EX-99.2 3 v427189_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

Change in Fiscal Year End December 17, 2015

Special Note Regarding Forward Looking Statements 2 Certain matters discussed in this Presentation are “forward - looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward - looking statements may generally be identified as such because the context of such statements include words such as we “believe,” “anticipate,” “expect” or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward - looking statements. Such forward - looking statements are subject to certain risks and uncertainties which may cause results to differ materially from those expected, including, but not limited to, the following: (1) the availability, i n terms of both quantity and audience appeal, of motion pictures for our theatre division, as well as other industry dynamics such as the maintenance of a suitable window between the date such motion pictures are released in theatres and the date they are released to other distribution channels; (2) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (3) the effects on our occupancy and room rates of the relative industry supply of available rooms at comparable lodging facilities in our markets; (4) the effects of competitive conditions in our markets; (5) our ability to achieve expected benefits and performance from our strategic initiatives and acquisitions; (6) the effects of increasing depreciation expenses, reduced operating profits during major property renovations, impairment losses, and preopening and start - up costs due to the capital intensive nature of our businesses; (7) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (8) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; and (9) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States or other incidents of violence in public venues such as hotels and movie theatres. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward - looking statements and are cautioned not to place undue reliance on such forward - looking statements. The forward - looking statements made herein are made only as of the date of this Presentation and we undertake no obligation to publicly update such forward - looking statements to reflect subsequent events or circumstances.

Transitioning Fiscal Year End from May to December • The Marcus Corporation (MCS) is changing its fiscal year end from the last Thursday in May to the last Thursday in December. – Better aligns the company’s financial reporting schedule with the peer groups in its industries – Moves the company’s year - end closing activities outside of its busy summer season, enabling associates to better manage their workload. 3

Transitioning Fiscal Year End from May to December • The company will report a 31 - week transition period from May 29, 2015 to December 31, 2015, consisting of two 13 - week quarters ending on August 27, 2015 and November 26, 2015 and a final 5 - week period ending on December 31, 2015 . • Results from this transition period will be compared to a 30 - week period from May 30, 2014 to December 25, 2014, consisting of two 13 - week quarters ending on August 28, 2014 and November 27, 2014 and a final 4 - week period ending on December 25, 2014. • Fiscal 2016 will be a 52 - week period from January 1, 2016 to December 29, 2016. 4

Impact of Extra Week 5 • The transition period ending on December 31, 2015 will benefit from an additional 31 st week of operations compared to the prior year 30 - week period. This additional week includes the traditionally strong week for movie theatres between Christmas and New Year’s. • The company estimates that the comparable 31 st week last year contributed approximately $14.1 million in revenues ($10.7 million - Theatres, $3.4 million - Hotels) and $4.8 million in operating income ($4.2 million – Theatres, $0.7 million – Hotels, $(0.1) million - Corporate) to its reported financial results. • After interest expense and income taxes, the company estimates that the 31 st week of operations last year contributed approximately $2.8 million to net earnings, or $ 0.10 per diluted common share . • Actual results for the 31 st week this year could differ materially from those experienced last year.

Comparative Financial Information 6 • The company has prepared the following unaudited, historical financial information to assist investors in evaluating the impact the change in fiscal year may have on its future reported transition period, quarterly and annual operating results : – Consolidated Statements of Earnings for the 30 - week period from May 30, 2014 to December 25, 2014, including applicable interim periods and selected segment information; – Consolidated Statements of Earnings for the 52 - weeks ended December 25, 2014, including applicable interim periods and selected segment information; and – Consolidated Statements of Earnings for the 39 - weeks ended September 24, 2015, including applicable interim periods and selected segment information . • Actual results for the comparable periods in the transition period ending on December 31, 2015 and fiscal 2016 could differ materially from those experienced in the prior year periods and reflected in the above - described unaudited historical financial information.

THE MARCUS CORPORATION

Consolidated Statements of Earnings

Comparative Info - 30 week Period from May 30, 2014 to December 25, 2014 (Unaudited)

|  |  |  |  |  |  |  | 4 Weeks |  |  |  |
|  | 13 Weeks Ended |  |  | Ended |  |  | 30 Weeks Ended |
(in thousands, except per share data) |  | August 28, |  |  | Nov. 27 |  |  | Dec. 25, |  |  | Dec. 25, |
|  | 2014 |  |  | 2014 |  |  | 2014 |  |  | 2014 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre admissions |  | $ | 41,345 |  |  | $ | 32,794 |  |  | $ | 11,469 |  |  | $ | 85,608 |
Rooms |  |  | 34,681 |  |  |  | 29,678 |  |  |  | 5,538 |  |  |  | 69,897 |
Theatre concessions |  |  | 24,922 |  |  |  | 20,484 |  |  |  | 7,466 |  |  |  | 52,872 |
Food and beverage |  |  | 16,155 |  |  |  | 20,134 |  |  |  | 5,167 |  |  |  | 41,456 |
Other revenues |  |  | 14,666 |  |  |  | 12,971 |  |  |  | 3,170 |  |  |  | 30,807 |
Total revenues |  |  | 131,769 |  |  |  | 116,061 |  |  |  | 32,810 |  |  |  | 280,640 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre operations |  |  | 34,863 |  |  |  | 27,953 |  |  |  | 10,265 |  |  |  | 73,081 |
Rooms |  |  | 11,402 |  |  |  | 10,725 |  |  |  | 2,977 |  |  |  | 25,104 |
Theatre concessions |  |  | 6,721 |  |  |  | 5,841 |  |  |  | 2,149 |  |  |  | 14,711 |
Food and beverage |  |  | 12,063 |  |  |  | 15,924 |  |  |  | 4,438 |  |  |  | 32,425 |
Advertising and marketing |  |  | 7,388 |  |  |  | 6,710 |  |  |  | 2,080 |  |  |  | 16,178 |
Administrative |  |  | 12,392 |  |  |  | 12,955 |  |  |  | 3,682 |  |  |  | 29,029 |
Depreciation and amortization |  |  | 9,078 |  |  |  | 10,156 |  |  |  | 3,178 |  |  |  | 22,412 |
Rent |  |  | 2,154 |  |  |  | 2,160 |  |  |  | 695 |  |  |  | 5,009 |
Property taxes |  |  | 3,906 |  |  |  | 3,719 |  |  |  | 1,131 |  |  |  | 8,756 |
Other operating expenses |  |  | 9,113 |  |  |  | 8,298 |  |  |  | 2,500 |  |  |  | 19,911 |
Total costs and expenses |  |  | 109,080 |  |  |  | 104,441 |  |  |  | 33,095 |  |  |  | 246,616 |
Operating income |  |  | 22,689 |  |  |  | 11,620 |  |  |  | (285 | ) |  |  | 34,024 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income (loss) |  |  | 25 |  |  |  | 25 |  |  |  | 8 |  |  |  | 58 |
Interest expense |  |  | (2,404 | ) |  |  | (2,388 | ) |  |  | (765 | ) |  |  | (5,557 | )
Gain (loss) on disposition of property, equipment and other assets |  |  | (6 | ) |  |  | (495 | ) |  |  | (218 | ) |  |  | (719 | )
Equity earnings (losses) from unconsolidated joint ventures, net |  |  | (41 | ) |  |  | 27 |  |  |  | (49 | ) |  |  | (63 | )
|  |  | (2,426 | ) |  |  | (2,831 | ) |  |  | (1,024 | ) |  |  | (6,281 | )
Earnings before income taxes |  |  | 20,263 |  |  |  | 8,789 |  |  |  | (1,309 | ) |  |  | 27,743 |
Income taxes |  |  | 7,987 |  |  |  | 3,398 |  |  |  | (342 | ) |  |  | 11,043 |
Net earnings |  |  | 12,276 |  |  |  | 5,391 |  |  |  | (967 | ) |  |  | 16,700 |
Net loss attributable to noncontrolling interests |  |  | (156 | ) |  |  | 168 |  |  |  | (94 | ) |  |  | (82 | )
Net earnings attributable to The Marcus Corporation |  | $ | 12,432 |  |  | $ | 5,223 |  |  | $ | (873 | ) |  | $ | 16,782 |
Net earnings per common share attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The Marcus Corporation - diluted |  | $ | 0.45 |  |  | $ | 0.19 |  |  | $ | (0.03 | ) |  | $ | 0.61 |
Weighted ave. shares outstanding - diluted |  |  | 27,613 |  |  |  | 27,568 |  |  |  | 27,616 |  |  |  | 27,593 |
Selected Segment Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 69,387 |  |  | $ | 56,275 |  |  | $ | 19,687 |  |  | $ | 145,349 |
Hotels & Resorts |  |  | 62,247 |  |  |  | 59,626 |  |  |  | 13,092 |  |  |  | 134,965 |
Corporate |  |  | 135 |  |  |  | 160 |  |  |  | 31 |  |  |  | 326 |
Total revenues |  | $ | 131,769 |  |  | $ | 116,061 |  |  | $ | 32,810 |  |  | $ | 280,640 |
Operating Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 14,854 |  |  | $ | 9,783 |  |  | $ | 3,083 |  |  | $ | 27,720 |
Hotels & Resorts |  |  | 11,004 |  |  |  | 5,729 |  |  |  | (2,255 | ) |  |  | 14,478 |
Corporate |  |  | (3,169 | ) |  |  | (3,892 | ) |  |  | (1,113 | ) |  |  | (8,174 | )
Total operating income |  | $ | 22,689 |  |  | $ | 11,620 |  |  | $ | (285 | ) |  | $ | 34,024 |

THE MARCUS CORPORATION

Consolidated Statements of Earnings

Comparative Info - 52 Weeks Ended December 25, 2014 (Unaudited)

|  | 13 Weeks Ended |  |  | 52 Weeks Ended |
(in thousands, except per share data) |  | March 27, |  |  | June 26, |  |  | Sept. 25, |  |  | Dec. 25, |  |  | Dec. 25, |
|  | 2014 |  |  | 2014 |  |  | 2014 |  |  | 2014 |  |  | 2014 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre admissions |  | $ | 37,328 |  |  | $ | 38,362 |  |  | $ | 34,842 |  |  | $ | 37,456 |  |  | $ | 147,988 |
Rooms |  |  | 21,201 |  |  |  | 28,609 |  |  |  | 33,684 |  |  |  | 25,452 |  |  |  | 108,946 |
Theatre concessions |  |  | 21,745 |  |  |  | 22,745 |  |  |  | 21,433 |  |  |  | 23,680 |  |  |  | 89,603 |
Food and beverage |  |  | 13,382 |  |  |  | 15,419 |  |  |  | 15,654 |  |  |  | 20,199 |  |  |  | 64,654 |
Other revenues |  |  | 13,443 |  |  |  | 13,433 |  |  |  | 14,317 |  |  |  | 11,832 |  |  |  | 53,025 |
Total revenues |  |  | 107,099 |  |  |  | 118,568 |  |  |  | 119,930 |  |  |  | 118,619 |  |  |  | 464,216 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre operations |  |  | 33,579 |  |  |  | 33,212 |  |  |  | 30,581 |  |  |  | 31,490 |  |  |  | 128,862 |
Rooms |  |  | 9,887 |  |  |  | 10,620 |  |  |  | 11,470 |  |  |  | 10,186 |  |  |  | 42,163 |
Theatre concessions |  |  | 6,056 |  |  |  | 6,369 |  |  |  | 5,859 |  |  |  | 6,660 |  |  |  | 24,944 |
Food and beverage |  |  | 11,485 |  |  |  | 11,784 |  |  |  | 11,826 |  |  |  | 16,607 |  |  |  | 51,702 |
Advertising and marketing |  |  | 5,709 |  |  |  | 6,573 |  |  |  | 6,871 |  |  |  | 6,854 |  |  |  | 26,007 |
Administrative |  |  | 11,931 |  |  |  | 11,498 |  |  |  | 12,490 |  |  |  | 12,843 |  |  |  | 48,762 |
Depreciation and amortization |  |  | 8,273 |  |  |  | 8,979 |  |  |  | 9,218 |  |  |  | 10,234 |  |  |  | 36,704 |
Rent |  |  | 2,153 |  |  |  | 2,130 |  |  |  | 2,181 |  |  |  | 2,125 |  |  |  | 8,589 |
Property taxes |  |  | 4,210 |  |  |  | 3,291 |  |  |  | 3,888 |  |  |  | 3,568 |  |  |  | 14,957 |
Other operating expenses |  |  | 8,443 |  |  |  | 8,167 |  |  |  | 8,947 |  |  |  | 8,154 |  |  |  | 33,711 |
Total costs and expenses |  |  | 101,726 |  |  |  | 102,623 |  |  |  | 103,331 |  |  |  | 108,721 |  |  |  | 416,401 |
Operating income |  |  | 5,373 |  |  |  | 15,945 |  |  |  | 16,599 |  |  |  | 9,898 |  |  |  | 47,815 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income (loss) |  |  | 385 |  |  |  | 236 |  |  |  | 26 |  |  |  | 21 |  |  |  | 668 |
Interest expense |  |  | (2,580 | ) |  |  | (2,433 | ) |  |  | (2,378 | ) |  |  | (2,410 | ) |  |  | (9,801 | )
Gain (loss) on disposition of property, equipment and other assets |  |  | (10 | ) |  |  | (41 | ) |  |  | 111 |  |  |  | (817 | ) |  |  | (757 | )
Equity earnings (losses) from unconsolidated joint ventures, net |  |  | (144 | ) |  |  | (41 | ) |  |  | 23 |  |  |  | (93 | ) |  |  | (255 | )
|  |  | (2,349 | ) |  |  | (2,279 | ) |  |  | (2,218 | ) |  |  | (3,299 | ) |  |  | (10,145 | )
Earnings before income taxes |  |  | 3,024 |  |  |  | 13,666 |  |  |  | 14,381 |  |  |  | 6,599 |  |  |  | 37,670 |
Income taxes |  |  | 2,726 |  |  |  | 5,560 |  |  |  | 5,646 |  |  |  | 2,703 |  |  |  | 16,635 |
Net earnings |  |  | 298 |  |  |  | 8,106 |  |  |  | 8,735 |  |  |  | 3,896 |  |  |  | 21,035 |
Net earnings (loss) attributable to noncontrolling interests |  |  | (3,674 | ) |  |  | 97 |  |  |  | (157 | ) |  |  | 45 |  |  |  | (3,689 | )
Net earnings attributable to The Marcus Corporation |  | $ | 3,972 |  |  | $ | 8,009 |  |  | $ | 8,892 |  |  | $ | 3,851 |  |  | $ | 24,724 |
Net earnings per common share attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The Marcus Corporation - diluted |  | $ | 0.15 |  |  | $ | 0.29 |  |  | $ | 0.32 |  |  | $ | 0.14 |  |  | $ | 0.90 |
Weighted ave. shares outstanding - diluted |  |  | 27,043 |  |  |  | 27,480 |  |  |  | 27,633 |  |  |  | 27,572 |  |  |  | 27,431 |
Selected Segment Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 62,595 |  |  | $ | 64,446 |  |  | $ | 59,279 |  |  | $ | 63,976 |  |  | $ | 250,296 |
Hotels & Resorts |  |  | 44,398 |  |  |  | 53,826 |  |  |  | 60,500 |  |  |  | 54,501 |  |  |  | 213,225 |
Corporate |  |  | 106 |  |  |  | 296 |  |  |  | 151 |  |  |  | 142 |  |  |  | 695 |
Total revenues |  | $ | 107,099 |  |  | $ | 118,568 |  |  | $ | 119,930 |  |  | $ | 118,619 |  |  | $ | 464,216 |
Operating Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 11,841 |  |  | $ | 12,728 |  |  | $ | 10,194 |  |  | $ | 12,648 |  |  | $ | 47,411 |
Hotels & Resorts |  |  | (2,590 | ) |  |  | 6,237 |  |  |  | 9,895 |  |  |  | 945 |  |  |  | 14,487 |
Corporate |  |  | (3,878 | ) |  |  | (3,020 | ) |  |  | (3,490 | ) |  |  | (3,695 | ) |  |  | (14,083 | )
Total operating income |  | $ | 5,373 |  |  | $ | 15,945 |  |  | $ | 16,599 |  |  | $ | 9,898 |  |  | $ | 47,815 |

THE MARCUS CORPORATION

Consolidated Statements of Earnings

Comparative Info - 39 Weeks Ended September 24, 2015 (Unaudited)

|  | 13 Weeks Ended |  |  | 39 Weeks Ended |
(in thousands, except per share data) |  | March 26, |  |  | June 25, |  |  | Sept. 24, |  |  | Sept. 24, |
|  | 2015 |  |  | 2015 |  |  | 2015 |  |  | 2015 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre admissions |  | $ | 42,343 |  |  | $ | 46,047 |  |  | $ | 39,125 |  |  | $ | 127,515 |
Rooms |  |  | 20,686 |  |  |  | 29,448 |  |  |  | 33,641 |  |  |  | 83,775 |
Theatre concessions |  |  | 26,834 |  |  |  | 29,813 |  |  |  | 26,027 |  |  |  | 82,674 |
Food and beverage |  |  | 15,170 |  |  |  | 17,498 |  |  |  | 18,679 |  |  |  | 51,347 |
Other revenues |  |  | 13,674 |  |  |  | 14,972 |  |  |  | 16,422 |  |  |  | 45,068 |
Total revenues |  |  | 118,707 |  |  |  | 137,778 |  |  |  | 133,894 |  |  |  | 390,379 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre operations |  |  | 36,392 |  |  |  | 39,536 |  |  |  | 35,169 |  |  |  | 111,097 |
Rooms |  |  | 9,780 |  |  |  | 11,129 |  |  |  | 11,155 |  |  |  | 32,064 |
Theatre concessions |  |  | 7,071 |  |  |  | 8,281 |  |  |  | 7,700 |  |  |  | 23,052 |
Food and beverage |  |  | 13,376 |  |  |  | 14,459 |  |  |  | 14,612 |  |  |  | 42,447 |
Advertising and marketing |  |  | 5,369 |  |  |  | 5,789 |  |  |  | 6,152 |  |  |  | 17,310 |
Administrative |  |  | 14,241 |  |  |  | 14,572 |  |  |  | 14,011 |  |  |  | 42,824 |
Depreciation and amortization |  |  | 9,838 |  |  |  | 9,970 |  |  |  | 10,452 |  |  |  | 30,260 |
Rent |  |  | 2,154 |  |  |  | 2,154 |  |  |  | 2,209 |  |  |  | 6,517 |
Property taxes |  |  | 4,046 |  |  |  | 3,434 |  |  |  | 3,885 |  |  |  | 11,365 |
Other operating expenses |  |  | 8,623 |  |  |  | 8,336 |  |  |  | 8,848 |  |  |  | 25,807 |
Impairment charge |  |  | 316 |  |  |  | 2,603 |  |  |  | - |  |  |  | 2,919 |
Total costs and expenses |  |  | 111,206 |  |  |  | 120,263 |  |  |  | 114,193 |  |  |  | 345,662 |
Operating income |  |  | 7,501 |  |  |  | 17,515 |  |  |  | 19,701 |  |  |  | 44,717 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income (loss) |  |  | (22 | ) |  |  | 217 |  |  |  | 10 |  |  |  | 205 |
Interest expense |  |  | (2,319 | ) |  |  | (2,356 | ) |  |  | (2,386 | ) |  |  | (7,061 | )
Gain (loss) on disposition of property, equipment and other assets |  |  | (252 | ) |  |  | (495 | ) |  |  | 183 |  |  |  | (564 | )
Equity earnings (losses) from unconsolidated joint ventures, net |  |  | (98 | ) |  |  | (25 | ) |  |  | 2 |  |  |  | (121 | )
|  |  | (2,691 | ) |  |  | (2,659 | ) |  |  | (2,191 | ) |  |  | (7,541 | )
Earnings before income taxes |  |  | 4,810 |  |  |  | 14,856 |  |  |  | 17,510 |  |  |  | 37,176 |
Income taxes |  |  | 1,764 |  |  |  | 5,942 |  |  |  | 6,798 |  |  |  | 14,504 |
Net earnings |  |  | 3,046 |  |  |  | 8,914 |  |  |  | 10,712 |  |  |  | 22,672 |
Net loss attributable to noncontrolling interests |  |  | (191 | ) |  |  | (103 | ) |  |  | (159 | ) |  |  | (453 | )
Net earnings attributable to The Marcus Corporation |  | $ | 3,237 |  |  | $ | 9,017 |  |  | $ | 10,871 |  |  | $ | 23,125 |
Net earnings per common share attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The Marcus Corporation - diluted |  | $ | 0.12 |  |  | $ | 0.32 |  |  | $ | 0.39 |  |  | $ | 0.83 |
Weighted ave. shares outstanding - diluted |  |  | 27,753 |  |  |  | 27,866 |  |  |  | 27,898 |  |  |  | 27,841 |
Selected Segment Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 72,642 |  |  | $ | 79,797 |  |  | $ | 68,919 |  |  | $ | 221,358 |
Hotels & Resorts |  |  | 45,958 |  |  |  | 57,809 |  |  |  | 64,840 |  |  |  | 168,607 |
Corporate |  |  | 107 |  |  |  | 172 |  |  |  | 135 |  |  |  | 414 |
Total revenues |  | $ | 118,707 |  |  | $ | 137,778 |  |  | $ | 133,894 |  |  | $ | 390,379 |
Operating Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 15,129 |  |  | $ | 17,397 |  |  | $ | 12,310 |  |  | $ | 44,836 |
Hotels & Resorts |  |  | (3,605 | ) |  |  | 2,369 |  |  |  | 11,206 |  |  |  | 9,970 |
Corporate |  |  | (4,023 | ) |  |  | (2,251 | ) |  |  | (3,815 | ) |  |  | (10,089 | )
Total operating income |  | $ | 7,501 |  |  | $ | 17,515 |  |  | $ | 19,701 |  |  | $ | 44,717 |