The Marcus Corporation Reports Increased First Quarter Revenues and Operating Income
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The Marcus Corporation Reports Increased First 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 2007-09-26
Recent acquisition and hit movies drive strong quarter for Marcus Theatres
The Marcus Corporation (NYSE: MCS) today reported increased revenues and operating income for the first quarter ended August 30, 2007.
First Quarter Fiscal 2008 Highlights
* Total revenues for the first quarter of fiscal 2008 were $112,141,000, a 20.1% increase from revenues of $93,407,000 for the first quarter of fiscal 2007.
* Operating income was $23,515,000 for the first quarter of fiscal 2008, an 11.0% increase from operating income of $21,182,000 for the same period in the prior year.
* Net earnings were $11,731,000 or $0.38 per diluted common share for the first quarter of fiscal 2008, compared to net earnings of $13,707,000 or $0.45 per diluted common share for the first quarter of the prior year.
"Overall, this was a good quarter for The Marcus Corporation. We achieved increases in both revenues and operating income, in spite of the fact that this year's first quarter did not include the strong Memorial Day holiday weekend, which was included in last year's first quarter," said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.
"While our operating income showed improvement, our net earnings declined only because the prior year results benefited from historic tax credits related to the renovation of the Skirvin Hilton in Oklahoma City. As expected, our first quarter fiscal 2008 effective tax rate is back closer to our traditional range," Marcus added.
Marcus Theatres(R)
Marcus Theatres reported a 24.6% increase in revenues and a 25.5% increase in operating income for the first quarter of fiscal 2008. "The division's excellent performance reflected a strong slate of movies and the addition of 122 screens at 11 locations that were acquired in mid-April from Cinema Entertainment Corporation. The CEC theatres are performing as expected and are an excellent addition to our circuit," said Marcus.
"Hit movies that helped to drive our improved first quarter performance included Harry Potter and the Order of the Phoenix, Transformers and Ratatouille. A stronger than expected August, buoyed by films including The Bourne Ultimatum, The Simpsons Movie and Superbad, helped to make up for the lack of the Memorial Day holiday weekend in this year's results," said Marcus.
"Fall movies with good performance potential include The Heartbreak Kid, Bee Movie, American Gangster, Fred Claus, Beowulf and Enchanted. An early look at the Christmas season includes several promising films such as The Golden Compass, I am Legend, National Treasure: Book of Secrets and Charlie Wilson's War," he added.
Marcus noted that this was the first full quarter for the company's new Marcus Majestic Theatre in Brookfield, Wis. "We are very pleased with our first summer at this location. Our two UltraScreens(R) with VIP seating are a hit with moviegoers and customers are also enjoying our pizza parlor and coffee and ice cream shop. As we learn from this innovative new concept, we are already making plans to expand our food and beverage offerings at additional locations during fiscal 2008. The AT&T Palladium, our cabaret-style auditorium with tableside food and beverage service, has been well received for movies as well as comedy and magic shows, and most recently, for big-screen showings of Green Bay football games, which will extend throughout the season," said Marcus.
"Broadcasting live events from football to opera is part of our strategy to expand our audience base by providing alternate programming when our theatres are not busy showing first-run movies. As part of this initiative, we recently signed an agreement with National CineMedia for the presentation of live and pre-recorded in-theatre events including sports, music and other events at 21 of our theatre locations," he added.
"We also are continuing to do further research for digital cinema and will conduct additional tests at selected theatres over the next six months, including the newest version of the highly anticipated digital 3D technology," Marcus added.
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