Milwaukee-based The Marcus Corp. today beat expectations with its third quarter earnings, driven in part by higher theater admissions.
The hospitality and entertainment provider reported third quarter net income of $14.3 million, or 51 cents per diluted share, up 32.2 percent from $10.7 million, or 39 cents per diluted share, in the third quarter of 2015. The EPS was 9 cents higher than the analyst consensus.
And revenue was $144.7 million in the third quarter, up 8.1 percent from $133.9 million in the third quarter of 2015. Revenue was $5.7 million better than analyst forecasts.
The company’s Marcus Theatres division had a record quarter. Theater admissions increased significantly year-over-year, to $46.9 million, from $39.1 million in last year’s third quarter, which the company attributed both to high-grossing films and its recent theater renovations. Among the movies driving traffic were “The Secret Life of Pets,” “Suicide Squad,” “Finding Dory,” “Jason Bourne” and “Star Trek Beyond.”
Operating income was $24.7 million in the third quarter, up 24.6 percent from $19.8 million in the same period a year ago. Costs and expenses were $120 million, up from $114.1 million in the third quarter of 2015.
“This was another excellent quarter for The Marcus Corp.,” said Gregory Marcus, president and chief executive officer of The Marcus Corp. “Marcus Theatres had a record quarter and once again significantly outperformed the industry. Although reduced group business at some of our hotels slightly impacted the third-quarter performance of Marcus Hotels & Resorts, its year-to-date performance remains strong and the division has also outperformed the industry. Both divisions have made solid contributions to our outstanding results for the first three quarters of 2016.”
