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Author Topic: Marcus to aquire some CEC locations Chad Souder Jedi Master Film Handler Posts: 962 From: Waterloo, IA, USA Registered: Feb 2000 posted 03-22-2007 10:25 AM                     Any comments? here's the link Marcus Theatres(R) to Acquire 11 Cinema Entertainment Corporation Locations with 122 Screens Will Increase Marcus Theatres' Total to 628 Screens in Six States MILWAUKEE--(BUSINESS WIRE)--March 22, 2007--Marcus Theatres Corporation, a division of The Marcus Corporation (NYSE:MCS), today announced it has signed an agreement to acquire selected assets of the Cinema Entertainment Corporation (CEC) theatre circuit based in St. Cloud, Minn., for approximately $75,650,000 in cash, subject to certain closing adjustments. Marcus Theatres(R) will acquire, through a subsidiary, 11 CEC locations with a total of 122 screens in five metropolitan markets including St. Cloud, Minn.; Duluth, Minn./Superior, Wis.; Fargo N.D./Moorhead, Minn.; Cedar Falls/Waterloo, Iowa; and Iowa City, Iowa. Marcus Theatres will purchase and operate, through a subsidiary, the 122 screens, while CEC will continue to own and operate the balance of its existing circuit. CEC is the nation's 21st largest theatre circuit, currently operating 249 screens at 31 locations in Iowa, Minnesota, Nebraska, North Dakota and Wisconsin. The transaction is expected to be completed in late April 2007, subject to customary closing conditions, consents and approvals, including early termination or expiration of the applicable waiting period under the Hart-Scott-Rodino Act. Marcus Theatres will operate 628 screens at 52 locations in six states and become the seventh largest exhibition chain in the U.S. upon completion of the CEC transaction, along with the opening of a new theatre in Brookfield, Wis. and the closing of another nearby theatre at approximately the same time. "The purchase of the CEC theatre 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. This purchase will extend Marcus Theatres' operations into North Dakota and Iowa and will further expand our presence in Minnesota and Wisconsin. CEC is an excellent theatre operator and we intend to continue enhancing the outstanding movie-going experience for which CEC is well known," said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation. "We anticipate a smooth integration of the CEC theatres into our circuit and expect that the acquisition will be accretive to both earnings and cash flow," said Marcus. "This investment demonstrates our continued confidence in the theatre business and, coupled with the expansion of our hotel management portfolio in recent months, reflects The Marcus Corporation's commitment to growing both of our operating divisions," added Marcus. "I am pleased that Marcus Theatres will carry on the tradition of excellence established at CEC by the Ross family. Marcus Theatres will serve our communities with all of the resources available to a larger company and will provide the same dedication to our customers and associates that has been a hallmark of CEC for over 50 years. Marcus Theatres' philosophy is the same as CEC - providing customers with the best entertainment experience possible," said Bob Ross, chairman and president of CEC 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 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 CEC." Olson noted that the company's latest innovation in the movie-going experience is The Majestic, a new flagship theatre currently under construction in Brookfield, Wis. The Majestic will be a complete entertainment destination including traditional theatres, two UltraScreens, a multi-use venue for performances and meetings, a pizza cafe, a coffee and ice-cream shop and a cocktail lounge. The Majestic is scheduled to open in early May 2007. About The Marcus Corporation Headquartered in Milwaukee, Wisconsin, The Marcus Corporation is a leader in the lodging and entertainment industries. The Marcus Corporation's movie theatre division, Marcus Theatres(R), currently owns or manages 498 screens at 41 locations in Wisconsin, Illinois, Minnesota and Ohio, and one family entertainment center in Wisconsin, with one theatre currently under construction. The company's lodging division, Marcus Hotels and Resorts, owns or manages 20 hotels, resorts and other properties in ten states, with one additional property 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; (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; and (9) the terms and conditions of the asset purchase agreement with Cinema Entertainment Corporation. 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. CONTACT: The Marcus Corporation Carlo W. Petrick (Media), 414-905-1505 or Douglas A. Neis (Investors), 414-905-1100 SOURCE: The Marcus Corporation  |  IP: Logged Dennis Udovich Film Handler Posts: 71 From: Sheboygan, WI, USA Registered: Dec 2001 posted 03-28-2007 12:01 PM                        Hi Chad: I'm a Marcus GM in Sheboygan, Wis. Been with the company since 1970. A number of managers will be going to CEC sites the first week of the transition. Do you work at the Crossroads 12 or College Square Cinema?  |  IP: Logged Michael Coate Phenomenal Film Handler Posts: 1904 From: Los Angeles, California Registered: Feb 2001 posted 03-29-2007 01:31 AM                     Dennis: Can you provide any insight into why Marcus Theatres is not supporting Digital Cinema? Recently, just about every major exhibitor has had D-Cinema installed in at least some of their theatres in most large and medium-sized markets (and even in a few tiny markets). And, having spent a chunk of time tracking installations I can't help but notice the lack of D-Cinema venues in the state of Wisconsin (where Marcus has a big presence) and, in particular, the Milwaukee market.  |  IP: Logged Mark Strube Master Film Handler Posts: 322 From: Milwaukee, WI, United States Registered: Feb 2007 posted 03-29-2007 02:58 AM                        I was under the impression (from the general manager) that their new flagship Majestic in Waukesha, WI will have some D-cinema installations, but they haven't exactly been advertising it. Strange.  |  IP: Logged Michael Coate Phenomenal Film Handler Posts: 1904 From: Los Angeles, California Registered: Feb 2001 posted 03-31-2007 11:09 PM                     When I asked one of the Marcus corporate folks a couple of weeks ago about the Majestic and whether it would have any D-Cinema screens, I got a wishy-washy answer. And last year, Marcus apparently tested D-Cinema, but no amount of arm-twisting would get them to reveal which theatre(s) it was.  |  IP: Logged Mark Strube Master Film Handler Posts: 322 From: Milwaukee, WI, United States Registered: Feb 2007 posted 04-01-2007 05:17 PM                        They have digital projectors at their "North Shore" location in Mequon, WI. No idea what auditorium numbers they're on, but I know they tested it there, and I know they're Kodak. (Info from a friend of a friend.) An interesting side note - the guy who used to be the manager there is now going to be the general manager for the Majestic. http://www.bigscreen.com/journal.php?id=195  |  IP: Logged Scott Jentsch Phenomenal Film Handler Posts: 1061 From: New Berlin, WI, USA Registered: Apr 2003 posted 04-02-2007 04:49 PM                        I can confirm that Marcus has (had?) digital cinema projectors at the North Shore Cinema in Mequon, Wisconsin. Newspaper ads for a particular movie have run with vague references to digital cinema at that location, and if you call the theater and you're lucky enough to get someone that knows what you're talking about, they'll be able to tell you which shows are being shown in digital cinema. I have never been able to get an official comment from Marcus about their plans or even about the installation they have at North Shore. I just called the theater and the person that answered knew what I was talking about, but she said that they don't use that system any more. I seem to recall that Marcus was looking at Sony 4K systems, but I can't find a reference for that... With the CEC acquisitions, I saw someone put them at the #7 spot in the country for number of screens, so hopefully they step up to the plate and provide us with some digital cinema love!  |  IP: Logged Steve Scott Phenomenal Film Handler Posts: 1300 From: Minneapolis, MN Registered: Sep 2000 posted 04-03-2007 08:56 AM                     Marcus acquired most of Guetschoff Theaters Inc. locations, (GTI), another Minnesota company in the late 1990's. They were mostly an improvement in management. Marcus added some professionalism to those operations (read: some), and thankfully got rid of GTI's dreaded, undermaintained Christie ELF platters. CEC are already a decent place to see a show, so Marcus should have a good footing in those areas to expand.  |  IP: Logged Mark Strube Master Film Handler Posts: 322 From: Milwaukee, WI, United States Registered: Feb 2007 posted 04-03-2007 12:25 PM                        It wouldn't surprise me if they were considering going digital for the UltraScreens at the Majestic. They went through 3 different projectors at the Westown UltraScreen (in a span of only 7 years), the third clearly being the worst... I could see them looking for a lower maintenance system.  |  IP: Logged Michael Coate Phenomenal Film Handler Posts: 1904 From: Los Angeles, California Registered: Feb 2001 posted 04-03-2007 01:53 PM                     quote: Mark Strube It wouldn't surprise me if they were considering going digital for the UltraScreens at the Majestic. It would surprise me if they go digital in the UltraScreen auditoriums. Most digital projection installs tend to be in auditoriums with medium-sized (and smaller) screens. Aren't those UltraScreens, like, 70' or 80' wide in some cases? Digital projection tends to not look so great on excessively large screens. (35mm looks bad enough on such large screens.)  |  IP: Logged Paul Linfesty Phenomenal Film Handler Posts: 1383 From: Bakersfield, CA, USA Registered: Nov 1999 posted 04-03-2007 02:44 PM                     The Cinerama Dome in Hollywood has a 2k projector showing on their allegedly 86 feet wide screen (along the curve) and it looks fine to me. At least for ep 3 of Star Wars.  |  IP: Logged Mark Strube Master Film Handler Posts: 322 From: Milwaukee, WI, United States Registered: Feb 2007 posted 04-03-2007 04:44 PM                        Their UltraScreens are 72' wide. I only say this about digital because in my mind, out of all the screens at the Majestic, those would make the most sense to go digital. Maintenance for that projector was hell when they had only one UltraScreen at the now closed Westown... now they're going to have two? If they really were looking into 4K projectors like Scott seemed to remember, then this would make even more sense. It's all assumptions since they're being so quiet about their plans, but that's my little prediction. Personally, I'm really hoping they decide to go digital on those screens... the only UltraScreen I've seen that looked good is the new one in Sturtevant, WI... the one in this area was consistently disappointing... I believe Scott has referred to it as the "UltraBlur." At least if it's digital it'll lessen the screw-up factor.  |  IP: Logged Chad Souder Jedi Master Film Handler Posts: 962 From: Waterloo, IA, USA Registered: Feb 2000 posted 04-03-2007 07:40 PM                     Dennis - Sorry for the delayed reply. I am at the Crossroads in Waterloo. I look forward to meeting you soon.  |  IP: Logged Dennis Udovich Film Handler Posts: 71 From: Sheboygan, WI, USA Registered: Dec 2001 posted 04-04-2007 12:31 AM                        What I know is that "a lot of testing" has been going on. They haven't advertised digital showings, only to see what the public reactions are. No digital installs for the time being. Trying to determine which system to go with. I've been told the new Majestic, opening in May, will be all 35mm for the time being. Marcus Theatres takes a very conservative approach. With the CEC 11 theatre purchase, we will be the 7th largest chain in the U.S. Around 600 screens in 6 midwest states.  |  IP: Logged Michael Coate Phenomenal Film Handler Posts: 1904 From: Los Angeles, California Registered: Feb 2001 posted 04-04-2007 02:58 AM                     Being conservative about it is their prerogative. But I wonder how much business Marcus lost due to folks from Wisconsin that wanted to see "Meet The Robinsons" in digital 3-D and who ended up traveling to Illinois or Minnesota and seeing it at a competitor's theatre. Their loss, I guess. But then, there's always the possibility that time will show that Marcus was smart to wait until the D-Cinema dust settles.  |  IP: Logged

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