-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EtyQimIELCEBJiAr4YYUCKDQhux7TNdvNXqHhRNeVWVPl98Wz5Gad36udUIS4eVY hcLq1rQiOdYyjB5SYluA7g== 0000897069-96-000057.txt : 19960319 0000897069-96-000057.hdr.sgml : 19960319 ACCESSION NUMBER: 0000897069-96-000057 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960201 FILED AS OF DATE: 19960318 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARCUS CORP CENTRAL INDEX KEY: 0000062234 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 391139844 STATE OF INCORPORATION: WI FISCAL YEAR END: 0526 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12604 FILM NUMBER: 96535848 BUSINESS ADDRESS: STREET 1: 250 EAST WISCONSIN AVENUE STREET 2: SUITE 1700 CITY: MILWAUKEE STATE: WI ZIP: 53202-4220 BUSINESS PHONE: 4142726020 MAIL ADDRESS: STREET 1: 250 EAST WISCONSIN AVENUE STREET 2: STE 1700 CITY: MILWAUKEE STATE: WI ZIP: 53202-4220 10-Q 1 THE MARCUS CORPORATION FORM 10-Q 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 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 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 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 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 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 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 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 THE MARCUS CORPORATION FORM 10-Q FOR 36 - WEEKS ENDED FEBRUARY 1, 1996 EXHIBIT INDEX Exhibit Description 27 Financial Data Schedule EX-27 2 THE MARCUS CORPORATION FINANCIAL DATA SCHEDULE
5 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 1 9-MOS MAY-30-1996 MAY-26-1995 FEB-01-1996 12,709,000 0 6,357,000 0 0 26,617,000 533,455,000 145,581,000 427,647,000 50,398,000 107,062,000 0 0 20,387,000 223,917,000 427,647,000 170,591,000 184,631,000 84,241,000 147,045,000 0 0 7,144,000 57,574,000 23,057,000 34,517,000 0 0 0 34,517,000 1.75 1.74
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