The Marcus Corp. (MCS, Financial) filed Quarterly Report for the period ended 2009-11-26.
The Marcus Corporation is comprised of four divisions: limited-service lodging, movie theatres, hotels/resorts and restaurants. The company currently operates or franchises Baymont Inns & Suites in a variety of states, and Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas; movie screens in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin; hotels and resorts in Wisconsin, California, Minnesota, and Missouri; and KFC and KFC/Taco Bell 2-in-1 restaurants in Wisconsin. (Company Press Release) The Marcus Corp. has a market cap of $393.7 million; its shares were traded at around $13.19 with a P/E ratio of 25.9 and P/S ratio of 1. The dividend yield of The Marcus Corp. stocks is 2.6%.
Our interest expense totaled $2.7 million and $5.7 million for the second quarter and first half of fiscal 2010, respectively, compared to $3.6 million and $7.4 million during the same periods last year. The decrease in interest expense during the fiscal 2010
We reported small gains on disposition of property, equipment and other assets of $166,000 and $173,000 during the fiscal 2010 second quarter and first half, respectively, compared to losses of $1.1 million and $1.2 million during the same periods last year. Our fiscal 2010 gains included a favorable legal settlement related to the original construction of the condominium units at our Platinum Hotel & Spa in Las Vegas, Nevada. During our fiscal 2009 second quarter, we reported a loss of approximately $1.1 million related to an adjustment of prior pro-rated gains recorded on the sale of the Platinum condominium units. With approximately 94% of the units sold, prior gains were recorded on a percentage of completion method based upon estimated total proceeds once all 255 units were sold. As a result of the economic environment and its impact on Las Vegas real estate values, we lowered our estimated total proceeds which we expected to receive when the remaining 16 units are sold. Our pro-rated gain on sale of the previous units was reduced accordingly. The timing of periodic sales of our property and equipment varies from quarter to quarter, resulting in variations in our reported gains or losses on disposition of property and equipment. We anticipate periodic additional sales of non-core property and equipment with the potential for additional disposition gains or losses from time to time during future periods, but the current economic environment will likely limit our sales activity during the near term.
We reported net equity losses from unconsolidated joint ventures of $5,000 and $36,000 during the second quarter and first half of fiscal 2010, respectively, compared to losses of $15,000 and $99,000 during the same periods of fiscal 2009. Net losses during both years included our share of results from our remaining Baymont joint venture and two hotel joint ventures. We currently do not expect significant variations in net equity gains or losses from unconsolidated joint ventures during the remaining quarters of fiscal 2010 compared to the same periods last year.
We reported income tax expense (benefit) for the second quarter and first half of fiscal 2010 of $(49,000) and $5.8 million, respectively, compared to $670,000 and $8.6 million during the same periods of fiscal 2009. Our fiscal 2010 first half effective income tax rate was 37.0% compared to our fiscal 2009 first half effective rate of 39.2%. This decrease in our effective tax rate was primarily due to a decrease in our liability for unrecognized tax benefits as a result of a lapse of the applicable statute of limitations during fiscal 2010. We currently expect our effective tax rate for the remaining quarters of fiscal 2010 to be in our historical 38-40% range, pending any further lapses of statutes of limitations during the year or the completion of tax examinations by taxing authorities. Our actual fiscal 2010 effective income tax rate may be different from our estimated quarterly rates depending upon actual facts and circumstances.
Read the The complete ReportMCS is in the portfolios of Private Capital of Private Capital Management, John Keeley of Keeley Fund Management.
The Marcus Corporation is comprised of four divisions: limited-service lodging, movie theatres, hotels/resorts and restaurants. The company currently operates or franchises Baymont Inns & Suites in a variety of states, and Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas; movie screens in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin; hotels and resorts in Wisconsin, California, Minnesota, and Missouri; and KFC and KFC/Taco Bell 2-in-1 restaurants in Wisconsin. (Company Press Release) The Marcus Corp. has a market cap of $393.7 million; its shares were traded at around $13.19 with a P/E ratio of 25.9 and P/S ratio of 1. The dividend yield of The Marcus Corp. stocks is 2.6%.
Highlight of Business Operations:
We recognized investment income of $183,000 and $287,000 during the second quarter and first half of fiscal 2010, respectively, compared to investment losses of $2.0 million and $1.7 million during the same periods last year. Last year during our second quarter, we reported two unusual investment losses, totaling approximately $2.2 million, related to investment losses on securities held for sale and losses on loans to, and investments in, a former Baymont Inns & Suites joint venture that owns real estate that declined in value because of existing commercial real estate market conditions. For the remainder of fiscal 2010, our investment income will likely remain at levels consistent with the fiscal 2010 first half.Our interest expense totaled $2.7 million and $5.7 million for the second quarter and first half of fiscal 2010, respectively, compared to $3.6 million and $7.4 million during the same periods last year. The decrease in interest expense during the fiscal 2010
We reported small gains on disposition of property, equipment and other assets of $166,000 and $173,000 during the fiscal 2010 second quarter and first half, respectively, compared to losses of $1.1 million and $1.2 million during the same periods last year. Our fiscal 2010 gains included a favorable legal settlement related to the original construction of the condominium units at our Platinum Hotel & Spa in Las Vegas, Nevada. During our fiscal 2009 second quarter, we reported a loss of approximately $1.1 million related to an adjustment of prior pro-rated gains recorded on the sale of the Platinum condominium units. With approximately 94% of the units sold, prior gains were recorded on a percentage of completion method based upon estimated total proceeds once all 255 units were sold. As a result of the economic environment and its impact on Las Vegas real estate values, we lowered our estimated total proceeds which we expected to receive when the remaining 16 units are sold. Our pro-rated gain on sale of the previous units was reduced accordingly. The timing of periodic sales of our property and equipment varies from quarter to quarter, resulting in variations in our reported gains or losses on disposition of property and equipment. We anticipate periodic additional sales of non-core property and equipment with the potential for additional disposition gains or losses from time to time during future periods, but the current economic environment will likely limit our sales activity during the near term.
We reported net equity losses from unconsolidated joint ventures of $5,000 and $36,000 during the second quarter and first half of fiscal 2010, respectively, compared to losses of $15,000 and $99,000 during the same periods of fiscal 2009. Net losses during both years included our share of results from our remaining Baymont joint venture and two hotel joint ventures. We currently do not expect significant variations in net equity gains or losses from unconsolidated joint ventures during the remaining quarters of fiscal 2010 compared to the same periods last year.
We reported income tax expense (benefit) for the second quarter and first half of fiscal 2010 of $(49,000) and $5.8 million, respectively, compared to $670,000 and $8.6 million during the same periods of fiscal 2009. Our fiscal 2010 first half effective income tax rate was 37.0% compared to our fiscal 2009 first half effective rate of 39.2%. This decrease in our effective tax rate was primarily due to a decrease in our liability for unrecognized tax benefits as a result of a lapse of the applicable statute of limitations during fiscal 2010. We currently expect our effective tax rate for the remaining quarters of fiscal 2010 to be in our historical 38-40% range, pending any further lapses of statutes of limitations during the year or the completion of tax examinations by taxing authorities. Our actual fiscal 2010 effective income tax rate may be different from our estimated quarterly rates depending upon actual facts and circumstances.
Read the The complete ReportMCS is in the portfolios of Private Capital of Private Capital Management, John Keeley of Keeley Fund Management.
