Core Insights - Marcus Corporation (MCS) is identified as undervalued, with significant potential for growth in the movie and hotel sectors, leveraging its 90-year history [1] Company Overview - Marcus Corporation operates in the entertainment and hospitality industries, specifically focusing on movies and hotels [1] - The company has a long-standing presence of 90 years, indicating stability and experience in its sectors [1] Analyst Background - The analysis is conducted by an equity analyst with a decade of experience in investment banking, specializing in thematic research and valuation in the U.S. restaurant industry and other consumer discretionary sectors [1] - The analyst has a strong academic background, holding an MBA in Controllership and Accounting Forensics, and a Bachelor's in Business Administration, along with specialized training in valuation and financial modeling [1]

Core Points - Marcus Corporation will participate in the Wells Fargo 9 Annual TMT Summit on November 18, 2025, with CEO Gregory S. Marcus and CFO Chad M. Paris attending [1][2] - The conference will include one-on-one meetings, company presentations, and discussions focused on technology, media, and telecommunications sectors [2] Company Overview - Marcus Corporation, headquartered in Milwaukee, is a leader in the lodging and entertainment industries, owning significant real estate assets [3] - The theatre division, Marcus Theatres, is the fourth largest in the U.S., operating 985 screens across 78 locations in 17 states under various brands [3] - The lodging division, Marcus Hotels & Resorts, manages 16 hotels and resorts in eight states [3] Recent Developments - Marcus Corporation celebrated its 90th anniversary on November 1, 2025, with a proclamation from Wisconsin's Governor Tony Evers recognizing "Marcus Corporation Day" [5] - The company declared a quarterly cash dividend of $0.08 per share, payable on December 15, 2025, to shareholders of record on November 25, 2025 [6] - David J. Marcus has been elected to the Board of Directors, bringing experience from his role as CEO of Marcus Investments LLC [7]

Core Points - Nexus Uranium Corp. has engaged MCS Market Communication Services GmbH for a digital marketing campaign over an initial six-month term [1][2] - The service agreement was signed on November 3, 2025, and MCS is an independent digital marketing firm with no prior relationship with Nexus [2][4] - The marketing services will include digital campaign development, keyword research, campaign optimization, and online placements to enhance investor outreach [3][4] Financial Details - The initial budget for the marketing campaign is set at €500,000, which includes advertising spend and an 18% agency fee [4] - Additional compensation may be provided to MCS if the budget is increased during the term, subject to mutual agreement [4] Company Overview - Nexus Uranium is a Canadian uranium exploration company focused on mineral exploration and development in the green energy sector [5] - The company holds five uranium projects in the United States and one project in the Athabasca Basin of northern Saskatchewan, Canada [5]

Core Points - The Marcus Corporation's Board of Directors declared a regular quarterly cash dividend of $0.08 per share of common stock [1] - A dividend of $0.073 per share was also declared for Class B common stock, which is not publicly traded [1] - Both dividends will be paid on December 15, 2025, to shareholders of record on November 25, 2025, for common stock and November 2, 2025, for Class B common stock [1]

Group 1 - The core announcement is the election of David J. Marcus as a director of Marcus Corporation [1] - David J. Marcus is the CEO of Marcus Investments LLC, which focuses on restaurant hospitality, real estate ventures, and retail [1] - He is also the chairman of the Marcus Corporation Foundation and is related to Gregory S. Marcus, the chairman and CEO of Marcus Corporation [1]

Core Insights - Future Fuels Inc. has entered into a 60-day marketing services agreement with MCS Market Communication Service GmbH to enhance its visibility in European and North American markets [1] Company Overview - The agreement is dated October 31, 2025, and involves a range of online marketing and investor awareness services [1] - Services provided by MCS will include campaign creation, advertorial production, and digital advertising initiatives [1]

Core Insights - Marcus Corporation reported earnings per share (EPS) of $0.52, exceeding the estimated $0.43, and revenue of approximately $210.2 million, surpassing the estimated $207 million [1][6] - Despite the positive earnings, the company experienced a 9.7% decrease in revenue compared to the same period last year [2][6] - The Marcus Hotels & Resorts division contributed significantly to revenue growth, especially considering the previous year's boost from the Republican National Convention [3] Financial Metrics - The price-to-earnings (P/E) ratio is approximately 30.18, indicating the market's valuation of the company's earnings [3][6] - The price-to-sales ratio stands at 0.57, reflecting the company's market value relative to its sales [4] - The enterprise value to sales ratio is 1.08, showing the company's total valuation compared to its revenue [4] - The enterprise value to operating cash flow ratio is 10.60, indicating how the company's valuation compares to its cash flow from operations [4] - The earnings yield is 3.31%, providing insight into the return on investment for shareholders [5] - The debt-to-equity ratio is 0.40, indicating the proportion of debt used to finance the company's assets relative to equity [5] - The current ratio is 0.24, which may suggest potential liquidity challenges in meeting short-term obligations [5]

Financial Performance - Revenues for Q3 fiscal 2025 were $210.2 million, a decrease of $22.5 million (9.7%) compared to Q3 fiscal 2024's $232.7 million[75] - Operating income for Q3 fiscal 2025 was $22.7 million, down $10.1 million (30.7%) from $32.8 million in Q3 fiscal 2024[75] - Net earnings for Q3 fiscal 2025 were $16.2 million, a decline of $7.1 million (30.4%) compared to $23.3 million in Q3 fiscal 2024[75] - Net earnings per diluted share for Q3 fiscal 2025 were $0.52, down $0.21 (28.8%) from $0.73 in Q3 fiscal 2024[75] - Revenues for the first three quarters of fiscal 2025 increased to $565.0 million, up $17.7 million (3.2%) from $547.2 million in the first three quarters of fiscal 2024[75] - Operating income for the first three quarters of fiscal 2025 was $15.3 million, a decrease of $3.0 million (16.5%) compared to $18.4 million in the first three quarters of fiscal 2024[75] - Total Adjusted EBITDA for the company decreased by 22.6% to $40.4 million in Q3 2025 compared to $52.3 million in Q3 2024[114] - Adjusted EBITDA for Q3 F2025 was $40.4 million, a decrease of 22.5% from $52.3 million in Q3 F2024[116] Theatre Division Performance - Theatre division revenues for Q3 FY2025 were $119.9 million, a decrease of $23.9 million (16.6%) compared to Q3 FY2024 revenues of $143.8 million[87] - Operating income for the Theatre division in Q3 FY2025 was $12.3 million, down $9.4 million (43.3%) from $21.8 million in Q3 FY2024[87] - Admission revenues in Q3 FY2025 were $57.7 million, a decline of $11.3 million (16.3%) from $69.0 million in Q3 FY2024[88] - Total theatre attendance decreased by 18.7% in Q3 FY2025 compared to Q3 FY2024, attributed to lower box office performances from top films[92] - Theatres division Adjusted EBITDA decreased by 33.4% to $22.1 million in Q3 2025, reflecting lower attendance and revenues[114] Hotels and Resorts Division Performance - Hotels and resorts division revenues increased by 1.6% in Q3 FY2025 to $90.1 million, compared to $88.7 million in Q3 FY2024[101] - Operating income for the hotels and resorts division in Q3 FY2025 was $16.4 million, a decrease of $0.7 million (4.0%) from $17.0 million in Q3 FY2024[101] - Total revenues for the hotels and resorts division in the first three quarters of FY2025 increased by 2.4% to $225.7 million compared to $220.4 million in the same period of FY2024[102] - Food and beverage revenues grew by 8.3% to $24.1 million in Q3 2025, driven by strong group business and increased occupancy[103] - Average occupancy percentage rose to 78.4% in Q3 2025, up 1.7 percentage points from 76.7% in Q3 2024[105] - RevPAR decreased by 1.5% to $176.32 in Q3 2025, compared to $178.94 in Q3 2024, primarily due to lower average daily rates[105] Corporate Expenses and Income - Corporate expenses for the first three quarters of fiscal 2025 increased by $2.5 million compared to the same period in fiscal 2024, driven by higher depreciation and professional fees[77] - Other income for Q3 fiscal 2025 included a $4.5 million gain from a property insurance settlement, contributing to a 135.9% increase in other income compared to Q3 fiscal 2024[79] - Interest expense for Q3 fiscal 2025 was $2.8 million, down from $3.1 million in Q3 fiscal 2024, primarily due to decreased borrowings[80] - The effective income tax rate for the first three quarters of fiscal 2025 was 33.2%, with an anticipated range of 32% to 34% for the full fiscal year[85] Cash Flow and Capital Expenditures - Net cash provided by operating activities in the first three quarters of F2025 was $35.4 million, down from $51.4 million in the first three quarters of F2024, a decrease of 31.0%[125] - Total cash capital expenditures for the first three quarters of F2025 amounted to $60.8 million, an increase from $53.8 million in the same period of F2024[126] - Net cash used in investing activities during the first three quarters of F2025 totaled $46.6 million, a decrease of 20.2% from $58.4 million in the same period of F2024[126] - The company incurred approximately $18.4 million in capital expenditures in its theatre division during the first three quarters of F2025[127] Debt and Shareholder Actions - The debt-to-capitalization ratio was 0.26, and the net leverage ratio was 1.69x net debt to Adjusted EBITDA as of September 30, 2025[122] - Principal payments on long-term debt were approximately $10.4 million during the first three quarters of F2025, compared to $11.0 million in the same period of F2024[130] - The company added $156.0 million of new short-term revolving credit facility borrowings during the first three quarters of F2025[129] - The company repurchased 1.0 million shares of common stock for $16.2 million in the first three quarters of fiscal 2025, compared to 0.7 million shares for $9.7 million in the same period of fiscal 2024[134] - Dividends paid during the first three quarters of fiscal 2025 were $6.8 million, slightly up from $6.6 million in the same period of fiscal 2024[135]

Financial Data and Key Metrics Changes - Consolidated revenues for the third quarter were $210 million, down 9.7% compared to the prior year quarter [5] - Operating income decreased by $10.1 million to $22.7 million compared to the prior year quarter [5] - Consolidated adjusted EBITDA was $40.4 million, a decrease of $11.9 million from the third quarter of fiscal 2024 [5] - Net earnings for the quarter were $16.2 million, or $0.52 per share, impacted by a non-recurring gain on a property insurance settlement of $3 million [5][6] - Excluding the gain, net earnings were $13.2 million, or $0.42 per share, compared to $24.8 million, or $0.78 per share in the prior year [6] Business Line Data and Key Metrics Changes Theater Division - Total revenue for the theater division was $119.9 million, a decrease of approximately 16% compared to the prior year [6] - Comparable theater admission revenue decreased by 15.8%, and attendance decreased by 18.7% compared to the fiscal third quarter 2024 [7] - Adjusted EBITDA for the theater division was $22.1 million, a 33% decrease over the prior year quarter [10] Hotels and Resorts Division - Total revenues before cost reimbursements were $80.3 million, a 1.7% increase compared to the prior year [10] - RevPAR for comparable owned hotels decreased by 1.5%, with an average occupancy rate of 78.4% [10][11] - Adjusted EBITDA for hotels was essentially flat compared to the prior year quarter [14] Market Data and Key Metrics Changes - U.S. box office receipts decreased by 12% during the fiscal 2025 third quarter compared to the previous year, indicating a trailing performance relative to the industry [7] - Comparable competitive hotels experienced a RevPAR decrease of 6.7%, indicating that the company's hotels outperformed the competitive set by 5.2 percentage points [12] Company Strategy and Development Direction - The company plans to continue pursuing growth investments while returning capital to shareholders through dividends and share repurchases [17][32] - Capital expenditures for fiscal 2025 are expected to be between $75 to $85 million, with a significant decrease anticipated in 2026 [15][32] - The company is focused on optimizing pricing strategies to capture premium during peak periods while maintaining value-oriented options for price-sensitive customers [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a mixed quarter with solid results in hotels but challenges in theaters due to a less concentrated film slate [4][18] - The company remains optimistic about the upcoming film slate and expects continued growth in admission per caps [25][49] - There is an increased level of economic uncertainty, but the company is prepared to react and adjust quickly if needed [30] Other Important Information - The company repurchased approximately 600,000 shares for $9.1 million during the third quarter, totaling over 1 million shares repurchased this year [16] - The board approved a 4 million share increase in the current repurchase authorization, bringing it to 4.7 million shares [32] - The company celebrated its 90th anniversary, emphasizing its entrepreneurial legacy [33] Q&A Session Summary Question: On the hotel side, what is the situation with rate growth in three hotels? - Management indicated that the lack of rate growth was due to market dynamics, with two hotels facing persistent supply issues and one experiencing recent demand softening [36][37] Question: Is the $50 million to $55 million CapEx primarily maintenance? - Management confirmed that while it includes some ROI investments, it is primarily maintenance and ROI capital [38] Question: How does the company view M&A opportunities? - The company is comfortable with its current leverage and has capacity for M&A if attractive opportunities arise [40][41] Question: Have there been changes in consumer behavior regarding concessions? - Management noted no significant changes in consumer buying patterns, with consistent basket sizes and increased merchandise sales [42][43] Question: How does the company view the M&A market in the current macro environment? - Management observed a sluggish transaction volume but noted a potential increase in activity as interest rates decrease [44][45] Question: What are the expectations for admission per cap growth? - Management expects growth to continue, driven by strategic pricing moves implemented in the third quarter [46][47] Question: What growth opportunities does the company see for theaters and hotels? - Management highlighted the strong film slate for 2026 and the benefits of recent investments in hotel renovations [49][51]

Core Insights - Marcus (MCS) reported quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.43 per share, and down from $0.78 per share a year ago, representing an earnings surprise of -2.33% [1] - The company posted revenues of $210.15 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.37%, but down from $232.67 million year-over-year [2] - Marcus shares have declined approximately 38.5% year-to-date, contrasting with the S&P 500's gain of 16% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $201.06 million, and for the current fiscal year, it is $0.29 on revenues of $765.23 million [7] - The estimate revisions trend for Marcus was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Services industry, to which Marcus belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - United Parks & Resorts, another company in the same industry, is expected to report quarterly earnings of $2.24 per share, reflecting a year-over-year increase of 7.7%, with revenues anticipated to be $541.22 million, down 0.9% from the previous year [9][10]