Summary
Marriott International, Inc. (MAR) reported solid financial results for the third quarter and the first nine months of fiscal year 2013, demonstrating continued growth and operational strength in the lodging sector. The company saw a notable increase in revenues across its various segments, driven by higher management and franchise fees, and improved RevPAR (Revenue Per Available Room) figures globally, particularly in North America and the Luxury segment. Net income for the first nine months rose significantly to $475 million, a substantial increase from $390 million in the prior year period, with diluted EPS growing to $1.51 from $1.16. This performance reflects the company's effective strategy of focusing on management and franchising, which provides stable earnings and growth with minimal capital investment. Marriott also highlighted strategic initiatives including system-wide growth with the addition of new rooms and a robust development pipeline, alongside efforts to enhance brand value and customer loyalty. The company's financial position remains strong, supported by improved operating cash flow and a well-managed debt structure, including an extended and upsized credit facility. Despite macroeconomic uncertainties, Marriott's diversified business model and focus on operational efficiency and guest satisfaction position it well for continued success.
Financial Highlights
50 data points| Revenue | $3.16B |
| Operating Expenses | $2.92B |
| Operating Income | $245.00M |
| Interest Expense | $28.00M |
| Net Income | $160.00M |
| EPS (Basic) | $0.53 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Basic) | 301.90M |
| Shares Outstanding (Diluted) | 309.50M |
Key Highlights
- 1Total revenues for the first nine months of 2013 increased by 19% to $9.565 billion, compared to $8.057 billion in the same period of 2012.
- 2Net income for the first nine months of 2013 grew to $475 million from $390 million in the prior year period, representing an 21.8% increase.
- 3Diluted earnings per share (EPS) for the first nine months of 2013 were $1.51, up from $1.16 in the comparable 2012 period.
- 4Comparable systemwide RevPAR for the third quarter of 2013 increased by 4.8% on a constant dollar basis, with occupancy up 1.0 percentage points to 74.6%.
- 5The company added 17,900 rooms to its system in the first nine months of 2013 and maintained a strong development pipeline of over 144,000 rooms.
- 6Marriott successfully amended and restated its credit facility in the third quarter, extending its expiration to July 18, 2018, and increasing the facility size to $2,000 million.
- 7The company declared and paid quarterly cash dividends, with $0.1700 per share paid in the third quarter of 2013, up from $0.1300 in the prior year's third quarter.