Company Quick10K Filing
Marcus
Price36.95 EPS1
Shares31 P/E27
MCap1,159 P/FCF13
Net Debt233 EBIT63
TEV1,392 TEV/EBIT22
TTM 2019-09-26, in MM, except price, ratios
10-Q 2020-06-25 Filed 2020-08-04
10-Q 2020-03-26 Filed 2020-05-12
10-K 2019-12-26 Filed 2020-02-24
10-Q 2019-09-26 Filed 2019-11-05
10-Q 2019-06-27 Filed 2019-08-06
10-Q 2019-03-28 Filed 2019-05-07
10-K 2018-12-27 Filed 2019-03-12
10-Q 2018-09-27 Filed 2018-11-06
10-Q 2018-06-28 Filed 2018-08-07
10-Q 2018-03-29 Filed 2018-05-08
10-K 2017-12-28 Filed 2018-03-13
10-Q 2017-09-28 Filed 2017-11-07
10-Q 2017-06-29 Filed 2017-08-08
10-Q 2017-03-30 Filed 2017-05-09
10-K 2016-12-29 Filed 2017-03-14
10-Q 2016-09-29 Filed 2016-11-08
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-10
10-Q 2015-11-26 Filed 2016-01-05
10-Q 2015-08-27 Filed 2015-10-06
10-K 2015-05-28 Filed 2015-08-11
10-Q 2015-02-26 Filed 2015-04-07
10-Q 2014-11-27 Filed 2015-01-06
10-Q 2014-08-28 Filed 2014-10-07
10-K 2014-05-29 Filed 2014-08-12
10-Q 2014-02-27 Filed 2014-04-08
10-Q 2013-11-28 Filed 2014-01-07
10-Q 2013-08-29 Filed 2013-10-08
10-K 2013-05-30 Filed 2013-08-13
10-Q 2013-02-28 Filed 2013-04-09
10-Q 2012-11-29 Filed 2013-01-08
10-Q 2012-08-30 Filed 2012-10-09
10-K 2012-05-31 Filed 2012-08-14
10-Q 2012-02-23 Filed 2012-04-03
10-Q 2011-11-24 Filed 2012-01-03
10-Q 2011-08-25 Filed 2011-10-04
10-K 2011-05-26 Filed 2011-08-09
10-Q 2011-02-24 Filed 2011-04-05
10-Q 2010-11-25 Filed 2011-01-04
10-Q 2010-08-26 Filed 2010-10-05
10-K 2010-05-27 Filed 2010-08-10
10-Q 2010-02-25 Filed 2010-04-06
10-Q 2009-11-26 Filed 2010-01-05
8-K 2020-08-04 Earnings, Exhibits
8-K 2020-05-06
8-K 2020-05-05
8-K 2020-04-29
8-K 2020-04-09
8-K 2020-02-20
8-K 2020-01-09
8-K 2019-10-24
8-K 2019-07-25
8-K 2019-05-07
8-K 2019-04-25
8-K 2019-02-21
8-K 2019-02-04
8-K 2019-02-01
8-K 2018-11-01
8-K 2018-10-25
8-K 2018-07-26
8-K 2018-05-08
8-K 2018-04-26
8-K 2018-02-22

MCS 10Q Quarterly Report

Part I - Financial Information
Item 1. Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 4. Mine Safety Disclosures
Item 6. Exhibits
EX-31.1 mcs-20200625xex31d1.htm
EX-31.2 mcs-20200625xex31d2.htm
EX-32 mcs-20200625xex32.htm

Marcus Earnings 2020-06-25

Balance SheetIncome StatementCash Flow
1.41.10.80.60.30.02012201420172020
Assets, Equity
0.30.20.20.10.10.02012201420172020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 25, 2020

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 1-12604

THE MARCUS CORPORATION

(Exact name of registrant as specified in its charter)

Wisconsin

 

39-1139844

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

100 East Wisconsin Avenue, Suite 1900
Milwaukee, Wisconsin

 

53202-4125

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (414) 905-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

MCS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.

Yes

 

No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

 

No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check One).

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

 

No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

COMMON STOCK OUTSTANDING AT JULY 31, 2020 – 23,135,198

CLASS B COMMON STOCK OUTSTANDING AT JULY 31, 2020 – 7,925,254

THE MARCUS CORPORATION

INDEX

   

Page

PART I – FINANCIAL INFORMATION

Item 1.

Consolidated Financial Statements:

Consolidated Balance Sheets
(June 25, 2020 and December 26, 2019)

3

Consolidated Statements of Earnings (Loss)
(13 and 26 weeks ended June 25, 2020 and June 27, 2019)

5

Consolidated Statements of Comprehensive Income (Loss)
(13 and 26 weeks ended June 25, 2020 and June 27, 2019)

6

Consolidated Statements of Cash Flows
(26 weeks ended June 25, 2020 and June 27, 2019)

7

Condensed Notes to Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

41

Item 4.

Controls and Procedures

41

PART II – OTHER INFORMATION

Item 1A.

Risk Factors

42

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

44

Item 4.

Mine Safety Disclosures

44

Item 6.

Exhibits

44

Signatures

S-1

2

PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

THE MARCUS CORPORATION

Consolidated Balance Sheets

June 25,

December 26,

(in thousands, except share and per share data)

    

2020

    

2019

ASSETS

 

  

 

  

Current assets:

 

  

 

  

Cash and cash equivalents

$

79,596

$

20,862

Restricted cash

 

8,385

 

4,756

Accounts receivable, net of reserves of $1,272 and $762, respectively

 

7,312

 

29,465

Refundable income taxes

 

51,580

 

5,916

Other current assets

 

11,117

 

18,265

Total current assets

 

157,990

 

79,264

 

 

  

Property and equipment:

 

 

  

Land and improvements

 

151,223

 

152,434

Buildings and improvements

 

762,340

 

761,511

Leasehold improvements

 

165,521

 

164,083

Furniture, fixtures and equipment

 

381,385

 

377,404

Finance lease right-of-use assets

 

74,504

 

74,357

Construction in progress

 

8,725

 

4,043

Total property and equipment

 

1,543,698

 

1,533,832

Less accumulated depreciation and amortization

 

648,229

 

610,578

Net property and equipment

 

895,469

 

923,254

 

 

  

Operating lease right-of-use assets

 

240,790

 

243,855

 

 

  

Other assets:

 

 

  

Investments in joint ventures

 

3,138

 

3,595

Goodwill

 

75,235

 

75,282

Other

 

32,775

 

33,936

Total other assets

 

111,148

 

112,813

 

 

  

TOTAL ASSETS

$

1,405,397

$

1,359,186

See accompanying condensed notes to consolidated financial statements.

3

THE MARCUS CORPORATION

Consolidated Balance Sheets

    

June 25,

    

December 26,

(in thousands, except share and per share data)

 

2020

 

2019

LIABILITIES AND SHAREHOLDERS' EQUITY

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

11,585

$

49,370

Taxes other than income taxes

 

16,864

 

20,613

Accrued compensation

 

8,837

 

18,055

Other accrued liabilities

 

53,414

 

61,134

Short-term borrowings

90,218

Current portion of finance lease obligations

 

2,809

 

2,571

Current portion of operating lease obligations

 

18,971

 

13,335

Current maturities of long-term debt

 

2,312

 

9,910

Total current liabilities

 

205,010

 

174,988

 

 

  

Finance lease obligations

 

19,877

 

20,802

 

 

  

Operating lease obligations

 

235,291

 

232,111

 

 

  

Long-term debt

 

257,409

 

206,432

 

 

Deferred income taxes

 

57,109

 

48,262

 

 

  

Deferred compensation and other

 

57,721

 

55,133

 

 

  

Equity:

 

 

  

Shareholders’ equity attributable to The Marcus Corporation

Preferred Stock, $1 par; authorized 1,000,000 shares; none issued

 

 

Common Stock, $1 par; authorized 50,000,000 shares; issued 23,264,259 shares at June 25, 2020 and 23,253,744 shares at December 26, 2019

 

23,264

 

23,254

Class B Common Stock, $1 par; authorized 33,000,000 shares; issued and outstanding 7,925,254 shares at June 25, 2020 and 7,935,769 shares at December 26, 2019

 

7,926

 

7,936

Capital in excess of par

 

147,690

 

145,549

Retained earnings

 

410,359

 

461,884

Accumulated other comprehensive loss

 

(12,995)

 

(12,648)

 

576,244

 

625,975

Less cost of Common Stock in treasury (124,568 shares at June 25, 2020 and 242,853 shares at December 26, 2019)

 

(3,264)

 

(4,540)

Total shareholders' equity attributable to The Marcus Corporation

 

572,980

 

621,435

Noncontrolling interest

 

 

23

Total equity

 

572,980

 

621,458

 

 

  

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,405,397

$

1,359,186

See accompanying condensed notes to consolidated financial statements.

4

THE MARCUS CORPORATION

Consolidated Statements of Earnings (Loss)

June 25, 2020

June 27, 2019

(in thousands, except per share data)

    

13 Weeks

    

26 Weeks

    

13 Weeks

    

26 Weeks

Revenues:

 

  

 

  

Theatre admissions

$

154

$

55,549

$

83,055

$

142,024

Rooms

 

857

 

17,846

 

28,194

 

47,132

Theatre concessions

 

1,104

 

47,034

 

67,920

 

115,075

Food and beverage

 

586

 

14,200

 

18,615

 

34,398

Other revenues

 

3,297

 

22,073

 

22,533

 

43,362

 

5,998

 

156,702

 

220,317

 

381,991

Cost reimbursements

 

1,935

 

10,691

 

12,183

 

20,548

Total revenues

 

7,933

 

167,393

 

232,500

 

402,539

 

 

 

 

Costs and expenses:

 

 

 

 

Theatre operations

 

8,640

 

62,656

 

76,193

 

132,571

Rooms

 

1,866

 

11,521

 

10,309

 

19,344

Theatre concessions

 

831

 

23,042

 

25,049

 

42,318

Food and beverage

 

1,151

 

15,616

 

14,902

 

28,511

Advertising and marketing

 

1,075

 

6,465

 

6,101

 

11,011

Administrative

 

11,178

 

28,910

 

18,950

 

36,809

Depreciation and amortization

 

18,845

 

37,878

 

18,273

 

34,258

Rent

 

6,328

 

13,282

 

6,878

 

12,281

Property taxes

 

6,025

 

12,054

 

5,468

 

10,861

Other operating expenses

 

3,121

 

11,828

 

10,719

 

21,602

Impairment charges

8,712

Reimbursed costs

 

1,935

 

10,691

 

12,183

 

20,548

Total costs and expenses

 

60,995

 

242,655

 

205,025

 

370,114

 

 

 

 

Operating income (loss)

 

(53,062)

 

(75,262)

 

27,475

 

32,425

 

 

 

 

Other income (expense):

 

 

 

 

Investment income

 

836

 

141

 

175

 

648

Interest expense

 

(3,529)

 

(6,045)

 

(3,093)

 

(6,152)

Other expense

 

(591)

 

(1,181)

 

(480)

 

(960)

Loss on disposition of property, equipment and other assets

 

(36)

 

(48)

 

(147)

 

(140)

Equity losses from unconsolidated joint ventures, net

 

(428)

 

(485)

 

(84)

 

(168)

 

(3,748)

 

(7,618)

 

(3,629)

 

(6,772)

 

 

 

 

Earnings (loss) before income taxes

 

(56,810)

 

(82,880)

 

23,846

 

25,653

Income taxes (benefit)

 

(29,906)

 

(36,476)

 

5,609

 

5,622

Net earnings (loss)

 

(26,904)

 

(46,404)

 

18,237

 

20,031

Net earnings (loss) attributable to noncontrolling interests

 

125

 

(23)

 

171

 

105

Net earnings (loss) attributable to The Marcus Corporation

$

(27,029)

$

(46,381)

$

18,066

$

19,926

 

 

 

 

Net earnings (loss) per share - basic:

 

 

 

 

Common Stock

$

(0.89)

$

(1.53)

$

0.60

$

0.68

Class B Common Stock

$

(0.81)

$

(1.39)

$

0.54

$

0.59

 

 

 

 

Net earnings (loss) per share - diluted:

 

 

 

 

Common Stock

$

(0.89)

$

(1.53)

$

0.58

$

0.64

Class B Common Stock

$

(0.81)

$

(1.39)

$

0.54

$

0.59

See accompanying condensed notes to consolidated financial statements.

5

THE MARCUS CORPORATION

Consolidated Statements of Comprehensive Income (Loss)

June 25, 2020

June 27, 2019

(in thousands)

    

13 Weeks

    

26 Weeks

    

13 Weeks

    

26 Weeks

Net earnings (loss)

$

(26,904)

$

(46,404)

$

18,237

$

20,031

 

  

 

  

 

  

 

  

Other comprehensive income (loss), net of tax:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Amortization of the net actuarial loss and prior service credit related to the pension, net of tax effect of $65, $130, $29 and $59, respectively

 

182

 

365

 

80

 

159

 

  

 

  

 

  

 

  

Fair market value adjustment of interest rate swap, net of tax benefit of $60, $348, $163 and $305, respectively

 

(171)

 

(985)

 

(444)

 

(830)

 

  

 

  

 

  

 

Reclassification adjustment on interest rate swap included in interest expense, net of tax effect of $65, $96, $4 and $8, respectively

 

189

 

273

 

11

 

21

 

  

 

  

 

  

 

  

Other comprehensive income (loss)

 

200

 

(347)

 

(353)

 

(650)

 

  

 

  

 

  

 

  

Comprehensive income (loss)

 

(26,704)

 

(46,751)

 

17,884

 

19,381

 

  

 

 

  

 

  

Comprehensive income (loss) attributable to noncontrolling interests

 

125

 

(23)

 

171

 

105

 

  

 

 

  

 

Comprehensive income (loss) attributable to The Marcus Corporation

$

(26,829)

$

(46,728)

$

17,713

$

19,276

See accompanying condensed notes to consolidated financial statements.

6

THE MARCUS CORPORATION

Consolidated Statements of Cash Flows

26 Weeks Ended

(in thousands)

    

June 25, 2020

    

June 27, 2019

OPERATING ACTIVITIES:

 

  

 

  

Net earnings (loss)

$

(46,404)

$

20,031

Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:

 

 

Losses on investments in joint ventures

 

485

 

168

Distributions from joint ventures

 

 

200

Loss on disposition of property, equipment and other assets

 

48

 

140

Impairment charges

 

8,712

 

Depreciation and amortization

 

37,878

 

34,258

Amortization of debt issuance costs

 

156

 

179

Share-based compensation

 

2,178

 

1,726

Deferred income taxes

 

9,016

 

(2)

Deferred compensation and other

 

2,327

 

250

Contribution of the Company’s stock to savings and profit-sharing plan

 

1,315

 

1,181

Changes in operating assets and liabilities:

 

 

Accounts receivable

 

22,153

 

(2,388)

Other assets

 

1,964

 

158

Operating leases

6,886

(308)

Accounts payable

 

(35,281)

 

5,018

Income taxes

 

(45,664)

 

5,579

Taxes other than income taxes

 

(3,749)

 

1,356

Accrued compensation

 

(9,218)

 

(2,252)

Other accrued liabilities

 

(7,818)

 

(5,564)

Total adjustments

 

(8,612)

 

39,699

Net cash provided by (used in) operating activities

 

(55,016)

 

59,730

 

 

INVESTING ACTIVITIES:

 

 

Capital expenditures

 

(15,885)

 

(30,460)

Acquisition of theatres, net of cash acquired and working capital assumed

 

 

(29,626)

Proceeds from disposals of property, equipment and other assets

 

1,477

 

16

Capital contribution in joint venture

 

(28)

 

Proceeds from sale of trading securities

5,184

Other investing activities

 

113

 

(5,716)

Net cash used in investing activities

 

(9,139)

 

(65,786)

 

 

FINANCING ACTIVITIES:

 

 

Debt transactions:

 

 

Proceeds from borrowings on revolving credit facility

 

188,000

 

162,000

Repayment of borrowings on revolving credit facility

 

(138,600)

 

(127,000)

Proceeds from short-term borrowings

90,800

Principal payments on long-term debt

 

(9,266)

 

(24,032)

Proceeds received from PPP loans expected to be repaid

3,213

Debt issuance costs

(1,604)

Principal payments on finance lease obligations

 

(805)

 

(1,207)

Equity transactions:

 

 

Treasury stock transactions, except for stock options

 

(131)

 

(316)

Exercise of stock options

 

56

 

904

Dividends paid

 

(5,145)

 

(9,646)

Distributions to noncontrolling interest

 

 

(95)

Net cash provided by financing activities

 

126,518

 

608

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

62,363

 

(5,448)

Cash, cash equivalents and restricted cash at beginning of period

 

25,618

 

21,927

Cash, cash equivalents and restricted cash at end of period

$

87,981

$

16,479

 

 

Supplemental Information:

 

 

Interest paid, net of amounts capitalized

$

4,719

$

6,032

Income taxes paid

 

172

 

44

Change in accounts payable for additions to property, equipment and other assets

 

(2,764)

 

4,761

See accompanying condensed notes to consolidated financial statements.

7

THE MARCUS CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE 13 AND 26 WEEKS ENDED JUNE 25, 2020

1. General

Basis of Presentation - The unaudited consolidated financial statements for the 13 and 26 weeks ended June 25, 2020 and June 27, 2019 have been prepared by the Company. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary to present fairly the unaudited interim financial information at June 25, 2020, and for all periods presented, have been made. The results of operations during the interim periods are not necessarily indicative of the results of operations for the entire year or other interim periods. However, the unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2019.

Accounting Policies - Refer to the Company’s audited consolidated financial statements (including footnotes) for the fiscal year ended December 26, 2019, contained in the Company’s Annual Report on Form 10-K for such year, for a description of the Company’s accounting policies.

Depreciation and Amortization - Depreciation and amortization of property and equipment are provided using the straight-line method over the shorter of the estimated useful lives of the assets or any related lease terms. Depreciation expense totaled $18,852,000 and $37,886,000 for the 13 and 26 weeks ended June 25, 2020, respectively, and $18,284,000 and $34,239,000 for the 13 and 26 weeks ended June 27, 2019, respectively.

Long-Lived Assets – The Company periodically considers whether indicators of impairment of long-lived assets held for use are present. This includes quantitative and qualitative factors, including evaluating the historical actual operating performance of the long-lived assets and assessing the potential impact of recent events and transactions impacting the long-lived assets. If such indicators are present, the Company determines if the long-lived assets are recoverable by assessing whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than their carrying amounts. If the long-lived assets are not recoverable, the Company recognizes any impairment losses based on the excess of the carrying amount of the assets over their fair value. During the first quarter of fiscal 2020, the Company determined that indicators of impairment were present. As such, the Company evaluated the value of its property and equipment and the value of its operating lease right-of-use assets and recorded an impairment charge as discussed in Note 3. During the 13 weeks ended June 25, 2020, no indicators of impairment were present.

Goodwill – The Company reviews goodwill for impairment annually or more frequently if certain indicators arise. The Company performs its annual impairment test on the last day of its fiscal year. Goodwill is tested for impairment at a reporting unit level, determined to be at an operating segment level. When reviewing goodwill for impairment, the Company considers the amount of excess fair value over the carrying value of the reporting unit, the period of time since its last quantitative test, and other factors to determine whether or not to first perform a qualitative test. When performing a qualitative test, the Company assesses numerous factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying value. Examples of qualitative factors that the Company assesses include its share price, its financial performance, market and competitive factors in its industry, and other events specific to the reporting unit. If the Company concludes that it is more likely than not that the fair value of its reporting unit is less than it carrying value, the Company performs a quantitative impairment test by comparing the carrying value of the reporting unit to the estimated fair value.

During the first quarter of fiscal 2020, the Company determined that indicators of impairment were present and performed a quantitative test. In order to determine fair value, the Company used assumptions based on information available to it as of March 26, 2020, including both market data and forecasted future cash flows. The Company then used this information to determine fair value. The Company determined that the fair value of the Company's goodwill was greater than its carrying value and thus was not impaired as of that date. There were no indicators of impairment identified during the 13 weeks ended June 25, 2020.

8

Trade Name Intangible Asset – The Company recorded a trade name intangible asset in conjunction with the Movie Tavern acquisition (See Note 4) that was determined to have an indefinite life. The Company reviews its trade name intangible asset for impairment at least annually or whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. During the first quarter of fiscal 2020, indicators of impairment were present and the Company recorded an impairment charge of $2,200,000 (see Note 3 for further detail). There were no indicators of impairment identified during the 13 weeks ended June 25, 2020.

Earnings (Loss) Per Share - Net earnings (loss) per share (EPS) of Common Stock and Class B Common Stock is computed using the two class method. Basic net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding. Diluted net earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options using the treasury method. Convertible Class B Common Stock is reflected on an if-converted basis when dilutive to Common Stock. The computation of the diluted net earnings (loss) per share of Common Stock assumes the conversion of Class B Common Stock in periods that have net earnings since it would be dilutive to Common Stock earnings per share, while the diluted net earnings (loss) per share of Class B Common Stock does not assume the conversion of those shares.

Holders of Common Stock are entitled to cash dividends per share equal to 110% of all dividends declared and paid on each share of Class B Common Stock. As such, the undistributed earnings (losses) for each period are allocated based on the proportionate share of entitled cash dividends.

The following table illustrates the computation of Common Stock and Class B Common Stock basic and diluted net earnings (loss) per share for net earnings (loss) and provides a reconciliation of the number of weighted-average basic and diluted shares outstanding:

13 Weeks

13 Weeks

26 Weeks

26 Weeks

Ended

Ended

Ended

Ended

    

June 25, 2020

    

June 27, 2019

    

June 25, 2020

    

June 27, 2019

(in thousands, except per share data)

Numerator:

 

  

 

  

 

  

 

  

Net earnings (loss) attributable to The Marcus Corporation

$

(27,029)

$

18,066

$

(46,381)

$

19,926

Denominator:

 

 

 

 

  

Denominator for basic EPS

 

31,061

 

30,897

 

31,018

 

30,390

Effect of dilutive employee stock options

 

 

504

 

 

558

Denominator for diluted EPS

 

31,061

 

31,401

 

31,018

 

30,948

Net earnings (loss) per share - basic:

 

 

 

 

Common Stock

$

(0.89)

$

0.60

$

(1.53)

$

0.68

Class B Common Stock

$

(0.81)

$

0.54

$

(1.39)

$

0.59

Net earnings (loss) per share - diluted:

 

 

 

 

Common Stock

$

(0.89)

$

0.58

$

(1.53)

$

0.64

Class B Common Stock

$

(0.81)

$

0.54

$

(1.39)

$

0.59

For the periods when the Company reports a net loss, the computation of diluted loss per share equals the computation of basic loss per share since common stock equivalents are dilutive due to the net loss.

9

Shareholders’ Equity - Activity impacting total shareholders’ equity attributable to The Marcus Corporation and noncontrolling interests for the 13 and 26 weeks ended June 25, 2020 and June 27, 2019 was as follows (in thousands, except per share data):