The Marcus Corporation Reports $16.8 Million Net Loss in Q1 Fiscal 2025

The Marcus Corporation reported a net loss of $16.8 million for the first quarter of fiscal 2025, compared to a net loss of $11.9 million in the same period last year. This resulted in a diluted loss per share of $0.54, a 42.1% increase from the previous year's loss of $0.38 per share. Total revenues for the quarter reached $148.8 million, marking a 7.4% increase from $138.5 million in the prior year, driven by higher revenues from both the theatre and hotel divisions, as well as four additional operating days compared to the previous year.

The company's operating loss widened to $20.4 million from $16.7 million year-over-year, attributed to increased operating losses in both the theatre and hotel segments, alongside rising corporate expenses. Notably, corporate expenses rose by $2.3 million, primarily due to higher non-cash share-based compensation and increased costs related to personnel and benefits. The theatre division generated revenues of $87.4 million, up 7.5% from $81.3 million, while the hotel and resorts division reported revenues of $61.3 million, a 7.2% increase from $57.2 million.

In terms of operational metrics, the theatre division saw a 6.9% increase in attendance, largely due to the additional operating days and a stronger film slate. However, the average ticket price decreased by 5.1%, influenced by promotional pricing strategies. The hotel division experienced a 50.3% occupancy rate, down from 53.7% in the previous year, although the average daily room rate increased by 8.0% to $162.09. The company ended the quarter with 971 company-owned screens across 77 theatres, a reduction from 993 screens in 79 theatres a year earlier.

The Marcus Corporation's financial position remains stable, with a cash balance of approximately $11.9 million and $180.2 million available under its revolving credit facility. The company reported net cash used in operating activities of $35.3 million, an increase from $15.1 million in the prior year, primarily due to a decrease in net earnings and unfavorable timing of accounts receivable collections. Looking ahead, the company anticipates continued challenges in the theatre and hotel sectors, particularly with the potential for softening leisure travel demand and the impact of economic conditions on consumer spending.