MCS - Earnings call transcript Q4 2017

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Operator

Good morning everyone and welcome to The Marcus Corporation Fourth Quarter Earnings Conference Call. My name is Bruce and I will be your operator for today. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session towards the end of this conference. [Operator Instructions] As a reminder, this conference is being recorded.

Greg Chief and Marcus Financial are and Executive Corporation. today Neis, Doug Officer us Marcus, Chief President Officer, Joining of the to At the like I'd Mr. over this to time, program turn Neis his opening for remarks. sir. ahead, Please go

Douglas A. Neis

fourth Thank you very year-end Welcome everybody call. quarter fiscal to conference and our much. XXXX

that forward-looking As our statements know stating call to making on today. begin need you plan a on usual, by I we number of

not about our and Our facilities; future revenues be regarding business RevPAR; growth could our earnings expectations forward-looking regarding the line and but limited future in room expectations; future made include, about division; in the expectations in and of our and statements and items rates quantity leisure about our earnings for and the film of available on to our type our Hotels and future products industry expenditures. our appeal expectations expectations Resorts to, occupancy plans group be markets; capital our us trends properties expectations the expectations to quality, future; and regarding non-operating statement; the statements rate audience travel our various expected our and and in number

our when materially or Of of and filings, impact by and course, be applicable, uncertainties XX-Q section www.marcuscorp.com. Web-site Factors expectations XX-K included We'll in Regulation our at actual our our are Company. from the SEC Risk results which also G from on the the which can post ability statements. Factors, those obtained differ disclosures, our projected suggested could forward-looking or could our risks, to achieve

quarter talk fiscal let's that fourth behind So about completed our us, year. fiscal our with and XXXX

and our [indiscernible]. performance industry, gain record earnings we record our one revenues, outperforming of record sale record Theatres the on year, in a and thanks and hotel release are quarter from once a press periods, again the operating noted, our of fiscal the net division both As to for reporting income nice

add tax we that the had also significant law. that You to to a due tax adjustment of course new

Resorts the from down income our outperformed reported and the division for results and for increased were in division the Hotels the slightly year sets full-year. So both competitive last this but also the we versus and quarter during our fourth quarter operating we year

Now turn these following format for basis usual I'm both on you the his then for first, the to some the our detail to going over of and take calls, call Greg division, going comments. for numbers to consolidated I'm a each through behind

income adjustment Now significant. look, the the tax logical so since be it's place would to start

the tax of what First that I only want Obviously a press to off, deferred over made in and year said quarter million Greg $XX income and was taxes record reduction the the adjustment. before better. year fiscal even the reiterate in quarter the much release. fourth This

one-time XXX% behind the of our over the depreciation related income math investments tax we've is made were adjustment personal includes on our law. new we with pretty portion taxes additions benefit property our years. fiscal that balance to year-end tax approximately the simple. deferred to sheet million Now at really Prior $XX that accelerated this that of largest adjustment, capital significant the our made fourth appreciation bonus This on the that to thanks XXXX on quarter, the significant during balance

our the tax range over that for rate Company. these income XX% Now assuming effective XX% were has deferred recorded to taxes an in historically time been

one-time rate really saved XX% will the you thing, reduction for future been federal effective reduced taxes that tax the rate. has seeing in significantly in that tax reflect to is income a reported order effective rate. us. future lower will new this $XX.X we and by income We And our deferred a be income tax become be expect results tax deferred in new while income range XX% tax XX%, XX% has is from expected our rate reduced to now deferred reality a Now benefit to million our the the the from taxes will tax

let's line way, the items comment I'll of income. out a operating few quickly below on that So

shared of on you prior last As due Wehrenberg calls, in fiscal with that the and this the I quarter with expense in acquisition several year capital increase majority leases December. the conjunction is the fact to for the assumed interest we

contributed Now the slightly last expense, primarily to our of interest the impact did our decreased portfolio, in the year of rate increased capital interest a program that we to increased borrowings through compared but offsetting overall to year to have change also average our expenditure mix increased debt due the compared of last also some debt.

have expenditures upon based comes during capital an very might our XXXX, interest even short-term decrease fiscal total may acquisition impact or that may in may in expected not decrease Conversely, increases ahead, XXXX. for course of of year. the expense an interest we change our of along, borrowings our rates borrowings in anticipated much during we offset any think unless Looking reduced some the

our our proceeds, interest debt Now variations items, expenditures, or levels our many the short-term due may operating among of in in borrowing share other capital future rates in periods, in and that may changes portfolio. either reported impact in repurchases, long-term expense mix our course or our and results, unfavorably interest to of favorably changes short-term actual asset sale

item is Now other like another gains highlight and the equipment on disposition of to I'd line assets. property,

Fandango. two of the gains. from recorded Our over fourth favorably small this $XXX,XXX significant were a by impacted ownership quarter interest which We MovieTickets.com in of by our purchased gain sale quarter results was

interest. sale $X.X in had we hotel approximately also ownership which the million Atlanta from minority XX% We of Westin reported of the gain

disposed program offsetting year the fiscal personal was our continued these of gains and extensive both write-off theatre the the as continued in at Now we theatres. property quarter partially multiple renovation

earnings items income, during operating not ventures, below reported joint The the income investment significantly equity other did change line and from periods.

to came during of earnings XXXX statement away that a approximately for and million total about the they the near each $XXX top dig Wehrenberg tell I acquisition. from capital want you into XXXX briefly fiscal do before million to exclude to the you Now tell division, I projected moment right in fiscal expenditures shift totaling our during range, approximately and $XX compared our

food associated approximately of total division, number UltraScreen Now XXXX which incurred spend and at majority new villas beverage our and Safehouse Resorts the restaurant new that the significant we outlets during screens, release. projects, SuperScreen and during XX theatres year the in to approximately completion new spent DLX including of million in Grand was bar press that Theatres Hotels two we the Geneva we We seating during related $XX the and and of and opened our this and year, $XX fiscal in detailed in with a the new costs million up the of that XXXX. opened Chicago our DreamLounger that opened division

estimating As cases are Theatres $XX estimated projects may million and $XX XXXX million we look fiscal the capital including $XX range, our about million to in XXXX, be in XXXX. towards started currently expenditures to for division with that our approved in million some already capital fiscal from $XX we million expenditures fiscal in for $XX approximately carryover

and the our hotel plans independent is Another to $XX the Resorts $XX on by mid-XXXX. hotel million renovation convert InterContinental work announced and Hilton currently hotel million at arts including for division, scheduled Hotels recently our estimated into a preliminary to Madison an

aside during opportunities could maintenance possible As for growth or evaluated be additional year. capital set ROI that well dollars the some

projects As several not several always are the this is that the potential is for of timing capital because at planned at or because is opportunities the of spending not growth finalized of to may time in point our this may fruition. come on range dollars year, large case the fairly or some yet either the

preliminary our from capital XXXX fiscal certainly As a could result, vary actual expenditures estimate. this

arise, another obviously capital impact well. business, acquisition would opportunity our in particularly our Theatres that if addition, expenditures as In would

year division. the and beginning some on let Now the theatre operations quarter for our me provide comments fourth with movie financial fiscal

Looking and weeks theatres segment is operating our full of compared income, results first revenues two include the Marcus should thing Wehrenberg year. probably a last fact to this year of we do at these operations of the Theatres year's theatres that address the

We fiscal another quarter new during fourth XXXX. theatres one XXXX during also of fiscal opened two and the

impact comparisons that's as well. to So going

here. revenues let's little So dig a bit into just the

need the X.X% quarter all to I that please fourth to X.X% during revenues out numbers decreased while While find explained, revenues XX.X% be new the for think from a segment in me theatres XXXX. theatres, Theatres quarter the and the actually comparable during XXXX total year-to-date, for increased And so going with theatres take second. bear the know we those and you increased confusing, comparable if fourth even during fiscal XX% I for is fiscal get this that show revenues our

revenues total the incentive year. our you while, provider obviously year following million quarter, If Screenvision. last will benefited $X.X our impacts fourth advertising last remember you've a payment during that from comparisons our been our also one-time this preshow from That the for

So out increased year's now, full-year theatre and our XXXX. fiscal payment find X.X% comparable fourth last revenues during during if that take revenues the X.X% as you the well, from that quarter you'll

is was think year you'd really slightly ending you year good. summer I business the ahead when agree where pretty last Now season, consider difficult a after that of with movie revenues comparable

little of we receipts office more that's granular the a compare rest because even get a to industry. take number Let's box the specifically and at the can look

pricing longer data nearby, theatres full and office outperformed that our fourth well new for comparison for very box office the do changed box percentage not were we in increase decreased policies comparable Wehrenberg theatres, office box Marcus increases means outperformed this service results industry opened using comparable that XX expect we've I you our four those then fourth X.X essentially reporting for just the Rentrak, compiled X.X allows no pretty fiscal during this where new fiscal as during referenced industry now, during to quarters, X.X% of. with the is XX the that us our during straight result the This for during we're office increased box quarter XX decreased numbers industry, numbers If our their from significant theatre as proud is X% that Based exclude of counting a we and future. XXXX now the find comparable receipts which the last years a those the U.S. to the And a to theatres theatres U.S. I points the office still Using by calculate the comparable in means national outperform XXXX. the to last fourth weeks something and you shared upon by theatres X.X% of fiscal the fiscal we box because quarter XXXX. for we box to XXXX, office. that same that theatres national theatres as the us quarter year a X.X% two significantly are points percentage

the Now our fourth-quarter an comparable our theatre X.X%.. was theatres comparable attendance at of office attributable box X.X% revenues in in partially to increase increase of

of large decreased October XXXX. during of format admission and year. Modest X.X% increases particularly Our Marcus Star comparable to I'll screens, price our an quarter periods. which the price fiscal and as for film, important was we premium attendance full increased number XXXX average in XXXX contributed however well reported increased fourth favorable film the was excluding by product Wars the as fiscal that change increased Offsetting that average in during November theatre mix with of the X.X% by you Wehrenberg a the our took tell and admission X.X% theatres, price that during

concession healthy very X.X% in numbers person fiscal Wehrenberg theatres. report to in fourth X.X% increases Marcus the pleased average quarter food for and and the we're per of again beverage These our XXXX. exclude addition, for revenues In

comparable capita impacted food theatres, fiscal spending. fiscal continue during the during beverage operating fiscal to Wehrenberg at in theatres, compared and outlets all our preopening primarily minute, coming Theatres opening non-traditional Marcus higher income operating a acquired Shifting the income of second approximately related new and the from and $XXX,XXX theatres our operating per third XXXX income the to increased attendance quarters, expenses negatively to to XXXX. of operating contribute two during investments division due decreased for Our to income just XXXX to

service operating addition, In we at through income division from to XXXX during were XXXX underway theatres. March anywhere renovations had revenues fiscal impacted Theatres XX and the due multiple of fact to during from negatively by out mid-November XX our that also screens

Wehrenberg from during income operating that were that by to bottom by that was I course transaction. costs operating advertising XXXX mentioned partially offset fiscal line, impacted XXXX fact to to by earlier, provider the included the impacted one-time our the fact comparisons XXXX significant fiscal addition, results payment the which dropped both incentive related preshow fiscal In operating negatively that of one-time straight transaction negatively income

division to here. over move Resorts Let's Hotels quickly and real

Safehouse math, X.X% We've revenues overall to to increased our from Grand the at the that quarter Geneva see beverage and new increases. certainly food villas do revenues opened and hotel you'll fourth restaurants up comparable were owned and the our for from Chicago you the X.X% those at contributing If year-to-date. also contributed RevPAR Increased increased revenues new increased room revenues. hotels we our

comparable Our compared the during X.X% fourth to data to market noted for during X.X% from period past, received properties States total X.X% fiscal an and our experienced quarter compare by our results, vary Smith RevPAR in property. increased our XXXX performance and of RevPAR collective fiscal decrease fiscal in and for upper did the X.X% of year hotels Travel the fourth in hotels for eight quarter RevPAR but United throughout quarter, as fiscal in the last upscale year. According actually Research our And type compiled we XXXX increase order of full our markets RevPAR quarter. same saw the the a competitive fourth us comparable in by to

to a For year specifically, RevPAR occupancy upper competitive hotels to RevPAR increase increase by numbers, X.X% percentage percentage a actually increase that fiscal to in and our collective hotels our upscale point in we Breaking an XXXX competitive full due increase in compare shows X daily nearly X.X of X%. you quarter in up the fiscal X.X% the our overall for year if and fact our Research rate RevPAR that outperformed data going markets in numbers Smith of hotels little Travel full XXXX, in Thus see that you're experienced experienced was fourth average our the more a our points. rate. decrease

our last during year. rate Hotels increased XXXX, increased increased points the fiscal fiscal income X.X% XXXX X.X%. fourth quarter and our margin rate average Resorts and division to operating For occupancy operating and daily of compared

year. really and XX.X% full the operating in XXXX by XXXX, percentage points operating losses year, entirely preopening one-time income a to small and and due and favorable due business For our part during the margin division new in decreased operating a reduction profits fiscal X some to startup to expenses to from margin Chicago the compared adjustment management related in Safehouse, last made

and X.X%. actually by about If operating Resorts you those during exclude fiscal our fiscal XXXX two income division for items, during income Hotels XXXX exceeded or operating $XXX,XXX

Excluding the With margin our Greg. that, both operating X.X%. during I'll same years call turn was the now items, to over

Gregory S. Marcus

begin Thanks division. Doug. I'll my Theatres remarks today with our

rollercoaster I all agree was quite year. can think the we that it

On the of great XXXX, everyone and was feeling XXXX heels our a fiscal fiscal off business. started with quarter first about record a record

just theatres, December. industry, where and with halt results and once all future course a are also Screenvision incentive product we with inevitable time movie know, the year was Wars That that articles challenging Star business. we Of Marcus a the in for had film momentum theatre all But about record and about of now here the outperforming our to comparing change sit came led to we third again quarter quarter as yes, didn't the second naturally reporting another perform. everything to significant we a and today quarter one Yet a payment. the the

our It's the steady So to as for before, strategies fourth want the say to proven hard prepared completed by the execute theatre during a to my capitalize for during organization our investment we'll many is fourth entire growth on that predict the for. team be performance for year box good difficult Thus, predictable. be over our the hoped are season. quarter, that this over did movie congratulating very I But term, management me up there the and summer but honest operating Rolando was and office peak our we that their underperforming and but the is job short has on quarter. the our to is year. start accomplishment so entire movies very us, you've year, truth to it we like times heard continue It remarks matter, long-term to operational films that be had to for not Rodriguez, just recently fiscal minimized. should not make during quite The XXXX

went use focus year. films. to to capital press fiscal it Theatres actually I today Marcus provided even was Doug and more has the now fiscal made our of going on not information our the Our we not quarter XXXX. that, plans progress Wehrenberg and program I'm Other particularly with soft. theatres, a amount surprisingly what to were than fiscal and release through about our XXXX two happened. strength going film time December November division's talk detail little and remarks in just fair quarter fourth of fourth adding thought I'm the topics, further Rather my slate my a during the about for the

you I'll results, in we answer $XX most call. Q&A fiscal expenditures the over the told spent them try reported million portion we've that our this our ever during in If incurred in Doug during have additional questions me to be year and division a of about happy XXXX, acquisitions. excluding Theatres capital

more say new five managing the much two additional release new addition they the locations; so Zaffiro's XX Sizzle discussed disruption we've Express In for operations. were of five previously, new of newly year it Reel theatres which press a our outlets, to to UltraScreen that was two DLX getting and our team lot outlets. for and deserve Needless during through a busy done and to two Theatres credit went; Take year new highlights recliner new Lounges, new screens, where DreamLounger dollars Five SuperScreen seating auditoriums; four XX built; our

that and during open division will today are that our every reality of revenues Theatres results note day. operating income despite reporting achieved we the our we I All business theatres single the for also fiscal impacted from underway of these anywhere XXXX to March at out theatres. fact mid-November XX to due various the service XX had the that were negatively were renovations screens from we by through

find at think might end interesting I XXXX. put us where it all the of you investments these

representing XX December after theatres, approximately dining fact really including is The the approximately Marcus XX% of largest this the concepts believe just company-owned Wehrenberg our And kept percentage you. in premium once chains with including Wehrenberg Wehrenberg Including the DreamLounger PLF the Wehrenberg offered theatres. of XX XXXX, seating Marcus first-run XX, the Wehrenberg recliner recliner percentage highest including XXXX, Marcus we be in December offer seven of least be as the theatre other auditoriums more we first-run our again XX% one first-run we offer or company-owned theatres, the a takeaway seating theatres, at one we that for to chains screen approximately the format among screens in Marcus or in-lobby you, thrown seating first-run 'including at large of theatres. XX, the screens, investments company-owned our seating in our now theatres Marcus nation. theatres' As Wehrenberg a we of in theatre the XX% the their including Meanwhile, the approximately the one offered we number Currently, of recliner I've our the these all-DreamLounger theatres to all theatres, believe our company-owned among more theatres Marcus in again all from phrase recliner in XX% using auditoriums. year I largest of we numbers PLF currently made nation. representing highest offer big

fact of purchased our You these were reminder, and add there to of seating successful was the recliner the acquired one in limited to aspects number December we XXXX screens had our theatres. will amenities theatres a saw the opportunity when FMB of it options. we acquisition most of recall that attractive an and PLF only one A that Wehrenberg

believe the headwinds remind wasn't the I the theatres. you, we've and reporting see fourth acquired over talked numbers November December governmental Using these began in due I'll unexpected have is our theatres, that XXXX we prolonged historical excluding it the that about previously outperformance about to the the we'll the from these so was theatres these reality also quarter negotiations. until the our has in upside by nation for the and we provided seller to Marcus talked that XXXX really quarter We to getting nation carried for and in XXXX theatres. outperformed in including that performance locations. fiscal up delays this. we fact lease that of will December XXXX, the Thus, that versus tell we first started faced and part far these the expect theatres, nation real start versus Wehrenberg In some amenities you Wehrenberg adding of we these fiscal to Marcus XXXX.

the move to and a we the but So always the Black of suggest paper, of like. way year the line quarters performance now say to from might the On really be the the is But how quarter March than never the on being in particular Panther comparisons opposite pretty XXXX. it fourth a of our way originally third to titles will film that this what January slate on outperform included by Beauty past exactly record-breaking first most the quarter, comparisons the regardless Everyone to quarters. XXXX Beast, perform. at continue and stronger-than-expected way. performance thought. the before, film will us the quarters the which film goal play down heard better second history leading the large us, of after and in tremendous week, fiscal any series maybe look know out fiscal An last you've movies films as very as with year the and does, last well-known number and leading the But initial looks you tells good, of the difficult first may look with the

programs much as meeting make continuing like division Magical same fiscal Rewards It you've to new movie-going with as $XX path the number investments about. Doug with shared and XXXX program to may XXXX been proven marketing and many goals further a our hearing existing do this to loyalty ways. amenities starts in of well and to theatres. our Our we you that million spend in in involves the Movie would continued in as $XX strategies experience of that during development million of as enhance we

is We to location this plans Brookfield, construction our on have and begin previously new in in expected announced for Wisconsin second BistroPlex XXXX.

also including seatings sites currently more other locations, dollars are we We of two Marcus looking the Wehrenberg for theatres, at for and and premium we additional theatres. of some are that towards evaluating seven in half opportunities two to Marcus spend We're to fiscal XXXX, add may these three theatres our including recliner seats more to five new end XXXX. second the DreamLounger completing Wehrenberg theatres addition during

percentage result, by our the screens with XX%. seats DreamLounger than of company-owned As XXXX, may of be end first-run total recliner a more fiscal

our conversion to with additions large under We expanding continue proprietary additional concepts XXXX. screen also consideration format plan for several

also Our concepts expand beverage capital includes as budget selected opportunities our well. further food to and signature

on on continue we'll be expected would hands we also I investments to to that full an say, spent during sheet. as we remiss focus extremely balance if from the amenities fiscal And didn't dollars past strong year, team we to at I be the are numbers XXXX. made record XXXX, still will So, this have have our our maximizing And added return the note the we many decrease busy. capital of end our while needless how given

the opportunities and With let's division, to Hotels right other Resorts. when So remain move arise. selective our very with that, acquisitions we further our interested in on expanding circuit

items some primarily our were XXXX something a they business, gave X you group the and segment proud in you fact up the better detail. percentage did we performed some seen team Doug in fact There with hotels unusual is ended fiscal last when additional eight note, in outperforming XXXX company-owned than definitely hotels during our and Fiscal that very ended is strong the but of points numbers Doug nearly of. that peel by away year set this You've fiscal year. headwinds competitive shared on you, slightly our XXXX

really I under publicly leader want circumstances. the on interim in this to executive thank some division, hotel outstanding As our year challenging sales a operations team of team management and solid

is our group As portfolio of largest we properties. well our past, discussed the particularly especially of with in some hotels business,

results our an food groups So, and Group results it When of services than during and period. during beverage not have and are by was is stay. it soft, for to hits more strength as quarter reported fourth business are our likely we on do others, is us our harder a our catering use reflected group strong, also it revenues groups, Those well. quarterly often the tends well. some their and good that. the when business to impact The surprisingly, banquet quarter determined

received. Our team to pointed continuing have our guest is also its service the release press our exceptional and awards properties of recent unwavering commitment some out

There positive by level of RevPAR about States in in hotel published ahead, on possible our will future. have improvement in as years steady growth some reports particular, will lodging product. such tracked gross large last depends traditional the several macro tax customers, that environment recent part positive industry as the business the economic historically would trends increased have business the statistics modest XXXX. the the in Looking to the hotel industry some the to easy domestic be in continue optimism with that recent is industry closely reforms in closely our the impact over very and hotels sentiment continue may regarding achieve revenues to economic hope there appears follow the it our which who United business future. certainly suggest the Whether those seems while in the calendar not read to be Many travel regulatory in the crystal lodging ball for near hotel on an industry, relatively might we and bring

results. hotel the exceed expect We in overall our have also will generally to particularly We as without industry a increased a impact in our markets. negative track on corresponding in demand supply our monitor supply may trends, continue increase markets the respective

modestly We ahead is the as resorts future are hotels date revenue referred last year. for encouraged of revenue in XXXX, in its bookings by as of of bookings group our candidly the fact year periods room first to something The Chicago future periods for industry are group Safehouse, that fiscal our operations. same the group pace, and room completing

won't So expenses fiscal this that and [indiscernible] results to year preopening expect the XXXX. we have restaurant's during we improvement operating report in

sale entire a And benefit minority talked Murieta we Inn periods the Westin and Hill, of could we the that it because helped in two recognizing management from Geneva we the We just a at trying sizable are added Chapel the be our gains value see our we but quarter is don't future sold Atlanta, continued what the acquired ones, a in also operating for add portion a five fees expect our and the new growth. Sheraton for Madison hotel The do Resort fourth I about villas and XXXX, interest call, we have to reported lost of our or of recently announced from Grand the substantial contracts Spa income during the with it it three years, earned we want gain, EBITDA. and to We & management where Spa. portion Sheraton during conference a to We then the briefly Murieta, new transaction we value, create. emblematic overlooked while That last not Westin we Atlanta the of is fiscal Omaha Rancho California. in Marriott, in in

new when in We that. are villas also the at of value arise. existing an The Grand our create look opportunities example assets Geneva to

engrossing concept experience performances. with We InterContinental and arts. special our So our lending this that hotel to With new entirely opportunity feel installations, a way community hope contemporary to create is that explore the curated at of impeccable announcement of inspire visit to we this with a what's independent an room is hotel. and then envelope exhibits, more Milwaukee the our push into to the guest saw XXX and more recent and convert right a reinvent that a timing possible in will a this is live the celebrates project our very Ultimately, stay hotel hospitality was hotel goal arts or personal.

spent possibilities be in capital are in this excited conversion but fiscal and of already lie working XXXX, dollars the is most earlier, for will our mentioned on ready getting As about team ahead. that project the we this

another year. lot believe look forward and XXXX. year to a have So record another that fiscal we ends was to It we in

debt at and great a ratio that the want XX% we hit Our of I only is highlight a major in of milestone with balance sheet to year. shape end capitalization the

Our businesses that associates, poised to enacted total would and grandfather have in our also benefit our community. in billion. the reform our future my in the don't about We're they up investments shareholders talked our day to invest tax our already and assets freeing exceed we businesses, legislation, now I've incredible ever in our cash future. $X periods would recently believed one continue milestone. by reach think I will

actively to also We plan to XXX(k) contributions and associates. invest recently our our are our reviewing increased additional matching opportunities in

and may that in this the happy note are In up to ahead. pleased at increase in our year that, we by I'm made I We would addition, our yesterday and have. believe open confidence With our we to be during foundation and are to our any dividend quarterly three contribution well. expressed largest continuing needs forward last you as the dividend years raising And fourth the fiscal Marcus significant the as for look yet. well-positioned the our questions XXXX our increasing time for by to a XX%, Board momentum Doug the of community our future in increase call to future increase

Operator

from Eric line of Our the [Operator Instructions] Riley. first from comes B. question Wold

line now is Your open.

Eric Wold

QX Few Theatres industry. in the had obviously questions, one, to division the great outperformance I you relative guess in

theatre, down have to? addressed? that region read offer to their theatres regional did the can specifically another and you data terms not level, see, but outperformance whatnot talk you one and can terms be then not do you how versus level one smaller maybe point of anything what noticeably a theatre you maybe maybe versus or you can underperformed what from in trends of others that about your for And that consumers anything amenities some you outperformance in If will drill the of

Gregory S. Marcus

are I our that of we investments that where generally, we sort we seeing say, guess prepared in outperformance. on Eric, remarks I could our talked are making just is these highlights about

saw and the legacy We are circuit. we'd call we what – seeing

the work those Does As than it we see highlighted. in is to can paying in overall you planned, the everything but with made better and DreamLoungers, investments wish I the during can't amenities, recliner tell could anything really as investments worked pleased planned? and point I specifically. off the very the are Actually I we everything we're it, performance

Douglas A. Neis

journey for you've ago to is, we Eric, in was might we the penetration years XX% been. where of here, think numbers throwing don't one what met through saying going this point thought couple around at to that we time DreamLoungers I whole and maybe we with when were been would that get with add I us example, I have to

town number and was to one that smaller steal getting and started no are Greg some some probably this game market results encouraging We past where going because share every we're pleasing. single and some we proven we be that as I farther very are of but only done had where work it's as weren't seen that to to in there our few a the we've some to been a of reasons mean results going is up is said, the in have markets continue are markets into not initially them there markets from that to we've anybody. again, markets And even radar. in homerun one year we've

move continue to us to allowed probably that's along. so And this

Gregory S. Marcus

first little don't small even what good is, [indiscernible] the on I I'll a pretty of all, to facilities. seeing in think have we build our are tend on Doug, smaller We markets. and there, it bit, that markets we

markets. seeing, I data, get we're people we through going the I this, think they listening to those of to but they those and see we And theatres. seen rewards data then have to what go not a here it seeing, haven't our we I markets that know other theatre what can people when do art are then can the really are this our who farther we markets in so driving see think So we're we're and – think we because going it of the in question, come state I find are any get to yet, just

Eric Wold

what are the just and additional of That's on Maybe now capital your lowered end remind structure, you appetite for me would into your then the acquisitions. high helpful. leverage the And comfort be where you obviously level?

Douglas A. Neis

From with look mean that to then the traditional in kind you announce range the And capitalization somewhere of debt-to-EBITDA, right now. Xs, we're at in and XX% debt our we are balance that. at something ratio, sheet right, if I

got have have of certainly room, we bank got access Eric. existing that. on a agreements. additional availability So, We've lot plenty of certainly our to We capital beyond

much really XX% number is We a have – look where we've historically of I cap if debt been historically, that. don't you just kind said we ever that think above

range. CapEx the Our I farther on than if long-term, honest that. farther, million there allow with to But again, spend credit fact, high-end we us to that in always after that go talked next agreements the to that could fix and play got $XX so now about we Right were some we of I the year go you. for but be reasons

that flow from Given even the generating cash we down. go XX% our might business, are

So, we Eric. certainly room, have

Gregory S. Marcus

look our strategies, and value. is able in skill value our to going desire, and team. something making be what our have taking think investing team's add set, And set but capital on something fixing appetite, We're is movie – and really Their And We're skill the of to up, at need and more Austin we a we is, added not kind one we relying That's of not said think it guess I certainly of Get I My In the things can Powers the it. I of [indiscernible]. in think I out use think we guy for of you the quotes. like Belly.

Douglas A. Neis

movie here, so of know. just Eric, around We you quotes throw a lot

Eric Wold

there been the imagine. approval the advantage XXXX XXXX Nothing so six opportunity I obviously happened, nothing acquisition, for the versus to an that. as we but done part the is switching possibly of to reverse a side, months, normal that a I you a the it's Wehrenberg has year-over-year normal, acquisition anticipating not can don't was at question, know hotel process thought time reverse since Last of the take XXXX happened. which a of a timeframe was has know but

read kind that? ability sale into additional monetization there So see, want kind Has guess no there forward? an to I you not hotel what guess in the XXXX to you growth of how your been I and that use of interest prices has interest, as with does indicated that should in strategy for we exchanges hotel been impact going

Gregory S. Marcus

Doug see to then and add I'll wants I'll anything. start if

be Our the to to choice right. first do that, pricing is has but

pretty I relatively transaction out well got hotel were think which year, known, in saw – REITs get it the the that game. the the last did was you market what of is market, pretty quiet

make. are more if but to sell, where opportunity We there best and cycle, price are in picking reinvigorated. lines some at is We see the is sell back starting going make the were to hear, we that and then this again, starting to wondering factors up people prolonged, and up, can discussion been decision but all in those not look just as where a to we we're to it decision. the all something we're see cycles starting make right are trying there's are to to it the comes the But some – you people activity because they

well. Now the tax going law changing to is as impact that

Douglas A. Neis

specifically guess to I noted, reverse little on clear mean XXXX mean, I Eric, of have how time I those a types correctly XXXX. as you speaking a much it's versus you less issues, look, the

open So, but certainly that correct. of window facts the is for us, all be to still have

things. it really will depend And on so

what much, will change sort a not, us be go to assuming for sold but decisions Whether without how gains going is basis, that and rate in the an change the or that the on does going certainly makes then So we the asset since difference of for that assets fact down we're Greg's on Wehrenberg math. could little bit. these the about by on a it's will not to be the math components based asset tax And that effective one certainly happen. key is like again, obviously like to today anything, bought sitting decisions tax here calling that of something when just making impact point, making

Gregory S. Marcus

Madison by and sold, was And to was see no we it participated those. the the sold, Westin was wasn't Atlanta like way, in there activity year. this

Eric Wold

Thank guys. That's you, fair.

Operator

with of comes question next Research. Jim Barrington Goss Our the from line

is now open. Your line

Jim Goss

terms theme to which to management the getting in in valuable all own terms in get? securing hotels industry's not sliver also, challenge you've getting, reception, qualities are some seem having new some equity are how contracts, awards you're at and And properties? your of been still in always of some the Staying some on you to a the I'm going to the for those of and are the you valuable wondering contracts point you of hotel if of looking is you moment, success do able property, how the the be the

Gregory S. Marcus

awards hotel tell the It's think now quantity, at in we're that they not look the we good. just XXXX grandfather Pfister years think when in new aren't is think are a my I'll unknown Look, the XX who what I I hurt. sophisticated the entity since an – Milwaukee. we bought doing and business, dead I emphasize much, you do don't what investing this understand, investors these they properties

and think a we So, high fact it to continue to that look consistency equity. sliver chose the we level perform at for yes, able our And were just I

projects We in have have some equity well. as we of sliver the some

that. do to continue will we So

Jim Goss

Are number So, for active new to it of a as country is methodical scouring to they of of staff a these process them? if just of these to, is there opportunities dedicated contracts? you trying generate how people as aware and happen management this become the certain sort or

Gregory S. Marcus

is to No, it. about like it. product. we've there like management toothpaste. We're contract not say selling it's been A a deliberate That's out

devoted us. these for to finding people we are So, have opportunities who

Douglas A. Neis

with looking about there contracts. looking is deals, equity out the of for is side transactions, I looking the these where also we properties for that there very a effort on one balance in partners, Jim, go money to we things, forward can say then acquire sheet hand, potentially what that, talked side, then these is believe but I the of as works as which money for so active effort, the the fund having going in side, and we whole would go ready process on on and also management opportunity to we add and have been have have more sliver kind and identifying in is that's is effort think we it But off And the hand potential by as an different well. little properties one but past, that's to a

Jim Goss

Okay. even have like about to executed getting were enhancements and order the Wehrenberg. in beginning just of talk now now Wehrenberg, you And precise the additional seems to when need stage in being a a additional you're stage think late process where in receivings you even that could you including industry your in right getting you searching? properties that where this role you very before, How it regard? close you that in to the geographically bought talking were likely and wide and stands you general that perhaps And without industry on is and in theatre M&A to talk but renovate, and are about at How stage?

Gregory S. Marcus

that industry. to of have in want transaction the leader people participate a desire. They going robust. industry. definitely Jim. We markets I is as know And are you interest. robust continue Depending be don't don't market and are leader them, to the in viewed unpredictable, when think industry. our I it we as very And there, as someone we are to is know know on we lodging a like out viewed The there the you what know, transaction the in

it in think we're capacity specifically, I could and it. for disciplined and to so active look Doug opportunities, that and and do said, the but tell you active, we on will have we will discussions go that I remain the something I we're as and wish do And we

Douglas A. Neis

say just option. industry kind nothing for larger group of heard I the well. say mean do you've doing an theatre think evidenced by Jim, investments obviously is not made. it's that we've And before, that certainly We in we as the I'll this me believe so this all the

who've are out there there So, to decisions. got some make people

making are are capital they have to them up to family investments others worth, not, trying with going make to it to whatever might or these are these they down capital, they Some double figure investments come access out be. net the do want do to really the the of and

So, good it. certainly it's to at continue will be is that we're be and not investments. in I that difficult, do pressure beverage think make to easy, to there industry able these the really Food

in mean it's player our again, our predict. I shape, go So that those you for very wish sheet, hard. on step. next if someone logical take to just, a if a but all putting balance wants we're look, too is I it's come could just to percentage certainly reasons, sheet great hard I think Jim, I balance obviously it, It's to back

Jim Goss

right. All

thing, Just I XXXX Greg, your does the comment one and way, that fiscal by it always that's true. last looks good, liked but very

your you internally? wondering, always relative So try out and do what guess How I'm to do think now? you expectations has far it worked so to

Gregory S. Marcus

never have sequel. a to I I right around Panther some business people few business impossible original the thing our guessed and I in the Hollywood didn't I in go tell It the but never been smartest in of guess. just weekend. I movie a head having mean thoughts, was about Black every it all could this could except at you now have that my enough, Company, maybe is here R&D hit this Company the guess. this mean is my is long that

relatively I so, guessing find And futile.

is job were that based key cards are we the bring make bottom that can as sure most dollar then the Those to that Our predict on cannot part. and to We then the potential in film we maximize the our place, dealt, revenue to for much can. get we responsibilities. the every as and line

Douglas A. Neis

what What going some this and when good whole of when Everyone Panther, we're and Jim, to that think I listening think was happened, tried everyone the to I is about then us – think really that guess. and then what accordingly we talking quickly happened, being I from our to but changing a and well, happen, reacting and all times very cetera, really really tries add happens, one team at, guess Black very reactive everyone is et actually adjust very actually at else moving call show see and et cetera. and what where as quick I right. really, screens gives quickly and them obviously will model move perspective, certainly mean, we're that we I all-digital good of now, being is with doing really we're to in good places and we that, I'm adding adapting had labor and just and and and value digital, right

think one places successful and the And was prime been been weekend that's of this I that. I where example think we've a past quite so, of

Jim Goss

answers. you good both. right, All Thank

Operator

of Benchmark. comes from Our from next The question Mike line the Hickey

now is Your line open.

Michael Hickey

Congrats of the on one here. great quarters

recliners key be since obvious sounds and side. of So, some it going if traction give it's just Wehrenberg, it's now to of we performance I amount of really XX% your XXXX just you that I here you to in have your expect XXXX, fiscal like Obviously you Maybe the the could Greg, it's wondering wondering of of a fair amenities is in about on your which like the on get sort the curious your for more upside QX. trade, theatre all insight if to I'm little perhaps sort there, guess in think that, putting it, within and are network bit starting looks you sort total, if that's there. but highlighted QX to and obviously it's comparable and that into us obviously

Gregory S. Marcus

answer directly, I do add one want question thing to before I Mike. just your

important will fixing that some for a I've is is us, out talked there It and building with is about that. bring the a it's assets, up as us pointed so the grow those it customers it's happens a about Movie members, that powerful I those call is really to in program in disciplined along think well. maximizing talk million very $X we about do, Tuesday, to huge programs that just very with our markets tool, relationship important sure It I thing all it. MMR, marketing that to is not we're and to That we're X.X and our specials we is Student up the Magical and before, and our Rewards opportunity Day, we making own but that about continue customers. physically it the the

build pay first the to can I customers, going is dividends relationship think we many the For our time, years. to actually with continue which for

Now, programs, so upside, yes. upside that in the of the marketing to continues taking those question be expanding

With the those is the trends. seeing probably to and the of Wehrenberg The food see of continue we we bulk know assets set but we're beverage well. opportunities throughout where system maximize in opportunity that as Wehrenberg, the potential is, to

Douglas A. Neis

a our mean Wehrenberg the so business. represents noted, number you overall Mike, From perspective, I XX-some-percent of correctly

market Yet the because XXX is quarters for sizable of some to results. certain you've competition you mean of at roll core that else XXXX, those got So agree XX-some-percent in just there have Marcus that our way only look are we're going the When the what if happen else, occasionally by our is results, fourth it – our it, they up. would look, start but we're maturing the X.X%. from that's over happened you to when that in Everyone into everything play saw year overall overall where into quarter, factor to outperforming outperformed points you catching obviously we by basis that I they circuit, pictures was where perspective. and number going

numbers, core piece reasonable some tried of to the while that of never that and but you're and X piece our is doing I think in. have point, piece, that to by we it's And the to going outperform any not to and saying the Wehrenberg factor Marcus number that outperform today, Marcus there going going we're to can over going sort we're going to performance project consistently see outperform, higher continue expect out I'm is not out start to certainly goal once and but to so,

Michael Hickey

Okay. guys. Thank you,

like, I to math gross dip the big right, target Another my pretty guess concession your quick and… tough to looked if I it question, did real margin,

Douglas A. Neis

you, Yes, I focusing Mike. on strongly do is I'll year-to-date to numbers. would suggest tell the What

material year of a quarterly there there As was not bit to and a overall. be the that theatre operations, enough the between was the operations always, stuff adjustment, those that to concessions particular a little percentages and mess year swing there this or line last was little with some some on and line Enough maybe food in but beverage the goes bit line. and

you certainly you're would in I more so, percentages That's reflective overall our are. what And suggest that probably seeing. on zoom those where of year-to-date

going these As our have little traditional and cost we to of food of that by continue to business. outlets, sales definition popcorn add than beverage sort are a higher

Michael Hickey

right, there, heard is So in just is a that function your little expectation if XXXX mix I margin pressure a guess? maybe Doug, you sort I of of

Douglas A. Neis

zoom math I and within year on Specifically there don't that just concession stuff think I was in XX% that. like and own know, normal up wouldn't a last too in was of year not on percentage the fourth and going I mean, because going quarter saying stuff it some I both with I'm on those I on. last did lower that my line That's just the of shows items revenues. this year it

I would year-to-date consistent perspective, that line – it as have kind what representative that generally is pretty really revenues, our pace look from at that when part makes look if business, So, of we've of percentage if and really think the you that of item in in concession a focus that's sense. the been you we I a at of

Michael Hickey

circuit the how you. Yes, Panther back relative curious performance touch, is think been that I market, said just is Wehrenberg to has performing market your is date versus your outperforming here, circuit question in outlier Black tracking to obviously first on curious how guess the thank Wehrenberg to maybe And specifically? currently you've Panther I entire QX including film. and quarter a Black

Douglas A. Neis

the answer Greg part. let first I'll

The numbers again, are tell things are going look, mean can second to it, just yes, part we're outperforming. will we of quarter we outperforming. I change I to date but not that, just because I mean, provide you

Gregory S. Marcus

I question you do to first specifically very Black about Black to tell outperforming team. we're and it ditto, mean the I'll Panther, And testament interesting our on Panther. was the

at not numbers tracking just hair literally that behind, a of we I were we I'm day. sure we think sort because look were close, every the

the a they – added the Friday they night moved Friday place we actually on was team So, made beehive, and changes, screens, outperform. started to

And been really much nice that see. us a might well great, was coastal to the but a in see was as don't It's little that. where markets thought it's to it so, we film a presence, have better for play too. we of been played really It Playball cool it everywhere. surprising And

Michael Hickey

using could sure in some but of share and your how up sort from your it impacting subscriber impact on a is here it not business their of a on against and they guess as to operators or question desiring looks it? I are thoughts MoviePass, have they that talked terms I'm are Last maybe how just or Good. subsidy. sort leverage what they of about base, me, obviously much grown that like we've

Gregory S. Marcus

ultimately they is to that into doing they guess I what I They've and at But something, means. it's are think but say tapped it that that. leave going I to want not I'm interesting, what are watching sure I'm will obviously we're what what doing.

Michael Hickey

Thanks Okay. Good guys. luck.

Operator

with Our next line [ph] question [Brian] of the comes [indiscernible]. from

line now open. Your is

Unidentified Analyst

not are renovation? there, you're guys renovations assuming clarification, I'm couple changing they of circuit, the a floor about a are a finished Wehrenberg bulbs, kind because Just type light that's point you ceiling turnkey with of to of

Gregory S. Marcus

Yes, go it is, into the really pretty we much Brian. mean time. all these theatres, when I

the economics we but brand-new are seeing general that go they there's ultimately really I of theatre, in the we is these Sometimes extensive mean terms mean in I we theatres. in, really comes a do customer play stuff, other updating into how are.

to these extensive. from seats, beginning pretty seats the in not I improving it's we're going recliner end, just really things, just and mean so, And making experience auditoriums. adding and so into are we the movie-going

Unidentified Analyst

Yes.

bought were Now before digital they you them?

Gregory S. Marcus

were. They

Unidentified Analyst

market's from anything you were, taken taken at looking room there how the Five back birthday video or a Take and or Sizzle, maybe a of your layout look spacious going and might in you to to out They you a out able that? do Is or there are be when okay. standpoint to where put you at, space I'm might've Reel have constrained for arcade you Lounge either some

Gregory S. Marcus

lot not have they Spacious, their [indiscernible] were room. of on They a lobbies.

Unidentified Analyst

and have had, powers that standpoint there right. might for anything, gain in or adopt marketing of, learned is it is primarily market they your any was there Greg, From you anything answer this, them? you you is food there that beverage, the anything good. from the might bringing not might Okay, have That's maybe just you maybe all that novelties, anything overall can them,

Gregory S. Marcus

to do in, on try we don't We good ideas. market go but cornered the have

actually had what is, is it's arcades there really are they of Ronnie's, flagship at and there So, doing. have been watching current an pricing arcade and down watching which they some the it is pretty doing there, they're we that we their how cool. made some where We've

that always can't looking So, in yes, we're and a tell they for I got we lookout we're operators. them, idea for you at were ideas. huge from them but yes, a there is good good ideas,

Unidentified Analyst

how ticket how on beverage or food $X $X whatever, Thursday what then much is your College concession? much and progress theatre Tuesday, and your or And in either Okay. progress

Douglas A. Neis

Are still about about overall? you Wehrenberg talking just just or you're talking

Unidentified Analyst

No, I'm chain, Wehrenberg. not the talking about overall

I had you $X, As a… mean that's

Douglas A. Neis

in we're some small in capita order a made that, lower our day a made as progress mean per fact opportunities is some making days. popcorn to giving all try a have to going members, our side the we're I by we away definition day turn customer, It loyalty that Tuesday for by really very normal there. some Brian. we've it's the to progress. make that so our free Yes, us I think some still we've to and to But that and has progress try than obviously, value and offer on definition special beverage in well food value

Gregory S. Marcus

continue what to opportunity are To there will be is there. there the opportunity. opportunities, think earlier But question, I an

Unidentified Analyst

Yes, okay.

bigger guys or be the you Screen BistroPlex an beverage seeing Big versus ticket kind Bistro I are food opened, divergences or of know at, BistroPlex larger If that standalone old a Southridge might Queen's within a auditorium a venue? and just the you maybe Greendale look any

Gregory S. Marcus

of average we and I what think pretty much spend. expected in we're seeing tickets terms

Unidentified Analyst

tick-up, theatre And respond day you'll the same can next you pretty the reacted had screens or guys really you to Panther the Black you then that 'we a when on something do you talked is about quickly'. pivot, change day? When

Gregory S. Marcus

we There to where people we then we not on move day. have yes, can to it's and recover day to will displace us the looking up the Obviously and do we the It are But happens to. same instances is care of do customers. displace. same our team take if to that who it from occasionally best

Unidentified Analyst

relative And program, out, what's or penetration? being then kind Magical you then your Is said million to adopter participants been the about Wehrenberg, early you the of think just early rolled at I is Rewards whatever. how X.X Marcus that Wehrenberg? had that

Douglas A. Neis

quickly mentioned is wasn't we will we tell learned what they you, that in members. active XXX,XXX program, disclosed that I about Brian, loyalty their necessarily had So, but and XXX,XXX previously that

seen So, in there. we growth have

in as I grow in is was this Wehrenberg think that active year loyalty build this think that continuing increased the new down now there, that's our I those that's brand, maybe an we Marcus still certainly out areas that have about think one to we further kind of think there – relatively markets. so before. opportunity, versus to of of what I But opportunities to down and we're we're one have when continue accounts Greg opportunity and being I program talked of that's past

Unidentified Analyst

Christmas movies, the Chris kind relative that post one there you but quarter graveyard another And a is between maybe the a of Kyle just of moviegoer Hollywood Panther first and to movie, used kind the there are get of one Black seeing of what with sense January-March? be to

Gregory S. Marcus

as years begin you that's something been few lately, I now. to have a Seeing mean an we as preaching industry know quite for been that

doing are like in the of we to that. really does studios it's so, notice And this year taking we of see very or a encouraging March, more think yes, and that and really the to Beauty Beast in see February, well well that, when last hope picture

Douglas A. Neis

really The take like shorter into maximize the and having are President's periods, as the condenses performance could that weekend, that of dynamic advantage of it, think movies that. and a seeing studios be I to you allows

Unidentified Analyst

your and dad, up then Tampus] [ph] Yes, theatre. and Greg. congratulations grew to just your you awesome. And in I [Rip guys, you

Your really proud of grandpa guys. be would you

Gregory S. Marcus

much, very you Thank Brian.

Douglas A. Neis

Thank you, it. Brian. Appreciate

Operator

from the question [indiscernible] last Stifel. comes Our from line of

open. Your line now is

Unidentified Analyst

here. I has you I've your quick I How restricted complain, Black got is Disney a questions on so this know they put something up Panther, and you you given but here? some but much the have can't really restrictions doing couple of on guess movie well take

Gregory S. Marcus

so can and individuals. we performs, movie, We complain. studio set It's film every pay every and more. to much complain talk but the pretty don't about We scale, as with we

Unidentified Analyst

in sure mind hopefully they Okay. how know Panther? mean as this a next weeks. but this point over or four in have are out you see next many restricted I movie I'm the can as beyond like or your many don't three at to two whatever what for on do showings this legs look do best three months? putting you theatre I What bets but should Black or out you and as you don't theatres you the you looking

Douglas A. Neis

picture in Wrinkle A couple in Lawrence, you in March press once a Jennifer with coming on Disney's of So, out get Black I Red release. the There's mentioned past our I Time, Sparrow think Panther, movies mean March X. we

bit to is June, used we every Player a the You've a really Uprising. the picture, including of Ready the Rim Steven other picture a real, case business. of the does up got pictures, called of Raider Memorial really kind March end coming now One, the big next couple Tomb then always of of it's opening May Day, The at then little of summer. wave start out Pacific May. pictures hope in It our as mid-March And it and actually there's year, that a be becomes Spielberg but

watch got the key you focus a X, picture, focus not over this War this which Infinity thing, now that. their Black May advertising Avengers their maybe their on is on surprisingly, of for so And Panther right now ads

at at the picture out in that Han looking we'll May. the Wars, Deadpool, And be Deadpool you've kind got right movie weekend. the May, the got that's another in got Star they've beginning you've coming coming mid-May. of So next Day big And in now Memorial Solo special picture out

mean I there And so, Greg stuff, on see. good some is we'll pretty noted, as paper so

Unidentified Analyst

Has the Cornhusker XX is away. Marriott that a at hurt miles all, the concern? Omaha It's about

Gregory S. Marcus

be – better and probably running maximize fact with it think be we voice will just so ultimately have the projects throughout us it market to gives on, good. are we No, in will performance louder Marriott two we that more, because it the can think

Unidentified Analyst

for Have the advanced bookings or good the to been Marriott soon is pretty Omaha it tell? too

Gregory S. Marcus

We're pleased.

Unidentified Analyst

versus buyback? there your in Okay. comments is any dividend about had dividend, Any that good change in increase your you can policy this? the The fact you a make

Douglas A. Neis

buying we view the we have pulled our really obviously the recorded. puzzle all what repurchases, – terms our at, cash, Board those our talk are capital of of our the in look, all expenditures, yesterday's the looking time, we We share capital largest those focused mean increase lever announcement a we've the use we [Herb] I all yet. I of part the was that been of mean, and are certainly [ph], options expenditures, on about they always more back, little the past. dividend talk about More But that internally here policy recently in

the has side. so, pivoting the to dividend or year of always have we this the focus on utilizing option but the been one And both, other past more certainly from

Unidentified Analyst

tax lower rate, necessarily the not buyback the it's with going increase So, to significantly?

Douglas A. Neis

to We because head company down are – opportunistic be tend their buybacks. be very now authorization We well. matter said, be have we buying very to not just there that. comes the of existing that an Again, to right We're in really opportunistic when no just very we we tend a to it like service puts buybacks what. kind tend out in that very

it closing future. It's cash. telegraph generally uses not to tend which door the either, but I'm to of saying we we opportunistic So relates our the we just and as go to that buybacks we very in just do direction tend we be wouldn't to – don't

Unidentified Analyst

How existing buyback? you much have do left on

Douglas A. Neis

About shares. X.X million

Unidentified Analyst

you what's said going real is suburban okay? in or all right. to just thing, there there, is it estate X.X your development shares, on million The much going last any that but haven't Milwaukee, along project monetize about opportunities

Douglas A. Neis

has of project partner became not opened developed actually project That years I a we've that Corners in anymore. undertaken, couple is project A the it. our Brookfield. Brookfield, The of think on we in managing about took The ago really and the the talking Herb, LLC you're Corners project that who up, member that's

Gregory S. Marcus

it. We financial in interest continue to have a

Douglas A. Neis

financial don't public a our have much you this the not in still level and it seen financial talk from We materiality we for But a in it's balance we entity, not haven't significant a it's because but still it that about investor. minority interest about standpoint our interest on sheet, as something a have rises it company.

Unidentified Analyst

exactly a there your not I obviously business? really since the monetize it's it's Is to chance you'd mean that not on in normal want radar. this,

Douglas A. Neis

future it's again, might balance it's that for plans really our me – Herb, for appropriate about Marcus so a talk not on not project. what not to our Corporation be it's sheet,

Unidentified Analyst

good all Keep a lot. work. Thanks the Okay, right. up

Operator

back appears At it turn closing other the Mr. to no like this call any I'd time, for or there questions. Neis additional to are comments.

Douglas A. Neis

results. great a us look release fiscal joining XXXX late have first Thank you then, we now, for thanks talking to day. once in from We April, forward a to everybody Till months and you when today. our of just quarter couple again

Operator

Ladies participation and today's your gentlemen, thanks in conference. for

Have disconnect. great all may a You day.

The Marcus Corporation (MCS) 22 Feb 182017 Q4 Earnings call transcript