Summary
Marriott International Inc. (MAR) reported a challenging third quarter for 2009, reflecting the broader economic downturn. Revenues for the twelve weeks ended September 11, 2009, decreased by 17% to $2.47 billion compared to the same period in the prior year. This decline was driven by reduced demand across most segments, particularly impacting timeshare sales and services, as well as lower incentive management fees. The company incurred a significant net loss of $466 million attributable to Marriott shareholders for the quarter, a substantial drop from the $94 million net income reported in the third quarter of 2008. This was largely due to a substantial $752 million pretax charge related to timeshare strategy impairment, alongside ongoing operational pressures. Despite the challenging environment, the company continued to focus on cost controls and driving revenue through promotions and its loyalty program.
Financial Highlights
51 data points| Revenue | $2.47B |
| Operating Expenses | $2.98B |
| Operating Income | -$506.00M |
| Interest Expense | $27.00M |
| Net Income | -$466.00M |
| EPS (Basic) | $-1.31 |
| EPS (Diluted) | $-1.31 |
| Shares Outstanding (Basic) | 356.70M |
| Shares Outstanding (Diluted) | 356.70M |
Key Highlights
- 1Marriott reported a significant net loss of $466 million for the twelve weeks ended September 11, 2009, compared to a net income of $94 million in the prior year's comparable period.
- 2Total revenues decreased by 17% to $2.47 billion for the twelve weeks ended September 11, 2009, due to decreased demand across most segments, especially Timeshare.
- 3The company recorded a substantial $752 million pretax charge related to its Timeshare strategy impairment, significantly impacting the quarter's results.
- 4Operating income for the twelve weeks ended September 11, 2009, turned negative, reaching an operating loss of $506 million, a sharp decline from the $203 million operating income in the prior year's quarter.
- 5Despite the economic headwinds, Marriott maintained a strong focus on cost management across its operations and continued to expand its property count.
- 6The company's available borrowing capacity under its credit facility remained substantial at $1.706 billion as of September 11, 2009, providing financial flexibility.