for the 3rd Qtr 2004; Improved Performance
from Baymont Inns & Suites
|MILWAUKEE - March 18, 2004--The Marcus Corporation
(NYSE: MCS) today reported increased revenues and earnings for the third
quarter ended February 26, 2004.
Total revenues for the third quarter of fiscal 2004 were $94,431,000, a 2.7% increase from revenues of $91,986,000 for the third quarter of the prior year. Net earnings were $2,284,000 or $0.08 per diluted share for the third quarter of fiscal 2004, a 31.6% increase from net earnings of $1,735,000 or $0.06 per diluted share for the comparable prior period.
For the first three quarters of fiscal 2004, total revenues were $309,874,000, a 3.2% increase from revenues of $300,350,000 for the same period in the prior year. Earnings from continuing operations and net earnings were $20,032,000 or $0.67 per diluted share for the first three quarters of fiscal 2004, a 20.3% increase from earnings from continuing operations of $16,658,000 or $0.57 per diluted share and a 12.1% increase from net earnings of $17,874,000 or $0.61 per diluted share for the first three quarters of fiscal 2003. Continuing operations include The Marcus Corporation's theatre, limited-service lodging and hotels and resorts divisions.
"Our increased third quarter earnings were primarily due to reduced interest expense and the continued improvement in operating income of Baymont Inns & Suites. We are also encouraged by the solid increase in revenue per available room (RevPAR) achieved by Marcus Hotels and Resorts and the continued strong performance of Marcus Theatres(R)," said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.
Marcus Theatres started the third quarter with a strong December and a record week between Christmas and New Year's. Revenues and operating income were flat for the period, however, due to underperforming film product in January and February. Top-grossing movies for the quarter were Lord of the Rings: The Return of the King, Cheaper by the Dozen and Something's Gotta Give.
"Our fiscal fourth quarter is off to a very strong start for Marcus Theatres. The box office for The Passion of the Christ, which opened on the last two days of our third quarter, is far surpassing all previous expectations and films including Starsky & Hutch, Hidalgo and Secret Window have opened strong. Potential hits for spring include Scooby-Doo 2: Monsters Unleashed, Kill Bill Volume 2, Home on the Range and the Alamo, with May openings including Van Helsing, Troy and Shrek 2," said Marcus.
A new six-screen theatre in Tomah, Wisconsin, which the company is managing for the Ho-Chunk Indian Nation, opened early in the quarter and the company's fourth 75-foot-wide UltraScreen(TM) opened shortly before the end of the quarter at the Marcus Elgin Fox Cinema in Elgin, Illinois. Marcus Theatres also announced plans to build a new theatre in Saukville, Wisconsin, a fast-growing area north of Milwaukee.
Baymont Inns & Suites reported a substantial improvement in operating income on flat revenues for the third quarter. The division's RevPAR for comparable properties was up 0.9% for the quarter as the division continued to gain market share.
Marcus said the increase in operating income resulted primarily from improved performance from the company's franchise operation and reduced administrative costs. The division's first property on the West Coast, a joint venture property in Ontario, California, that opened in the second quarter, continues to perform well.
"We are encouraged by the steady improvement we are seeing in the marketplace and the continued progress of Baymont Inns & Suites. RevPAR for comparable Baymont Inns & Suites properties was up nearly 3.5% in February, the strongest month of the quarter," said Marcus.
RevPAR for Marcus Hotels and Resorts increased 7.5% in the third quarter, reflecting improved performance at the majority of the division's properties. "This solid improvement in revenues did not translate to the bottom line due to favorable real estate tax adjustments in the third quarter of last year and expenses this year related to a new joint venture project in Las Vegas," said Marcus.
In January, the division announced plans for the joint venture Platinum Suite Hotel & Spa development in Las Vegas. Marcus Hotels and Resorts will participate in the development of the property and will manage the project when it is completed. The Platinum Suite Hotel & Spa will feature 255 condominium units, plus a luxury spa, swimming pools, meeting space, restaurants and lounges, in an atmosphere designed to set the property apart from the typical Las Vegas experience. Construction for the project, which is located one block east of the Las Vegas Strip near the Bellagio, Bally's and Caesars Palace casinos, is expected to begin later this year.
Marcus added that the division's new destination spa at the Miramonte Resort in Indian Wells, California, will open shortly.
"We are encouraged by the continued improvement in the economy and the
lodging industry forecasts for the months and year ahead. Our theatre division
has a strong start to the fourth quarter. The upcoming movie product through
the end of our fiscal year in May appears very solid, and the summer looks
particularly promising. We look forward to continued progress in the final
quarter of the year," said Marcus.
Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The company's limited-service lodging division operates or franchises 178 Baymont Inns & Suites in 32 states, seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas and one Budgetel Inn in Wisconsin. Marcus Theatres owns or manages 493 screens at 46 locations in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin. Marcus Hotels and Resorts owns or manages 11 hotels and resorts in Wisconsin, California, Minnesota, Missouri and Texas, and one vacation club in Wisconsin. For more information, visit the company's Web site at www.marcuscorp.com.
Certain matters discussed in this Press Release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.
The Marcus Corporation
Douglas A. Neis
|Also See:||Lodging Divisions at The Marcus Corporation Burden 4th Qtr Results / July 2002|
|Marcus Hotels & Resorts Names Keith Halfmann Director of Project Management and Food and Beverage / February 2004|
|Preferred Hotels & Resorts Board Chairman, Bill Otto, Discusses Past, Present and Future of the Organization / May 2003|