Marcus acquires Movie Tavern, reports quarterly earnings

Feb. 2, 2019

MILWAUKEE — The new year has started with positive momentum for The Marcus Corporation which announced Friday it has completed the acquisition of Movie Tavern, increasing its footprint by 23 percent, and that its fourth quarter earnings were up 5.7 percent.

Milwaukee-based The Marcus Corporation purchased Movie Tavern from VSS-Southern Theatres, LLC, a portfolio company of Veronis Suhler Stevenson, a private equity firm.

The acquisition adds 208 screens at 22 locations in Arkansas, Colorado, Georgia, Kentucky, Louisiana, New York, Pennsylvania, Texas and Virginia for Marcus Theatres, which now owns or operates a total of 1,097 screens at 90 locations in 17 states. The purchase price for the acquisition consisted of $30 million in cash and the issuance of 2,450,000 shares of The Marcus Corporation common stock.

“We are excited to welcome Movie Tavern customers and associates to the Marcus Theatres family. Movie Tavern is an attractive addition to our existing circuit and we are especially pleased to expand our portfolio of intheatre dining locations,” said Rolando B. Rodriguez, chairman, president and CEO of Marcus Theatres, in a statement.

The company plans to brand the locations as “Movie Tavern by Marcus,” according to the announcement.

The fourth quarter was a good one, The Marcus Corporation reported Friday, saying its total revenues for the period were $175 million up 5.7 percent compared to the fourth quarter of 2017.

Theatre admissions revenue growth in line with the industry, after adjusting for new theaters, according to the release.

Net earnings attributable to The Marcus Corporation of $7.8 million to $8.7 million and net earnings per diluted common share attributable to The Marcus Corporation of $0.27 to $0.30. Net earnings attributable to The Marcus Corporation were $34.4 million and net earnings per diluted common share attributable to The Marcus Corporation were $1.21 for the fourth quarter of fiscal 2017. “Fiscal 2018 was another great year for The Marcus Corporation and we expect to report record revenues and operating income,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation, in a statement. “Both Marcus Theatres and Marcus Hotels & Resorts performed very well, contributing to these strong expected results. We expect Marcus Theatres to once again deliver record revenues and operating income for the fourth quarter and full fiscal year.”