Eric Wold

Eric Wold inquired about National CineMedia's forward bookings for later in the year, seeking insight into whether advertisers are booking further out or closer to planned advertising dates compared to the previous year. He also asked about the impact of strong demand for Platinum and Post-Showtime inventory, especially with the inclusion of AMC, on the average revenue per impression.

Answer

Chief Executive Officer Tom Lesinski stated that upfront bookings were up year-over-year, indicating a positive trend correlated with the strong upcoming box office slate. He noted that while it's early to forecast the scatter market beyond Q1, there are good signs of additional inventory purchases for Q2 and Q3. Regarding premium inventory, Mr. Lesinski emphasized that the AMC agreement is critical, and the more expensive Platinum and Post-Showtime inventory is a significant tailwind, with benefits already observed and strong performance in Q1.

Eric Wold inquired about forward bookings for later in the year compared to the previous year, specifically if advertisers are booking further out or closer to planned advertising dates. He also asked about the benefit of strong demand for Platinum and Post-Showtime inventory, especially with AMC, on the average revenue per impression.

Answer

CEO Tom Lesinski stated that upfront bookings were up year-over-year, a positive sign correlated to the strong upcoming box office slate. He noted good signs of additional inventory being purchased in Q2 and Q3, with performance looking strong compared to last year. Regarding revenue per impression, Mr. Lesinski confirmed that the AMC component is critical, and the more expensive Platinum and Post-Showtime inventory is a significant tailwind, with strong performance seen so far this year.

Eric Wold of Texas Capital Securities asked about the sustainability of Q3's positive revenue momentum into Q4, the potential for a year-end ad budget flush, and the status of planned strategic investments in sales and marketing for the year.

Answer

CEO Thomas Lesinski noted that advertiser budgeting has relaxed since the tariff debates, and strong Q3 pacing gives them optimism for Q4, contingent on no major economic issues. He also explained that strategic investments are being managed dynamically against business performance, with cost efficiencies offsetting some new spending, and the pace of investment will depend on how the rest of the year unfolds.

Eric Wold of B. Riley Securities questioned the consistency of NCM's Q2 sales pacing commentary, noting that while it was described as "strong" again, guidance was below expectations. He also asked about NCM's flexibility on existing upfront advertising commitments amid market uncertainty.

Answer

CEO Tom Lesinski acknowledged that pacing had softened slightly since the Q4 call due to increased advertiser hesitancy, particularly around tariff uncertainty affecting categories like government and auto. He noted that categories like pharma, CPG, and travel remain strong. CFO Ronnie Ng added that the scatter market is performing exceptionally well, up more than double year-over-year. Regarding upfronts, Lesinski stated that NCM intends to hold to its current cancellation policies for the remainder of the current upfront period but anticipates more flexibility will be required in negotiations for the next upfront cycle.

Eric Wold inquired about upfront visibility for 2025, including demand and pricing trends, and the company's target mix for long-term commitments versus scatter and programmatic sales. He also asked about early demand for the new premium format ad packages and whether they would be sold exclusively.

Answer

CFO Ronnie Ng explained that the advertising market is evolving, with more advertisers buying closer to campaign dates in the scatter market. He noted that NCM's upfront pricing was stable year-over-year, outperforming streaming platforms. Ng also mentioned there is significant momentum for premium format ad packages, which are a key initiative, but it's too early for specific metrics. He clarified these packages would likely be sold to multiple advertisers rather than on an exclusive basis.

Eric Wold questioned Lindblad's plans for fleet expansion through new builds, including the optimal timing for ordering new ships and the expected delivery timeframe.

Answer

CEO Natalya Leahy affirmed that now is the right time to grow capacity, citing recent additions of two Galápagos ships and increased charter agreements. She confirmed active consideration of ship acquisitions and new builds, with a new build pipeline estimated at approximately four years, and clarified the associated booking cycle.

Eric Wold from Texas Capital Securities asked about the pricing trends for 2026 bookings and how pricing is shaping up for 2027 compared to 2026. He also inquired about Lindblad Expeditions' plans for fleet expansion, specifically regarding new builds, the optimal timing for ordering new ships given high occupancy, and the current delivery timeframe for new orders.

Answer

CEO Natalya Leahy confirmed strong price integrity and momentum for both 2026 and 2027, driven by high demand for core destinations and expanded booking curves. She stated that 'the right time to grow capacity is now,' highlighting recent additions of two Galápagos ships, increased charter agreements (e.g., Greg Mortimer for Alaska, European River, Asia), and deployment optimization. Ms. Leahy noted that Lindblad is actively exploring ship acquisitions and new builds, with a new build pipeline estimated at four years, emphasizing that the selling cycle for new ships begins 2.5-3 years prior to delivery, generating deposits.

Eric Wold inquired about the demographic profile of customers booking through the Disney channel versus the traditional base, and asked if a strengthening cruise market makes acquiring used vessels more difficult, potentially shifting the focus to new builds.

Answer

CEO Natalya Leahy explained that while the core guest profile remains the same, the Disney partnership is driving an increase in multigenerational travel, prompting an expansion of their 'Explorers in Training' youth program. Regarding fleet growth, she stated that while new builds are being considered, the company is successfully expanding through various means, including acquiring ships for specific regions like the Galapagos and using long-term charters for new offerings like European river cruises.

Eric Wold of B. Riley Securities asked for an update on the percentage of 2024 tour revenue already booked and questioned the decision to maintain full-year guidance despite strong results. He also sought to understand the primary drivers of the significant 9% increase in net yield.

Answer

Executive L. Dyson Dryden stated that approximately 99% of the full-year 2024 projected marine revenue is booked. He explained that guidance was maintained due to Q4 seasonality headwinds, such as dry docks, and to account for potential cancellations, even in a normal environment. Both CEO Sven-Olof Lindblad and L. Dyson Dryden attributed the strong net yield growth to the successful implementation of dynamic pricing technology, though Dryden cautioned against extrapolating this rate of increase, suggesting future gains would be more occupancy-driven.

Eric Wold sought clarification on whether the 2030 long-term targets assume double-digit organic growth, separate from M&A contributions. He also asked if there were any one-time impacts in 2025 affecting visitation, ticket price, or RevPAR that would make it an unrepresentative base for future projections. Additionally, he requested a rank order or relative contribution perspective for the various Refresh and Build projects planned, to understand their potential impact on EBITDA or revenue.

Answer

President and CEO David Barry confirmed that double-digit organic growth is indeed assumed within the 2030 targets, even before considering acquisitions. CFO Bo Heitz added that 2025 serves as a strong and appropriate base for future projections, despite a few nuances. David Barry, when discussing Refresh and Build projects, highlighted the Jasper SkyTram refresh as a particularly powerful economic and guest satisfaction engine due to its unique location, noting that aerial ropeways generally perform strongly. He reiterated that all organic refresh opportunities must meet a minimum 15% IRR threshold.

Eric Wold sought clarification on whether the 2030 long-term targets assume double-digit *organic* growth, not just combined with M&A. He also asked if there were any one-time impacts in 2025 visitation or same-store metrics that would make it an inappropriate base for future projections. Additionally, he requested a rank order of the Refresh and Build projects by their eventual EBITDA or revenue contribution to better understand their impact.

Answer

David Barry, President and CEO, confirmed that double-digit organic growth is indeed assumed for the 2030 targets. Bo Heitz, CFO, added that 2025 serves as a strong and appropriate base year, despite a few minor nuances. Regarding project ranking, David Barry highlighted aerial ropeways like the Jasper SkyTram and Banff Gondola as 'powerful economic engines' due to their iconic locations and long-term potential, reiterating that all organic refresh opportunities target a minimum 15% IRR.

Eric Wold asked about recent trends in IMAX ticket pricing, specifically the average ticket price increase for IMAX showings over the past year, and whether expectations for additional increases are factored into the 2026 box office outlook or could be an incremental upside. He also questioned how pricing strategies differ in emerging markets compared to more developed ones.

Answer

Richard Gelfond, CEO of IMAX Corporation, noted that while IMAX does not control exhibitor pricing, the strong 2026 slate, particularly event films, presents potential for price increases, especially for film locations. For emerging markets, Mr. Gelfond explained that IMAX provides exhibitors with data on the IMAX premium, and they tend to charge a similar percentage premium as in developed markets, understanding how to maximize profit.

Eric Wold asked about observed average ticket price increases for IMAX showings over the past year, and whether these increases are factored into the 2026 box office outlook or represent potential incremental upside. He also questioned pricing strategies in emerging markets.

Answer

CEO Richard Gelfond noted that while IMAX does not control exhibitor pricing, the strong 2026 slate, particularly event films like The Mandalorian and Dune 3, presents potential for price increases. He suggested that film releases like Project Hail Mary could also drive higher pricing. For emerging markets, Mr. Gelfond explained that IMAX provides exhibitors with premium data, and they tend to charge similar percentage premiums, adjusted for local ticket prices.

Eric Wold of Texas Capital Securities asked about the potential impact of lower midweek ticket prices from exhibitors like AMC, questioning if it could attract new customers to the premium IMAX format.

Answer

CEO Richard Gelfond stated that the IMAX consumer has proven to be less price-sensitive, consistently paying a premium for a superior experience, as evidenced by strong advance ticket sales for major films. He believes exhibitor discounting is driven by their own capacity challenges and is unlikely to significantly alter the consumer dynamic for IMAX.

Eric Wold inquired about the potential impact of China's reduction in Hollywood film imports on exhibitor sentiment and the primary constraints on expanding the 'Filmed for IMAX' program.

Answer

CEO Richard Gelfond expressed high confidence that any film import reductions in China would target smaller-budget movies, not the tentpoles IMAX features. He noted that Chinese exhibitor sentiment is actually increasing due to record-breaking performance. Regarding the 'Filmed for IMAX' program, Gelfond identified available release slots as the main gating factor, not camera supply, emphasizing a strategy of selectivity for the right content.

Eric Wold asked about the strategies driving Cinemark's concession success in Q4 and throughout 2025, seeking a breakdown of how much of the increase was influenced by film mix versus basket size and incidence. He also questioned the opportunity to further increase ticket prices and concession revenues in 2026 given the economic environment.

Answer

Melissa Thomas, CFO, explained that domestic per caps increased 5% year-over-year, driven by strategic pricing (3 points), higher incidence rates (1 point), and a shift in product mix (1 point) due to merchandise and enhanced food sales. Key catalysts include increasing concession stand throughput, leveraging planograms, introducing new concepts, and expanding enhanced food offerings. She expressed optimism for moderate year-over-year growth in concession per cap in 2026, stemming from both incidence and pricing optimization, while acknowledging quarterly fluctuations based on film mix and international market dynamics.

Eric Wold asked about the strategies driving Cinemark's concession strength in Q4 and throughout 2025, the breakdown of per cap increases, and the opportunity to further raise ticket and concession prices in 2026.

Answer

Melissa Thomas, CFO, explained that domestic per caps increased 5% year-over-year, driven by strategic pricing (3 points), higher incidence rates (1 point), and a shift in product mix (1 point) due to merchandise and enhanced foods. She highlighted initiatives like improving concession stand throughput, leveraging planograms, introducing new concepts, and expanding enhanced food offerings. She expressed optimism for moderate year-over-year growth in concession per cap in 2026 from both incidence and pricing optimization.

Eric Wold asked for an outlook on the second-half film slate in Latin America and whether any major divergences from the U.S. slate could impact performance. He also questioned Cinemark's pricing power on tickets and concessions heading into the holiday season.

Answer

CEO Sean Gamble described the H2 Latin American slate as a "mixed bag," noting some films like 'Zootopia 2' should resonate well, while others like 'Wicked for Good' will likely over-index in the U.S. CFO Melissa Thomas stated that the company continues to see strategic pricing opportunities, using data and analytics to maximize revenue while ensuring guests perceive strong value.

Eric Wold inquired about any anticipated shifts in Marine Products' model mix or focus post-integration, and whether their current strategy aligns with market needs. He also asked about the opportunities to expand distribution for both MasterCraft and Marine Products brands within the combined 500-plus dealer network, and what percentage of dealers might take on additional brands.

Answer

Brad Nelson, Chief Executive Officer, stated that while opportunities to enhance innovation exist, the specific plan is not yet ready for disclosure. Scott Kent, Chief Financial Officer, added that Marine Products' existing leadership will continue to run the brands independently, with MasterCraft aiming to accelerate their current successful strategies. Brad Nelson confirmed significant opportunities for geographic expansion, particularly in coastal areas for MasterCraft and inland for Marine Products. He noted that while not every dealer would take on new brands, a thorough market-by-market plan is in place to leverage the expanded network for growth.

Eric Wold inquired about any early expectations for potential shifts in Marine Products' model mix or focus once integrated into MasterCraft. He also asked about the opportunity to expand distribution for both brands within the combined 500-plus dealer network, specifically what percentage of dealers might take on the other side's brands.

Answer

Brad Nelson, CEO, stated that opportunities to quicken the pace of innovation and add 'special sauce' have been identified across the combined portfolio of 65 models, but specific plans are not yet ready for revelation. Scott Kent, CFO, clarified that Marine Products will operate as a separate, independent segment with its existing leadership. Brad Nelson added that while there's macro opportunity for dealer network expansion, it will be evaluated market by market, considering local dynamics, water types, and competitors. He confirmed a thorough plan is identified for cross-synergy and growth, but specifics are not yet unveiled.

Eric Wold asked about the expected retail cadence throughout the fiscal year and whether the company's guidance incorporates any future interest rate cuts. He also questioned the company's comfort level with leverage for potential M&A, including how high they would go and their strategy for deleveraging.

Answer

Alec Carman, Director of Strategy and Investor Relations, clarified that only *occurred* rate cuts are factored into guidance, not future ones, noting the greater impact of longer-term rates on consumers. CEO Bradley Nelson expressed satisfaction with Q1 results, reiterated the 5-10% retail decline expectation, and highlighted the anticipated strong ramp-up in the second half driven by new X series product launches like the X24. Regarding M&A, Mr. Nelson emphasized maintaining a flexible, debt-free balance sheet to pursue high-return capital allocation strategies, including share buybacks and inorganic opportunities, but declined to comment on specific leverage thresholds.

Eric Wold from Texas Capital Securities asked about the expected retail progression throughout the fiscal year and whether the current guidance incorporates any future interest rate cuts. He also questioned MasterCraft's comfort level with leverage for potential M&A, how high they would go, and their strategy for deleveraging post-acquisition.

Answer

Alec Carman, Director of Strategy and Investor Relations, clarified that only *occurred* rate cuts are factored into the forecast, not future ones, and noted the psychological benefit of lower rates for consumers. CEO Bradley M. Nelson expressed satisfaction with Q1 results, reiterated the 5%-10% retail decline forecast, and highlighted confidence in a strong second-half ramp driven by new X series products. Regarding M&A, Mr. Nelson stated they maintain a flexible, debt-free balance sheet to pursue high-return opportunities, including inorganic M&A, but declined to comment on specific leverage triggers.

Eric Wold of Texas Capital Securities questioned if the FY26 sales growth guidance relies on higher Average Selling Prices (ASPs) and asked about the interest rate level needed to stimulate demand from payment-sensitive buyers, and if more promotions would be necessary.

Answer

CFO Scott Kent clarified that unit volume, not ASP, is the primary driver for FY26 revenue growth, with overall ASPs expected to be flat. He noted a stronger second half for ASPs due to new product launches. CEO Brad Nelson stated that their guidance does not assume interest rate cuts, so any reduction would be an upside. He added that while the market is adapting to higher rates, they still pose a challenge to consumer sentiment.

Eric Wold from Texas Capital Securities questioned the rationale behind the revised fiscal 2025 revenue guidance and sought clarity on the factors influencing the dealer inventory reduction target.

Answer

CFO Timothy Oxley explained the guidance was lowered from a potential $295 million to $275 million because retail sales are trending closer to a 10% decline rather than a more optimistic 5% decline, reflecting increased dealer caution. Regarding inventory, Mr. Oxley stated that due to disciplined production, he now expects the company to achieve the high end of its inventory reduction goal, closer to 1,000 units.

Eric Wold of Texas Capital Securities questioned the revision to full-year guidance, asking if conditions had degraded or if the prior high-end was based on an improvement that did not occur. He also asked about the factors influencing the dealer inventory reduction target.

Answer

CFO Timothy Oxley clarified that the previous guidance's high end was contingent on retail trending closer to down 5%. As caution from consumers and dealers has increased, the range was revised down to reflect current conditions. Regarding inventory, Oxley expressed confidence that due to disciplined production, the company will likely achieve a reduction at the higher end of the 600 to 1,000 unit range.

Eric Wold of B. Riley Securities asked about the drivers of strong Average Selling Prices (ASPs), particularly the sequential increase at Crest, and the expected ASP trend for the remainder of the year. He also inquired about the anticipated promotional environment for the upcoming boat show season.

Answer

Executive Timothy Oxley explained that ASPs will likely decrease in Q2 due to mix but are expected to see significant increases in the second half, driven by the launch of the ultra-premium XStar model rather than price hikes. He anticipates the current highly promotional environment will persist through the boat show season until noncurrent inventory levels normalize. CEO Bradley Nelson added that promotions are more pronounced in the pontoon segment but remain balanced overall.

Eric Wold with Texas Capital Securities asked about demand trends across various income groups and price points following initial boat shows, specifically if strong high-end demand implied weakness at the low end, and how consumer caution is evolving.

Answer

CEO William Brett McGill noted strong demand at the high-end, particularly from the Fort Lauderdale Boat Show, with some buyers who had been waiting now entering the market. CFO Michael McLamb added that premium products are generally outperforming value/entry-level segments, which are more challenged. Both executives highlighted that broader uncertainty and external news events cause a "start-stop" effect on consumer buying trends across all segments.

Eric Wold asked about demand trends across various income groups and price points following initial boat shows, particularly concerning the high-end versus lower-end segments, and whether premium buyers are returning to the market.

Answer

CEO William Brett McGill and CFO Michael McLamb noted strong demand at the high-end, particularly at the Fort Lauderdale Boat Show, with premium products historically leading recoveries. They observed that the value and entry-level segments are more challenged, and overall consumer uncertainty leads to 'start-stop' buying behavior.

Eric Wold asked if boat manufacturers are making extra adjustments to production to get ahead of slowing retail activity and requested an update on the Florida market's recovery from last year's hurricanes.

Answer

CFO Mike McLamb noted that while the industry aims to keep inventory in check, the unexpectedly sharp sales decline in the June quarter is forcing manufacturers to reset production plans for 2026. CEO Brett McGill added that the recovery in parts of Florida has been slower than anticipated, with damaged docks and homes still having a more significant impact than previously realized.

Eric Wold sought more detail on the April sales softness, asking if it was concentrated in certain price points and whether higher-end buyers are now requiring more promotions.

Answer

Executive William McGill confirmed the April softness was across all segments. Executive Michael McLamb explained the issue was less about price and more about consumer paralysis from tariff uncertainty, which rendered promotions less effective. McGill characterized the current environment as a "buyer's market," even for premium products, but McLamb expressed optimism for margin recovery once uncertainty clears.

Eric Wold questioned the expected level of promotional activity for the upcoming boat show season and inquired about the key catalysts needed for the Florida market to recover from the recent hurricanes.

Answer

CEO Bill McGill anticipated that promotional activity will remain high but noted that MarineMax's higher-end product mix and new models help distance the company from the most intense discounting. Regarding Florida's recovery, McGill explained it's a complex process involving marina and dock rebuilding, power restoration, and the return of seasonal residents, which will take time. CFO Michael McLamb added that the company's diversified business model provides flexibility in a promotional environment.

Eric Wold inquired about the nature of Gloo's 20+ million-dollar annual contract value (ACV) customers, specifically whether they represent multi-product/multi-service engagements or large-scale single offerings, and the factors influencing the pace of revenue conversion from these deals. He also sought details on synergy realization from past acquisitions and its contribution to achieving Adjusted EBITDA profitability. Furthermore, Wold asked about Gloo's investment strategy for its Gloo 360 business, including sales headcount and service delivery, and whether its long sales cycle would lead to back-end loaded bookings for 2026. He also probed into potential AI capacity issues and the company's mitigation strategies, the total addressable market for million-dollar customers, and a comparison of Masterworks and Westfall Gold's services, including their cross-sell potential. Finally, Wold questioned Gloo's M&A doctrine, including pricing and synergy opportunities, and the potential to accelerate future acquisitions into 2026, as well as the typical timeline for acquired companies to demonstrate revenue synergies and organic growth boosts.

Answer

CEO Scott Beck explained that million-dollar customers primarily engage with Gloo 360 for advanced, AI-powered infrastructure, Masterworks for donor development and mass fundraising (e.g., American Bible Society), and Midwestern for next-gen tech development. He highlighted that these customers are typically network capability providers, not churches. Head of Technology Pat Gelsinger added that proof points in specific categories accelerate deal closures, leading to faster-than-expected pipeline conversion for Gloo 360, contradicting typical long sales cycle expectations. Gelsinger detailed Gloo 360 investments in sales capacity, integrating customer talent, and targeted capabilities like AI to enhance margins. He also stated that Gloo is not currently facing AI capacity issues but is actively planning for future scale. Beck further clarified that Westfall Gold focuses on major donor engagement, while Masterworks excels at nurturing smaller donors and maintaining relationships between major events, creating strong cross-sell synergies. Regarding M&A, Beck emphasized a strategic, disciplined approach focusing on accretive acquisitions that build platform synergies and support the goal of Q4 EBITDA profitability, with 2026 guidance not relying on one-time major campaigns but rather organic growth and planned acquisitions. He noted that acquisition business cases are conservative regarding upfront synergy assumptions, with organic growth expected from both core Gloo offerings and past acquisitions.

Eric Wold asked about the effectiveness of Dave & Buster's new marketing messages, specifically whether consumers are driven by promotional offers or top-of-mind awareness, and how the positive food and beverage comps translate to consumer spend and time in the Midway.

Answer

CEO Tarun Lal explained that smart value offers, presented as compelling combo packages, are resonating well with guests, driven by data-driven testing. He also noted past underinvestment in games innovation, with a strong pipeline of 10+ IP-driven games for 2026 and the successful rollout of Human Crane. CFO Darin Harper added that guests are spending more time and money in the Midway, indicating healthy engagement.

Eric Wold asked about the effectiveness of Dave & Buster's new marketing messages, specifically whether consumers are driven by promotional offers or top-of-mind awareness. He also inquired about trends in Midway (games) engagement and spend, given the positive food and beverage comparable sales.

Answer

CEO Tarun Lal explained that 'smart value offers' presented as combo packages, rather than just discounts, are resonating with guests, a finding supported by data-driven consumer testing. He also highlighted upcoming IP-driven game launches for 2026 and the strong performance and ROI of the Human Crane rollout. CFO Darin Harper added that guests are spending more time and money in the Midway.

Eric Wold inquired about the Q2 2025 same-store sales trends, specifically asking about July's performance beyond calendar shifts and any observed changes in consumer spending habits or in-store behavior compared to earlier in the quarter.

Answer

Darin Harper, CFO, stated that no significant change in consumer spending habits was observed. He noted that the 'eat and play' combo messaging and 'summer of games' resonated more with guests than a later summer leaderboard initiative, providing key learnings for optimization in the second half.

Eric Wold asked for more detail on the Q2 2025 same-store sales trends, particularly July's performance beyond calendar shifts, and whether there were any changes in consumer spending habits or reactions once inside the stores.

Answer

CFO Darin Harper stated that there was no significant change in consumer spending habits once in the store. He noted that learnings from the 'eat and play combo' messaging and the 'summer of games' resonated more with guests than a later summer leaderboard initiative.

Eric Wold asked for more detail on Q2 same-store sales trends, specifically if there was any shift in consumer spending habits or reaction beyond calendar shifts and school starts, and if in-store spending habits changed.

Answer

Darin Harper (CFO) stated there was no change in spending habits. He noted that 'eat and play combo' and 'summer of games' messaging resonated more with guests than a later summer leaderboard initiative, providing key learnings for optimization.

Eric Wold from Texas Capital Securities asked if the fiscal 2026 guidance assumes any interest rate cuts and how the company might adjust its promotional strategy if rate relief materializes during the boat show season. He also sought insight on the amount of rate relief needed to stimulate demand from payment-sensitive buyers.

Answer

CEO Steve Menneto clarified that the guidance does not include any rate cuts and that the company is currently in a 'normalized consumer discount' phase. CFO Bruce Beckman added that while a Fed rate cut would immediately benefit dealer floor plan financing, it would take time to trickle down to consumer rates. Beckman acknowledged that lower rates are an important factor for bringing payment buyers back to the market and driving industry growth.

Eric Wold asked about the competitive promotional landscape following the boat show season and the company's strategy for dealing with aggressive competitors. He also inquired about the overall health of the dealer network.

Answer

CEO Steven Menneto explained that strong new product performance has reduced the need for aggressive promotions and their approach has remained consistent. CFO Bruce Beckman added that promotional levels are expected to be lower in Q4 year-over-year and that the competitive environment should moderate. Regarding dealers, Menneto stated their health is 'pretty good across the board,' which Beckman reinforced by noting the company's active monitoring and satisfaction with the network's current standing.

Eric Wold asked about the sustainability of strong Average Selling Prices (ASPs), potential shifts in customer ordering patterns, and the expected promotional environment for the upcoming boat show season.

Answer

CEO Steven Menneto attributed the strong ASPs to a favorable product mix skewed towards premium Malibu and larger Pursuit models, which are popular with current cash buyers. He noted that while their promotional spending decreased sequentially from Q4, they still anticipate a competitive retail environment during the boat show season.

Eric Wold of Texas Capital Securities asked about AMC's pricing strategy, specifically the balance between new weekday discounts and weekend price hikes, the approach to food and beverage revenue, and the recent changes to pre-show advertising length with National CineMedia.

Answer

President, Chairman & CEO Adam Aron explained that the new '50% off Tuesdays and Wednesdays' initiative is designed to boost traffic on historically slower days, which gave them the confidence to raise prices on busier days. He noted that consumer willingness to pay for premium formats supports this strategy. For food and beverage, Aron stated the focus is on a multi-pronged approach: increasing menu variety, driving more items per transaction, and selective price increases. Regarding the pre-show, he clarified the NCM ad deal is contractual, but AMC is streamlining its own promotional content and may reduce the number of trailers to shorten the overall pre-show time, an action that was anticipated when making the NCM deal.

Asked about the company's food and beverage pricing strategy, specifically whether the focus is on price increases or driving purchase incidence, and inquired about recent reports of cutting back on the extended pre-show advertising time with National CineMedia.

Answer

Adam Aron explained that for food and beverage, they are pursuing a multi-pronged strategy including menu variety, increasing units per transaction, and some price increases. Regarding the pre-show, he clarified that the NCM ad agreement is not being cut, but AMC is shortening its own marketing content and potentially reducing the number of trailers to balance the overall pre-show length, a move that was anticipated when the NCM deal was made.

Eric Wold from Texas Capital Securities inquired about any non-recurring SG&A expenses in Q2 due to trade disruptions and sought clarity on whether Q2's paused orders were resumed, canceled, or shifted into Q3.

Answer

CFO Yves LePendeven explained that it was difficult to quantify a one-time SG&A impact but pointed to the supplemental gross margin bridge, which shows nearly five percentage points of margin decline directly attributed to tariffs. He added that while some Q2 orders rolled into Q3, shipping patterns largely normalized in June after new pricing was established with customers, and the Q3 order book looks strong.

Eric Wold asked about the cautiousness of wholesale partners, whether point-of-sale (POS) data corroborates this trend, the drivers behind increased DTC promotional response, and the potential impact of U.S. election-related tariffs.

Answer

Chief Financial Officer Yves Le Pendeven confirmed that U.S. POS data showed a low double-digit decline, supporting wholesaler caution, and noted consumers are waiting for promotional periods like Black Friday. He attributed lower Q4 margin guidance to this promotional activity. Chief Executive Officer Cynthia Williams added that Funko is diversifying its supply chain away from China, with under 10% of its tariff-exposed business currently manufactured there, but noted a potential short-term risk to shipping capacity if tariffs are enacted.

Eric Wold of Texas Capital Securities inquired about the hotel division's 2026 group booking pace, asking for a breakdown between Milwaukee and other markets to gauge the impact of the convention center expansion. He also asked about the theater division's new blockbuster pricing surcharge, specifically its size and the percentage of tickets it might affect.

Answer

CFO & Treasurer Chad Paris explained that hotel group pace gains are driven by renovated meeting spaces across Wisconsin, and while the Milwaukee convention center has a positive effect, he could not provide a specific data split. Chairman, President & CEO Gregory S. Marcus added that convention center activity is anecdotally increasing. Regarding theater pricing, Chad Paris detailed that the 'Everyday Matinee' program increased from $7 to $7.50, with some blockbuster films priced at $8.50, representing about a $1 surcharge. He stressed a cautious approach to protect attendance, which Gregory S. Marcus noted is an investment in building habitual moviegoing.

Eric Wold of Texas Capital Securities inquired about the drivers of the 20% increase in 2026 group booking pace for the hotel segment, asking for a breakdown between Milwaukee and other markets. He also asked for details on the new blockbuster ticket surcharges in the theater division, including the amount and the potential percentage of tickets it would affect.

Answer

CFO & Treasurer Chad Paris attributed the strong hotel group pace to renovated meeting spaces, particularly in Wisconsin, and noted positive effects from the Milwaukee convention center expansion without providing a specific data split. Chairman, President & CEO Gregory S. Marcus added that convention center activity is anecdotally increasing. Regarding theater pricing, Mr. Paris explained that the Everyday Matinee program price increased, and a surcharge of approximately $1.00 is being applied to select blockbuster films. Mr. Marcus emphasized that driving overall attendance remains a key strategic investment.

Eric Wold of Texas Capital Securities inquired about the drivers of the 20% gain in group booking pace for 2026 in the hotel segment, asking for a breakdown between Milwaukee and other markets. He also asked for details on the new blockbuster ticket surcharges in the theater division, including the amount and the potential percentage of tickets it would affect.

Answer

CFO & Treasurer Chad Paris explained that the hotel group pace gains were driven by renovated meeting spaces across Wisconsin properties, but did not provide a specific Milwaukee vs. non-Milwaukee breakdown. CEO Gregory S. Marcus added that the Milwaukee convention center expansion is anecdotally increasing activity. Regarding theater pricing, Paris stated the 'Everyday Matinee' program increased from $7 to $7.50, with some blockbuster films priced at $8.50, representing the surcharge. He emphasized a cautious approach to protect attendance, which Marcus noted is an investment in building habitual moviegoing.

Eric Wold of Texas Capital Securities inquired about the drivers of the 20% increase in 2026 group booking pace for hotels, asking for a breakdown between Milwaukee and non-Milwaukee markets. He also asked for specifics on the new blockbuster ticket surcharges, including the amount and the potential percentage of tickets it would affect.

Answer

CFO & Treasurer Chad Paris attributed the strong hotel group pace to renovated meeting spaces, particularly in Wisconsin, and noted positive effects from the Milwaukee convention center expansion without providing a specific data split. Chairman, President & CEO Gregory S. Marcus added that convention center activity is anecdotally increasing. Regarding ticket pricing, Chad Paris explained the everyday matinee price increased from $7 to $7.50, with some blockbuster films priced at $8.50, representing about a $1 surcharge. He stressed a cautious approach to protect attendance, which Gregory S. Marcus noted is an investment in building habitual moviegoing.

Eric Wold of Texas Capital Securities inquired about the hotel and theater segments. He asked for a breakdown of the 20% group pace gain for 2026 between Milwaukee and non-Milwaukee markets to gauge the impact of the convention center expansion. For theaters, he questioned the size of the new blockbuster pricing surcharge and what percentage of tickets it might affect.

Answer

CFO Chad Paris explained that group pace gains are broad-based, driven by renovated meeting spaces across several Wisconsin properties, and did not provide a specific Milwaukee-only split. CEO Gregory S. Marcus added that convention center activity is anecdotally increasing. Regarding theater pricing, Paris stated the surcharge is generally a $1 increase on certain films, moving the Everyday Matinee program from $7 to $7.50 or $8.50. He reiterated a cautious approach focused on driving overall attendance and ancillary revenue.

Eric Wold of B. Riley Securities, Inc. asked about the drivers behind the minimal 0.8% increase in concessions per patron, the company's ability to implement future price increases, and the strategic impact of the Hilton Milwaukee renovation on pricing and market competitiveness.

Answer

Chad Paris (executive) explained that the modest concession per capita increase was almost entirely due to less aggressive inflationary pricing compared to prior years, with customer incidence and basket size remaining stable. He noted that while the company has successfully passed on costs before, it will be cautious about future price hikes in a softening economy. Regarding the Hilton Milwaukee, Gregory S. Marcus (executive) and Chad Paris (executive) described the renovation as both a necessary update and a strategic investment to align with the expanded convention center. They anticipate the refreshed, premium product will allow them to capture more group business and benefit from being the newest, most attractive hotel connected to the center.

Eric Wold from B. Riley Securities sought to quantify the impact of the Value Tuesday and $7 Matinee promotions on the quarter's results and asked when the company would lap these changes. He also questioned what conditions would prompt M&A activity on the hotel side of the business.

Answer

CFO Chad Paris explained it is difficult to precisely quantify the promotions' benefit but noted overwhelmingly positive customer feedback and stated the company will lap the changes in May of the following year. CEO Gregory S. Marcus added that the hotel M&A market is slow, not just due to interest rates, but because potential sellers are not currently pressured to transact. He suggested lower rates might actually help loosen the market.

Asked about the strategy for used vehicle inventory acquisition via the cash offer tool and the reasons for the relative decline in F&I and parts/service revenue.

Answer

The company is comfortable with its current used vehicle inventory levels, which are managed through the cash offer tool and direct acquisitions at dealerships. The decline in F&I and parts/service revenue is attributed to lower used vehicle throughput in service departments and a normalization from post-COVID highs, with improvement expected in 2025.

Eric Wold asked about recent business mix shifts at Topgolf, specifically between midweek and weekend traffic, and whether the type of holiday events being booked has changed. He also inquired about any changes to the venue opening pipeline strategy for 2025.

Answer

President and CEO Chip Brewer responded that there have been no meaningful shifts in midweek versus weekend business recently. On the venue pipeline, he explained that the number of openings has been adjusted to reflect current business conditions and maximize cash flow, but affirmed that the development pipeline and new venue returns remain excellent.

Eric Wold from B. Riley Securities, Inc. asked about the company's pricing strategy for admissions over the next two years, particularly in Orlando, and inquired about the current penetration rate of mobile app transactions for in-park spending.

Answer

CEO Marc Swanson affirmed the company's ability to continue raising prices, citing its strong value proposition relative to Orlando competitors, while maintaining a focus on total revenue growth. Interim CFO James Forrester stated that mobile app penetration for all in-park purchases is currently just under one-third, highlighting substantial room for future growth.

Asked about the drivers of the food and beverage ratio increase (price vs. other factors), the 12-month goal for this metric across the network, and any observed changes in average customer spending behavior.

Answer

The recent F&B ratio increase was driven entirely by operational improvements and a revamped menu, not price increases. The goal is to raise the F&B ratio from $0.80 to over $1.00 across the network through technology (mobile ordering, tablets) and a holistic approach to training and hiring. The average customer's behavior is steady, with the only softness seen in corporate bookings due to pre-election uncertainty.

Asked for a breakdown of same-store sales guidance between attendance and per-person spend, and how the company plans to offset cost inflation without raising prices.

Answer

Per-person spend is expected to increase not through price hikes on bowling, but through growth in higher-per-cap events, a successful online booking platform, and increased F&B attachment. To offset inflation, the company has other levers to pull, including rebuilding procurement and systems to manage costs effectively.

Asked for a comparison of current Summer Season Pass sales to historical performance and questioned whether the recent high levels of investment are temporary or represent a new, lower-margin normal.

Answer

Current pass sales are strong, especially considering redemption hasn't started yet. The recent high investment levels are temporary and expected to decrease, with Q3 marking the low point. Future growth will lead to normalized investment as a smaller percentage of a larger EBITDA base.

Eric Wold from B. Riley Securities questioned how retailer confidence in content-led properties is affecting ordering patterns and inventory commitments for the upcoming stronger film slate. He also asked for an outlook on the puts and takes for gross margin in the fourth quarter.

Answer

Executive Stephen Berman explained that retailers are conservative with unproven IP like "Dog Man," but JAKKS has plans to react quickly to strong sell-through. He emphasized that the company avoids taking large inventory risks on new properties. Executive John Kimble addressed the margin question, reiterating the full-year target of at least 30% gross margin and noting that Q4 is a smaller quarter where percentages can be volatile.

Eric Wold inquired about the rental environment for new builds, potential cost pressures for 2018, and Regal's official stance on participating in subscription services like MoviePass.

Answer

CEO Amy Miles noted the retail environment is advantageous for both new builds and renovations. CFO David Ownby detailed operating cost components, highlighting a 4% rise in hourly labor costs that he expects to moderate. Regarding subscriptions, Amy Miles stated Regal will take a 'wait and see' approach with MoviePass and will not entertain discounted tickets or concession revenue sharing.