MARCUS CORP
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 30, 2026
MCS$26.76-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0000062234-25-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0000062234-26-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 78 current paragraphs.
28 unchanged; 38 reworded; 11 added; 28 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Revenues increased during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025 due to increased revenues from both our theatre division and hotels and resorts division. Our first quarter is typically the seasonally weakest quarter of our fiscal year due to the traditionally reduced level of winter travel at our predominantly Midwestern portfolio of owned hotels. Additionally, the first quarter of fiscal 2026 included five less operating days compared to the first quarter of fiscal 2025, negatively impacting revenue growth by approximately $15.3 million.
Current report
We did not have any significant variations in investment income, other expenses, and equity losses from unconsolidated joint ventures during the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025.
Current report
(1)Operating margin is defined as operating income divided by total revenues before cost reimbursements.
Current report
(2)See Adjusted EBITDA section below for further discussion and non-GAAP reconciliations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues before cost reimbursements. See Adjusted EBITDA section below for further discussion and non-GAAP reconciliations.
Current report
Revenues and operating loss for the Theatre division improved during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025, due to increased attendance driven by stronger performances from films and a $0.4 million decrease in depreciation expense, partially offset by five fewer operating days in the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. The five fewer operating days in the first quarter of fiscal 2026 (which occurred between the Christmas and New Year’s holidays in the prior year period) negatively impacted revenue growth by $12.2 million and the change in operating loss by approximately $5.0 million. Additionally, operating loss in the prior year period was favorably impacted by a $1.4 million gain on disposition of property, equipment and other assets related to the sale of surplus land during the first quarter of fiscal 2025.
Current report
Our theatre division Adjusted EBITDA increased during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025 due to increased revenues and improved labor efficiency, partially offset by a $5.0 million unfavorable impact from five fewer operating days and increases in benefits, insurance, and general administrative expenses.
Current report
(1)Operating margin is defined as operating income divided by total revenues before cost reimbursements
Current report
(2)See Adjusted EBITDA section below for further discussion and non-GAAP reconciliations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues before cost reimbursements. See Adjusted EBITDA section below for further discussion and non-GAAP reconciliations.
Current report
Hotels and resorts division revenues increased 0.1% during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025, and revenues before cost reimbursements decreased 1.1% during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. Results were negatively impacted by five fewer operating days during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. The five fewer operating days during the first quarter of fiscal 2026 negatively impacted revenue growth by approximately $3.1 million and the increase in operating loss by approximately $0.4 million. Operating loss increased $1.9 million during the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025, due to lower revenues, a $0.5 million increase in depreciation expense, as well as increases in personnel, benefits, and other costs.
Current report
Our hotels and resorts division Adjusted EBITDA decreased during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025 and was negatively impacted by approximately $0.4 million due to five fewer operating days, a decrease in other revenue related to certain group business at one of our condo hotel properties, and increases in personnel, benefits, and other costs.
Current report
Division total revenues before cost reimbursements decreased 1.1% during the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025, resulting primarily from five fewer operating days due to the change in fiscal year described above and decreases in other revenues driven primarily by a group buyout of one condo hotel property during a portion of the first quarter of 2025 that did not reoccur in the current year quarter and a weaker ski season at Grand Geneva Resort & Spa resulting from unfavorable weather compared to last year. These revenue decreases were partially offset by the favorable impact of Hilton Milwaukee being fully operational compared to the prior year when the hotel had rooms out of service while undergoing significant renovations.
Removed paragraphs (28)
Previous report
Revenues declined during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024 due to decreased revenues from our theatre division, partially offset by increased revenues in our hotels and resorts division. The third quarter of fiscal 2025 included one additional operating day compared to the third quarter of fiscal 2024. Revenues increased during the first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024 due to increased revenues in both divisions. Revenues in the first three quarters of fiscal 2025 were favorably impacted by five additional operating days compared to the first three quarters of fiscal 2024. The four additional operating days, occurring during the fiscal 2025 first quarter, favorably impacted revenues by approximately $9.2 million. The additional operating day in the fiscal 2025 third quarter had an immaterial impact on results.
Previous report
Operating income during the third quarter of fiscal 2025 decreased $10.1 million primarily due to decreased revenues in our Theatre division, increased corporate expenses and an increase in depreciation expense of $0.4 million compared to the third quarter of fiscal 2024. Operating income during the first three quarters of fiscal 2025 declined $3.0 million compared to the first three quarters of fiscal 2024 due to increased corporate expenses and increased depreciation expense of $2.3 million, partially offset by increased operating income from our Theatre division compared to the prior year period.
Previous report
Other income (expense) and net earnings (loss) during the third quarter of fiscal 2025 were impacted by a decrease in interest expense, a decrease in investment income, an increase in other income primarily due to a $4.5 million gain from a property insurance settlement, and a decrease in debt conversion expense, compared with the third quarter of fiscal 2024. Other income (expense) and net earnings (loss) during the first three quarters of fiscal 2025 were impacted by an increase in interest expense, fluctuations in investment income, an increase in other income primarily due to a $4.5 million gain from a property insurance settlement, and a decrease in debt conversion expense, compared with the first three quarters of fiscal 2024.
Previous report
We recognized investment income of $0.0 million and $0.5 million during the third quarter and first three quarters of fiscal 2025, respectively, compared to $0.8 million and $1.7 million during the third quarter and first three quarters of fiscal 2024, respectively. Variations in investment income were due to changes in the value of marketable securities.
Previous report
Other income (expense) and net earnings (loss) were negatively impacted by debt conversion expense of $1.4 million and $15.3 million during the third quarter and first three quarters of fiscal 2024, respectively, in connection with the $99.9 million aggregate principal amount of Convertible Notes Repurchases. See“2024 Convertible Senior Notes Repurchases”in the “Liquidity and Capital Resources” section of this MD&A for further discussion.
Previous report
Net earnings and net earnings per diluted common share declined during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024, resulting from a decrease in operating income, partially offset by an increase in other income (expense), which was favorably impacted by a $4.5 million gain on insurance settlement during the third quarter of fiscal 2025 and was negatively impacted by debt conversion expense of $1.4 million during the third quarter of fiscal 2024.
Previous report
Our fiscal 2024 first three quarters effective income tax rate was (74.9)%, and was negatively impacted by nondeductible debt conversion expense resulting from the Convertible Notes Repurchases and a $1.2 million reduction in deferred tax assets resulting from the related termination of the Capped Call Transactions (combined negative impact of 108 percentage points) and excess compensation subject to deduction limitations.
Previous report
Revenues and operating income for the Theatre division decreased during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024, primarily due to lower attendance driven by weaker performances from blockbuster film releases. The third quarter of fiscal 2025 included one additional operating day compared to the third quarter of fiscal 2024. During the first three quarters of fiscal 2025, revenues and operating income increased compared to the same period in fiscal 2024, primarily due to stronger performances from films resulting in increased attendance in the first half of fiscal 2025, partially offset by weaker film performances in the third quarter of fiscal 2025. The first three quarters of fiscal 2025 benefited from five additional operating days compared to the first three quarters of fiscal 2024, with four days occurring during the fiscal 2025 first quarter and one day occurring in the fiscal 2025 third quarter.
Previous report
Data received and compiled by us from Comscore also indicates that U.S. box office receipts increased 7.0% during the first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024, indicating that our increase of 2.4% in admission revenues for comparable theatres (excluding theatres closed during the past year) during the first three quarters of fiscal 2025 underperformed the industry by 4.6 percentage points. We believe our underperformance during the first three quarters of fiscal 2025 was attributable to strategic pricing decisions made during the release of blockbuster films during the first half of fiscal 2025 (we did not raise prices on most blockbuster films, unlike many national exhibitors) and our value promotions, resulting in lower average ticket price growth compared to other exhibitors. We believe our underperformance was also the result of an unfavorable film mix, with certain titles that were more appealing to audiences in other parts of the U.S. than our Midwestern markets.
Previous report
Total theatre attendance for our comparable theatres increased 1.7% during the first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024, resulting primarily from the stronger film slate in the second quarter of fiscal 2025. In addition, our total theatre attendance during the first three quarters of fiscal 2025 benefited from an increased number of operating days during the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024 due to the transition of our fiscal quarter as described above. On a calendar quarter basis (January 1 through September 30), total theatre attendance for our comparable theatres decreased 1.7% during first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024.
Previous report
Our average ticket price increased 0.7% during the first three quarters of fiscal 2025, compared to the first three quarters of fiscal 2024, resulting from an increased percentage of ticket sales coming from premium large format (PLF) screens, and strategic pricing changes introduced during the third quarter of fiscal 2025, partially offset by the unfavorable impact of the Everyday Matinee promotional offering for seniors and children introduced during the second quarter of fiscal 2024. The overall change in average ticket price favorably impacted our admission revenues of our comparable theatres by $1.2 million during the first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024.
Previous report
Hotels and resorts division revenues increased 1.6% during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024. The third quarter of fiscal 2025 included one additional operating day compared to the third quarter of fiscal 2024 due to the change in fiscal calendar as described above. During the prior year third quarter, division revenues were favorably impacted by approximately $3.3 million from the Republican National Convention (RNC) that was held in Milwaukee, Wisconsin. Division operating income during the third quarter of fiscal 2025 decreased $0.7 million compared to the third quarter of fiscal 2024, and was negatively impacted by an increase in depreciation expense of $0.5 million due to hotel renovations completed during fiscal 2024 and fiscal 2025.
Previous report
During the first three quarters of fiscal 2025, hotels and resorts division revenues increased 2.4% and benefited from five additional operating days compared to the first three quarters of fiscal 2024 (four of which occurred during the first quarter of fiscal 2025 and one occurring during the third quarter of fiscal 2025). Operating income declined $3.5 million during the first three quarters of fiscal 2025, compared to the first three quarters of fiscal 2024, due to a $4.1 million increase in depreciation expense partially offset by the favorable impact of the increase in revenues.
Previous report
Division total revenues before cost reimbursements increased 1.7% during the third quarter of fiscal 2025, compared to the third quarter of fiscal 2024, due to growth in food and beverage revenues driven by strong group business and increased occupancy at six of our seven owned hotels. Division total revenues before cost reimbursements increased 3.4% during the first three quarters of fiscal 2025, compared to the first three quarters of fiscal 2024, resulting primarily from an additional five operating days, growth in food and beverage revenues, as well as an increase in other revenues driven primarily by a group buyout of one condo hotel property during a portion of the first quarter, partially offset by the negative impact of the Hilton Milwaukee renovation.
Previous report
Our theatre division Adjusted EBITDA decreased during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024 due to decreased revenues and less operating leverage with the lower attendance, partially offset by decreases in film costs. Our hotels and resorts division Adjusted EBITDA increased slightly during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024 and was negatively impacted by changes in revenue mix, with higher margin rooms revenue remaining effectively flat and lower margin food and beverage revenue increasing. Adjusted EBITDA attributable to corporate items decreased during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024 due primarily to increased long-term incentive compensation expenses, personnel and benefits cost inflation, recruiting fees and an increase in professional fees.
Previous report
During the first three quarters of fiscal 2025, theatre division Adjusted EBITDA decreased compared to the first three quarters of fiscal 2024, due to increases in labor expenses, benefits costs, and maintenance expenses, partially offset by the favorable impact of higher revenue, including the impact of four additional operating days in the fiscal 2025 first quarter and one additional operating day in the fiscal 2025 third quarter, as described above. Our hotels and resorts Adjusted EBITDA increased during the first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024 due to higher revenue resulting from additional operating days and an increase in group business, partially offset by increased associate benefits and maintenance costs. Adjusted EBITDA attributable to corporate items decreased during the first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024 due primarily to increased long-term incentive compensation expenses, professional fees related to tax, audit, and legal services, personnel and benefits cost inflation, and recruiting fees.
Previous report
(1)Includes a gain from an insurance settlement of $4.5 million related to insured property damage at one theatre location in the third quarter of fiscal 2025.
Previous report
(3)Non-cash impairment charges related to one permanently closed theatre location in the second quarter of fiscal 2024.
Previous report
(5)Repair costs and insurance recoveries related to insured property damage at one theatre location that are non-operating in nature.
Previous report
(6)Debt conversion expense resulting from repurchases of $99.9 million aggregate principal amount of Convertible Notes. See Convertible Senior Notes Repurchasesin the “Liquidity and Capital Resources” section of this MD&A for further discussion.
Previous report
Principal payments on long-term debt were approximately $10.4 million during the first three quarters of fiscal 2025 compared to payments of $11.0 million during the first three quarters of fiscal 2024.
Previous report
During the first three quarters of fiscal 2024, we received $100.0 million of cash proceeds from the issuance of senior notes.
Previous report
During the first three quarters of fiscal 2024, we paid $102.5 million in cash for the Convertible Notes Repurchases (as defined below) and related transaction costs. We received $13.2 million in cash from the proportionate unwind of the Capped Call Transactions in connection with the Convertible Notes Repurchases during the first three quarters of fiscal 2024. See“2024 Convertible Senior Notes Repurchases”for further discussion below.
Previous report
2024 Convertible Senior Notes Repurchases
Previous report
During the first three quarters of fiscal 2024, we entered into separate, privately negotiated purchase agreements (the “Purchase Agreements”) with certain holders of its Convertible Notes. Under the terms of the Purchase Agreements, the holders agreed to exchange $99.9 million in aggregate principal amount of Convertible Notes for cash consideration of $121.5 million (or $103.3 million net of the cash we received in connection with the unwind of a portion of the Capped Call Transactions as discussed below) effected over three separate repurchase tranches (the “Convertible Notes Repurchases”). On May 8, 2024, we entered into the first repurchase transaction to retire $40.0 million of aggregate principal amount of Convertible Notes for $45.9 million in cash consideration plus accrued interest, with settlement occurring during the fiscal second quarter on June 14, 2024. On June 17, 2024, we entered into the second repurchase transaction to retire $46.4 million of aggregate principal amount of Convertible Notes for $55.2 million in cash consideration plus accrued interest, with settlement occurring during the fiscal third quarter on July 16, 2024. On
Previous report
September 19, 2024, we entered into the third repurchase transaction to retire $13.5 million of aggregate principal amount of Convertible Notes for $20.4 million in cash consideration plus accrued interest, with settlement occurring during the fiscal fourth quarter on October 11, 2024. Following settlement of the Convertible Note Repurchases on October 11, 2024, the aggregate principal amount of Convertible Notes outstanding was $0.1 million.
Previous report
In connection with the Convertible Notes Repurchases, we entered into unwind agreements with the Capped Call Counterparties to terminate a portion of the Capped Call Transactions equal to the notional amounts of the Convertible Notes Repurchases, and to receive aggregate cash of $18.3 million effected over three separate unwind tranches.
Previous report
During the third quarter and first three quarters of fiscal 2024, we incurred debt conversion expense of $1.4 million and $15.3 million, respectively, in connection with the Convertible Notes Repurchases. The unwind of the Capped Call Transactions resulted in a $4.7 million and $17.6 million increase in capital in excess of par within shareholders’ equity during the third quarter and first three quarters of fiscal 2024, respectively.
Reworded paragraphs (38)
Previous wording
Beginning on December 27, 2024, our fiscal year changed from a 52- or 53-week fiscal year ending on the last Thursday in December of each year to a fiscal year ending on December 31 of each year. Accordingly, effective for our fiscal year ending December 31, 2025, our quarterly results will be for three month periods ending March 31, June 30, September 30 and December 31 of each year. Fiscal 2025 is a 370 operating day year beginning on December 27, 2024 and ending on December 31, 2025 (comprised of five operating days between December 27-31, 2024, plus 365 operating days in calendar year 2025).
Current wording
Beginning on December 27, 2024, our fiscal year changed to a calendar fiscal year ending on December 31 of each year. Accordingly, effective for our fiscal year ending December 31, 2025, our quarterly results were three month periods ending March 31, June 30, September 30 and December 31. Fiscal 2025 was a 370 operating day year beginning on December 27, 2024 and ending on December 31, 2025 (comprised of five operating days between December 27-31, 2024, plus 365 operating days in calendar year 2025). Fiscal 2026 is a 365 operating day year beginning on January 1, 2026 and ending on December 31, 2026.
Previous wording
The third quarter of fiscal 2025 consisted of the three month period beginning on July 1, 2025 and ended on September 30, 2025 and included one additional operating day compared to the prior year quarter. The third quarter of fiscal 2024 consisted of the three month period beginning June 28, 2024 and ended on September 26, 2024. The first three quarters of fiscal 2025 consisted of the nine month period beginning on December 27, 2024 and ended on September 30, 2025 and included five additional operating days compared to the prior year period. The first three quarters of fiscal 2024 consisted of the nine month period beginning on December 29, 2023 and ended on September 26, 2024.
Current wording
The first quarter of 2026 consisted of the three month period beginning on January 1, 2026 and ended on March 31, 2026 and included five fewer operating days compared to the prior year fiscal first quarter. The first quarter of fiscal 2025 consisted of the three month period beginning December 27, 2024 and ended on March 31, 2025 (comprised of five operating days between December 27-31, 2024, plus 90 operating days in the calendar first quarter of 2025).
Previous wording
The following table sets forth revenues, operating income, other income (expense), net earnings (loss) and net earnings (loss) per diluted common share for the third quarter and first three quarters of fiscal 2025 and fiscal 2024 (in millions, except for per share and variance percentage data):
Current wording
The following table sets forth revenues, operating loss, other income (expense), net loss, and net loss per diluted common share for the first quarter of fiscal 2026 and fiscal 2025 (in millions, except for per share and variance percentage data):
Previous wording
Operating income during the third quarter of fiscal 2025 was favorably impacted by a $0.1 million gain on disposition of property, equipment and other assets compared to a $0.1 million loss on disposition of property, equipment and other assets during the third quarter of fiscal 2024. Operating loss during the first three quarters of fiscal 2025 was favorably impacted by a $1.3 million gain on disposition of property, equipment and other assets largely due to the sale of surplus land, compared to a $0.1 million loss during the first three quarters of fiscal 2024.
Current wording
Operating loss during the first quarter of fiscal 2026 improved by $1.2 million compared to the first quarter of fiscal 2025 due to increased revenues from our theatre division, partially offset by a $5.3 million unfavorable impact as a result of five fewer operating days, a decrease in revenue before cost reimbursements from our hotels and resorts division, and an increase in corporate expenses. Operating loss during the first quarter of fiscal 2026 was negatively impacted by a $0.1 million loss on disposition of property, equipment and other assets, compared to a $1.4 million gain on disposition of property, equipment and other assets related to the sale of surplus land during the first quarter of fiscal 2025.
Previous wording
Corporate expenses during the third quarter of fiscal 2025 decreased $0.1 million compared to the third quarter of fiscal 2024 due to a favorable $1.0 million decrease in non-cash stock compensation expense, partially offset by increases in depreciation expense, long-term incentive compensation expenses, professional fees, and personnel and benefits cost inflation. Corporate expenses during the first three quarters of fiscal 2025 increased $2.5 million compared to the first three quarters of fiscal 2024 due to increases in depreciation, long-term incentive compensation expenses, professional fees related to tax, audit and legal services, and personnel and benefits cost inflation.
Current wording
Corporate expenses during the first quarter of fiscal 2026 increased $0.4 million compared to the first quarter of fiscal 2025 due to increased non-cash stock compensation, incentive compensation expenses, personnel and benefits cost inflation, and director compensation, partially offset by decreased professional fees related to tax, audit, and legal services.
Previous wording
Our interest expense totaled $2.8 million and $8.6 million for the third quarter and first three quarters of fiscal 2025, respectively, compared to $3.1 million and $8.2 million for the third quarter and first three quarters of fiscal 2024, respectively. The decrease in interest expense during the third quarter of fiscal 2025 was primarily due to decreased borrowings and a decrease in non-cash amortization of deferred financing costs. The increase in interest expense during the first three quarters of fiscal 2025 was primarily due to increased borrowings and higher interest rates, partially offset by a decrease in non-cash amortization of deferred financing costs. Changes in our borrowing levels due to variations in our operating results, capital expenditures, acquisition opportunities (or the lack thereof) and asset sale proceeds, among other items, may impact, either favorably or unfavorably, our actual reported interest expense in future periods, as may changes in short-term interest rates.
Current wording
Our interest expense totaled $2.6 million for the first quarter of fiscal 2026, compared to $2.8 million for the first quarter of fiscal 2025. The decrease in interest expense during the first quarter of fiscal 2026 was primarily due to decreased borrowings and a decrease in non-cash amortization of deferred financing costs. Changes in our borrowing levels due to variations in our operating results, capital expenditures, acquisition opportunities (or the lack thereof) and asset sale proceeds, among other items, may impact, either favorably or unfavorably, our actual reported interest expense in future periods, as may changes in short-term interest rates.
Previous wording
Net earnings (loss) and net earnings (loss) per diluted common share improved during the first three quarters of fiscal 2025 compared to the first three quarters of fiscal 2024 resulting from a decrease in operating income, offset by an increase in other income (expense), which was favorably impacted by a $4.5 million gain on insurance settlement during the first three quarters of fiscal 2025. Net earnings (loss) and net earnings (loss) per diluted common share was negatively impacted by debt conversion expense of $15.3 million during the first three quarters of fiscal 2024.
Current wording
Net loss and net loss per diluted common share improved during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025, resulting primarily from a decrease in operating loss as described above.
Previous wording
We reported income tax expense of $8.0 million for the third quarter of fiscal 2025 compared to expense of $5.4 million during the third quarter of fiscal 2024. We reported income tax expense of $3.3 million for the first three quarters of fiscal 2025 compared to expense of $3.8 million for the first three quarters of fiscal 2024. Our fiscal 2025 first three quarters effective income tax rate was 33.2% and was negatively impacted by excess compensation subject to deduction limitations. The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, had an insignificant impact on our effective tax rate. We anticipate that our effective income tax rate for fiscal 2025 may be in the 32% to 34% range, excluding any potential changes in federal or state income tax rates, valuation allowance adjustments or other one-time tax benefits. Our actual fiscal 2025 effective income tax rate may be different from our estimated quarterly rates depending upon actual facts and circumstances.
Current wording
We reported income tax benefit of $7.6 million for the first quarter of fiscal 2026 compared to benefit of $7.4 million for the first quarter of fiscal 2025. Our fiscal 2026 first quarter effective income tax rate was 33.2% compared to our fiscal 2025 first quarter effective income tax rate of 30.4%. The effective income tax rate in both fiscal 2026 first quarter and fiscal 2025 first quarter were negatively impacted by excess compensation subject to deduction limitations. We anticipate that our effective income tax rate for fiscal 2026 may be in the 32% to 34% range, excluding any potential changes in federal or state income tax rates, valuation allowance adjustments or other one-time tax benefits. Our actual fiscal 2026 effective income tax rate may be different from our estimated quarterly rates depending upon actual facts and circumstances.
Previous wording
The following table sets forth revenues, operating income and operating margin for our theatre division for the third quarter and first three quarters of fiscal 2025 and fiscal 2024 (in millions, except for variance percentage and operating margin):
Current wording
The following table sets forth revenues, operating loss and operating margin for our theatre division for the first quarter of fiscal 2026 and fiscal 2025 (in millions, except for variance percentage and operating margin):
Previous wording
The following table provides a further breakdown of the components of revenues for the theatre division for the third quarter and first three quarters of fiscal 2025 and fiscal 2024 (in millions, except for variance percentage):
Current wording
The following table provides a further breakdown of the components of revenues for the theatre division for the first quarter of fiscal 2026 and fiscal 2025 (in millions, except for variance percentage):
Previous wording
According to data received from Comscore (a national box office reporting service for the theatre industry) and compiled by us to evaluate our fiscal 2025 third quarter and first three quarters results, U.S. box office receipts decreased 12.0% during our fiscal 2025 third quarter compared to our fiscal 2024 third quarter, indicating that our decrease in admission revenues for comparable theatres (excluding theatres closed during the past year) of 15.8% during the third quarter of fiscal 2025 underperformed the industry by 3.8 percentage points. We believe our under performance in the third quarter of fiscal 2025 was largely attributable to an unfavorable film mix, with certain titles that were more appealing to audiences in other parts of the U.S. than in our Midwestern markets, compared to the third quarter of fiscal 2024 that included a favorable mix of films such as Deadpool & Wolverine, Despicable Me 4, Twisters, Inside Out 2, and It Ends With Us that played exceptionally well in our Midwestern markets. Unlike the third quarter of fiscal 2024, the top five films of the third quarter of fiscal 2025 did not include any family or animated films, which generally play well in our circuit. Conversely, we believe that new strategic pricing changes made during the third quarter of fiscal 2025 favorably contributed to our performance and partially offset the impact of an unfavorable film mix.
Current wording
According to data received from Comscore (a national box office reporting service for the theatre industry) and compiled by us to evaluate our fiscal 2026 first quarter results, U.S. box office receipts increased 5.0% during our fiscal 2026 first quarter compared to our fiscal 2025 first quarter, indicating that our increase in admission revenues for comparable theatres (excluding theatres closed during the past year) of 9.8% during the first quarter of fiscal 2026 outperformed the industry by 4.8 percentage points. On a calendar quarter basis (January 1st through March 31st), U.S. box office receipts increased 21.4%, indicating that our increase in admissions revenues for our comparable theatres of 29.0%, outperformed the industry by 7.6 percentage points. We believe our over-performance in the first quarter of fiscal 2026 was largely attributable to strategic pricing changes made late during the second quarter of fiscal 2025, resulting in higher average ticket price growth compared to other exhibitors. We believe our outperformance was also the result of a favorable film mix, that included family films such as Hoppers, Zootopia 2, GOAT, and Avatar: Fire and Ash, that were more appealing to audiences in our Midwestern markets than in other parts of the U.S.
Previous wording
Additional data received and compiled by us from Comscore indicates our admission revenues at comparable theatres during both the third quarter and first three quarters of fiscal 2025 represented approximately 2.9% of the total admission revenues in the U.S. (commonly referred to as market share in our industry), compared to 3.1% and 3.0% during the third quarter and first three quarters of fiscal 2024, respectively. Our goal is to outperform the industry, but our ability to do so in any given quarter will likely be partially dependent upon film mix, pricing strategies, weather and the competitive landscape in our markets.
Current wording
Additional data received and compiled by us from Comscore indicates our admission revenues at comparable theatres during the first quarter of fiscal 2026 represented approximately 3.1% of the total admission revenues in the U.S. (commonly referred to as market share in our industry), compared to 3.0% during the first quarter of fiscal 2025. Our goal is to outperform the industry, but our ability to do so in any given quarter will likely be partially dependent upon film mix, pricing strategies, weather and the competitive landscape in our markets.
Previous wording
Total theatre attendance for our comparable theatres decreased 18.7% during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024, which was attributable to lower box office performances from the top five films. During the third quarter of fiscal 2025, there were 32 wide-release films (films shown in over approximately 1,500 theatres in the U.S.) compared to 29 wide-release films during the third quarter of fiscal 2024. On a calendar quarter basis (July 1 through September 30), total theatre attendance for our comparable theatres decreased 17.7% during the third quarter of 2025 compared to the third quarter of 2024.
Current wording
Total theatre attendance for our comparable theatres increased 1.9% during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025, which was attributable to increased box office performances from films and negatively impacted by five less operating days described above. During the first quarter of fiscal 2026, there were 30 wide-release films (films shown in over approximately 1,500 theatres in the U.S., excluding re-release films) compared to 27 wide-release films during the first quarter of fiscal 2025. On a calendar quarter basis (January 1 through March 31), total theatre attendance for our comparable theatres increased 19.1% during the first quarter of 2026 compared to the first quarter of 2025.
Previous wording
Our highest grossing films during the fiscal 2025 third quarter included Superman, Jurassic World: Rebirth, The Fantastic Four: First Steps, The Conjuring: Last Rites, and Weapons. Our top five films during our fiscal 2025 third quarter accounted for 53% of our total box office results, compared to 66% for the top five films during the third quarter of fiscal 2024, both expressed as a percentage of the total admission revenues for the relevant period. An increased concentration of blockbuster films during a given quarter often has the effect of increasing our film rental costs during the period, as generally the better a particular film performs, the greater the film rental cost tends to be as a percentage of box office receipts. As a result of a less concentrated film slate, our overall film cost as a percentage of admission revenues decreased during the third quarter of fiscal 2025 compared to the same period in the prior fiscal year.
Current wording
Our highest grossing films during the fiscal 2026 first quarter included Project Hail Mary, Hoppers, Avatar: Fire and Ash, Scream 7, and Zootopia 2. Our top five films during our fiscal 2026 first quarter accounted for 40% of our total box office results, compared to 45% for the top five films during the first quarter of fiscal 2025, both expressed as a percentage of the total admission revenues for the relevant period. An increased reliance on just a few blockbuster films during a given quarter often has the effect of increasing our film rental costs during the period, as generally the better a particular film performs, the greater the film rental cost tends to be as a percentage of box office receipts. However, during the first quarter of 2026, the film slate was stronger, with a broader range of films performing well, resulting in fewer lower cost films to offset higher cost blockbuster films. Despite the more diverse film slate, our overall film cost as a percentage of admission revenues during the first quarter of fiscal 2026 was flat compared to the same period in the prior fiscal year.
Previous wording
Our average ticket price increased 3.6% during the third quarter of fiscal 2025, compared to the third quarter of fiscal 2024. Our average ticket price during the third quarter of fiscal 2025 was favorably impacted by an increased percentage of ticket sales coming from premium large format (PLF) screens and strategic pricing changes. These increases were partially offset by an unfavorable ticket mix, including an increase in the percentage of our attendance coming from Value Tuesday. The overall change in average ticket price favorably impacted our admission revenues of our comparable theatres by $2.0 million during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024.
Current wording
Our average ticket price increased 7.8% during the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. Our average ticket price during the first quarter of fiscal 2026 was favorably impacted by an increased percentage of ticket sales coming from premium large format (PLF) screens, strategic pricing changes, and a favorable ticket mix. These increases were partially offset by an increase in the percentage of our attendance coming from Value Tuesday. The overall change in average ticket price favorably impacted our admission revenues of our comparable theatres by $3.2 million during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025.
Previous wording
Our average concession revenues per person increased by 2.1% and 2.9% during the third quarter and first three quarters of fiscal 2025, respectively, compared to the third quarter and first three quarters of fiscal 2024, resulting from an increase in movie merchandise sales and menu price increases. The overall increase in average concession revenues per person favorably impacted our concession revenues of our comparable theatres by $1.2 million and $4.4 million during the third quarter and first three quarters of fiscal 2025, respectively, compared to the third quarter and first three quarters of fiscal 2024.
Current wording
Our average concession revenues per person increased by 2.4% during the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025, resulting from increases in movie-themed merchandise sales, concessions menu prices, and the number of concessions transactions per person or incidence rate. The overall increase in average concession revenues per person favorably impacted our concession revenues of our comparable theatres by $1.0 million during the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025.
Previous wording
Other revenues during the third quarter of fiscal 2025 decreased by $1.9 million compared to the third quarter of fiscal 2024, due to the impact of decreased attendance on internet surcharge ticketing fees and preshow and in-app advertising revenue, partially offset by an increase in average internet surcharge ticketing fees per person. Other revenues during the first three quarters of fiscal 2025 increased by $2.3 million compared to the first three quarters of fiscal 2024 due to the impact of increased attendance on internet surcharge ticketing fees and preshow and in-app advertising revenue, as well as an increase in average internet surcharge ticketing fees per person.
Current wording
Other revenues during the first quarter of fiscal 2026 increased by $0.2 million compared to the first quarter of fiscal 2025, due largely to the impact of increased attendance on internet surcharge ticketing fees and preshow and in-app advertising revenue.
Previous wording
We ended the third quarter of fiscal 2025 with a total of 971 company-owned screens in 77 theatres and 14 managed screens at one theatre, compared to 981 company-owned screens in 78 theatres and 14 managed screens at one theatre at the end of the third quarter of fiscal 2024. We made decisions to close underperforming theatres during fiscal 2024 and fiscal 2025, including one leased theatre in the second quarter of fiscal 2024, and one leased Movie Tavern theatre in the first quarter of fiscal 2025. During the third quarter of fiscal 2024, we added one theatre that we manage for the owner of a lifestyle shopping center.
Current wording
We ended the first quarter of fiscal 2026 and fiscal 2025 with a total of 971 company-owned screens in 77 theatres and 14 managed screens at one theatre, during both periods. We made the decision to close one underperforming leased Movie Tavern theatre during first quarter of fiscal 2025.
Previous wording
The following table sets forth revenues, operating income and operating margin for our hotels and resorts division for the third quarter and first three quarters of fiscal 2025 and fiscal 2024 (in millions, except for variance percentage and operating margin):
Current wording
The following table sets forth revenues, operating loss and operating margin for our hotels and resorts division for the first quarter of fiscal 2026 and fiscal 2025 (in millions, except for variance percentage and operating margin):
Previous wording
The following table provides a further breakdown of the components of revenues for the hotels and resorts division for the third quarter and first three quarters of fiscal 2025 and fiscal 2024 (in millions, except for variance percentage):
Current wording
The following table provides a further breakdown of the components of revenues for the hotels and resorts division for the first quarter of fiscal 2026 and fiscal 2025 (in millions, except for variance percentage):
Previous wording
The following table sets forth certain operating statistics for the third quarter and first three quarters of fiscal 2025 and fiscal 2024, including our average occupancy percentage (number of occupied rooms as a percentage of available rooms), our average daily room rate, or ADR, and our total revenue per available room, or RevPAR, for comparable company-owned properties:
Current wording
The following table sets forth certain operating statistics for the first quarter of fiscal 2026 and fiscal 2025, including our average occupancy percentage (number of occupied rooms as a percentage of available rooms), our average daily room rate, or ADR, and our total revenue per available room, or RevPAR, for comparable company-owned properties:
Previous wording
RevPAR decreased at six of our seven comparable company-owned properties during the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024, driven mainly by decreased average daily rates which were significantly higher at our three Milwaukee hotels in the prior year due to the impact of the RNC. Group business as a percentage of our mix of business represented approximately 42.5% of our total rooms revenue in the third quarter of fiscal 2025, compared to approximately 47.3% during the third quarter of fiscal 2024 which included higher group business due to the RNC. Non-group pricing increased in some of our major markets during the third quarter of fiscal 2025, primarily due to increased leisure demand.
Current wording
RevPAR increased at three of our seven comparable company-owned properties during the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025, driven mainly by increased occupancy rates. Group business as a percentage of our mix of business represented approximately 35.6% of our total rooms revenue in the first quarter of fiscal 2026, compared to approximately 34.6% during the first quarter of fiscal 2025. Non-group transient pricing decreased in some of our major markets during the first quarter of fiscal 2026, primarily due to less rate compression with the Hilton Milwaukee fully operational compared to the prior year when rooms were out of service due to the renovation, as well as increased competition in one market.
Previous wording
According to data received from Smith Travel Research and compiled by us in order to evaluate our fiscal 2025 third quarter and first three quarters results, comparable “upper upscale” hotels—hotels identified as our industry— throughout the United States experienced a decrease in RevPAR of 1.3% during our fiscal 2025 third quarter compared to our fiscal 2024 third quarter, leading us to believe we slightly underperformed the industry during the fiscal 2025 third quarter by approximately 0.2 percentage points. We believe our underperformance during the third quarter was largely driven by the nonrecurring favorable impact of the RNC on the third quarter of fiscal 2024 which disproportionately affected our largest market and was not observed in other parts of the country. During the first three quarters of fiscal 2025, comparable “upper upscale” hotels experienced RevPAR growth of 0.3%, compared to the first three quarters of fiscal 2024, leading us to believe we underperformed the industry during the first three quarters of fiscal 2025 by approximately 2.1 percentage points. We believe our underperformance during the first three quarters of fiscal 2025 resulted primarily from the unfavorable impact of the Hilton Milwaukee renovation and group displacement as a result of the reduced capacity during the first half of fiscal 2025. We estimate that the Hilton Milwaukee renovation negatively impacted our RevPAR growth by approximately 2.0 percentage points during the first three quarters of fiscal 2025.
Current wording
According to data received from Smith Travel Research and compiled by us in order to evaluate our fiscal 2026 first quarter results, comparable “upper upscale” hotels—hotels identified as our industry— throughout the United States experienced an increase in RevPAR of 3.9% during our fiscal 2026 first quarter compared to our fiscal 2025 first quarter, leading us to believe we outperformed the industry during the fiscal 2026 first quarter by approximately 9.8 percentage points. We believe our outperformance during the first quarter of fiscal 2026 was partially driven by the favorable impact of the Hilton Milwaukee hotel being fully operational, compared to the first quarter of fiscal 2025 when the hotel was undergoing significant renovations.
Previous wording
Data received from Smith Travel Research for our various “competitive sets”—hotels identified in our specific markets that we deem to be competitors to our hotels—indicates that these hotels experienced a decrease in RevPAR of 6.7% during our fiscal 2025 third quarter, again compared to our fiscal 2024 third quarter. Therefore, we outperformed our competitive sets during the third quarter of fiscal 2025 by approximately 5.2 percentage points. We believe our outperformance to our competitive sets during the third quarter of fiscal 2025 resulted primarily from strong performance in our group customer segment, coupled with a strong summer golf season at Grand Geneva Resort & Spa. During the first three quarters of fiscal 2025, hotels in our competitive sets experienced a decrease in RevPAR of 1.6%, indicating that we slightly underperformed our competitive set hotels by 0.2 percentage points. We believe the underperformance to our competitive sets during the first three quarters of fiscal 2025 resulted primarily from group displacement at the Hilton Milwaukee while under renovation during the first half of fiscal 2025, which we believe unfavorably impacted our RevPAR growth while favorably impacting competitive hotels RevPAR growth. After adjusting for the estimated impact of the Hilton Milwaukee renovation, we believe our hotels outperformed their competitive sets during the first three quarters of fiscal 2025 by approximately 2.1 percentage point.
Current wording
Data received from Smith Travel Research for our various “competitive sets”—hotels identified in our specific markets that we deem to be competitors to our hotels—indicates that these hotels experienced a decrease in RevPAR of 2.9% during our fiscal 2026 first quarter, again compared to our fiscal 2025 first quarter. Therefore, we significantly outperformed our competitive sets during the first quarter of fiscal 2026 by approximately 16.6 percentage points. We believe our outperformance to our competitive sets during the first quarter of fiscal 2026 resulted primarily from strong performance in our group customer segment, in particular at our renovated hotel properties. We believe the outperformance to our competitive sets during the first quarter of fiscal 2026 was also partially attributable to the renovation of Hilton Milwaukee in the prior year period which we believe unfavorably impacted our RevPAR in the first quarter of fiscal 2025 while favorably impacting competitive hotels. After adjusting for the estimated impact of the Hilton Milwaukee renovation on the prior year, we believe our hotels outperformed their competitive sets during the first quarter of fiscal 2026 by approximately 11.5 percentage points.
Previous wording
As of the date of this report, our group room revenue bookings for fiscal 2025 - commonly referred to in the hotels and resorts industry as “group pace” - is running approximately 4% behind where we were at the same time last year. Group room revenue bookings for fiscal 2026 is running approximately 14% ahead of where we were at the same time in fiscal 2024 for fiscal 2025. Banquet and catering revenue pace for fiscal 2025 is running approximately 14% ahead of where we were at the same time last year. Banquet and catering revenue pace for fiscal 2026 is running approximately 13% ahead of where we were at the same time in fiscal 2024 for fiscal 2025.
Current wording
As of the date of this report, our group room revenue bookings for fiscal 2026 - commonly referred to in the hotels and resorts industry as “group pace” - is running approximately 5% ahead of where we were at the same time last year. Group room revenue bookings for fiscal 2027 is running in-line with where we were at the same time in fiscal 2025 for fiscal 2026. Banquet and catering revenue pace for fiscal 2026 is running in-line with where we were at the same time last year. Banquet and catering revenue pace for fiscal 2027 is running approximately 12% ahead of where we were at the same time in fiscal 2025 for fiscal 2026.
Previous wording
The following table sets forth Adjusted EBITDA by reportable operating segment for the third quarter and first three quarters of fiscal 2025 and fiscal 2024 (in millions, except for variance percentage):
Current wording
The following table sets forth Adjusted EBITDA by reportable operating segment for the first quarter of fiscal 2026 and fiscal 2025 (in millions, except for variance percentage):
Previous wording
(2)Non-cash expense related to share-based compensation programs.
Current wording
(1)Non-cash expense related to share-based compensation programs.
Previous wording
(4)Reflects non-recurring costs related to the closure and exit of one theatre location in the first quarter of fiscal 2025 and one theatre location in the second quarter of fiscal 2024.
Current wording
(2)Reflects non-recurring costs related to the closure and exit of one theatre location in the first quarter of fiscal 2025.
Previous wording
(7)Other non-recurring includes professional fees related to convertible debt repurchase transactions.
Current wording
(3)Other non-recurring includes professional fees related to the sale of historic tax credits resulting from the renovation at Hilton Milwaukee.
Previous wording
Our movie theatre and hotels and resorts businesses each generate significant and consistent daily amounts of cash, subject to previously-noted seasonality, because each segment’s revenue is derived predominantly from consumer cash purchases. We believe that these relatively consistent and predictable cash sources, as well as the availability of unused credit lines, would be adequate to support the ongoing operational liquidity needs of our businesses. However, our cash position may fluctuate from time-to-time based on seasonality of our businesses, the timing of interest payments on our debt as well as timing of payment of other operating expenses that are paid on an infrequent basis.
Current wording
We believe that these relatively consistent and predictable cash sources, as well as the availability of unused credit lines, would be adequate to support the ongoing operational liquidity needs of our businesses. However, our cash position may fluctuate from time-to-time based on seasonality of our businesses, the timing of interest payments on our debt as well as timing of payment of other operating expenses that are paid on an infrequent basis.
Previous wording
Maintaining and protecting a strong balance sheet has always been a core value of The Marcus Corporation during our 90-year history and our financial position remains strong. As of September 30, 2025, we had a cash balance of approximately $7.4 million, $206.6 million of availability under our $225 million revolving credit facility, our debt-to-capitalization ratio was 0.26, and our net leverage ratio was 1.69x net debt to Adjusted EBITDA. With our strong liquidity position combined with cash generated from operations, we believe we have sufficient liquidity to meet our obligations as they come due and to comply with our debt covenants for at least 12 months from the issuance date of the consolidated financial statements, as well as fund our longer-term capital requirements.
Current wording
Maintaining and protecting a strong balance sheet has always been a core value of The Marcus Corporation during our 90-year history and our financial position remains strong. As of March 31, 2026, we had a cash balance of approximately $11.2 million, $194.3 million of availability under our $225 million revolving credit facility, our debt-to-capitalization ratio was 0.28, and our net leverage ratio was 1.70x net debt to Adjusted EBITDA. With our strong liquidity position combined with cash generated from operations, we believe we have sufficient liquidity to meet our obligations as they come due and to comply with our debt covenants for at least 12 months from the issuance date of the consolidated financial statements, as well as fund our longer-term capital requirements.
Previous wording
Net cash provided by operating activities totaled $35.4 million during the first three quarters of fiscal 2025, compared to net cash provided by operating activities of $51.4 million during the first three quarters of fiscal 2024. The $16.0 million decrease in net cash provided by operating activities was primarily due to a $14.4 million unfavorable impact from the seasonal timing of payments of accounts payable, a $3.0 million increase in prepaid and other assets and a $15.3 million non-cash debt conversion expense in the prior year that did not recur, partially offset by a $15.5 million increase in net earnings, increases in non-cash depreciation and amortization, and favorable timing of collections of accounts receivable.
Current wording
Net cash used in operating activities totaled $15.2 million during the first quarter of fiscal 2026, compared to net cash used in operating activities of $35.3 million during the first quarter of fiscal 2025. The $20.1 million decrease in net cash used by operating activities was primarily due to an $8.9 million favorable impact from the timing of payments of accounts payable, a $1.9 million decrease in prepaid and other assets, a $4.1 million increase in accrued compensation, $3.0 million in proceeds from the sale of historic tax credits, and a $1.5 million decrease in net loss.
Previous wording
Net cash used in investing activities during the first three quarters of fiscal 2025 totaled $46.6 million, compared to net cash used in investing activities of $58.4 million during the first three quarters of fiscal 2024. The decrease in net cash used in investing activities of $11.8 million was the result of a decrease in net contributions to hotel joint ventures in the prior year period that did not recur, $8.2 million in proceeds from the sale of trading securities during the first three quarters of fiscal 2025 compared to $1.1 million in purchases of trading securities in the first three quarters of fiscal 2024, and $4.5 million in insurance settlement proceeds during the first three quarters of fiscal 2025, partially offset by an increase of $7.0 million in capital expenditures. Total cash capital expenditures (including normal continuing capital maintenance and renovation projects) totaled $60.8 million during the first three quarters of fiscal 2025 compared to $53.8 million during the first three quarters of fiscal 2024. In fiscal 2024, we contributed $5.6 million for the purchase of joint venture interests in The Lofton Hotel, partially offset by a $1.5 million sale of joint venture interests in The Lofton Hotel to other minority investors.
Current wording
Net cash used in investing activities during the first quarter of fiscal 2026 totaled $6.6 million, compared to net cash used in investing activities of $22.8 million during the first quarter of fiscal 2025. The decrease in net cash used in investing activities of $16.2 million was the result of a decrease of $16.4 million in capital expenditures. Total cash capital expenditures (including normal continuing capital maintenance and renovation projects) totaled $6.6 million during the first quarter of fiscal 2026 compared to $23.0 million during the first quarter of fiscal 2025.
Previous wording
Fiscal 2025 first three quarters cash capital expenditures included approximately $18.4 million incurred in our theatre division, primarily related to normal maintenance capital projects. We incurred capital expenditures in our hotels and resorts division during the first three quarters of fiscal 2025 of approximately $39.5 million, including costs related to guest room renovations at Hilton Milwaukee, golf short course construction at Grand Geneva Resort & Spa and normal maintenance capital projects. We incurred corporate capital expenditures during the first three quarters of fiscal 2025 of approximately $2.9 million, which includes $1.2 million for the purchase of land acquired in a 1031 tax-deferred exchange for future development, and the final costs related to office construction for the relocation of our corporate and divisional headquarters that occurred during fiscal 2024.
Current wording
Fiscal 2026 first quarter cash capital expenditures included approximately $3.8 million incurred in our theatre division, including construction related to insured property damage at one theatre location, and normal maintenance capital projects. We incurred capital expenditures in our hotels and resorts division during the first quarter of fiscal 2026 of approximately $2.7 million, including several smaller capital improvement projects and normal maintenance capital projects. We incurred corporate capital expenditures during the first quarter of fiscal 2026 of approximately $0.1 million, related to technology implementation.
Previous wording
Net cash used in financing activities during the first three quarters of fiscal 2025 totaled $22.9 million compared to net cash used in financing activities of $19.8 million during the first three quarters of fiscal 2024. During the first three quarters of fiscal 2025, we increased our borrowings under our revolving credit facility as needed to fund our cash needs and used excess cash to reduce our borrowings under our revolving credit facility. As short-term revolving credit facility borrowings became due, we replaced them as necessary with new short-term revolving credit facility borrowings. As a result, we added $156.0 million of new short-term revolving credit facility borrowings, and we made $143.0 million of repayments on short-term revolving credit facility borrowings during the first three quarters of fiscal 2025 (net $13.0 million increase in borrowings on our credit facility). We ended the third quarter of fiscal 2025 with $13.0 million of outstanding borrowings under our revolving credit facility. During the first three quarters of fiscal 2024, we increased our borrowings under our revolving credit facility as needed to fund our cash needs and used excess cash to reduce our borrowings under our revolving credit facility. As a result, we added $81.0 million of new short-term revolving credit facility borrowings, and we made $81.0 million of repayments on short-term revolving credit facility borrowings during the first three quarters of fiscal 2024 (net zero increase in borrowings on our credit facility).
Current wording
Net cash provided by financing activities during the first quarter of fiscal 2026 totaled $9.6 million compared to net cash provided by financing activities of $29.3 million during the first quarter of fiscal 2025. During the first quarter of fiscal 2026, we increased our borrowings under our revolving credit facility as needed to fund our cash needs and used excess cash to reduce our borrowings under our revolving credit facility. As short-term revolving credit facility borrowings became due, we replaced them as necessary with new short-term revolving credit facility borrowings. As a result, we added $51.0 million of new short-term revolving credit facility borrowings, and we made $36.0 million of repayments on short-term revolving credit facility borrowings during the first quarter of fiscal 2026 (net $15.0 million increase in borrowings on our credit facility). We ended the first quarter of fiscal 2026 with $25.0 million of outstanding borrowings under our revolving credit facility. During the first quarter of fiscal 2025, we increased our borrowings under our revolving credit facility as needed to fund our cash needs and used excess cash to reduce our borrowings under our revolving credit facility. As a result, we added $69.0 million of new short-term revolving credit facility borrowings, and we made $29.0 million of repayments on short-term revolving credit facility borrowings during the first quarter of fiscal 2025 (net $40.0 million increase in borrowings on our credit facility).
Previous wording
Our debt-to-capitalization ratio (excluding our finance and operating lease obligations) was 0.26 at September 30, 2025, compared to 0.26 at December 26, 2024.
Current wording
Our debt-to-capitalization ratio (excluding our finance and operating lease obligations) was 0.28 at March 31, 2026, compared to 0.26 at December 31, 2025.
Previous wording
During the first three quarters of fiscal 2025, we repurchased 1.0 million shares of our common stock for $16.2 million in the open market, compared to 0.7 million shares of our common stock for $9.7 million in the open market during the first three quarters of fiscal 2024. As of September 30, 2025, approximately 0.7 million shares remained available for repurchase under prior Board of Directors repurchase authorizations. Subsequent to the end of the third quarter of fiscal 2025, on October 30, 2025, the Board of Directors approved the repurchase of up to 4.0 million additional shares of the Company’s common stock, resulting in 4.7 million shares remaining available for repurchase under Board of Directors repurchase authorizations. Under these authorizations, we may repurchase shares of our common stock from time to time in the open market, pursuant to privately-negotiated transactions or otherwise, depending upon a number of factors, including prevailing market conditions.
Current wording
During the first quarter of fiscal 2026, we repurchased 0.1 million shares of our common stock for $1.3 million in the open market, compared to 0.4 million shares of our common stock for $7.1 million in the open market during the first quarter of fiscal 2025. As of March 31, 2026, approximately 4.4 million shares remained available for repurchase under prior Board of Directors repurchase authorizations. Under these authorizations, we may repurchase shares of our common stock from time to time in the open market, pursuant to privately-negotiated transactions or otherwise, depending upon a number of factors, including prevailing market conditions.
Previous wording
Dividends paid during the first three quarters of fiscal 2025 were $6.8 million. Dividends paid during the first three quarters of fiscal 2024 were $6.6 million. We have the ability to declare quarterly dividend payments and/or repurchase shares of our common stock in the open market as we deem appropriate.
Current wording
Dividends paid during the first quarter of fiscal 2026 were $2.4 million. Dividends paid during the first quarter of fiscal 2025 were $2.2 million. We have the ability to declare quarterly dividend payments and/or repurchase shares of our common stock in the open market as we deem appropriate.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Our movie theatre and hotels and resorts businesses each generate significant and consistent daily amounts of cash, subject to previously-noted seasonality, because each segment’s revenue is derived predominantly from consumer cash purchases.