Weak summer film sales result in Marcus Corp’s earnings down 23.6%

Freeman Staff

Oct. 27, 2017

MILWAUKEE — The underperforming summer lineup of movies had negative effects far beyond Hollywood. On Thursday, The Marcus Corporation reported that its net earnings declined 23.6 percent during the third quarter for a total of $10,978,000 when compared to the third quarter of 2016 when net earnings were $14,372,000.

The Milwaukee-based company also reported that total revenues for the third quarter of fiscal 2017 were a record $153,818,000, a 6.3 percent increase from revenues of $144,695,000 for the third quarter of fiscal 2016. Operating income for the third quarter of fiscal 2017 was $21,435,000, a 13.2 percent decrease from operating income of $24,683,000 for the third quarter of fiscal 2016.

“As has been well reported, the weaker than anticipated film slate hampered the traditionally strong summer movie season. While July and August were down for Marcus Theatres, the division ended the quarter with a very good September and we are heading into what we expect will be a strong fourth quarter for our theatres. Marcus Hotels & Resorts once again outperformed the competitive set in its markets, despite lower group revenues during the third quarter,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation, in a statement.

Marcus Theatres reported a 9.6 percent increase in revenues for the third quarter of fiscal 2017, compared to the same period last year. The five top-performing films for Marcus Theatres in the third quarter of fiscal 2017 were “It,” “Spider-Man: Homecoming,” “Despicable Me 3,” “Dunkirk” and “War for the Planet of the Apes.”

“We believe the investments we are making in our existing theatres, the work being done every day by our focused and collaborative team, and an anticipated slate of strong holiday season films position us well to end the year on a high note,” said Rolando B. Rodriguez, chairman, president and chief executive officer of Marcus Theatres, in a statement.