|Marcus Theatres(R) to Acquire Seven Douglas Theatres Locations in Omaha and Lincoln, Nebraska, with 83 Screens|
Will Increase Marcus Theatres' Total to 678 Screens in Seven StatesMILWAUKEE, Mar 26, 2008 (BUSINESS WIRE) -- Marcus Theatres Corporation, a division of The Marcus Corporation (NYSE:MCS), today announced it has signed an agreement to acquire selected assets of the Douglas Theatre Company theatre circuit based in Lincoln, Neb. for approximately $40.5 million in cash, subject to certain closing adjustments.
Marcus Theatres(R) will acquire and operate, through a subsidiary, seven Douglas Theatres locations with a total of 83 screens in Omaha and Lincoln, Nebraska. Douglas Theatres will continue to operate the Cinema Center Theatre in Omaha for an undetermined period of time, and will also close, but continue to own the Cinema 9 property in Omaha.
Marcus Theatres has also agreed to purchase, subject to certain conditions, an additional site for the development of a new theatre in LaVista, Nebraska, for approximately $4.4 million, and has an option to purchase another undeveloped site in North Lincoln.
Douglas Theatres is the nation's 42nd largest theatre circuit, currently operating 100 screens at nine locations in Nebraska. Upon completion of the transaction, Marcus Theatres will operate 678 screens at 56 locations in seven states and remain the seventh largest exhibitor in the U.S.
The transaction is expected to be completed in early April 2008, subject to customary closing conditions, consents and approvals.
"The purchase of the Douglas Theatres locations is a synergistic addition to our circuit. Our two companies share a similar history, are deeply rooted in the values of the Midwest and have the same focus on guest service and quality. Douglas Theatres' high quality facilities and excellent locations are comparable to Marcus Theatres in our current six-state region, making this a great fit for our company. Douglas Theatres has been an excellent theatre operator for over 50 years and we intend to continue enhancing the outstanding movie-going experience for which Douglas is well known," said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.
"A year ago, Marcus Theatres made the largest acquisition in its history with the purchase of 11 theatre locations from Cinema Entertainment Corporation. This investment in Douglas Theatres once again demonstrates our continued confidence in the theatre business and, coupled with the expansion of our hotel portfolio in recent months, reflects The Marcus Corporation's commitment to growing both of our operating divisions," added Gregory S. Marcus, president of The Marcus Corporation. "We anticipate a smooth integration of the Douglas Theatres into our circuit and expect that the acquisition will be accretive to both earnings and cash flow."
"We are pleased that Marcus Theatres will carry on the tradition of excellence established at Douglas Theatre Company. Marcus Theatres will serve our communities with the many resources available to a larger company and will provide the same dedication to our customers and associates that has been a hallmark of Douglas for over 55 years. Marcus Theatres' philosophy is the same as Douglas - providing customers with the best entertainment experience possible," said Russell Brehm, chairman and founder of Douglas Theatres.
Bruce J. Olson, president of Marcus Theatres, said, "Ever since our company entered the theatre business with a small-town theatre in Ripon, Wisconsin in 1935, Marcus Theatres has been a leader in the exhibition industry. Marcus Theatres was among the first circuits to convert the vast majority of its first-run auditoriums to digital sound and stadium seating. Our company has also consistently been at the forefront of innovation in the industry, with our UltraScreen(R) concept, comfortable high-back seats, online print-at-home ticketing, lobby entertainment on flat-screen monitors, self-service soft drinks and other amenities. We have a tradition of continually upgrading our theatres and adding new features and services that make the movie-going experience better than ever. We look forward to serving the customers of Douglas Theatres in Omaha and Lincoln."
The Douglas theatres being acquired by Marcus Theatres are:
About Marcus Theatres
Marcus Theatres(R), a division of The Marcus Corporation (NYSE:MCS), is the seventh largest theatre circuit in the United States and with the addition of Douglas Theatres, will own or operate 678 screens at 56 locations in Wisconsin, Illinois, Minnesota, Ohio, North Dakota, Iowa and Nebraska, and one family entertainment center in Wisconsin.
About The Marcus Corporation
Headquartered in Milwaukee, Wisconsin, The Marcus Corporation is a leader in the lodging and entertainment industries. In addition to its Marcus Theatres division, the company's lodging division, Marcus Hotels and Resorts, owns or manages 20 hotels, resorts and other properties in 10 states, with two additional properties under development. For more information, visit the company's web site at www.marcuscorp.com.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as we "believe," "anticipate," "expect" or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (1) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division, as well as other industry dynamics such as the maintenance of a suitable window between the date such motion pictures are released in theatres and the date they are released to other distribution channels; (2) the effects of increasing depreciation expenses and preopening and start-up costs due to the capital intensive nature of our businesses; (3) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (4) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (5) the effects on our occupancy and room rates from the relative industry supply of available rooms at comparable lodging facilities in our markets; (6) the effects of competitive conditions in our markets; (7) our ability to identify properties to acquire, develop and/or manage and continuing availability of funds for such development; and (8) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States, the United States' responses thereto and subsequent hostilities. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
SOURCE: The Marcus Corporation
Investors: The Marcus Corporation Douglas A. Neis, (414) 905-1100 or Media: Marcus Theatres Carlo W. Petrick, (414) 905-1505