MCS - Earnings call transcript Q2 2019

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Operator

Good morning, everyone and welcome to the Marcus Corporation Second Quarter Earnings Conference Call. My name is Chris, and I will be your operator for today. [Operator Instructions].

As a reminder, this conference is being recorded.

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

Douglas Neis

and fiscal conference XXXX you second Thank welcome quarter call. everybody to our

begin type about plan Now stating appeal markets; our but about call forward-looking products to the of I our not as these expectations capital you on in do And to could statement; industry group available know our regarding forward-looking properties statements number regarding expectations limited expectations facilities; and the in that of making division; trends travel and future occupancy film business rates expectations earnings the on statements we today. be RevPAR, expectations; our in to, made future resorts future items audience and and statements plans a and about regarding quantity be various and room expenditures. growth quality, line expectations our future; for our number usual, expected by rate future of in our hotels the revenues our expectations and nonoperating include, leisure our earnings and and our and us our and

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

industry were the record Tavern, first any versus second our for the year. it the last as fiscal quarter theater our second an all-time half. in noted division, that release, office particular we for quarter, points only talk record recall are prior press with So percentage Thanks second history. last may XXXX about that approximately And revenues was a box for let's quarter comparable us, you record not quarter fact outperformed that despite XX quarter down our And also year. year's reporting by in the that was our we a and Movie primarily we behind

record well. So actually industry accomplishment And reported quarter a on the the a the pretty closing again preopening our good another hotel in the our related as of would we division to operating is All-in-all, theater Saint report by a results nonrecurring to increase and beat the in great side, subsequent quarter. without and to Kate, expenses division. nice have that

our detail to to the As the before practice, and get for some is usual we Greg's behind of through going you a on the consolidated basis both on quarter, each division. numbers, comments take I'm

other remaining expense income slightly operating Investment itself of Now securities the periods, items decreased reduced about up much and year over to the -- increases interest held by due line say not changed borrowing below company. a year income. the up compared items year there's very the last was loss really average interest the last rate. income marketable None to to partially value levels much. higher compared And last offset by of of only because to in

taxes So comment declined going -- those. to on there's not Income two I'm for reasons.

is noncontrolling from year. first income rate, half which obvious effective adjusted off, losses had for interests pretax is at currently compared income to less tax most secondly, this we First but year; XX.X% the that XX% is last our

that on share-based we rate still depending may to effective benefits and the of on share-based excess for other tax adjustments adjustments income our upon anticipate year. to range, that second amount have any compensation tax from XX% and certain benefited remaining the tax nonrecurring of the specific half be any quarter in continue and in the excess recognize We to given benefits quarter. first will We'll any that quarters XX% compensation

press the XXXX the expenditures our being related And million in Madison, conversions spend that totaled to to Tavern the that million the approximately of for first to large-format that $XX in our in just to million the related first from Hilton our price. plus was approximately Approximately Kate million, XXXX purchase. away theater division, expenditures incurred of fiscal the purchase fiscal referenced projects approximately gears that remaining Movie was continuing projects. year. maintenance and resorts of the cash with compares earnings our related at our Tavern major DreamLounger $XX normal mind dollars approximately premium renovation two The Movie of release. a Shifting projects statement half hotels million $XX moment, $XX total component total keeping of in last capital during half division Saint and half our the various and cash again, The of capital $XX during were primarily seating the

timing during year. that proposed our number point of of just to capital amount our proceeding the of We're will year range, timing the actual two still previous could halfway several estimates likely again, for at fiscal lower and unidentified our or requested And well year, including appears an currently million unfolds. various the the of of as of projects the timing expenditures many $XXX by projects scope currently Movie The our with for capital expenditures of to Recognizing our below the as estimate projects fiscal the we or planned the end expenditures finalizing million and up are as this any in our Tavern these $XXX end dollars. still time. divisions, various many of of anticipate certainly underway or the fiscal develop we're it more impact projects at acquisition 'XX

I'd on now second half, theaters. to begin for comments movie provide So and like will first and operations financial the quarter the our some I with

admission Tavern make comparisons revenues Tavern the increased from order last overall you revenues to in on concession with in Movie and film of X.X% slate meaningful, our more year. to conjunction our comparable X.X%, while prior As quarter to year February With how performed our mind, Movie that versus second year, distinguish to and the reported to XX.X% year due exclude compared slightly the the admission X. we'll decreased theaters this in concession throughout our totals, when compared a prior acquisition you'll thus, during the theaters that you and our those our last know, numbers comparable to try legacy XX.X% weaker revenues And our find results. we year decreased completed respectively,

admission Movie -- XX% our down challenging course, again revenues comparable due, take and decreased Tavern of theaters, to and the concession Now year-to-date, if first once you XX.X% concessions industry's respectively out the quarter. X.X%,

and of the by us XXXX quarter second for first Rentrak top XX.X%, new our from and received for during data XXXX during you fiscal to the second and to exclude respectively, first half builds circuits, results, a according after our fiscal quarter office, compiled evaluate new box handful the United Now half. XX States X.X% -- decreased

remarks. well outperformance industry. percentage Now the the as fiscal for Greg a theaters XXXX revenues results the as essentially with our this the result, Movie quarter during nearly we even by during of year-to-date believe our outperformed Tavern second with as address will our outperformance point, X theaters his the industry prepared admission of comparable

the year a at during second offset during comparable our quarter compared our in our admission our quarter theaters half and in comparable the our to attendance fiscal of revenues theater theaters, price periods. an theaters increase X.X% average The prior and first decrease of attributable in first the second admission by was XXXX, decrease at partially at X.X% to half

the Now or our our generally younger from during was tax as higher price five tax that consistent average a is impacted and on likely films the to which our favorably Toy resulting admission Secret appeal a of quarter, Pets three taken by of to lower as audience, of top a conversion in of the X, beginning was admission second of price films fact were top sold. quarter pricing children's X, additive tickets average percentage with competitors. majority that negatively Story at modest price our price Aladdin, Life increases Conversely, the a sales the impacted model, well

Incredibles our at films, only a younger audience. the of was Last five one year second aimed during quarter, top X,

increase also concession mind, that's average and for quarter we're fiscal and at person pleased first X.X% our per Keep report revenues in our the comparable of beverage second half food in Now to X% for comparable an the of theaters theaters. XXXX.

if and quarter. beverage Our food continue concession to revenues and investment XX% capita higher our add contribute over by outlets And you per spending. Tavern Movie the to person average food in increased this in nontraditional numbers, per to beverage

prior the of in to half theater division year and XXXX year, operating of year Tavern last so declined quarter periods results. inclusion first our operating compared second large during the far to Now the the fiscal Movie same part the due margin the

a theaters than and than lower margin Our leased our fact acquired the rent Movie rather Tavern operating will theaters is depreciation legacy are expense. due expense all higher owned that theaters XX than generally to have

food generally fact beverage traditional from food and to are of portion as concession costs and higher of revenues a that lower the the to addition, labor margins, sales larger Tavern In compared those derived Movie items operating for are will in-theater contribute items. also

bank, heard us Of you've the percentages. dollars to before, not take we course, say

preopening to fact. $X adjusted significant for and the impact our approximately results, highlight lastly, share, net acquisition million per release and $X.XX Movie year-to-date And that the on had expenses or related Tavern to our reconciling press nonrecurring earnings attached table net you earnings reported in

Shifting division. hotels to and our resorts

for new and fact fiscal later closed order Milwaukee Arts didn't we the results Saint hotel first then the week fully the June, first and open impacted the and a Hotel. transformed in major hotel reopened renovation month. early food a that reported that the were Kate begin until portion both in in of this of January half rooms of Our into the We've obviously even but beverage the hotel outlets after to the by quarter XXXX InterContinental

during portion As impacted we at Hotel were this previously which of results significant major the negatively XXXX Hilton periods, reported, further renovation our fiscal from division. reported the Madison undergoing also our a

both reporting its and completely numbers, increased hotel, on the second income half first impact quarter increased at or by compared $XXX,XXX XXXX. operating quarter fiscal former our respectively, income to the exclude increased slightly from And the and or of ongoing compared first But hotel when quarter you out find second results $X X.X% periods. second those the is during all our the numbers Saint you'll the of the actually to now are operating half from half InterContinental approximately we're X.X%, million Hilton the that comparable hotel fiscal XXXX, negative take which decreased last our revenues Kate, X% during -- well the due in during revenues face, Madison, during some hotel Now prior year to XX% And our first renovation. the and despite and as year.

Kate table second $X.XX first the during nonrecurring in at million share Saint reported $X.X our approximately As during expenses by of XXXX. highlights, press the negatively results our impacted million per preopening the or release $X.X fiscal $X.XX per share half and quarter or the

biggest store revenues revenues increased contributors and in beverage the increase XXXX during same our and were to quarter. Now food fiscal our rooms second

and Hilton room, also we in due RevPAR, available Madison, our open owned to during are RevPAR per the year that increased reported X.X% the an XXXX X.X% because, But increase last the second mentioned, major deceptive you even hotels those first our and actually just compared hotels revenue had or year significantly for periods. of renovation. strip the total When and of first that impacted X.X% a half quarter were fiscal X.X% during the one periods true entire X during the out, hotel numbers half same for I comparable to quarter hotel, second year-to-date. quarter the this as Our

second X.X% performance and comparable throughout we experienced us compiled hotels United during did fiscal order Smith upper data increase markets the an competition. in very past, type our numbers RevPAR experienced of to Madison by and during respectively, in Meanwhile our fiscal the of without half. collective beat quarter compare in States According upscale quarter market Travel as noted RevPAR Thus, in also property. quarter hotels X.X%, easily second And the RevPAR our to our our numbers Research -- XXXX results, numbers national and X.X% and in -- and an our Hilton of favorably received by to from the XXXX the competitive year-to-date. X% our increase first and vary prepare

was increase X.X all increase numbers increase the to a of rate, first in specifically, out to first for now of points. our second increase percentage an entirely or call fiscal our by turn our opened XXXX a occupancy increase of XXXX occupancy overall Greg. rate partially our Year-to-date, seven was RevPAR -- decrease the to offset hotels I'll With an our X.X average overall Breaking RevPAR rate percentage ADR. and ADR, more points in X.X% X.X% fiscal due that, fiscal due quarter half daily over

Gregory Marcus

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

You've what hold finished were film man something the additional to saw seen going still heard known team by recent again. Doug. gained frankly mean, record the against the Endgame. of some broken where and quarter we against points. come industry the were were percentage the a about the We to might we by XX going industry Think And points rest in Rolando very basis. be ahead called acquisition, Avengers: up by thanks industry year and office able the led outstanding be it. nearly spotted our from up theater rather a understandable, on XX comparable every theater and we just last detail and to a numbers proud that our we quarter beat little reverting of. a to We history Rodriguez yet on We should best beat we our than We That's quarter to that. outperformed box which

my home way Yes, future perspective starting some the I'm streaming of our comments experience, it to but the is to is video provide narrative important to the home video. about this business.

We are same. the not

history thanks we the differentiation, reported to out-of-home an our successive best number and that that And experience two number in one is years. differentiated. in is quarters Ours

product an with Two was know get. weak follow of nearly us the XXXX, and We and slate. reported income XXXX theater predicting ago, evenly to box film we Of that that the of the XXXX of two halves, we find been operating following you'll have a end half XXXX And was unusually we spread income before. that course, summers office world When years, reported was front-loaded. the in our first know have after if was the you while, XXXX you XX% you XX% film year second proceeded for keep record our as division mind a our as about year, first both average as operating up this then everyone of that results. in during you prior seen year summer can in the movie unusual as

reported are So work felt up. perspective. our some theaters, half perspective. we I was Tavern how new strip I again, most just fiscal our know trying second just time. year-to-date, our do film currently the that all end Movie I'm year of experts have you to provide Even some down of we quarter Yes, do. But so-called results know in don't to XXXX this if this will loaded. back-end that second-best more product division out and

as will The riding comments all the roller game years out. We're lasted Marcus. the Corporation don't the recognize adapting my now environment long not of seeing at to don't the here And that challenges, for big we to this Regardless, ever-changing So nearly take Marcus presents. our an please, XX hasn't forward how along fans I'm play entertainment and play way. coaster. looking the thrived indication landscape we without

and to every And experience food business focus results possible guests. the is themselves. our the provide day the for value to best entertainment As said, our speak we're possible entertainment in our I out-of-home each for best and and

the the business among are doing best we that. think at in We

predominantly for half as to with the off during Thanks well a be We again to that and get theater went for film likely films our really the ground Hopefully, great scheduled team well. bodes and legacy well this my outperformed once as our this of what played of us released favorable for quarter a game by quarter. are second the minute of that year mix in us films soapbox as the me let past markets. effort industry. that well share So things the a Midwestern again for few that well a was

to the we've a in that country in demographic diverse more now benefiting added Movie different look new nine states being potentially times. with course, at circuit, we from of forward to also Of Tavern our regions

the our I will you legacy films five Tavern first example, Movie were the theaters five half tell a than top our little For the top for for during circuit. different films

introduced we're see pleased our continues And as promotional the the result. $X these at Tavern speaking believe -- well theaters launched rest had, our the progress you benefits of Movie of forward us are loyalty program Tavern, and Movie locations other film overall, and really program brings program Magical movie these theaters and as to slate on some starting Tuesday our that the we Building integration although Movie process marketing time. had schedule. immediately we they traction all Tavern have Movie we performance initiatives. to our that a We to-date same in at told And with all popular to the locations the look over attendance as that, on we May to with Rewards at have

been performance, outperformed improved the launched quarter. the new, recently pleased us also that data well based received our available guests. and industry upon has to I that, tell Movie believe, we second our by for by I'm you believe, a Tavern during prior We year Marcus and to menu Theatres

is already having this indication impact that a believe performance. are their programs clear an We on our

making -- notes, auditoriums film. format Movie recliner concept time second also quarter, three also are SuperScreen DLX press the had in Tavern owner DreamLounger converted the and just in proprietary our large previous Movie Early for finished Avengers into we capital we that Tavern theaters. release we the premium the are theaters begun, addition in of seating our we also these As investments in XX

are XX open concepts more we We And of DreamLoungers are process in on this our for proprietary of our fall. adding to Movie later Theatres screens to the two Brookfield, more in also We're the in in during Movie quarter. the first Tavern theaters Marcus fourth track converting process Wisconsin the PLF Tavern -- quarter. third movie to two time new by

pretty will ahead, to looking of strong Far coming looks film to and films good like our release. of performance which as Spider-Man: And such we thanks From of highlighted in Home months, As a we're King. press lineup July month, the it we've Lion in releases look many a extensive the be forward

With to and that, let's move on hotels division, other resorts.

Doug preopening the part and Saint solid seen to comparable and as the to closed get And in and some another results increased the the hotels we reported detail in working in divisions were increased for as year-over-year actually increases expenses order outstanding revenues, control that when my outperformed the you, operating and great nice also past want thanks team revenues having most resorts is quarter Doug look with period strong results. as hotel our But industry a hard and effort. combined that segment produce with a numbers You've express reported team these beverage food to the well. to our significant Obviously, performance. gave of to I well. shared you opened. we you expenses, cost very then of incurring contributed and And hotel you additional impacted our very this see Kate room onetime division: by a

holders to of XXXX for at company-owned during comparable the several fiscal performance contributed business prior-year hotels. our second period increased An the RevPAR compared our increase to our quarter in group

drive group results. as Milwaukee XXXX benefited increase revenues, in during fiscal short-term business NBA accounted increase favorably impacting reported catering making and us food for increased to often in leads demand and hotels, the in also group the the the in Our business our due our increase And particular, revenues. majority of two second open an also from Milwaukee non-group group ADR the to demand banquet allowed quarter, growth to beverage Bucks Strong playoffs. increased

revenue compared group our future hotels commonly although of room quarter future in decrease same the periods, during periods for XXXX, were second company-owned of Banquet and resorts to time. industry a future year fiscal last last bookings for for where fiscal currently of periods group pace period also catering this experienced last revenue time. revenue ahead to XXXX referred our fiscal the XXXX in our running at as the year bookings same and year, group to group room Looking hotels slight is pace, this ahead bookings we at is of

was Of Kate the in course, the Saint the opening Arts big news of June. the Hotel quarter of second

Doug began ago. Kate arts of and really event meeting visual does of space to to highlighting with new think soft beverage the we in and opening noted, our some Initial two phased completed Saint a rooms both great opening favorable. it. and official community, been As We we community food the concepts. reaction are and hotel weeks guest while in our guests very job grand and had this going has love a It and performing we

independent particularly it hotel expect hotel, up, we ramp period to that an will business. As for of group time a with take this

hotel And a previous average likely Saint in stabilize third room quarter we it to fiscal time, the that rate our be months result, it than fourth that, and achieve replaced the unfavorable. its over outperform to of daily branded hotel will during ahead. watch believe the Having XXXX year Kate prior is said the hotel hotel. comparisons a ultimately a will that the be fun and new higher progress It'll as

XXX-room Hilton is included now going love Madison in release. our From growth rooms, the The we are as business an hotel of one-of-a-kind is completed. we and As outlets. added hotel's the events also guest and renovation press A great, beverage lobby quarter our another space press perspective, food a management exceptional second in to during previously largely reported, the it. new being new as setting we to renovation release, events. the contract social for provide described created noted looks The guests and meetings all

in during its Green contract good Wisconsin closed House Lake, by for Heidel lost that as owners. period was the also one We management

opportunities to coming hotels review our actively add to the to portfolio managed of year. in continue We

also as We well. opportunities to in continue hotel invest new where we opportunities seek might equity

sight all the but guests. Before once want in We businesses, talk the extraordinary days the our open hard making never With our day to call our that this lot we that we the important about so any our once happy have. thank will time, a questions fact and people work proved we again call for for the again every I our this for of And single make people are lose investments can they most to that, at quarter. I that questions, open up asset. ordinary Doug that be that you may

Operator

[Operator question Instructions]. Hickey from of Benchmark. first comes our line And the Mike from

Michael Hickey

Doug. Congrats, quarter. Greg, great guys,

of give Saint to I versus in more XXXX? obviously, nice that on And guess sort I clarity could to in loyal the data you hotel experience of and beautiful terms Kate. great maybe just guess how expect Congratulations, got of You've arts into location, sort about a talked little and first, Greg, you a ramp really in bit a there. little data more bit your it's how a tracking business initially expectations? area.

Gregory Marcus

very expectations, very new out hard comments But some It's you -- tell. it us ground territory. beautifully. This it it. thank -- new I I have Mike. well, did turn to How's for on and It's just for your is high

the about hotels, you it's of record. independent have it think independent, but but track has years XXX We Fister,

The That's getting in any progress. the made to We're gone is think know actually about going seeing we time over response, think it. people challenge well sales established we've comments we Milwaukee, people don't thing to and that's as along. already other -- us, what So and It's for here hotels. team yes, think this is do moving do. know to seeing one great it's it we'll it's two going people We're for to I get But it. big is about I an it's is. new love selling what us. ramping, have fortunate

And trying something so I a over that do us like this. up anybody to leg think gives else

Douglas Neis

always business prepared leg our Mike, that. in a mentioned, group that with is We remarks

brides have lead think been so hearing a has seen reaction that. -- for to business, example. the now but is wedding What And they there's of fantastic, it about like initial the I'm when time

be get that to that a to people question see success. property, will with to So have into important your for is we chance of XXXX, start what XXXX that really part selling our is groups bodes better now which and was, for that's a the now chance going

Michael Hickey

guys you the you can think of other one-off that sort Or properties? you think thing? this you if the concept sort this of Do hits numbers do, expand is sort a onto of just

Gregory Marcus

Well, who's what not get -- it -- just right exhausted many to what them them listing put we through team, should my of entire I'm most hotel from of sure now. open. because I say they're probably are

There the are have out repeated have who are and let's the look one doing arts-focused see idea take it others an this I invent Let's a there time, there who it's does. others hotel. at how step didn't mean done at it, not it concept. of we --

let's it. terms a So tack get We've different taken from and of then this working there. we'll to performing adding one the in arts but go it with

-- thing to, the I decoration. and just having a it's it that sensitive the probably treated the hotels, a you it. seen And way And think hotel, very and marketing we lot of themselves can arts were typically gimmick, it's so -- to an we've and arts they attest call

work idea of in of international getting arts embrace being that we took local hotel the community and a place. an as embracing lot as it and community think arts really well the I an that and

it we'll So goes. how see

Michael Hickey

of from right. right. luck All question Well, I on All me. guess that. best last

asset, on if the could you growth, but this of You mentioned operating upon point, your income some the made. for if point a changes what you menu info if Or was expand asset? the this from expecting changes you original? And when you've the what to Movie you bit little think range original made of more at us sort Tavern, at maybe were can and changes acquired I remind you income that was think operating you give think maybe sort that, we if us the

Gregory Marcus

in that parts, two take We'll right. All Mike.

we menu into On that taking one strategy the needed menu ownership was that we wanted -- took going taken it And time. The simplified. group notch. menu was a higher, really highly the a be do which our want menu that as prep our with we We the burgers. felt and not the think basically, they -- from then lot Bringing we -- and and if those of Zaffiro's the to produce. that added made up where -- of observation the take the product. well. to in, standpoint, to -- are we tactic, Pizza, to the could with our complication be taking business labor was the burgers, very kind regarded the but previous bring changes, base There in -- this had complicated quality best a of a of to and that, among a the they It had the things our that we leading then of burger, smash started bringing in lot lot

pointed occupancy, of importance. focusing how to occupancy. been of we think be that's very approach on easier and been the to as obviously easier, ease as our kitchen the made because increasing have the it makes comments, our a which to staff. to paramount whole out happier, happier menu So it going And which an -- make And makes deliver push. menu is easier we was And that delivery to I on it's we're to because that in be going make to continue big focused lot increase team we

Douglas Neis

talk, towards Yes. at Mike, kind And income. to as then just the we're relates to the headed of where it XX,XXX operating I'm going feet,

modeled generally certainly we changing how Doing think We're like just getting where menu that feel there a path out. -- cost. to talked right the that Greg big part that this not on we the to like the of to yet. things goes to I we're is about, because

to that here already some be there operational key the these a leverage certainly many component So throughput, focus We're but are lot then that people then trying costs able the right. it's challenges. of And of fixed of through putting that's creates attendance. on -- a get and to now is a multi-prong approach, more be buildings we're our more because so --

it we and getting want to the cost them where And labor goes that. food with hand-in-hand so the to of kind be,

and think We're it's we're numbers that So that I the and of over a the getting expenses. should preopening again, -- talked It's thing of excluding sign-ups is first those accretive it's driving loyalty all latest brand the big that to of becomes XX the now. And ultimately, towards at those marketplace marketplaces, and program And kind still new, months and be -- rollout with attendance able we'll months of we we get path people. the puzzle communicating certainly then part is looking this driving that mean we've the that XX first start to be our all we're that in to about. like acquisition, that to part the bottom on being sense it our line.

Operator

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

James Goss

about I of that including you asking that, if become destination on art more highlights anticipating attendance a Milwaukee of follow particular I sort other Mike the little a should was up what shifting And largely your might a your versus somewhat One tourist hotels, downtown related own? notable you Saint with of in what Kate. wonder do thing? it you are just tie-ins that on bit is basis, spectacular are museum? sort from basis, of

Gregory Marcus

that city, the when typically, just at, if Northwestern demand -- was will you we They that certain a idea -- put expect of It's St. should are to says, the an in I here that. really we It's there's about we says pool. supply, And build Obviously, hotel part by it just expect hope We demand. the into say look share and people a someone induce heard pool. side trying the town. come been what our one they great. heard of "That's that meetings this we on But what we first it's But increase into. they look all "I But Chicago to of for this great that's companies And conference. is must you when don't the or said, is tap Jim, we weekend? And Louis, the Milwaukee. are had pool. we experiential into operating and the are all get city, They corporate Because in what team we arts -- premium can to and you your participate a to excellent there's of boy, in really of right. succeed, that this should at be are hotels, need we the Minneapolis that experience." that travel, something is I demand say, "I've planned And this great market, looks to anybody we brand don't create demand dip you hotel will my your that in the the and pick are -- going have mean do they up pick do what out. I sellout Mutual this us the dipping pie in demand itself just in says, demand." here. come you go think exactly will and or discussion in one, this is, or there." -- opened create

So going that. with you right. That's where we're are

question second -- -- question? about question the the of your was what On was what

James Goss

the with Museum? It was the Milwaukee Art tie-in

Gregory Marcus

Yes. The art museum.

on Wisconsin actually premier with think been it the were that And of that working we asked they our are terms has it which is this put really and artwork with gallery museum, beautiful. which partnership -- and have questions, Milwaukee up. done, that is things -- aren't well a you tough the our have And so going of a And Museum museum great been us when of I the in but points been great good and working We bigger Art, the -- in, art of But we of has first a for. us, we we're tie-in about And a win-win, of venue. relationship and both that for art come incredible said, XX really as and I think, groups, they've our we their downtown exhibit put hotel wanted collection Art. housed Milwaukee. with own the in is is and for and venue And expect -- great Bend, arts wonderful a curate for is it's being -- in of with it northwest institution, at well. the is minutes beauty asset an they Wisconsin And lots and headquarters and Museum downtown they that provided West as some art that's focused a a is its has to -- the asset exactly together. have what been we is which exhibits, that

James Goss

if that I'm were you rather early on And incremental $X is data extent? supports what to Tuesday data loyalty this shifted Tuesdays program invented wondering Okay. you and long-held view other than in idea, your your maybe audience or it.

Gregory Marcus

getting at to to clearly when the that who and we getting overlap, our the something Because we do fingertips. disclose, the we absolutely. Oh, that the track we that's can it weekends, customers, Tuesday, see Tuesdays, up of on see performance show but of on look customers. right we're number the at that. we're see not who And have don't generally able we I can as an incremental benefit see show And see guests we relates we up industry, incremental And my number it.

can numbers. You see it in

if You so customers the going -- we got and not has for the it: been been you we to haven't go anymore that customers can you saying can because it first long, "I trailers of is tell to the long overall. the And you you'll [indiscernible] did see just see and with when now, theater, so but marketing hear it -- on this data, to in beneficial that movies people exposing program." the it's to time, incremental, but me the and

James Goss

should you're film the younger plans at think versus these And I'm our schedule the any Okay. and mix that that factors QX, for if older wondering reseating like PLF QX have periods? latest the the about some same to and look and mindset of if pricing pricing or you we quarter. bias toward going film the factors affected for talking into in you the Doug, you build

Douglas Neis

the I mean right big Lion obviously, look, now King. playing movie is

the similar quarter to the a logically fourth we've films in X -- out release quarter. the I X half once again, And got audience, the from our Frozen skew having that generally aimed generally studios again, -- what the happened -- think a don't a just that's year, not coming typical. in on -- percentage be product, the to would expectation X pure the way so But their this of I But younger that second second in a film in of basis, quarter. and

half then I a & on of Jumanji release, the -- in like host films mean so you've September. and just -- Shaw quarter. in list, it are Star of lineup August. that looking in whole look in obviously I that movies you won't got It's at the some other and and you've going be got fourth really seen it films out Wars the lineup, the And we in mean the And great I pictures. of much the and at got -- And you've and probably some should coming you've business, direction don't -- Hobbs -- obviously, the based that press we're the in quite skew the year. it second as of number some

younger So other now it's science, an exact have pictures audience most but Frozen I not X. Jim, think played than the of

James Goss

And of a with PLF some the have and have screens, bias we you planned reseating initiatives additional should upward going on. an bit

Douglas Neis

little impetus bit can well. Yes, The the as an to same that DreamLounger quarters. And of Jim. were a added done provide what there's third in been the as have bias to a on -- of of previously, little Movie price we know, work not you well, our but a being as extent seeing theaters, been PLFs and second now where a there, bit upward particularly that's bit the Tavern primarily

there's So it. there's general, no question just to an still of it, about in somewhat -- bias upward

James Goss

new you X talking Tavern. you're or you've to any -- X to Are on-ground lastly, become exposed interest some or the are terms there exposure Maybe part? as that experience Okay. more look about starting Movie markets X around there Is you think of maybe an incremental to that like on were that's markets country? that giving M&A, creating of your at more of with opportunities you in

Gregory Marcus

Well, be beforehand, markets to mean, helpful -- interest -- of and to being as growth going we're you is because attention. Texas, got markets. It's of seeing easier we it where I'm more Any a heavy the look have -- an to if of it just kind that growth in and markets can we but had at what's rationalize. growth think an where interest like I in we we've I'd not we growth analyze easier That it's of of things, makes say these sure about on there a number market. because in idea certainly area, has -- Atlanta those makes it markets. our

Operator

[Operator Instructions]. Ryan comes with And Morgan our the of Hamilton next line from Dempsey. question

Ryan Hamilton

the the give and -- Could versus online dynamic? maybe little bit kind sold you going sales on transition kind the how a sales of and kind from are to online in are of of theater? at maybe theater, about what feel being that us sales a inside sales the of that's talk the And percentage changing kiosks for

Gregory Marcus

to how are office? online compared at mean people the box buying many buying you -- are Oh, so you

Ryan Hamilton

the Yes. are for It last-minute kind versus many inside curious kind purchases on these a of how of business ahead? just there. of just what's of gives planning me I'm feel going

Gregory Marcus

because seeing call Well, busy significant, if and yes, would you increased there a buying primary time at, release had that, the The to count people of with for would who it a shrink don't and that -- busier online. And ahead top-down seat reserve move I been that -- think customer the look and we the seen percentages, you approach, seating. first we of a move those the I have bottom-up we If you a think more say, the like you you next take -- impetus it's people less that, King, time, a be that of times. handy. had But move there's been to are not is amount let's is my there's on been then have purchasing are -- busy, very say them now know have at macro, you I movie. take are to want seats and are, online, don't thinking all, probably when seeing -- approach. you have point, And something -- to grabbing the depends like Lion Tuesdays, we which it's to see a and of early But especially significant early. more preplanned show ahead it's right there look if then probably, look, online significant sales. we ahead not really to it their more leads which going Tuesdays, before less

Ryan Hamilton

online they any them Okay. I along something of tickets sale Endgame on on than in like movie more first sold something that Right. XX going or in had had the heard hours those lines. history something

said something to as you of before Movie curious dynamics that you know was to you implemented any similar if like have that Did they I you they events them? next just acquired I the So what $X had. the My had the kind Tavern, touch there. could Tuesday. question, promotional on you maybe

Douglas Neis

where Not scream game really. the Tuesdays word as the -- community have mean, mean it ground and we event, make I I we the we mountaintop, -- get surrounding is, out Not not you great $X we the they about to to know, really. a it an from program. Ryan,

And no. so,

not little the our just something has. they think some of program it had was a but I had -- that discount bit gravitas that same

Gregory Marcus

to... going that's And we include so popcorn, free

Douglas Neis

Yes, nobody has that.

Gregory Marcus

that to That is a program. significant boost

James Goss

theaters a Tavern? And you're the with Movie lot movie rewards seeing with with traction now, their your of

Douglas Neis

as we it's of we it May. I mentioned, really rolled -- during the out Yes, month mean

team now is free helps we've member our and a that pleased and Tuesdays, members. think that on million sign-ups. at will drive tell you so of is this the X.X I the sign-ups get disclosing but program far, numbers it's -- gotten yet, not our being to so not we're membership now you by with We're popcorn that certainly, point, the total I but up And early, the

Gregory Marcus

X under million. little A

Douglas Neis

now total have a concepts. lot for a that And so program we're of signed all people, of up that's for that's our this guests -- in of lot

Ryan Hamilton

far in Will you've some I mostly business, you implementing Retro as Movie existing got where be your any the chain, of Tavern? Tavern of to that at going be movies? great. that to with similar what as That's Wow. guess using is that my the is Series? for going is current-run you're be your Or last question Movie

Gregory Marcus

in, the to can -- Movie us No, has imbue a programs we leads we to And that trying Again, And to our got them. we've is real more are people the approach, the Tavern. really Movie orientation drive sell think all what approach, Tavern. we the through to bring going to run attendance. theatre right operator I is that which more the been

are So we are. path on that's we why the

Operator

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

Douglas Neis

want Until we us to you we and We to look our when to everybody in again great release for result. and you, then, thank today. talking joining thank October forward thanks fiscal quarter XXXX Well, third have a day.

Operator

call. today's concludes That

lines at this may time. You all disconnect your

The Marcus Corporation (MCS) 27 Jul 192019 Q2 Earnings call transcript