The Marcus (MCS) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 revenue declined 15% year-over-year to $176 million, mainly due to weaker theatre performance and a less robust film slate, while hotels and resorts saw revenue growth but flat operating income due to higher depreciation.

• Net loss for Q2 was $20.2 million, or $0.64 per share, impacted by $13.9–$15 million in debt conversion expense; excluding this, net loss was $5.2 million, or $0.17 per share.

• Adjusted EBITDA for Q2 was $22 million, down from $38.7 million last year, reflecting lower theatre attendance and debt conversion expense.

• Marcus Hotels & Resorts saw strong group demand and near pre-pandemic occupancy, while Marcus Theatres rebounded in June after a slow start due to prior Hollywood strikes.

Financial highlights

• Q2 2024 revenues were $176 million (down from $207 million in Q2 2023); first half revenues were $314.6 million (down from $359.3 million).

• Q2 operating income was $2.2 million (down from $20.8 million); first half operating loss was $14.4 million (down from $11.8 million income last year).

• Hotel and resorts revenue grew 6.3% to $74.5 million in Q2; theatre revenue fell 25.9% to $101.5 million.

• Comparable hotel RevPAR increased 6.5% year-over-year, with occupancy up 4.5 points to 72.7%.

• Theatre attendance dropped 26.3% and admission revenue fell 28.8% year-over-year.

Outlook and guidance

• Group hotel bookings for the remainder of 2024 are running 11% ahead of last year, and 2025 bookings are over 36% ahead.

• Theatres expect a stronger second half of the year as film supply normalizes, with a robust slate for late 2024 and 2025.

• Capital expenditures for 2024 are projected at $60–$75 million, with timing subject to project finalization.

• Effective tax rate for 2024 expected in the 5–10% range, excluding one-time items.