Boxoffice - March 219

INVESTOR RELATIONS
BY ROB RINDERMAN
FINANCIAL NEWS ROUNDUP
ROB RINDERMAN
Rob Rinderman is an avid
follower and fan of the
cinema and exhibition
businesses. He has
assisted many public and
privately held companies
with communications and
business development
consulting services for over
two decades and written
as a freelance journalist
covering these industries
since 2015.
Dolby Laboratories Inc.
(DLB) reported its fiscal 2019
first quarter (three months ended
December 28, 2018) financial
results, including total revenue
of $302.4 million, a slight improvement versus the
$299.5 million the company generated in the yearago
fiscal Q1 three-month period.
Kevin Yeaman, president and CEO, Dolby
Laboratories, commented, “Our momentum for
Dolby Vision and Dolby Atmos was on strong
display at CES (Consumer Electronics Show held
January 2019 in Las Vegas), and we opened our
first Dolby Cinema in the UK at the iconic Odeon
Leicester Square.”
Dolby’s GAAP (Generally Accepted Accounting
Principles) net income was $98.2 million, or
$0.93 per diluted share, significantly better than
the GAAP net loss of $53.3 million, or $0.52 per
diluted share reported in the prior year fiscal Q1.
On a non-GAAP basis, fiscal Q1 net income was
$78.7 million, or $0.74 per diluted share, down
from non-GAAP net income of $95.4 million, or
$0.90 per diluted share, in the comparable 2018
fiscal period.
DLB announced payment of a cash dividend of
$0.19 per share of Class A and Class B common
stock, payable on February 21, 2019, to stockholders
of record as of the close of business on February
12, 2019.
The Marcus Corporation
(MCS), parent company of
Marcus Theatres, announced
completion of its acquisition
of the assets of Movie Tavern
from VSS-Southern Theatres, LLC.
The Movie Tavern purchase further expanded
Marcus’s theatrical footprint by 23 percent, increasing
its circuit by 208 screens and 22 locations.
The additional theaters are based in the states of
Arkansas, Colorado, Georgia, Kentucky, Louisiana,
New York, Pennsylvania, Texas, and Virginia. Marcus
now owns or operates a total of 1,097 cinema
screens within 90 complexes in 17 states.
As previously disclosed, the acquisition
purchase price consisted of $30 million in cash
and the issuance of 2.45 million shares of MCS
common stock. The issued shares are subject to
certain resale restrictions by Southern Theatres.
At the time of the transaction’s closing, the aggregate
purchase price was valued at approximately
$139 million.
Commenting on the acquisition, Rolando B.
Rodriguez, chairman, president, and CEO of Marcus
Theatres, stated, “Movie Tavern is an attractive
addition to our existing circuit, and we are especially
pleased to expand our portfolio of in-theater
dining locations.”
Rodriguez said the company plans to brand
its new locations as “Movie Tavern by Marcus.”
Marcus is immediately introducing its popular $5
Movie Tuesdays to the 22 Movie Tavern locations.
The $5 promotion includes all-day admission each
and every Tuesday; patrons also receive a free complimentary-size
popcorn with a ticket purchase.
On the same day it completed the Movie Tavern
acquisition, MCS also announced its preliminary,
unaudited financial results for its fiscal fourth
quarter ended December 27, 2018.
For Q4, the company expects to report total revenues
of approximately $175 million, a 5.7 percent
year-over-year increase. Theater admissions revenue
growth is expected to be in-line with the industry,
after adjusting for the company’s new theaters.
MCS management is predicting net earnings
of between $7.8 million and $8.7 million and net
earnings per diluted common share of $0.27 to
$0.30. The company forecasts fiscal Q4 Adjusted
EBITDA of between $34.8 million and $36.0 million,
a 7 percent to 10.7 percent annual increase.
Marcus also recently announced the closing of
a registered public offering of 1,725,000 shares
of common stock held by Southern Margin Loan
SPV LLC. The public offering included the sale
of 225,000 MCS shares pursuant to the underwriter’s
exercise in full of its option to purchase
additional shares.
The company issued the shares to the selling
shareholder in connection with the closing of
Marcus Corp’s acquisition of Movie Tavern. Marcus
did not sell any shares in the offering nor did
it receive any proceeds from the aforementioned
share sale.
74 MARCH 2019