | Jul. 01, 2021 USD ($) |
Impairment Charge [Line Items] | |
Impairment of fixed assets | $ 3,732 |
Impaired assets, fair value | $ 10,200 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Summary for Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 30, 2021 | |
Debt Disclosure [Abstract] | ||
Principal and interest payments | $ 39 | |
Interest rate of unsecured term note | 5.75% | |
Mortgage notes | $ 24,203 | $ 24,388 |
Senior notes | 90,000 | 90,000 |
Unsecured term note due February 2025, with monthly principal and interest payments of $39, bearing interest at 5.75% | 1,158 | 1,356 |
Convertible senior notes | 100,050 | 100,050 |
Payroll Protection Program loans | 2,712 | 3,181 |
Revolving credit agreement | 0 | 0 |
Debt issuance costs | (3,326) | (3,831) |
Total debt, net of debt issuance costs | 214,797 | 215,144 |
Less current maturities, net of issuance costs | 11,077 | 10,967 |
Long-term debt | 203,720 | 204,177 |
Short-term borrowings | 46,628 | 47,346 |
Total debt and short-term borrowings, net of issuance costs | $ 261,425 | $ 262,490 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||||
Dec. 31, 2022 USD ($) | Dec. 29, 2022 USD ($) | Sep. 29, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 30, 2021 USD ($) | Sep. 17, 2020 USD ($) $ / shares | Mar. 30, 2023 | Jun. 30, 2022 USD ($) agreement | Dec. 30, 2021 USD ($) agreement | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jul. 13, 2021 USD ($) | Sep. 22, 2020 | Apr. 29, 2020 USD ($) | Mar. 01, 2018 USD ($) instrument | |
Covenant for EBITDA | $ 25,000,000 | $ 10,000,000 | $ 50,000,000 | |||||||||||||
Covenant for the amount of liquidity | $ 100,000,000 | $ 100,000,000 | 100,000,000 | 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||||
Minimum amount of reduction in liquidity for covenant | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||||
Covenant regarding the capital expenditure | 40,000,000 | |||||||||||||||
Proceeds from sale of assets | 820,000 | |||||||||||||||
Unrestricted cash on had requirements | 75,000,000 | 75,000,000 | 75,000,000 | |||||||||||||
Senior notes | 90,000,000 | 90,000,000 | $ 90,000,000 | 90,000,000 | $ 90,000,000 | |||||||||||
Trading period | 20 days | 20 days | ||||||||||||||
Threshold trading days | 30 days | 30 days | ||||||||||||||
Threshold percentage of conversion price on each applicable trading day | 130% | |||||||||||||||
Amount of hedged item | $ 50,000,000 | |||||||||||||||
Interest Rate Swap | ||||||||||||||||
Derivative, Number of Instruments Held | instrument | 2 | |||||||||||||||
Notional amount | $ 25,000,000 | |||||||||||||||
Fair value of the interest rate swaps, assets | 34,000 | $ 34,000 | $ 34,000 | |||||||||||||
Fair value of the interest rate swaps, liabilities | $ 689,000 | $ 689,000 | ||||||||||||||
Interest Rate Swap Agreements One | ||||||||||||||||
Fixed interest rate | 2.559% | 2.559% | 2.559% | |||||||||||||
Interest Rate Swap Agreements Two | ||||||||||||||||
Notional amount | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | |||||||||||||
Fixed interest rate | 2.687% | 2.687% | 2.687% | |||||||||||||
Forecast | ||||||||||||||||
Covenant for EBITDA | $ 70,000,000 | $ 65,000,000 | ||||||||||||||
Covenant for the amount of liquidity | $ 50,000,000 | |||||||||||||||
Covenant regarding the capital expenditure | $ 50,000,000 | |||||||||||||||
LIBOR | Interest Rate Swap | ||||||||||||||||
Variable interest rate | 1.063% | 1.063% | 1.063% | |||||||||||||
Term Loan A | ||||||||||||||||
Term loan current | $ 46,628,000 | $ 46,628,000 | $ 46,628,000 | |||||||||||||
Term Loan A | LIBOR | ||||||||||||||||
Specified margin (as a percent) | 2.75% | |||||||||||||||
Term Loan A | ABR | ||||||||||||||||
Specified margin (as a percent) | 1.75% | |||||||||||||||
Term Loan A | Term Loan, First Amendment | ||||||||||||||||
Face amount | $ 90,800,000 | |||||||||||||||
Term Loan A | Term Loan, Third Amendment | ||||||||||||||||
Face amount | $ 50,000,000 | |||||||||||||||
Note Purchase Agreement | ||||||||||||||||
Number of purchase agreements | agreement | 2 | 2 | ||||||||||||||
Note Purchase Agreement | Minimum | ||||||||||||||||
Interest rate (as a percent) | 4.02% | 4.02% | 4.02% | 4.02% | 4.02% | |||||||||||
Note Purchase Agreement | Maximum | ||||||||||||||||
Interest rate (as a percent) | 4.32% | 4.32% | 4.32% | 4.32% | 4.32% | |||||||||||
Convertible Debt | ||||||||||||||||
Face amount | $ 100,050,000 | |||||||||||||||
Interest rate (as a percent) | 5% | 5% | ||||||||||||||
Threshold percentage of conversion price on each applicable trading day | 98% | |||||||||||||||
Conversion rate | 90.8038 | |||||||||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 11.01 | |||||||||||||||
Initial conversion premium | 22.50% | |||||||||||||||
Share price (in dollars per share) | $ / shares | $ 8.99 | |||||||||||||||
Purchase price as a percentage of principal amount | 100% | |||||||||||||||
Revolving Credit Facility | ||||||||||||||||
Maximum borrowing capacity | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 | |||||||||||||
Borrowing outstanding | 0 | 0 | 0 | |||||||||||||
Available facility | $ 221,809,000 | $ 221,809,000 | $ 221,809,000 | |||||||||||||
Facility fee (as a percent) | 0.40% | |||||||||||||||
Revolving Credit Facility | LIBOR | ||||||||||||||||
Specified margin (as a percent) | 6.10% | |||||||||||||||
Revolving Credit Facility | ABR | ||||||||||||||||
Specified margin (as a percent) | 1.35% | |||||||||||||||
Credit Agreement | ||||||||||||||||
Interest rate (as a percent) | 1% | 1% | 1% | |||||||||||||
Priority debt as a percentage of consolidated total capitalization | 20% | |||||||||||||||
Consolidated debt to capitalization ratio | 0.55 | |||||||||||||||
Credit Agreement | Forecast | ||||||||||||||||
Consolidated fixed charge coverage ratio | 3 | |||||||||||||||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | ||||||||||||||||
Specified margin (as a percent) | 0.50% | |||||||||||||||
Credit Agreement | Minimum | ||||||||||||||||
Facility fee (as a percent) | 0.125% | |||||||||||||||
Credit Agreement | Maximum | ||||||||||||||||
Facility fee (as a percent) | 0.25% | |||||||||||||||
Credit Agreement | Subject to 1% Floor | LIBOR | ||||||||||||||||
Specified margin (as a percent) | 1% | |||||||||||||||
ABR | LIBOR | ||||||||||||||||
Specified margin (as a percent) | 2.35% |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Deferred rent payments under operating lease | $ 1,442 |
Long-term operating lease obligations | |
Deferred rent payments under operating lease | $ 698 |
Minimum | |
Lease terms (in years) | 1 year |
Maximum | |
Lease terms (in years) | 45 years |
Leases - Total lease cost (Deta
Leases - Total lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Finance lease costs: | ||||
Amortization of finance lease assets | $ 696 | $ 668 | $ 1,401 | $ 1,380 |
Interest on lease liabilities | 216 | 240 | 437 | 490 |
Total finance lease costs | 912 | 908 | 1,838 | 1,870 |
Operating lease costs: | ||||
Operating lease costs | 6,364 | 6,465 | 12,741 | 12,786 |
Variable lease cost | 178 | (158) | 15 | (173) |
Short-term lease cost | 36 | 37 | 72 | 72 |
Total operating lease costs | $ 6,578 | $ 6,344 | $ 12,828 | $ 12,685 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Financing cash flows from finance leases | $ 752 | $ 699 | $ 1,336 | $ 1,329 |
Operating cash flows from finance leases | 216 | 240 | 437 | 490 |
Operating cash flows from operating leases | 7,012 | 7,899 | 14,136 | 15,292 |
Right of use assets obtained in exchange for new lease obligations: | ||||
Finance lease liabilities | 116 | 0 | 188 | 0 |
Operating lease liabilities | $ 0 | $ 0 | $ 183 | $ 1,575 |
Leases - Finance leases (Detail
Leases - Finance leases (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 30, 2021 |
Finance leases: | ||
Property and equipment – gross | $ 1,526,086 | $ 1,509,450 |
Accumulated depreciation and amortization | (770,460) | (738,258) |
Property and equipment - net | 755,626 | 771,192 |
Finance leases | ||
Finance leases: | ||
Property and equipment – gross | 75,262 | 75,124 |
Accumulated depreciation and amortization | (59,552) | (58,197) |
Property and equipment - net | $ 15,710 | $ 16,927 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jun. 30, 2022 | Dec. 30, 2021 |
Weighted-average remaining lease terms: | ||
Finance leases | 8 years | 8 years |
Operating leases | 13 years | 13 years |
Weighted-average discount rates: | ||
Finance leases | 4.58% | 4.58% |
Operating leases | 4.60% | 4.48% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | Dec. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate, percent | 34.70% | 26.30% | 23.10% | 27% | |
Income tax refund claims | $ 24,151 | ||||
Proceeds from income tax refunds | $ 1,828 | ||||
Proceeds from tax refunds | $ 22,323 | $ 5,900 | |||
Additional interest received | $ 636 |
Joint Venture Transactions (Det
Joint Venture Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Gain on disposition of property, equipment and other assets | $ (69) | $ (164) | $ 355 | $ 2,040 |
Corporate Joint Venture | ||||
Sale of interest in equity investment | 4,150 | |||
Gain on disposition of property, equipment and other assets | $ 2,079 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 198,555 | $ 92,547 | $ 330,797 | $ 143,334 |
Operating income (loss) | 18,893 | (26,110) | 2,096 | (61,771) |
Depreciation and amortization | 16,752 | 18,494 | 33,983 | 36,473 |
Theatres | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 129,437 | 52,301 | 208,928 | 74,863 |
Operating income (loss) | 16,430 | (18,215) | 8,410 | (43,854) |
Depreciation and amortization | 11,863 | 13,385 | 24,054 | 26,171 |
Hotels/ Resorts | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 69,001 | 40,151 | 121,658 | 68,276 |
Operating income (loss) | 6,817 | (2,239) | 3,843 | (7,947) |
Depreciation and amortization | 4,801 | 5,047 | 9,751 | 10,174 |
Corporate Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 117 | 95 | 211 | 195 |
Operating income (loss) | (4,354) | (5,656) | (10,157) | (9,970) |
Depreciation and amortization | $ 88 | $ 62 | $ 178 | $ 128 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jul. 29, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jul. 01, 2021 USD ($) | |
Subsequent Event [Line Items] | |||
Repayments on short-term borrowings | $ | $ 820 | $ 4,150 | |
Credit Agreement | Maximum | |||
Subsequent Event [Line Items] | |||
Fixed charge coverage ratio requirements | 3 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Repayments on short-term borrowings | $ | $ 46,628 | ||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.05 | ||
Subsequent Event | Class B Common Stock | |||
Subsequent Event [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.045 | ||
Subsequent Event | Credit Agreement | Minimum | |||
Subsequent Event [Line Items] | |||
Fixed charge coverage ratio requirements | 2.5 |