MILWAUKEE--(BUSINESS WIRE)--Directors of The Marcus Corporation (NYSE:MCS) today approved a 20.0% increase in the company’s quarterly cash dividend to $0.15 per share of common stock. The first dividend at the new rate will be paid March 15, 2018 to shareholders of record on March 5, 2018. The previous quarterly dividend rate was $0.1250 per share of common stock.
“The dividend increase reflects our strong financial performance and ongoing commitment to increasing shareholder value. In addition, we expect a meaningful impact from the tax reform legislation signed into law in December 2017 and are pleased to share this benefit with the key stakeholders who have been instrumental in our growth and success,” said Stephen H. Marcus, chairman of The Marcus Corporation.
“The reduction in our effective tax rate will free-up additional cash to invest in our businesses, associates, shareholders and community. In addition to the significantly higher quarterly dividend payment, we have already increased our matching contributions in our 401(k) plan and increased our contributions to The Marcus Corporation Foundation, which invests in deserving programs and projects in our communities,” said Marcus. “We expect to identify additional opportunities to utilize the additional cash to benefit all of our stakeholders in 2018.”
The Board of Directors also declared a dividend of $0.1364 per share of the Class B common stock. The dividend on the Class B common stock, which is not publicly traded, will also be paid March 15, 2018 to shareholders of record on March 5, 2018.
About The Marcus Corporation
Headquartered in Milwaukee, 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®, is the fourth largest theatre circuit in the U.S. and currently owns or operates 895 screens at 69 locations in eight states. The company’s lodging division, Marcus® Hotels & Resorts, owns and/or manages 19 hotels, resorts and other properties in nine states. For more information, please visit the company’s website 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 adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (3) the effects on our occupancy and room rates of the relative industry supply of available rooms at comparable lodging facilities in our markets; (4) the effects of competitive conditions in our markets; (5) our ability to achieve expected benefits and performance from our strategic initiatives and acquisitions; (6) the effects of increasing depreciation expenses, reduced operating profits during major property renovations, impairment losses, and preopening and start-up costs due to the capital intensive nature of our businesses; (7) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (8) our ability to identify properties to acquire, develop and/or manage and the continuing availability of funds for such development; and (9) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States or other incidents of violence in public venues such as hotels and movie theatres. 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.