Summary
Marriott International, Inc. reported solid financial performance for the twelve weeks ended March 26, 2004, demonstrating a significant increase in revenue and income from continuing operations compared to the same period in the prior year. The company's lodging segment showed robust growth, driven by strong performance in its Timeshare division and increased fees across its hotel brands, evidenced by a notable rise in REVPAR. This growth was partially offset by a decline in results from its synthetic fuel operations, a segment that has undergone ownership changes and is now accounted for differently. The company also highlighted its ongoing commitment to shareholder value through share repurchases and indicated adequate liquidity to meet its financial obligations and growth plans.
Key Highlights
- 1Revenues increased by 11% to $2.25 billion, driven by strong performance in the lodging segment, particularly timeshare sales and increased hotel fees.
- 2Income from continuing operations surged by 31% to $114 million, with diluted EPS from continuing operations rising to $0.47.
- 3The Timeshare segment experienced exceptional growth, with revenues up 44% to $385 million and segment results more than doubling to $50 million.
- 4Systemwide REVPAR for comparable North American properties increased by 5.4%, indicating improved occupancy and average daily rates across Marriott's hotel portfolio.
- 5The company repurchased 6.6 million shares of Class A Common Stock during the quarter, demonstrating a commitment to returning capital to shareholders.
- 6Marriott finalized the adoption of FIN 46(R), leading to the consolidation of synthetic fuel joint ventures and a change in accounting for that segment.
- 7A significant subsequent event is Cendant Corporation's redemption of Marriott's interest in the Ramada and Days Inn US trademarks for $200 million, expected in September 2004, with a pre-tax gain of $13 million anticipated.