MARCUS CORP SEC 10-Q Report

Marcus Corp, a leading company in the entertainment and hospitality industry, has released its Form 10-Q report for the second quarter of fiscal 2025. The report highlights significant improvements in both financial and operational performance, driven primarily by the theatre division's robust growth. The company has also provided insights into its future outlook, indicating continued strategic initiatives to sustain growth.

Financial Highlights

Marcus Corp reported strong financial results for the second quarter of fiscal 2025:

• Total Revenues: $206.0 million, a 17.0% increase compared to the second quarter of fiscal 2024, primarily due to increased revenues from the theatre division.
• Operating Income: $13.0 million, an impressive 481.4% improvement compared to the second quarter of fiscal 2024, driven by increased revenues in the theatre division.
• Net Earnings: $7.3 million, a 136.2% improvement compared to a net loss in the second quarter of fiscal 2024, reflecting higher operating income and reduced other expenses.
• Net Earnings Per Share - Diluted: $0.23, a 135.9% increase compared to a loss per share in the second quarter of fiscal 2024, due to improved net earnings.

Business Highlights

Marcus Corp's business performance in the second quarter of fiscal 2025 was marked by notable achievements and strategic initiatives:

• Theatre Division Performance: The theatre division experienced a significant increase in revenues and operating income during the second quarter and first half of fiscal 2025 compared to the same periods in fiscal 2024. This improvement was driven by a stronger film slate and increased attendance, with notable performances from films such as 'A Minecraft Movie' and 'Lilo & Stitch'. The division also benefited from four additional operating days in the first half of fiscal 2025.
• Hotel and Resorts Division Performance: The hotels and resorts division saw a slight decrease in revenues during the second quarter of fiscal 2025 compared to the same period in fiscal 2024, primarily due to rooms being out of service for renovations at the Hilton Milwaukee. However, revenues increased in the first half of fiscal 2025, supported by additional operating days and increased food and beverage revenues.
• Revenue Segments: In the theatre division, admission revenues increased by 28.3% in the second quarter and 15.8% in the first half of fiscal 2025. Concession revenues also saw a rise of 29.7% in the second quarter and 20.9% in the first half. In the hotels and resorts division, food and beverage revenues grew by 10.5% in the second quarter and 10.4% in the first half of fiscal 2025.
• Geographical Performance: The theatre division's performance was impacted by strategic pricing decisions and an unfavorable film mix in the Midwestern markets, leading to underperformance compared to the national industry average. The hotels and resorts division underperformed its competitive sets due to the renovation at the Hilton Milwaukee, which affected group bookings.
• Sales Units: Total theatre attendance for comparable theatres increased by 26.7% in the second quarter and 17.8% in the first half of fiscal 2025, driven by a stronger film slate and increased number of films released.
• Future Outlook: The company anticipates that its effective income tax rate for fiscal 2025 may be in the 28% to 32% range. The theatre division expects to benefit from strategic pricing and value promotions, while the hotels and resorts division is focused on completing renovations and capitalizing on group bookings, with group room revenue bookings for fiscal 2026 running nearly 20% ahead of fiscal 2025.

SEC Filing: MARCUS CORP [ MCS ] - 10-Q - Aug. 01, 2025