Cover
Cover - shares | 6 Months Ended | |
Jun. 29, 2023 | Jul. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2023 | |
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, $1.00 par value | |
Trading Symbol | MCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000062234 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,611,944 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,078,410 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 29, 2023 | Dec. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 44,580 | $ 21,704 |
Restricted cash | 4,274 | 2,802 |
Accounts receivable, net of reserves of $163 and $172, respectively | 20,591 | 21,455 |
Assets held for sale | 558 | 460 |
Other current assets | 21,579 | 17,474 |
Total current assets | 91,582 | 63,895 |
Property and equipment: | ||
Land and improvements | 131,229 | 132,285 |
Buildings and improvements | 730,955 | 729,177 |
Leasehold improvements | 167,873 | 167,516 |
Furniture, fixtures and equipment | 397,710 | 386,197 |
Finance lease right-of-use assets | 29,998 | 29,885 |
Construction in progress | 5,461 | 10,305 |
Total property and equipment | 1,463,226 | 1,455,365 |
Less accumulated depreciation and amortization | 764,048 | 739,600 |
Net property and equipment | 699,178 | 715,765 |
Operating lease right-of-use assets | 187,275 | 194,965 |
Other assets: | ||
Investments in joint ventures | 1,865 | 2,067 |
Goodwill | 74,996 | 75,015 |
Other | 13,054 | 12,891 |
Total other assets | 89,915 | 89,973 |
TOTAL ASSETS | 1,067,950 | 1,064,598 |
Current liabilities: | ||
Accounts payable | 40,636 | 32,187 |
Income taxes | 361 | 0 |
Taxes other than income taxes | 19,618 | 17,948 |
Accrued compensation | 18,901 | 22,512 |
Other accrued liabilities | 56,861 | 56,275 |
Current portion of finance lease obligations | 2,538 | 2,488 |
Current portion of operating lease obligations | 14,596 | 14,553 |
Current maturities of long-term debt | 10,391 | 10,432 |
Total current liabilities | 163,902 | 156,395 |
Finance lease obligations | 13,899 | 15,014 |
Operating lease obligations | 187,026 | 195,281 |
Long-term debt | 169,784 | 170,005 |
Deferred income taxes | 27,292 | 26,567 |
Other long-term obligations | 44,605 | 44,415 |
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 | 158,231 | 153,794 |
Retained earnings | 275,157 | 274,254 |
Accumulated other comprehensive loss | (1,797) | (1,694) |
Stockholders' equity before treasury stock | 463,361 | 457,963 |
Less cost of Common Stock in treasury (90,888 shares at June 29, 2023 and 78,882 shares at December 29, 2022) | (1,919) | (1,866) |
Total shareholders’ equity attributable to The Marcus Corporation | 461,442 | 456,097 |
Noncontrolling interest | 0 | 824 |
Total equity | 461,442 | 456,921 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,067,950 | 1,064,598 |
Common Stock | ||
Shareholders’ equity attributable to The Marcus Corporation | ||
Common Stock | 24,692 | 24,498 |
Class B Common Stock | ||
Shareholders’ equity attributable to The Marcus Corporation | ||
Common Stock | $ 7,078 | $ 7,111 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2023 | Dec. 29, 2022 |
Accounts receivables | $ 163 | $ 172 |
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) | 90,888 | 78,882 |
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) | 24,691,548 | 24,498,243 |
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) | 7,078,410 | 7,110,875 |
Common stock, outstanding (in shares) | 7,078,410 | 7,110,875 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Revenues other than cost reimbursements | $ 197,341 | $ 190,305 | $ 340,089 | $ 314,934 |
Cost reimbursements | 9,666 | 8,250 | 19,194 | 15,863 |
Total revenues | 207,007 | 198,555 | 359,283 | 330,797 |
Costs and expenses: | ||||
Advertising and marketing | 5,613 | 5,978 | 10,678 | 10,459 |
Administrative | 19,466 | 17,627 | 39,317 | 36,708 |
Depreciation and amortization | 15,994 | 16,752 | 31,870 | 33,983 |
Rent | 6,594 | 6,578 | 13,087 | 12,828 |
Property taxes | 4,532 | 4,980 | 9,289 | 9,725 |
Other operating expenses | 10,015 | 9,261 | 20,064 | 18,935 |
Reimbursed costs | 9,666 | 8,250 | 19,194 | 15,863 |
Total costs and expenses | 186,197 | 179,662 | 347,461 | 328,701 |
Operating income | 20,810 | 18,893 | 11,822 | 2,096 |
Other income (expense): | ||||
Investment income (loss) | 359 | (459) | 619 | (727) |
Interest expense | (3,093) | (4,063) | (6,101) | (8,155) |
Other income (expense) | (477) | (653) | (878) | (806) |
Equity earnings (losses) from unconsolidated joint ventures | (31) | 7 | (202) | (134) |
Nonoperating income (expense), total | (3,242) | (5,168) | (6,562) | (9,822) |
Earnings (loss) before income taxes | 17,568 | 13,725 | 5,260 | (7,726) |
Income tax expense (benefit) | 4,102 | 4,765 | 1,260 | (1,784) |
Net earnings (loss) | $ 13,466 | $ 8,960 | $ 4,000 | $ (5,942) |
Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Net loss per share - basic (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.13 | $ (0.19) |
Net earnings (loss) per share - diluted: | ||||
Net earnings (loss) per share - diluted (in dollars per share) | 0.35 | 0.24 | 0.13 | (0.19) |
Class B Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Net loss per share - basic (in dollars per share) | 0.39 | 0.26 | 0.12 | (0.18) |
Net earnings (loss) per share - diluted: | ||||
Net earnings (loss) per share - diluted (in dollars per share) | $ 0.34 | $ 0.23 | $ 0.12 | $ (0.18) |
Theatre admissions | ||||
Revenues: | ||||
Revenues | $ 68,987 | $ 63,087 | $ 116,622 | $ 101,504 |
Rooms | ||||
Revenues: | ||||
Revenues | 28,646 | 28,865 | 46,503 | 46,295 |
Costs and expenses: | ||||
Costs | 10,360 | 10,471 | 19,638 | 18,674 |
Theatre concessions | ||||
Revenues: | ||||
Revenues | 59,707 | 58,147 | 102,082 | 93,611 |
Costs and expenses: | ||||
Costs | 22,601 | 22,993 | 38,331 | 38,186 |
Food and beverage | ||||
Revenues: | ||||
Revenues | 18,573 | 19,014 | 33,766 | 33,525 |
Costs and expenses: | ||||
Costs | 14,451 | 15,035 | 28,019 | 27,175 |
Other revenues | ||||
Revenues: | ||||
Revenues | 21,428 | 21,192 | 41,116 | 39,999 |
Theatre operations | ||||
Costs and expenses: | ||||
Costs | $ 66,905 | $ 61,737 | $ 117,974 | $ 106,165 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 13,466 | $ 8,960 | $ 4,000 | $ (5,942) |
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 (benefit) of $(4), $67, $(9) and $134, respectively | (12) | 190 | (23) | 380 |
Fair market value adjustment of interest rate swap, net of tax effect (benefit) of $0, $37, $(8) and $116, respectively | 0 | 106 | (22) | 329 |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect (benefit) of $0, $31, $(20) and $72, respectively | 0 | 88 | (58) | 206 |
Other comprehensive income (loss) | (12) | 384 | (103) | 915 |
Comprehensive income (loss) | $ 13,454 | $ 9,344 | $ 3,897 | $ (5,027) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect | $ (4) | $ 67 | $ (9) | $ 134 |
Fair market value adjustment of interest rate swap, net of tax effect | 0 | 37 | (8) | 116 |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect | $ 0 | $ 31 | $ (20) | $ 72 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2023 | Jun. 30, 2022 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 4,000 | $ (5,942) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Losses on investments in joint ventures | 202 | 134 |
(Gain) loss on disposition of property, equipment and other assets | 777 | (355) |
Depreciation and amortization | 31,870 | 33,983 |
Amortization of debt issuance costs | 742 | 826 |
Share-based compensation | 3,687 | 4,572 |
Deferred income taxes | 780 | (1,505) |
Other long-term obligations | 176 | (49) |
Contribution of the Company’s stock to savings and profit-sharing plan | 1,259 | 956 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 895 | 2,629 |
Government grants receivable | 0 | 4,335 |
Other assets | (1,796) | (4,294) |
Operating leases | (522) | (1,047) |
Accounts payable | 6,341 | 551 |
Income taxes | 94 | 22,720 |
Taxes other than income taxes | 1,670 | (347) |
Accrued compensation | (3,634) | (1,595) |
Other accrued liabilities | 785 | (344) |
Total adjustments | 43,326 | 61,170 |
Net cash provided by operating activities | 47,326 | 55,228 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (15,896) | (16,341) |
Proceeds from disposals of property, equipment and other assets | 46 | 4,821 |
Proceeds from sale of trading securities | 17 | 0 |
Purchase of trading securities | (514) | 0 |
Other investing activities | (295) | 45 |
Net cash used in investing activities | (16,642) | (11,475) |
Debt transactions: | ||
Proceeds from borrowings on revolving credit facility | 38,000 | 22,000 |
Repayment of borrowings on revolving credit facility | (38,000) | (22,000) |
Repayments on short-term borrowings | 0 | (820) |
Principal payments on long-term debt | (763) | (851) |
Debt issuance costs | (50) | 0 |
Principal payments on finance lease obligations | (1,201) | (1,336) |
Equity transactions: | ||
Treasury stock transactions, except for stock options | (494) | (1,461) |
Exercise of stock options | 93 | 79 |
Dividends paid | (3,097) | 0 |
Distributions to noncontrolling interest | (824) | 0 |
Net cash used in financing activities | (6,336) | (4,389) |
Net increase in cash, cash equivalents and restricted cash | 24,348 | 39,364 |
Cash, cash equivalents and restricted cash at beginning of period | 24,506 | 24,054 |
Cash, cash equivalents and restricted cash at end of period | 48,854 | 63,418 |
Supplemental Information: | ||
Interest paid, net of amounts capitalized | 4,622 | 7,054 |
Income taxes refunded (paid), including interest earned | (386) | 22,998 |
Change in accounts payable for additions to property, equipment and other assets | $ 2,096 | $ 2,003 |
General
General | 6 Months Ended |
Jun. 29, 2023 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation - The unaudited consolidated financial statements for the 13 and 26 weeks ended June 29, 2023 and June 30, 2022 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 29, 2023, 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 29, 2022. Accounting Policies - Refer to the Company’s audited consolidated financial statements (including footnotes) for the fiscal year ended December 29, 2022, contained in the Company’s Annual Report on Form 10-K for such year, for a description of the Company’s accounting policies. Noncontrolling Interest - 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 primary asset of this VIE, The Skirvin Hilton, was sold on December 16, 2022. The equity interest of outside owners in consolidated entities is recorded as noncontrolling interest in the consolidated balance sheets. 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 $15,986 and $31,854 for the 13 and 26 weeks ended June 29, 2023, respectively, and $16,744 and $33,967 for the 13 and 26 weeks ended June 30, 2022, 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 29, 2023, assets held for sale consists 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 29, 2023 or 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 29, 2023 or June 30, 2022. 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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Numerator: Net earnings (loss) $ 13,466 $ 8,960 $ 4,000 $ (5,942) Denominator (in thousands): Denominator for basic EPS 31,673 31,492 31,622 31,469 Effect of dilutive employee stock options 61 40 52 — Effect of convertible notes 9,201 9,085 — — Denominator for diluted EPS 40,935 40,617 31,674 31,469 Net earnings (loss) per share - basic: Common Stock $ 0.43 $ 0.29 $ 0.13 $ (0.19) Class B Common Stock $ 0.39 $ 0.26 $ 0.12 $ (0.18) Net earnings (loss) per share - diluted: Common Stock $ 0.35 $ 0.24 $ 0.13 $ (0.19) Class B Common Stock $ 0.34 $ 0.23 $ 0.12 $ (0.18) 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, approximately 61,791 common stock equivalents were excluded from the computation of diluted loss per share due to the Company’s net loss. During the 26 weeks ended June 29, 2023, and June 30, 2022, respectively, 9,200,907 and 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 29, 2023 and June 30, 2022 was as follows: Common Class B Capital Retained Accumulated Treasury Shareholders’ Non- Total BALANCES AT DECEMBER 29, 2022 $ 24,498 $ 7,111 $ 153,794 $ 274,254 $ (1,694) $ (1,866) $ 456,097 $ 824 $ 456,921 Cash dividends: $0.045 per share Class B Common Stock — — — (319) — — (319) — (319) $0.05 per share Common Stock — — — (1,229) — — (1,229) — (1,229) Exercise of stock options — — (1) — — 3 2 — 2 Purchase of treasury stock — — — — — (313) (313) — (313) Savings and profit-sharing contribution 79 — 1,180 — — — 1,259 — 1,259 Reissuance of treasury stock — — (3) — — 24 21 — 21 Issuance of non-vested stock 82 — (143) — — 61 — — — Shared-based compensation — — 2,172 — — — 2,172 — 2,172 Other — — 1 (1) — — — — — Conversions of Class B Common Stock 33 (33) — — — — — — — Distribution to noncontrolling interest — — — — — — — (550) (550) Comprehensive loss — — — (9,466) (91) — (9,557) — (9,557) BALANCES AT MARCH 30, 2023 $ 24,692 $ 7,078 $ 157,000 $ 263,239 $ (1,785) $ (2,091) $ 448,133 $ 274 $ 448,407 Cash dividends: $0.045 per share Class B Common Stock — — — (319) — — (319) — (319) $0.05 per share Common Stock — — — (1,230) — — (1,230) — (1,230) Exercise of stock options — — (25) — — 121 96 — 96 Purchase of treasury stock — — — — — (226) (226) — (226) Reissuance of treasury stock — — (204) — — 223 19 — 19 Issuance of non-vested stock — — (55) — — 55 — — — Shared-based compensation — — 1,515 — — — 1,515 — 1,515 Other — — — 1 — (1) — — — Distribution to noncontrolling interest — — — — — — — (274) (274) Comprehensive income (loss) — — — 13,466 (12) — 13,454 — 13,454 BALANCES AT JUNE 29, 2023 $ 24,692 $ 7,078 $ 158,231 $ 275,157 $ (1,797) $ (1,919) $ 461,442 $ — $ 461,442 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 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 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 29, December 29, Unrecognized gain on interest rate swap agreements $ — $ 80 Net unrecognized actuarial loss for pension obligation (1,797) $ (1,774) $ (1,797) $ (1,694) 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 29, 2023 and December 29, 2022, respectively, the Company’s $4,894 and $3,932 of debt and equity securities classified as trading were valued using Level 1 pricing inputs and were included in other current assets. At June 29, 2023 and December 29, 2022, respectively, the Company’s $34,999 and $6,000 of investments in money market funds 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 December 29, 2022, the Company’s $108 asset related to the Company’s interest rate swap contract was valued using Level 2 pricing inputs. This contracted terminated on March 1, 2023. 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 29, 2023 and December 29, 2022, 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. The carrying value of the Company’s financial instruments (including cash and cash equivalents, restricted cash, accounts receivable and accounts payable) approximates fair value. The fair value of the Company’s $80,000 of senior notes, valued using Level 2 pricing inputs, is approximately $72,187 at June 29, 2023, determined based upon discounted cash flows using current market interest rates for financial instruments with a similar average remaining life. The fair value of the Company's $100,050 of convertible senior notes, valued using Level 2 pricing inputs, is approximately $150,020 at June 29, 2023, determined based on market rates and the closing trading price of the convertible senior notes as of June 29, 2023. The carrying amounts of the Company’s remaining long-term debt approximate their fair values, determined using current rates for similar instruments, or Level 2 pricing inputs. 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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Service cost $ 122 $ 264 $ 244 $ 528 Interest cost 452 335 905 670 Net amortization of prior service cost and actuarial loss (16) 257 (32) 514 Net periodic pension cost $ 558 $ 856 $ 1,117 $ 1,712 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 29, 2023 is as follows: 13 Weeks Ended June 29, 2023 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 68,987 $ — $ — $ 68,987 Rooms — 28,646 — 28,646 Theatre concessions 59,707 — — 59,707 Food and beverage — 18,573 — 18,573 Other revenues (1) 8,156 13,181 91 21,428 Cost reimbursements — 9,666 — 9,666 Total revenues $ 136,850 $ 70,066 $ 91 $ 207,007 26 Weeks Ended June 29, 2023 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 116,622 $ — $ — $ 116,622 Rooms — 46,503 — $ 46,503 Theatre concessions 102,082 — — $ 102,082 Food and beverage — 33,766 — $ 33,766 Other revenues (1) 14,522 26,414 180 $ 41,116 Cost reimbursements — 19,194 — $ 19,194 Total revenues $ 233,226 $ 125,877 $ 180 $ 359,283 (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 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 Company had deferred revenue from contracts with customers of $37,670 and $37,046 as of June 29, 2023 and December 29, 2022, respectively. The Company had no contract assets as of June 29, 2023 and December 29, 2022. During the 26 weeks ended June 29, 2023, the Company recognized revenue of $10,875 that was included in deferred revenues as of December 29, 2022. 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. 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 29, 2023, the amount of transaction price allocated to the remaining performance obligations under the Company’s advanced ticket sales was $1,980 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. As of June 29, 2023, the amount of transaction price allocated to the remaining performance obligations related to the amount of Theatres non-redeemed gift cards was $16,318 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues. The Company recognizes revenue as the tickets and gift cards are redeemed, which is expected to occur within the next two years. As of June 29, 2023, the amount of transaction price allocated to the remaining performance obligations related to the amount of Hotels and Resorts non-redeemed gift cards was $3,834 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. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 29, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is summarized as follows: June 29, 2023 December 29, 2022 Senior notes $ 80,000 $ 80,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39, bearing interest at 5.75% 744 954 Convertible senior notes 100,050 100,050 Payroll Protection Program loans 1,687 2,240 Revolving credit agreement — — Debt issuance costs (2,306) (2,807) Total debt, net of debt issuance costs 180,175 180,437 Less current maturities, net of issuance costs 10,391 10,432 Long-term debt $ 169,784 $ 170,005 Credit Agreement 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, on July 13, 2021, the Company entered into the Third Amendment, on July 29, 2022, the Company entered into the Fourth Amendment and on February 10, 2023, the Company entered into the Fifth Amendment (the Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment and the Fifth 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 29, 2023, there were borrowings of $0 outstanding on the revolving credit facility, which when borrowed, bear interest at the secured overnight financing rate (“SOFR”) plus a margin, effectively 6.22% at June 29, 2023. Availability under the line at June 29, 2023, was $220,623, after taking into consideration outstanding letters of credit that reduce revolver availability. Effective with the Fifth Amendment on February 10, 2023, the variable rate LIBOR benchmark in the Credit Agreement was replaced with SOFR. Borrowings under the Credit Agreement now generally bear interest at a variable rate equal to: (i) SOFR plus a credit spread adjustment of 0.10%, subject to a 0% floor, plus a specified margin based upon our 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 SOFR plus a credit spread adjustment of 0.10%), subject to a 1% floor, plus a specified margin based upon our 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 our consolidated debt to capitalization ratio, as defined in the Credit Agreement. 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 2.5 to 1.0 as of the end of the fiscal quarter ending March 30, 2023 and each fiscal quarter thereafter, and (d) restricts the Company’s ability to incur additional indebtedness 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. Beginning with the first quarter of fiscal 2023, the Company has returned to compliance with prior financial covenants under the Credit Agreement that were temporarily waived (specifically, the consolidated fixed charge coverage ratio), removing any limitations on the total amount of quarterly dividends or share repurchases. During fiscal 2022 the Credit Agreement limited the total amount of quarterly dividend payments or share repurchases to no more than $1,550 per quarter. 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 29, 2023 and December 29, 2022, the Company’s $80,000 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 was 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. The conversion rate is subject to adjustment for certain events, including distributions and dividends paid to holders of Common Stock. At June 29, 2023, the applicable conversion rate is 91.9631 shares of Common Stock per $1,000 principal amount of the Convertible Notes (equivalent to an applicable conversion price of approximately $10.87 per share of Common Stock). 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. Since the Company’s fiscal 2021 second quarter through the Company’s fiscal 2023 third quarter, 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. In connection with the pricing of the Convertible Notes on September 17, 2020, and in connection with the exercise by the Initial Purchasers (as defined in the Convertible Notes purchase agreement) of their option to purchase additional Convertible Notes on September 18, 2020, the Company entered into privately negotiated Capped Call Transactions (the “Capped Call Transactions”) with certain of the Initial Purchasers and/or their respective affiliates and/or other financial institutions (the “Capped Call Counterparties”). The Capped Call Transactions are expected generally to reduce potential dilution of the Company’s common stock upon any conversion of the Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of such converted Convertible Notes, as the case may be, in the event that the market price per share of the Company’s common stock, as measured under the terms of the Capped Call Transactions, is greater than the strike price of the Capped Call Transactions, which initially corresponds to the conversion price of the Convertible Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes. If, however, the market price per share of the Company’s common stock, as measured under the terms of the Capped Call Transactions, exceeds the cap price of the Capped Call Transactions, there would nevertheless be dilution to the extent that such market price exceeds the cap price of the Capped Call Transactions. The cap price of the Capped Call Transactions was initially $17.98 per share (in no event shall the cap price be less than the strike price of $11.0128), which represents a premium of 100% over the last reported sale price of the Common Stock of $8.99 per share on The New York Stock Exchange on September 17, 2020. Under the terms of the Capped Call Transactions, the cap price is subject to adjustment for certain events, including distributions and dividends paid to holders of Common Stock. At June 29, 2023, the adjusted cap price is approximately $17.75 per share. The Capped Call Transactions are separate transactions entered into by the Company with the Capped Call Counterparties, are not part |
Leases
Leases | 6 Months Ended |
Jun. 29, 2023 | |
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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 688 $ 696 $ 1,379 $ 1,401 Interest on lease liabilities Interest expense 192 216 390 437 $ 880 $ 912 $ 1,769 $ 1,838 Operating lease costs: Operating lease costs Rent expense $ 6,033 $ 6,364 $ 12,077 $ 12,741 Variable lease cost Rent expense 527 178 943 15 Short-term lease cost Rent expense 34 36 67 72 $ 6,594 $ 6,578 $ 13,087 $ 12,828 Additional information related to leases is as follows: 13 Weeks Ended 26 Weeks Ended Other Information June 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 645 $ 752 $ 1,201 $ 1,336 Operating cash flows from finance leases 192 216 390 437 Operating cash flows from operating leases 6,429 7,012 12,859 $ 14,136 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 136 116 136 188 Operating lease liabilities — — — 183 June 29, 2023 December 29, 2022 Finance leases: Property and equipment – gross $ 29,997 $ 29,885 Accumulated depreciation and amortization (16,687) (15,332) Property and equipment - net $ 13,310 $ 14,553 Remaining lease terms and discount rates are as follows: Lease Term and Discount Rate June 29, 2023 December 29, 2022 Weighted-average remaining lease terms: Finance leases 7 years 7 years Operating leases 12 years 12 years Weighted-average discount rates: Finance leases 4.59 % 4.59 % Operating leases 4.51 % 4.51 % Deferred rent payments of approximately $753 for the Company’s operating leases have been included in the total operating lease obligations as of June 29, 2023, of which approximately $550 is included in long-term operating lease obligations. |
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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 688 $ 696 $ 1,379 $ 1,401 Interest on lease liabilities Interest expense 192 216 390 437 $ 880 $ 912 $ 1,769 $ 1,838 Operating lease costs: Operating lease costs Rent expense $ 6,033 $ 6,364 $ 12,077 $ 12,741 Variable lease cost Rent expense 527 178 943 15 Short-term lease cost Rent expense 34 36 67 72 $ 6,594 $ 6,578 $ 13,087 $ 12,828 Additional information related to leases is as follows: 13 Weeks Ended 26 Weeks Ended Other Information June 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 645 $ 752 $ 1,201 $ 1,336 Operating cash flows from finance leases 192 216 390 437 Operating cash flows from operating leases 6,429 7,012 12,859 $ 14,136 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 136 116 136 188 Operating lease liabilities — — — 183 June 29, 2023 December 29, 2022 Finance leases: Property and equipment – gross $ 29,997 $ 29,885 Accumulated depreciation and amortization (16,687) (15,332) Property and equipment - net $ 13,310 $ 14,553 Remaining lease terms and discount rates are as follows: Lease Term and Discount Rate June 29, 2023 December 29, 2022 Weighted-average remaining lease terms: Finance leases 7 years 7 years Operating leases 12 years 12 years Weighted-average discount rates: Finance leases 4.59 % 4.59 % Operating leases 4.51 % 4.51 % Deferred rent payments of approximately $753 for the Company’s operating leases have been included in the total operating lease obligations as of June 29, 2023, of which approximately $550 is included in long-term operating lease obligations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective income tax rate for the 13 and 26 weeks ended June 29, 2023 was 23.3% and 24.0%, respectively, and was 34.7% and 23.1% for the 13 and 26 weeks ended June 30, 2022, 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 June 30, 2022, the Company received $22,959 of income tax refunds related to its fiscal 2020 tax return, including $636 of interest which is included within income tax benefit in the consolidated statement of earnings (loss). |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 29, 2023 | |
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 29, 2023 and June 30, 2022: 13 Weeks Ended Theatres Hotels/ Corporate Total June 29, 2023 Revenues $ 136,850 $ 70,066 $ 91 $ 207,007 Operating income (loss) 19,811 6,105 (5,106) 20,810 Depreciation and amortization 11,317 4,588 89 15,994 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 26 Weeks Ended Theatres Hotels/ Corporate Total June 29, 2023 Revenues $ 233,226 $ 125,877 $ 180 $ 359,283 Operating income (loss) 21,330 1,073 (10,581) 11,822 Depreciation and amortization 22,805 8,889 176 31,870 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 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 13,466 | $ 8,960 | $ 4,000 | $ (5,942) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The unaudited consolidated financial statements for the 13 and 26 weeks ended June 29, 2023 and June 30, 2022 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 29, 2023, 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 29, 2022. |
Noncontrolling Interests | Noncontrolling Interest - 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 primary asset of this VIE, The Skirvin Hilton, was sold on December 16, 2022. The equity interest of outside owners in consolidated entities is recorded as noncontrolling interest in the consolidated balance sheets. |
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 $15,986 and $31,854 for the 13 and 26 weeks ended June 29, 2023, respectively, and $16,744 and $33,967 for the 13 and 26 weeks ended June 30, 2022, 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 29, 2023, assets held for sale consists 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 29, 2023 or 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 29, 2023 or June 30, 2022. |
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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Numerator: Net earnings (loss) $ 13,466 $ 8,960 $ 4,000 $ (5,942) Denominator (in thousands): Denominator for basic EPS 31,673 31,492 31,622 31,469 Effect of dilutive employee stock options 61 40 52 — Effect of convertible notes 9,201 9,085 — — Denominator for diluted EPS 40,935 40,617 31,674 31,469 Net earnings (loss) per share - basic: Common Stock $ 0.43 $ 0.29 $ 0.13 $ (0.19) Class B Common Stock $ 0.39 $ 0.26 $ 0.12 $ (0.18) Net earnings (loss) per share - diluted: Common Stock $ 0.35 $ 0.24 $ 0.13 $ (0.19) Class B Common Stock $ 0.34 $ 0.23 $ 0.12 $ (0.18) |
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 29, 2023 and December 29, 2022, respectively, the Company’s $4,894 and $3,932 of debt and equity securities classified as trading were valued using Level 1 pricing inputs and were included in other current assets. At June 29, 2023 and December 29, 2022, respectively, the Company’s $34,999 and $6,000 of investments in money market funds 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 December 29, 2022, the Company’s $108 asset related to the Company’s interest rate swap contract was valued using Level 2 pricing inputs. This contracted terminated on March 1, 2023. 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 29, 2023 and December 29, 2022, 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. The carrying value of the Company’s financial instruments (including cash and cash equivalents, restricted cash, accounts receivable and accounts payable) approximates fair value. The fair value of the Company’s $80,000 of senior notes, valued using Level 2 pricing inputs, is approximately $72,187 at June 29, 2023, determined based upon discounted cash flows using current market interest rates for financial instruments with a similar average remaining life. The fair value of the Company's $100,050 of convertible senior notes, valued using Level 2 pricing inputs, is approximately $150,020 at June 29, 2023, determined based on market rates and the closing trading price of the convertible senior notes as of June 29, 2023. The carrying amounts of the Company’s remaining long-term debt approximate their fair values, determined using current rates for similar instruments, or Level 2 pricing inputs. |
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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Service cost $ 122 $ 264 $ 244 $ 528 Interest cost 452 335 905 670 Net amortization of prior service cost and actuarial loss (16) 257 (32) 514 Net periodic pension cost $ 558 $ 856 $ 1,117 $ 1,712 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 29, 2023 is as follows: 13 Weeks Ended June 29, 2023 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 68,987 $ — $ — $ 68,987 Rooms — 28,646 — 28,646 Theatre concessions 59,707 — — 59,707 Food and beverage — 18,573 — 18,573 Other revenues (1) 8,156 13,181 91 21,428 Cost reimbursements — 9,666 — 9,666 Total revenues $ 136,850 $ 70,066 $ 91 $ 207,007 26 Weeks Ended June 29, 2023 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 116,622 $ — $ — $ 116,622 Rooms — 46,503 — $ 46,503 Theatre concessions 102,082 — — $ 102,082 Food and beverage — 33,766 — $ 33,766 Other revenues (1) 14,522 26,414 180 $ 41,116 Cost reimbursements — 19,194 — $ 19,194 Total revenues $ 233,226 $ 125,877 $ 180 $ 359,283 (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 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 Company had deferred revenue from contracts with customers of $37,670 and $37,046 as of June 29, 2023 and December 29, 2022, respectively. The Company had no contract assets as of June 29, 2023 and December 29, 2022. During the 26 weeks ended June 29, 2023, the Company recognized revenue of $10,875 that was included in deferred revenues as of December 29, 2022. 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. 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 29, 2023, the amount of transaction price allocated to the remaining performance obligations under the Company’s advanced ticket sales was $1,980 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. As of June 29, 2023, the amount of transaction price allocated to the remaining performance obligations related to the amount of Theatres non-redeemed gift cards was $16,318 and is reflected in the Company’s consolidated balance sheet as part of deferred revenues. The Company recognizes revenue as the tickets and gift cards are redeemed, which is expected to occur within the next two years. As of June 29, 2023, the amount of transaction price allocated to the remaining performance obligations related to the amount of Hotels and Resorts non-redeemed gift cards was $3,834 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. |
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. |
General (Tables)
General (Tables) | 6 Months Ended |
Jun. 29, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Earnings (Loss) Per Share | 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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Numerator: Net earnings (loss) $ 13,466 $ 8,960 $ 4,000 $ (5,942) Denominator (in thousands): Denominator for basic EPS 31,673 31,492 31,622 31,469 Effect of dilutive employee stock options 61 40 52 — Effect of convertible notes 9,201 9,085 — — Denominator for diluted EPS 40,935 40,617 31,674 31,469 Net earnings (loss) per share - basic: Common Stock $ 0.43 $ 0.29 $ 0.13 $ (0.19) Class B Common Stock $ 0.39 $ 0.26 $ 0.12 $ (0.18) Net earnings (loss) per share - diluted: Common Stock $ 0.35 $ 0.24 $ 0.13 $ (0.19) Class B Common Stock $ 0.34 $ 0.23 $ 0.12 $ (0.18) |
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 29, 2023 and June 30, 2022 was as follows: Common Class B Capital Retained Accumulated Treasury Shareholders’ Non- Total BALANCES AT DECEMBER 29, 2022 $ 24,498 $ 7,111 $ 153,794 $ 274,254 $ (1,694) $ (1,866) $ 456,097 $ 824 $ 456,921 Cash dividends: $0.045 per share Class B Common Stock — — — (319) — — (319) — (319) $0.05 per share Common Stock — — — (1,229) — — (1,229) — (1,229) Exercise of stock options — — (1) — — 3 2 — 2 Purchase of treasury stock — — — — — (313) (313) — (313) Savings and profit-sharing contribution 79 — 1,180 — — — 1,259 — 1,259 Reissuance of treasury stock — — (3) — — 24 21 — 21 Issuance of non-vested stock 82 — (143) — — 61 — — — Shared-based compensation — — 2,172 — — — 2,172 — 2,172 Other — — 1 (1) — — — — — Conversions of Class B Common Stock 33 (33) — — — — — — — Distribution to noncontrolling interest — — — — — — — (550) (550) Comprehensive loss — — — (9,466) (91) — (9,557) — (9,557) BALANCES AT MARCH 30, 2023 $ 24,692 $ 7,078 $ 157,000 $ 263,239 $ (1,785) $ (2,091) $ 448,133 $ 274 $ 448,407 Cash dividends: $0.045 per share Class B Common Stock — — — (319) — — (319) — (319) $0.05 per share Common Stock — — — (1,230) — — (1,230) — (1,230) Exercise of stock options — — (25) — — 121 96 — 96 Purchase of treasury stock — — — — — (226) (226) — (226) Reissuance of treasury stock — — (204) — — 223 19 — 19 Issuance of non-vested stock — — (55) — — 55 — — — Shared-based compensation — — 1,515 — — — 1,515 — 1,515 Other — — — 1 — (1) — — — Distribution to noncontrolling interest — — — — — — — (274) (274) Comprehensive income (loss) — — — 13,466 (12) — 13,454 — 13,454 BALANCES AT JUNE 29, 2023 $ 24,692 $ 7,078 $ 158,231 $ 275,157 $ (1,797) $ (1,919) $ 461,442 $ — $ 461,442 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 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 |
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 29, December 29, Unrecognized gain on interest rate swap agreements $ — $ 80 Net unrecognized actuarial loss for pension obligation (1,797) $ (1,774) $ (1,797) $ (1,694) |
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 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Service cost $ 122 $ 264 $ 244 $ 528 Interest cost 452 335 905 670 Net amortization of prior service cost and actuarial loss (16) 257 (32) 514 Net periodic pension cost $ 558 $ 856 $ 1,117 $ 1,712 |
Schedule of Disaggregation of Revenue | The disaggregation of revenues by business segment for the 13 and 26 weeks ended June 29, 2023 is as follows: 13 Weeks Ended June 29, 2023 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 68,987 $ — $ — $ 68,987 Rooms — 28,646 — 28,646 Theatre concessions 59,707 — — 59,707 Food and beverage — 18,573 — 18,573 Other revenues (1) 8,156 13,181 91 21,428 Cost reimbursements — 9,666 — 9,666 Total revenues $ 136,850 $ 70,066 $ 91 $ 207,007 26 Weeks Ended June 29, 2023 Theatres Hotels/Resorts Corporate Total Theatre admissions $ 116,622 $ — $ — $ 116,622 Rooms — 46,503 — $ 46,503 Theatre concessions 102,082 — — $ 102,082 Food and beverage — 33,766 — $ 33,766 Other revenues (1) 14,522 26,414 180 $ 41,116 Cost reimbursements — 19,194 — $ 19,194 Total revenues $ 233,226 $ 125,877 $ 180 $ 359,283 (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 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. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term debt and short-term borrowings | Long-term debt is summarized as follows: June 29, 2023 December 29, 2022 Senior notes $ 80,000 $ 80,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39, bearing interest at 5.75% 744 954 Convertible senior notes 100,050 100,050 Payroll Protection Program loans 1,687 2,240 Revolving credit agreement — — Debt issuance costs (2,306) (2,807) Total debt, net of debt issuance costs 180,175 180,437 Less current maturities, net of issuance costs 10,391 10,432 Long-term debt $ 169,784 $ 170,005 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 29, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | Total lease cost consists of the following: 13 Weeks Ended 26 Weeks Ended Lease Cost Classification June 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Finance lease costs: Amortization of finance lease assets Depreciation and amortization $ 688 $ 696 $ 1,379 $ 1,401 Interest on lease liabilities Interest expense 192 216 390 437 $ 880 $ 912 $ 1,769 $ 1,838 Operating lease costs: Operating lease costs Rent expense $ 6,033 $ 6,364 $ 12,077 $ 12,741 Variable lease cost Rent expense 527 178 943 15 Short-term lease cost Rent expense 34 36 67 72 $ 6,594 $ 6,578 $ 13,087 $ 12,828 |
Schedule of Other Information Related to Leases | Additional information related to leases is as follows: 13 Weeks Ended 26 Weeks Ended Other Information June 29, 2023 June 30, 2022 June 29, 2023 June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 645 $ 752 $ 1,201 $ 1,336 Operating cash flows from finance leases 192 216 390 437 Operating cash flows from operating leases 6,429 7,012 12,859 $ 14,136 Right of use assets obtained in exchange for new lease obligations: Finance lease liabilities 136 116 136 188 Operating lease liabilities — — — 183 June 29, 2023 December 29, 2022 Finance leases: Property and equipment – gross $ 29,997 $ 29,885 Accumulated depreciation and amortization (16,687) (15,332) Property and equipment - net $ 13,310 $ 14,553 |
Schedule of Lease Term and Discount Rate | Remaining lease terms and discount rates are as follows: Lease Term and Discount Rate June 29, 2023 December 29, 2022 Weighted-average remaining lease terms: Finance leases 7 years 7 years Operating leases 12 years 12 years Weighted-average discount rates: Finance leases 4.59 % 4.59 % Operating leases 4.51 % 4.51 % |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 29, 2023 | |
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 29, 2023 and June 30, 2022: 13 Weeks Ended Theatres Hotels/ Corporate Total June 29, 2023 Revenues $ 136,850 $ 70,066 $ 91 $ 207,007 Operating income (loss) 19,811 6,105 (5,106) 20,810 Depreciation and amortization 11,317 4,588 89 15,994 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 26 Weeks Ended Theatres Hotels/ Corporate Total June 29, 2023 Revenues $ 233,226 $ 125,877 $ 180 $ 359,283 Operating income (loss) 21,330 1,073 (10,581) 11,822 Depreciation and amortization 22,805 8,889 176 31,870 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 |
General - Narrative (Details)
General - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | Dec. 29, 2022 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Ownership interest in joint ventures | 50% | 50% | |||
Depreciation | $ 15,986,000 | $ 16,744,000 | $ 31,854,000 | $ 33,967,000 | |
Percentage of cash dividends | 110% | ||||
Senior notes | 80,000,000 | $ 80,000,000 | $ 80,000,000 | ||
Convertible senior notes | 100,050,000 | 100,050,000 | 100,050,000 | ||
Deferred revenue | 37,670,000 | 37,670,000 | 37,046,000 | ||
Contract assets | 0 | 0 | 0 | ||
Deferred revenue, revenue recognized | 10,875,000 | $ 9,448,000 | |||
Remaining performance obligation related to hotels gift cards | 3,834,000 | 3,834,000 | |||
Theatres | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Remaining performance obligation related to gift cards | 16,318,000 | $ 16,318,000 | |||
Hotels/Resorts | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Expected period for revenue from non-redeemed gift cards | 2 years | ||||
Advanced Sale Of Tickets | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Remaining performance obligation, amount | 1,980,000 | $ 1,980,000 | |||
Expected period for redeemed revenue from advanced tickets and gift cards sales occurred | 2 years | ||||
Level 1 | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Trading securities, fair value | 4,894,000 | $ 4,894,000 | 3,932,000 | ||
Level 1 | Money Market Funds | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Investments, fair value | 34,999,000 | 34,999,000 | 6,000,000 | ||
Level 2 | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Fair value of the interest rate swaps, assets | 108,000 | ||||
Senior notes | 72,187,000 | 72,187,000 | |||
Level 2 | Convertible Debt | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Debt instrument, fair value | 150,020,000 | 150,020,000 | |||
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) | 61,791 | ||||
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) | 9,200,907 | 9,084,924 |
General - Schedule of Earnings
General - Schedule of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net earnings (loss) | $ 13,466 | $ 8,960 | $ 4,000 | $ (5,942) |
Denominator | ||||
Denominator for basic EPS (in shares) | 31,673 | 31,492 | 31,622 | 31,469 |
Effect of dilutive employee stock options (in shares) | 61 | 40 | 52 | 0 |
Effect of convertible notes (in shares) | 9,201 | 9,085 | 0 | 0 |
Denominator for diluted EPS (in shares) | 40,935 | 40,617 | 31,674 | 31,469 |
Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Net earnings (loss) per share - basic (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.13 | $ (0.19) |
Net earnings (loss) per share - diluted: | ||||
Net earnings (loss) per share - diluted (in dollars per share) | 0.35 | 0.24 | 0.13 | (0.19) |
Class B Common Stock | ||||
Net earnings (loss) per share - basic: | ||||
Net earnings (loss) per share - basic (in dollars per share) | 0.39 | 0.26 | 0.12 | (0.18) |
Net earnings (loss) per share - diluted: | ||||
Net earnings (loss) per share - diluted (in dollars per share) | $ 0.34 | $ 0.23 | $ 0.12 | $ (0.18) |
General - Schedule of Sharehold
General - Schedule of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2023 | Mar. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 448,407 | $ 456,921 | $ 441,778 | $ 453,614 | $ 456,921 | $ 453,614 |
Cash dividends | (1,230) | (1,229) | ||||
Exercise of stock options | 96 | 2 | 53 | 26 | ||
Purchase of treasury stock | (226) | (313) | (104) | (1,373) | ||
Savings and profit-sharing contribution | 1,259 | 956 | ||||
Reissuance of treasury stock | 19 | 21 | 7 | 9 | ||
Issuance of non-vested stock | 0 | 0 | 0 | 0 | ||
Shared-based compensation | 1,515 | 2,172 | 1,655 | 2,917 | ||
Other | 0 | 0 | 0 | |||
Conversions of Class B Common Stock | 0 | 0 | ||||
Distribution to noncontrolling interest | (274) | (550) | ||||
Comprehensive (loss) income | 13,454 | (9,557) | 9,344 | (14,371) | 3,897 | (5,027) |
Ending balance | 461,442 | 448,407 | 452,733 | 441,778 | 461,442 | 452,733 |
Shareholders’ Equity Attributable to The Marcus Corporation | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 448,133 | 456,097 | 441,778 | 453,614 | 456,097 | 453,614 |
Cash dividends | (1,230) | (1,229) | ||||
Exercise of stock options | 96 | 2 | 53 | 26 | ||
Purchase of treasury stock | (226) | (313) | (104) | (1,373) | ||
Savings and profit-sharing contribution | 1,259 | 956 | ||||
Reissuance of treasury stock | 19 | 21 | 7 | 9 | ||
Issuance of non-vested stock | 0 | 0 | 0 | 0 | ||
Shared-based compensation | 1,515 | 2,172 | 1,655 | 2,917 | ||
Other | 0 | 0 | 0 | |||
Conversions of Class B Common Stock | 0 | 0 | ||||
Distribution to noncontrolling interest | 0 | 0 | ||||
Comprehensive (loss) income | 13,454 | (9,557) | 9,344 | (14,371) | ||
Ending balance | 461,442 | 448,133 | 452,733 | 441,778 | 461,442 | 452,733 |
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 24,692 | 24,498 | 24,498 | 24,345 | 24,498 | 24,345 |
Savings and profit-sharing contribution | 79 | 56 | ||||
Issuance of non-vested stock | 0 | 82 | 0 | 78 | ||
Conversions of Class B Common Stock | 33 | 19 | ||||
Ending balance | 24,692 | 24,692 | 24,498 | 24,498 | 24,692 | 24,498 |
Capital in Excess of Par | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 157,000 | 153,794 | 149,234 | 145,656 | 153,794 | 145,656 |
Exercise of stock options | (25) | (1) | (16) | (5) | ||
Savings and profit-sharing contribution | 1,180 | 900 | ||||
Reissuance of treasury stock | (204) | (3) | (2) | 1 | ||
Issuance of non-vested stock | (55) | (143) | (305) | (236) | ||
Shared-based compensation | 1,515 | 2,172 | 1,655 | 2,917 | ||
Other | 0 | 1 | 1 | |||
Ending balance | 158,231 | 157,000 | 150,565 | 149,234 | 158,231 | 150,565 |
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 263,239 | 274,254 | 274,403 | 289,306 | 274,254 | 289,306 |
Cash dividends | (1,230) | (1,229) | ||||
Other | 1 | (1) | (1) | |||
Comprehensive (loss) income | 13,466 | (9,466) | 8,960 | (14,902) | ||
Ending balance | 275,157 | 263,239 | 283,364 | 274,403 | 275,157 | 283,364 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (1,785) | (1,694) | (10,913) | (11,444) | (1,694) | (11,444) |
Comprehensive (loss) income | (12) | (91) | 384 | 531 | ||
Ending balance | (1,797) | (1,785) | (10,529) | (10,913) | (1,797) | (10,529) |
Treasury Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (2,091) | (1,866) | (2,555) | (1,379) | (1,866) | (1,379) |
Exercise of stock options | 121 | 3 | 69 | 31 | ||
Purchase of treasury stock | (226) | (313) | (104) | (1,373) | ||
Reissuance of treasury stock | 223 | 24 | 9 | 8 | ||
Issuance of non-vested stock | 55 | 61 | 305 | 158 | ||
Other | (1) | 0 | ||||
Ending balance | (1,919) | (2,091) | (2,276) | (2,555) | (1,919) | (2,276) |
Non- controlling Interest | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 274 | 824 | 0 | 0 | 824 | 0 |
Distribution to noncontrolling interest | (274) | (550) | ||||
Comprehensive (loss) income | 0 | 0 | ||||
Ending balance | $ 0 | $ 274 | 0 | 0 | 0 | 0 |
Common Stock | ||||||
Common stock, dividends (in dollars per share) | $ 0.05 | $ 0.05 | ||||
Class B Common Stock | ||||||
Common stock, dividends (in dollars per share) | $ 0.045 | $ 0.045 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends | $ (319) | $ (319) | ||||
Class B Common Stock | Shareholders’ Equity Attributable to The Marcus Corporation | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends | (319) | (319) | ||||
Class B Common Stock | Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 7,078 | 7,111 | 7,111 | 7,130 | 7,111 | 7,130 |
Conversions of Class B Common Stock | (33) | (19) | ||||
Ending balance | 7,078 | 7,078 | $ 7,111 | $ 7,111 | $ 7,078 | $ 7,111 |
Class B Common Stock | Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends | $ (319) | $ (319) |
General - Schedule of Accumulat
General - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 29, 2023 | Dec. 29, 2022 |
Accounting Policies [Abstract] | ||
Unrecognized gain on interest rate swap agreements | $ 0 | $ 80 |
Net unrecognized actuarial loss for pension obligation | (1,797) | (1,774) |
Accumulated other comprehensive loss | $ (1,797) | $ (1,694) |
General - Schedule of Defined B
General - Schedule of Defined Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Service cost | $ 122 | $ 264 | $ 244 | $ 528 |
Interest cost | 452 | 335 | 905 | 670 |
Net amortization of prior service cost and actuarial loss | (16) | 257 | (32) | 514 |
Net periodic pension cost | $ 558 | $ 856 | $ 1,117 | $ 1,712 |
General - Schedule of Disaggreg
General - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Cost reimbursements | $ 9,666 | $ 8,250 | $ 19,194 | $ 15,863 |
Total revenues | 207,007 | 198,555 | 359,283 | 330,797 |
Theatre admissions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 68,987 | 63,087 | 116,622 | 101,504 |
Rooms | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 28,646 | 28,865 | 46,503 | 46,295 |
Theatre concessions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 59,707 | 58,147 | 102,082 | 93,611 |
Food and beverage | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 18,573 | 19,014 | 33,766 | 33,525 |
Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 21,428 | 21,192 | 41,116 | 39,999 |
Theatres | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost reimbursements | 0 | 0 | 0 | 0 |
Total revenues | 136,850 | 129,437 | 233,226 | 208,928 |
Theatres | Theatre admissions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 68,987 | 63,087 | 116,622 | 101,504 |
Theatres | Theatre concessions | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 59,707 | 58,147 | 102,082 | 93,611 |
Theatres | Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 8,156 | 8,203 | 14,522 | 13,813 |
Hotels/Resorts | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cost reimbursements | 9,666 | 8,250 | 19,194 | 15,863 |
Total revenues | 70,066 | 69,001 | 125,877 | 121,658 |
Hotels/Resorts | Rooms | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 28,646 | 28,865 | 46,503 | 46,295 |
Hotels/Resorts | Food and beverage | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 18,573 | 19,014 | 33,766 | 33,525 |
Hotels/Resorts | Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | 13,181 | 12,872 | 26,414 | 25,975 |
Corporate | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total revenues | 91 | 117 | 180 | 211 |
Corporate | Other revenues | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Revenues | $ 91 | $ 117 | $ 180 | $ 211 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term debt and short-term borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 30, 2023 | Jun. 29, 2023 | Dec. 29, 2022 | |
Debt Disclosure [Abstract] | |||
Principal and interest payments | $ 39 | $ 39 | |
Interest rate of unsecured term note | 5.75% | 5.75% | |
Senior notes | $ 80,000 | 80,000 | |
Unsecured term note due February 2025, with monthly principal and interest payments of $39, bearing interest at 5.75% | 744 | 954 | |
Convertible senior notes | 100,050 | 100,050 | |
Payroll Protection Program loans | 1,687 | 2,240 | |
Revolving credit agreement | 0 | 0 | |
Debt issuance costs | (2,306) | (2,807) | |
Total debt, net of debt issuance costs | 180,175 | 180,437 | |
Less current maturities, net of issuance costs | 10,391 | 10,432 | |
Long-term debt | $ 169,784 | $ 170,005 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 6 Months Ended | 12 Months Ended | 30 Months Ended | ||||
Jun. 29, 2023 USD ($) agreement $ / shares | Feb. 10, 2023 | Sep. 17, 2020 USD ($) $ / shares | Jun. 29, 2023 USD ($) agreement $ / shares | Dec. 29, 2022 USD ($) agreement | Sep. 28, 2023 | Sep. 22, 2020 | |
Senior notes | $ 80,000,000 | $ 80,000,000 | $ 80,000,000 | ||||
Trading period | 20 days | ||||||
Threshold trading days | 30 days | ||||||
Threshold percentage of conversion price on each applicable trading day | 130% | ||||||
Initial conversion premium | 100% | ||||||
Share price (in dollars per share) | $ / shares | $ 8.99 | ||||||
Cap price of capped call transactions (in dollars per share) | $ / shares | $ 17.75 | 17.98 | $ 17.75 | ||||
Strike price of capped call transactions (in dollars per share) | $ / shares | $ 11.0128 | ||||||
Forecast | |||||||
Trading period | 20 days | ||||||
Threshold trading days | 30 days | ||||||
Threshold percentage of conversion price on each applicable trading day | 130% | ||||||
Convertible Debt | |||||||
Interest rate (as a percent) | 5% | 5% | |||||
Face amount | $ 100,050,000 | ||||||
Threshold percentage of conversion price on each applicable trading day | 98% | ||||||
Conversion rate | 0.0919631 | 0.0908038 | |||||
Initial conversion price (in dollars per share) | $ / shares | $ 10.87 | $ 11.01 | $ 10.87 | ||||
Initial conversion premium | 22.50% | ||||||
Share price (in dollars per share) | $ / shares | $ 8.99 | ||||||
Purchase price as a percentage of principal amount | 100% | ||||||
Note Purchase Agreement | |||||||
Senior notes | $ 80,000,000 | $ 80,000,000 | $ 80,000,000 | ||||
Number of purchase agreements | agreement | 2 | 2 | 2 | ||||
Minimum | Note Purchase Agreement | |||||||
Interest rate (as a percent) | 4.02% | 4.02% | |||||
Maximum | Note Purchase Agreement | |||||||
Interest rate (as a percent) | 4.32% | 4.32% | |||||
Credit Agreement | |||||||
Maximum borrowing capacity | $ 225,000,000 | $ 225,000,000 | |||||
Borrowing outstanding | 0 | $ 0 | |||||
Specified margin (as a percent) | 0.50% | ||||||
Floor interest rate | 1% | ||||||
Priority debt as a percentage of consolidated total capitalization | 20% | ||||||
Consolidated debt to capitalization ratio | 0.55 | ||||||
Consolidated fixed charge coverage ratio | 2.5 | ||||||
Credit Agreement | Minimum | |||||||
Facility fee (as a percent) | 0.125% | ||||||
Credit Agreement | Maximum | |||||||
Facility fee (as a percent) | 0.25% | ||||||
Quarterly dividend payments or share repurchases | $ 1,550,000 | ||||||
Credit Agreement | SOFR | |||||||
Specified margin (as a percent) | 0.10% | ||||||
Floor interest rate | 0% | ||||||
Credit Agreement | SOFR | Subject to 1% Floor | |||||||
Specified margin (as a percent) | 1% | ||||||
Revolving Credit Facility | |||||||
Available facility | $ 220,623,000 | $ 220,623,000 | |||||
Revolving Credit Facility | SOFR | |||||||
Effective interest rate | 6.22% | 6.22% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Jun. 29, 2023 USD ($) |
Deferred rent payments under operating lease | $ 753 |
Long-Term Operating Lease Obligations | |
Deferred rent payments under operating lease | $ 550 |
Minimum | |
Lease terms (in years) | 1 year |
Maximum | |
Lease terms (in years) | 45 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Finance lease costs: | ||||
Amortization of finance lease assets | $ 688 | $ 696 | $ 1,379 | $ 1,401 |
Interest on lease liabilities | 192 | 216 | 390 | 437 |
Total finance lease costs | 880 | 912 | 1,769 | 1,838 |
Operating lease costs: | ||||
Operating lease costs | 6,033 | 6,364 | 12,077 | 12,741 |
Variable lease cost | 527 | 178 | 943 | 15 |
Short-term lease cost | 34 | 36 | 67 | 72 |
Total operating lease costs | $ 6,594 | $ 6,578 | $ 13,087 | $ 12,828 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Financing cash flows from finance leases | $ 645 | $ 752 | $ 1,201 | $ 1,336 |
Operating cash flows from finance leases | 192 | 216 | 390 | 437 |
Operating cash flows from operating leases | 6,429 | 7,012 | 12,859 | 14,136 |
Right of use assets obtained in exchange for new lease obligations: | ||||
Finance lease liabilities | 136 | 116 | 136 | 188 |
Operating lease liabilities | $ 0 | $ 0 | $ 0 | $ 183 |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Leases (Details) - USD ($) $ in Thousands | Jun. 29, 2023 | Dec. 29, 2022 |
Finance leases: | ||
Property and equipment – gross | $ 1,463,226 | $ 1,455,365 |
Accumulated depreciation and amortization | (764,048) | (739,600) |
Property and equipment - net | 699,178 | 715,765 |
Finance leases | ||
Finance leases: | ||
Property and equipment – gross | 29,997 | 29,885 |
Accumulated depreciation and amortization | (16,687) | (15,332) |
Property and equipment - net | $ 13,310 | $ 14,553 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Jun. 29, 2023 | Dec. 29, 2022 |
Weighted-average remaining lease terms: | ||
Finance leases | 7 years | 7 years |
Operating leases | 12 years | 12 years |
Weighted-average discount rates: | ||
Finance leases | 4.59% | 4.59% |
Operating leases | 4.51% | 4.51% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, percent | 23.30% | 34.70% | 24% | 23.10% |
Proceeds from tax refunds | $ 22,959 | |||
Interest income | $ 636 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2022 | Jun. 29, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 207,007 | $ 198,555 | $ 359,283 | $ 330,797 |
Operating income (loss) | 20,810 | 18,893 | 11,822 | 2,096 |
Depreciation and amortization | 15,994 | 16,752 | 31,870 | 33,983 |
Operating Segments | Theatres | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 136,850 | 129,437 | 233,226 | 208,928 |
Operating income (loss) | 19,811 | 16,430 | 21,330 | 8,410 |
Depreciation and amortization | 11,317 | 11,863 | 22,805 | 24,054 |
Operating Segments | Hotels/ Resorts | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 70,066 | 69,001 | 125,877 | 121,658 |
Operating income (loss) | 6,105 | 6,817 | 1,073 | 3,843 |
Depreciation and amortization | 4,588 | 4,801 | 8,889 | 9,751 |
Corporate Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 91 | 117 | ||
Operating income (loss) | (5,106) | (4,354) | ||
Depreciation and amortization | $ 89 | $ 88 | ||
Corporate Items | Corporate Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 180 | 211 | ||
Operating income (loss) | (10,581) | (10,157) | ||
Depreciation and amortization | $ 176 | $ 178 |