Last updated on July 3rd, 2019 at 07:21 pm
Milwaukee-based Marcus Corp. on Thursday reported record revenues for the fiscal year and fourth quarter of 2018, citing strong performances in both its theater and hotel divisions.
Revenue for the year ending Dec. 27, 2018 totaled $707.1 million, which is an 8.2 percent increase from the previous year’s total revenue of $653.6 million.
For the fourth quarter of 2018, total revenue increased 5.7 percent over quarter four of 2017.
Operating income increased 7.6 percent year-over-year, jumping from $77.3 million for fiscal 2017 to a record $83.2 million for fiscal 2018.
However, quarter four of 2018 saw a 17.8 percent decrease in operating income compared to quarter four of 2017.
The company’s net earnings for fiscal 2018 were $53.4 million, down 17.9 percent from about $65 million in the previous year.
Marcus attributed the earnings decline in its fiscal 2018 results to nonrecurring expenses related to both the recent acquisition of St. Louis-based Movie Tavern chain and the renovation project currently underway at the former InterContinental hotel in downtown Milwaukee. The hotel will reopen in June as Saint Kate, an independent Arts Hotel.
The Movie Tavern acquisition, which was finalized in early February, added 208 screens at 22 locations in nine states, increasing its footprint by 23 percent.
“If not for these one-time expenses, we would have achieved both record revenues and operating income for the fourth quarter and our hotel division would have reported a sizeable increase in fourth-quarter operating income,” said Greg Marcus, the company’s president and CEO.
Marcus Theatres total revenue increased 6.2 percent in the fourth quarter and 10.8 percent for fiscal 2018 and operating income increased 2.8 percent for the fourth quarter and 10.4 percent for fiscal 2018, compared to the prior year periods.
Those results were driven by a strong performance in October as well as an increase in concession revenues per person, which the company said “reflects the continued success of the company’s distinctive food and beverage concepts.”
The company also cited its effort to upgrade multiple locations, installing UltraScreen DLX and SuperScreen DLX and DreamLounger recliners to seven theaters. The seating is now found in 75 percent of Marcus Theatres locations.
The top performing movies during 2018 were Black Panther, Avengers: Infinity War, Incredibles 2, Jurassic World: Fallen Kingdom and Deadpool 2.
For Marcus Hotels & Resorts, revenues increased 4.9 percent in the fourth quarter of fiscal 2018 and 4.1 percent for the full year, primarily driven by increased group business as well as higher food and beverage revenues and management fees.
“Operating income was down for the fiscal 2018 fourth quarter and full year due entirely to preopening expenses and accelerated depreciation expense related to the transformation of the InterContinental Milwaukee hotel into Saint Kate – The Arts Hotel,” Marcus said.
The division in fiscal 2018 added three new management contracts: the Murieta Inn and Spa in Rancho Murieta, Calif. and the Doubletree by Hilton Hotel El Paso Downtown and the Courtyard by Marriott El Paso Downtown/Convention Center, both in El Paso, Texas.
The additions increased the company’s footprint to 21 owned and/or managed properties.