Earnings Review: The Marcus Corporation (NYSE: MCS) Reports Third Quarter Results
MCS beats by $0.06 ----- Marcus Corp MCS $0.11 analysts average $0.05 same period last year $0.06
The Marcus Corporation (NYSE: MCS) reported results for the third quarter ended February 25, 2010. Record revenues and operating income for Marcus Theatres® helped to compensate for the downturn in the lodging industry that continued to affect the performance of Marcus Hotels and Resorts.
“There will be at least 20 digital 3D titles released in 2010, with the potential for even more in 2011. With this increased production, we expect that digital 3D will continue to positively impact the box office”
Third Quarter Fiscal 2010 Highlights
- Total revenues for the third quarter of fiscal 2010 were $96,444,000, compared to revenues of $91,011,000 for the third quarter of fiscal 2009.
- Operating income was $8,044,000 for the third quarter of fiscal 2010, compared to operating income of $6,178,000 for the same period in the prior year.
- Net earnings were $3,191,000 or $0.11 per diluted common share for the third quarter of fiscal 2010, compared to net earnings of $1,663,000 or $0.06 per diluted common share for the third quarter of fiscal 2009.
- During the third quarter of fiscal 2010, the company changed its estimate of deferred gift-card revenue and recognized gift-card income of approximately $2,700,000 before tax, or $0.05 per diluted common share, related to prior periods.
First Three Quarters Fiscal 2010 Highlights
- Total revenues for the first three quarters of fiscal 2010 were $289,963,000, compared to revenues of $299,325,000 for the first three quarters of fiscal 2009.
- Operating income was $28,986,000 for the first three quarters of fiscal 2010, compared to operating income of $38,467,000 for the same period in the prior year.
- Net earnings were $13,086,000 or $0.44 per diluted common share for the first three quarters of fiscal 2010, compared to net earnings of $14,992,000 or $0.50 per diluted common share for the comparable prior period.
“We are pleased to be reporting another record quarter for Marcus Theatres, with double-digit increases in revenues and operating income. This strong performance helped to compensate for the continuing challenges in the lodging industry. Although the results for Marcus Hotels and Resorts were still below the level of last year’s third quarter, we saw occupancy stabilize this quarter, which may indicate conditions are beginning to improve, albeit very slowly,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation. He noted that excluding the prior-period gift-card income, earnings per common share matched those of last year’s third quarter.
Financial Position
“Our debt-to-total-capitalization ratio was 41% at the end of the third quarter and we currently have approximately $123 million available under our existing credit lines. Our strong financial position enables us to reinvest in our existing properties, as well as pursue potential growth opportunities that may arise,” added Marcus.
About The Marcus Corporation
Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The Marcus Corporation’s movie theatre division, Marcus Theatres®, currently owns or manages 668 screens at 54 locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio, and one family entertainment center in Wisconsin. The company’s lodging division, Marcus Hotels and Resorts, owns or manages 19 hotels, resorts and other properties in ten states. The company is celebrating its 75th anniversary in 2010. For more information, visit the company’s Web site at www.marcuscorp.com.
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