The Marcus Corporation reported its financial results for the 13 weeks ended September 26, 2024, showing a revenue increase of 11.4% to $232.7 million, up from $208.8 million in the same period of 2023. This growth was primarily driven by a rise in theatre admissions, which reached $69.0 million, compared to $63.7 million in the prior year. However, total revenues for the first three quarters of fiscal 2024 decreased by 3.7% to $547.2 million, down from $568.0 million in the same period of 2023.
Operating income for the third quarter surged by 56.6% to $32.8 million, compared to $20.9 million in the previous year. Net earnings for the quarter also saw a significant increase, rising 90.6% to $23.3 million, up from $12.2 million in 2023. This resulted in a net earnings per diluted share of $0.73, a substantial increase from $0.32 in the prior year.
Despite the positive quarterly performance, the company reported a net loss of $8.8 million for the first three quarters of fiscal 2024, a stark contrast to the net earnings of $16.2 million in the same period of 2023. The decline in overall profitability was attributed to increased debt conversion expenses related to the repurchase of Convertible Notes, which totaled $15.3 million for the first three quarters.
The company’s cash and cash equivalents decreased to $28.4 million as of September 26, 2024, down from $55.6 million at the end of December 2023. Total current assets also fell to $87.7 million from $101.7 million during the same period. Long-term debt increased slightly to $162.6 million from $159.5 million.
In terms of strategic developments, Marcus Corporation issued $100 million in senior notes in July 2024, which were used to refinance existing Convertible Notes and for general corporate purposes. The company also repurchased $99.9 million in Convertible Notes for $121.5 million in cash during the first three quarters of fiscal 2024.
The Hotels and Resorts division reported a revenue increase of 8.1% to $88.7 million in the third quarter, supported by a successful Republican National Convention held in Milwaukee. The division's operating income rose to $17.0 million, reflecting an 18.5% increase from the previous year.
Overall, while the third quarter showed strong performance, the first three quarters of fiscal 2024 reflected challenges, particularly in profitability and cash flow management.
About MARCUS CORP
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