Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2021 | Apr. 28, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 1, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-12604 | |
Entity Registrant Name | MARCUS CORP | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1139844 | |
Entity Address, Address Line One | 100 East | |
Entity Address, Address Line Two | Wisconsin Avenue | |
Entity Address, Address Line Three | SuiteĀ 1900 | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53202-4125 | |
City Area Code | 414 | |
Local Phone Number | 905-1000 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | MCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000062234 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,085,259 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,305,639 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 01, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 6,013 | $ 6,745 |
Restricted cash | 6,890 | 7,343 |
Accounts receivable, net of reserves of $1,196 and $1,284, respectively | 6,572 | 6,359 |
Government grants receivable | 4,913 | |
Refundable income taxes | 24,867 | 27,934 |
Assets held for sale | 8,658 | 4,117 |
Other current assets | 10,654 | 10,406 |
Total current assets | 63,654 | 67,817 |
Property and equipment: | ||
Land and improvements | 140,302 | 145,671 |
Buildings and improvements | 759,852 | 759,421 |
Leasehold improvements | 164,000 | 163,879 |
Furniture, fixtures and equipment | 374,734 | 374,253 |
Finance lease right-of-use assets | 75,338 | 75,322 |
Construction in progress | 5,460 | 3,360 |
Total property and equipment | 1,519,686 | 1,521,906 |
Less accumulated depreciation and amortization | 691,446 | 673,578 |
Net property and equipment | 828,240 | 848,328 |
Operating lease right-of-use assets | 227,899 | 229,660 |
Other assets: | ||
Investments in joint ventures | 2,084 | |
Goodwill | 75,165 | 75,188 |
Other | 30,871 | 31,101 |
Total other assets | 106,036 | 108,373 |
TOTAL ASSETS | 1,225,829 | 1,254,178 |
Current liabilities: | ||
Accounts payable | 13,277 | 13,158 |
Taxes other than income taxes | 16,765 | 18,308 |
Accrued compensation | 7,916 | 7,633 |
Other accrued liabilities | 56,344 | 58,154 |
Short-term borrowings | 83,259 | 87,194 |
Current portion of finance lease obligations | 2,731 | 2,783 |
Current portion of operating lease obligations | 18,914 | 19,614 |
Current maturities of long-term debt | 11,361 | 10,548 |
Total current liabilities | 210,567 | 217,392 |
Finance lease obligations | 19,166 | 19,744 |
Operating lease obligations | 228,493 | 230,550 |
Long-term debt | 227,770 | 193,036 |
Deferred income taxes | 20,131 | 33,429 |
Other long-term obligations | 61,847 | 61,304 |
Shareholders' equity attributable to The Marcus Corporation | ||
Preferred Stock, $1 par; authorized 1,000,000 shares; none issued | ||
Capital in excess of par | 138,446 | 153,529 |
Retained earnings | 304,468 | 331,897 |
Accumulated other comprehensive loss | (14,481) | (14,933) |
Stockholders' Equity before Treasury Stock | 459,888 | 501,683 |
Less cost of Common Stock in treasury (63,087 shares at April 1, 2021 and 124,758 shares at December 31, 2020) | (2,033) | (2,960) |
Total shareholders' equity attributable to The Marcus Corporation | 457,855 | 498,723 |
Total equity | 457,855 | 498,723 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,225,829 | 1,254,178 |
Common Stock [Member] | ||
Shareholders' equity attributable to The Marcus Corporation | ||
Common Stock, Value | 24,049 | 23,264 |
Total equity | 24,049 | 23,264 |
Class B Common Stock [Member] | ||
Shareholders' equity attributable to The Marcus Corporation | ||
Common Stock, Value | 7,406 | 7,926 |
Total equity | 7,406 | 7,926 |
Shareholders' Equity Attributable to The Marcus Corporation [Member] | ||
Shareholders' equity attributable to The Marcus Corporation | ||
Total equity | $ 457,855 | $ 498,723 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2021 | Dec. 31, 2020 |
Accounts receivable, reserves | $ 1,196 | $ 1,284 |
Preferred Stock, par (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, authorized | 1,000,000 | 1,000,000 |
Preferred Stock, issued | 0 | 0 |
Cost of Common Stock in treasury, shares | 63,087 | 124,758 |
Common Stock [Member] | ||
Common Stock, par (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized | 50,000,000 | 50,000,000 |
Common Stock, issued | 24,048,531 | 23,264,259 |
Class B Common Stock [Member] | ||
Common Stock, par (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized | 33,000,000 | 33,000,000 |
Common Stock, issued | 7,405,639 | 7,925,254 |
Common Stock, outstanding | 7,405,639 | 7,925,254 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Revenues: | ||
Revenues | $ 47,454 | $ 150,704 |
Cost reimbursements | 3,333 | 8,756 |
Total revenues | 50,787 | 159,460 |
Costs and expenses: | ||
Advertising and marketing | 2,549 | 5,390 |
Administrative | 13,316 | 17,732 |
Depreciation and amortization | 17,979 | 19,033 |
Rent | 6,341 | 6,954 |
Property taxes | 4,739 | 6,029 |
Other operating expenses | 4,790 | 8,707 |
Impairment charges | 8,712 | |
Reimbursed costs | 3,333 | 8,756 |
Total costs and expenses | 86,448 | 181,660 |
Operating loss | (35,661) | (22,200) |
Other income (expense): | ||
Investment income (loss) | 40 | (695) |
Interest expense | (4,843) | (2,516) |
Other expense | (628) | (590) |
Gain (loss) on disposition of property, equipment and other assets | 2,204 | (12) |
Equity losses from unconsolidated joint ventures, net | (57) | |
Nonoperating Income (Expense), Total | (3,227) | (3,870) |
Net loss before income taxes | (38,888) | (26,070) |
Income tax benefit | (10,758) | (6,570) |
Net loss | (28,130) | (19,500) |
Net loss attributable to noncontrolling interests | (148) | |
Net loss attributable to The Marcus Corporation | (28,130) | (19,352) |
Theatre admissions [Member] | ||
Revenues: | ||
Revenue from Contract with Customer, Including Assessed Tax | 10,685 | 55,395 |
Rooms [Member] | ||
Revenues: | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,044 | 16,989 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 5,265 | 9,655 |
Theatre concessions [Member] | ||
Revenues: | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,919 | 45,930 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 4,496 | 22,211 |
Food and beverage [Member] | ||
Revenues: | ||
Revenue from Contract with Customer, Including Assessed Tax | 5,912 | 13,614 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 5,370 | 14,465 |
Other revenues [Member] | ||
Revenues: | ||
Revenue from Contract with Customer, Including Assessed Tax | 11,894 | 18,776 |
Theatre operations [Member] | ||
Costs and expenses: | ||
Cost of Goods and Services Sold | $ 18,270 | $ 54,016 |
Common Stock [Member] | ||
Net loss per share - basic: | ||
Common Stock | $ (0.93) | $ (0.64) |
Net loss per share - diluted: | ||
Common Stock | (0.93) | (0.64) |
Class B Common Stock [Member] | ||
Net loss per share - basic: | ||
Common Stock | (0.80) | (0.58) |
Net loss per share - diluted: | ||
Common Stock | $ (0.80) | $ (0.58) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Consolidated Statements of Comprehensive Income (Loss) | ||
Net loss | $ (28,130) | $ (19,500) |
Other comprehensive income (loss), net of tax: | ||
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect of $86 and $65, respectively | 242 | 183 |
Fair market value adjustment of interest rate swaps, net of tax effect (benefit) of $6 and $(288), respectively | 17 | (814) |
Reclassification adjustment on interest rate swaps included in interest expense, net of tax effect of $68 and $31, respectively | 193 | 84 |
Other comprehensive income (loss) | 452 | (547) |
Comprehensive loss | (27,678) | (20,047) |
Comprehensive loss attributable to noncontrolling interests | (148) | |
Comprehensive loss attributable to The Marcus Corporation | $ (27,678) | $ (19,899) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Consolidated Statements of Comprehensive Income (Loss) | ||
Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect | $ 86 | $ 65 |
Fair market value adjustment of interest rate swap, net of tax benefit | 6 | (288) |
Reclassification adjustment on interest rate swap included in interest expense, net of tax effect | $ 68 | $ 31 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (28,130) | $ (19,500) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Losses on investments in joint ventures | 57 | |
(Gain) loss on disposition of property, equipment and other assets | (2,204) | 12 |
Impairment charges | 8,712 | |
Depreciation and amortization | 17,979 | 19,033 |
Amortization of debt issuance costs | 623 | 49 |
Share-based compensation | 1,484 | 988 |
Deferred income taxes | (10,794) | (2,275) |
Other long-term liabilities | 1,164 | (348) |
Contribution of the Company's stock to savings and profit-sharing plan | 1,012 | 1,315 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (213) | 14,700 |
Government grant receivable | 4,913 | |
Other assets | 23 | 1,408 |
Operating leases | (996) | 2,342 |
Accounts payable | (800) | (22,047) |
Income taxes | 6,010 | (4,522) |
Taxes other than income taxes | (1,543) | (4,769) |
Accrued compensation | 283 | (957) |
Other accrued liabilities | (1,794) | (10,816) |
Total adjustments | 15,147 | 2,882 |
Net cash used in operating activities | (12,983) | (16,618) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (1,525) | (9,978) |
Proceeds from disposals of property, equipment and other assets | 4,308 | 3 |
Other investing activities | (231) | (206) |
Net cash provided by (used in) investing activities | 2,552 | (10,181) |
Debt transactions: | ||
Proceeds from borrowings on revolving credit facility | 36,000 | 188,000 |
Repayment of borrowings on revolving credit facility | (22,000) | (49,000) |
Repayment on short-term borrowings | (4,150) | |
Principal payments on long-term debt | (93) | (177) |
Debt issuance costs | (4) | (414) |
Principal payments on finance lease obligations | (630) | (635) |
Equity transactions: | ||
Treasury stock transactions, except for stock options | (1,169) | (226) |
Exercise of stock options | 1,292 | 45 |
Dividends paid | (5,145) | |
Net cash provided by financing activities | 9,246 | 132,448 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,185) | 105,649 |
Cash, cash equivalents and restricted cash at beginning of period | 14,088 | 25,618 |
Cash, cash equivalents and restricted cash at end of period | 12,903 | 131,267 |
Supplemental Information: | ||
Interest paid, net of amounts capitalized | 5,952 | 2,970 |
Income taxes (paid) refunded | 5,974 | (226) |
Change in accounts payable for additions to property, equipment and other assets | $ 919 | $ (145) |
General
General | 3 Months Ended |
Apr. 01, 2021 | |
General | |
General | 1. General Basis of Presentation Accounting Policies During the 13 weeks ended April 1, 2021, there were no significant changes made to the Companyās significant accounting policies other than the changes attributable to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entityās Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entityās Own Equity. Depreciation and Amortization Assets Held for Sale Long-Lived Assets Goodwill During the 13 weeks ended March 26, 2020 the Company determined that indicators of impairment were present and performed a quantitative test. In order to determine fair value, the Company used assumptions based on information available to it as of the date of the quantitative test, including both market data and forecasted future cash flows (Level 3 pricing inputs). The Company then used this information to determine fair value. During the 13 weeks ended March 26, 2020, the Company determined that the fair value of its goodwill was greater than it carrying value and no impairment was required. There were no indicators of impairment identified during the 13 weeks ended April 1, 2021. Trade Name Intangible Asset Earnings (Loss) Per Share Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of Class B Common Stock. As such, the undistributed earnings (losses) for each period are allocated based on the proportionate share of entitled cash dividends. The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings (loss) per share for net earnings (loss) and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā April 1, 2021 March 26, 2020 ā ā (in thousands, except per share data) Numerator: ā ā Net loss attributable to The Marcus Corporation ā $ (28,130) ā $ (19,352) Denominator: ā ā ā ā ā ā Denominator for basic EPS ā 31,196 ā 30,975 Effect of dilutive employee stock options ā ā ā ā Denominator for diluted EPS ā 31,196 ā 30,975 Net loss per share - basic: ā ā ā ā ā ā Common Stock ā $ (0.93) ā $ (0.64) Class B Common Stock ā $ (0.80) ā $ (0.58) Net loss per share - diluted: ā ā ā ā Common Stock ā $ (0.93) ā $ (0.64) Class B Common Stock ā $ (0.80) ā $ (0.58) ā For the periods when the Company reports a net loss, common stock equivalents are excluded from the computation of diluted loss per share as their inclusion would have an antidilutive effect. Shareholdersā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Shareholdersā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā ā ā Attributable ā ā ā ā ā ā ā ā ā ā ā Class B ā Capital ā ā ā ā Other ā ā ā ā to The ā Non- ā ā ā ā ā Common ā Common ā in Excess ā Retained ā Comprehensive ā Treasury ā Marcus ā controlling ā Total ā ā Stock ā Stock ā of Par ā Earnings ā Loss ā Stock ā Corporation ā Interests ā Equity BALANCES AT DECEMBER 31, 2020 ā $ 23,264 ā $ 7,926 ā $ 153,529 ā $ 331,897 ā $ (14,933) ā $ (2,960) ā $ 498,723 ā $ ā ā $ 498,723 Adoption of ASU No. 2020-06 (see Note 4) ā ā ā ā ā ā ā ā (16,511) ā ā 702 ā ā ā ā ā ā ā ā (15,809) ā ā ā ā ā (15,809) Exercise of stock options ā ā ā ā ā (659) ā ā ā ā ā 1,951 ā 1,292 ā ā ā 1,292 Purchase of treasury stock ā ā ā ā ā ā ā ā ā ā ā (1,181) ā (1,181) ā ā ā (1,181) Savings and profit-sharing contribution ā 44 ā ā ā 968 ā ā ā ā ā ā ā 1,012 ā ā ā 1,012 Reissuance of treasury stock ā ā ā ā ā 2 ā ā ā ā ā 10 ā 12 ā ā ā 12 Issuance of non-vested stock ā 221 ā ā ā (367) ā ā ā ā ā 146 ā ā ā ā ā ā Shared-based compensation ā ā ā ā ā 1,484 ā ā ā ā ā ā ā 1,484 ā ā ā 1,484 Other ā ā ā ā ā ā ā (1) ā ā ā 1 ā ā ā ā ā ā Conversions of Class B Common Stock ā 520 ā (520) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Comprehensive income (loss) ā ā ā ā ā ā ā (28,130) ā 452 ā ā ā (27,678) ā ā ā (27,678) BALANCES AT APRIL 1, 2021 ā $ 24,049 ā $ 7,406 ā $ 138,446 ā $ 304,468 ā $ (14,481) ā $ (2,033) ā $ 457,855 ā $ ā ā $ 457,855 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Shareholdersā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā ā ā Attributable ā ā ā ā ā ā ā ā ā ā ā Class B ā Capital ā ā ā ā Other ā ā ā ā to The ā Non- ā ā ā ā ā Common ā Common ā in Excess ā Retained ā Comprehensive ā Treasury ā Marcus ā controlling ā Total ā ā Stock ā Stock ā of Par ā Earnings ā Loss ā Stock ā Corporation ā Interests ā Equity BALANCES AT DECEMBER 26, 2019 ā $ 23,254 ā $ 7,936 ā $ 145,549 ā $ 461,884 ā $ (12,648) ā $ (4,540) ā $ 621,435 ā $ 23 ā $ 621,458 Cash Dividends: ā ā ā ā ā ā ā ā ā ā $.15 Class B Common Stock ā ā ā ā ā ā ā (1,224) ā ā ā ā ā (1,224) ā ā ā (1,224) $.16 Common Stock ā ā ā ā ā ā ā (3,921) ā ā ā ā ā (3,921) ā ā ā (3,921) Exercise of stock options ā ā ā ā ā 5 ā ā ā ā ā 40 ā 45 ā ā ā 45 Purchase of treasury stock ā ā ā ā ā ā ā ā ā ā ā (274) ā (274) ā ā ā (274) Savings and profit-sharing contribution ā ā ā ā ā 299 ā ā ā ā ā 1,016 ā 1,315 ā ā ā 1,315 Reissuance of treasury stock ā ā ā ā ā 2 ā ā ā ā ā 46 ā 48 ā ā ā 48 Issuance of non-vested stock ā ā ā ā ā (149) ā ā ā ā ā 149 ā ā ā ā ā ā Shared-based compensation ā ā ā ā ā 988 ā ā ā ā ā ā ā 988 ā ā ā 988 Conversions of Class B Common Stock ā 10 ā (10) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Comprehensive loss ā ā ā ā ā ā ā (19,352) ā (547) ā ā ā (19,899) ā (148) ā (20,047) BALANCES AT MARCH 26, 2020 ā $ 23,264 ā $ 7,926 ā $ 146,694 ā $ 437,387 ā $ (13,195) ā $ (3,563) ā $ 598,513 ā $ (125) ā $ 598,388 ā Accumulated Other Comprehensive Loss ā ā ā ā ā ā ā ā ā April 1, December 31, ā ā 2021 ā 2020 ā ā (in thousands) Unrecognized loss on interest rate swap agreements ā $ (876) ā $ (1,086) Net unrecognized actuarial loss for pension obligation ā (13,605) ā (13,847) ā ā $ (14,481) ā $ (14,933) ā Fair Value Measurements The Companyās assets and liabilities measured at fair value are classified in one of the following categories: Level 1 Level 2 Level 3 Defined Benefit Plan ā ā ā ā ā ā ā ā ā ā 13 Weeks ā 13 Weeks ā ā Ended ā Ended ā April 1, 2021 March 26, 2020 ā ā (in thousands) Service cost ā $ 281 ā $ 274 Interest cost ā 300 ā 342 Net amortization of prior service cost and actuarial loss ā 328 ā 248 Net periodic pension cost ā $ 909 ā $ 864 ā Service cost is included in Administrative expense while all other components are recorded within Other expense outside of operating income in the consolidated statements of earnings. Revenue Recognition ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended April 1, 2021 ā Reportable Segment ā ā Theatres Hotels/Resorts Corporate Total Theatre admissions ā $ 10,685 ā $ ā ā $ ā ā $ 10,685 Rooms ā ā ā 9,044 ā ā ā 9,044 Theatre concessions ā 9,919 ā ā ā ā ā 9,919 Food and beverage ā ā ā 5,912 ā ā ā 5,912 Other revenues (1) ā 1,915 ā 9,879 ā 100 ā 11,894 Cost reimbursements ā 43 ā 3,290 ā ā ā 3,333 Total revenues ā $ 22,562 ā $ 28,125 ā $ 100 ā $ 50,787 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended March 26, 2020 ā ā Reportable Segment ā Theatres Hotels/Resorts Corporate Total Theatre admissions ā $ 55,395 ā $ ā ā $ ā ā $ 55,395 Rooms ā ā ā 16,989 ā ā ā 16,989 Theatre concessions ā 45,930 ā ā ā ā ā 45,930 Food and beverage ā ā ā 13,614 ā ā ā 13,614 Other revenues (1) ā 7,703 ā 10,984 ā 89 ā 18,776 Cost reimbursements ā 183 ā 8,573 ā ā ā 8,756 Total revenues ā $ 109,211 ā $ 50,160 ā $ 89 ā $ 159,460 ā (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The Company had deferred revenue from contracts with customers of $38,773,000 and $37,307,000 as of April 1, 2021 and December 31, 2020, respectively. The Company had no contract assets as of April 1, 2021 As of April 1, 2021, the amount of transaction price allocated to the remaining performance obligations under the Companyās advanced ticket sales was $4,579,000 and is reflected in the Companyās consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. The Company recognizes revenue as the tickets are redeemed, which is expected to occur within the next two years. As of April 1, 2021, the amount of transaction price allocated to the remaining performance obligations related to the amount of Hotels and Resorts non-redeemed gift cards was $2,944,000 and is reflected in the Companyās consolidated balance sheet as part of deferred revenues. The Company recognizes revenue as the gift cards are redeemed, which is expected to occur within the next two years. The majority of the Companyās revenue is recognized in less than one year from the original contract. New Accounting Pronouncements ā Income Taxes (Topic 740): Simplifying the Accounting for Incomes Taxes. On January 1, 2021, the Company early adopted ASU No. 2020-06 , Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entityās Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entityās Own Equity In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 3 Months Ended |
Apr. 01, 2021 | |
Impact of COVID-19 Pandemic | |
Impact of COVID-19 Pandemic | 2. Impact of COVID-19 Pandemic The COVID-19 pandemic has had an unprecedented impact on the world and both of the Companyās business segments. The situation continues to be volatile and the social and economic effects are widespread. As an operator of movie theatres, hotels and resorts, restaurants and bars, each of which consists of spaces where customers and guests gather in close proximity, the Companyās businesses are significantly impacted by protective actions that federal, state and local governments have taken to control the spread of the pandemic, and customersā reactions or responses to such actions. These actions have included, among other things, declaring national and state emergencies, encouraging social distancing, restricting freedom of movement and congregation, mandating non-essential business closures, issuing curfews, limiting business capacity, mandating mask-wearing and issuing shelter-in-place, quarantine and stay-at-home orders. The Company began the first quarter of fiscal 2021 with approximately 52% of its theatres open. As state and local restrictions were eased in several of its markets and several new films were released by movie studios, the Company gradually reopened theatres during the 13 weeks ended April 1, 2021 and ended the fiscal 2021 first quarter with approximately 74% of its theatres open. The majority of the Companyās reopened theatres continued to operate with reduced operating days (Fridays, Saturdays, Sundays and Tuesdays) and reduced operating hours during the fiscal 2021 first quarter. All of the reopened theatres operated at significantly reduced attendance levels compared to prior pre-COVID-19 pandemic years due to customer concerns related to the COVID-19 pandemic and a reduction in the number of new films released during the first quarter of fiscal 2021. The Company began the first quarter of fiscal 2021 with all eight of its company-owned hotels and all but one of its managed hotels open. As of the end of the fiscal 2021 first quarter, the Companyās two SafeHouse Ā® Since the COVID-19 crisis began, the Company has been working proactively to preserve cash and enhance liquidity. In fiscal 2020, the Company obtained additional financing and modified previously existing debt covenants (see Note 7 in the Companyās Annual Report on Form 10-K for the year ended December 31, 2020). During the 13 weeks ended April 1, 2021, the Company received the remaining $5,900,000 of requested tax refunds from its fiscal 2019 tax return. During fiscal 2020, a number of states elected to provide grants to certain businesses most impacted by the COVID-19 pandemic, utilizing funds received by the applicable state under provisions of the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the āCARES Actā). The Company received $4,913,000 of these prior year grants during the 13 weeks ended April 1, 2021. Also during the 13 weeks ended April 1, 2021, the Company was awarded and received an additional $1,270,000 in theatre grants from another state. During the first quarter of fiscal 2021, the Company filed income tax refund claims of $24,200,000 related to its fiscal 2020 tax return, with the primary benefit derived from net operating loss carrybacks. Additional income tax loss carryforwards are expected to be generated during fiscal 2021 that will benefit future years. The COVID-19 pandemic and the resulting impact on the Companyās operating performance has affected, and may continue to affect, the estimates and assumptions made by management. Such estimates and assumptions include, among other things, the Companyās goodwill and long-lived asset valuations and the measurement of compensation costs for annual and long-term incentive plans. Events and changes in circumstances arising after April 1, 2021, including those resulting from the impacts of COVID-19, will be reflected in managementās estimates for future periods. The Company believes that the actions that have been taken will allow it to have sufficient liquidity to meet its obligations as they come due and to comply with its debt covenants for at least 12 months from the issuance date of these unaudited consolidated financial statements. However, future compliance with the Companyās debt covenants are dependent upon the timing of new movie releases and the protective actions that federal, state and local governments have taken which impact consumer confidence and the speed of recovery of the Companyās theatres and hotels and resorts businesses. The Companyās estimates and assumptions related to future forecasted results of the Company are subject to inherent risk and uncertainty due to the ongoing impact of the COVID-19 pandemic, and actual results could differ materially from estimated amounts and impact the Companyās ability to comply with its debt covenants. |
Impairment Charges
Impairment Charges | 3 Months Ended |
Apr. 01, 2021 | |
Impairment Charges | |
Impairment Charges | 3. Impairment Charges During the 13 weeks ended March 26, 2020, the Company determined that indicators of impairment were evident at all asset groups. For certain theatre asset groups, the sum of the estimated undiscounted future cash flows attributable to these assets was less than their carrying amount. The Company evaluated the fair value of these assets, consisting primarily of leasehold improvements, furniture, fixtures and equipment, and operating lease right-of-use assets less lease obligations, and determined that the fair value, measured using Level 3 pricing inputs (using estimated discounted cash flows over the life of the primary asset, including estimated sale proceeds) was less than their carrying values and recorded a $6,512,000 impairment loss, reducing certain property and equipment and certain operating lease right-of-use assets. The remaining net book value of the impaired assets was $13,686,000 as of March 26, 2020, excluding any applicable remaining lease obligations. During the 13 weeks ended March 26, 2020, the Company determined that indicators of impairment were evident related to its trade name intangible asset. The Company estimated the fair value of its trade name intangible asset as of March 26, 2020 using an income approach, specifically the relief from royalty method, which uses certain assumptions that are Level 3 pricing inputs, including future revenues attributable to the trade name, a royalty rate (1.0% as of March 26, 2020) and a discount rate (17.0% as of March 26, 2020). During the 13 weeks ended March 26, 2020, the Company determined that the fair value of the asset was less than the carrying value and recorded a $2,200,000 impairment loss. The fair value of the trade name intangible asset was $6,900,000 as of April 1, 2021. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 3 Months Ended |
Apr. 01, 2021 | |
Long-Term Debt and Short-Term Borrowings | |
Long-Term Debt and Short-Term Borrowings | 4. Long-Term Debt and Short-Term Borrowings Long-term debt is summarized as follows: ā ā ā ā ā ā ā ā April 1,2021 December 31, 2020 ā ā (in thousands, except payment data) Mortgage notes ā $ 24,482 ā $ 24,482 Senior notes ā 100,000 ā 100,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39,110, bearing interest ā 1,642 ā 1,735 Convertible senior notes ā ā 100,050 ā ā 100,050 Payroll Protection Program loans ā ā 3,424 ā ā 3,424 Revolving credit agreement ā 14,000 ā ā Debt issuance costs ā (4,467) ā (3,684) ā ā 239,131 ā 226,007 Less current maturities, net of issuance costs ā 11,361 ā 10,548 Less debt discount ā ā ā ā ā 22,423 ā ā $ 227,770 ā $ 193,036 ā Credit Agreement At April 1, 2021, the Company had a revolving credit facility totaling $225,000,000 in place under an existing credit agreement that matures on January 9, 2025. There were borrowings of $14,000,000 outstanding on the revolving credit facility at April 1, 2021, bearing interest at LIBOR plus a margin, effectively 3.35% at April 1, 2021. The revolving credit facility requires an annual facility fee of 0.40% on the total commitment. Availability under the line at April 1, 2021, was $207,199,000, after taking into consideration outstanding letters of credit that reduce revolver availability. The credit agreement also provides for a Senior Term Loan A (the āTerm Loan Aā) that matures September 22, 2021. The $90,800,000 Term Loan A, net of amortized debt issuance costs of $436,000 and prepayments of $7,105,000 made in conjunction with certain asset dispositions, is included in short-term borrowings on the consolidated balance sheet as of April 1, 2021, and bears interest at 3.75%. In connection with the credit agreement: (i) the Company has pledged, subject to certain exceptions, security interests and liens in and on (a) substantially all of its respective personal property assets and (b) certain of its respective real property assets, in each case, to secure the credit agreement and related obligations; and (ii) certain of the Companyās subsidiaries have guaranteed the Companyās obligations under the credit agreement. The foregoing security interests, liens and guaranties will remain in effect until the Collateral Release Date (as defined in the credit agreement). The credit agreement contains customary events of default. If an event of default under the credit agreement occurs and is continuing, then, among other things, the lenders may declare any outstanding obligations under the credit agreement to be immediately due and payable and exercise rights and remedies against the pledged collateral. Convertible Senior Notes During fiscal 2020, the Company entered into a purchase agreement to issue and sell $100,050,000 aggregate principal amount of its 5.00% Convertible Senior Notes due 2025 (the āConvertible Notes.ā) The Convertible Notes were issued pursuant to an indenture (the āIndentureā), dated September 22, 2020, between the Company and U.S. Bank National Association, as trustee. Prior to fiscal 2021, the Company separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Convertible Notes. The difference between the principal amount of the Convertible Notes and the liability component represented the debt discount, which was recorded as a direct deduction from the related debt liability in the consolidated balance sheet. On January 1, 2021, the Company early adopted ASU No. 2020-06, Debt ā Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging ā Contracts in Entityās own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entityās Own Equity. ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā ā ā ā ā ā December 31, ā Cumulative ā Balance at ā 2020 adjustment January 1, 2021 ā ā (in thousands) Long-term debt ā $ 193,036 ā $ 21,393 ā $ 214,429 Deferred income taxes ā 33,429 ā (5,584) ā 27,845 Capital in excess of par ā 153,529 ā (16,511) ā 137,018 Retained earnings ā 331,897 ā 702 ā 332,599 ā Additionally, upon adoption of ASU No. 2020-06, the Company uses the if-converted method when calculating diluted earnings (loss) per share for convertible instruments. The Convertible Notes bear interest from September 22, 2020 at a rate of 5.00% per year. Interest will be payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2021. The Convertible Notes may bear additional interest under specified circumstances relating to the Companyās failure to comply with its reporting obligations under the Indenture or if the Convertible Notes are not freely tradeable as required by the Indenture. The Convertible Notes will mature on September 15, 2025, unless earlier repurchased or converted. Prior to March 15, 2025, the Convertible Notes will be convertible at the option of the holders only under the following circumstances: (i) during any fiscal quarter commencing after the fiscal quarter ending on December 31, 2020 (and only during such fiscal quarter), if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (ii) during the five business day period immediately after any five consecutive trading day period, or the measurement period, in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Common Stock and the conversion rate on each such trading day; or (iii) upon the occurrence of specified corporate events. On or after March 15, 2025, the Convertible Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Convertible Notes may be settled, at the Companyās election, in cash, shares of Common Stock or a combination thereof. The initial conversion rate is 90.8038 shares of Common Stock per $1,000 principal amount of the Convertible Notes (equivalent to an initial conversion price of approximately $11.01 per share of Common Stock), representing an initial conversion premium of approximately 22.5% to the $8.99 last reported sale price of the Common Stock on The New York Stock Exchange on September 17, 2020. If the Company undergoes certain fundamental changes, holders of Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes for a purchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if a make-whole fundamental change occurs prior to the maturity date, the Company will, under certain circumstances, increase the conversion rate for holders who convert Convertible Notes in connection with such make-whole fundamental change. The Company may not redeem the Convertible Notes before maturity and no āsinking fundā is provided for the Convertible Notes. The Indenture includes covenants customary for securities similar to the Convertible Notes, sets forth certain events of default after which the Convertible Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company and certain of its subsidiaries after which the Convertible Notes become automatically due and payable. As of April 2, 2021, the first day of the Companyās second quarter, a conversion feature on the Convertible Notes had been met, and thus the Companyās Convertible Notes are now eligible for conversion. The Company has the ability to settle the conversion in Company stock. As such, the Convertible Notes will continue to be classified as long-term. Future convertibility and resulting balance sheet classification of this liability will be monitored at each quarterly reporting date and will be analyzed dependent upon market prices of the Companyās common stock during the prescribed measurement period. No Convertible Notes have been converted to date and the Company does not expect any to be converted within the next 12 months. Derivatives The Company utilizes derivatives principally to manage market risks and reduce its exposure resulting from fluctuations in interest rates. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. The Company entered into two interest rate swap agreements on March 1, 2018 covering $50,000,000 of floating rate debt. The first agreement has a notional amount of $25,000,000, expired March 1, 2021, and required the Company to pay interest at a defined rate of 2.559% while receiving interest at a defined variable rate of one-month LIBOR. The second agreement has a notional amount of $25,000,000, expires March 1, 2023, and requires the Company to pay interest at a defined rate of 2.687% while receiving interest at a defined variable rate of one-month LIBOR (0.125% at April 1, 2021). The Company recognizes derivatives as either assets or liabilities on the consolidated balance sheets at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. Derivatives that do not qualify for hedge accounting must be adjusted to fair value through earnings. For derivatives that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Companyās interest rate swap agreements are considered effective and qualify as cash flow hedges. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. As of April 1, 2021, the remaining interest rate swap was considered highly effective. The fair value of the interest rate swap on April 1, 2021 was a liability of $1,186,000, which is included in other long-term obligations in the consolidated balance sheet. The fair value of the interest rate swaps on December 31, 2020, was a liability of $1,470,000, of which $100,000 was included in other accrued liabilities and $1,370,000 was included in other long-term obligations in the consolidated balance sheet. The Company does not expect the interest rate swap to have a material effect on earnings within the next 12 months. |
Leases
Leases | 3 Months Ended |
Apr. 01, 2021 | |
Leases | |
Leases | 5. Leases The Company determines if an arrangement is a lease at inception. The Company evaluates each lease for classification as either a finance lease or an operating lease according to accounting guidance ASU No. 2016-02, Leases (Topic 842) The majority of the Companyās lease agreements include fixed rental payments. For those leases with variable payments based on increases in an index subsequent to lease commencement, such payments are recognized as variable lease expense as they occur. Variable lease payments that do not depend on an index or rate, including those that depend on the Companyās performance or use of the underlying asset, are also expensed as incurred. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. ā Total lease cost consists of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks ā 13 Weeks ā ā ā ā ā Ended ā Ended ā Lease Cost Classification April 1, 2021 March 26, 2020 ā ā ā ā ā (in thousands) ā Finance lease costs: ā ā ā ā Amortization of finance lease assets Depreciation and amortization ā $ 712 ā $ 711 ā Interest on lease liabilities Interest expense ā 250 ā 269 ā ā ā ā ā $ 962 ā $ 980 ā Operating lease costs: ā ā ā ā ā ā ā Operating lease costs ā Rent expense ā $ 6,321 ā $ 6,667 Variable lease cost ā Rent expense ā ā (15) ā 227 Short-term lease cost ā Rent expense ā ā 35 ā 60 ā ā ā ā ā $ 6,341 ā $ 6,954 ā Additional information related to leases is as follows: ā ā ā ā ā ā ā ā ā 13 Weeks ā 13 Weeks ā ā Ended ā Ended Other Information April 1, 2021 March 26, 2020 ā ā (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ā ā ā ā Financing cash flows from finance leases ā $ 630 ā $ 635 Operating cash flows from finance leases ā 250 ā ā 269 Operating cash flows from operating leases ā 7,393 ā ā 4,644 ā ā ā ā ā Right of use assets obtained in exchange for new lease obligations: ā ā ā ā Finance lease liabilities ā ā ā ā 25 Operating lease liabilities ā 1,575 ā ā 9,630 ā ā ā ā ā ā ā ā ā April 1, 2021 ā December 31, 2020 ā (in thousands) Finance leases: ā ā ā ā ā ā Property and equipment ā gross ā $ 75,338 ā $ 75,322 Accumulated depreciation and amortization ā ā (56,286) ā ā (55,547) Property and equipment - net ā $ 19,502 ā $ 19,775 ā Remaining lease terms and discount rates are as follows: ā ā ā ā ā ā Lease Term and Discount Rate April 1, 2021 ā December 31, 2020 Weighted-average remaining lease terms: ā ā Finance leases 9 years ā 9 years Operating leases 15 years ā 15 years ā ā ā Weighted-average discount rates: ā Finance leases 4.58% ā 4.62% Operating leases 4.52% ā 4.53% ā Due to the COVID-19 pandemic, the Company temporarily closed all of its theatres on March 17, 2020 and had temporarily closed all of its company-owned hotels by April 8, 2020. At that time, the Company began actively working with landlords to discuss changes to the timing of lease payments and contract terms of leases due to the pandemic. The lease terms were negotiated on a lease-by-lease basis with individual landlords. In conjunction with these lease discussions, the Company obtained lease concessions for the majority of its leases. Substantially all of the lease concessions were for the deferral of lease payments into future periods. This resulted in the total payments required by the modified contract being substantially the same as or less than the total payments required by the original contract. The Company has made the policy election to account for these lease concessions as if they were made under the enforceable rights included in the original agreement and are thus outside of the modification framework. The Company has elected to account for these concessions as if no changes to the lease contract were made and has continued to recognize rent expense during the deferral period. Deferred rent payments of approximately $6,021,000 for the Companyās operating leases have been included in the total operating lease obligations as of April 1, 2021, of which approximately $1,570,000 is included in long-term operating lease obligations. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2021 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The Companyās effective income tax rate, adjusted for losses from noncontrolling interests, for the 13 weeks ended April 1, 2021 and March 26, 2020 was 27.7% and 25.3%, respectively. The Companyās effective income tax rate during the first quarter of fiscal 2021 benefitted from nonrecurring adjustments specific to the first quarter. The Company does not include the income tax expense or benefit related to the net earnings or loss attributable to noncontrolling interest in its income tax expense or benefit as the entity is considered a pass-through entity and, as such, the income tax expense or benefit is attributable to its owner. During the 13 weeks ended April 1, 2021, the Company received the remaining $5,900,000 of requested tax refunds from its fiscal 2019 tax return. Also during the 13 weeks ended April 1, 2021, the Company filed income tax refund claims of $24,200,000 related to its fiscal 2020 tax return, with the primary benefit derived from net operating loss carrybacks. Additional income tax loss carryforwards are expected to be generated during fiscal 2021 that will benefit future years. |
Joint Venture Transactions
Joint Venture Transactions | 3 Months Ended |
Apr. 01, 2021 | |
Joint Venture Transactions | |
Joint Venture Transactions | 7. Joint Venture Transactions During the 13 weeks ended April 1, 2021, pursuant to a recapitalization of a joint venture whose investment value was $0 as of December 31, 2020, the Company surrendered its ownership interest in this equity method investment. Also during the 13 weeks ended April 1, 2021, the Company sold its interest in an equity investment without a readily determinable fair value for $4,150,000 and recorded a gain of $2,079,000, which is included in gain (loss) on disposition of property, equipment and other assets in the consolidated statement of earnings (loss). |
Business Segment Information
Business Segment Information | 3 Months Ended |
Apr. 01, 2021 | |
Business Segment Information | |
Business Segment Information | 8. Business Segment Information The Companyās primary operations are reported in the following business segments: Theatres and Hotels/Resorts. Corporate items include amounts not allocable to the business segments. Corporate revenues consist principally of rent and the corporate operating loss includes general corporate expenses. Corporate information technology costs and accounting shared services costs are allocated to the business segments based upon several factors, including actual usage and segment revenues. Following is a summary of business segment information for the 13 weeks April 1, 2021 and March 26, 2020 (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā ā Hotels/ Corporate ā ā April 1, 2021 ā Theatres ā Resorts ā Items ā Total Revenues ā $ 22,562 ā $ 28,125 ā $ 100 ā $ 50,787 Operating loss ā (25,639) ā (5,708) ā (4,314) ā (35,661) Depreciation and amortization ā 12,786 ā 5,127 ā 66 ā 17,979 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā ā Hotels/ Corporate ā ā March 26, 2020 ā Theatres ā Resorts ā Items ā Total Revenues ā $ 109,211 ā $ 50,160 ā $ 89 ā $ 159,460 Operating loss ā (7,083) ā (10,853) ā (4,264) ā (22,200) Depreciation and amortization ā 13,510 ā 5,412 ā 111 ā 19,033 ā |
General (Policies)
General (Policies) | 3 Months Ended |
Apr. 01, 2021 | |
General | |
Basis of Presentation | Basis of Presentation |
Accounting Policies | Accounting Policies During the 13 weeks ended April 1, 2021, there were no significant changes made to the Companyās significant accounting policies other than the changes attributable to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entityās Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entityās Own Equity. |
Depreciation and Amortization | Depreciation and Amortization |
Assets Held for Sale | Assets Held for Sale |
Long-Lived Assets | Long-Lived Assets |
Goodwill | Goodwill During the 13 weeks ended March 26, 2020 the Company determined that indicators of impairment were present and performed a quantitative test. In order to determine fair value, the Company used assumptions based on information available to it as of the date of the quantitative test, including both market data and forecasted future cash flows (Level 3 pricing inputs). The Company then used this information to determine fair value. During the 13 weeks ended March 26, 2020, the Company determined that the fair value of its goodwill was greater than it carrying value and no impairment was required. There were no indicators of impairment identified during the 13 weeks ended April 1, 2021. |
Trade Name Intangible Asset | Trade Name Intangible Asset |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of Class B Common Stock. As such, the undistributed earnings (losses) for each period are allocated based on the proportionate share of entitled cash dividends. The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings (loss) per share for net earnings (loss) and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā April 1, 2021 March 26, 2020 ā ā (in thousands, except per share data) Numerator: ā ā Net loss attributable to The Marcus Corporation ā $ (28,130) ā $ (19,352) Denominator: ā ā ā ā ā ā Denominator for basic EPS ā 31,196 ā 30,975 Effect of dilutive employee stock options ā ā ā ā Denominator for diluted EPS ā 31,196 ā 30,975 Net loss per share - basic: ā ā ā ā ā ā Common Stock ā $ (0.93) ā $ (0.64) Class B Common Stock ā $ (0.80) ā $ (0.58) Net loss per share - diluted: ā ā ā ā Common Stock ā $ (0.93) ā $ (0.64) Class B Common Stock ā $ (0.80) ā $ (0.58) ā For the periods when the Company reports a net loss, common stock equivalents are excluded from the computation of diluted loss per share as their inclusion would have an antidilutive effect. |
Shareholders' Equity | Shareholdersā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Shareholdersā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā ā ā Attributable ā ā ā ā ā ā ā ā ā ā ā Class B ā Capital ā ā ā ā Other ā ā ā ā to The ā Non- ā ā ā ā ā Common ā Common ā in Excess ā Retained ā Comprehensive ā Treasury ā Marcus ā controlling ā Total ā ā Stock ā Stock ā of Par ā Earnings ā Loss ā Stock ā Corporation ā Interests ā Equity BALANCES AT DECEMBER 31, 2020 ā $ 23,264 ā $ 7,926 ā $ 153,529 ā $ 331,897 ā $ (14,933) ā $ (2,960) ā $ 498,723 ā $ ā ā $ 498,723 Adoption of ASU No. 2020-06 (see Note 4) ā ā ā ā ā ā ā ā (16,511) ā ā 702 ā ā ā ā ā ā ā ā (15,809) ā ā ā ā ā (15,809) Exercise of stock options ā ā ā ā ā (659) ā ā ā ā ā 1,951 ā 1,292 ā ā ā 1,292 Purchase of treasury stock ā ā ā ā ā ā ā ā ā ā ā (1,181) ā (1,181) ā ā ā (1,181) Savings and profit-sharing contribution ā 44 ā ā ā 968 ā ā ā ā ā ā ā 1,012 ā ā ā 1,012 Reissuance of treasury stock ā ā ā ā ā 2 ā ā ā ā ā 10 ā 12 ā ā ā 12 Issuance of non-vested stock ā 221 ā ā ā (367) ā ā ā ā ā 146 ā ā ā ā ā ā Shared-based compensation ā ā ā ā ā 1,484 ā ā ā ā ā ā ā 1,484 ā ā ā 1,484 Other ā ā ā ā ā ā ā (1) ā ā ā 1 ā ā ā ā ā ā Conversions of Class B Common Stock ā 520 ā (520) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Comprehensive income (loss) ā ā ā ā ā ā ā (28,130) ā 452 ā ā ā (27,678) ā ā ā (27,678) BALANCES AT APRIL 1, 2021 ā $ 24,049 ā $ 7,406 ā $ 138,446 ā $ 304,468 ā $ (14,481) ā $ (2,033) ā $ 457,855 ā $ ā ā $ 457,855 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Shareholdersā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā ā ā Attributable ā ā ā ā ā ā ā ā ā ā ā Class B ā Capital ā ā ā ā Other ā ā ā ā to The ā Non- ā ā ā ā ā Common ā Common ā in Excess ā Retained ā Comprehensive ā Treasury ā Marcus ā controlling ā Total ā ā Stock ā Stock ā of Par ā Earnings ā Loss ā Stock ā Corporation ā Interests ā Equity BALANCES AT DECEMBER 26, 2019 ā $ 23,254 ā $ 7,936 ā $ 145,549 ā $ 461,884 ā $ (12,648) ā $ (4,540) ā $ 621,435 ā $ 23 ā $ 621,458 Cash Dividends: ā ā ā ā ā ā ā ā ā ā $.15 Class B Common Stock ā ā ā ā ā ā ā (1,224) ā ā ā ā ā (1,224) ā ā ā (1,224) $.16 Common Stock ā ā ā ā ā ā ā (3,921) ā ā ā ā ā (3,921) ā ā ā (3,921) Exercise of stock options ā ā ā ā ā 5 ā ā ā ā ā 40 ā 45 ā ā ā 45 Purchase of treasury stock ā ā ā ā ā ā ā ā ā ā ā (274) ā (274) ā ā ā (274) Savings and profit-sharing contribution ā ā ā ā ā 299 ā ā ā ā ā 1,016 ā 1,315 ā ā ā 1,315 Reissuance of treasury stock ā ā ā ā ā 2 ā ā ā ā ā 46 ā 48 ā ā ā 48 Issuance of non-vested stock ā ā ā ā ā (149) ā ā ā ā ā 149 ā ā ā ā ā ā Shared-based compensation ā ā ā ā ā 988 ā ā ā ā ā ā ā 988 ā ā ā 988 Conversions of Class B Common Stock ā 10 ā (10) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Comprehensive loss ā ā ā ā ā ā ā (19,352) ā (547) ā ā ā (19,899) ā (148) ā (20,047) BALANCES AT MARCH 26, 2020 ā $ 23,264 ā $ 7,926 ā $ 146,694 ā $ 437,387 ā $ (13,195) ā $ (3,563) ā $ 598,513 ā $ (125) ā $ 598,388 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss ā ā ā ā ā ā ā ā ā April 1, December 31, ā ā 2021 ā 2020 ā ā (in thousands) Unrecognized loss on interest rate swap agreements ā $ (876) ā $ (1,086) Net unrecognized actuarial loss for pension obligation ā (13,605) ā (13,847) ā ā $ (14,481) ā $ (14,933) |
Fair Value Measurements | Fair Value Measurements The Companyās assets and liabilities measured at fair value are classified in one of the following categories: Level 1 Level 2 Level 3 |
Defined Benefit Plan | Defined Benefit Plan ā ā ā ā ā ā ā ā ā ā 13 Weeks ā 13 Weeks ā ā Ended ā Ended ā April 1, 2021 March 26, 2020 ā ā (in thousands) Service cost ā $ 281 ā $ 274 Interest cost ā 300 ā 342 Net amortization of prior service cost and actuarial loss ā 328 ā 248 Net periodic pension cost ā $ 909 ā $ 864 ā Service cost is included in Administrative expense while all other components are recorded within Other expense outside of operating income in the consolidated statements of earnings. |
Revenue Recognition | Revenue Recognition ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended April 1, 2021 ā Reportable Segment ā ā Theatres Hotels/Resorts Corporate Total Theatre admissions ā $ 10,685 ā $ ā ā $ ā ā $ 10,685 Rooms ā ā ā 9,044 ā ā ā 9,044 Theatre concessions ā 9,919 ā ā ā ā ā 9,919 Food and beverage ā ā ā 5,912 ā ā ā 5,912 Other revenues (1) ā 1,915 ā 9,879 ā 100 ā 11,894 Cost reimbursements ā 43 ā 3,290 ā ā ā 3,333 Total revenues ā $ 22,562 ā $ 28,125 ā $ 100 ā $ 50,787 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended March 26, 2020 ā ā Reportable Segment ā Theatres Hotels/Resorts Corporate Total Theatre admissions ā $ 55,395 ā $ ā ā $ ā ā $ 55,395 Rooms ā ā ā 16,989 ā ā ā 16,989 Theatre concessions ā 45,930 ā ā ā ā ā 45,930 Food and beverage ā ā ā 13,614 ā ā ā 13,614 Other revenues (1) ā 7,703 ā 10,984 ā 89 ā 18,776 Cost reimbursements ā 183 ā 8,573 ā ā ā 8,756 Total revenues ā $ 109,211 ā $ 50,160 ā $ 89 ā $ 159,460 ā (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. The Company had deferred revenue from contracts with customers of $38,773,000 and $37,307,000 as of April 1, 2021 and December 31, 2020, respectively. The Company had no contract assets as of April 1, 2021 As of April 1, 2021, the amount of transaction price allocated to the remaining performance obligations under the Companyās advanced ticket sales was $4,579,000 and is reflected in the Companyās consolidated balance sheet as part of deferred revenues, which is included in other accrued liabilities. The Company recognizes revenue as the tickets are redeemed, which is expected to occur within the next two years. As of April 1, 2021, the amount of transaction price allocated to the remaining performance obligations related to the amount of Hotels and Resorts non-redeemed gift cards was $2,944,000 and is reflected in the Companyās consolidated balance sheet as part of deferred revenues. The Company recognizes revenue as the gift cards are redeemed, which is expected to occur within the next two years. The majority of the Companyās revenue is recognized in less than one year from the original contract. |
New Accounting Pronouncements | New Accounting Pronouncements ā Income Taxes (Topic 740): Simplifying the Accounting for Incomes Taxes. On January 1, 2021, the Company early adopted ASU No. 2020-06 , Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entityās Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entityās Own Equity In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. |
General (Tables)
General (Tables) | 3 Months Ended |
Apr. 01, 2021 | |
General | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings (loss) per share for net earnings (loss) and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding: ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā April 1, 2021 March 26, 2020 ā ā (in thousands, except per share data) Numerator: ā ā Net loss attributable to The Marcus Corporation ā $ (28,130) ā $ (19,352) Denominator: ā ā ā ā ā ā Denominator for basic EPS ā 31,196 ā 30,975 Effect of dilutive employee stock options ā ā ā ā Denominator for diluted EPS ā 31,196 ā 30,975 Net loss per share - basic: ā ā ā ā ā ā Common Stock ā $ (0.93) ā $ (0.64) Class B Common Stock ā $ (0.80) ā $ (0.58) Net loss per share - diluted: ā ā ā ā Common Stock ā $ (0.93) ā $ (0.64) Class B Common Stock ā $ (0.80) ā $ (0.58) |
Schedule of Stockholders Equity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Shareholdersā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā ā ā Attributable ā ā ā ā ā ā ā ā ā ā ā Class B ā Capital ā ā ā ā Other ā ā ā ā to The ā Non- ā ā ā ā ā Common ā Common ā in Excess ā Retained ā Comprehensive ā Treasury ā Marcus ā controlling ā Total ā ā Stock ā Stock ā of Par ā Earnings ā Loss ā Stock ā Corporation ā Interests ā Equity BALANCES AT DECEMBER 31, 2020 ā $ 23,264 ā $ 7,926 ā $ 153,529 ā $ 331,897 ā $ (14,933) ā $ (2,960) ā $ 498,723 ā $ ā ā $ 498,723 Adoption of ASU No. 2020-06 (see Note 4) ā ā ā ā ā ā ā ā (16,511) ā ā 702 ā ā ā ā ā ā ā ā (15,809) ā ā ā ā ā (15,809) Exercise of stock options ā ā ā ā ā (659) ā ā ā ā ā 1,951 ā 1,292 ā ā ā 1,292 Purchase of treasury stock ā ā ā ā ā ā ā ā ā ā ā (1,181) ā (1,181) ā ā ā (1,181) Savings and profit-sharing contribution ā 44 ā ā ā 968 ā ā ā ā ā ā ā 1,012 ā ā ā 1,012 Reissuance of treasury stock ā ā ā ā ā 2 ā ā ā ā ā 10 ā 12 ā ā ā 12 Issuance of non-vested stock ā 221 ā ā ā (367) ā ā ā ā ā 146 ā ā ā ā ā ā Shared-based compensation ā ā ā ā ā 1,484 ā ā ā ā ā ā ā 1,484 ā ā ā 1,484 Other ā ā ā ā ā ā ā (1) ā ā ā 1 ā ā ā ā ā ā Conversions of Class B Common Stock ā 520 ā (520) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Comprehensive income (loss) ā ā ā ā ā ā ā (28,130) ā 452 ā ā ā (27,678) ā ā ā (27,678) BALANCES AT APRIL 1, 2021 ā $ 24,049 ā $ 7,406 ā $ 138,446 ā $ 304,468 ā $ (14,481) ā $ (2,033) ā $ 457,855 ā $ ā ā $ 457,855 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Shareholdersā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Equity ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā ā ā Attributable ā ā ā ā ā ā ā ā ā ā ā Class B ā Capital ā ā ā ā Other ā ā ā ā to The ā Non- ā ā ā ā ā Common ā Common ā in Excess ā Retained ā Comprehensive ā Treasury ā Marcus ā controlling ā Total ā ā Stock ā Stock ā of Par ā Earnings ā Loss ā Stock ā Corporation ā Interests ā Equity BALANCES AT DECEMBER 26, 2019 ā $ 23,254 ā $ 7,936 ā $ 145,549 ā $ 461,884 ā $ (12,648) ā $ (4,540) ā $ 621,435 ā $ 23 ā $ 621,458 Cash Dividends: ā ā ā ā ā ā ā ā ā ā $.15 Class B Common Stock ā ā ā ā ā ā ā (1,224) ā ā ā ā ā (1,224) ā ā ā (1,224) $.16 Common Stock ā ā ā ā ā ā ā (3,921) ā ā ā ā ā (3,921) ā ā ā (3,921) Exercise of stock options ā ā ā ā ā 5 ā ā ā ā ā 40 ā 45 ā ā ā 45 Purchase of treasury stock ā ā ā ā ā ā ā ā ā ā ā (274) ā (274) ā ā ā (274) Savings and profit-sharing contribution ā ā ā ā ā 299 ā ā ā ā ā 1,016 ā 1,315 ā ā ā 1,315 Reissuance of treasury stock ā ā ā ā ā 2 ā ā ā ā ā 46 ā 48 ā ā ā 48 Issuance of non-vested stock ā ā ā ā ā (149) ā ā ā ā ā 149 ā ā ā ā ā ā Shared-based compensation ā ā ā ā ā 988 ā ā ā ā ā ā ā 988 ā ā ā 988 Conversions of Class B Common Stock ā 10 ā (10) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Comprehensive loss ā ā ā ā ā ā ā (19,352) ā (547) ā ā ā (19,899) ā (148) ā (20,047) BALANCES AT MARCH 26, 2020 ā $ 23,264 ā $ 7,926 ā $ 146,694 ā $ 437,387 ā $ (13,195) ā $ (3,563) ā $ 598,513 ā $ (125) ā $ 598,388 |
Schedule of Accumulated Other Comprehensive Income (Loss) | ā ā ā ā ā ā ā ā ā April 1, December 31, ā ā 2021 ā 2020 ā ā (in thousands) Unrecognized loss on interest rate swap agreements ā $ (876) ā $ (1,086) Net unrecognized actuarial loss for pension obligation ā (13,605) ā (13,847) ā ā $ (14,481) ā $ (14,933) |
Schedule of Defined Benefit Plan | ā ā ā ā ā ā ā ā ā ā 13 Weeks ā 13 Weeks ā ā Ended ā Ended ā April 1, 2021 March 26, 2020 ā ā (in thousands) Service cost ā $ 281 ā $ 274 Interest cost ā 300 ā 342 Net amortization of prior service cost and actuarial loss ā 328 ā 248 Net periodic pension cost ā $ 909 ā $ 864 |
Schedule of Disaggregation of Revenue | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended April 1, 2021 ā Reportable Segment ā ā Theatres Hotels/Resorts Corporate Total Theatre admissions ā $ 10,685 ā $ ā ā $ ā ā $ 10,685 Rooms ā ā ā 9,044 ā ā ā 9,044 Theatre concessions ā 9,919 ā ā ā ā ā 9,919 Food and beverage ā ā ā 5,912 ā ā ā 5,912 Other revenues (1) ā 1,915 ā 9,879 ā 100 ā 11,894 Cost reimbursements ā 43 ā 3,290 ā ā ā 3,333 Total revenues ā $ 22,562 ā $ 28,125 ā $ 100 ā $ 50,787 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended March 26, 2020 ā ā Reportable Segment ā Theatres Hotels/Resorts Corporate Total Theatre admissions ā $ 55,395 ā $ ā ā $ ā ā $ 55,395 Rooms ā ā ā 16,989 ā ā ā 16,989 Theatre concessions ā 45,930 ā ā ā ā ā 45,930 Food and beverage ā ā ā 13,614 ā ā ā 13,614 Other revenues (1) ā 7,703 ā 10,984 ā 89 ā 18,776 Cost reimbursements ā 183 ā 8,573 ā ā ā 8,756 Total revenues ā $ 109,211 ā $ 50,160 ā $ 89 ā $ 159,460 ā (1) Included in other revenues is an immaterial amount related to rental income that is not considered revenue from contracts with customers. |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 3 Months Ended |
Apr. 01, 2021 | |
Long-Term Debt and Short-Term Borrowings | |
Schedule of Long-term Debt Instruments | Long-term debt is summarized as follows: ā ā ā ā ā ā ā ā April 1,2021 December 31, 2020 ā ā (in thousands, except payment data) Mortgage notes ā $ 24,482 ā $ 24,482 Senior notes ā 100,000 ā 100,000 Unsecured term note due February 2025, with monthly principal and interest payments of $39,110, bearing interest ā 1,642 ā 1,735 Convertible senior notes ā ā 100,050 ā ā 100,050 Payroll Protection Program loans ā ā 3,424 ā ā 3,424 Revolving credit agreement ā 14,000 ā ā Debt issuance costs ā (4,467) ā (3,684) ā ā 239,131 ā 226,007 Less current maturities, net of issuance costs ā 11,361 ā 10,548 Less debt discount ā ā ā ā ā 22,423 ā ā $ 227,770 ā $ 193,036 |
Summary of cumulative effect adjustment upon adoption | ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā ā ā ā ā ā December 31, ā Cumulative ā Balance at ā 2020 adjustment January 1, 2021 ā ā (in thousands) Long-term debt ā $ 193,036 ā $ 21,393 ā $ 214,429 Deferred income taxes ā 33,429 ā (5,584) ā 27,845 Capital in excess of par ā 153,529 ā (16,511) ā 137,018 Retained earnings ā 331,897 ā 702 ā 332,599 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 01, 2021 | |
Leases | |
Schedule of Lease, Cost | Total lease cost consists of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks ā 13 Weeks ā ā ā ā ā Ended ā Ended ā Lease Cost Classification April 1, 2021 March 26, 2020 ā ā ā ā ā (in thousands) ā Finance lease costs: ā ā ā ā Amortization of finance lease assets Depreciation and amortization ā $ 712 ā $ 711 ā Interest on lease liabilities Interest expense ā 250 ā 269 ā ā ā ā ā $ 962 ā $ 980 ā Operating lease costs: ā ā ā ā ā ā ā Operating lease costs ā Rent expense ā $ 6,321 ā $ 6,667 Variable lease cost ā Rent expense ā ā (15) ā 227 Short-term lease cost ā Rent expense ā ā 35 ā 60 ā ā ā ā ā $ 6,341 ā $ 6,954 |
Schedule of Other Information Related to Leases | Additional information related to leases is as follows: ā ā ā ā ā ā ā ā ā 13 Weeks ā 13 Weeks ā ā Ended ā Ended Other Information April 1, 2021 March 26, 2020 ā ā (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ā ā ā ā Financing cash flows from finance leases ā $ 630 ā $ 635 Operating cash flows from finance leases ā 250 ā ā 269 Operating cash flows from operating leases ā 7,393 ā ā 4,644 ā ā ā ā ā Right of use assets obtained in exchange for new lease obligations: ā ā ā ā Finance lease liabilities ā ā ā ā 25 Operating lease liabilities ā 1,575 ā ā 9,630 ā ā ā ā ā ā ā ā ā April 1, 2021 ā December 31, 2020 ā (in thousands) Finance leases: ā ā ā ā ā ā Property and equipment ā gross ā $ 75,338 ā $ 75,322 Accumulated depreciation and amortization ā ā (56,286) ā ā (55,547) Property and equipment - net ā $ 19,502 ā $ 19,775 |
Schedule of Lease Term and Discount Rate | Remaining lease terms and discount rates are as follows: ā ā ā ā ā ā Lease Term and Discount Rate April 1, 2021 ā December 31, 2020 Weighted-average remaining lease terms: ā ā Finance leases 9 years ā 9 years Operating leases 15 years ā 15 years ā ā ā Weighted-average discount rates: ā Finance leases 4.58% ā 4.62% Operating leases 4.52% ā 4.53% ā |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2021 | |
Business Segment Information | |
Schedule of Segment Reporting Information, by Segment | ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā ā Hotels/ Corporate ā ā April 1, 2021 ā Theatres ā Resorts ā Items ā Total Revenues ā $ 22,562 ā $ 28,125 ā $ 100 ā $ 50,787 Operating loss ā (25,639) ā (5,708) ā (4,314) ā (35,661) Depreciation and amortization ā 12,786 ā 5,127 ā 66 ā 17,979 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 13 Weeks Ended ā ā Hotels/ Corporate ā ā March 26, 2020 ā Theatres ā Resorts ā Items ā Total Revenues ā $ 109,211 ā $ 50,160 ā $ 89 ā $ 159,460 Operating loss ā (7,083) ā (10,853) ā (4,264) ā (22,200) Depreciation and amortization ā 13,510 ā 5,412 ā 111 ā 19,033 |
General - Earnings Per Share (D
General - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Numerator: | ||
Net loss attributable to The Marcus Corporation | $ (28,130) | $ (19,352) |
Denominator: | ||
Denominator for basic EPS | 31,196 | 30,975 |
Denominator for diluted EPS | 31,196 | 30,975 |
Common Stock [Member] | ||
Net loss per share - basic: | ||
Common Stock | $ (0.93) | $ (0.64) |
Net loss per share - diluted: | ||
Common Stock | (0.93) | (0.64) |
Class B Common Stock [Member] | ||
Net loss per share - basic: | ||
Common Stock | (0.80) | (0.58) |
Net loss per share - diluted: | ||
Common Stock | $ (0.80) | $ (0.58) |
General - Shareholders' Equity
General - Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Beginning balance | $ 498,723 | $ 621,458 |
Exercise of stock options | 1,292 | 45 |
Purchase of treasury stock | (1,181) | (274) |
Savings and profit-sharing contribution | 1,012 | 1,315 |
Reissuance of treasury stock | 12 | 48 |
Share-based compensation | 1,484 | 988 |
Comprehensive loss | (27,678) | (20,047) |
Ending balance | 457,855 | 598,388 |
Accounting Standards Update 2020-06 [Member] | Cumulative effect period of adoption adjustment | ||
Ending balance | (15,809) | |
Capital in Excess of Par [Member] | ||
Beginning balance | 153,529 | 145,549 |
Exercise of stock options | (659) | 5 |
Savings and profit-sharing contribution | 968 | 299 |
Reissuance of treasury stock | 2 | 2 |
Issuance of non-vested stock | (367) | (149) |
Share-based compensation | 1,484 | 988 |
Ending balance | 138,446 | 146,694 |
Capital in Excess of Par [Member] | Accounting Standards Update 2020-06 [Member] | Cumulative effect period of adoption adjustment | ||
Ending balance | (16,511) | |
Retained Earnings [Member] | ||
Beginning balance | 331,897 | 461,884 |
Other | (1) | |
Comprehensive loss | (28,130) | (19,352) |
Ending balance | 304,468 | 437,387 |
Retained Earnings [Member] | Accounting Standards Update 2020-06 [Member] | Cumulative effect period of adoption adjustment | ||
Ending balance | 702 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Beginning balance | (14,933) | (12,648) |
Comprehensive loss | 452 | (547) |
Ending balance | (14,481) | (13,195) |
Treasury Stock [Member] | ||
Beginning balance | (2,960) | (4,540) |
Exercise of stock options | 1,951 | 40 |
Purchase of treasury stock | (1,181) | (274) |
Savings and profit-sharing contribution | 1,016 | |
Reissuance of treasury stock | 10 | 46 |
Issuance of non-vested stock | 146 | 149 |
Other | 1 | |
Ending balance | (2,033) | (3,563) |
Shareholders' Equity Attributable to The Marcus Corporation [Member] | ||
Beginning balance | 498,723 | 621,435 |
Exercise of stock options | 1,292 | 45 |
Purchase of treasury stock | (1,181) | (274) |
Savings and profit-sharing contribution | 1,012 | 1,315 |
Reissuance of treasury stock | 12 | 48 |
Share-based compensation | 1,484 | 988 |
Comprehensive loss | (27,678) | (19,899) |
Ending balance | 457,855 | 598,513 |
Shareholders' Equity Attributable to The Marcus Corporation [Member] | Accounting Standards Update 2020-06 [Member] | Cumulative effect period of adoption adjustment | ||
Ending balance | (15,809) | |
Non- controlling Interests [Member] | ||
Beginning balance | 0 | 23 |
Comprehensive loss | (148) | |
Ending balance | 0 | (125) |
Common Stock [Member] | ||
Beginning balance | 23,264 | 23,254 |
Cash dividends: | (3,921) | |
Savings and profit-sharing contribution | 44 | |
Issuance of non-vested stock | 221 | |
Conversions of Class B Common Stock | 520 | 10 |
Ending balance | 24,049 | 23,264 |
Common Stock [Member] | Retained Earnings [Member] | ||
Cash dividends: | (3,921) | |
Common Stock [Member] | Shareholders' Equity Attributable to The Marcus Corporation [Member] | ||
Cash dividends: | (3,921) | |
Class B Common Stock [Member] | ||
Beginning balance | 7,926 | 7,936 |
Cash dividends: | (1,224) | |
Conversions of Class B Common Stock | (520) | (10) |
Ending balance | $ 7,406 | 7,926 |
Class B Common Stock [Member] | Retained Earnings [Member] | ||
Cash dividends: | (1,224) | |
Class B Common Stock [Member] | Shareholders' Equity Attributable to The Marcus Corporation [Member] | ||
Cash dividends: | $ (1,224) |
General - Shareholders' Equit_2
General - Shareholders' Equity Parenthetical (Details) | 3 Months Ended |
Mar. 26, 2020$ / shares | |
Class B Common Stock [Member] | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.15 |
Common Stock [Member] | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.16 |
General - Accumulated Other Com
General - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Apr. 01, 2021 | Dec. 31, 2020 |
General | ||
Unrecognized loss on interest rate swap agreements | $ (876) | $ (1,086) |
Net unrecognized actuarial loss for pension obligation | (13,605) | (13,847) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (14,481) | $ (14,933) |
General - Defined Benefit Plan
General - Defined Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
General | ||
Service cost | $ 281 | $ 274 |
Interest cost | 300 | 342 |
Net amortization of prior service cost and actuarial loss | 328 | 248 |
Net periodic pension cost | $ 909 | $ 864 |
General - Revenue Recognition (
General - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Summary of Significant Accounting Policies [Line Items] | ||
Cost reimbursements | $ 3,333 | $ 8,756 |
Total revenues | 50,787 | 159,460 |
Theatre admissions [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 10,685 | 55,395 |
Rooms [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,044 | 16,989 |
Theatre concessions [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,919 | 45,930 |
Food and beverage [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 5,912 | 13,614 |
Other revenues [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 11,894 | 18,776 |
Theatres Segment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Cost reimbursements | 43 | 183 |
Total revenues | 22,562 | 109,211 |
Theatres Segment [Member] | Theatre admissions [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 10,685 | 55,395 |
Theatres Segment [Member] | Theatre concessions [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,919 | 45,930 |
Theatres Segment [Member] | Other revenues [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 1,915 | 7,703 |
Hotels or Resorts [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Cost reimbursements | 3,290 | 8,573 |
Total revenues | 28,125 | 50,160 |
Hotels or Resorts [Member] | Rooms [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,044 | 16,989 |
Hotels or Resorts [Member] | Food and beverage [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 5,912 | 13,614 |
Hotels or Resorts [Member] | Other revenues [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,879 | 10,984 |
Corporate Segment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Total revenues | 100 | 89 |
Corporate Segment [Member] | Other revenues [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 100 | $ 89 |
General - Additional informatio
General - Additional information (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2021 | Mar. 26, 2020 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Line Items] | |||
Depreciation | $ 17,958,000 | $ 19,034,000 | |
Percentage Of Cash Dividends | 110.00% | ||
Deferred Revenue | $ 38,773,000 | $ 37,307,000 | |
Contract assets | 0 | 0 | |
Deferred Revenue, Revenue Recognized | 2,240,000 | 11,240,000 | |
Remaining Performance Obligation Related to Advanced Ticket Sales | 4,579,000 | ||
Remaining Performance Obligation Related to Hotels Gift Cards | 2,944,000 | ||
Trade names | |||
Summary of Significant Accounting Policies [Line Items] | |||
Impairment charge | $ 2,200,000 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Trading Securities, Fair Value Disclosure | $ 1,715,000 | $ 1,415,000 |
Impact of COVID-19 Pandemic (De
Impact of COVID-19 Pandemic (Details) - USD ($) | Dec. 31, 2020 | Apr. 01, 2021 | Apr. 01, 2021 |
Impact of COVID-19 Pandemic | |||
Grants receivable | $ 4,913,000 | ||
Additional grants awarded from another states | $ 1,270,000 | ||
Percentage of theatres open | 52.00% | 74.00% | |
Proceeds from tax refunds | $ 5,900,000 | $ 5,900,000 | |
Grants received | 4,913,000 | ||
Additional theatre grants received | 1,270,000 | ||
Income tax refund claims filled | $ 24,200,000 | $ 24,200,000 |
Impairment Charges - Additional
Impairment Charges - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 26, 2020 | Apr. 01, 2021 | |
Impairment Charge [Line Items] | ||
Impaired Asset Fair Value | $ 13,686,000 | |
Trade names | ||
Impairment Charge [Line Items] | ||
Impaired Asset Fair Value | $ 6,900,000 | |
Royalty rate (as a percent) | 1.00% | |
Discount rate (as a percent) | 17.00% | |
Impairment charge | $ 2,200,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Impairment Charge [Line Items] | ||
Impairment of Fixed Assets | 6,512,000 | |
Fair Value, Inputs, Level 3 [Member] | Trade names | ||
Impairment Charge [Line Items] | ||
Impairment charge | $ 2,200,000 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings (Details) - USD ($) $ in Thousands | Apr. 01, 2021 | Dec. 31, 2020 |
Long-Term Debt and Short-Term Borrowings | ||
Mortgage notes | $ 24,482 | $ 24,482 |
Senior notes | 100,000 | 100,000 |
Unsecured term note due February 2025, with monthly principal and interest payments of $39,110, bearing interest at 5.75% | 1,642 | 1,735 |
Convertible senior notes | 100,050 | 100,050 |
Payroll Protection Program loans | 3,424 | 3,424 |
Revolving credit agreement | 14,000 | |
Debt issuance costs | (4,467) | (3,684) |
Long-term Debt, Total | 239,131 | 226,007 |
Less current maturities, net of issuance costs | 11,361 | 10,548 |
Less debt discount | 22,423 | |
Long-term Debt, Excluding Current Maturities, Total | $ 227,770 | $ 193,036 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Summary of cumulative effect adjustment upon adoption (Details) - USD ($) $ in Thousands | Apr. 01, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Long-term debt | $ 227,770 | $ 193,036 | |
Deferred income taxes | 20,131 | 33,429 | |
Capital in excess of par | 138,446 | 153,529 | |
Retained earnings | $ 304,468 | $ 331,897 | |
Accounting Standards Update 2020-06 [Member] | Cumulative effect period of adoption adjustment | |||
Long-term debt | $ 21,393 | ||
Deferred income taxes | (5,584) | ||
Capital in excess of par | (16,511) | ||
Retained earnings | 702 | ||
Accounting Standards Update 2020-06 [Member] | Balance at January 1, 2021 | |||
Long-term debt | 214,429 | ||
Deferred income taxes | 27,845 | ||
Capital in excess of par | 137,018 | ||
Retained earnings | $ 332,599 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Additional Information (Details) | Apr. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 17, 2020$ / shares | Apr. 01, 2021USD ($) | Sep. 22, 2020 | Mar. 01, 2018USD ($) |
Available facility | $ 207,199,000 | $ 207,199,000 | ||||
Short-term borrowings | 83,259,000 | $ 87,194,000 | 83,259,000 | |||
Debt issuance costs | 4,467,000 | 3,684,000 | 4,467,000 | |||
Principal and interest payments | 39,110 | $ 39,110 | $ 39,110 | |||
Interest Rate of Unsecured Term Note | 5.75% | 5.75% | ||||
Derivative, Amount of Hedged Item | $ 50,000,000 | |||||
Threshold percentage of conversion price on each applicable trading day | 130.00% | |||||
Term Loan A | ||||||
Short-term borrowings | 90,800,000 | $ 90,800,000 | ||||
Debt issuance costs | $ 436,000 | $ 436,000 | ||||
Interest rate (as a percent) | 3.75% | 3.75% | ||||
LIBOR | ||||||
Specified margin (as a percent) | 3.35% | |||||
Convertible Senior Notes due 2025 | ||||||
Face amount | $ 100,050,000 | $ 100,050,000 | $ 100,050,000 | |||
Interest rate (as a percent) | 5.00% | 5.00% | ||||
Threshold percentage of conversion price on each applicable trading day | 98.00% | 98.00% | ||||
Initial conversion rate 90.8038 is shares per $1,000 principal amount | 90.8038 | |||||
Initial conversion price | $ / shares | $ 11.01 | |||||
Initial conversion premium | 22.50% | |||||
Share Price | $ / shares | $ 8.99 | |||||
Purchase price as a percentage of principal amount | 100.00% | |||||
Term Loan A | ||||||
Pre-payment of outstanding borrowings | $ 7,105,000 | |||||
Revolving Credit Facility [Member] | ||||||
Maximum borrowing capacity | 225,000,000 | 225,000,000 | ||||
Borrowing outstanding | 14,000,000 | $ 14,000,000 | ||||
Facility fee on the total commitment (as a percent) | 0.40% | |||||
Interest Rate Swap [Member] | ||||||
Derivative, Notional Amount | $ 25,000,000 | $ 25,000,000 | ||||
Interest Rate Swap [Member] | LIBOR | ||||||
Derivative, Variable Interest Rate | 0.125% | 0.125% | ||||
Interest Rate Swap Agreements One [Member] | ||||||
Derivative, Fixed Interest Rate | 2.559% | 2.559% | 2.559% | |||
Interest Rate Swap Agreements Two [Member] | ||||||
Derivative, Notional Amount | $ 25,000,000 | $ 25,000,000 | ||||
Derivative, Fixed Interest Rate | 2.687% | 2.687% | 2.687% | |||
Fair value of the interest rate swaps, liabilities | $ 1,186,000 | $ 1,470,000 | $ 1,186,000 | |||
Interest Rate Swap Agreements Two [Member] | Other accrued liabilities | ||||||
Fair value of the interest rate swaps, liabilities | 100,000 | |||||
Interest Rate Swap Agreements Two [Member] | Other long-term obligations [Member] | ||||||
Fair value of the interest rate swaps, liabilities | $ 1,186,000 | $ 1,370,000 | $ 1,186,000 |
Leases - Total lease cost (Deta
Leases - Total lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Finance lease costs: | ||
Amortization of finance lease assets | $ 712 | $ 711 |
Interest on lease liabilities | 250 | 269 |
Total finance lease costs | 962 | 980 |
Operating lease costs: | ||
Operating lease costs | 6,321 | 6,667 |
Variable lease cost | (15) | (227) |
Short-term lease cost | 35 | 60 |
Total operating lease costs | $ 6,341 | $ 6,954 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows from finance leases | $ 630 | $ 635 |
Operating cash flows from finance leases | 250 | 269 |
Operating cash flows from operating leases | 7,393 | 4,644 |
Right of use assets obtained in exchange for new lease obligations: | ||
Finance lease liabilities | 25 | |
Operating lease liabilities, including from acquisitions | $ 1,575 | $ 9,630 |
Leases - Finance leases (Detail
Leases - Finance leases (Details) - USD ($) $ in Thousands | Apr. 01, 2021 | Dec. 31, 2020 |
Fixed assets: | ||
Property and equipment - gross | $ 1,519,686 | $ 1,521,906 |
Accumulated depreciation and amortization | (691,446) | (673,578) |
Property and equipment - net | 828,240 | 848,328 |
Finance leases | ||
Fixed assets: | ||
Property and equipment - gross | 75,338 | 75,322 |
Accumulated depreciation and amortization | (56,286) | (55,547) |
Property and equipment - net | $ 19,502 | $ 19,775 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Apr. 01, 2021 | Dec. 31, 2020 |
Weighted-average remaining lease terms: | ||
Finance leases | 9 years | 9 years |
Operating leases | 15 years | 15 years |
Weighted-average discount rates: | ||
Finance leases | 4.58% | 4.62% |
Operating leases | 4.52% | 4.53% |
Leases - Additional Information
Leases - Additional Information (Details) | Apr. 01, 2021USD ($) |
Deferred rent payments under operating lease | $ 6,021,000 |
Long-term operating lease obligations | |
Deferred rent payments under operating lease | $ 1,570,000 |
Minimum [Member] | |
Lease terms (in years) | 1 year |
Maximum [Member] | |
Lease terms (in years) | 45 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2021 | Apr. 01, 2021 | Mar. 26, 2020 | |
Income Taxes | |||
Effective Income Tax Rate, Adjusted For Losses From Noncontrolling Interests | 27.70% | 25.30% | |
Income tax refund claims | $ 24,200,000 | $ 24,200,000 | |
Proceeds from tax refunds | $ 5,900,000 | $ 5,900,000 |
Joint Venture Transactions (Det
Joint Venture Transactions (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2021 | Mar. 26, 2020 | Dec. 31, 2020 | |
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,204,000 | $ (12,000) | |
Joint Venture [Member] | |||
Recapitalization of investment value | $ 0 | ||
Sale of interest in equity investment | 4,150,000 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,079,000 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2021 | Mar. 26, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 50,787 | $ 159,460 |
Operating income (loss) | (35,661) | (22,200) |
Depreciation and amortization | 17,979 | 19,033 |
Theatres [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 22,562 | 109,211 |
Operating income (loss) | (25,639) | (7,083) |
Depreciation and amortization | 12,786 | 13,510 |
Hotels/Resorts [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 28,125 | 50,160 |
Operating income (loss) | (5,708) | (10,853) |
Depreciation and amortization | 5,127 | 5,412 |
Corporate Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 100 | 89 |
Operating income (loss) | (4,314) | (4,264) |
Depreciation and amortization | $ 66 | $ 111 |