WASHINGTON, April 22, 2004 - Marriott International,
Inc. (NYSE: MAR) today reported diluted earnings per share from continuing
operations of $0.47 in the first quarter of 2004, up 31 percent from 2003.
Income from continuing operations, net of taxes, for the quarter was $114
million, also a 31 percent increase over 2003 levels. Synthetic fuel
operations contributed approximately $11 million ($0.04 per share) in the
first quarter versus $19 million ($.08 per share) in the year ago quarter.
Highlights from the quarter:
-
Excluding the earnings contribution from our synthetic fuel operations,
first quarter diluted earnings per share (EPS) from continuing operations
increased 54 percent to $0.43 compared to $0.28 a year ago.
-
North American comparable systemwide revenue per available room (REVPAR)
for the first fiscal quarter of 2004 (January 3 to March 26), rose 5.4
percent from the prior year.
-
Marriott's timeshare business more than doubled its results in the first
quarter as strong demand for our leading timeshare brands and higher margins
improved results.
-
Marriott added 7,380 hotel rooms and timeshare units during the quarter,
bringing the global system to 2,753 hotels and timeshare units (496,920
rooms); Marriott's systemwide rooms are up 5.4 percent from a year ago.
-
Marriott estimates 2004 full year diluted EPS from continuing operations,
including the impact of synthetic fuel, to total $2.24 to $2.34 per share,
which reflects growth of approximately 20 percent compared to 2003 results.
-
Marriott has repurchased 7.4 million shares of common stock year-to-date
in 2004 for a total of $328 million, including 6.6 million shares in the
first quarter.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott International,
said, "Results were terrific in the first quarter of 2004 and we are especially
pleased to see the increase in worldwide lodging demand. Group bookings
and transient demand accelerated steadily through the first quarter and
we are encouraged by the indications for the rest of the year as well.
When combined with our continued strength in new rooms growth and the timeshare
business, we are optimistic that EPS from continuing operations will increase
approximately 20 percent this year.
"Customers are not just looking; they are booking. Worldwide,
travelers are back on the road, going to group meetings, making sales calls
and taking family vacations. We saw substantial increases in reservations
booked during each week of the quarter and new group bookings substantially
exceeded our expectations as well. Across urban, suburban, airport
and resort markets, REVPAR increased in the first quarter. Closure
rates on our toll-free reservations number and on Marriott.com also hit
record highs during the quarter.
"Our leisure business deserves special mention. Marriott's industry
leading portfolio of more than 100 resort and timeshare destinations had
an outstanding performance during the first quarter of 2004. REVPAR
for our 44 in-season North American, Mexican, Caribbean and Hawaiian resort
hotels was up more than 10 percent and our timeshare business produced
record contract sales during the quarter. The destination hotels
that we have added to our system during the past several years are showing
strong performance gains against their competitive set."
In the first fiscal quarter (12 week period from January 3, 2004 to
March 26, 2004), REVPAR for comparable systemwide North American properties
increased by 5.4 percent, driven by gains in both occupancy and average
daily rates. REVPAR at comparable systemwide North American full-service
hotels (including Marriott Hotels & Resorts, The Ritz-Carlton, and
Renaissance Hotels & Resorts) also increased by 5.4 percent during
the quarter, while North American systemwide REVPAR for select-service
and extended-stay brands (including Courtyard, Fairfield Inn, Residence
Inn, TownePlace Suites, and SpringHill Suites) posted a REVPAR increase
of 5.5 percent. The Ritz-Carlton brand in North America experienced
stronger demand, particularly at its Florida resort properties, with comparable
REVPAR up 10.1 percent for January and February combined. On a calendar
quarter basis (January 1 - March 31), REVPAR for comparable systemwide
North American properties increased by 6.3 percent during the first quarter
of 2004.
International REVPAR at comparable systemwide properties increased 13.4
percent (6.4 percent in constant dollars) with strong demand in the Caribbean,
Mexico, the Middle East, Asia and the United Kingdom.
We added 38 hotels and timeshare resorts (7,380 rooms) to our worldwide
lodging portfolio during the first quarter, while three properties (1,024
rooms) exited the system. For the 2004 first quarter, hotels converted
from competitor or unbranded hotels accounted for approximately 42 percent
of the quarter's hotel room additions (nearly 30 percent excluding Ramada
International). At quarter end, the company's lodging group encompassed
2,753 hotels and timeshare resorts (496,920 rooms).
MARRIOTT REVENUES totaled $2.3 billion in the first quarter of
2004, an 11 percent increase from 2003. Base fees from managed hotels
increased 8 percent to $99 million, reflecting 2 percent net growth in
managed rooms and 5.6 percent REVPAR growth for worldwide comparable company-operated
hotels (in constant dollars). Franchise fees increased 17 percent
in the first quarter to $61 million, reflecting 9 percent net growth in
franchised rooms and REVPAR growth. Incentive management fees increased
14 percent to $33 million as a result of REVPAR growth, particularly in
our international operations. North American company-operated hotel
house profit margins declined slightly during the first quarter because
of higher utility and associate benefit costs, and lower telephone profits,
offset somewhat by improved productivity. International house profit
margins increased during the quarter by 2.5 percentage points. Worldwide,
house profit margins improved 0.4 percentage points.
Marriott's timeshare business reported 30 percent higher contract sales
for the first quarter of 2004, driven by particularly strong seasonal demand
for our Marriott Vacation Ownership Club timeshares in Florida, Hawaii
and California as well as our Ritz-Carlton Club fractional ownership product
in St. Thomas and Colorado.
MARRIOTT'S OPERATING INCOME increased 160 percent in the 2004
first quarter to $151 million from $58 million as a result of the sale
of a 50 percent interest in the company's synthetic fuel business in mid-2003
and stronger operating results in the lodging business. Marriott's
lodging operating income totaled $151 million, up 29 percent from the year
ago quarter, reflecting higher operating profits from the sale of timeshare
intervals and higher fees in the hotel business, offset somewhat by higher
general and administrative expenses. Marriott's general, administrative
and other expenses were $132 million in the first quarter of 2004, up 18
percent from the prior year as a result of higher administrative costs
in both our lodging and timeshare businesses, increased legal expenses
and $4 million of guarantee charges.
INTEREST EXPENSE decreased to $22 million in the first quarter
compared to $26 million in 2003, reflecting lower debt levels. Interest
income increased to $26 million in the 2004 first quarter reflecting slightly
higher average interest rates and loan balances. Provision for loan
losses was a positive $3 million as a result of receiving payment on a
note that had been fully reserved.
After-tax EPS from the synthetic fuel business in the first quarter
was $0.04 compared to $0.08 a year ago, reflecting the sale of a 50 percent
ownership interest in our synthetic fuel business in mid-2003 and slightly
lower production volume. Excluding the impact of our synthetic fuel
operations, our tax rate for continuing operations was 35.5 percent in
the first quarter of 2004.
During the 2004 first quarter, we sold real estate totaling $4 million
and a mezzanine hotel loan for $57 million. We owned only seven hotels
at the end of the first quarter. Total debt at the end of the first
quarter of 2004 was $1.7 billion, up from $1.5 billion at the end of 2003.
Cash balances at the end of the quarter were $195 million. During
the first quarter, we repurchased 6.6 million shares of common stock at
a total cost of $294 million. To date in the second quarter, we have
repurchased nearly 800,000 shares of common stock. Five million shares
remain authorized for repurchase.
During 2003, we closed the distribution services business and sold our
senior living business. Therefore, we show the financial results
for those businesses in discontinued operations for 2004 and 2003.
There were no earnings or losses from discontinued operations in the first
quarter of 2004 compared to diluted EPS of $0.12 in the year ago quarter.
Regarding our business segment results, full service lodging results
for the first quarter of 2004 increased to $100 million from $95 million
a year ago as a result of higher fees, partially offset by increased administrative
costs and pre-opening costs for two hotels. Select service and extended
stay lodging results were roughly flat year over year as increased fees
were offset by $4 million of guarantee charges and lower profits at hotels
under renovation. Timeshare results more than doubled to $50 million
in the first quarter reflecting a 40 percent increase in financially reportable
interval sales and substantially higher margins. Timeshare margins
benefited from leveraging fixed costs on higher sales and a greater proportion
of luxury projects.
OUTLOOK
We are pleased with the growing group and transient demand as well as
the outlook in our timeshare business for the rest of 2004. In addition,
we expect to benefit from the comparison to last year because of the impact
of both the war in Iraq and Severe Acute Respiratory Syndrome ("SARS")
in 2003. Based on these dynamics, we have increased our estimate
of 2004 systemwide comparable North American REVPAR growth to a range of
6 to 8 percent.
We expect house profit margins to improve modestly in 2004. We
also expect to complete timeshare mortgage note sale transactions in the
second and fourth quarters, open approximately 25,000 to 30,000 new rooms,
and earn roughly $0.38 to $0.42 of after-tax earnings per share from our
synthetic fuel business. Under these assumptions, our lodging operating
income is expected to increase roughly 25 percent to a range of $590 million
to $610 million for full year 2004. As a result, we are raising our
2004 estimate of EPS from continuing operations to a range of $2.24 to
$2.34.
For the second quarter, assuming North American systemwide comparable
REVPAR growth of between 7 to 9 percent, we currently estimate lodging
operating income of $145 million to $155 million, compared to $110 million
in the 2003 second quarter. Second quarter EPS from continuing operations
are estimated to range from $0.59 to $0.61, including $0.10 of earnings
from synthetic fuel.
We expect investment spending in 2004 to include approximately $50 million
for maintenance capital spending and approximately $50 million for systems
initiatives. We also expect to invest approximately $25 million in
new company-developed hotels and $75 million in the timeshare business.
We expect to invest approximately $150 million in mezzanine financing and
mortgage loans for hotels developed by our owners and franchisees and approximately
$150 million in equity investments, including investments in timeshare
joint ventures. In 2004, we estimate total investment spending levels
to be roughly $500 million, moderately lower than in 2003.
MARRIOTT INTERNATIONAL, INC.
Financial Highlights
(in millions, except per share amounts)
12 Weeks Ended 12 Weeks
Ended
March 26, 2004 March 28,
2003
-------------- --------------
Percent
Synthetic
Synthetic Better/
Lodging Fuel Total Lodging Fuel
Total (Worse)
------- ---- ----- ------- ----
----- -------
REVENUES
Base management
fees
$ 99 $ - $ 99 $ 92
$ - $ 92
8
Franchise fees
61 - 61
52 - 52
17
Incentive
management
fees
33 - 33
29 - 29
14
Owned, leased,
corporate housing
and other(1)
156 - 156
137 - 137
14
Timeshare interval
sales and
services(2)
318 - 318
237 - 237
34
Cost
reimbursements(3) 1,585
- 1,585 1,408 -
1,408 13
Synthetic fuel
- - -
- 68 68
*
----- ----- ----- ----- -----
-----
Total Revenues
2,252 - 2,252 1,955
68 2,023 11
OPERATING COSTS
AND EXPENSES
Owned, leased
and corporate
housing -
direct(4)
132 - 132
110 - 110
20
Timeshare - direct
252 - 252
208 - 208
21
Reimbursed costs
1,585 - 1,585 1,408
- 1,408 13
General,
administrative
and other(5)
132 - 132
112 - 112
18
Synthetic fuel
- - -
- 127 127
*
----- ----- ----- ----- -----
-----
Total Expenses
2,101 - 2,101 1,838
127 1,965 7
----- ----- ----- ----- -----
-----
OPERATING INCOME
$ 151 $ - 151 $ 117
$ (59) 58
*
===== =====
===== =====
Gains and
other income(6)
4
1
Interest expense
(22)
(26)
Interest income
26
20
Provision for
loan losses
3
(5)
Equity in
earnings (losses)-
Synthetic fuel(7)
(28)
-
Equity in
earnings (losses)-
Other(8)
(2)
(1)
-----
-----
INCOME FROM
CONTINUING
OPERATIONS
BEFORE
INCOME TAXES
132
47
(Provision) benefit
for income taxes
(18)
40
-----
-----
INCOME FROM
CONTINUING
OPERATIONS
114
87 31
Discontinued
operations
Income from
Senior Living
Services,
net of tax
-
30
Loss from
Distribution
Services,
net of tax
-
(1)
------
-----
NET INCOME
$ 114
$ 116 (2)
======
=====
EARNINGS PER
SHARE - Basic
Earnings from
continuing
operations
$0.50
$0.37 35
Earnings from
discontinued
operations
-
0.13 *
-----
-----
Earnings per share
$0.50
$0.50 -
=====
=====
EARNINGS PER
SHARE - Diluted
Earnings from
continuing
operations
$0.47
$0.36 31
Earnings from
discontinued
operations
-
0.12 *
-----
-----
Earnings per share
$0.47
$0.48 (2)
=====
=====
Basic Shares
229.6
233.9
Diluted Shares
242.9
243.6
* Calculated percentage is not
meaningful.
(1) - Owned, leased, corporate housing
and other revenue includes revenue from the properties we own or
lease, our ExecuStay business, land rent income and other revenue.
(2) - Timeshare interval sales and
services includes total timeshare revenue except for base fees, reimbursed
costs, note sale gains, and joint venture earnings (losses).
(3) - Cost reimbursements include
reimbursements from lodging properties for Marriott funded operating expenses.
(4) - Owned, leased and corporate
housing - direct expenses include operating expenses related to our
ExecuStay business, and owned or leased hotels including lease payments,
pre-opening expenses and depreciation.
(5) - General, administrative and
other expenses include the overhead costs allocated to our lodging
business segments (including ExecuStay and timeshare) and our unallocated
corporate overhead costs.
(6) - Gains and other income
includes gains on the sale of real estate and income related to our cost
method joint ventures.
(7) - Equity in earnings (losses)
-- Synthetic fuel includes our share of the equity in earnings of
the Synthetic fuel joint venture and the earnout we received from the Synthetic
fuel joint venture partner beginning November 6, 2003. The earnout
we received prior to November 6, 2003, along with the revenue generated
from the previously consolidated Synthetic fuel joint venture, are included
in Synthetic fuel revenue.
(8) - Equity in earnings (losses)
-- Other includes our equity in earnings (losses) of unconsolidated
joint ventures.
MARRIOTT INTERNATIONAL, INC.
Business Segments
($ in millions)
Quarter Ended(1)
March 26, 2004 March 28, 2003
REVENUES
-------------- --------------
Full-Service
$ 1,505 $
1,330
Select-Service
247
234
Extended-Stay
115
124
Timeshare
385
267
-------------- --------------
Total lodging(2)
2,252
1,955
Synthetic fuel
-
68
-------------- --------------
Total
$ 2,252 $
2,023
============== ==============
INCOME FROM CONTINUING OPERATIONS
Full-Service
$100
$95
Select-Service
23
24
Extended-Stay
10
10
Timeshare
50
18
-------------- --------------
Total lodging financial
results(2)
183
147
Synthetic fuel (after tax)
11
19
Unallocated corporate expense
(30)
(30)
Interest income, provision for
loan losses and interest expense
7
(11)
Income taxes (excluding Synthetic
fuel)
(57)
(38)
-------------- --------------
Total
$ 114
$ 87
============== ==============
(1) There were 12 weeks in the quarters
ended March 26, 2004 and March 28, 2003.
(2) We consider lodging revenues and
lodging financial results to be meaningful indicators of our performance
because they measure our growth in profitability as a lodging company and
enable investors to compare the sales and results of our lodging operations
to those of other lodging companies.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
North American Comparable Company-Operated Properties(1)
Twelve weeks ended March 26, 2004 vs. March 28, 2003
Average
REVPAR Occupancy
Daily Rate
------ ---------
----------
Brand
2004 vs. 2003 2004 vs. 2003
2004 vs.2003
Marriott Hotels
& Resorts
$102.36 3.8% 70.1% 1.9%
pts. $145.92 1.0%
The Ritz-Carlton(2) $180.91
10.1% 67.1% 5.6% pts. $269.47
0.9%
Renaissance
Hotels &
Resorts
$95.20 5.5% 68.1% 3.3%
pts. $139.87 0.4%
Composite -
Full-Service
$107.35 4.9% 69.6% 2.4%
pts. $154.27 1.3%
Residence Inn
$73.70 2.0% 74.4% 0.0%
pts. $99.11 1.9%
Courtyard
$65.16 6.0% 68.3% 3.3%
pts. $95.39 0.8%
TownePlace Suites
$45.02 11.0% 70.0% 5.4% pts.
$64.33 2.3%
Composite -
Select-Service
& Extended-Stay
$65.18 5.4% 69.5% 2.8%
pts. $93.74 1.2%
Composite - All(3)
$92.11 5.0% 69.6% 2.5%
pts. $132.41 1.2%
North American Comparable Systemwide Properties(1)
Twelve weeks ended March 26, 2004 vs. March 28, 2003
Average
REVPAR Occupancy
Daily Rate
------ ---------
----------
Brand
2004 vs. 2003 2004 vs. 2003
2004 vs.2003
Marriott Hotels
& Resorts
$94.40 4.4% 68.6% 2.0%
pts. $137.55 1.3%
The Ritz-Carlton(2) $180.91
10.1% 67.1% 5.6% pts. $269.47
0.9%
Renaissance
Hotels &
Resorts
$88.57 7.3% 67.0% 4.1%
pts. $132.22 0.6%
Composite -
Full-Service
$98.22 5.4% 68.3% 2.5%
pts. $143.81 1.5%
Residence Inn
$72.24 4.4% 74.7% 1.9%
pts. $96.66 1.7%
Courtyard
$65.83 7.2% 68.6% 3.0%
pts. $96.01 2.4%
Fairfield Inn
$38.86 2.3% 60.1% 0.6%
pts. $64.62 1.3%
TownePlace Suites
$44.90 6.6% 69.7% 3.8%
pts. $64.44 0.7%
SpringHill Suites
$56.86 8.1% 67.9% 3.5%
pts. $83.78 2.6%
Composite -
Select-Service
& Extended-Stay
$58.55 5.5% 67.8% 2.2%
pts. $86.33 2.1%
Composite - All(4)
$75.52 5.4% 68.0% 2.3%
pts. $111.02 1.8%
(1) Composite -- All statistics include
properties for the Marriott Hotels & Resorts, Renaissance Hotels &
Resorts, The Ritz-Carlton, Courtyard, Residence Inn, TownePlace Suites,
Fairfield Inn, and SpringHill Suites brands. Full Service composite
statistics include properties for Marriott Hotels & Resorts, Renaissance
Hotels & Resorts and the Ritz Carlton. Select-Service and Extended-Stay
composite statistics include properties for the Courtyard, Residence Inn,
TownePlace Suites, Fairfield Inn and SpringHill Suites brands.
(2) Statistics for The Ritz-Carlton
are for the two months ended February 29, 2004 as compared to the two months
ended February 28, 2003.
(3) North American RevPar for comparable
company-operated hotels in the 2004 first calendar quarter (January 1-
March 31) was $95.32, an increase of 6.3% over last year.
(4) North American comparable systemwide
RevPar in the 2004 first calendar quarter (January 1 - March 31) was $77.51,
an increase of 6.3% over last year.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
International Comparable Company-Operated Properties(1)
Two Months Ended February 29, 2004 and February 28, 2003
Average
REVPAR
Occupancy Daily Rate
------
--------- ----------
Brand
2004 vs. 2003 2004 vs. 2003
2004 vs. 2003
Caribbean &
Latin America
$112.12 10.7% 73.1% 4.8% pts.
$153.41 3.4%
Continental Europe
$73.10 -1.2% 58.2% 0.8% pts.
$125.68 -2.6%
United Kingdom
$124.36 14.8% 71.2% 6.7% pts.
$174.67 4.0%
Middle East
& Africa
$84.38 30.5% 73.7% 5.1% pts.
$114.53 21.4%
Asia Pacific(2)
$63.35 4.1% 71.2% 1.6%
pts. $88.94 1.8%
Total
International(3,4)
$82.44 7.6% 68.3% 2.7%
pts. $120.78 3.3%
International Comparable Systemwide Properties(1)
Two Months Ended February 29, 2004 and February 28, 2003
Average
REVPAR
Occupancy Daily Rate
------
--------- ----------
Brand
2004 vs. 2003 2004 vs. 2003
2004 vs. 2003
Caribbean &
Latin America
$103.77 12.4% 71.1% 6.5% pts.
$145.97 2.1%
Continental Europe
$71.33 2.1% 57.4% 2.9%
pts. $124.19 -3.0%
United Kingdom
$86.26 4.1% 62.7% 2.0%
pts. $137.59 0.8%
Middle East
& Africa
$80.90 28.1% 71.4% 3.7% pts.
$113.26 21.4%
Asia Pacific(2)
$66.72 2.2% 71.5% 0.8%
pts. $93.37 1.0%
Total
International(3,5)
$79.85 6.4% 66.4% 2.9%
pts. $120.19 1.7%
(1) International financial results
are reported on a period end basis, while International statistics are
reported on a month end basis. Statistics are in constant dollars
and include results for January and February. Excludes North America.
(2) Excludes Hawaii
(3) Includes Hawaii.
(4) International RevPar for comparable
company-operated hotels in the 2004 first calendar quarter (January 1-
March 31) was $86.05, an increase of 11.4% over last year in constant dollars,
or 17.7% using actual foreign exchange rates.
(5) International comparable systemwide
RevPar in the 2004 first calendar quarter (January 1 - March 31) was $85.22,
an increase of 11.0% over last year in constant dollars, or 18.8% using
actual foreign exchange rates.
MARRIOTT INTERNATIONAL, INC.
Total Lodging Products(1)
Number of Properties Number of Rooms/Suites
March 26, vs.March 28, March 26, vs.March 28,
Brand
2004 2003
2004 2003
Full-Service Lodging
Marriott Hotels
& Resorts
476 +18
175,131 +7,024
The Ritz-Carlton
57 +5
18,644 +1,728
Renaissance Hotels
& Resorts
126 -3
45,597 -1,310
Ramada International
202 +52
27,522 +5,648
Select-Service Lodging
Courtyard
630 +37
90,527 +5,175
Fairfield Inn
527 +19
50,474 +1,724
SpringHill Suites
112 +13
12,903 +1,535
Extended-Stay Lodging
Residence Inn
449 +18
53,422 +2,269
TownePlace Suites
112 +7
11,462 +656
Marriott Executive
Apartments
13 +1
2,422 +255
Timeshare
Marriott Vacation Club
International
41 -3
8,068 +857
Horizons by Marriott
Vacation Club
International
2 -
256 +44
The Ritz-Carlton Club
4 -
244 +40
Marriott Grand
Residence Club
2 -
248 -
Total
2,753 +164
496,920 +25,645
===============================================
(1) Total Lodging Products excludes
the 2,697 corporate housing rental units.
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation (in millions, except per share
amounts)
We consider income from continuing
operations and the effective tax rate excluding the impact of the Synthetic
fuel joint venture, to be meaningful performance indicators because they
reflect that portion of our income from continuing operations and the effective
tax rate that relates to our lodging business and enables investors to
compare the results of our operations and effective tax rate to that of
other lodging companies.
The reconciliation of the effective
income tax rate from continuing operations to the effective income tax
rate from continuing operations, excluding the impact of our Synthetic
fuel operation is as follows:
First Quarter 2004
Continuing Operations
Income from Synthetic Excluding
Continuing Fuel Synthetic
Operations Impact
Fuel
---------------- --------- ---------
Pre tax income (loss)
$132 $(28)
$160
Tax Benefit/(Provision)
(47) 10
(57)
Tax Credits
29 29
-
---------------- --------- ---------
Total Tax
Benefit/(Provision)
(18) 39
(57)
---------------- --------- ---------
Income from
Continuing Operations $114
$11 $103
================ ========= =========
Diluted Shares
242.9 242.9
242.9
Earnings per
Share - Diluted
$0.47 $0.04
$0.43
Tax Rate
13.7%
35.5%
First Quarter 2003
Continuing Operations
Income from Synthetic Excluding
Continuing Fuel Synthetic
Operations Impact
Fuel
---------------- --------- ---------
Pre tax income (loss)
$47 $(59)
$106
Tax Benefit/(Provision)
(17) 21
(38)
Tax Credits
57 57
-
---------------- --------- ---------
Total Tax
Benefit/(Provision)
40 78
(38)
---------------- --------- ---------
Income from
Continuing Operations $87
$19 $68
================ ========= =========
Diluted Shares
243.6 243.6
243.6
Earnings per
Share - Diluted
$0.36 $0.08
$0.28
Tax Rate
(83.7%)
36.0%
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
($ in millions)
The reconciliation of operating income
to lodging operating income is as follows:
Fiscal Year 2003
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
------- ------- ------- ------- -----
Operating income
$58 $68 $90
$161 $377
Less: Synthetic
fuel operating
loss
59 42
3 - 104
------- ------- ------- ------- -----
Lodging operating
income $117
$110 $93 $161 $481
======= ======= ======= ======= =====
We consider lodging operating income
to be a meaningful indicator of our performance because it measures our
growth in profitability as a lodging company and enables investors to compare
the operating income related to our lodging segments to the operating income
of other lodging companies. |
This press release contains "forward-looking statements" within the
meaning of federal securities laws, including REVPAR, profit margin and
earning trends; statements concerning the number of lodging properties
we expect to add in future years; our expected investment spending; our
anticipated results from synthetic fuel operations; and similar statements
concerning anticipated future events and expectations that are not historical
facts.
|