ANNUAL SHAREHOLDERS MEETING. May 8, 2018

Transcription

1 ANNUAL SHAREHOLDERS MEETING May 8, 2018

2 Gregory S. Marcus President and CEO, The Marcus Corporation

3 Thomas F. Kissinger Senior Executive Vice President, General Counsel and Secretary, The Marcus Corporation

4 Douglas A. Neis Chief Financial Officer and Treasurer, The Marcus Corporation

5 Rolando B. Rodriguez Executive Vice President, The Marcus Corporation Chairman, President and CEO, Marcus Theatres

6 Chief Information Officer, The Marcus Corporation Kim M. Lueck

7 John E. Murray Vice President of Human Resources, The Marcus Corporation

8 Senior Managing Director, MCS Capital LLC William H. Reynolds, Jr.

9 Business Meeting

10 Board of Directors

11 President and CEO, The Marcus Corporation Gregory S. Marcus

12 Diane Marcus Gershowitz Real Estate Management and Investments

13 Retired Chairman, President & CEO, Midwest Air Group, Inc. Timothy E. Hoeksema

14 Allan H. (Bud) Selig Commissioner Emeritus, Major League Baseball

15 Bruce J. Olson Retired Senior Vice President, The Marcus Corporation Retired President, Marcus Theatres

16 Philip L. Milstein Principal, Ogden CAP Properties, LLC

17 Brian J. Stark Founding Principal, Chief Executive Officer and Chief Investment Officer, Stark Investments

18 Katherine M. Gehl Former Chairman and President, Gehl Foods, Inc.

19 David M. Baum President, Baum Media Group, LLC

20 Board of Directors

21 In Remembrance of Bronson J. Haase

22 Compensation of Named Executive Officers

23 Selection of Independent Registered Public Accounting Firm

24 Business Meeting

25 ANNUAL SHAREHOLDERS MEETING May 8, 2018

26 By the Numbers A Record Year! Record revenues, operating income and net earnings Both divisions contributed Outperformed our competition Total assets crossed the $1 billion threshold

27 Our associates are our greatest asset

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29 People Pleasing People

30 Distinctive Portfolio

31 Growing our Portfolio Omaha Marriott Downtown at the Capitol District Manager and minority investor 333 rooms

32 Adding Management Contracts DoubleTree by Hilton Hotel El Paso Downtown Sheraton Chapel Hill The Murieta Inn and Spa

33 Leveraging our Expertise Westin Atlanta Perimeter North $4.9 million gain on the sale

34 Grand Geneva Resort and Spa 29 new all-season villas Multi-million dollar investment Enhances the resort experience Enhancing our Properties

35 InterContinental Milwaukee Conversion into an independent arts-focused hotel Will be home to one of the country s most immersive and inviting arts hotel experiences Reimagined property opening in mid-2019 Enhancing our Properties

36 Maximizing our Competitive Advantages SafeHouse Chicago Opened Spring 2017 Contributed to our overall increase in food and beverage revenues Food and beverage contributed 32% of total division revenues Chef s Counter at Mason Street Grill at The Pfister Hotel

37 Acquire minority ownership and management contracts Add management contracts Enhance existing assets Maximize competitive advantages Growth Strategy

38 Continued Industry Outperformance Outperformed our competitive set by nearly four percentage points

39 The Pfister Hotel Celebrates 125 Years

40 Thank You!

41 ANNUAL SHAREHOLDERS MEETING May 8, 2018

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43 The restaurant that serves movies Offers a menu for everyone Welcome By the Numbers to BistroPlex

44 Continued to invest in our existing and acquired theatres Expanded our successful promotions and marketing programs Invested more than $350 million since 2013 By the Numbers A Record Year

45 Continued to Update Marcus By the Wehrenberg Numbers Theatres Added DreamLoungers and signature F&B concepts Introduced special promotions and programs Made significant improvements at nine of 14 Marcus Wehrenberg locations More renovations planned in 2018

46 By the Premium NumbersAmenities DreamLoungers in 65% of our first-run screens Premium large format screens at 69% of locations

47 Signature Food and By Beverage the Momentum Numbers Concepts Take Five lounges in 26 locations Zaffiro s Express in 26 locations Big Screen Bistro in 10 locations Reel Sizzle in 7 locations

48 Innovative Marketing & Promotional By the Momentum NumbersStrategies

49 By the Momentum Numbers Growth Strategy Dynamically Different Better understanding our customers Continue to invest in features and amenities Build new theatres Acquire additional theatres or theatre circuits

50 By the Numbers Thank You! We make magical movie memories for our customers each and every day.

51 ANNUAL SHAREHOLDERS MEETING May 8, 2018

52 RECORD revenues RECORD operating income RECORD net earnings Another Record Year

53 Revenues $700 $600 $500 $400 $300 $200 $100 $0 Revenues (in millions) $622.7 $ Up 14.5%

54 Operating Income Operating Income (in millions) $80 $70 $60 $50 $40 $30 $20 $10 $0 $70.0 $ Up 8.0%

55 Net Earnings and EPS Net Earnings (in millions) Earnings Per Share $70 $65.0 Up 71.5% $2.50 $2.29 Up 68.4% $60 $2.00 $50 $40 $37.9 $1.50 $1.36 $30 $1.00 $20 $10 $0.50 $ $

56 Both Divisions Contributed Meaningfully A Leader in Company Forward Lodging Looking & Entertainment Overview Statement Revenues by Division Operating Income by Division 35.5% Marcus Theatres Marcus Hotels Corporate Items 13.7% 64.4% 86.3% 0.1%

57 Marcus Theatres A record year Revenues up 22% Operating income up nearly 12% Outperformed the industry

58 Revenue per available room (RevPAR) increased Decreased operating income Outperformed the competitive set in our markets in average daily rate and occupancy Marcus Hotels & Resorts A Leader in Company Forward Lodging Looking & Entertainment Overview Statement

59 Capital Expenditures Nearly $115 million in 2017 May be in the $65-80 million range for fiscal 2018 $95.0

60 Strong Balance Sheet Low debt at 40 percent at the end of Q $90 million in available credit lines at the end of Q Positioned to return capital to shareholders and continue to invest in our two businesses 50% 40% 30% 20% Debt/Capitalization Ratio 42% 42% 38% 42% 40% 40% 10% 0% 5/29/14 5/28/15 12/31/15 12/29/16 12/28/17 3/29/18

61 First Quarter Fiscal 2018 Results

62 First Quarter 2018 Results Revenues (in millions) Operating Income (in millions) $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 $158.0 $ Up 1.7% $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 $18.0 $ Down 7.8%

63 First Quarter 2018 Results Net Earnings (in millions) Earnings Per Share $12 $10 $8 $9.5 $9.8 Up 3.9% $0.40 $0.35 $0.30 $0.25 $0.33 $0.35 Up 6.1% $6 $0.20 $4 $2 $0.15 $0.10 $0.05 $ $

64 First Quarter 2018 Results Marcus Theatres Continued to outperform the industry Marcus Wehrenberg locations drove division s performance Marcus Hotels & Resorts Outperformed the competitive set in our key markets Total revenues increased 3.4 percent and operating losses improved

65 Financially strong Both divisions continue to be leaders in their industries Positive outlook Summary

66 ANNUAL SHAREHOLDERS MEETING May 8, 2018

67 Investing in Our Shareholders, Associates and Communities Increased the quarterly cash dividend by 20% to $0.15 per common share in February 2018 Increased our matching contributions to our 401(k) plan for our associates Studying additional opportunities that will benefit our associates and their families Increased contributions to The Marcus Foundation

68 Associates Shareholders Thank You! Thank you for your commitment and support.

69 Sneak preview!

70 Shareholder Comments & Questions

71 Thank You Gift

72 Stay and enjoy a movie!

73 ANNUAL SHAREHOLDERS MEETING May 8, 2018