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The Marcus Corporation Reports Third Quarter Results

The Marcus Corporation (NYSE: MCS) today reported results for the third quarter ended February 28, 2013. The company’s results were impacted by a weaker overall film slate for Marcus Theatres® compared to the prior year and one-time lawsuit settlement costs for Marcus® Hotels & Resorts.

Third Quarter Fiscal 2013 Highlights

  • Total revenues for the third quarter of fiscal 2013 were $93,674,000, a 1.7% increase from revenues of $92,077,000 for the third quarter of fiscal 2012.
  • The company reported an operating loss of $(224,000) for the third quarter of fiscal 2013, compared to operating income of $4,075,000 for the third quarter of fiscal 2012.
  • The company reported a net loss attributable to The Marcus Corporation of $(1,372,000), or $(0.05) per diluted common share, for the third quarter of fiscal 2013, compared to net earnings attributable to The Marcus Corporation of $734,000, or $0.03 per diluted common share, for the third quarter of fiscal 2012.
  • Results for the third quarter of fiscal 2013 were unfavorably impacted by unusual items totaling approximately $2.0 million, or $0.04 per diluted common share, consisting of approximately $1.4 million of costs related to the settlement of lawsuits concerning the company’s Las Vegas property and a $618,000 impairment charge in the theatre division.
  • Results for the third quarter of fiscal 2013 include $6,008,000 of income from the extinguishment of debt related to debt refinancing at the Skirvin Hilton hotel. The income had no impact on net earnings attributable to The Marcus Corporation, however, due to the company’s determination that the entire amount was attributable to non-controlling interests.

First Three Quarters Fiscal 2013 Highlights

  • Total revenues for the first three quarters of fiscal 2013 were $312,246,000, a 2.0% increase from revenues of $306,053,000 for the same period in fiscal 2012.
  • Operating income was $29,948,000 for the first three quarters of fiscal 2013, an 11.1% decrease from operating income of $33,684,000 for the first three quarters of fiscal 2012.
  • Net earnings attributable to The Marcus Corporation were $14,031,000 for the first three quarters of fiscal 2013, a 12.5% decrease from net earnings attributable to The Marcus Corporation of $16,035,000 for the same period in fiscal 2012.
  • Earnings per diluted common share attributable to The Marcus Corporation were $0.50 for the first three quarters of fiscal 2013, a 9.1% decrease from earnings per diluted common share attributable to The Marcus Corporation of $0.55 for the first three quarters of fiscal 2012.
  • Results for the first three quarters of fiscal 2013 were unfavorably impacted by unusual items totaling approximately $4.0 million, or $0.09 per diluted common share, consisting of $3.0 million of costs related to the settlement of lawsuits concerning the company’s Las Vegas property and $1.0 million of impairment charges in the theatre division.

“The overall depth of the third-quarter film product was weaker than during last year’s third quarter, highlighting the fact that this business is heavily dependent on the films produced in Hollywood. The results of our comparable company-owned hotels continued to improve, despite the fact that the third quarter is typically our weakest quarter due to reduced travel during the winter season in our predominantly Midwestern locations. Our hotel division results were negatively impacted by the fact that all material lawsuits related to The Platinum Hotel & Spa in Las Vegas, Nev., were recently resolved, resulting in significant settlement expenses in the third quarter. We are pleased to have this issue behind us and may now move forward without the impact these litigation costs have had on our reported results during the past four years,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation.

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