Marcus 1Q profit slips on lower lodging revenue

Marcus 1st-quarter profit falls as curtailed consumer spending weighs on hotel revenue

• On 10:47 am EDT, Thursday September 17, 2009

MILWAUKEE (AP) -- Marcus Corp. said Thursday that its fiscal first-quarter profit dropped 18 percent as curtailed discretionary spending pulled down its hotel revenue.

The entertainment and lodging company earned $10.2 million, or 34 cents per share, compared with $12.4 million, or 42 cents per share, during the same quarter a year ago.

Revenue declined to $110.2 million for the period ended Aug. 27, down 9 percent from $120.4 million in the prior-year period.

Marcus' revenue results were hurt by a pullback in spending by consumers, primarily on bigger-ticket purchases related to lodging. Room revenue dropped to $22.9 million from $28.9 million, while food and beverage revenue dipped to $11.5 million from $13.6 million.

Revenue per available room, a key gauge used by hotel companies to gauge their performance, fell 21.1 percent but was an improvement from the fourth-quarter's 23 percent revpar decline.

The company's movie theater results were a bit better, with admissions sales climbing to $43.1 million from $42.5 million. But moviegoers did spend less on their concessions, with sales falling to $20.8 million from $21.2 million.

President and CEO Gregory Marcus said in a statement that its movie results were helped by strong results from films such as "Transformers 2: Revenge of the Fallen," "Harry Potter and the Half Blood Prince," "Up" and "The Hangover." Its performance also benefited from pricing for its digital 3D films and Ultrascreen movies.

Marcus' movie theater unit, Marcus Theatres, owns or manages 663 screens at 53 U.S. locations and one family entertainment center in Wisconsin. Its lodging division, Marcus Hotels and Resorts, owns or manages 20 hotels, resorts and other properties in 10 states.

Shares of Marcus added 7 cents to $13.95 in morning trading.

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