Marcus (MCS) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 26, 2026 astatine 11:39 AM CST 35 min read

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Thursday, February 26, 2026 astatine 11 a.m. ET

• President & CEO — Gregory S. Marcus

• Chief Financial Officer — Chad Paris

All right. With that down us, this morning, I volition commencement by spending a fewer minutes sharing the results from our 4th fourth and the afloat year, and sermon our equilibrium sheet, liquidity, and superior allocation, and past I volition crook the telephone implicit to Gregory S. Marcus who volition absorption his prepared remarks connected wherever our businesses are contiguous and what we spot up for 2026. We volition past unfastened up the telephone for questions. This morning, we reported a 4th of coagulated execution and results, with some divisions delivering year-over-year gross and net maturation and outperforming their industries. In theaters, a movie slate that featured a favorable movie premix coupled with beardown per-cap maturation drove meaningfully improved marketplace share. In hotels, our renovated properties were winning successful their markets, attracting accrued leisure request astatine higher rates that drove our RevPAR outperformance, capping a grounds gross and EBITDA twelvemonth for the part for the 2025. Turning to the numbers and starting with a fewer highlights from our consolidated results, we generated consolidated revenues of $193,500,000, a 2.8% summation compared to the 4th fourth past year, with gross maturation successful some divisions. Our 4th fourth operating income of $1,700,000 was negatively impacted by $5,200,000 of non-cash impairment charges successful the theatre division, which are excluded from adjusted EBITDA. Excluding the charges, our 4th fourth operating income was $6,900,000, increasing 5.2% compared to operating income of $6,600,000 successful 2024, excluding impairment charges and nonrecurring expenses successful the anterior year. We delivered $26,800,000 of consolidated adjusted EBITDA, a 3.6% summation implicit the prior-year 4th quarter. There is 1 antithetic point successful the 4th fourth beneath operating income that impacted our nett net and net per stock that I would similar to highlight. Our 4th fourth and full-year income taxation payment includes an astir $7,600,000, oregon $0.24 per share, payment from national and authorities historical taxation credits earned related to the completion of the Hilton Milwaukee renovation. The interaction of the credits is excluded from our adjusted EBITDA operating results. For the afloat twelvemonth fiscal 2025, consolidated revenues accrued conscionable implicit 3% from the anterior twelvemonth with gross maturation successful some divisions. Consolidated operating income for the twelvemonth was $17,100,000. Excluding the 4th fourth theaters impairment charges, full-year operating income was $22,200,000 compared to operating income of $25,900,000 successful fiscal 2024, excluding impairments and nonrecurring expenses successful the anterior year. Finally, adjusted EBITDA for the afloat twelvemonth decreased 3.1% to $99,300,000. Turning to our conception results, I volition commencement with theaters. Our 4th fourth fiscal 2025 full gross of $123,800,000 accrued 2.2% compared to the prior-year 4th quarter. It is important to enactment the displacement successful our fiscal calendar favorably impacted our gross and attendance comparisons implicit the prior-year periods. Our fiscal twelvemonth ended connected December 31 this twelvemonth compared to December 26 successful fiscal 2024, resulting successful 5 further days successful our fiscal 4th fourth during the engaged week betwixt the holidays compared to the anterior year, portion removing 4 days successful precocious September erstwhile concern is slower, and resulting successful 1 nett further operating time for the quarter. The displacement successful our fiscal calendar and further days betwixt the holidays had a 6.8 percent constituent favorable interaction connected admissions gross maturation and a 6.4 percent constituent favorable interaction connected attendance maturation compared with the prior-year 4th quarter. On a calendar 4th ground successful some periods, comparable theatre admittance gross accrued 6.1% implicit 2024 with a much favorable premix of household films that played good successful our markets. Comparable theatre attendance decreased 5.7% successful 2025 compared with the prior-year fiscal 4th quarter, portion connected a calendar 4th ground successful some periods, comparable theatre attendance decreased 12.1%. Average admittance terms accrued 12.7% during 2025 compared to past twelvemonth and was positively impacted by strategical summons terms optimization actions implemented during highest request periods, changes to promotions during the vacation periods, and a higher premix of 3D tickets. According to information received from Comscore and compiled by america to measure our fiscal 2025 4th fourth results utilizing our comparable fiscal weeks, U.S. container bureau receipts decreased 1.5% during our fiscal 2025 4th fourth compared to U.S. container bureau receipts successful 2024, indicating our theaters led the industry, outperforming by astir 7.6 percent points. We judge our outperformance is chiefly attributed to our strategical pricing actions with the somewhat little concentrated movie slate resulting successful little than a 1 percent constituent alteration successful wide movie outgo arsenic a percent of admittance revenues for the 4th quarter. For the afloat year, movie outgo arsenic a percent of admittance revenues was level compared to fiscal 2024. Per-capita concession, nutrient and beverage revenues accrued by 7.2% during 2025 compared to past year’s 4th quarter, which was driven by increases successful incidence rate, higher merchandise sales, concessions pricing changes, arsenic good arsenic a favorable movie slate that featured aggregate titles appealing to household audiences, a genre wherever our circuit typically performs well. Our apical 10 films successful the 4th represented astir 70% of the container bureau successful 2025 compared to astir 75% for the apical 10 films successful the 4th fourth past year. On the higher revenues, theatre part adjusted EBITDA was $24,100,000, conscionable nether a 2 percent constituent summation compared to the anterior year. Reimbursements were $60,400,000 for 2025, a 5% summation compared to the anterior year. Turning to the edifice part revenues and results, RevPAR for our owned hotels grew 3.5% during the 4th fourth compared to the prior-year quarter, driven chiefly by higher revenues, arsenic our recently renovated hotels proceed to pull request and thrust higher rates. Our properties proceed to execute good against the manufacture arsenic a whole. Average regular rates grew 5.6% during the 4th fourth compared to the prior-year quarter, with our mean occupancy complaint for our owned hotels astatine 60.2% during 2025, a 1.2 percent constituent alteration successful our occupancy complaint compared to 2024. The displacement successful our fiscal calendar and nett 1 further operating time successful the 4th had an insignificant interaction connected the edifice part revenues and results. Based connected information from STR, erstwhile comparing our RevPAR results to comparable upper-upscale hotels passim the U.S., the upper-upscale conception experienced an summation successful RevPAR of 0.8% during the 4th fourth compared to 2024, indicating that our hotels outperformed the manufacture by 2.7 percent points. Comparable competitory hotels successful our markets experienced a RevPAR alteration of 2% for 2025 compared to 2024, indicating that our hotels outperformed their competitory acceptable by 5.5 percent points, arsenic good arsenic a heavier premix of transient leisure request astatine higher rates. Group request remained mostly dependable during 2025, with radical rooms representing 35% of our full country premix compared to 36% of our country premix successful 2024, with our radical premix successful 2025 reverting to much emblematic levels. Finally, hotels’ 4th fourth adjusted EBITDA was $7,300,000, an summation of 3.4% compared to the prior-year quarter. Shifting to currency travel and the equilibrium sheet, our currency travel from operations was $48,800,000 successful 2025 compared to $52,600,000 successful the prior-year quarter, with the alteration successful currency travel from operations owed to unfavorable moving superior changes related to the timing of payments comparative to our fiscal year-end. For the afloat year, currency travel from operations was $84,200,000 compared to conscionable nether $104,000,000 successful fiscal 2024. Total superior expenditures for fiscal 2025 were $83,000,000 compared to $79,200,000 successful fiscal 2024, which was chiefly comprised of Hilton Milwaukee renovation task payments and attraction projects successful some businesses. During the 4th quarter, we repurchased astir 118,000 shares of our communal banal for $1,800,000 successful cash. This brings our stock repurchases for 2025 to conscionable implicit 1,100,000 shares, oregon astir 3.6% of our outstanding shares astatine the opening of the year, returning astir $18,000,000 successful cash. Our cumulative buybacks since resuming stock repurchases successful the 3rd 4th of 2024 are present implicit 1,800,000 shares, oregon astir 5.7% of our outstanding stock number erstwhile we began, returning astir $28,000,000 successful superior to shareholders. In total, implicit the past 2 years, we person returned implicit $45,000,000 successful superior to shareholders done stock repurchases and dividends paid during fiscal 2024 and 2025. We stay committed to returning superior to shareholders done our quarterly dividend and stock repurchases. We program to turn the dividend implicit clip and opportunistically repurchase shares erstwhile we make currency successful excess of our near-term quality to reinvest oregon deploy for strategical growth. We are disciplined successful our approach. While we often bash not power the timing oregon availability of deals, we proceed to actively hunt for opportunities to deploy superior to turn our businesses. Looking ahead, an overview of our existent superior allocation priorities for 2026: We expect full superior expenditures of $50,000,000 to $55,000,000 based connected our existent portfolio of assets, with astir $25,000,000 to $30,000,000 successful hotels, and $20,000,000 to $25,000,000 successful theaters. The timing of our planned superior projects whitethorn interaction our existent superior expenditures during fiscal 2026, and we volition proceed to supply updates arsenic the twelvemonth progresses. We expect this alteration successful superior expenditures to effect successful a important summation successful escaped currency travel successful 2026, which volition beryllium allocated to opportunistic maturation investments and returning superior to shareholders. With that, I volition present crook the telephone implicit to Gregory S. Marcus.