The following is a summary of the The Marcus Corporation (MCS) Q1 2024 Earnings Call Transcript:

Financial Performance:

• The Marcus Corporation reported consolidated revenues of $138.5 million for Q1 2024, a decrease of $13.7 million or 9% from Q1 2023, mainly due to a reduction in theater division revenue.

• Operating loss was $16.7 million and adjusted EBITDA was $2.3 million, a decrease of $7.2 million over Q1 2023.

• The Hotels and Resorts division reported revenue of $57.2 million for Q1 2024, an increase of 2.5% year-on-year due to the strength in the group business.

• The Theaters division reported a 15.7% decrease in revenue at $81.3 million, attributed to a weaker film slate.

• The company's gross margin within its concession business decreased by nearly 6 percentage points in the quarter, but is expected to model at 57% in the future.

Business Progress:

• The Hotels and Resorts division increased its client base primarily through successful growth in group business and better revenue management.

• The Theaters division mitigated some of the effects of decreased attendance through careful management of operating hours and labor.

• The company made a $4 million investment into a joint venture acquiring the Loews Minneapolis Hotel.

• There has been significant growth in group room revenue bookings, with encouraging forecasts for fiscal 2024 and 2025.

• Renovation projects in various owned hotels continue to progress, with minimal disruption to business.

• A shift in business mix is being seen, from leisure transient to a group mix, which is expected to generate more ancillary revenue like banquets and catering.

• There's no plan to cut rates in response to potential market softening and confidence about the recovery path for its theater business was expressed.

More details: Marcus IR

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