Summary
Marriott International, Inc. reported a net loss of $179 million ($0.52 per diluted share) for the twelve weeks ended September 9, 2011, a significant decline from a net income of $83 million ($0.22 per diluted share) in the same period last year. This loss was primarily driven by a substantial $324 million impairment charge related to the company's timeshare strategy, aimed at monetizing excess undeveloped land and inventory. Excluding this charge, the company's Adjusted EBITDA showed a slight increase, indicating underlying operational resilience. Revenues for the quarter grew by 9% year-over-year to $2.874 billion, driven by increases in cost reimbursements, owned/leased properties, and management/franchise fees. Despite the reported net loss, the company's lodging segments, particularly North American Full-Service and Limited-Service, demonstrated revenue and RevPAR growth, signaling a recovery in the core hospitality business. The company is also progressing with its plan to spin off its timeshare business, Marriott Vacations Worldwide Corporation (MVW), into a separate publicly traded entity.
Financial Highlights
50 data points| Revenue | $2.87B |
| Operating Expenses | $3.02B |
| Operating Income | -$144.00M |
| Interest Expense | $39.00M |
| Net Income | -$179.00M |
| EPS (Basic) | $-0.52 |
| EPS (Diluted) | $-0.52 |
| Shares Outstanding (Basic) | 345.40M |
| Shares Outstanding (Diluted) | 345.40M |
Key Highlights
- 1Reported a net loss of $179 million for the twelve weeks ended September 9, 2011, compared to net income of $83 million in the prior year period, largely due to a $324 million timeshare strategy impairment charge.
- 2Total revenues increased by 9% to $2.874 billion for the twelve weeks ended September 9, 2011.
- 3Adjusted EBITDA increased to $240 million from $220 million in the prior year period, suggesting operational strength excluding impairment charges.
- 4RevPAR (Revenue Per Available Room) for comparable systemwide properties increased by 6.9% to $96.15 for the first three quarters of 2011.
- 5The company is actively pursuing the planned spin-off of its timeshare operations into a new entity, Marriott Vacations Worldwide Corporation (MVW).
- 6Significant share repurchases totaling $1.225 billion were made during the first nine months of 2011.
- 7North American Full-Service and Limited-Service lodging segments showed revenue growth and improved RevPAR, indicating a positive trend in core operations.