EX-99.2 3 v432571_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

Change in Fiscal Year End February 24, 2016

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) changed 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 its associates to better manage their workload. 3

Transitioning Fiscal Year End from May to December • On February 24, 2016, the company reported its results for the 31 - week transition period from May 29, 2015 to December 31, 2015 ( the “Transition Period”), consisting of two 13 - week periods ended on August 27, 2015 and November 26, 2015 and a final 5 - week period ended on December 31, 2015. • Results from the T ransition P eriod will be compared to a 30 - week period from May 30, 2014 to December 25, 2014, consisting of two 13 - week periods ended on August 28, 2014 and November 27, 2014 and a final 4 - week period ended 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 T ransition P eriod benefited from an additional 31 st week of operations compared to the prior year 30 - week period. This additional week included the traditionally strong week for movie theatres between Christmas and New Year’s Eve. • The company estimates that the 31 st week during the Transition Period contributed approximately $17.4 million in revenues ($14.4 million - Theatres, $3.0 million - Hotels) and $6.2 million in operating income ($5.7 million – Theatres, $0.7 million – Hotels, $(0.2) million - Corporate) to its reported financial results. • After interest expense and income taxes, the company estimates that the 31 st week of operations during the Transition Period contributed approximately $3.6 million to net earnings, or $ 0.13 per diluted common share .

Comparative Financial Information 6 • The company has prepared the following unaudited financial information to assist investors in evaluating the impact the change in fiscal year may have on its future quarterly and annual operating results : – Consolidated Statements of Earnings for the 52 weeks Ended December 25, 2014, including applicable interim periods and selected segment information. – Consolidated Statements of Earnings for the 53 weeks Ended December 31, 2015, including applicable interim periods and selected segment information. • Actual results for the comparable periods in fiscal 2016 could differ materially from those experienced in the prior year periods and reflected in the above - described unaudited historical financial information. – The recast 14 - week 4 th quarter of the 2015 period included the benefits of the extra week described earlier. The 4 th quarter of fiscal 2016 will be a 13 - week period ending on December 29, 2016 (New Year’s Eve results will not be included in our fiscal 2016). – The recast 13 - week 1 st quarter of the 2015 period included the week between Christmas and New Year’s Eve because the 2014 period ended on December 25, 2014. As a result, comparisons of the 13 - week fiscal 2016 1 st quarter to the unaudited recast 13 - week 1 st quarter of 2015 will likely be negatively impacted by the fact that the fiscal 2016 period will not include the strong week between Christmas and New Year’s Eve.

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 |  |  | 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 (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 - 53 Weeks Ended December 31, 2015 (Unaudited)

|  | 13 Weeks Ended |  |  | 14 Weeks Ended |  |  | 53 Weeks Ended |
(in thousands, except per share data) |  | March 26, |  |  | June 25, |  |  | Sept. 24, |  |  | Dec. 31, |  |  | Dec. 31, |
|  | 2015 |  |  | 2015 |  |  | 2015 |  |  | 2015 |  |  | 2015 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre admissions |  | $ | 42,343 |  |  | $ | 46,047 |  |  | $ | 39,125 |  |  | $ | 48,736 |  |  | $ | 176,251 |
Rooms |  |  | 20,686 |  |  |  | 29,448 |  |  |  | 33,641 |  |  |  | 26,082 |  |  |  | 109,857 |
Theatre concessions |  |  | 26,834 |  |  |  | 29,813 |  |  |  | 26,027 |  |  |  | 32,407 |  |  |  | 115,081 |
Food and beverage |  |  | 15,170 |  |  |  | 17,498 |  |  |  | 18,679 |  |  |  | 19,681 |  |  |  | 71,028 |
Other revenues |  |  | 13,674 |  |  |  | 14,972 |  |  |  | 16,422 |  |  |  | 14,409 |  |  |  | 59,477 |
Total revenues |  |  | 118,707 |  |  |  | 137,778 |  |  |  | 133,894 |  |  |  | 141,315 |  |  |  | 531,694 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatre operations |  |  | 36,392 |  |  |  | 39,536 |  |  |  | 35,169 |  |  |  | 42,515 |  |  |  | 153,612 |
Rooms |  |  | 9,780 |  |  |  | 11,129 |  |  |  | 11,155 |  |  |  | 10,344 |  |  |  | 42,408 |
Theatre concessions |  |  | 7,071 |  |  |  | 8,281 |  |  |  | 7,700 |  |  |  | 9,227 |  |  |  | 32,279 |
Food and beverage |  |  | 13,376 |  |  |  | 14,459 |  |  |  | 14,612 |  |  |  | 15,322 |  |  |  | 57,769 |
Advertising and marketing |  |  | 5,369 |  |  |  | 5,789 |  |  |  | 6,152 |  |  |  | 6,619 |  |  |  | 23,929 |
Administrative |  |  | 14,241 |  |  |  | 14,572 |  |  |  | 14,011 |  |  |  | 17,786 |  |  |  | 60,610 |
Depreciation and amortization |  |  | 9,838 |  |  |  | 9,970 |  |  |  | 10,452 |  |  |  | 10,212 |  |  |  | 40,472 |
Rent |  |  | 2,154 |  |  |  | 2,154 |  |  |  | 2,209 |  |  |  | 2,105 |  |  |  | 8,622 |
Property taxes |  |  | 4,046 |  |  |  | 3,434 |  |  |  | 3,885 |  |  |  | 3,511 |  |  |  | 14,876 |
Other operating expenses |  |  | 8,623 |  |  |  | 8,336 |  |  |  | 8,848 |  |  |  | 7,808 |  |  |  | 33,615 |
Impairment charge |  |  | 316 |  |  |  | 2,603 |  |  |  | - |  |  |  | - |  |  |  | 2,919 |
Total costs and expenses |  |  | 111,206 |  |  |  | 120,263 |  |  |  | 114,193 |  |  |  | 125,449 |  |  |  | 471,111 |
Operating income |  |  | 7,501 |  |  |  | 17,515 |  |  |  | 19,701 |  |  |  | 15,866 |  |  |  | 60,583 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income (loss) |  |  | (22 | ) |  |  | 217 |  |  |  | 10 |  |  |  | 4 |  |  |  | 209 |
Interest expense |  |  | (2,319 | ) |  |  | (2,356 | ) |  |  | (2,386 | ) |  |  | (2,534 | ) |  |  | (9,595 | )
Gain (loss) on disposition of property, equipment and other assets |  |  | (252 | ) |  |  | (495 | ) |  |  | 183 |  |  |  | (669 | ) |  |  | (1,233 | )
Equity earnings (losses) from unconsolidated joint ventures, net |  |  | (98 | ) |  |  | (25 | ) |  |  | 2 |  |  |  | (39 | ) |  |  | (160 | )
|  |  | (2,691 | ) |  |  | (2,659 | ) |  |  | (2,191 | ) |  |  | (3,238 | ) |  |  | (10,779 | )
Earnings before income taxes |  |  | 4,810 |  |  |  | 14,856 |  |  |  | 17,510 |  |  |  | 12,628 |  |  |  | 49,804 |
Income taxes |  |  | 1,764 |  |  |  | 5,942 |  |  |  | 6,798 |  |  |  | 4,911 |  |  |  | 19,415 |
Net earnings |  |  | 3,046 |  |  |  | 8,914 |  |  |  | 10,712 |  |  |  | 7,717 |  |  |  | 30,389 |
Net earnings (loss) attributable to noncontrolling interests |  |  | (191 | ) |  |  | (103 | ) |  |  | (159 | ) |  |  | 60 |  |  |  | (393 | )
Net earnings attributable to The Marcus Corporation |  | $ | 3,237 |  |  | $ | 9,017 |  |  | $ | 10,871 |  |  | $ | 7,657 |  |  | $ | 30,782 |
Net earnings per common share attributable to The Marcus Corporation - diluted |  | $ | 0.12 |  |  | $ | 0.32 |  |  | $ | 0.39 |  |  | $ | 0.27 |  |  | $ | 1.10 |
Weighted ave. shares outstanding - diluted |  |  | 27,753 |  |  |  | 27,866 |  |  |  | 27,898 |  |  |  | 27,957 |  |  |  | 27,924 |
Selected Segment Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 72,642 |  |  | $ | 79,797 |  |  | $ | 68,919 |  |  | $ | 85,293 |  |  | $ | 306,651 |
Hotels & Resorts |  |  | 45,958 |  |  |  | 57,809 |  |  |  | 64,840 |  |  |  | 55,848 |  |  |  | 224,455 |
Corporate |  |  | 107 |  |  |  | 172 |  |  |  | 135 |  |  |  | 174 |  |  |  | 588 |
Total revenues |  | $ | 118,707 |  |  | $ | 137,778 |  |  | $ | 133,894 |  |  | $ | 141,315 |  |  | $ | 531,694 |
Operating Income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Theatres |  | $ | 15,129 |  |  | $ | 17,397 |  |  | $ | 12,310 |  |  | $ | 18,073 |  |  | $ | 62,909 |
Hotels & Resorts |  |  | (3,605 | ) |  |  | 2,369 |  |  |  | 11,206 |  |  |  | 2,827 |  |  |  | 12,797 |
Corporate |  |  | (4,023 | ) |  |  | (2,251 | ) |  |  | (3,815 | ) |  |  | (5,034 | ) |  |  | (15,123 | )
Total operating income |  | $ | 7,501 |  |  | $ | 17,515 |  |  | $ | 19,701 |  |  | $ | 15,866 |  |  | $ | 60,583 |