The Marcus Corporation (MCS) 3 Nov 222022 Q3 Earnings call transcript

Good morning, everyone and welcome to The Marcus Corporation Third Quarter Earnings Conference Call. My name is Nadia and I will be your operator for today. [Operator Instructions] As a reminder, this conference is being recorded.

Joining us today are Greg Marcus, President and Chief Executive Officer and Chad Paris, Chief Financial Officer and Treasurer of the Marcus Corporation. At this time, I’d like to turn the program over to Mr. remarks. opening his for Paris Please go sir. ahead,

Litigation number Thank XXXX liability by third and by all that make of Securities good call intend The on need the morning fiscal our stating safe a to plan qualify to which welcome we forward-looking quarter today, established Act. Reform begin statements our and to you of to conference for we I call. from harbors Private

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the Our and heading, uncertainties, the our statements," undue Listeners results, morning, our place forward-looking to which ability our forward-looking you fiscal uncertainties "forward-looking are XXXX our issued on our form statements differ are can our XX-K, report may results risks to not in which reliance subject on could identified website. the to impact in on certain factor under are risks actual quarter in achieve expected. this included cautioned release to which our we and fiscal XXXX announcing risk materially access statements, forward-looking third expectations annual SEC’s those from section of the The press cause and statements.

we as all made when or circumstances. any of forward-looking website obligation at the subsequent statements statements events We of Regulation www.marcuscorp.com. disclaim G to will only such applicable forward-looking date also conference The call to conference made post disclosures on and call, are reflect our publicly during update this this

at impact investors, our post stakeholders. news releases that customers, In other our other and regarding routinely addition, developments information we vendors, and company

company. marcuscorp.com website of important source should information regarding through our You an look as our

provided reconciliation is measure nearest the in release evaluating release. and performance We disclosures EBITDA in earnings non-GAAP of A use our to of provided in refer gap press also its used measure adjusted EBITDA, adjusted a the to today’s you today’s the limitations. regarding we

turn with We’ll This I’ll begin. sheet by liquidity. morning remarks his for minutes our results over let’s the ahead. a few businesses us, on what the behind that and sharing seeing then spending quarter Greg start will focus balance I with then Now who you, will discuss third our and up are open the today where we’re questions. call prepared call and our to from

another see businesses leisure we group year-over-year, hotels, generating both progress and morning, business during outperforming This of businesses we recovery comeback, with reported trend while strong, second our quarter path remained improved the quarter. our to a our results continued started of competition. both their on In travel its

we had, turned On quarter. a limited continue as enthusiasm from the movies theater side, number our releases to but that the for during we were we challenged who expected, see film we strong the by of out customers

last prior year, million to Consolidated EBITDA million over the $XX nearly nearly increased million quarter, third $XX you segment unallocated breakdown of majority prior see divisions hotel of in our quarter press in to the our release, corporate revenues year. from nearly increased $XXX this provided the EBITDA our a Consolidated year. that of the provided from where in third $XXX XX% million by expenses. division numbers year adjusted adjusted million can the year We $XX growing to last third a this from quarter

was by gains reduction from and Below debt partially last quarter by expense As improved operating interest to short-term borrowings quarter compared of exceeded in that expense decrease reduced $XXX,XXX, in on of interest our sales a results. offset assets operating year. primarily our lower from decreased business income, resulting a The this we discuss today, quarter phenomenal our will approximately had third hotels benefiting all expectations. our

segment our results. to Turning

leisure a continue to which adjusted delivered third travel $XX $XX.X of and is and fiscal demand Our conditions for of group division year. XXXX improving were third the strong for EBITDA, revenues and we million million record for The Hotels Resorts for as business quarter quarter seasonal events division fiscal travel. see any

Total the quarter grew for owned quarter RevPAR prior or XX.X% XXXX. over revenue during the third reimbursements over our year. X increased XX.X% of to $XX before million third compared the hotels cost

We fiscal we’re continue of results reporting our pleased growth years to be business. on now And to to after the this the comparing over helps levels. pre-pandemic believe, pre-pandemic perspective journey, X provide in levels XXXX recovery on

XXXX compared the hotels division to growth Third owned a quarter for revenue quarter pre-pandemic the XXXX, to before Similarly, during third X.X% same quarter marking cost total quarter first the above high. periods. the fiscal post-pandemic levels, grew for RevPAR our compared reimbursements X.X% increased RevPAR during of

approximately Breaking out rate, or ADR, our X overall partially the fiscal RevPAR more average fiscal third X for XXXX, the due XX.X% specifically, our to third quarter the during compared decrease points. increase by a daily rate of comparable hotels was overall increased percentage to in occupancy quarter an XXXX numbers offset

for ‘XX, XXXX our an increase once again in approximately and compared our quarter to indicating by Smith that rate XX%. X.X owned during the XXXX markets experienced our us RevPAR quarter XXXX third in points of the fiscal order quarter to periods quarter. in from for our fiscal average third occupancy According fiscal and by results, Research was received hotels outperformed our third fiscal Our of X.X% competitive third during comparable the compiled percentage data fiscal Travel hotels evaluate hotels to

to percentage points XXXX, comparable outperformed by States, when the in approximately the increase hotels of third comparing segment upscale compared during an the United to quarter quarter. that of X.X% our results the third fiscal also X.X upper fiscal indicating hotels third during quarter throughout RevPAR RevPAR our our experienced the industry Further,

to which and of the third in to fiscal X.X% growth group Finally, the and operations prior fiscal food beverage drive quarter banquet compared XX.X% up our business year returns, catering continued of XXXX as up revenues, compared the third were in and quarter were XXXX. to

theaters. to Shifting

impacted increased concerns comfort to revenues of releases with to date XXXX that a compared the XX% by third was customer XXXX, fiscal returning day of quarter and theaters, admission third quarter Our still films. and period

an debuted top in with the theatrical in five services to All in quarter with year five top day streaming day XXXX the compared exclusive of quarter. third the releasing movies prior of of window movies three the

When were to evaluate admission XXXX office fiscal fiscal receipts XX.X% States down XX.X%. U.S. compared XXXX, fiscal Comscore XXXX receipts quarter our to during quarter to to compared received during quarter revenues United compiled results, According decreased XXXX us box our our XXXX. from third data box office third and by fiscal third

by the during fiscal we result, a believe average As industry X revenue the points our decline once quarter of again XXXX. percentage outperformed admission third

second X.X% the third of – increase This targeted price fiscal by primarily of to increased films a the price in to last quarter XXXX due quarter cost that quarter or emission an was more compared mix inflation response was lower impacted and played by implemented to admission third negatively unfavorable during mix of the average family to during Our result matinee tickets priced year. of the audiences. increases

in on in U.S., In $X first movie addition, participated an included ticket Day Cinema our industry X, the National the promotional pricing. September circuit of going celebration that

the percentage from quarter quarter. grew by increase participating over in driving resulted was nationally, third a point our admission the to third price quarter X.X XXXX. X.X% event price headwind promotional for compared admission X customers million with average of the success to year-over-year a the the day third Average the in pricing attendance While during

at items beverage by food films by person of mix third to our family concession X.X% and higher of year, revenues the which in the compared tickets of per average fiscal and expensive impacted was XXXX. and compared food during comparable also resulted Our a daytime to purchases of third average quarter at less quarter theaters XXXX decreased last smaller negatively showings,

including believe on unfavorably mix and as of is to which industry-leading per several through to options, Promotional fiscal beverage mobile concession ordering changes. revenues our the by of pricing prior the compared factors, quarter. pricing When and we’re stand, beverage capita concession caps concessions lines emphasis XXXX, food impacted the National year nontraditional Day increased on Cinema XX.X%, compared per food placing well we our generally the shorter and beverage average and at food app, also result as our

the third to Thor: weighted Rise year-over-year Minions: number costs revenues and higher low of Due the the Maverick, the office XXXX. due generally blockbusters and third Top box to the Gun: percentages in quarter film quarter film our a costs only of limited and fiscal strong XXXX last year, which fiscal compared to of movies higher third of top as quarter in Gru, than Thunder, significantly in quarter fiscal towards during The increased our was admission resulting revenues. were of more resulted fiscal the and a prior year were: third slightly of a impact of Love with of percentage overall percentage Film prior as the XXXX in three abnormally costs films blockbusters XXXX, cost admission pandemic. as These

Shifting the to cash balance flow sheet. and

Our cash million $XX.X quarters $XX.X fiscal capital of first million of were was quarter million. year-to-date. of fiscal flow XXXX And XXXX fiscal third for capital operations third were and in quarter from during Total the the XXXX expenditures the expenditures million. cash $X.X total $XX.X X

quarter in our the in the third balance business, both and the have to hotels maintenance capital gone year-to-date, businesses. the of majority projects the projects to both going renovation For with expenditures

liquidity. quarter ended million in third We total the with $XXX over

loan repaying this to and September through As took manage year. we set was of retiring of in previously mature on help that the in facility borrowings, the announced, in July, million we early term repaid $XX.X short-term full to pandemic

ratio net retirement, EBITDA. debt Following third the debt the capitalization was and to to XX%, the leverage term loan net quarter, our end adjusted X.Xx of at our was

Finally, dividend paid suspending Directors be onset dividend to pandemic. sheet Board capital December strength committed to November announced to remain the the quarterly dividend, $X.XX This approved of our the next the of our our of balance shareholders that while our shareholders we returning dividend XX morning, in first liquidity. and September, common a has at declaring XX. to record paid of we maintaining and on We shareholders to on quarterly

now over With turn to call Greg. the that, will I

update, reported significant momentum, forward both Good big and businesses a step Chad. we our morning. In our last quarter our Thanks, where in recovery. we a had took of

As In strong. our hard group and continue light am a leisure some to see overall work a In that continued we expectations teams quarter, the and our come that particularly them. to the business quarter slate, opportunity met of in our we’re we see playing, during out year-over-year we second quarter. entered the to had continue for that customers half movies theaters, film delivered exceeded remain I saw to from the customers to demand we to navigate but hotels, return the cases, pleased third improvement. report

business. particular diversified continue the bumps began, be our one is we to in a to strategy, It several calls, Since which not around on road progress I’ve pandemic straight over manage benefits these that allows our the the line, business quarters times said make will like recovery time. us of but in will the these highlight that successfully any journey

While quarter, these make not as fast as you. we and progress this I’m to quarter, results pleased with to share last continue

start of our some with our with shared quarter. the pre-pandemic this XXXX both comparisons hotel that numbers division. competitive once including and the to our fact indicates Chad numbers data fiscal outperformed I’ll industry that and sets our you, we again the

$XX summer combined quality level of EBITDA team post hotels record Our season in third by to record third second our a quarter, the of the of level quarters. pre $XX.X million adjusted the both assets. second hotel any This or fiscal fiscal adjusted quarter high making speaks which our either follows and nearly delivered execution quarter, another and success third for a for division quarter This a EBITDA delivered record our hotels second with the team of – million fiscal for record a pandemic. of in

so portfolio pandemic special returning number the Resort hotel & appealing customers and leisure of by events. the performed which well has is now to hosting Grand like owned group assets Our Geneva growing Spa, a throughout includes

in segment, I to business growth more because is it’s the quarter. growing both front be full particularly business where recovery to total of above in encouraging the are still on While hesitate declare RevPAR focused there there parts pandemic travel of a recovery victory revenue following XXXX levels and the with and incredibly us, this

the demand. lines create to leisure with a for to continue weekend strength blurring in have travel the is seeing travel business we this customer quarter, who As filling bleisure we’re we see leisure night but up shoulder between a trend year, and last

In addition, corporate associates events, – our includes group sorry, business, which to which social continues association, and includes grow. –

last with first approximately our revenue XXXX year far, have compared same and three prior So during XXXX, quarters group the the in the customers XX% XX% rooms to period during XX% total of represented pandemic. in

revenue in same group pre-pandemic of now is Our remainder year, or the within would pace where running historically the fiscal of group year, time we the X% for be in the XXXX room bookings at for years.

which ahead, our at fiscal last behind to would pace our the year, group XXXX time to pre-pandemic, Looking where further same compared times we looks our the we we compared due for year, historically shorter last pace to time pipeline believe this for running healthy. likely the have is be of next seen lead trend because is which events, year for booking over

revenue We group travel encouraged and to and group focused recovers. banquet and continues business as our activity remain growth of teams we the experiencing by gap are on increased drive to and amount sales catering close business continuing The strong are pace. in leads activity the

the bookings, and of this of beyond. are again once and year, the in booking XXXX very to for event events continue some We strong bigger the social and remainder past wedding experience

segment transient business was segment approximately customer return by improve its is in traveler. of May of a this recovery an to lag month. travel July industry This XXXX. to business levels month industry XX% to outlook XX% through to continues The and slowly continues data, XXXX And U.S. with in year the according customer

build general, supportive daily higher third In the we occupancy continue and see on of demand average pleased average while strong rates. during with which rates, pace overall were our environment We rate to to remains the year-over-year quarter, three holding last event Maecus X in in that from XXXX. demand year headwind the third at year, approximately large our Milwaukee drivers from grew X% did benefiting rates the hotels last quarter high not over despite daily recur resulting

rates the Average third XXXX daily increased for rate quarter for XX% to the quarter. approximately compared

we have And next XX% today, indicated season. the on travelers here consumer survey, industry in or X recent macroeconomic trips the stand survey months. not spend to to of our they yet softness. we holiday same or seeing the about same plan demand As According are indications travel this of XX% more in planned survey, travel slowing

in Throughout of the this now winter. renovations projects year, Spa coming for made preparations the with final renovation investments Grand have phase we at our this & Resort room Geneva beginning

years enhance investments in to for several we come. to also experience, to Evans to our My great significant investments We our will Hotels the and making a these begin of in other guest congratulations and to Michael the continue delivering expect hotels drive team and quarter. outperformance our Resorts

great and the know role. communities like contributions proud on of also the I’d Mark and and to division, theaters Shifting Mark his I’d begin Maecus dedicated associates. his team for to new industry him to many on lead to to the of congratulating a the years President retirement Mark experience of we Graham exhibition, culture by understanding promotion theater like Rolando our his industry a passion his of brings I knowledge, and is thank movies, Rodriguez for Marcus company, of our to serve. congratulate theater Theatres. to many movie theatrical

continued our in Moving the revenues per quarter, industry. the over outperformance of numbers our shared person and including increases the you, with to

several is on film summer postproduction release show shared quarter, late slate shipping our to to a expected the third with production in several continuing lull films releasing resulted of and heading over the starting I file pattern quarter into softening the calendar the This quarter we the prior films a due As backlog. film call, and followed well, to and strong slate inverse movie from the fall. carrying others delays second in with the last by July back in a from

of played bright while films that path. step recovery followed that had audiences, we our office healthy like a limited we several caused said, in expected. the highlight. are side the movies to With box to there And the pattern that quantity The I’d spots

out continues our First, audiences in this audience to quarter. family broaden force with

seven. one of number for number with Minions: Rise The in Super-Pets was Our of movie at quarter coming League the Gru, DC

to our want go don’t customer one who they to think movies, theaters this the quarter. in pundits For families number out were

see addition, audiences box play on through XX Top in Films they playing release, to. its we only Crawdads exclusively – Elvis, before when Maverick theaters films, Nope, Labor have with and all Day summer theaters other to and both resonated them to for premium cinema Where in number came Labor theaters and like In genres Day superhero to Gun: theaters. days showed Memorial and performed video-on-demand office domestically that showed the for become well PVOD, Sing the in the movies customers the than final entire and continuing become Day. to to the the in one film secure to spot history

experience cannot in on immersive your big screen duplicated sound The couch living of and the room. the be

So customers studios see growth driving that highest about to and some box time second that theater, fifth the coming, all time. a to film sets in generating in elevated office exclusive of the I’ve brands, up windows past just for third buzz domestic the talked the content. a belief kept runs maximizes theatrical generate value subsequent and Maverick the our

Maverick iTunes. is best-selling remains digital week, in and yet, while this number the August. Gun: title in ever was example by week Blu-ray and in best followed Top number sell-through this one becoming earlier late of Maverick a perhaps PVOD Paramount’s release its release the DVD one first digital of movie This on U.S. the

drive experience added of loyalty program added Earlier overall streaming range eventual success Paramount+. sales of has our perks, attendance its with a combined business. These Movie huge millionth providing for This benefits movie these X and members. All Magical on windows our month, program Maverick’s and customer increased repeat box release to this member. going its while office the grown before Rewards

and year. theater of half, loyalty average, on fact, Xx members nearly visit up our XX% the attendance make overall In per

valuable also provides with program preferences. insight customer Our into us loyalty

sales e-commerce members of as XX% our purchase tickets know advanced loyalty that loyalty to future. purchased we loyalty a great asset know movie. members. to that growing to we more and by example, us, we and in program member than are leverage encourages our our ticket are likely the For This develop continue online will been the a And has twice program to as base

slates Halloween for that And were forward, played Way Black our several week excited in up The have Water Paradise. of Wakanda release to and X Smile, fourth including December Panther: of with many quarter, As Adam, Ticket Forever, already look XX. today so the films from Avatar, the we Ends of like the and film well customers on picked Black

we Chad today, his since history As last to quarter. second The dividend of returning a shareholders, has discussed dividend. remarks, the committed to in announced capital reinstating and we remain our long a quarterly paying Marcus dividend Corporation

As you a lens. view through long-term world the we know,

day, Our the rate quarter-to-quarter did manage of time, industry business we that improvement continue will but to confident long-term and day as quarter, it consistent performance of overall vary progress. investments at the goal outperformance. growth but I’m sustained this the long-term to We of will our from make look at same the with

want and every Finally, and most that again once the they for my to commitment our our Marcus for responsible our do day. important Corporation. appreciation work dedicated customers asset, Their of we success. outstanding all appreciate They I to are associates is express serving our

thank of executive Board associates. our behalf So, and all of team, our you our to on of entire Directors

you have. the that, call for open this questions at be Chad to any may I’d up happy With time, and

go comes question And today ahead. Goss Jim, Research. Instructions] third [Operator Barrington from pleas Jim our of

is line open. Your

morning. good questions hotel to start about and like you thank a couple sector. with I’d Hi, the of

comments the that. about few on of to business talked our travel. like get a I’d more You’ve in surgeons beginning

a also their about type relative St. Monaco, the a price and was leisure couple In – for and then you’re you that of to Kate difference And business might if hotels, you’re setting whether what and wondering general? rates? both terms your more Kimpton travel trends your in and I in how about seeing the so the specialty talk experience group of the the makes sensitivity

Yes.

saw we’ve question traveler. back in has business the of the – outlook industry got an business summer, XX% it that bit call outlook to at, So over for early we that’s that the XX% levels, to a year. start remarks, talked about with it, of the the a go on meaning maybe that, next traveler and And I’ll going his little XXXX Greg an hopefully, part

know rate the are trips to different On there setting I business taking. as and that the don’t a rate are they sensitivity as about is that behavior much travelers front, there just

and the five out Friday. So on in or the people professionals yet stay are group But would some and team come Sunday with consultants hasn’t that the go out back on the salespeople road. of out a go back the road are four the on until past and of the night who

a fewer anecdotally folks of seems and days. out for going they that like are Now maybe it number smaller

is seeing – and pushback any nights But healthy strong, now quarters being seen that So that’s group we’ve for lagging. up to filling seeing been indication two continues a on and week. of travel, the is pushback trend on demand leisure which by the ongoing piece with rate the at that’s strong, is, we’re course, we’re this of return what picked that’s business, first instead during not this be up point. And of

of So it’s the really Greg question I’ll St. let encouraging. part second Kate assets. the And the around been take

bit no point, I too, cost not I specific Jim. tell that and setting I’ll the I know the do just Again, a my it. at heard corporate And some some that. pass build about tip that have actually, customers went Yes. having the you, of and data recently on can just we do they And little And – hands. on. along anecdotally, understand to I rate are look, I

at we’re pushback seeing we’re not – – we’re seeing comfortable not negotiate, at going. people least where so but with that’s And

group have central to perform the these who experience our who just business before, different city perform groups overlay not attract special to and – with it’s we business whether who the customer to we that Kimpton matter have or but about experiential the that’s also very – well customer, attracting hotel something been business no as an has is, just beneficial, hotels As these be experience whether typical for where performance, leisure hotels want well, having have are as traveler I’ve the that talked room. a Kate, have we and St. of

so pleased are seeing in the strength with those we’re And we hotels.

– end there expectation exception theater how for on has of looking in, like the with almost what’s movies been then the it really maybe double your bit an seemed we the And a in that New the say, year, rollover on sort was thanks terms fell Avatar? including Okay. could good and Panther. start of slate to relative for Black you of side, the into move September big side just into towards Year, and August, year theater a I’m to Avatar, the year And thinking with going how like of at evaluate own potential your up that, expect. some from then you’d expectations? And little And apart this as you’re the the wondering developed how a little softer

expectations, think is – they with. all I that’s to backups labor postproduction deal set and given this business dealing talked with what’s in. honest. can’t what We I with same coming with but be we Jim, mean we about dealing with are happened we’re a the don’t with – I – issues really – pandemic the just I

expectations. that we and And said, to the what’s line continued ball, not manage to on by as well, progress. was I maximize then the in – look, don’t bottom – pleased set and comes my we’re of going what line defense. say, this – but offense to to two I’m I coming stages, – And And door in we just so in top but in the the what’s play sides after both maximize

with that’s going saying it in all except and business. every that, business And this There that, that And so is is is – I again, of – a top old an film sequel. R&D, given on. on then and a

have I’ll right come going have I just up. if Gun money Top going something movie bet, now, would of in. have the shows Well, how of any I Who if with would summer. people be you would known is So all given I tell would is know. in lot do mean, don’t never If you until is We I have the fifth know to biggest all time know? what’s made to a that play would that. to going going to just said made I it –

went the But is a I the of saying pipeline inventory longer I’d to we of slate a do back some there number doubt, the bit by get but of is it’s no of films up The the than in to only on number after have thing little that many expected Jim, add taking films ramp what on, it’s to in during other what the like going channels encouraged are out about are pandemic. XXXX, further think the take there. studios looks going while to some

going time. to just take so it’s some And

has any your back just strategy your impact or what of concession aspects? one situations those of an – nature the or your offerings are be had addendum hasn’t last those sorts on this those office to affected really parallel comments, just Maybe the in of would any Okay. of

a idea, some good thinking but... have you about? are What If years you

bringing was the if products something just worked consistency I’m additional the the more or have like of strategic been that, out a really in would something you is thinking, not aggressive that elements? that No, little back into or office greater

our are who’s look, the mean, looking No. more I at can door. offers to of and teams in think coming what gearing sell always I – we

online that’s is other as the do, what’s way one – like is, one coming But is that I I of just think we’re seeing is the door, how we there anything. don’t no, which we to or to anything we’re in upsell. interesting there to think the don’t because of things ability the things So ordering, shifting – that trying move really other than to

think on the the recently, we technology. And And so And upselling ways. curve that to actually online really then us to benefits we the in two of ahead developing were ordering. now we’ve added

got now do want – now. to things so or add-on you large? that that do to We’ve you make get want an So medium automatically like to all technology you

sort to getting high the people just turnover, behind to They about dealing really are You with natural One business anyway, can’t that is the all again, are new thinking issues there that have is humans line. of training which we They Also, when they them sure two not long revenue. you – this line. of drive sort concession people sitting a is through in is more stand. upselling. upsell harder, the just had making about thinking when and are do

helpful. You’ve is got – so having that built really its on, technology

focus the what that, forward we our money now on thing labor should food that order do on should have when move it percentage takes concession in hotel They of doing calling and the app. other the as the your making to being customer also that at building of not that yourself at just to is now the the the operationalizing it going the it up has process to do also end, And the labor-saving operations. and out actually save the And many work transaction important that you see benefit because certain That’s information in stand – kind in doing we’re their from as one We – terms We you They looking customer work on in that, multiple is And this well, give something we that order. all industry a with time our they this. on beverage now to move So get we a the reservation human can really extent like they put how who that move you to reservation on that all does from is once – example. are here has great one a of all on which do I’m the because to have hotel people on to years And the – – think work. of operating card we customer. the of are concession we’re of and great to ago the prediction up market. a system industries that don’t in calling when themselves. not your that you people a But reservation system side, at that it. guess having credit from be – way app. when learned be. might see I a No number percentage what no the to hotel take and it many, a

it. Okay, thanks Appreciate much thoughts. for very your all

Thanks, Jim.

the And question is please go goes Mike, Hickey line you. Company. Benchmark next ahead your of The to Mike open. Thank

Hey, you. quarter. guys. Hi, Good thank Chad. afternoon, Nice Greg,

Thanks.

given the here that your unique a there just of going you. of ‘XX side. also thinking I congratulations clearly here. much sort in you I in I leisure I of But But some business guess, our recovery Greg, data, some just that on on challenging sustain a home levels guess, us be The I or what the travel? that could so position mean, impressive pull all XX% tailwind to maybe where and your then the know despite leisure a you’re recession escapism is reopening job the normally hotel this And we’ve on we’re as could could the setting of about momentum sort to But everyone’s on respect And And looking will gave business, through of of you – indications you same and telling and all back at is more to health I push the scenarios. gone we into guess more given Very in that economic guess, great you that that where specifically, I I critical look you that. expectations that, And being expect difficult question cautious through, be the that travel. here, to leisure on looking extend it’s so guess, is and actually side, out great – ‘XX is. at economy. supposed guess, and I recession. back, grow

there. pre-pandemic necessity We’re think only XX% people of still where I the to we were connect

you your speaking into curious, thoughts just the appetite from other that probably to what you’re travel? recession. reopening there, necessity, business leaders, to anecdotally Greg, curious, talk And tailwinds Just to when continue to a hearing

Hotels – get are our when see instead go what And game, have well, – I start. all you going thoughts the a sudden, of typically, mind. going go really because isn’t Things That’s hope to let’s I admit it the having multiple – but because to and to funny. movie. cheap right, tend will to this don’t it’s same out actually or see a becomes don’t we all where of is – hotel I crossed you’re have tend entertainment for into concert diversity. again, about okay, I theaters a you more GDP sudden, Mike. a to Thanks of just impact recession, know a question, business my the a way know, go just other right. – –

goods. wish they can of what know absolutely they and into But because was better and different who we the you see services that watching work want right, to good – Goods mean, will this. They so hotel pull – – get happen. seeing wondered, time yes, where shape And on not the I seen, we I that know. I if in well, side, benefit. a they I something seeing been want I out I – you going is want could hope than than the long economy have tell is anybody experiences. our big have ever to sort demand. is forward in do like are consumer the do there is a you are And mix stuff, services is do have so to And we travel. because in

do house. that to think And that – get house. going do now stuff. big house out they group responded buy are stuck my done another the pull because have have forward out. seeing on I okay, my home. have are I played to or movies why experiences want to while in people now that’s your I I I Frankly, for to my can of to am people I robust. been and everything am the is then we I my that house. I bed mean. can’t – have actually been put gutter saying, get things reversion travel been has there, was buying are another have and of But sort buy There You can’t for

really don’t right. know. was So, winded hope you that are a long I saying, answer I

is there I are right that. corner. so, for guess Thanks the on you

me, Second guess question from I recently from community. the investor

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that last couple share on the that you who the the forecast on guidance. conservatism in have say, months then of those film XXXX provide release during we that and those And content of space. XXXX expect your I what And outlook, looking Yes. really And of of we have question comes from calendar year push we looks portion for that the – would the through. from course we on heard just and don’t part the some effects see follow domino saw the the come I of But amount the the like. to outs had think at this

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Good guys. Thanks luck. job. Great Alright.

you. Thank

Instructions] [Operator ahead. Lawndale to question next And Andrew go of Shapiro goes Capital our Andrew, Management. please

open. is line Your

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Yes, we are.

Okay. Excellent. Alright. Thank you.

At time, any for back Thank call to there no the other this appears closing are Mr. I you. to additional Paris turn like comments. it questions. or would

day. again talking quarter fourth in thank We today, would fiscal results. and like joining and to us release you have we thank early again XXXX Until to you you look we for March to a then, once when forward good our

concludes you. you That Thank today’s for call. Thank joining. all

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