Summary
Marriott International, Inc. (MAR) reported solid financial results for the period ending June 15, 2012, showing an increase in net income to $143 million for the twelve-week period and $247 million for the twenty-four week period, compared to the prior year. Diluted earnings per share also saw an improvement, reaching $0.42 and $0.72 for the respective periods. The company's lodging business demonstrated resilience, with overall RevPAR (Revenue per Available Room) increasing by 6.7% for both the twelve and twenty-four week periods on a constant dollar basis, driven by improvements in average daily rates and occupancy. This growth was supported by strong demand in many markets and effective operational efficiencies. The company continued to execute its asset-light strategy, with a significant portion of its room inventory managed or franchised. A notable event impacting the financials was the spin-off of its timeshare operations (Marriott Vacations Worldwide Corporation) in late 2011, which affected year-over-year revenue comparisons but positioned the company for a more focused lodging business. Marriott also announced a definitive agreement to acquire the Gaylord brand and hotel management company for $210 million, signaling strategic expansion. The company maintained a strong balance sheet with adequate liquidity and continued to return value to shareholders through dividends and share repurchases.
Financial Highlights
49 data points| Revenue | $2.78B |
| Operating Expenses | $2.53B |
| Operating Income | $243.00M |
| Interest Expense | $34.00M |
| Net Income | $143.00M |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 327.90M |
| Shares Outstanding (Diluted) | 338.00M |
Key Highlights
- 1Net income increased to $143 million for the twelve weeks ended June 15, 2012, up from $135 million in the prior year period.
- 2Diluted earnings per share improved to $0.42 for the twelve weeks ended June 15, 2012, from $0.37 in the prior year period.
- 3Worldwide RevPAR (Revenue per Available Room) increased by 6.7% for both the twelve and twenty-four week periods compared to the prior year, reflecting broad-based demand improvements.
- 4The company announced a definitive agreement to acquire the Gaylord brand and hotel management company for $210 million, expected to add significant room inventory.
- 5Marriott International successfully executed its timeshare spin-off (Marriott Vacations Worldwide Corporation) in late 2011, allowing for a more focused core lodging business.
- 6Capital expenditures for the first half of 2012 were $257 million, a significant increase from $91 million in the prior year, largely due to property acquisitions and development.
- 7The company continued its capital return program, declaring and paying dividends and actively repurchasing shares.