The Marcus Corp. today reported fiscal fourth quarter net earnings of $3.5 million, or 13 cents per share, down from $6.7 million, or 23 cents per share, in the same period a year ago.
The Milwaukee-based company’s quarterly revenues for the 13-week fourth quarter of fiscal 2013 were $100.6 million, a 6.7 percent decrease from revenues of $107.8 million for the 14-week fourth quarter of fiscal 2012.
Last year’s results benefited from an additional 53rd week of operations (the 14-week quarter) that contributed approximately $7.6 million in revenues, $2.1 million in operating income and $1.1 million, or 4 cents per share, in net earnings to the fourth quarter and fiscal 2012 results.
Last year’s results also benefited from an approximately $700,000 one-time pre-tax gain on sale of securities held for investment purposes, or approximately $0.02 per diluted common share.
“A weaker film slate for Marcus Theatres and the fact that fiscal 2013 was a 52-week year compared to last year’s 53 weeks contributed to our reduced results for the fourth quarter and fiscal 2013. Not surprisingly in the cyclical theatre industry, our business has improved significantly in recent weeks, thanks to a very strong early summer film line-up. Comparative results for Marcus Hotels & Resorts were also negatively impacted by the extra week last year, as well as difficult comparisons at several of our group-oriented hotels. However, just like our theatres, these same group-focused hotels are also off to a good start in the new summer quarter,” said Gregory Marcus, president and chief executive officer of The Marcus Corporation.
“Our fiscal 2013 results were also impacted by unusual items totaling $4.8 million, or approximately $0.10 per diluted common share. This includes approximately $3.3 million of costs related to the settlement of lawsuits concerning our Las Vegas property and $1.5 million of impairment charges, primarily in the theatre division. Without the impact of the additional week of operations last year and the unusual items in both years, our earnings per share for fiscal 2013 were essentially even with last year, despite the weaker film slate.”
Kirk Rose, president of Marcus Hotels & Resorts, said exclusive club lounges at The Pfister Hotel in Milwaukee and the Grand Geneva Resort & Spa in Lake Geneva opened during the fourth quarter and have been well-received by guests. “The summer season has started strong and we expect our Milwaukee hotels to benefit from the citys many festivals and events, including the Harley-Davidson 110th anniversary celebration on Labor Day weekend. We are continuing our focus on growing the division, including pursuing potential opportunities for additional management contracts, some of which may include small equity investments,” Rose said.
