MARCUS CORPORATION CONTINUES STOCK REPURCHASE

Source: The Marcus Corporation

March 26, 1999
The Marcus Corporation yesterday reported results for the third quarter and nine months ended February 25, 1999.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of fiscal 1999 were $15,365,000, compared to pro forma EBITDA of$18,754,000 for the same period in the prior year. EBITDA for the first nine months of fiscal 1999 was $73,288,000, compared to pro forma EBITDA of$73,596,000 for the first nine months of fiscal 1998.

In the hotels and resorts division, both revenues and operating income increased for the quarter. Increased management fee income and higher revenues at all four company-owned properties contributed to the division’s improved operating profit.

"In January, accounting for first-year expenses for the Miramonte Resort in Indian Wells, California, was completed, which should contribute to improved profits for this property in future quarters," Marcus said. "We are moving forward with a number of significant projects in this division. We expect to break ground in April for the new 238-room Madison Hilton hotel adjacent to the Monona Terrace Convention Center in Madison, Wisconsin, and construction continues on the major addition to theMilwaukee Hilton. We are also finalizing the plans for our vacation ownership development at the Grand Geneva Resort & Spa in Lake Geneva, Wisconsin, and expect to begin selling the timeshare units this summer," Marcus said.

The company continued its stock repurchase program in the third quarter,buying back 80,000 shares in the open market. Since April 1998, the company has purchased a total of 535,000 shares. "The Marcus Corporation is makinga significant reinvestment in its core businesses, including spending over $20 million each in the re-branding of Baymont and the retrofitting of our theatres to stadium seating, because of our confidence in the long-term earnings potential of these businesses. Add the new investments we are making in our hotels and resorts division, and you can see why we have confidently invested in our company through our recent share repurchases. Our strong balance sheet, enhanced by the value of our extensive real estate holdings, provides us the support and flexibility to make these investments," Marcus said.

Headquartered in Milwaukee, Wisconsin, TheMarcus Corporation is comprised of four divisions: limited-service lodging,movie theatres, hotels/resorts and restaurants. The company operates or franchises 161 Baymont Inns and Baymont Inns & Suites (105 company-ownedand 56 franchised) in 30 states and six Woodfield Suites in Wisconsin,Colorado, Ohio and Illinois; 411 movie screens in Wisconsin, Illinois, Ohio and Minnesota and one family entertainment center in Wisconsin; three hotels and a resort in Wisconsin, one hotel in Minnesota, one hotel and a resort in California and one resort in Michigan; and 30 KFC and KFC/TacoBell 2-in-1 restaurants in Wisconsin.