The
Marcus Corporation (NYSE:MCS) today announced that its Board of
Directors has authorized the repurchase of up to 3,000,000 additional
shares of the company’s outstanding common stock. The repurchases would
be executed in the open market, in privately negotiated transactions or
pursuant to a Securities and Exchange Commission Rule 10b5-1 plan,
depending upon a number of factors including prevailing market
conditions. As of December 31, 2012, the company had 18,480,658 shares
of common stock outstanding and 8,773,073 shares of Class B common stock
outstanding.
The new authorization adds to the company’s existing share repurchase
program that had approximately 955,000 shares remaining under prior
authorizations as of December 31, 2012. The company has repurchased
approximately 1.8 million shares in conjunction with the exercise of
stock options and the purchase of shares in the open market since June
1, 2012, the beginning of its 2013 fiscal year.
The new authorization does not obligate the company to acquire any
particular number of shares of common stock. The pace of the company’s
repurchase activity will depend on factors such as current stock price,
market conditions and other factors. The company’s share repurchase
program may be suspended, modified or discontinued at any time and has
no set expiration date. The shares repurchased would be retained as
treasury stock and used for employee benefit plans or other general
corporate purposes.
“We continue to believe that repurchasing our shares is a good
investment for the company. With our strong cash flow and balance sheet,
we believe that when timing and market conditions are appropriate, we
will be able to repurchase shares to enhance shareholder value while at
the same time continuing to invest in our businesses to facilitate our
long-term growth,” said Gregory S. Marcus, president and chief executive
officer of The Marcus Corporation.
About The Marcus Corporation
Headquartered in Milwaukee, Wisconsin, The
Marcus Corporation is a leader in the lodging and entertainment
industries, with significant company-owned real estate assets. The
Marcus Corporation’s theatre division, Marcus
Theatres®, currently owns or manages 687 screens at 55
locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North
Dakota and Ohio. The company’s lodging division, Marcus®
Hotels & Resorts, owns and/or manages 20 hotels, resorts and
other properties in 11 states. For more information, please visit the
company’s web site at www.marcuscorp.com.
Certain matters discussed in this press release are “forward-looking
statements” intended to qualify for the safe harbors from liability
established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may generally be identified as such
because the context of such statements include words such as we
“believe,” “anticipate,” “expect” or words of similar import. Similarly,
statements that describe our future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are subject
to certain risks and uncertainties which may cause results to differ
materially from those expected, including, but not limited to, the
following: (1) the availability, in terms of both quantity and audience
appeal, of motion pictures for our theatre division, as well as other
industry dynamics such as the maintenance of a suitable window between
the date such motion pictures are released in theatres and the date they
are released to other distribution channels; (2) the effects of
increasing depreciation expenses, reduced operating profits during major
property renovations, and preopening and start-up costs due to the
capital intensive nature of our businesses; (3) the effects of adverse
economic conditions in our markets, particularly with respect to our
hotels and resorts division; (4) the effects of adverse weather
conditions, particularly during the winter in the Midwest and in our
other markets; (5) the effects on our occupancy and room rates of the
relative industry supply of available rooms at comparable lodging
facilities in our markets; (6) the effects of competitive conditions in
our markets; (7) our ability to identify properties to acquire, develop
and/or manage and the continuing availability of funds for such
development; and (8) the adverse impact on business and consumer
spending on travel, leisure and entertainment resulting from terrorist
attacks in the United States or incidents such as the recent tragedy in
a movie theatre in Colorado. Shareholders, potential investors and other
readers are urged to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue reliance
on such forward-looking statements. The forward-looking statements made
herein are made only as of the date of this press release and we
undertake no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
