Summary
Marriott International, Inc. reported strong financial performance for the twelve weeks ended March 23, 2001, with net income increasing by 29% to $121 million and sales growing by 13% to $2.44 billion compared to the same period in 2000. Diluted earnings per share also saw a significant rise of 27% to $0.47. This growth was driven by a 10% increase in operating profit for the Lodging segment and an 18% sales increase in Distribution Services. The company also demonstrated robust cash flow generation, with a net increase in cash and equivalents. The company continues to expand its hotel portfolio, adding 66 lodging properties in the quarter. Despite a general economic slowdown impacting occupancy rates across some brands, average room rates and REVPAR (Revenue Per Available Room) saw positive growth for most segments. The company also highlighted its successful acquisition and integration of new contracts in its Distribution Services business and strong profit growth in its Vacation Club International segment. Management expressed confidence in the company's liquidity and financial resources to support ongoing operations and growth initiatives.
Key Highlights
- 1Net income surged 29% year-over-year to $121 million for the twelve weeks ended March 23, 2001.
- 2Sales increased by 13% to $2.44 billion, driven by growth across segments.
- 3Diluted Earnings Per Share (EPS) rose 27% to $0.47 compared to the prior year period.
- 4The Lodging segment reported a 10% increase in operating profit with systemwide lodging sales up 12%.
- 5Marriott Vacation Club International showed substantial profit growth with a 19% increase in contract sales.
- 6Distribution Services experienced an 18% sales increase, partly due to new contracts.
- 7The company added 66 lodging properties (11,500 units) in the first quarter of 2001, expanding its global footprint.