The Marcus Corporation Reports First Quarter Fiscal 2024 Results

Marcus Theatres
Milwaukee, Wisconsin ( May 2, 2024 ) -

The Marcus Corporation (NYSE: MCS) today reported results for the first quarter fiscal 2024 ended March 28, 2024.

“Marcus Hotels & Resorts led our results for the quarter as our group business continued to grow significantly. As we head into the summer travel and convention season in our markets, we are well positioned to capture both leisure and group business across our portfolio, particularly at our newly renovated properties,” said Gregory S. Marcus, chief executive officer of The Marcus Corporation. “As anticipated, the shutdown in movie production due to the 2023 Hollywood labor strikes resulted in a weaker film slate that negatively impacted Marcus Theatres’ first quarter fiscal 2024 results. While we expect the impact from the strikes to continue in the second quarter, there are a number of exciting films on the horizon this summer with an improving film slate expected this fall.”

First Quarter Fiscal 2024 Highlights

  • Total revenues for the first quarter of fiscal 2024 were $138.5 million, a 9.0% decrease from total revenues of $152.3 million for the first quarter of fiscal 2023.
  • Operating loss was $16.7 million for the first quarter of fiscal 2024, compared to operating loss of $9.0 million for the prior year quarter.
  • Net loss was $11.9 million for the first quarter of fiscal 2024, compared to net loss of $9.5 million for the same period in fiscal 2023.
  • Net loss per diluted common share was $0.38 for the first quarter of fiscal 2024, compared to net loss per diluted common share of $0.31 for the first quarter of fiscal 2023.
  • Adjusted EBITDA was $2.3 million for the first quarter of fiscal 2024, compared to Adjusted EBITDA of $9.5 million for the prior year quarter.

    • Marcus Hotels & Resorts
    Revenues before cost reimbursements increased 3.8% during the first quarter of fiscal 2024 compared to the first quarter of fiscal 2023. Revenue per available room, or RevPAR, increased 2.1% during the first quarter of fiscal 2024 compared to the prior year first quarter, resulting in Marcus Hotels & Resorts outperforming its competitive sets by 2.0 percentage points during the first quarter of fiscal 2024.

    “While the first quarter is seasonally our slowest, I am pleased with the meaningful improvements in midweek group travel during the quarter,” said Michael R. Evans, president of Marcus Hotels & Resorts. “As the warmer weather sets in, we are looking forward to a busy spring and summer travel season for both leisure and group travel, including the Republican National Convention in Milwaukee this July. We are excited to show off our renovations at the Grand Geneva Resort & Spa and The Pfister Hotel, with our impressive properties and outstanding guest experiences positioning us well for the years ahead.”

    Group business continued to increase during the first quarter of fiscal 2024, with an increase in mid-week groups driving occupancy growth 2.9 percentage points during the first quarter of fiscal 2024. Group booking pace for the remainder of fiscal 2024 is running ahead of comparable pace during the same period in fiscal 2023, even when excluding bookings related to the upcoming Republican National Convention. Group booking pace for fiscal 2025 is also running significantly ahead of comparable pace at this time last year.

    During the first quarter of fiscal 2024, Marcus Hotels & Resorts, along with Hempel Real Estate and Robinson Park, completed the acquisition of the Loews Minneapolis Hotel. The division assumed management of the property, which was rebranded as The Lofton Hotel under the Tapestry Collection by Hilton flag. The Lofton Hotel is the first Tapestry Collection hotel in Minnesota.

    Grand Geneva Resort & Spa in Lake Geneva, Wisconsin is nearing completion of its meeting and event space renovation, which has resulted in increases in bookings for groups, weddings, and other social events. This most recent phase of the multi-year reinvestment in the resort follows major renovations to its reception and lobby bar areas in 2021 and its guest rooms in 2022 and 2023.

    In addition, extensive renovations continue at The Pfister Hotel in Milwaukee. With the revitalization of its ballrooms and meeting and event spaces completed in late 2023, the hotel continues to benefit from increased bookings for weddings and other events. The hotel is currently completing a guest room renovation in its historic tower, soon to be followed by a refresh of the historic lobby, first floor public spaces, and the popular Pfister Café in 2024.

    Marcus Theatres
    As anticipated, the production delays caused by the WGA and SAG-AFTRA labor strikes in 2023 resulted in fewer blockbuster films opening during the first quarter of fiscal 2024 compared to the first quarter of fiscal 2023. In addition, the carryover runs of films from the holidays into the first quarter of fiscal 2024 was softer than the prior year first quarter when “Avatar: The Way of Water” was continuing its impressive run.

    As a result, Marcus Theatres reported total revenue of $81.3 million in the first quarter of fiscal 2024, compared to $96.4 million in the first quarter of fiscal 2023. The division recorded an operating loss of $5.7 million in the first quarter of fiscal 2024 and Adjusted EBITDA of $6.2 million. Average ticket price increased 4.9% and average concession revenues per person grew 0.8%, largely due to ticket price optimization and the impact of the Value Tuesday promotion changes that were effective near the end of the first quarter of fiscal 2023.

    “Despite the overall weaker film slate in the quarter, the success of several films reinforced that consumers remain hungry for a steady flow of new, diverse, theatrical entertainment,” said Mark A. Gramz, president of Marcus Theatres. “”Dune: Part Two,” “Kung Fu Panda 4,” “Wonka,” “Bob Marley: One Love”, and “Migration” performed well during the first quarter of fiscal 2024, and “Godzilla x Kong: The New Empire” started our fiscal second quarter with a roar. As we look forward to the coming release of highly anticipated films such as “Kingdom of the Planet of the Apes,” “Inside Out 2,” “Deadpool & Wolverine,” and “Despicable Me 4”, Marcus Theatres’ incredible sound, premium large format screens and recliner seating, enticing food and beverage offerings, and consumer friendly technology will continue to deliver an unforgettable entertainment experience.”

    While schedule changes may occur, new films expected to be released during the remainder of fiscal 2024 that have the potential to perform well include “The Fall Guy,” “Kingdom of the Planet of the Apes,” “IF,” “Furiosa,” “Inside Out 2,” “A Quiet Place: Day One,” “Horizon: An American Saga,” “Despicable Me 4,” “Twisters,” “Deadpool & Wolverine,” “Beetlejuice 2,” “Joker: Folie A Deux,” “Smile 2,” “Venom 3,” “Moana 2,” “Wicked Part One,” “Mufasa: The Lion King”, and “Sonic the Hedgehog 3”, among others.

    Balance Sheet and Liquidity
    The Marcus Corporation’s financial position remains strong with $237.4 million in cash and revolving credit availability at the end of the first quarter of fiscal 2024.

    About The Marcus Corporation
    Headquartered in Milwaukee, The Marcus Corporation is a leader in the lodging and entertainment industries, with significant company-owned real estate assets. The Marcus Corporation’s theatre division, Marcus Theatres, is the fourth largest theatre circuit in the U.S. and currently owns or operates 993 screens at 79 locations in 17 states under the Marcus Theatres, Movie Tavern by Marcus and BistroPlex brands. The company’s lodging division, Marcus Hotels & Resorts, owns and/or manages 16 hotels, resorts and other properties in eight states. For more information, please visit the company’s website at www.marcuscorp.com.