Summary
Marriott International, Inc. reported solid financial results for the second quarter and first half of 2011, demonstrating a recovery from the economic downturn. Revenues increased driven by higher management and franchise fees, reflecting improved RevPAR (Revenue Per Available Room) and system-wide unit growth. The company saw a notable increase in operating income and net income year-over-year, with diluted EPS showing similar positive trends. The company also announced a planned spin-off of its timeshare operations into a separate publicly traded company, Marriott Vacations Worldwide Corporation (MVW), expected in late 2011, which is anticipated to unlock further value and tax benefits. Liquidity remains strong, supported by an amended and restated credit facility providing ample borrowing capacity. The company resumed issuing commercial paper, indicating confidence in market conditions. Investment spending is projected for the full year, focusing on growth and maintenance. Despite positive performance, risks related to economic conditions, competition, and international operations persist. The company continues to implement cost controls across its operations.
Financial Highlights
51 data points| Revenue | $2.97B |
| Operating Expenses | $2.74B |
| Operating Income | $232.00M |
| Interest Expense | $37.00M |
| Net Income | $135.00M |
| EPS (Basic) | $0.38 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 356.90M |
| Shares Outstanding (Diluted) | 369.40M |
Key Highlights
- 1Revenues increased by 7% to $2.97 billion for the twelve weeks ended June 17, 2011, compared to the prior year, driven by higher cost reimbursements and management/franchise fees.
- 2Net income rose 13% to $135 million for the twelve weeks ended June 17, 2011, with diluted EPS increasing to $0.37 from $0.31 in the prior year period.
- 3Operating income for the twelve weeks ended June 17, 2011, increased slightly to $232 million from $226 million in the prior year, despite higher general, administrative, and other expenses.
- 4Marriott announced plans to spin off its timeshare operations into a new publicly traded company, Marriott Vacations Worldwide Corporation (MVW), expected in late 2011.
- 5Worldwide RevPAR (Revenue Per Available Room) for comparable systemwide properties increased by 6.8% on a constant dollar basis for the twelve weeks ended June 17, 2011.
- 6The company's credit facility was amended and restated to extend its expiration to June 23, 2016, and reduce its size to $1.75 billion, maintaining strong liquidity and supporting general corporate needs.
- 7Share-based compensation expense was $22 million for the twelve weeks ended June 17, 2011.