Marcus Corporation's Growth Will Be Incremental, If At All
Buy A Movie Ticket, Not This Theater Company
Fri, Jul. 8, 10:32 AM
- The U.S box office is only up 1.3% through the 4th of July weekend compared to last year, according to an updated tabulation from BoxOfficeMojo.
- Drexel Hamilton says its the filler movies scheduled between blockbusters that are to blame for the sub-2% growth. The investment firm points to Sony's (NYSE:SNE) Money Monster as an example of the trend. The film was set up as a blockbuster gap filler (Julia Roberts, George Clooney, and Jodie Foster as director), but has only brought in $41M to date.
- What to watch: The exhibitor industry is desperate to hold on to the dinner-and-a-movie date concept with more data out suggesting that younger generations are skipping out on the latter half of the equation. Ticket pricing (+2% Y/Y) and concessions revenue per patron have been solid, but growing traffic steadily has been a challenge.
- Related stocks: CKEC, AMC, CNK, RLD, IMAX, RDI, MCS, NCMI.
Mon, Jun. 13, 9:30 AM
- The summer box office in the U.S. is off to a painfully slow start.
- Revenue for the May 6 to June 12 period fell 22% Y/Y to $1.24B, according to The Hollywood Reporter. The YTD box office tally is still up about 4% compared to last year.
- A failure of sequels to generate large interest with moviegoers has led to the summer slide.
- Major summer releases still on the way include Jason Bourne, Star Trek Beyond, Suicide Squad, and Independence Day: Resurgence.
- Related stocks: CKEC, CNK, RGC, MCS, RDI, AMC, IMAX, DCIN.
Sun, May 22, 6:09 PM
- The U.S. box office continues to stay ahead of last year's pace after Angry Birds and Captain America: Civil War performed well over their opening weekend. Both films were comfortably over $30M level (domestic) for the weekend.
- Next week could be even stronger with X-Men: Apocalyse set to debut. The superhero mashup has already earned more than $100M in the 75 global markets where it has opened (ranking #1 in 71 markets).
- The U.S. box office YTD tally of $4.229B through May 22 is up 5.6% from the level of last year and 11.7% higher than the running total in 2014 through the same weekend.
- Looking ahead, exhibitors hope to cash in even more on theater and format upgrades after reporting strong concessions revenue growth in Q1 (AMC was a leader with a 21% Y/Y jump or +6% per patron). Movie ticket prices have also trickled higher, averaging $8.58 this year sector-wide.
- Looking even further ahead, despite some dabbling with a shortened release window and Netflix (NASDAQ:NFLX) introducing some movies on the big screen, the industry has stayed relatively consolidated in preventing a major disruption to its model such as the The Screening Room (see prior coverage) aims to unveil.
- Related stocks: CKEC, AMC, CNK, RLD, IMAX, RDI, MCS, NCMI.
Wed, May 4, 3:41 PM
Thu, Apr. 28, 7:52 AM
Sat, Apr. 16, 10:06 AM
- Amazon (NASDAQ:AMZN) delivered a strong message to the exhibitor industry on its movie distribution plans during a presentation this week at CinemaCon.
- "All films will be released theatrically, with an aggressive marketing campaign to bring audiences to your theaters," stated Studios Marketing and Distribution Chief Bob Berney. Most importantly, Berney tipped off that theater chains will have an exclusivity window before films are streamed.
- The company's commitment to fully back films in theaters stands in opposition to the strategy of Netflix (NASDAQ:NFLX) which has been accused of using limited theatrical exposure as a way to qualify for awards.
- Amazon snapped up six new films at the Sundance Film Festival earlier this year, a few of which appear to have strong box office appeal.
- Also creating some buzz at CinemaCon was Sean Parker's The Screening Room which is looking to completely disrupt the industry with a service that makes films accessible at home the same day they are released in theaters. Most analysts think Parker will fail to get a majority of the major theater chains to play ball. On the studio side, a top Warner Bros. exec strongly hinted at CinemaCon that a middle-man wouldn't be allowed into the party.
- Related stocks: CKEC, AMC, CNK, RDI, IMAX, MCS, LGF, DWA, FOXA, TWX.
- Now read Amazon Just Fired A Major Shot At Netflix
Wed, Mar. 30, 10:14 AM
- AMC Entertainment (NYSE:AMC) is down 3.2% after B. Riley downgrades the exhibitor stock to a Neutral rating from Buy over concerns of Q2 box office numbers.
- Cinemark (CNK -2.6%) and Regal Entertainment (RGC -1.1%) were lowered to Neutral by the B. Riley team as well on the same box office anxiety. IMAX (IMAX -0.8%) and Marcus Corp. (MCS -1.2%) were left alone by B. Riley, but are also in retreat.
- The YTD box office gross in the U.S. is tracking behind last year's level, according to data from Box Office Mojo. The comparison could be troubling with last year's film slate back-end loaded.
Thu, Mar. 17, 10:46 AM
- Powerful movie directors are taking sides in the debate over the new $50 at-home movie service being proposed by Sean Parker.
- Yesterday, James Cameron and Christopher Nolan slammed the concept in a tag team attack, noting The Screening Room could fundamentally alter movie viewing habits
- There was some surprise in Hollywood when reports came out earlier indicating that Peter Jackson, J.J. Abrams, and Steven Spielberg support the venture. Double that surprise level off the word that some of them may be shareholders.
- Though The Screening Room's model calls for the service to share revenue with movie theater chains, exhibitors are seen as having the most to lose by losing their exclusivity edge. Studios are also on edge as the possibility exists that The Screening Room picks a particular platform or content partner.
- SA contributor The Entertainment Oracle is out ahead of the development with a breakdown of who might win and lose if The Screening Room takes off.
- Previously: New startup aims to stream first-run movies (Mar. 09 2016)
- Related movie theater and studio stocks: AMC Entertainment (NYSE:AMC), Cinemark Holdings (NYSE:CNK), Regal Entertainment (NYSE:RGC), Carmike Cinemas (NASDAQ:CKEC), Reading International (NASDAQ:RDI), Marcus Corp (NYSE:MCS), IMAX (NYSE:IMAX), Paramount (VIA, VIAB), Lions Gate Entertainment (NYSE:LGF), Sony Entertainment (NYSE:SNE), Disney (NYSE:DIS), Fox (NASDAQ:FOXA).
Wed, Mar. 16, 5:30 PM
Wed, Mar. 9, 8:59 PM
- A new startup aims to offer an at-home premium movie service that gives consumers a crack at movies the same day they premiere on the big screen.
- Sources tell Variety that The Screening Room will charge $150 for a set-top box and $50 per film. The venture is backed by Sean Parker who promises anti-piracy technology.
- A major hurdle still to be worked out is deals with major exhibitors and distributors. Those negotiations could reduce The Screening Room's cut to 10% or less.
- Efforts are already underway to blur the lines between Hollywood and the streaming world without disrupting the box office revenue model, but no broad deal has been hashed out.
- In the mix: Netflix (NASDAQ:NFLX), AMC Entertainment (NYSE:AMC), Cinemark Holdings (NYSE:CNK), Regal Entertainment (NYSE:RGC), Carmike Cinemas (NASDAQ:CKEC), Reading International (NASDAQ:RDI), Marcus Corp (NYSE:MCS), IMAX (NYSE:IMAX), Paramount (VIA, VIAB), Lions Gate Entertainment (NYSE:LGF).
Fri, Mar. 4, 7:37 AM
- Analysts are weighing in on the exhibitor merger of AMC Entertainment (NYSE:AMC) and Carmike Cinemas (NASDAQ:CKEC). Some are wondering if another movie theater operator will rush in to top AMC's offer for Carmike.
- "The transaction appears accretive," says MKM Partner's Eric Handler.
- "We do not anticipate any significant divestitures from theatre overlap, but there could be some questions about AMC owning 18 percent of National CineMedia and Carmike's 20 percent interest in Screenvision," observes the analyst.
- FBR's Barton Crockett is mainly positive on the merger, although he notes that buying at peak box office is a risk.
- B. Riley & Co. analyst Eric Wold says the acquisition validates its conviction buy call on AMC due to the improved scale.
- Previously: Carmike Cinemas, AMC log postmarket gains amid confirmed $1.1B merger deal (Mar. 03 2016)
- Related stocks: CNK, RDI, MCS, NCMI.
- AMC +7.39% premarket to $27.60. CKEC +15.65% to $29.04 vs. the deal price of $30.
Wed, Feb. 24, 10:41 AM
- The Marcus Corporation (MCS -0.1%) reports revenue for the last five weeks of 2015 was $59.401M (adjusted box office +39%).
- Revenue was up 16% for the 31-week transition period ending on December 31 off of a 14% rise in box office
- Operating income was $8.04M for the last five weeks of 2015, compared to a small loss a year for a comparable four-week period.
- Operating income for the 31-week period was $44.41M.
- The transitional reporting from Marcus is due to a change to a fiscal year end in December.
Tue, Feb. 23, 12:21 PM
- IMAX (IMAX +0.5%) CEO Richard Gelfond presented today at the Jefferies Media & Communications Conference.
- The exec sees a positive year for box office revenue in both the U.S. and China, despite a slate that is lighter on blockbusters.
- "This (2016) is a year where I think there's a lot of doubles and triples," said Gelfond.
- Box office traffic was exceptionally strong in China during the New Year holiday period, while U.S. numbers are ahead of last year's pace with some help from Deadpool and Star Wars 7.
- Previously: Movie theater stocks jump on strong box in U.S. and China (Feb. 16 2016)
- Related stocks: CKEC, CNK, AMC, MCS, RDI.
Tue, Feb. 16, 1:31 PM
- Movie theater stocks are solidly higher after strong box office showings in both the U.S. and China.
- The Chinese box office smashed all-time records amid the New Year holiday, while 39 movies in the U.S. generated just under $273M for the three-day weekend, up 28% from the V-Day period a year ago.
- Strong gainers include AMC Entertainment (AMC +9.5%), Regal Entertainment (RGC +3.3%), Carmike Cinemas (CNK +1.1%), IMAX (IMAX +7.2%), and Marcus Corp (MCS +2.3%).
- Previously: 'Deadpool' smashes records for Fox with $150M holiday opening (Feb. 16 2016)
- Previously: China's box office sets all-time record (Feb. 15 2016)
Mon, Feb. 15, 2:01 PM
Thu, Feb. 11, 1:46 PM
- Movie theater stocks are bucking a weak market day to trend higher.
- The U.S. box office ended 2015 up 4.1% from the previous year to tally $11.126B. The average ticket price in the U.S. was $8.43 and concession spending per patron was up over 5%.
- Notable gainers: AMC Entertainment (NYSE:AMC) +1.3%, Carmike Cinemas (NASDAQ:CKEC) +1.1%, Cinemark Holdings (NYSE:CNK) +1.0%, Regal Entertainment (NYSE:RGC) +1.2%, Marcus Corp (NYSE:MCS) +1.9%.
Marcus Corp. operates movie theatres and hotels and resorts in the United States. It operates its business into two reportable business segments: Movie Theatres and Hotels & Resorts. The Theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Ohio, Minnesota, Iowa,... More
Country: United States
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