Marcus posts loss
Milwaukee-based Marcus Corp. lost more than $27 million in the second fiscal quarter of 2020.
Marcus Corp. lost more than $27 million in the second fiscal quarter of 2020 as the Milwaukee-based company navigates how to reopen and operate theaters and hotels during the coronavirus pandemic.
Total revenue was $7.9 million, about a 95% drop from the $232.5 million earned during the second quarter of 2019, the company reported.
The company reported an operating loss of $53 million and a net loss of $27 million Tuesday in its results from the second quarter ending June 25.
In the first half of 2020, Marcus reported a net loss of more than $46 million. The tourism and leisure industry are among some of the hardest hit during the pandemic. Marcus posted a loss of $19.3 million during the first quarter when the company had to close hotels and theaters.
“The impact of the COVID-19 pandemic on our business, the industries in which we compete, and the global economy is truly unprecedented,” Gregory S. Marcus, president and chief executive officer, said in a news release. The company took $11 million from a federal program designed to help small businesses earlier in the pandemic.
All of the company's theaters and hotels were closed for most of the second quarter. The company's phased reopening of its theaters began June 19. Marcus manages 18 hotels and other properties in eight states and operates 1,110 screens at 91 locations in 17 states.
Marcus reopened four of its company-owned hotels in June. As of Tuesday, the company said most of its hotels have reopened. More reopenings are expected in the third quarter as business travel resumes. Demand for hotels in the second quarter was from road trip travelers, the company said.
“Most canceled group bookings that were not for one-time events are rebooking for future dates, including for the rescheduled Ryder Cup in September 2021,” said Michael Evans, president of Marcus Hotels & Resorts in the release.
“And while the (Democratic National Convention) will not be nearly as significant as originally anticipated due to the COVID-19 pandemic, it still is expected to benefit our Milwaukee hotels. While temporarily closing our hotels was the right thing to do, we believe our properties are uniquely positioned in their respective markets to recapture demand as travel recovers.”
The reduction in travel led to the company laying off more than 400 workers at three Milwaukee hotels, two Lake Geneva resorts and a Madison hotel. At Marcus' corporate headquarters, 13 employees were laid off.