What was Marriott's financial performance for the quarter ended June 15, 2001?

For the quarter ended June 15, 2001, Marriott International reported net income of $130 million on sales of $2.45 billion. Diluted earnings per share were $0.50. While net income saw a slight increase, the core lodging segment experienced a decrease in operating profit due to declining occupancy rates across many of its brands.

How did the September 11th terrorist attacks impact Marriott's business in this reporting period?

The filing period ended June 15, 2001, which predates the September 11th attacks. However, the 'Management's Discussion and Analysis' section includes a 'Subsequent Events' note that explicitly addresses the adverse effects of the attacks. The company reported significant short-term declines in hotel occupancy since September 11th and is undertaking a comprehensive analysis of its cost structure and financial performance, warning of potential material adverse impacts.

What is the company's liquidity position?

At June 15, 2001, Marriott International had cash and equivalents totaling $674 million. Combined with its available borrowing capacity under credit facilities, the company had nearly $2.7 billion in liquidity. Management considered these resources, along with expected operating cash flow, adequate to meet short-term and long-term liquidity needs and finance growth plans.

What is the status of the legal proceedings mentioned in the filing?

The filing details a significant lawsuit filed by Green Isle Partners, Ltd. against The Ritz-Carlton Hotel Company and Marriott International, alleging various RICO and fraud-related claims. Green Isle is seeking treble damages up to $420 million. The defendants have moved to dismiss the complaint, and Green Isle has since filed for Chapter 11 bankruptcy protection.

MAR 10-Q Quarterly Report Q2 FY2001 — Revenue, Net Income, EPS

Summary

Marriott International, Inc. filed an amendment to its Form 10-Q for the quarter ended June 15, 2001. The company reported net income of $130 million for the second quarter of 2001, a slight increase from the prior year's $126 million, with diluted earnings per share remaining flat at $0.50. Sales for the quarter rose by 2% to $2.45 billion. Despite a slight increase in overall net income, the lodging segment, which represents the core business, experienced a 5% decrease in operating profit, though overall lodging sales saw a marginal increase. The company notes declines in REVPAR (Revenue Per Available Room) across most of its major lodging brands due to decreased occupancy, although average room rates saw an increase. Looking at the year-to-date performance (twenty-four weeks ended June 15, 2001), Marriott reported a more substantial 14% increase in net income to $251 million and a 7% increase in sales to $4.91 billion. This growth was partly attributed to a favorable comparison with the prior year, which included a pre-tax charge. The company also highlighted positive performance in its Marriott Vacation Club International and Marriott Senior Living Services segments. However, management's discussion also acknowledges the adverse effects of the September 11, 2001 terrorist attacks on hotel occupancy and anticipates potential material adverse impacts on financial results.

Key Highlights

1Net income for the second quarter of 2001 was $130 million, a 3% increase from $126 million in the prior year's second quarter.
2Diluted earnings per share remained unchanged at $0.50 for the second quarter.
3Total sales increased by 2% to $2.45 billion in the second quarter of 2001.
4The core lodging segment's operating profit decreased by 5% in the second quarter, despite a slight increase in sales.
5REVPAR (Revenue Per Available Room) for comparable company-operated U.S. properties declined by an average of 4.4% in the second quarter, driven by a decrease in occupancy.
6The company issued $405 million in zero-coupon convertible senior notes (LYONs) in May 2001.
7The report acknowledges the significant negative impact of the September 11, 2001 terrorist attacks on occupancy and anticipates potential material adverse effects.

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report (Amendment) for Q2 Ended Jun 15, 2001

Summary

Key Highlights

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