Last updated on July 2nd, 2019 at 09:45 am
The Marcus Corp. has reported that record revenues and improved operating income of its hotel business were not enough to compensate for lagging revenues from its theater business in the fiscal first quarter.
The Milwaukee-based company reported quarterly net earnings of $10.7 million, or 37 cents per share, down from $12.5 million, or 42 cents per share, in the same period a year ago.
The company’s quarterly revenues fell 4.8 percent to $117.9 million from $123.9 a year earlier.
“Last year’s first quarter included the busy Memorial Day weekend, which we did not have during this year’s first quarter. This timing affected both divisions, but had a much greater impact on Marcus Theatres,” said Gregory Marcus, president and chief executive officer of The Marcus Corp.
Marcus Hotels & Resorts continued to build momentum, with a 3.7-percent increase in revenue per available room (RevPAR) contributing to record revenues for the division in the first quarter of fiscal 2013.
“Last week, we announced an agreement to purchase the Cornhusker Hotel and Office Plaza in downtown Lincoln, Neb. This is the first transaction sourced by MCS Capital, our new hotel investment business. Marcus Hotels will be the majority owner of a joint venture with a fund affiliate of LEM Capital of Philadelphia. We are currently managing the property and upon completion of the transaction, we plan to begin a major renovation of the hotel and affiliate it with Marriott International,” Marcus said. “We believe we have the experience and comprehensive portfolio of services that hotel owners and developers are looking for. We have a number of potential growth opportunities in the pipeline and hope to announce more details in the near future.”