FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended February 1, 1996
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________to_______________
Commission file number 1-12604
THE MARCUS CORPORATION
(Exact name of registrant as specified in its charter)
WISCONSIN 39-1139844
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
250 EAST WISCONSIN AVENUE - MILWAUKEE, WISCONSIN 53202
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (414) 272-6020
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934, during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to filing requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
COMMON STOCK OUTSTANDING AT FEBRUARY 1, 1996 - 10,790,885
CLASS B COMMON STOCK OUTSTANDING AT FEBRUARY 1, 1996 - 8,857,025
<PAGE>
THE MARCUS CORPORATION
INDEX
Page
No.
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Balance Sheets
(February 1, 1996 and May 25, 1995) . . . . . . . 3
Statements of Earnings
(Twelve and thirty-six weeks ended February 1,
1996 and February 2, 1995) . . . . . . . . . . . 5
Statements of Cash Flows
(Thirty-six weeks ended February 1, 1996 and
February 2, 1995) . . . . . . . . . . . . . . . . 6
Condensed Notes to Financial Statements . . . . . 7
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial Condition . . 8
PART II - OTHER INFORMATION
Item 6. Exhibits . . . . . . . . . . . . . . . . . . . . 12
Signatures . . . . . . . . . . . . . . . . . . . . . . . . 13
<PAGE>
PART I - Financial Information
Item 1. Financial Statements
THE MARCUS CORPORATION
Consolidated Balance Sheets
February 1, May 25,
ASSETS 1996 1995
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 12,709,000 $ 8,798,000
Accounts and notes receivable 6,357,000 6,166,000
Receivables from joint ventures 3,524,000 1,861,000
Other current assets 4,027,000 4,817,000
----------- -----------
Total current assets 26,617,000 21,642,000
PROPERTY AND EQUIPMENT:
Land and improvements 59,038,000 54,740,000
Buildings and improvements 315,267,000 290,219,000
Leasehold improvements 5,817,000 7,562,000
Furniture, fixtures and equipment 137,058,000 128,035,000
Construction in progress 16,275,000 27,434,000
----------- -----------
Total property and equipment 533,455,000 507,990,000
Less accumulated depreciation and
amortization 145,581,000 133,706,000
----------- -----------
Net property and equipment 387,874,000 374,284,000
OTHER ASSETS:
Investment in and advances to joint
ventures 863,000 629,000
Other 12,293,000 10,527,000
----------- -----------
Total other assets 13,156,000 11,156,000
----------- -----------
TOTAL ASSETS $427,647,000 $407,082,000
=========== ===========
See accompanying notes to consolidated financial statements
<PAGE>
THE MARCUS CORPORATION
Consolidated Balance Sheets
February 1, May 25,
LIABILITIES AND SHAREHOLDERS' EQUITY 1996 1995
(unaudited)
CURRENT LIABILITIES:
Notes payable $ 5,034,000 $ 4,452,000
Accounts payable 17,631,000 17,886,000
Income taxes 3,529,000 2,069,000
Taxes other than income taxes 7,599,000 9,091,000
Accrued compensation 2,531,000 1,458,000
Other accrued liabilities 7,661,000 8,052,000
Current maturities on long-term debt 6,413,000 9,245,000
----------- -----------
Total current liabilities 50,398,000 52,253,000
LONG-TERM DEBT 107,062,000 116,364,000
DEFERRED INCOME TAXES 20,903,000 19,957,000
DEFERRED COMPENSATION AND OTHER 4,980,000 4,044,000
SHAREHOLDERS' EQUITY
Preferred Stock, $1 par; authorized
1,000,000 shares; none issued --- ---
Common Stock, $1 par; authorized
30,000,000 shares; issued 11,529,542
shares at February 1, 1996,
7,522,368 shares at May 25, 1995 11,530,000 7,522,000
Class B Common Stock, $1 par;
authorized 20,000,000 shares;
issued 8,857,025 shares at
February 1, 1996, 6,068,952
shares at May 25, 1995 8,857,000 6,069,000
Capital in excess of par 38,446,000 45,154,000
Retained earnings 189,179,000 159,675,000
----------- -----------
248,012,000 218,420,000
Less cost of treasury stock
Common stock - 738,867 shares
at February 1 and 525,847
shares at May 25, 1995 3,708,000 3,956,000
----------- -----------
Total shareholders' equity 244,304,000 214,464,000
----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $427,647,000 $407,082,000
=========== ===========
See accompanying notes to consolidated financial statements
<PAGE>
THE MARCUS CORPORATION
Consolidated Statements of Earnings
(unaudited)
February 1, 1996 February 2, 1995
12 Weeks 36 Weeks 12 Weeks 36 Weeks
Revenues:
Rooms and $24,827,000 $95,453,000 $22,033,000 $83,206,000
telephone
Theatre 15,549,000 44,439,000 14,004,000 40,670,000
operations
Food and 8,176,000 30,699,000 20,214,000 66,224,000
beverage
Other income 3,425,000 14,040,000 3,007,000 10,458,000
---------- ----------- ---------- -----------
51,977,000 184,631,000 59,258,000 200,558,000
Costs and
Expenses:
Rooms and 11,024,000 34,818,000 9,768,000 30,804,000
telephone
Theatre 9,564,000 26,888,000 8,373,000 24,497,000
operations
Food and 6,615,000 22,535,000 15,728,000 50,461,000
beverage
Advertising and 3,169,000 10,043,000 3,553,000 10,986,000
marketing
Administrative 4,897,000 18,512,000 4,528,000 17,063,000
Depreciation and 5,728,000 17,202,000 5,712,000 16,353,000
amortization
Rent 499,000 2,027,000 1,122,000 4,101,000
Property taxes 2,019,000 6,319,000 1,965,000 6,433,000
Other costs and 2,642,000 8,701,000 2,333,000 5,832,000
expenses ---------- ----------- ---------- -----------
46,157,000 147,045,000 53,082,000 166,530,000
---------- ----------- ---------- -----------
Operating income 5,820,000 37,586,000 6,176,000 34,028,000
Other income(loss)
Investment 680,000 2,353,000 542,000 1,352,000
income
Interest expense (2,211,000) (7,144,000) (2,325,000) (6,379,000)
Gain (loss) on
disposition of
property and
equipment (290,000) 24,779,000 18,000 135,000
---------- ----------- ---------- -----------
Earnings before 3,999,000 57,574,000 4,411,000 29,136,000
income taxes
Income Taxes 1,383,000 23,057,000 1,861,000 11,993,000
---------- ----------- ---------- -----------
Net Earnings $ 2,616,000 $34,517,000 $ 2,550,000 $ 17,143,000
========== ========== ========== ===========
Net Earnings per $0.13 $1.74* $0.13 $0.87
weighted average ----- ----- ----- -----
share of Common
Stock and Class
B Common Stock
Weighted average 19,833,000 19,811,000 19,701,000 19,698,000
shares
outstanding
Dividends per Share
Common Stock -- $0.27 -- $0.23
Class B Common -- $0.24 -- $0.21
Stock
_______________________________
* Includes a one time gain of $0.75, net of tax, on the disposition of
certain restaurant locations.
See accompanying notes to consolidated financial statements
<PAGE>
THE MARCUS CORPORATION
Consolidated Statements of Cash Flows
For the Thirty-Six Weeks Ended February 1, February 2,
(unaudited) 1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 34,517,000 $ 17,143,000
Adjustments to reconcile net earnings
to cash provided by operating
activities:
Earnings on investments in joint
ventures (231,000) (258,000)
Gain on disposition of property and
equipment (24,779,000) (135,000)
Depreciation and amortization 17,202,000 16,353,000
Deferred income taxes 946,000 841,000
Deferred compensation and other 936,000 349,000
Changes in assets and liabilities:
Accounts and notes receivable (1,854,000) 708,000
Other current assets 790,000 (947,000)
Accounts and notes payable 327,000 (517,000)
Income taxes 1,460,000 1,975,000
Taxes other than income taxes (1,492,000) 400,000
Accrued compensation 1,073,000 1,438,000
Other accrued liabilities (391,000) 2,021,000
---------- ----------
Cash provided by operating activities 28,504,000 39,371,000
CASH FLOW FROM INVESTING ACTIVITIES:
Additions to property and equipment (58,665,000) (52,663,000)
Proceeds from dispositions of property
and equipment 52,663,000 830,000
Investments in joint ventures (409,000) (196,000)
(Increase) decrease in other assets (1,766,000) 2,194,000
Cash received from joint ventures 406,000 459,000
---------- ----------
Cash used in investing activities (7,771,000) (46,681,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Debt transactions:
Proceeds from issuance of long-term
debt 9,796,000 14,546,000
Principal payments on long-term debt (21,930,000) (3,619,000)
Equity transactions:
Treasury stock transactions (except
for stock options) (131,000) 2,000
Exercise of stock options 467,000 152,000
Cash dividend paid (5,024,000) (4,239,000)
---------- ----------
Cash provided by (used in) financing
activities (16,822,000) 6,842,000
---------- ----------
CASH AND CASH EQUIVALENTS;
Net increase (decrease) during period 3,911,000 (468,000)
Beginning balance 8,798,000 9,974,000
---------- ----------
Ending balance $ 12,709,000 $ 9,506,000
========== ===========
See accompanying notes to consolidated financial statements
<PAGE>
THE MARCUS CORPORATION
CONDENSED NOTES TO FINANCIAL STATEMENTS FOR THE
TWELVE AND THIRTY-SIX WEEKS ENDED
FEBRUARY 1, 1996
(Unaudited)
A. Refer to the Company's audited financial statements (including
footnotes) for the year ended May 25, 1995, contained in the Company's
Form 10-K Annual Report for such year, for a description of the
Company's accounting policies.
B. The consolidated financial statements for the twelve and thirty-six
weeks ended February 1, 1996 and February 2, 1995, have been prepared
by the Company without audit. In the opinion of management, all
adjustments consisting only of normal recurring accruals necessary to
present fairly the unaudited interim financial information at February
1, 1996, and for all periods presented have been made.
C. Pursuant to an asset purchase agreement dated April 12, 1995, the
Company completed the sale of its 18 existing Applebee's Neighborhood
Grill & Bar restaurants ("Applebee's"), two Applebee's under
construction, five Applebee's under development and its development
rights for Applebee's to Apple South, Inc. (the Purchaser). On June
5, 1995, the Company entered into a management agreement with the
Purchaser, whereby the Purchaser commenced to immediately manage,
operate and assume all of the Company's existing operating and
development responsibilities related to the Company's Applebee's
restaurant operations. The Purchaser received all profits of the
restaurants between June 5, 1995 and June 30, 1995, as reimbursement
for its management service. On June 30, 1995, proceeds from the sale
of approximately $48.3 million were received by the Company in cash.
D. The Company's Board of Directors declared a three-for-two stock split,
effected in the form of a 50% stock dividend, distributed on November
14, 1995, to all holders of Common Stock and Class B Common Stock.
All per share and weighted average shares outstanding data prior to
November 14, 1995 have been adjusted to reflect this dividend.
Item 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition
RESULTS OF OPERATION
General
The Company reports its results of operations on a 52-or 53-week fiscal
year which ends on the last Thursday in May. Each fiscal year is divided
into three 12-week quarters and a final quarter consisting of 16 or 17
weeks. The final quarter of fiscal 1996 will consist of 17 weeks for the
Company and its theatre division, while the Company's remaining divisions
will report a 16-week fourth quarter. The Company and all of its
divisions reported a 52-week year in fiscal 1995.
Revenues for the third quarter of fiscal 1996 ended February 1, 1996
totaled $52.0 million dollars, a decrease of $7.3 million, or 12.3%, from
revenues of $59.3 million for the third quarter of fiscal 1995. For the
first three quarters of fiscal 1996 revenues were $184.6 million, a
decrease of $15.9 million, or 7.9%, from revenues of $200.5 million in the
first three quarters of fiscal 1995. The decline in revenues for both
fiscal 1996 periods from the prior year's comparable periods was
anticipated by the Company and was caused by the Company's June 1995 sale
of its Applebee's restaurants and the Company's disposition through lease
of its 11 Marc's Cafe & Coffee Mill restaurants in February 1995 resulting
in losses of $11.7 million and $35.5 million in restaurant division
revenues for the fiscal 1996 third quarter and first three quarters,
respectively. However, as described below, the loss of revenues from the
disposition of its Applebee's and Marc's Cafe & Coffee Mill restaurants
was partially offset by increased 1996 comparative period revenues in all
of the Company's other divisions.
Net earnings for the third quarter of fiscal 1996 were $2.6 million, a
2.6% increase from net earnings of $2.5 million for the third quarter of
fiscal 1995. Earnings per share were $0.13 for both the third quarter of
fiscal 1996 and 1995. For the first three quarters of fiscal 1996
earnings from operations were $19.7 million, or $0.99 per share, excluding
the after-tax gain of $14.8 million, or $0.75 per share, resulting from
the Company's June 1995 sale of its Applebee's restaurants and related
rights. This represented a respective 15.2% and 13.8% increase from net
earnings of $17.1 million, or $0.87 per share, in the first three quarters
of fiscal 1995. Including the gain from the Applebee's sale, net earnings
were $34.5 million, or $1.74 per share, for the first three quarters of
fiscal 1996. All earnings per share data have been adjusted to reflect
the three-for-two stock split effected in the form of a 50% stock dividend
on November 14, 1995.
Motels
Total revenues for the third quarter of fiscal 1996 for the motel
division were $22.5 million, an increase of $2.1 million, or 10.5%,
compared to $20.4 million in the same period in fiscal 1995. The motel
division's operating income for the fiscal 1996 third quarter totaled $1.1
million, a decrease of $324,000, or 22.9%, from the $1.4 million of
operating income earned by the division in the same period in fiscal 1995.
Total revenues for the first three quarters of fiscal 1996 for the motel
division were $80.9 million, an increase of $9.9 million, or 14.0%,
compared to $71.0 million in the same period in fiscal 1995. The motel
division's operating income for the first three quarters of fiscal 1996
totaled $14.8 million, an increase of $1.8 million, or 14.0%, over the
$13.0 million of operating income earned by the division in the same
period in fiscal 1995.
Compared to the end of the third quarter of fiscal 1995, there were
seven new Company-owned and six new franchised Budgetel Inns in operation
at the end of the fiscal 1996 third quarter. These new facilities
contributed additional revenues of $1.7 million to the division's fiscal
1996 third quarter revenues. However, severe winter weather conditions
throughout the East Coast and the Midwest, as well as the two federal
government shutdowns during the fiscal 1996 third quarter, reduced
occupancy rates at the Company's motels and otherwise adversely affected
fiscal 1996 period operating results. Average daily room rates improved
over the prior year as a result of the implementation of scheduled
selective price increases. At the end of the third quarter, the Company
operated 117 Budgetel Inns, of which 87 were Company-owned and 30 were
franchised, compared to a total of 104 Budgetel Inns at the end of last
year's third quarter (80 Company-owned and 24 franchised). The Company is
continuing to pursue an aggressive expansion program for its Budgetel Inns
and currently plans to open up to an additional six new Company-owned and
one new franchised Budgetel Inns during the remainder of fiscal 1996. The
Company also owns and operates three Woodfield Suite all-suite motels and
is currently developing two additional Woodfield Suites.
Theatres
The theatre division's fiscal 1996 third quarter revenues were $15.6
million, an increase of $1.6 million, or 11.1%, over revenues of $14.0
million in the same period in fiscal 1995. Operating income for the third
quarter during fiscal 1996 was $2.7 million, a decrease of $99,000, or
3.6%, from operating income of $2.8 million in the same prior year period.
The theatre division's revenues for the first three quarters of fiscal
1996 were $44.6 million, an increase of $3.7 million, or 9.1%, over
revenues of $40.9 million in the same period in fiscal 1995. Operating
income for the first three quarters of fiscal 1996 was $8.2 million, an
increase of $510,000, or 6.6%, over $7.7 million in the same prior year
period. In November, the division opened a new ten-plex theatre in Orland
Park, Illinois and construction is underway on a new 20-screen theatre in
Addison, Illinois and two eight-plexes in Appleton and New Berlin,
Wisconsin. Plans are also underway to construct a new six-screen addition
to the Company's fourteen-plex Gurnee Mills, Illinois complex. Once
completed, both the Addison and Gurnee Mills 20-plexes will be the Chicago
area's and the Company's largest movie theatre complexes.
The Thanksgiving through New Year's Day period is traditionally a
strong period for movie exhibitors, including the Company's theatre
division. Total box office receipts for the first three quarters of
fiscal 1996 were $31.3 million, an increase of $2.2 million, or 7.6%, from
$29.1 million in the same period in the prior year. Box office receipts
increased for the first three quarters of fiscal 1996 compared to the
prior year's first three quarters due to the operation of new theatres in
Delafield, Green Bay and Orland Park and new screen additions in Racine
and Sheboygan, together with a 6.2% increase in average ticket prices and
a 10.5% increase in vending revenues per person. Five screens were closed
from the end of last year's third quarter, resulting in a nominal loss of
revenues and improved operating income. The Company operated 219 total
screens during the third quarter of fiscal 1996 compared to 197 during
last year's third quarter. Despite the severe winter weather in the
Midwest which limited theatre attendance during the fiscal 1996 third
quarter, the Company's additional screens in operation allowed overall
theatre attendance to increase by 1.2% during the first three quarters of
1996 compared to the fiscal 1995 first three quarters. Theatre attendance
is largely dependent upon the audience appeal of available films, a factor
over which the Company has limited control. Operating income for the
fiscal 1996 third quarter was adversely affected by substantially higher
snow removal costs.
Hotels and Resorts
Total revenues of the hotels and resorts division during the third
quarter of fiscal 1996 increased by $926,000, or 12.2%, to $8.5 million,
compared to $7.6 million in the previous year's comparable period.
Operating losses totalled $2.8 million in the fiscal 1996 third quarter
compared to an operating loss of $2.5 million in the prior fiscal year's
third quarter. Total revenues from the hotels and resorts division during
the first three quarters of fiscal 1996 increased by $6.4 million, or
19.1%, to $40.0 million, from $33.6 million in the previous year's
comparable period. Operating income increased by $1.2 million in the
first three quarters of fiscal 1996, or 255%, to $1.7 million, compared to
$474,000 in the prior fiscal year's first three quarters.
Increased occupancy at the Grand Geneva Resort & Spa, together with the
revenue from having the restored and renovated Milwaukee Hilton (formerly
the Marc Plaza) open for the entire 1996 three quarter period and the
impact of increased average daily room rates at all three of the Company's
owned hotels, were the primary reasons for the division's increased
revenues in the fiscal 1996 periods compared to the prior year's periods.
However, the amortization of the Hilton's preopening costs, together with
the effects on occupancy of the adverse winter weather, all negatively
impacted the division's operating results for both 1996 periods and, in
particular, the third quarter.
Restaurants
Restaurant division revenues totaled $5.2 million for the fiscal 1996
third quarter, a decrease of $12.0 million, or 69.8%, from $17.1 million
in the same period in fiscal 1995. The division's operating loss for the
fiscal 1996 third quarter improved to $364,000, compared to an operating
loss of $423,000 in the third quarter of the prior year. Restaurant
division revenues totaled $18.5 million for the first three quarters of
fiscal 1996, a decrease of $36.1 million, or 66.2%, from $54.6 million in
the same period in fiscal 1995. The division's operating loss in the
first three quarters of fiscal 1996 was $1.1 million, compared to
operating income of $493,000 in the first three quarters of fiscal 1995.
The decreased revenues in both fiscal 1996 periods were virtually all due
to the disposition or closure of 36 restaurants since February 1995, as
well as decreased revenues in the fiscal 1996 periods recognized by the
Company's KFC restaurants. The decline in operating results for the first
three quarters of fiscal 1996 was due primarily to the sale of the
Company's profitable Applebee's restaurants.
The Company's KFC restaurants experienced a 4.7% decrease in revenues,
but a 275% increase in operating income, during the fiscal 1996 third
quarter compared to the prior year's third quarter. For the first three
quarters of fiscal 1996, the Company's KFC restaurants experienced a 4.0%
decrease in revenues and a 37.8% decrease in operating income compared to
the same fiscal 1995 period. The decreased revenue between comparative
periods was the result of the loss of $814,000 in revenues during the
first three quarters of fiscal 1996 from the closure of four
underperforming KFC restaurants that had a combined operating loss of
$135,000 for the comparable 1995 period. The Company will open a new KFC
restaurant during the fourth quarter of fiscal 1996. Guest counts
increased 2.0% at same-store KFCs during the first three quarters of
fiscal 1996 compared to the first three quarters of fiscal 1995, although
average check amounts decreased slightly because of promotions for certain
lower cost menu items. Fiscal 1996 results were affected adversely by
higher chicken costs, although the Company believes that chicken costs may
be stabilizing at lower levels.
FINANCIAL CONDITION
The Company's lodging, movie theatre and restaurant businesses each
generate significant and consistent daily amounts of cash because each
segment's revenue is derived predominantly from consumer cash purchases.
The Company believes that these consistent and predictable cash sources,
together with the availability to the Company of $35.2 million in unused
credit lines at the end of the third quarter, should be adequate to
support the ongoing operational liquidity needs of the Company's
businesses. Since the end of the fiscal 1996 third quarter, the Company
increased its borrowing capacity by an additional $10.0 million under its
bank revolving credit lines.
Despite substantially increased net earnings in the first three
quarters of fiscal 1996 compared to the prior year's period, net cash
provided by operating activities decreased by $10.9 million during the
first three quarters of fiscal 1996 to $28.5 million, compared to $39.4
million in the prior year's first three quarters. The primary cause of
this decrease was the result of $25.0 million of the Company's net
earnings for the first nine months of fiscal 1996 being attributable to
non-operating activities (i.e., principally the sale by the Company of its
Applebee's restaurants and related rights), partially offset by increases
in non-cash expense items, a decrease in accounts and notes payable caused
by timing differences in payments to vendors and increased income tax
expense related to the gain on disposition of property and equipment.
As a result of receiving $52.7 million in net cash proceeds from the
disposition of property and equipment, including particularly the sale of
its Applebee's restaurants and related rights, net cash used by the
Company in investing activities was $7.8 million during the first three
quarters of fiscal 1996, compared to a net use of $46.7 million in the
fiscal 1995 first three quarters. Capital expenditures to support the
Company's continuing expansion program totalled $58.7 million in the first
three quarters of fiscal 1996 compared to $50.0 million in the prior
year's first three quarters. The Company's most significant capital
expenditures during the third quarter were for the expansion of the motel
and theatre divisions.
Net cash used in financing activities was $16.8 million in the first
three quarters of fiscal 1996, compared to $6.8 million of net cash
provided by financing activities in the first three quarters of fiscal
1995. During the first three quarters of fiscal 1996, the Company paid
$21.9 million of principal payments on long-term debt (as a result of its
receipt of cash from its Applebee's sale), compared to $3.6 million in the
prior year's first three quarters, and made dividend payments of $5.0
million during the fiscal 1996 three quarter period compared to $4.2
million during the prior year's first three quarters. The Company issued
$9.8 million of new debt during the fiscal 1996 first three quarters
compared to $14.5 million of new debt issued in the first three quarters
of fiscal 1995.
The Company's continuing expansion plans are being funded from cash
generated from operations, the funds received by the Company from the
prior sale of its Applebee's restaurants and other facilities, and
additional bank debt. The actual timing and extent of the implementation
of the Company's current expansion plans will depend in large part on
continuing favorable industry and general economic conditions, the
competitive environment, evolving customer needs and trends and the
availability of attractive opportunities. It is likely that the Company's
current expansion goals will continue to evolve and change in response to
these and other factors.
The Company currently has one interest rate swap agreement in the
notional amount of $15.0 million. This agreement is not material to the
Company's financial condition.
PART II - OTHER INFORMATION
Item 6. Exhibits
Exhibit 27 - Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
THE MARCUS CORPORATION
(Registrant)
DATE: March 15, 1996 By: \s\ Stephen H. Marcus
Stephen H. Marcus,
Chairman of the Board, President
and Chief Executive Officer
DATE: March 15, 1996 By: \s\ Kenneth A. MacKenzie
Kenneth A. MacKenzie
Chief Financial Officer and
Treasurer
<PAGE>
THE MARCUS CORPORATION
FORM 10-Q
FOR
36 - WEEKS ENDED FEBRUARY 1, 1996
EXHIBIT INDEX
Exhibit Description
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF THE MARCUS CORPORATION AS OF AND FOR THE
PERIOD ENDED FEBRUARY 1, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-30-1996
<PERIOD-START> MAY-26-1995
<PERIOD-END> FEB-01-1996
<CASH> 12,709,000
<SECURITIES> 0
<RECEIVABLES> 6,357,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 26,617,000
<PP&E> 533,455,000
<DEPRECIATION> 145,581,000
<TOTAL-ASSETS> 427,647,000
<CURRENT-LIABILITIES> 50,398,000
<BONDS> 107,062,000
0
0
<COMMON> 20,387,000
<OTHER-SE> 223,917,000
<TOTAL-LIABILITY-AND-EQUITY> 427,647,000
<SALES> 170,591,000
<TOTAL-REVENUES> 184,631,000
<CGS> 84,241,000
<TOTAL-COSTS> 147,045,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,144,000
<INCOME-PRETAX> 57,574,000
<INCOME-TAX> 23,057,000
<INCOME-CONTINUING> 34,517,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 34,517,000
<EPS-PRIMARY> 1.75
<EPS-DILUTED> 1.74
</TABLE>
