ANNUAL SHAREHOLDERS MEETING. May 4, 2017

Transcription

1 ANNUAL SHAREHOLDERS MEETING May 4, 2017

2 Gregory S. Marcus President and CEO, The Marcus Corporation

3 Thomas F. Kissinger Senior Executive Vice President, General Counsel and Secretary, The Marcus Corporation

4 Douglas A. Neis Chief Financial Officer and Treasurer, The Marcus Corporation

5 Rolando B. Rodriguez Executive Vice President, The Marcus Corporation Chairman, President and CEO, Marcus Theatres

6 Joseph S. Khairallah President and Chief Operating Officer, Marcus Hotels & Resorts

7 Kim M. Lueck Chief Information Officer, The Marcus Corporation

8 John E. Murray Vice President of Human Resources, The Marcus Corporation

9 William H. Reynolds, Jr. Senior Managing Director, MCS Capital LLC

10 Business Meeting

11 Board of Directors

12 President and CEO, The Marcus Corporation Gregory S. Marcus

13 Diane Marcus Gershowitz Real Estate Management and Investments

14 Retired Chairman, President & CEO, Midwest Air Group, Inc. Timothy E. Hoeksema

15 Allan H. (Bud) Selig Commissioner Emeritus, Major League Baseball

16 Bruce J. Olson Retired Senior Vice President, The Marcus Corporation Retired President, Marcus Theatres

17 Philip L. Milstein Principal, Ogden CAP Properties, LLC

18 Bronson J. Haase Lead Director Retired President, Pabst Farms Equity Ventures, LLC Retired President & CEO, Wisconsin Gas Company Retired Vice President, WICOR, Inc. Former President & CEO, Ameritech Wisconsin

19 Brian J. Stark Founding Principal, Chief Executive Officer and Chief Investment Officer, Stark Investments

20 Former Chairman and President, Gehl Foods, Inc. Katherine M. Gehl

21 David M. Baum President, Revolution Golf

22 Board of Directors

23 Daniel F. McKeithan, Jr. Chairman and CEO, Tamarack Petroleum Company 32 years of service!

24 James D. Ericson Retired President, CEO and Chairman, Northwestern Mutual Life Insurance 16 years of service!

25 Thank you, Jack and Jim!

26 Compensation of Named Executive Officers

27 Frequency of Advisory Vote on Compensation of Named Executive Officers

28 Selection of Independent Registered Public Accounting Firm

29 Approval of Material Terms of Performance Goals

30 Business Meeting

31 ANNUAL SHAREHOLDERS MEETING May 4, 2017

32 Our associates are our greatest asset

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34 By the Numbers A Record Year Hit movies Investments in new and existing theatres Major acquisition

35 By the Numbers Our Mission Deliver great experiences. Achieve great results.

36 Transforming the By Way the Momentum Numbers You See Movies In 48% of Marcus theatres

37 At least one premium large format screen at 64% of Marcus theatres Transforming the By Way the Momentum Numbers You See Movies

38 Signature Food and By Beverage the Momentum Numbers Concepts In 38% of Marcus theatres

39 By the Numbers Momentum Signature Food and Beverage Concepts In 44% of Marcus theatres

40 Signature Food and By Beverage the Momentum Numbers Concepts Five locations

41 Signature Food and By Beverage the Momentum Numbers Concepts Six locations

42 Signature Food and By Beverage the Momentum Numbers Concepts Nearly 70 outlets

43 Innovative Marketing & Promotional By the Momentum Numbers Strategies Over 2.1 million members

44 Wehrenberg By Theatres the Momentum Numbers Acquisition 197 screens at 14 locations in four states Increased screen count by 29% Introducing $5 Tuesdays and other premium amenities

45 Growth Strategy By the Momentum Numbers Expand DreamLounger seating, PLF screens, and food and beverage brands to more theatres

46 Growth Strategy By the Momentum Numbers Pursue strategic acquisitions Country Club Hills Cinema in Country Club Hills, Illinois

47 Growth Strategy By the Momentum Numbers Build new theatres Marcus Southbridge Crossing Cinema in Shakopee, Minnesota Opened in April 2017 BistroPlex in Greendale, Wisconsin Opening summer 2017

48 Raising the Bar Momentum Fine-tuning amenities Growing our circuit Managing costs Outstanding associates Deliver great experiences. Achieve great results.

49 ANNUAL SHAREHOLDERS MEETING May 4, 2017

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51 People Pleasing People Making our ordinary day an extraordinary day for our guests

52 Enhance the Guest Experience Skirvin Hilton Hotel $4.3 million investment Updated 225 guest rooms, lobby and Red Piano Lounge Number one in service and loyalty

53 Enhance the Guest Experience Grand Geneva Resort and Spa Multi-million dollar investment 29 new all-season villas Enhances the resort experience

54 Omaha Marriott Downtown at the Capitol District Minority investor and manager 333 rooms Opening summer 2017 Add New Management Contracts

55 Leverage Food and Beverage Expertise Contributes nearly 31% of total division revenues Operate more than 40 restaurants and lounges Mason Street Grill 10 th anniversary

56 Leverage Food and Beverage Expertise SafeHouse Chicago Opened March 1 Beneath AC Hotel Chicago Downtown

57 Leverage Food and Beverage Expertise EscapeHouse Chicago Adjacent to AC Hotel and SafeHouse Chicago Two interactive 60- minute escape rooms

58 Leverage Hospitality Expertise Wisconsin Hospitality Linen Service Serves hotels and restaurants throughout the Midwest Doubling capacity

59 Maximize Competitive Advantages Earned more than 40 awards for hotel, restaurant, spa and golf operations and service in 2016 Three properties ranked in top five in their city and/or state Two properties recognized 21 hotel and restaurant awards

60 Growth Strategy Manage costs and increase profitability Add more high-quality management contracts

61 Growth Strategy Source potential hotel investment opportunities Leverage national footprint and infrastructure

62 Product. Profit. People. A passion for service Effective processes in place Talented team Deliver great experiences. Achieve great results.

63 ANNUAL SHAREHOLDERS MEETING May 4, 2017

64 Achieve Great Results RECORD revenues and operating income 23.1% increase in net earnings

65 Fiscal 2016 Results

66 Achieve Great Results $600 $500 $400 $300 $200 $100 $0 Revenues (in millions) $531.7 $ Up 2.3%

67 Achieve Great Results Operating Income (in millions) $80 $70 $60 $50 $40 $30 $20 $10 $0 $61.0 $ Up 14.6%

68 Achieve Great Results Net Earnings (in millions) Earnings Per Share $40 $35 $30 $25 $20 $15 $10 $30.8 $37.9 Up 23.1% $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $1.10 $1.36 Up 23.6% $5 $0.20 $ $

69 Achieve Great Results A Leader in Company Forward Lodging Looking & Entertainment Overview Statement Revenues by Division Operating Income by Division Marcus Theatres Marcus Hotels 16.9% 60.3% 39.6% Corporate Items 83.1% 0.1%

70 Marcus Theatres A Leader in Company Forward Lodging Looking & Entertainment Overview Statement A record year Revenues up 7% and operating income up 14.1% Outperformed the industry

71 Revenue per available room (RevPAR) up 3% Operating income increased 12% Outperformed competitive set in its markets Marcus Hotels & Resorts A Leader in Company Forward Lodging Looking & Entertainment Overview Statement

72 Achieve Great Results Capital expenditures totaled $147 million Capital expenditures may be in the $100-$120 million dollar range for fiscal 2017 $95.0

73 Achieve Great Results Debt/Capitalization Ratio Low debt $116 million in available credit lines 50% 40% 44% 42% 42% 38% 42% 42% Positioned to return capital to shareholders 30% 20% 10% 0% 5/30/13 5/29/14 5/28/15 12/31/15 12/29/16 3/30/17

74 First Quarter Fiscal 2017 Results

75 First Quarter 2017 Results Revenues (in millions) Operating Income (in millions) $140 $120 $100 $80 $60 $40 $20 $0 $125.4 $ Up 25.9% $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 $11.3 $ Up 58.9%

76 First Quarter 2017 Results Net Earnings (in millions) Earnings Per Share $10 $9.5 Up 73.4% $0.35 $0.33 Up 65.0% $8 $6 $5.5 $0.30 $0.25 $0.20 $0.20 $4 $0.15 $2 $0.10 $0.05 $ $

77 First Quarter 2017 Results Marcus Theatres Record revenues and operating income Continued to outperform the industry Achieved despite screens out of service Marcus Hotels & Resorts RevPAR up 4.4% Additional group and transient business Decline in operating income due in part to pre-opening expenses for SafeHouse Chicago

78 Summary Financially strong Both divisions off to an excellent start to 2017 Positive outlook Achieve great results.

79 ANNUAL SHAREHOLDERS MEETING May 4, 2017

80 Return of Capital to Shareholders Increased annual cash dividend 11.1% to $0.50 per common share Third dividend increase in the past two years Total return to shareholders has grown at a CAGR of more than 36% over the past three years and 22% over the past five years Total return to shareholders was 68% in FY 2016

81 Associates Shareholders Thank You! Deliver great experiences. Achieve great results.

82 Shareholder Comments & Questions

83 Thank You Gift

84 Stay and enjoy a movie!

85 ANNUAL SHAREHOLDERS MEETING May 4, 2017