Summary
Marriott International, Inc. reported a significant turnaround in its financial performance for the first three quarters of 2012 compared to the same period in 2011. The company swung from a net loss of $179 million in Q3 2011 to a net income of $143 million in Q3 2012, and from a net income of $57 million for the first nine months of 2011 to $390 million for the same period in 2012. This improvement is largely attributed to the successful spin-off of its timeshare operations (MVW) in late 2011, which removed significant prior-year charges and allowed the core lodging business to demonstrate its underlying strength. Revenues for the lodging business showed growth across various segments, driven by increased cost reimbursements, franchise fees, and management fees, reflecting improved demand and system growth. While the company continues to manage its debt effectively, including recent debt issuances and retirements, its liquidity remains strong, supported by its credit facilities. The company's strategic focus on management and franchising, rather than ownership, continues to provide stable earnings and minimize financial risk in a cyclical industry.
Financial Highlights
49 data points| Revenue | $2.73B |
| Operating Expenses | $2.52B |
| Operating Income | $213.00M |
| Interest Expense | $29.00M |
| Net Income | $143.00M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 319.40M |
| Shares Outstanding (Diluted) | 329.30M |
Key Highlights
- 1Net income for the third quarter of 2012 was $143 million, a significant improvement from a net loss of $179 million in the third quarter of 2011.
- 2For the first nine months of 2012, net income was $390 million, compared to $57 million for the same period in 2011, demonstrating a strong year-over-year recovery.
- 3The company benefited from the spin-off of its timeshare business (MVW) in late 2011, which eliminated prior-year impairment charges and simplified financial reporting.
- 4Lodging revenues increased, driven by higher cost reimbursements, franchise fees, and management fees, indicating strengthening demand and growth in the core business.
- 5Worldwide RevPAR (Revenue per Available Room) increased by 6.0% for comparable systemwide properties in Q3 2012 compared to Q3 2011.
- 6Marriott completed the acquisition of the Gaylord brand and hotel management company on October 1, 2012, for $210 million, adding significant room capacity.
- 7The company repurchased 24.3 million shares of Class A Common Stock during the first nine months of 2012.