March 14, 2012 · 0 Comments
MILWAUKEE–()–The Marcus Corporation today reported results for the third quarter ended February 23, 2012. Marcus Theatres® benefited from a solid slate of popular films, and the results of Marcus® Hotels & Resorts continued to improve.
Third Quarter Fiscal 2012 Highlights
First Three Quarters Fiscal 2012 Highlights
“We continued our momentum in the third quarter, with improved revenues, operating income and net earnings. Marcus Theatres benefited from a steady stream of hit movies throughout the quarter. The results of Marcus Hotels & Resorts continued to improve, even though our third quarter is historically the weakest quarter for this division due to reduced travel during the winter season in our predominantly Midwestern locations,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation.
“Marcus Theatres achieved an 11.7% increase in revenues and a 53.0% increase in operating income in the third quarter. The film slate during this year’s third quarter was much stronger than it was in the same quarter last year, driving increased revenues not only during the strong holiday season, but in January and February as well. In fact, we ended the quarter with nine consecutive weeks of increased box-office revenues,” said Marcus.
“The top performing pictures for the third quarter of fiscal 2012 were Sherlock Holmes: A Game of Shadows, Mission: Impossible – Ghost Protocol and Alvin and the Chipmunks: Chipwrecked. Our fiscal 2012 fourth quarter is also off to a good start with the strong openings of films such as Act of Valor and Dr. Seuss’ The Lorax (3D). Films with good box-office potential during the early spring season include 21 Jump Street, the first of the highly anticipated series The Hunger Games, Wrath of the Titans (3D) and the re-issue of Titanic in 3D,” said Bruce J. Olson, senior vice president of The Marcus Corporation and president of Marcus Theatres.
“Our fourth quarter ends in May with several anticipated hits including The Avengers (3D), Dark Shadows, Battleship and Men in Black 3 (3D). Fiscal 2012 is a 53-week year for us and the additional week will include the traditionally strong Memorial Day weekend,” said Olson.
“Looking ahead to the early summer season, the film schedule has a number of potentially strong performers including Snow White and the Huntsman, Madagascar 3 (3D), Rock of Ages, Pixar’s Brave (3D), The Amazing Spider-Man (3D), Ice Age: Continental Drift and The Dark Knight Rises,” said Olson.
He added that during the fiscal 2012 third quarter Marcus Theatres acquired the former OMNIMAX Theatre in the Duluth Entertainment Convention Center in Duluth, Minn. adjacent to its 10-screen Duluth Cinema and will convert it to the division’s 14th 70-foot-wide UltraScreen® auditorium. “We also completed the previously-announced purchase of the Showtime Cinema, a 12-screen theatre in a southwestern Milwaukee suburb and opened our second full-service Zaffiro’s Pizzeria & Bar restaurant at the Parkwood Cinema in suburban St. Cloud, Minn. Our third full-service Zaffiro’s restaurant is under construction at the Ridge Cinema in New Berlin, Wis. and is expected to open in late May or early June,” said Olson.
Marcus® Hotels & Resorts
Marcus Hotels & Resorts continued its steady progress in the fiscal 2012 third quarter. Revenue per available room (RevPAR) increased 9.7% for the quarter, reflecting improvement in both occupancy and average daily rate.
“The third quarter RevPAR increase once again outperformed our peer group in the upper-upscale segment of the lodging industry and our average daily rate increased for the fifth consecutive quarter. Year-to-date, RevPAR was also up 9.7% and the average daily rate increased 5.4%. Occupancy is at historic highs and we continue to be encouraged by the positive trends in our average daily rate,” said Marcus.
Marcus added that the division is continuing to pursue hotel investment and management opportunities as well as maintaining the quality of its properties and guest service. “Our ability to provide an exceptional experience for our guests was recently highlighted by national recognition for several of our properties. The Pfister Hotel in Milwaukee was ranked among the Top 25 Luxury Hotels in the United States by TripAdvisor®, the Grand Geneva Resort & Spa in Lake Geneva, Wis. received AAA Four Diamond status for the 15th consecutive year, and the Skirvin Hilton in Kansas City, Mo. was included in the U.S. News & World Report list of Best Hotels in the USA,” he said.
“We are pleased with the improved year-to-date performance of Marcus Theatres and Marcus Hotels & Resorts. With a debt-to-total-capitalization ratio of under 40%, we are positioned to pursue potential growth opportunities in both of our businesses,” added Marcus.