What was the primary reason for the decrease in total revenues compared to the prior year?

The primary reason for the decrease in total revenues from $2.778 billion in Q1 2011 to $2.552 billion in Q1 2012 was the spin-off of Marriott's timeshare operations (Marriott Vacations Worldwide Corporation) which occurred in late 2011. This resulted in the removal of the former Timeshare segment's revenues from the current period's reporting.

How did the spin-off of the timeshare business impact the company's financial results?

The spin-off of the timeshare business significantly impacted reported revenues, causing a decrease. However, the core lodging business showed growth, with revenues increasing by $100 million year-over-year. While operating income also decreased due to the spin-off's impact, the lodging segments contributed positively, showing improvements in RevPAR and segment results.

What is the company's outlook for the remainder of 2012, based on this filing?

Marriott expects to add 25,000 to 30,000 rooms to its system in 2012, with about half of these located outside the United States. They anticipate approximately 7,000 to 8,000 rooms exiting the system. The company's lodging business conditions were improving in early 2012, driven by low supply growth and a favorable economic climate in many markets, although some specific markets like Washington D.C. and parts of Europe experienced weaker demand. The company's strategy of focusing on management and franchising is expected to drive growth with reduced capital investment and risk.

What significant debt issuance occurred during the quarter?

In the first quarter of 2012, Marriott issued $600 million in aggregate principal amount of 3.000 percent Series K Notes due 2019. The net proceeds of approximately $590 million are intended for general corporate purposes, which may include working capital, capital expenditures, acquisitions, stock repurchases, or repayment of commercial paper.

MAR 10-Q Quarterly Report Q1 FY2012 — Revenue, Net Income, EPS

Summary

Marriott International reported a net income of $104 million for the twelve weeks ended March 23, 2012, a slight increase from $101 million in the same period last year. Diluted earnings per share also saw an improvement, rising to $0.30 from $0.26. Total revenues for the quarter were $2.552 billion, down from $2.778 billion in the prior year, largely due to the spin-off of its timeshare operations. The company highlighted improved lodging demand in many global markets, with worldwide average daily rates increasing by 3.5% and RevPAR up by 6.8%. The North American and International segments showed revenue growth, contributing to the overall performance despite the impact of the timeshare spin-off. Marriott continues to focus on its core lodging business, with a strong development pipeline and a strategy that emphasizes management and franchising to drive growth with reduced capital investment and risk.

Financial Highlights

50 data points

Beta

Revenue

$2.55B

Net Income

$104.00M

0.0% Net Margin

EPS (Diluted)

$0.30

Total Assets

$6.17B

Cash & Equivalents

$290.00M

Free Cash Flow

-$72.00M

Financial Statements

Beta

Revenue	$2.55B
Operating Expenses	$2.38B
Operating Income	$175.00M
Interest Expense	$33.00M
Net Income	$104.00M
EPS (Basic)	$0.31
EPS (Diluted)	$0.30
Shares Outstanding (Basic)	333.70M
Shares Outstanding (Diluted)	344.60M

Key Highlights

1Net income increased slightly to $104 million for Q1 2012, up from $101 million in Q1 2011.
2Diluted EPS rose to $0.30 from $0.26 year-over-year.
3Worldwide RevPAR increased by 6.8% on a constant dollar basis, indicating improved lodging demand.
4Total revenues decreased to $2.55 billion from $2.78 billion, primarily due to the timeshare business spin-off.
5The company repurchased 4.2 million shares of Class A Common Stock in the quarter.
6Marriott declared a cash dividend of $0.1000 per share, an increase from the prior year's $0.0875 per share.

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q1 Ended Mar 23, 2012

Summary

Financial Highlights

Key Highlights

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