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 6, 1997
[] 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 MARCH 17, 1997 - 10,899,193
CLASS B COMMON STOCK OUTSTANDING AT MARCH 17, 1997 - 8,808,632
<PAGE>
THE MARCUS CORPORATION
INDEX
Page
No.
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Balance Sheets
(February 6, 1997 and May 30, 1996) . . . 3
Statements of Earnings
(Twelve and thirty-six weeks ended
February 6, 1997 and February 1, 1996) . . 5
Statements of Cash Flows
(Thirty-six weeks ended
February 6, 1997 and February 1, 1996) . . 6
Condensed Notes to Financial Statements . 7
Item 2. Management's Discussion and Analysis of
Financial Condition and
Results of Operations . . . . . . . . . . 8
PART II - OTHER INFORMATION
Item 6. Exhibits . . . . . . . . . . . . . . . . . 13
Signatures . . . . . . . . . . . . . . . . . . 14
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
THE MARCUS CORPORATION
Consolidated Balance Sheets
(in thousands)
(Unaudited) (Audited)
Feb. 6 May 30,
1997 1996
ASSETS
Current Assets:
Cash and cash equivalents $ 20,966 $ 15,466
Accounts and notes receivable 6,934 8,780
Receivables from joint ventures 426 4,890
Other current assets 3,541 2,463
-------- --------
Total current assets 31,867 31,599
Property and equipment:
Land and improvements 66,513 60,177
Buildings and improvements 389,124 329,458
Leasehold improvements 7,991 5,688
Furniture, fixtures and equipment 152,479 137,305
Construction in progress 12,235 22,336
-------- --------
Total property and equipment 628,342 554,964
Less accumulated depreciation
and amortization 157,760 143,401
-------- --------
Net property and equipment 470,582 411,563
Other assets:
Investments in joint ventures 1,158 1,295
Other 13,317 10,858
-------- --------
Total other assets 14,475 12,153
-------- --------
TOTAL ASSETS $516,924 $455,315
-------- --------
See accompanying notes to consolidated financial statements.
<PAGE>
THE MARCUS CORPORATION
Consolidated Balance Sheets
(in thousands)
(Unaudited) (Audited)
Feb. 6, May 30,
1997 1996
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 4,517 $ 5,555
Accounts payable 8,620 15,646
Income taxes 5,582 1,393
Taxes other than income taxes 7,805 8,323
Accrued compensation 2,624 1,380
Other accrued liabilities 11,664 9,352
Current maturities on long-term debt 12,120 9,069
-------- --------
Total current liabilities 52,932 50,718
Long-term debt 167,680 127,135
Deferred income taxes 20,211 20,027
Deferred compensation and other 5,458 6,187
Shareholders' equity:
Preferred Stock, $1 par; authorized
1,000,000 shares; none issued
Common Stock, $1 par; authorized
30,000,000 shares; issued
11,577,435 shares at
February 6, 1997, 11,529,962
shares at May 30, 1996 11,577 11,530
Class B Common Stock, $1 par;
authorized 20,000,000 shares;
issued and outstanding 8,809,132
at February 6, 1997, 8,856,605
at May 30, 1996 8,809 8,857
Capital in excess of par 38,953 38,832
Retained earnings 214,938 195,643
-------- --------
274,277 254,862
Less cost of Common Stock in treasury
(709,241 shares at February 6, 1997
and 718,352 shares at May 30, 1996) 3,634 3,614
-------- --------
Total shareholders' equity 270,643 251,248
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $516,924 $455,315
-------- --------
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
THE MARCUS CORPORATION
Consolidated Statements of Earnings (Unaudited)
<CAPTION>
(in thousands, except per share and share data)
February 6, 1997 February 1, 1996
12 weeks 36 weeks 12 Weeks 36 Weeks
<S> <C> <C> <C> <C>
Revenues:
Rooms and telephone $ 28,577 $105,727 $ 24,827 $ 95,453
Food and beverage 9,440 31,987 8,176 30,699
Theatre operations 21,207 53,571 15,549 44,439
Other income 3,982 14,573 3,296 12,786
--------- --------- --------- --------
Total revenues 63,206 205,858 51,848 183,377
Costs and expenses:
Rooms and telephone 12,687 39,068 11,024 34,818
Food and beverage 7,398 23,222 6,615 22,535
Theatre operations 13,188 33,340 9,564 26,888
Advertising and marketing 4,298 13,404 3,169 10,043
Administrative 5,585 17,713 4,806 17,870
Depreciation and amortization 6,740 19,608 5,728 17,202
Rent 536 1,842 499 2,027
Property taxes 1,771 6,861 2,019 6,319
Other operating expenses 2,258 7,150 2,642 8,701
--------- --------- --------- ---------
Total costs and expenses 54,461 162,208 46,066 146,403
--------- --------- --------- ---------
Operating income 8,745 43,650 5,782 36,974
Other income (expense):
Investment income 487 924 370 1,690
Interest expense (3,025) (7,693) (1,878) (6,113)
Gain (loss) on disposition of
property and equipment (8) 11 (275) 25,023
---------- ---------- --------- --------
(2,546) (6,758) (1,783) 20,600
---------- ---------- --------- --------
Earnings before income taxes 6,199 36,892 3,999 57,574
Income taxes 2,484 14,767 1,383 23,057
--------- --------- --------- --------
Net earnings $ 3,715 $ 22,125 $ 2,616 $ 34,517
--------- --------- --------- --------
Net earnings per share:*
Earnings excluding gain on
restaurant sale $ 0.19 $ 1.11 $ 0.13 $ 0.99
After-tax gain on restaurant
sale 0.75
---------
Net earnings per share $ 0.19 $ 1.11 $ 0.13 $ 1.74
--------- --------- --------- ---------
Weighted Average Shares
Outstanding * 19,855,000 19,811,000
* All per share and weighted average shares outstanding data has been adjusted to reflect the 50% stock dividend distributed
on November 14, 1995.
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
THE MARCUS CORPORATION
Consolidated Statements of Cash Flows (Unaudited)
(in thousand)s
36 Weeks Ended
Feb. 6, Feb. 1,
1997 1996
OPERATING ACTIVITIES:
Net earnings $22,125 $34,517
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Earnings on investments in
joint ventures, net of distributions 137 (231)
Gain on disposition of property
and equipment (11) (25,023)
Depreciation and amortization 19,608 17,202
Deferred income taxes 184 946
Deferred compensation and other (729) 936
Changes in assets and liabilities:
Accounts and notes receivable 1,846 (1,854)
Other current assets (1,078) 790
Accounts payable (7,026) 327
Income taxes 4,189 1,460
Taxes other than income taxes (518) (1,492)
Accrued compensation 1,244 1,073
Other accrued liabilities 2,312 (391)
-------- --------
Total adjustments 20,158 (6,257)
-------- --------
Net cash provided by operating
activities 42,283 28,260
INVESTING ACTIVITIES:
Capital expenditures (80,386) (58,665)
Net proceeds from disposals of
property, equipment and
other assets 1,770 52,907
Purchase of interest in joint
ventures, net of cash acquired -- (409)
Increase in other assets (2,459) (1,766)
Cash received from joint ventures 4,464 406
-------- --------
Net cash used in investing activities (76,611) (7,527)
FINANCING ACTIVITIES:
Debt transactions:
Net proceeds from issuance of
notes payable and long-term debt 98,053 9,796
Principal payments on notes
payable and long-term debt (55,495) (21,930)
Equity transactions:
Treasury stock transactions,
except for stock options (55) (131)
Exercise of stock options 155 467
Dividends paid (2,830) (5,024)
-------- --------
Net cash provided by (used in)
financing activities 39,828 (16,822)
-------- --------
Net increase in cash and
cash equivalents 5,500 3,911
Cash and cash equivalents at
beginning of year 15,466 8,798
-------- --------
Cash and cash equivalents at
end of period $20,966 $12,709
-------- -------
See accompanying notes to consolidated financial statements.
<PAGE>
THE MARCUS CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE
TWELVE AND THIRTY-SIX WEEKS ENDED
FEBRUARY 6, 1997
(Unaudited)
A. Refer to the Company's audited financial statements (including
footnotes) for the year ended May 30, 1996, 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 6, 1997 and February 1, 1996 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 6, 1997, 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.
E. Certain items in the accompanying fiscal 1996 financial statements
have been reclassified to conform to the fiscal 1997 presentation.
THE MARCUS CORPORATION
Item 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition
Special Note Regarding Forward-Looking Statements
Certain matters discussed in this Management's Discussion and
Analysis of Results of Operations and Financial Condition are "forward-
looking statements" intended to qualify for the safe harbors from
liability established by the Private Securities Litigation Reform Act of
1995. These forward-looking statements can generally be identified as
such because the context of the statement will include words such as the
company "believes," "anticipates," "expects" or words of similar import.
Similarly, statements that describe the Company's future plans, objectives
or goals are also forward-looking statements. Such forward looking
statements are subject to certain risks, assumptions and uncertainties
which are described in close proximity to such statements and which could
cause actual results to differ materially from those currently
anticipated. Shareholders, potential investors and other readers are
urged to consider these risks, assumptions and uncertainties carefully in
evaluating the forward-looking statements and are cautioned not to place
undue reliance on such forward-looking statements. The forward-looking
statements made herein are only made as of the date of this Form 10-Q and
the Company undertakes no obligation to publicly update such forward-
looking statements to reflect subsequent events or circumstances.
RESULTS OF OPERATIONS
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 1997 will consist of 17 weeks
for the Company's motel and hotels/resorts divisions, while the Company
and its other remaining divisions will report a 16-week fourth quarter.
Fiscal 1996 was a 53-week fiscal year for the Company and its theatre
division, while the Company's remaining divisions reported a 52-week year
in fiscal 1996.
Revenues for the third quarter of fiscal 1997 ended February 6, 1997,
totaled $63.2 million, an increase of $11.4 million, or 21.9%, from
revenues of $51.8 million for the third quarter of fiscal 1996. For the
first three quarters of fiscal 1997, revenues were $205.9 million, an
increase of $22.5 million, or 12.3%, from revenues of $183.4 million
during the first three quarters of fiscal 1996. All four operating
segments contributed to the increase in revenues for the fiscal 1997 third
quarter.
Net earnings for the third quarter of fiscal 1997 were $3.7 million,
or $.19 per share, up 42.0% and 46.2%, respectively, from net earnings of
$2.6 million, or $.13 per share, for the same quarter in the prior year.
For the first three quarters of fiscal 1997, net earnings were $22.1
million, or $1.11 per share. This represented a 12.3% and 12.1% increase,
respectively, over comparable earnings of $19.7 million, or $.99 per
share, for the first three quarters of fiscal 1996. Including the after-
tax gain of $14.8 million, or $.75 per share, resulting from the Company's
sale of its Applebee's restaurants and related rights in June 1995 and
other restaurant divestitures, net earnings for fiscal 1996's first three
quarters were $34.5 million, or $1.74 per share.
Operating income (earnings before other income/expense and income
taxes) totaled $8.7 million in the third quarter of fiscal 1997, an
increase of $3.0 million, or 51.2%, compared to the prior year same
period. For the first three quarters of fiscal 1997, operating income was
$43.7 million, an increase of $6.7 million, or 18.1%, over operating
income of $37.0 million for the first three quarters of fiscal 1996.
Other expense increased $763,000 to $2.5 million during the third quarter
of fiscal 1997 compared to $1.8 million during the same period last year
due to increased interest expense. The Company had higher long-term debt
levels during fiscal 1997 third quarter compared to the same period last
year, pursuant to the Company's strategy to "lock-in" favorable long-term
interest rates. The Company's debt-to-capitalization ratio remains very
low at 39.9% at the end of the fiscal 1997 third quarter, compared to
35.2% at the same time last year.
Motels
Total revenues for the third quarter of fiscal 1997 for the motel
division were $25.3 million, an increase of $2.8 million, or 12.4%,
compared to $22.5 million during the same period in fiscal 1996. Total
revenues for the first three quarters of fiscal 1997 for the motel
division were $89.7 million, an increase of $8.8 million, or 10.9%,
compared to $80.9 million in the first three quarters of fiscal 1996. The
motel division's operating income for the fiscal 1997 third quarter
totaled $5.6 million, an increase of $900,000, or 19.5%, from the $4.7
million earned by the division during the same period of fiscal 1996. The
motel division's operating income for the first three quarters of fiscal
1997 totaled $27.4 million, an increase of $2.1 million, or 8.1%, over the
$25.3 million earned by the division in the same period of fiscal 1996.
Compared to the end of the third quarter of fiscal 1996, there were
12 new Company-owned or operated Budgetel Inns and five new franchised
Budgetel Inns in operation at the end of the fiscal 1997 third quarter.
The Company's newly opened motels contributed additional revenues of $2.0
million to the division's fiscal 1997 third quarter revenues. Occupancy
rates remained firm during the third quarter of fiscal 1997 compared to
the same period last year. Average daily room rates at the Company's
continuing motels increased slightly compared to last year's same quarter.
The Company believes that increased industry segment room supply in
certain markets continues to contribute to the unchanged occupancy and
relatively low rate increases. Operating income increased this quarter
primarily due to improved operating efficiencies, as operating income as a
percentage of revenues increased to 22.1% compared to 20.8% for the same
period last year.
At the end of the fiscal 1997 third quarter, the Company owned or
operated 99 Budgetel Inns and franchised an additional 35 Inns, bringing
the total number of Budgetel Inns in operation to 134. In addition, there
are currently 16 Company-owned or franchised Budgetel Inns under
construction, all of which are scheduled to open before the end of fiscal
1997 or shortly thereafter. The Company also owns and operates four
Woodfield Suites all-suite motels, including a new location in Cincinnati,
Ohio that opened at the end of the third quarter of fiscal 1997, and plans
to open a fifth location in Madison, Wisconsin in early fiscal 1998. The
Company recently announced its goal of increasing the number of Woodfield
Suites in operation to 40 to 50 properties within the next five years.
The Company expects the increase to be achieved through new company-owned
units, acquisitions and the introduction of a franchise program.
Theatres
The theatre division's fiscal 1997 third quarter revenues were $21.4
million, an increase of $5.8 million, or 37.4%, over revenues of $15.6
million in the same period in fiscal 1996. Operating income for the third
quarter in fiscal 1997 totaled $4.9 million, an increase of $1.4 million,
or 38.0%, over operating income of $3.5 million during the same period
last year. The Thanksgiving through New Year's Day period is
traditionally a strong period for movie exhibitors, including the
Company's theatre division. The theatre division's fiscal 1997 first three
quarters revenues were $53.9 million, an increase of $9.3 million, or
21.0%, over revenues of $44.6 million during the first three quarters of
fiscal 1996. Operating income for the first three quarters of fiscal 1997
was $10.7 million, an increase of $200,000, or 1.9%, from $10.5 million of
operating income during the first three quarters of fiscal 1996. Year-to-
date operating income has been reduced by over $400,000 of pre-opening
expenses related to new screens and the Company's few family entertainment
center, Funset Boulevard.
The Company has added 74 new screens during the first three quarters
of fiscal 1997, ending the third quarter with a total of 291 screens
compared to 219 at the end of the same period last year. Two screens were
closed during the third quarter of fiscal 1997, resulting in a nominal
loss of revenues and operating income. The Company opened its largest
complex, a 20-screen ultraplex in Addison, Illinois, on the first day of
the third quarter of fiscal 1997 and added seven screens to existing
theatres during the quarter. In addition, the Company currently has six
additional screens under construction at its Gurnee, Illinois, theatre,
making it a 20-screen complex.
Total box office receipts for the first three quarters of fiscal 1997
were $36.7 million, an increase of $5.4 million, or 17.4%, over $31.3
million during the same period last year. The increase in box office
receipts for the first three quarters of fiscal 1997 compared to the same
period in the prior year was primarily due to the additional new screens,
together with a 5.0% increase in first-run theatre average ticket prices
and a 4.7% increase in concession revenues per person. Theatre attendance
at comparable screens increased during the third quarter of fiscal 1997
compared to the same period last year due to strong film offerings during
the period and severe winter weather during last year's third quarter.
Theatre attendance is largely dependent upon the audience appeal of
available films, a factor over which the Company has limited control.
Hotels and Resorts
Total revenues from the hotels and resorts division during the third
quarter of fiscal 1997 increased by $2.2 million, or 27.0%, to $10.7
million, compared to $8.5 million during the previous year's comparable
period. Operating losses totaled $1.2 million during the fiscal 1997
third quarter, compared to operating losses of $2.4 million during the
third quarter of fiscal 1996, an improvement of $1.2 million, or 51.6%.
Consistent with the seasonality of group and convention business in the
Midwest, the third quarter of the Company's fiscal year is typically the
slowest period for its hotel and resorts division. Total revenues from the
hotels and resorts division during the first three quarters of fiscal 1997
totaled $43.2 million, an increase of $4.0 million, or 10.3%, over total
first three quarters revenues of $39.2 million during fiscal 1996.
Operating income increased by $3.2 million during the first three quarters
of fiscal 1997, or 110.9%, to $6.1 million, compared to $2.9 million
during the prior year's first three quarters.
Higher average room rates and stable or increased occupancies at the
Company's hotels contributed to the revenue and operating income increases
during the fiscal 1997 periods compared to the prior year's periods. The
division's fiscal 1997 third quarter and fiscal year-to-date results also
benefitted from reduced charges for pre-opening costs for the Milwaukee
Hilton (formerly the Marc Plaza) and increased management fees from
properties managed but not owned by the hotels and resorts division.
Restaurants
Restaurant division revenues totaled $5.6 million for the third
quarter of fiscal 1997, an increase of $400,000, or 8.4%, over fiscal 1996
third quarter revenues of $5.2 million. The division's operating income
for the fiscal 1997 third quarter totaled $442,000, an increase of
$237,000, or 115.6%, over operating income of $205,000 during the third
quarter of fiscal 1996. Restaurant division revenues totaled $18.7
million for the first three quarters of fiscal 1997, an increase of
$550,000, or 3.0%, over the first three quarters fiscal 1996 revenues of
$18.1 million. Excluding $1.1 million of revenues from subsequently sold
or closed restaurants from fiscal 1996 revenues, first three quarters
fiscal 1997 revenues increased 9.4% over the prior year. The division's
operating income for the first three quarters of fiscal 1997 totaled $1.8
million, an increase of $1.2 million, or 198.1%, over fiscal 1996 first
three quarters operating income of $600,000.
The increases in revenues and operating income for both the third
quarter and first three quarters of fiscal 1997, compared to the same
prior periods, were primarily the result of recent successful KFC product
introductions and increased sales from KFC's home delivery program,
combined with reduced administrative costs related to the disposition of
Applebee's and other restaurant properties last year. Same store KFC
revenues for the third quarter of fiscal 1997 compared to the prior year's
third quarter were up 7.5%, with guest counts at same store KFC's up 2.1%
and average guest check amounts up 5.3%. The Company has plans to convert
and open its first 2-in-1 KFC/Taco Bell restaurant in the first quarter of
fiscal 1998.
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 $80 million of 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.
Net cash provided by operating activities increased by $14.0 million
during the first three quarters of fiscal 1997 to $42.3 million, compared
to $28.3 million during the prior year's first three quarters. The
increase over the same period last year was primarily the result of
approximately $10 million of income taxes incurred on the gain on the sale
of restaurants in fiscal 1996, combined with increased net earnings before
the restaurant gain. Timing differences in receipts of accounts and notes
receivable and payment of accounts payable, accrued liabilities and income
taxes contributed to the increase in net cash provided by operating
activities as well.
Net cash used in investing activities during the first three quarters
of fiscal 1997 totaled $76.6 million, compared to $7.5 million during the
first three quarters of fiscal 1996. The significant increase in net cash
used in investing activities was primarily due to last year's receipt of
$48.3 million in net cash proceeds from the June 1995 sale of its
Applebee's restaurants and related rights. In addition, capital
expenditures to support the Company's continuing expansion program totaled
$80.4 million during the first three quarters of fiscal 1997 compared to
$58.7 million during the prior year's first three quarters.
Cash provided by financing activities during the first three quarters
of fiscal 1997 totaled $39.8 million, compared to cash used in financing
activities of $16.8 million during the first three quarters of fiscal
1996. During the first three quarters of fiscal 1997, the Company
received $98.1 million of net proceeds from the issuance of notes payable
and long-term debt, compared to $9.8 million during the same period last
year. The relatively small amount of debt proceeds in fiscal 1996 was due
to the Company's use of cash proceeds from its Applebee's sale to fund
expansion during that time period. Included in the fiscal 1997 proceeds
was $85 million in principal amount of senior unsecured long-term notes
issued in a private placement to six institutional lenders. The Company
has the ability to issue up to $115 million of additional senior notes
under the private placement program over the next 27 months. The Company
used a portion of the proceeds from the senior notes to pay off existing
debt, resulting in total principal payments on notes payable and long-term
debt of $55.5 million during the first three quarters of fiscal 1997,
compared to only $21.9 million during the same period last year. The
Company expects to use the remaining proceeds to help fund the Company's
ongoing expansion plans.
In addition to the changes in debt transactions noted above, net cash
provided by financing activities also increased due to dividend payments
of only $2.8 million during the first three quarters of fiscal 1997
compared to $5.0 million during the first three quarters of fiscal 1996.
The reduction in dividend payments for the period was the result of a one-
time timing difference between the Company's quarterly dividend payments
during fiscal 1997 compared to the annual dividend payment made during
fiscal 1996. Total fiscal 1997 dividend payments are expected to exceed
fiscal 1996 dividend payments.
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.
<PAGE>
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 21, 1997 By: \s\ Stephen H. Marcus
Stephen H. Marcus,
Chairman of the Board, President
and Chief Executive Officer
DATE: March 21, 1997 By: \s\ Douglas A. Neis
Douglas A. Neis
Chief Financial Officer, Treasurer
and Controller
<PAGE>
THE MARCUS CORPORATION
FORM 10-Q
FOR
36 - WEEKS ENDED FEBRUARY 6, 1997
EXHIBIT INDEX
Exhibit Description
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCUS
COPORATION'S FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-29-1997
<PERIOD-START> MAY-31-1996
<PERIOD-END> FEB-06-1997
<CASH> 20,966
<SECURITIES> 0
<RECEIVABLES> 6,934
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 31,867
<PP&E> 628,342
<DEPRECIATION> 157,760
<TOTAL-ASSETS> 516,924
<CURRENT-LIABILITIES> 52,932
<BONDS> 167,680
0
0
<COMMON> 20,386
<OTHER-SE> 250,257
<TOTAL-LIABILITY-AND-EQUITY> 516,924
<SALES> 191,285
<TOTAL-REVENUES> 205,858
<CGS> 95,630
<TOTAL-COSTS> 162,208
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,693
<INCOME-PRETAX> 36,892
<INCOME-TAX> 14,767
<INCOME-CONTINUING> 22,125
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,125
<EPS-PRIMARY> 1.11
<EPS-DILUTED> 1.11
</TABLE>
