Summary
Marriott International, Inc. reported its second-quarter 2008 financial results, showing a slight increase in total revenues to $3.185 billion compared to $3.122 billion in the prior year period. However, net income decreased to $157 million ($0.42 per diluted share) from $207 million ($0.51 per diluted share) in the same period last year. This decline was primarily driven by lower performance in the Timeshare segment, which saw a 14% decrease in revenue, and increased operational costs. Despite a challenging economic environment impacting U.S. lodging demand, international demand remained strong, contributing to modest RevPAR growth for comparable properties globally. The company continues to expand its footprint, with over 130,000 rooms in its development pipeline.
Financial Highlights
25 data points| Revenue | $3.19B |
| Operating Expenses | $2.87B |
| Operating Income | $313.00M |
| Interest Expense | $38.00M |
| Net Income | $157.00M |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.42 |
Key Highlights
- 1Total revenues for the twelve weeks ended June 13, 2008, increased by 2% to $3.185 billion year-over-year.
- 2Net income for the twelve weeks ended June 13, 2008, decreased to $157 million ($0.42 diluted EPS) from $207 million ($0.51 diluted EPS) in the prior year period.
- 3Timeshare sales and services revenue decreased by 14% to $388 million in the second quarter of 2008 compared to the prior year quarter.
- 4Operating income decreased by 7% to $313 million in the second quarter of 2008, primarily due to lower Timeshare segment performance and higher operating costs.
- 5The company added 221 properties (33,380 rooms) to its system since the second quarter of 2007.
- 6Worldwide RevPAR for comparable company-operated properties increased by 3.2% (5.6% in actual dollars) for the second quarter of 2008.
- 7Cash and equivalents decreased to $125 million as of June 13, 2008, from $332 million at the end of 2007, largely due to significant share repurchases and capital expenditures.