Summary
Marriott International, Inc. (MAR) reported its financial results for the quarterly period ending June 20, 2003. The company's income from continuing operations remained relatively stable year-over-year, with a slight decrease in net income to $125 million for the twelve weeks ended June 20, 2003, compared to $129 million in the prior year. Diluted earnings per share from continuing operations saw an increase to $0.52 from $0.49, indicating improved operational efficiency or share buybacks. Key financial performance drivers included a slight decline in lodging segment results, impacted by softer hotel demand, partially offset by growth in timeshare note sales and new property additions. The company's Synthetic Fuel business continued to contribute positively through tax benefits, despite operating losses. Marriott also made significant progress in divesting non-core assets, including its Senior Living Services and Distribution Services businesses, which are now reported as discontinued operations. The company maintained a strong liquidity position, with substantial cash and available borrowing capacity.
Key Highlights
- 1Net income from continuing operations was $125 million for the twelve weeks ended June 20, 2003, a slight decrease from $129 million in the prior year.
- 2Diluted earnings per share from continuing operations increased to $0.52 from $0.49 year-over-year for the twelve-week period.
- 3Total sales remained stable at approximately $2 billion for the twelve weeks ended June 20, 2003.
- 4Lodging segment results saw a 9% decrease, impacted by declining hotel demand, though systemwide lodging sales remained steady.
- 5The company made progress on divestitures, with Senior Living Services and Distribution Services businesses reported under discontinued operations.
- 6The Synthetic Fuel business generated significant tax benefits ($68 million in the quarter) which offset its operating losses.
- 7Marriott ended the quarter with $144 million in cash and equivalents, a decrease from the prior year, reflecting debt repayments and share repurchases.