Marcus Corp (MCS) Reports 13.7% Increase in Q3 Revenues and 272.0% Increase in Net Earnings
Marcus Corp (NYSE:MCS) reports a 13.7% increase in Q3 revenues, reaching $208.8 million.
Net earnings for Q3 2023 rose by 272.0% to $12.2 million, compared to $3.3 million in Q3 2022.
Operating income for Q3 2023 was $20.9 million, a 133.9% increase from the prior year quarter.
Adjusted EBITDA for Q3 2023 was $42.3 million, a 51.9% increase from the prior year quarter.
On November 1, 2023, Marcus Corp (NYSE:MCS) released its third quarter fiscal 2023 results, reporting strong growth in revenue, operating income, net earnings, and Adjusted EBITDA. The company's total revenues for Q3 2023 were $208.8 million, a 13.7% increase from total revenues of $183.7 million for the third quarter of fiscal 2022. Net earnings for the third quarter of fiscal 2023 were $12.2 million, a 272.0% increase from net earnings of $3.3 million for the same period in fiscal 2022.
Performance Highlights
Marcus Theatres reported total revenues of $126.6 million for Q3 2023, a 25.0% increase compared to the same period last year. Operating income of $11.4 million in the third quarter of fiscal 2023 improved from an operating loss of $0.7 million in the third quarter of fiscal 2022. The division reported Adjusted EBITDA of $26.7 million in the third quarter of fiscal 2023, an increase of 114.3% compared to the third quarter of fiscal 2022.
For Marcus Hotels & Resorts, comparable hotels revenues before cost reimbursements increased 4.1% from the third quarter of fiscal 2022. Revenue per available room, or RevPAR, increased at six of seven comparable company-owned hotels during the third quarter of fiscal 2023 compared to the third quarter of fiscal 2022.
Financial Position
At the end of the third quarter of fiscal 2023, the company had $256.7 million in cash and revolving credit availability. On October 16, 2023, The Marcus Corporation entered into a credit agreement amendment to provide for a new $225 million five-year revolving credit facility that matures in October 2028. This replaces the previous credit facility that was set to mature in January 2025.
Future Outlook
With a strong performance in Q3 2023, Marcus Corp (NYSE:MCS) continues to focus on driving operational and financial excellence in all facets of its business. The company's theatre division is already off to a strong start in Q4 2023 with successful films and the lodging division continues to capitalize on its newly renovated meeting spaces with event bookings.
Explore the complete 8-K earnings release (here) from Marcus Corp for further details.
This article first appeared on GuruFocus.
