The Marcus Corporation Reports Record Revenues, Operating Income and Earnings for the Second Quarter of Fiscal 2018

The Marcus Corporation (NYSE: MCS) today reported record revenues, operating income and net earnings for the second quarter of fiscal 2018 ended June 28, 2018.

Second Quarter Fiscal 2018 Highlights

  • Total revenues for the second quarter of fiscal 2018 were a record $193,298,000, a 20.7% increase from revenues of $160,140,000 for the second quarter of fiscal 2017.
  • Operating income for the second quarter of fiscal 2018 was a record $29,107,000, a 51.8% increase from operating income of $19,169,000 for the second quarter of fiscal 2017.
  • Net earnings attributable to The Marcus Corporation were a record $18,619,000 for the second quarter of fiscal 2018, an 83.9% increase from net earnings attributable to The Marcus Corporation of $10,124,000 for the second quarter of fiscal 2017.
  • Net earnings per diluted common share attributable to The Marcus Corporation were a record $0.65 for the second quarter of fiscal 2018, an 80.6% increase from net earnings per diluted common share attributable to The Marcus Corporation of $0.36 for the second quarter of fiscal 2017.

First Half Fiscal 2018 Highlights

  • Total revenues for the first half of fiscal 2018 were a record $361,489,000, an 11.0% increase from revenues of $325,596,000 for the first half of fiscal 2017.
  • Operating income was a record $46,123,000 for the first half of fiscal 2018, a 22.6% increase from operating income of $37,622,000 for the first half of fiscal 2017.
  • Net earnings attributable to The Marcus Corporation were a record $28,440,000 for the first half of fiscal 2018, a 45.3% increase from net earnings attributable to The Marcus Corporation of $19,577,000 for the first half of fiscal 2017.
  • Net earnings per diluted common share attributable to The Marcus Corporation were a record $1.00 for the first half of fiscal 2018, a 44.9% increase from net earnings per diluted common share attributable to The Marcus Corporation of $0.69 for the first half of fiscal 2017.

“The second quarter of 2018 was again another record quarter for The Marcus Corporation, with record revenues, operating income and net earnings. In fact, revenues in the quarter were the highest for any quarter in our history,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation. “Not only did Marcus Theatres achieve its best quarter on record with significant increases in both revenues and operating income, it also considerably outperformed the industry, which also had a record quarter. While our theatre division drove our strong second quarter performance, revenues and operating income also improved for Marcus Hotels & Resorts.

“We are pleased to have had such a strong first half of the year, achieving two consecutive record quarters. Net earnings again benefitted from a lower income tax rate, which we expect will continue to positively impact the company over the long-term,” said Marcus.

Marcus Theatres®

Marcus Theatres reported its strongest quarter on record, with a 33.0% increase in revenues and a 54.9% increase in operating income for the second quarter of 2018 compared to the prior year period. The division outperformed the change in national box office revenues by more than 10 percentage points compared to the same corresponding weeks in the prior year, according to Rentrak.

“This was an exceptional quarter for Marcus Theatres, driven by both a blockbuster film slate and continued operational excellence across our circuit,” said Rolando Rodriguez, chairman, president and chief executive officer of Marcus Theatres. “The division far outperformed the industry thanks in part to a strong consumer response to the significant investments we have made to our theatres over the past year. This is especially true at our Marcus Wehrenberg theatres, which significantly outperformed the industry, according to Rentrak, and continues to meaningfully contribute to our results.”

Investments during the second quarter include adding the division’s signature DreamLoungerSM recliner seating to four existing locations, with additional DreamLounger upgrades currently underway at two more locations. In addition, the division converted an additional five auditoriums to its UltraScreen DLX® and SuperScreen DLX® formats, and added two new Zaffiro’s® Express locations and one new Take FiveSM Lounge during the quarter. Preliminary work at Marcus Theatres’ second BistroPlexSMlocation in Brookfield, Wisconsin has begun.

“As expected, the summer film slate included a number of highly anticipated movies, including several blockbusters that were very well received by movie-goers,” said Rodriguez. “We significantly outperformed the industry as a result of our strong movie slate, innovative operating and marketing strategies, successful loyalty program and continued focus on creating the ultimate movie going experience, with DreamLounger recliners, premium large format screens and exciting food and beverage concepts.”

The five top-performing films for Marcus Theatres in the second quarter of fiscal 2018 were Avengers: Infinity War; Incredibles 2; Deadpool 2; Solo: A Star Wars Story and A Quiet Place.

Rodriguez said the third quarter is off to a good start, thanks to the continued success of Incredibles 2 and Jurassic World: Fallen Kingdom, as well as recently opened films such as Ant-Man and the Wasp; Skyscraper; Hotel Transylvania 3: Summer Vacation; Mamma Mia! Here We Go Again and The Equalizer 2. Additional films opening through the end of the third quarter include Mission-Impossible: Fallout; Christopher Robin; The Meg; Crazy Rich Asians; The Nun; The Predator; and The House with a Clock in Its Walls.

Marcus® Hotels & Resorts

Marcus Hotels & Resorts’ revenue per available room (RevPAR) for comparable company-owned properties was essentially even in the second quarter. “Increased food and beverage revenues, higher management fees and improved operating margins were the primary contributors to the division’s improved second quarter results,” said Marcus. He noted that the prior year’s results included preopening expenses and startup losses related to the opening of the SafeHouse® Chicago, which is now fully operational.

During the quarter, the division announced that it has assumed management of the DoubleTree by Hilton Hotel El Paso Downtown in El Paso, Texas. It will also assume management of the newly constructed Courtyard by Marriott El Paso Downtown/Convention Center later this summer. This will bring Marcus Hotels & Resorts’ portfolio to 21 owned and/or managed properties across the country.

In May 2018, the division also announced that it has selected two nationally recognized firms to lead the reinvention of the 221-room InterContinental Milwaukee into an immersive arts-focused hotel, which is scheduled to be completed in mid-2019.

Conference Call and Webcast

Marcus Corporation management will hold a conference call today, Thursday, July 26, 2018, at 10:00 a.m. Central/11:00 a.m. Eastern time to discuss the second quarter results. Interested parties may listen to the call live on the Internet through the investor relations section of the company’s website: www.marcuscorp.com, or by dialing 1-574-990-3059 and entering the passcode 2180519. Listeners should dial in to the call at least 5-10 minutes prior to the start of the call or should go to the website at least 15 minutes prior to the call to download and install any necessary audio software.

A telephone replay of the conference call will be available through Thursday, August 2, 2018, by dialing 1-855-859-2056 and entering passcode 2180519. The webcast will be archived on the company’s website until its next earnings release.

About The Marcus Corporation

Headquartered in Milwaukee, The Marcus Corporation is a leader in the lodging and entertainment industries, with significant company-owned real estate assets. The Marcus Corporation’s theatre division, Marcus Theatres®, is the fourth largest theatre circuit in the U.S. and currently owns or operates 890 screens at 68 locations in eight states. The company’s lodging division, Marcus® Hotels & Resorts, owns and/or manages 20 hotels, resorts and other properties in nine states, with another property opening in El Paso, Texas during the summer of 2018. For more information, please visit the company’s website at www.marcuscorp.com.

 

Via: Business Wire

2018-07-27T09:05:18+00:00July 27th, 2018|Tags: , |