The Marcus Corporation (MCS) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Marcus Corporation Annual Meeting 2020. [Operator Instructions] As a reminder, today's conference call may be recorded. I would now like to turn the conference over to your host, Mr. Steve Marcus, Chairman of the Board. Please go ahead, sir.

Thank you. Good morning, everybody. I'm Steve Marcus, Chairman of the Marcus Corporation, and I'd like to welcome you to today's first-ever virtual annual shareholders meeting. We wish we were all together this morning as we have been in prior years. And in fact, this year's meeting was going to be at the Saint Kate the Arts Hotel, which is our exciting new hotel in Milwaukee. However, due to the COVID-19 pandemic and to support the health and well-being of everyone involved, like many other companies, we decided to host this year's meeting in a virtual format only. While you will be listening and viewing today's meeting from your screen, you will still be able to vote, if you haven't already, and ask questions at the end of the presentation, just like at the in-person meeting, thanks to the benefit of technology. Online voting instructions are located on the bottom of the welcome screen. If you would like to vote your shares during the meeting, you will need to select the proxy push voting link to cast your vote. To submit your questions for the Q&A session, please click the message icon in the upper right-hand corner of your welcome screen. You can then enter your question in the text box at the bottom of the page. Once you submit the question, it will disappear from the screen. That doesn't mean it's lost, it's showing you that we have received it. While we may not get to all the questions today due to time, we will do our best to answer as many as possible. As you listen to the meeting, you will need to advance the slides on your own. We'll let you know when to do so to keep everyone on track. With that, let's get the meeting started. I'd like to begin by introducing our corporate leadership team that you can see on Slide 2. They are, Greg Marcus, our President and Chief Executive Officer; Tom Kissinger, Senior Executive Vice President, General Counsel and Secretary; Doug Neis, Executive Vice President, Chief Financial Officer and Treasurer; Rolando Rodriguez, Executive Vice President of the Marcus Corporation and Chairman, President and CEO of Marcus Theatres; Kim Lueck, Chief Information Officer; John Murray, Vice President of Human Resources; and the newest member of our executive team is Michael Evans, President of Marcus Hotels and Resorts, who joined us in January. Michael has over 20 years of hotel industry experience with leading global companies, including Marriott International and MGM Resorts International. Mike will quickly jump in and took leadership of the division as the coronavirus evolved, and we're very happy to have him on our executive team. As leaders, we always try to anticipate the challenges and the opportunities that lie ahead and plan for them, but I don't think anyone could have imagined that day would come when we would be forced to temporarily close all of our movie theaters and hotels. We'll be hearing more about how we are managing through this crisis in a few minutes. Extraordinary times call for extraordinary solutions and extraordinary leadership. Our executive team faced the challenges head-on and has worked literally night and day to develop and execute strategies that will get us through this crisis and put us in a strong position for continued growth over the long term. We are very, very fortunate to have such an experienced and dedicated leadership team. Please move to the next slide as we begin the business portion of today's meeting. All shareholders should have submitted their proxies prior to the meeting. If there are any shareholders who have not yet voted or who have previously submitted a proxy and now would like to revoke the proxy, please see the voting instructions on the link at the bottom of the welcome screen. And now I'll call on Tom Kissinger to report on the mailing of meeting notices, the presence of a quorum and other necessary legalities.

Thank you, Mr. Chairman. Notice of this annual meeting, together with a proxy statement, proxy card and annual report were mailed on April 10, 2020, to all holders of record of our common and Class B common shares as of March 5, 2020. Based on proxies received prior to the meeting, a quorum is present for all purposes at this meeting and is represented by 84.5% of all eligible votes. Next slide, please. Before we move ahead, Steve, I'd like to also remind our shareholders and guests as we share information with you today, we'll be talking about our plans and expectations for the future. The Securities and Exchange Commission defines these plans as forward-looking statements. That means that I'm obligated to inform you that our actual results may differ materially from those projected, and that additional information about our plans as well as factors, risks and uncertainties, which may impact our expectations, future results of operations or financial condition are included in the Risk Factors section of our 10-K and 10-Q filings. So Steve, with that out of the way, I'll turn it back to you.

Thank you, Tom. Slide 5 is next. We have 3 items on the agenda today, and the first of which is the election of our Board of Directors. I'd like to introduce the Board, the nominees to you now on Slide 6. The nominees are: Greg Marcus, our President and Chief Executive Officer; Diane Marcus Gershowitz, an Investor and Real Estate Manager, and Diane is also my sister; Tim Hoeksema, Retired Chairman, President and CEO of Midwest Air Group, Inc.; Bud Selig, Commissioner Emeritus of Major League Baseball; Bruce Olson, Retired Senior Vice President of the Marcus Corporation and Retired President of Marcus Theatres; Philip Milstein, principal of Ogden CAP Properties, LLC in New York City. Philip is our lead Independent Director. Brian Stark, Founding Principal, Chief Executive Officer and Chief Investment Officer of Stark Investments in Milwaukee; Katherine Gehl, Former Chairman, President and CEO of Gehl Foods; David M. Baum, President of Baum Media Group, LLC to a former partner at Goldman Sachs; and I am the final nominee for reelection today. Our Board is committed to representing you, our shareholders, through high standards and good corporate governance. As part of these high standards, our audit, compensation and corporate governance and nominating committees are comprised entirely of outside directors. I want to thank our Board for the valuable counsel they provide to me, to Greg and our entire management team throughout the year and especially over these past few months as we've made some very difficult decisions in response to COVID-19. I know the Board will continue to offer valuable insights and support as we go forward and work to resume operations when the timing is right. That completes the first item on the agenda. Please move to Slide 7. The second item on the agenda is to approve by advisory vote the compensation of our named executive officers as disclosed in the proxy statement for this meeting. Our executive compensation program is designed to foster an ownership mentality and entrepreneurial spirit in our management team. This is an advisory vote that will not be binding on our Board. However, the compensation committee will consider very carefully the outcome of the vote when evaluating the effectiveness of our compensation program and will be making future compensation decisions for our named executive officers. The final item on the agenda on Slide 8 is to ratify the selection of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal 2020. Moving to Slide 9. I will now ask the secretary to announce the results of the voting on these 3 items.

Mr. Chairman, regarding the election of the Board of Directors, based on the proxies delivered by the company's shareholders prior to the meeting, each director on the nominated slate received no less than 15,885,208 votes. This means at least 84.5% of the votes cast were voted in favor of the reelection of each of the directors and that the entire slate of directors has been elected to serve until the next annual meeting. On the advisory vote to approve the compensation of our named executive officers, 97.3% of the votes cast were voted in favor of the executive compensation program. And on the ratification of the selection of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal 2020, 99.1% of the votes cast were voted in favor of the ratification.

Thank you very much, Tom. With Slide 10, we complete the business portion of the meeting, and I will now adjourn the official business meeting and turn the program over to Greg Marcus, who will lead an update on our operations.

Thanks, Dad. Good morning, everyone. The past 2 months has been unlike anything we've ever before experienced. Please move to Slide 11. The COVID-19 pandemic has affected everyone, with our two industries, movie theaters and hotels, among the hardest hit. Within this unprecedented environment, our priority, as it has been throughout our history, is the safety and well-being of our associates, customers and communities. As we started to develop our COVID-19 plan, the guidance became clear, temporarily closing our movie theaters was the right thing to do. So that's exactly what we did. Not too long after, due to the downturn in our hotel business and additional mandates, we temporarily closed all of our restaurants and bars. In late March and April, we also temporarily closed all of our hotels. That, too, was the right thing to do. We're working to strike a balance between taking care of our people and helping to slow the spread of the coronavirus, while at the same time making decisions that are in the best long-term interest of the company, our associates, customers and shareholders. This is a delicate balance, but vital. As shown on Slide 12, the hardest part of all these decisions is the impact the temporary closing we've had on our associates, many of whom have been laid off. Caring for and valuing our associates has been a foundation of our culture since the day my grandfather opened his first movie theater back in 1935, and it's more important today than ever before. We provided short-term compensation to those associates who were laid off in order to bridge the gap until they can receive unemployment benefits. We are also continuing to provide health insurance for those who are in our plan. A group of our associates came forward with an idea to help their fellow coworkers, creating an effort called Marcus Cares. This is a resource center that includes communications, temporary employment opportunities, job search tips, benefit information, and a private Facebook page where associates can support each other. I'm so proud of the team that led this effort. It's what makes our company great. On the next slide you can see the key elements of our response to the COVID-19 pandemic. The Marcus Corporation has been a conservatively run company for its entire 85 years of existence. Beginning with my grandfather, Ben, and continued with my father, Steve, its core foundation has always been a focus on maintaining a strong balance sheet. This philosophy has enabled us to weather numerous storms in the past and has positioned us well to weather the current crisis. As my dad said, I don't think anyone could have imagined a day would come when we would be forced to temporarily close all our movie theaters and hotels, but because of our enduring focus on our balance sheet, we entered this global COVID-19 crisis from a position of strength. Last week, we announced [Audio Gap] already strong balance sheet was further strengthened with an amendment to our credit agreement that included a new term loan. Doug will provide more details on our liquidity and financial strength in a few minutes. But it's important to note that along with the many positive benefits of this new financing, the terms of the amendment also places a number of requirements on the company. One of these is the requirement to temporarily suspend our quarterly dividend payments for the remainder of 2020. While allowing for the resumption of quarterly dividend payments during the first 2 quarters of 2021, the amendment does place a limit on the amount of those dividend payments, assuming the new financing is still in place. The fact that we have a track record of paying cash dividends for 38 consecutive years makes this requirement even more difficult. We know how important the dividend is for many of our shareholders. We never envisioned a time when we would need to spend dividend payments, yet here we are. We're in an unprecedented time that requires unprecedented solutions. And the fact is maintaining our solid financial position is critical to our ability to weather the storm and come out stronger on the other side, which will benefit our associates, customers and shareholders. We're looking forward to the day when we can resume dividend payments. But until then, we truly appreciate your support as we take the steps necessary to help ensure our long-term growth and success. Since the coronavirus crisis began, we've been working proactively to preserve cash and ensure sufficient liquidity to withstand the impacts of the current situation and ultimately emerge in a continued position of strength. We've taken a number of other major steps to enhance liquidity. These include discontinuing all nonessential operating capital expenditures. In addition to temporary laying off the majority of our hourly theater and hotel associates, we've also temporarily reduced property management and corporate office staff levels. We've reduced my salary and that of my dad, our Chairman, by 50% as well as reduced the salary of all other executives and remaining division of corporate staff. We have temporarily eliminated all Board of Directors' cash compensation. We are actively working with landlords and major suppliers to modify the timing and terms of certain contractual payments. And we are evaluating the provisions of the Coronavirus Aid, Relief and Economic Security Act of 2020, the CARES Act, and other federal or state legislation, and utilize the benefits, relief and resources under those provisions as appropriate. We believe these and other steps will enable us to manage through the short term while helping to ensure our success over the long term. With these steps in place, we are now turning our attention to how we will gradually and safely ramp our operations once state and local authorities issue their guidance. Let me get through this, I think people will want to do all the things they used to do, go outside, go out to dinner, see a movie, meet with customers and travel. When that happens, we will be there for them. We don't know when that will be, but one thing we do know is that we will get through this. While we are looking ahead and planning for that great day when we can resume operations, we don't want to overlook all that we accomplished in fiscal 2019. The highlights of 2019 start on Slide 14. We achieved record revenues for the Marcus Corporation and for Marcus Theatres and Marcus Hotels and Resorts in fiscal 2019. This was in spite of a weaker film slate, which was the primary factor behind our decrease in operating income. The Movie Tavern business we acquired in February 2019 contributed to the revenue increase. Our theater division has now outperformed the industry for 6 straight years, a significant accomplishment that underscores our industry leadership. Marcus Hotels and Resorts opened the Saint Kate the Arts Hotel in Milwaukee in June. Mike will tell you more about this extraordinary, one-of-a-kind, arts-focused hotel in a few minutes, but suffice it to say it is truly -- is a truly unique concept that has already received local, regional and national attention. Next slide, please. We also can't talk about the highlights of the year without talking about the people who made them happen, our associates. As my father always says, buildings are just bricks and mortar. It's our people who give them life. Our associates are the face of the company to our guests. They are also the faces behind the scenes who think strategically, create new ideas and, most importantly, execute on them. Thank you to all our associates for another great year. I'll now turn the program over to our 2 division leaders, Rolando Rodriguez and Michael Evans, who will cover the fiscal 2019 highlights of our 2 businesses and update you on where they are today. We'll start with Rolando, who will give you the Marcus Theatres report. He'll be followed by Michael, who will cover Marcus Hotels and Resorts. Rolando, you're up.

Thanks, Greg. As you can see on the next slide, fiscal 2019, a year of both challenges and opportunities for Marcus Theatres. Greg already mentioned the biggest challenge, a weaker-than-expected film slate that certainly impacted our overall results, but we were also presented with multiple opportunities during the year as well. And we met both with a talented and creative team of managers and associates that work so hard to make our division and the moviegoing experience better than ever, year after year. I want to start by saying thank you to our outstanding team. Looking at the opportunities presented to us in fiscal 2019, I would summarize them in 3 categories: growth, investment, and innovative operating and marketing strategies. Slide 17 addresses our growth. As Greg mentioned, we acquired the industry-leading Movie Tavern in-theater dining circuit in February, adding 208 screens at 22 locations in 9 states in the southern and eastern parts of the United States. We now have an in-theater dining at 32 locations and 37% of our first-run theaters, including our Big Screen Bistro and BistroPlex brands. As you can see on this next slide, we continued to invest in our circuit during the year, expanding our signature features and amenities to both existing and new locations, including Movie Tavern. A highlight of the year was the opening of our first newly built Movie Tavern by Marcus theater in Brookfield, Wisconsin. We now have all 3 of our movie theater concepts near our Milwaukee headquarters, where we can try new ideas and introduce new technologies to our guests. We ended fiscal 2019 with our signature DreamLounger recliner seating in approximately 77% of our first-run company-owned screens, at least 1 premium large-format screen in approximately 72% of our first-run, company-owned theaters, and one or more in-lobby dining concept in 62% of our first-run company-owned theaters. We believe these percentages are the highest among the largest U.S. theater chains and further support our industry leadership. Offering the best moviegoing experience with all the latest amenities is one aspect of the business. Another is getting people in store. Slide 19 highlights just a few of our successful marketing and operational strategies which include our very own popular $5 Tuesday promotion and our best-in-class customer loyalty program, which, by the way, just recently crossed 4 million members. This loyalty program is providing to be particularly important during these unprecedented times as it gives us the ability to stay in touch with our customers while our theaters are closed. Moving on to the next slide. Fiscal 2020 was off to a very good start through February, thanks to several new films and strong carryover holiday season comps. We knew March would include difficult comparisons to last year's top film, Captain Marvel, but we had no idea that by mid-March, we would be temporarily closing all of our theaters due to the impact of COVID-19 pandemic. Since then, we have been focused on new ways to bring in revenues as we plan ahead for when we can again welcome our guests to our theaters. Some of the things we have been doing include offering carryout Zaffiro's pizza to some of our theaters as well as drive-through popcorn stands. We're also leveraging our Marcus Magical Movie Rewards loyalty program to encourage members to purchase gift cards they can use when our theaters reopen. While numerous films scheduled for release during the second quarter have been canceled, there are still a significant number of films scheduled to hit the box office during the second half of the year. We're looking forward to the anticipated film slate for 2021, which is expected to be very strong as it now includes several films that were originally scheduled for 2020. That completes my update. Thank you again for our outstanding team of managers and associates who are enabling us to work through significant short-term challenges as we look forward to our continued long-term growth and success. Slide 22 is next, as I turn the program over to Michael, who will update you on the Marcus Hotels and Resorts. Michael?

Thanks, Rolando. When I joined Marcus Hotels and Resorts in January, I knew the company had a strong leadership team and a great group of associates, some of whom have been with us for many years, but I didn't know how experienced and resilient our team was until we face the COVID-19 crisis beginning in March. We had to quickly pivot from welcoming guests, catering meetings and events, and enjoying busy restaurants and bars to scaling down as business declined and then temporarily closing our properties. Together, we managed through the operations side and, more importantly, helped our associates with their questions and concerns. Like the Marcus Theatres team, we are putting plans in place for how we will ramp up our hotels and restaurants when it is safe to do so and increases in hotel demand enable us to again be open for business. We're all looking forward to the day we can welcome our guests and our returning associates to provide the outstanding service that Marcus Hotels is known for. As we look back at the achievements of fiscal 2019, without question the highlight was the opening in June of Saint Kate the Arts Hotel. On Slide 23, you can get a glimpse of just how special this hotel is. It's a first-of-its-kind, experiential arts hotel located in downtown Milwaukee in what had been our former InterContinental Milwaukee hotel. The initial customer and community response to the reimagined hotel was fantastic. We were especially pleased that the Saint Kate was named one of the country's best new hotels by USA TODAY 10Best Readers' Choice travel awards. Saint Kate was the only hotel in Midwest to receive this coveted recognition. The next slide highlights our newest managed property, which we added to our portfolio last year, the Hyatt Regency Schaumburg in the Chicago suburb of Schaumburg, Illinois. The hotel is across the street from the popular Woodfield Mall and close to many other leisure destinations in the area. This is our first management contract with Hyatt, and we are excited to add this highly respected brand to our portfolio. Next slide, please. Pursuing additional management contracts and other hotel development opportunities will be at the top of our list as the industry recovers from the coronavirus pandemic. One of the first things I did when I joined the company was to visit all of our properties and talk with guests and associates. I saw the passion our managers and associates have for the business and for serving our guests. We have amazing properties and have been excellent stewards of historic hotels like the Pfister and Skirvin Hilton. We have a strong corporate culture and a great reputation both locally and in the industry. For all of these reasons I believe we are well positioned to not only survive the coronavirus pandemic, but come out of it ready to build on the division's long history of success. That completes my report. Greg, back to you on Slide 26.

Thank you, Michael and Rolando. Now that you've heard about our 2 businesses, let's turn to the financial report, which will be presented by Doug Neis, our CFO. Doug?

Well, thank you, Greg. I'm going to start with a brief review of our fiscal 2019 financial performance, then I'll discuss our first quarter fiscal 2020 results and the financial steps we've taken as we navigate through the COVID-19 pandemic and its impact on our operations. As you can see on Slide 27, total revenues for the Marcus Corporation were a record $820.9 million, a 16% increase over the prior year. As Greg mentioned, the Movie Tavern revenues contributed to this increase, but on a comparable theater basis revenues for Marcus Theatres were lower than in the prior year. The film product in fiscal 2019 was simply not as good as it was the year before, and our attendance reflected that. Revenue per available room for Marcus Hotels and Resorts for our comparable company-owned properties exceeded the national averages, when excluding Saint Kate because it was closed for half the year for the renovation, and the Hilton Madison, and Monona Terrace in Madison, Wisconsin, which was remodeled during the year. Operating income was $68.2 million, an 18% decrease from fiscal 2018 due in part to the weaker film slate and nonrecurring acquisition and preopening expenses related to the Movie Tavern acquisition. Conversely, the theater division achieved meaningful increases in average ticket price and average concession revenues per person, partially offsetting the attendance decline. Although we reported reduced operating income for our hotel division during fiscal 2019, operating income from Marcus Hotels would have improved by 7.6%, if not for the additional preopening expenses and anticipated initial start-up losses associated with the introduction of Saint Kate. Slide 28 shows that net earnings were $42 million for fiscal 2019, a 21% decrease from fiscal 2018, again, reflecting the factors I just mentioned. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, which is a non-GAAP measure that's often used in our businesses to reflect cash generated from operations after adjusting for nonrecurring items, increased nearly 4% to $155.2 million in fiscal 2019. A reconciliation of net earnings to adjusted EBITDA can be found in our February press release announcing our fiscal 2019 results. Looking ahead, fiscal 2020 is a 53-week year for the Marcus Corporation compared to fiscal 2019, which was a 52-week year. The Theater division is expected to benefit the most from the extra week of operations which will occur during the busy holiday season. Next slide, please. Yesterday, we announced our results for the first quarter of 2020. The temporary property closures and expenses related to our COVID-19 response significantly impacted our performance. As Slide 30 indicates, total revenues declined 6.2% to $159.5 million. We had an operating loss of $22.2 million compared to operating income of nearly $5 million in the prior year quarter. And our net loss was $19.4 million in this year's first quarter compared to net income of $1.9 million in the first quarter of fiscal 2019. Our results were negatively impacted by nonrecurring property closure expenses and impairment charges directly related to the impact of the COVID-19 pandemic. A bright spot was our adjusted EBITDA, which was a positive $12.1 million for the first quarter of 2020, although down from the prior year quarter. Once again, you'll find a reconciliation of adjusted EBITDA in yesterday's press release. Marcus Theatres continued its record of outperforming the industry. On a comparable theater basis, the division outperformed the national box office by over 2 percentage points according to Rentrak. We didn't own the Movie Tavern theaters for the entire first quarter of last year. But when you combine our performance and the historical data from the prior owner, we believe Movie Tavern outperformed the industry by over 10 percentage points. Despite the lower attendance due to the temporary theater closures, the division achieved a 7% increase in average ticket price and a nearly 11% increase in concession revenues per person, both significant achievements. And while revenue per available room was down for Marcus Hotels and Resorts, as expected due to the hotel closures, the division also achieved some positive performance metrics. Marcus Hotels outperformed the industry by over 6 percentage points and outperformed its competitive set by more than 10 percentage points in the first quarter according to data from Smith Travel Research. With the nation now beginning to make plans for its economic recovery, we look forward to gradually ramping up our businesses and once again delivering the exceptional experiences that people enjoy at our movie theaters, hotels and resorts. Next is Slide 31. I'd like to update you on the financial steps we've taken in response to the impact of COVID-19 on our operations. As Greg pointed out, we entered the crisis from a position of strength. He also mentioned that last week, we further strengthened our already strong balance sheet with an amendment to our credit agreement which included a new $90.8 million term loan. At the end of fiscal 2019, our debt to capitalization ratio was a very modest 26%, which increased to 37% at the end of the first quarter due to the fact that we elected to draw down the full amount of our revolving credit facility. This important balance sheet metric is still remarkably lower than many of our peers. There's another aspect of our balance sheet that's often overlooked, and that's our significant real estate ownership. In addition to our owned hotels, unlike most of our peers, we own the underlying real estate for the majority of our theaters, representing over 60% of our screens and an even higher percentage of our revenues and cash flow, thereby reducing our monthly fixed lease payments. This is a significant advantage for our company relative to our peers, particularly in a time like this. We had a cash balance of $126 million at the end of the first quarter, and even if our theaters and hotels were to remain closed for the rest of the year, which is very unlikely, we believe we have sufficient cash to sustain our operations even without the new term loan. With the new financing, we have provided for an additional insurance policy to further enhance our liquidity which we believe positions the Marcus Corporation to weather this current storm well into 2021, if needed. That completes the financial report, and I'll now turn the program back over to Greg.

Thank you, Doug. Slide 32 is next. This year, we are celebrating the 85th anniversary of the Marcus Corporation. As my dad pointed out earlier, Ben Marcus set us up for success with the philosophies he created when he started the business. One of these philosophies, keep your balance sheet strong, is the biggest reason why we've been able to weather numerous storms throughout our past, and we'll weather this current crisis as well. Our company is built for challenging times like this. Our leadership team, managers and associates have stepped up to the challenge in ways that go way above and beyond, and for that, we are most grateful. We are -- we also very much appreciate the confidence and support of you, our shareholders, during this challenging time and always. That brings us to the next slide, question-and-answer session. If you are a shareholder and have a question, you can submit it by clicking the message icon in the upper right-hand corner of the screen. You can then enter your question in the text box at the bottom and hit the send button. If the question disappears, you know it has been sent. We have about 10 minutes for questions. We'll wait a few minutes to assemble the questions, then Tom will read them for everyone to hear.

Thanks, Greg. It appears there are no questions at the moment, so why don't we move on to the next slide, and then we can check back again and see if any questions come in.

Okay. Slide 34. Before we close, those of you who have attended our meetings in person in the past know we offer our shareholders a special thank you gift. We are continuing that tradition today with a $25 gift card for shareholders. You can use the gift card at any of our movie theaters, hotels or restaurants once we reopen. To request the gift card, please e-mail [email protected] and provide your name and address. You can see the e-mail address on Slide 34. Again, that's [email protected].

Thanks again, Greg. We still have no questions.

All right. Should we wait 1 more minute, Tom?

Sure. Looks like nothing is coming in, Greg.

Okay. Well, I think that will then -- I guess, we'll end the Q&A session. That completes today's virtual annual meeting. Thank you again for joining us and for your support during this challenging time. We look forward to seeing you at our theaters or hotels soon.

Ladies and gentlemen, this concludes today's conference. Thank you for your participation, and have a wonderful day. You may all disconnect.