The Marcus Corportion (MCS), engaged in lodging and entertainment business, has announced a 7.44 percent drop in profit for the quarter ended Aug. 28, 2014. The company earned $12.43 million or $0.45 a share in the first-quarter compared with $13.43 million or $0.50 a share a year ago. Analysts on average had predicted net income of $0.51 a share.
Revenue during the first-quarter went up marginally 2.12 percent to $131.77 million from $129.03 million in the last year period.
Gross margin contracted by 20 basis points over the last year period to 55.73 percent. Operating income during the quarter dropped to $22.69 million, compared with $24.35 million in the previous year period. That has resulted in contraction of 165 basis points in operating margins to 17.22 percent.
''We are pleased to report record first quarter revenues for The Marcus Corporation and for Marcus Hotels & Resorts. Marcus Theatres' admissions revenues continued to outperform the industry, in spite of a weaker summer movie slate,'' said Gregory S. Marcus, president and chief executive officer of The Marcus Corporation.
Cash Position
As on Aug. 28, 2014, the company's cash balance stood at $14.24 million, up 16.61 percent or $2.03 million from Aug. 29, 2013.
Working Capital
Marcus Corp's working capital remained negative at $55.58 million on Aug. 28, 2014, compared with negative $73.05 million on Aug. 29, 2013. It registered an increase in current ratio to 0.40 as at Aug. 28, 2014 from 0.36 on Aug. 29, 2013.
Days' sales outstanding moved up to 9 days for first quarter compared with 7 days for the last year period. This indicates the company has extended credit period to clients for making payment.
The company's days' payable outstanding went up to 42 days for first quarter compared with 36 days for the last year period. This reflects that the company has made late payment to vendors compared to prior year period.
Debt Position
Marcus Corp has witnessed a decline in the total debt over the last one year. As on Aug. 28, 2014, total debt stood at $266.55 million, down 0.02 percent or $0.05 million, from Aug. 29, 2013. The company's total debt was 34.73 percent of total assets as on Aug. 28, 2014, compared with 35.58 percent on Aug. 29, 2013. It has witnessed a decline in debt to equity ratio to 0.78 on Aug. 28, 2014 compared with 0.82 on Aug. 29, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 9.44 from 10.17 in the same period last year.
Shares of the company declined $0.03 or 0.17 percent to settle at $17.66 on Wednesday.
