“Our excellent fourth quarter results provided a strong ending to a very solid year for The Marcus Corporation. Fiscal 2014 revenues set new records for both divisions and for the company as a whole. Marcus Theatres significantly outperformed the industry for the second consecutive quarter and Marcus Hotels & Resorts continued its steady improvement,” said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation.
“Revenues for Marcus Theatres were up 10.7% for the fourth quarter and 10.8% for the full year, while operating income increased 4.1% for the fourth quarter and 13.6% for fiscal 2014. The fourth quarter revenues and operating income set new records for any 13-week fourth quarter in the division’s history,” said Marcus. “Despite the fact that the national box office was down slightly during our fourth quarter period due to a weaker slate of movies in May, we achieved an 8.2% increase in admissions. We attribute this strong performance to the major investments we are making in our theatres, along with successful marketing and operational strategies.”
“Marcus Hotels & Resorts achieved record revenues for both the quarter and the full year, with fourth quarter revenues up 4.2% and revenues for fiscal 2014 up 5.9%. Increases in food and beverage revenues of 7.0% in the fourth quarter and 6.1% for the full year contributed to the revenue increases. Revenue per available room (RevPAR) for comparable company-owned hotels increased 3.3% in both the fourth quarter and full year, driven by increases in both occupancy and average daily rate. This was the fourth consecutive year of increases in the average daily rate,” said Marcus. He noted that results for the prior year were negatively impacted by $3.3 million of costs related to the settlement of lawsuits concerning the company’s Las Vegas property.
“During the fourth quarter, we assumed management of the Heidel House Resort & Spa in Green Lake, Wis., a 190-room full-service resort and spa nestled on the shore of Green Lake. The property is located just six miles from Ripon, Wis. where our company was founded in 1935. The new management contract is an excellent opportunity to bring our high level of service, food and beverage expertise and spa operations experience to this distinctive, award-winning property,” said Thomas F. Kissinger, interim president of Marcus Hotels & Resorts and senior executive vice president of The Marcus Corporation.
“We continue to move forward with major renovation projects at several key properties. The renovation of the guest rooms in the modern tower addition of The Pfister(R) Hotel in Milwaukee has now been completed. The remodeling of the meeting rooms at The Cornhusker, A Marriott Hotel, in Lincoln, Neb. will be completed by the end of summer, the final phase of a complete multi-million-dollar renovation of the property. An extensive remodeling of the Westin(R) Atlanta Perimeter North in Atlanta, Ga. has also been completed, except for the redesign and launch of a new Southern-inspired, farm-to-table brasserie restaurant. In addition, the conversion of our Four Points by Sheraton Chicago Downtown/Magnificent Mile to one of the first AC Hotels by Marriott in the U.S. is scheduled to begin in late fall, with completion targeted for spring 2015,” said Kissinger.
“The busy summer travel season is off to a good start. As we look ahead, our focus will be on pursuing additional management contracts and potential hotel investment opportunities to further expand the portfolio,” added Kissinger.
“We repurchased a total of 314,000 shares of our common stock in fiscal 2014 and increased the quarterly cash dividend by 11.8% in the fourth quarter. Our total return to shareholders was 28% in fiscal 2014 and our three-year average total return to shareholders is now 27%. Our strong balance sheet gives us the ability to return capital to shareholders through our dividend policy and share repurchases, while at the same time continuing to invest in our two businesses and pursue potential growth opportunities,” said Douglas A. Neis, chief financial officer and treasurer of The Marcus Corporation.