With its operations virtually shut down during the second quarter due to the COVID-19 pandemic, Marcus Corp. today reported a net loss of $27 million for the quarter.
That's compared to net earnings of $18 million during the same period in 2019.
Total revenue for the quarter plummeted 97% to $7.93 million, with theater admissions representing just $154,000. Last year, second quarter theater admissions produced $83 million in revenue for the company.
Hotel room revenue totaled $857,000 for the quarter, which was down from $28.2 million in the second quarter of 2019.
Revenue that trickled in during the quarter, from March 27 to June 25, was driven by the launch of five drive-in cinemas, limited curbside and online concession sales, and the reopening of The Pfister Hotel, Grand Geneva Resort & Spa, the Hilton Madison and the Skirvin Hilton Hotel in June before the quarter's end.
Six of the company's theater locations reopened June 19, with limited capacity and business hours.
Marcus Corp. incurred about $3 million in nonrecurring property closure and reopening expenses, mostly in its hotels and resorts division. A large portion of that expense was represented by payroll continuation and severance payments made to laid off employees, said chief financial officer Doug Neis during the company's earnings call Tuesday.
The company in June
laid off 410 workers at six Wisconsin hotels, plus an additional 15 employees, according to WARN notices filed with the Wisconsin Department of Workforce Development.
New expenses this quarter were also related to additional health and safety measures aimed at preventing the spread of COVID-19. Marcus's hotels and theater divisions each have its own set of protocols that includes increased sanitation, contactless technology and additional employee training and new operating procedures.
The health and safety of Marcus' employees, customers and communities remains top priority amid uncertainty and rapid change, said president and chief executive officer Greg Marcus during Tuesday's earning call.
"Its guided everything we've done so far and will guide us in the weeks and months ahead," he said.
Marcus focused his remarks on the company's reopening playbook and future outlook, rather than on the quarter's numbers.
He said the plan is to reopen the remaining Marcus-owned hotels in the third quarter as demand grows. The Hilton Milwaukee hotel will reopen in time for the 2020 Democratic National Convention, which will be broadcast from Milwaukee the week of Aug. 17, but won't generate nearly the impact as originally expected.
The COVID-19 pandemic has upended group bookings for the remainder of 2020 as air travel and group business remains limited, but group pace for 2021 is only slightly behind this time last year, even as most of those bookings last year were related to Milwaukee hosting the DNC.
"We find this very encouraging because we believe this speaks directly to the continuing desire for people to travel and congregate," said Marcus.
He said the majority of Marcus' movie theaters will reopen by the end of August, in time for the delayed releases of new films, including Unhinged on August 21, New Mutants on August 28 and Tenet on September 3.
Marcus said he remains optimistic that the film industry will rebound and benefit from pent-up social demand as consumers get out out of the house and attempt to "return to normalcy."
