Milwaukee-based Marcus Corp. reported record revenues and an increase in net earnings for the first quarter of fiscal 2017 driven by a strong performance in both its theater and hotel divisions.
Operating income was up 58.9 percent from the first quarter of the year to $18 million, up from $11.3 million during the same time period in 2016.
Total revenue for the quarter was $157.95 million, a 25.9 percent increase from the first quarter of fiscal 2016.
“Fiscal 2017 is off to an excellent start, with revenues that were higher than any quarter in our history,” said Greg Marcus, president and chief executive officer of The Marcus Corp.
“Marcus Theatres drove our strong first quarter performance, setting new all-time records for both revenues and operating income and continuing to outperform the industry. Marcus Hotels & Resorts achieved increased revenues and also outperformed the industry during its traditionally slower winter season.”
In the theater division, revenues increased 38.4 percent and operating income increased 38.7 percent in the first quarter.
On a comparable theater basis, the division outperformed the change in national box office revenues by 2.1 percentage points, compared to the same corresponding weeks in the prior year, according to Rentrak.
The five top-performing movies of the first quarter were Beauty and the Beast, The LEGO Batman Movie, Hidden Figures, Logan and Rogue One: A Star Wars Story.
Marcus anticipates the second quarter will also be strong with the opening of Fate of the Furious, Guardians of the Galaxy Vol. 2, Alien: Covenant, Baywatch, Pirates of the Caribbean: Dead Men Tell No Tales, Wonder Woman, The Mummy, Cars 3 and Transformers: The Last Knight.
Marcus’s first in-theater dining location will open in Greendale at Southridge Mall this summer.
Marcus Hotels & Resorts also had a strong quarter with revenue per available room for comparable company-owned properties increasing 4.4 percent in the first quarter, outperforming the industry and the competitive set in its markets.
“The first quarter results benefited from additional group and transient business in what is typically the division’s weakest quarter due to the impact of winter weather on our Midwestern locations,” Marcus said.
“While revenue and operating income at our eight company-majority-owned hotels was up over the first quarter of last year, total division operating income declined due in part to pre-opening expenses for our new SafeHouse Chicago,” said Joseph Khairallah, president and chief operating officer of Marcus Hotels & Resorts.
SafeHouse Chicago opened March 1.
