Marcus (NYSE:MCS) edged more than 1% higher Thursday after reporting a sharp increase in second-quarter earnings, helped by fewer one-time costs and climbing demand for its hotels.
The Milwaukee-based company posted net earnings of $2.1 million, or 7 cents a share, compared with a loss of $323,000, or a penny a share, in the same quarter last year, and meeting average analyst estimates polled by Thomson Reuters.
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Revenue for the movie theatre and hotel operator was $86.7 million, up 4% from $83.37 million a year ago, beating the Street’s view of $84.94 million.
While the earnings were stronger this year, the company compared them to the fiscal 2010 second-quarter, where its quarterly loss included a one-time theater pension withdrawal liability of $1.4 million and a hotel impairment charge of $2.6 million.
Marcus CEO Gregory S. Marcus said the company was pleased with the quarterly performance, which he said helped the company offset reduced results of Marcus Theaters after adjusting for last year’s pension withdrawal liability.
Its movies segment saw its revenue fall, as the strong opening performance of Harry Pottery and the Deathly Hallows was unable to top last year’s outstanding first-week box office for The Twilight Saga: New Moon and The Blind Side.
Earnings were fueled by a 14.5% increase in revenue per available room (RevPAR), which increased in all eight of its company-owned properties due to increased occupancy.
“The positive momentum in the industry and for Marcus Hotels is encouraging,” the company’s CEO said. “However, we are not yet back to where we were prior to the recession, especially in our average daily rate.”