MILWAUKEE - The Marcus Corporation (NYSE:MCS) reported a smaller-than-expected loss for its first quarter of fiscal 2024, with earnings and revenue surpassing analyst estimates. Shares were up 1.9% in premarket trading.
The company, known for its hotel and theater operations, announced a first-quarter loss per share of -$0.38, which was $0.03 better than the analyst consensus of -$0.41. Revenue for the quarter stood at $138.5 million, exceeding the consensus estimate of $135.97 million.
The company saw an overall decrease in revenues by 9.0% compared to the first quarter of fiscal 2023, which saw revenues of $152.3 million. The operating loss widened to $16.7 million from $9.0 million in the previous year.
The company's CEO, Gregory S. Marcus, attributed the quarter's performance to the growth in group business at Marcus Hotels & Resorts, which saw a 3.8% increase in revenues before cost reimbursements compared to the same quarter last year. Revenue per available room (RevPAR) also increased by 2.1%, with the segment outperforming its competitive sets by 2.0 percentage points. However, Marcus Theatres faced challenges due to a weaker film slate resulting from the 2023 Hollywood labor strikes, impacting the quarter's results.
Looking ahead, Marcus Corporation's management remains optimistic. Michael R. Evans, president of Marcus Hotels & Resorts, expressed satisfaction with the improvements in midweek group travel and anticipates a busy spring and summer travel season. The company also completed the acquisition and rebranding of the Loews (NYSE:L) Minneapolis Hotel, now known as The Lofton Hotel, and is nearing completion of renovations at Grand Geneva Resort & Spa and The Pfister Hotel, which are expected to bolster future bookings.
Marcus Theatres anticipates an improving film slate with upcoming releases such as "Kingdom of the Planet of the Apes" and "Inside Out 2". The division reported total revenue of $81.3 million for the quarter, down from $96.4 million in the prior year, with an operating loss of $5.7 million and Adjusted EBITDA of $6.2 million.
The company's financial position remains strong, with $237.4 million in cash and revolving credit availability at the end of the quarter. The Marcus Corporation continues to focus on delivering exceptional experiences across its hotel and theater divisions, positioning itself for recovery as the industry adapts to post-pandemic consumer behavior and preferences.
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