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 Marriott 1st Qtr 2004 Net Income Falls to $114 million from $116 million Prior Year; Timeshare Business Doubles
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Adds 7,380 Hotel Rooms and Timeshare Units During the Quarter

Hotel Operating Statistics

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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. 


 
Contact:
Marriott International, Inc.
http://www.marriott.com

 
Also See: Marriott Earns $116 million in 1st Qtr 2003, Up from $82 million Last Year; Synthetic Fuel Business Accounts for $19 million / Key Lodging Statistics/ April 2003
Marriott Reports 2003 Net Income Up 81% to $502 million from $277 million for 2002; Full-year Revpar for North American Properties Fell 1.3%, Expects 2004 Revpar to Increase 3% to 4%, Plans to Add 25,000 to 30,000 Rooms in 2004 / Hotel Operating Statistics / February 2004


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