The Marcus Corporation (NYSE:MCS) reported increased revenues and earnings from continuing operations for the third quarter ended February 23, 2006.
Third Quarter Fiscal 2006 Highlights
-- Total revenues for the third quarter of fiscal 2006 were $69,586,000, an 11.4% increase from revenues of $62,472,000 for the third quarter of the prior year.
-- Earnings from continuing operations increased 77.0% to $3,162,000 or $0.10 per diluted share for the third quarter of fiscal 2006, from earnings from continuing operations of $1,786,000 or $0.06 per diluted share for the comparable prior period.
-- Net earnings were $4,723,000 or $0.15 per diluted share for the third quarter of fiscal 2006, compared to net earnings of $6,595,000 or $0.21 per diluted share for the same period in fiscal 2005.
-- Last year's net earnings include gains from the sale of the company's former limited-service lodging division and Miramonte Resort, which have been classified as discontinued operations in accordance with current accounting pronouncements.
First Three Quarters of Fiscal 2006 Highlights
-- Total revenues were $226,165,000 for the first three quarters of fiscal 2006, a 6.7% increase from revenues of $211,946,000 for the same period in the prior year.
-- Earnings from continuing operations were $20,000,000 or $0.65 per diluted share for the first three quarters of fiscal 2006, a 15.0% increase from earnings from continuing operations of $17,389,000 or $0.57 per diluted share for the first three quarters of fiscal 2005.
-- Net earnings were $25,256,000 or $0.82 per diluted share for the first three quarters of fiscal 2006, compared to net earnings of $96,328,000 or $3.16 per diluted share for the comparable prior period.
"We continued to make good progress in the third quarter, reporting our third straight quarter with increased earnings from continuing operations. Marcus Theatres(R) achieved increases in both revenues and operating income for the quarter due to a solid holiday season. Marcus Hotels and Resorts reported a 24.2% increase in revenues, driven by improved performance at our five existing company-owned properties and results from our two new properties," said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.
Marcus Theatres(R)
"The improvement in Marcus Theatres' results reflected the strong audience appeal of holiday-season movies including Harry Potter and the Goblet of Fire, Chronicles of Narnia: The Lion, The Witch and The Wardrobe and King Kong. Each of these films grossed over $200 million at the box office nationally - the first time in history that three films performed at that level during the holiday period. And this was in spite of the fact that Christmas Eve and Christmas Day, as well as News Year's Eve and News Year's Day, fell on a Saturday and Sunday this year," said Marcus.
"We are encouraged by the improving trends in film product and the extended outlook also appears promising. Projected hit motion pictures for early spring include Ice Age 2: The Meltdown and Scary Movie 4. May, the last month of our fiscal year, has the potential for four blockbusters, with Mission: Impossible III, Poseidon, Over the Hedge and The Da Vinci Code all opening that month, compared with just one blockbuster movie - Star Wars: Episode III - Revenge of the Sith, opening during this period last year.
Looking ahead to the summer, potential hits include three computer-generated animated features with Pixar's newest film Cars, along with Monster House and Ant Bully. Comedies include Disney's Pirates of the Caribbean: Dead Man's Chest, Adam Sandler in Click and Jennifer Aniston and Vince Vaughn in The Break-Up. Familiar titles like Superman Returns and Miami Vice also have good box-office potential. Two films that may prove to be controversial are M. Night Shyamalan's Lady in the Water and Oliver Stone's World Trade Center," said Marcus.
Marcus said the division continues to move forward with its expansion plans. "Construction will begin in a matter of weeks on two new theatres - a 13-screen theatre in Sturtevant, Wis., that will include an UltraScreen(TM), and a new 12-screen theatre in Green Bay, Wis. We are also finalizing the plans for our new flagship theatre in Brookfield, Wis., with construction scheduled to begin by summer," said Marcus.
Marcus Hotels and Resorts
Marcus said revenue per available room (RevPAR) for comparable Marcus Hotels and Resorts properties increased 15.6% in the third quarter and 8.8% for the nine months. "RevPAR was up for all five of our existing properties, which is a noteworthy achievement given that the winter season is typically a challenging time for hotels in the Midwest," said Marcus.
Marcus noted that the division's operating loss was flat during the third quarter compared to the same quarter last year as a result of start-up losses and expenses for new properties. These include the June 2005 purchase of the Wyndham Milwaukee Center hotel and the opening of the Four Points by Sheraton Chicago Downtown/Magnificent Mile, as well as two new properties under development.
"Last week, we announced plans to purchase The Westin Columbus hotel in downtown Columbus, Ohio. This is a beautiful, 186-room historic hotel that leverages our experience in restoring and operating landmark hotels and further expands our presence in the Midwest. This property will be an exciting addition to our portfolio of full-service hotels and resorts," said Marcus.
"Construction continues on the Platinum Hotel & Spa, our hotel condominium project in Las Vegas that is scheduled to open in late June 2006. If the project stays on its current course, we anticipate that we will report a significant development profit on the Platinum project in the first quarter of fiscal 2007," said Marcus. He noted that construction is also underway on the restoration of the Skirvin Hotel in Oklahoma City, which is expected to open in 2007 as the Hilton Skirvin.
"The near-term outlook for our existing hotels is very encouraging. We believe the investments we are making today, both in capital and in start-up expenses, in our two newest hotels, the two hotels under development and the purchase of The Westin Columbus, will contribute to increased revenues and operating income for this division over the long term," said Marcus.
Special Cash Dividend
The Marcus Corporation paid a special cash dividend of $7.00 per share on February 24, 2006, returning to shareholders approximately $214 million in proceeds resulting from the sale of the limited-service lodging division. "This significant event confirmed the underlying value of our real estate and our philosophy of managing for the long term and we were pleased to be able to return a portion of this value to our loyal long-term shareholders," said Marcus.
"We remain committed to growing both Marcus Theatres and Marcus Hotels and Resorts, as evidenced by our investments in the new theatre and hotel projects. We believe we are well positioned to pursue opportunities to grow both of our divisions," he added.
|
Post Release
Get Content
Email News Brief
Saved Articles
Advertising
Handheld
XML/RSS
Post News