The Marcus Corporation Reports Increased Second Quarter Revenues and Operating Income
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The Marcus Corporation Reports Increased Second Quarter Revenues and Operating Income
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2007-12-21
The Marcus Corporation (NYSE: MCS) today reported increased revenues and operating income for the second quarter ended November 29, 2007.
Second Quarter Fiscal 2008 Highlights
* Total revenues for the second quarter of fiscal 2008 were $83,431,000, an 18.2% increase from revenues of $70,605,000 for the second quarter of fiscal 2007.
* Operating income was $8,638,000 for the second quarter of fiscal 2008, a 2.0% increase from operating income of $8,467,000 for the same period in the prior year.
* Net earnings were $2,940,000 or $0.10 per diluted common share for the second quarter of fiscal 2008, compared to net earnings of $10,091,000 or $0.33 per diluted common share for the second quarter of the prior year.
* Last year's net earnings included pre-tax gains on the disposition of property, equipment and other assets of $8,582,000, related to the sale of surplus movie theatre and restaurant properties and development gains on the sale of units at the company's condominium hotel project in Las Vegas. Prior year results also benefited from historic tax credits related to the renovation of the Skirvin Hilton in Oklahoma City.
First Half Fiscal 2008 Highlights
* Total revenues for the first half of fiscal 2008 were $195,572,000, a 19.2% increase from revenues of $164,012,000 for the first half of fiscal 2007. Operating income was $32,153,000 for the first two quarters of fiscal 2008, an 8.4% increase from operating income of $29,649,000 for the same period in the prior year.
* Net earnings were $14,671,000 or $0.48 per diluted common share for the first half of fiscal 2008, compared to earnings of $23,798,000 or $0.77 per diluted common share for the same period in fiscal 2007.
"We are pleased that we achieved increases in revenues and operating income in the second quarter. However, we were disappointed that a strong slate of summer movies was followed by a relatively weak slate of films during the second quarter, negatively impacting the results of Marcus Theatres. Second quarter operating results for Marcus Hotels and Resorts showed solid improvement and would have been even better if not for a significant real estate tax adjustment received during the quarter at one of our owned hotels. Our second quarter net earnings were down from the prior year because of the historic tax credits and significant development and real estate gains that we did not have in this year's second quarter," said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.
Marcus Theatres(R)
"Revenues for Marcus Theatres increased 18.7% in the second quarter, due entirely to the addition of 122 screens at 11 locations acquired in April from Cinema Entertainment Corporation. Revenues for the first half of the fiscal year were up 22.4%. While operating income was down in the second quarter due to the disappointing slate of movies, operating income was up 15.7% for the first half of fiscal 2008 as a result of the division's strong first quarter performance," said Marcus.
Hit movies for Marcus Theatres in the second quarter were Bee Movie, American Gangster and The Game Plan. "Two holiday pictures that have already opened and performed well are Enchanted and I Am Legend. Other movies with good box-office potential opening in the next few weeks include National Treasure: Book of Secrets, Charlie Wilson's War and The Bucket List, along with two critically acclaimed pictures, Juno and Atonement," said Marcus.
"We introduced the latest Dolby(R) 3D digital cinema technology at two of our theatres during the second quarter. Special showings of Tim Burton's The Nightmare Before Christmas, which was reformatted for digital 3D, and Beowulf were well-received by our audiences. In February, we will show the Hannah Montana/Miley Cyrus: Best of Both Worlds Concert in Disney Digital 3D(TM) for one week at theatre locations in New Berlin and Madison, Wisconsin. With the overwhelming popularity of Hannah Montana all across the country, we expect that many fans who can't get a ticket to the live concert will want to see it on the big screen in digital 3D," Marcus said.
"In addition to bringing the latest technology to our theatres, we are also expanding our audience base by providing alternate programming in select theatres. The response to Green Bay football games shown live in the AT&T Palladium at our new Majestic Cinema in Brookfield, Wisconsin, has been outstanding. As part of our agreement with National CineMedia, 21 of our theatres showed 'Garth Brooks Live in Concert' in November and are showing the entire 'Metropolitan Opera: Live in HD' series," said Marcus.
Marcus said the company continues to expand its successful UltraScreen(R) concept, with the opening of its eleventh UltraScreen on December 21. The new 70-foot-wide screen is part of a 400-seat auditorium addition to the division's existing 16-screen Pickerington Cinema in the Columbus, Ohio area.
"Today, we are announcing an agreement to purchase a portion of Silk Film Buying Company of Minneapolis. Under the agreement, Marcus Theatres will perform film buying, booking and other related services for 15 theatre locations owned by five exhibitors representing 152 screens in Minnesota. Including the screens that were previously booked by Silk, Marcus Theatres will provide film buying services for 747 motion picture screens in six states. This acquisition is part of our strategy to expand our revenue sources and leverage our strong operations infrastructure. The transaction is expected to close on January 14, 2008," said Marcus.
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