The Marcus Corporation
) recently enhanced shareholders' value based on its strong cash
flow position and in anticipation of a dividend tax rate increase
in 2013. The board of directors has approved a special dividend
of $1.00 per share. Additionally, it has brought forward the date
of payment for the next two regular quarterly dividends totaling
17 cents per share.
Management has rescheduled the dividend payments from February
and May, 2013 to December 28, 2012. The dividend is payable to
shareholders of record on December 17. The company also plans to
return to its regular dividend payment schedule from August 2013.
Besides its regular dividend payouts, the company has a share
repurchase program in place. At the end of first quarter of
fiscal 2013, the company had cash and cash equivalents of $14.3
million versus $12.4 million in 2012. Shareholder's equity was
$352.3 million compared with $343.8 million in 2012.
Marcus is not the only company attempting to avoid the potential
changes in the tax law for 2013. In the last one month, many
companies have taken up the same strategy by announcing special
dividends. Among hoteliers and casino operators,
Wynn Resorts Limited
) rewarded its shareholders with a hefty special dividend of
$7.50 per share in third quarter 2012.
Las Vegas Sands Corp.
) also approved a special dividend of $2.75 per share on top of
its regular quarterly dividend of 25 cents. We believe additional
dividend along with the acceleration of regular dividend payments
affirm Marcus' positive outlook and reflects its confidence in
Marcus currently carries a Zacks #2 Rank, which translates into a
short-term 'Buy' rating. We also have a long-term 'Outperform'
recommendation on the stock. Over the last 7 days, one analyst
moved the estimate upward for the upcoming quarter from 13 cents
to 15 cents per share. We believe that the company's decision to
distribute more profits with shareholders encouraged the analyst
to pull its estimate upward, which in turn enhanced its Zacks
LAS VEGAS SANDS (LVS): Free Stock Analysis
MARCUS CORP (MCS): Free Stock Analysis Report
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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