Post-pandemic recovery continues for Milwaukee-based
Marcus Corp., with third-quarter revenue from its hotel division surpassing 2019 levels.
The operator of hotels, movie theaters and restaurants reported net earnings of $3.3 million for the third quarter of fiscal 2022, compared to net earnings of $1.8 million for the same period in fiscal 2021. Total revenues were $183.7 million, which was up 25.9% from $145.9 million for the same period last year.
"Our overall performance was driven by strong results from Marcus Hotels & Resorts, which reported higher revenues and operating income during the quarter than during the pre-pandemic third quarter of fiscal 2019. This not only highlights the strength of the recovery in our hotels and resorts division but underscores the value of our diversified business model."
Marcus Hotels & Resorts recorded revenues of $82.3 million, which was up 25% from the third quarter of 2021 and 9% from 2019. The division's operating income for Q3 was $14.1 million, compared to $13.5 in 2021 and $10.6 million in 2019.
"Our results have been near or above pre-pandemic levels for a second consecutive quarter driven primarily by strong leisure demand and supported by increasing group bookings and business travel," said Michael Evans, president of Marcus Hotels & Resorts. "As we look forward, our award-winning properties are well positioned to continue delighting guests with the latest amenities and highest standards of service thanks to continuous investments in both our assets and our associates.”
While Marcus Corp. saw year-over-year improvement in its Q3 results, net earnings compared to the previous quarter were down 63% and revenues were down 7%.
This could be attributed for a slower recover in the company's theater division, which reported an operating loss of $723,000 for the quarter. But for the fifth straight quarter, Marcus Theatres reported positive adjusted EBITDA (earnings before interest, taxes, depreciation), driven by a 28% increase in attendance compared to the prior year period
"As expected, Marcus Theatres was impacted by a lighter film slate during the quarter; however, customers continued to show their desire to come out to the movies for several films that delivered great performances," said Greg Marcus. "We are excited about the quality of new films releasing in the coming months, with anticipation building for the debut of 'Avatar: The Way of Water,' the sequel to 'Avatar,' the highest grossing film of all time.”
The company on Thursday also announced a quarterly cash dividend of $0.05 per share of common stock.
