BETHESDA, Md., Oct. 3, 2012
THIRD QUARTER HIGHLIGHTS
- Diluted earnings per share (EPS) totaled $0.44, a 52 percent increase over prior year
adjusted results;
- During the third quarter, the company completed the
sale of its equity interest in the Courtyard joint venture resulting in
cash proceeds of $96 million and a $41 million pre-tax gain;
- North America
comparable company-operated REVPAR rose 7.0 percent in the third
quarter. On a constant dollar basis, worldwide comparable systemwide
REVPAR rose 6.0 percent and average daily rate rose 4.7 percent using
constant dollars;
- At the end of the third quarter, the company's
worldwide pipeline of hotels under construction, awaiting conversion or
approved for development totaled over 120,000 rooms, not including the
8,100 rooms from the acquisition of the Gaylord brand and hotel
management business;
- Nearly 5,000 rooms opened during the quarter,
including over 1,400 rooms converted from competitor brands and over
1,600 rooms in international markets. The company signed nearly 13,000
rooms in the third quarter;
- Marriott repurchased 9.6 million shares of the
company's common stock for $353 million
during the quarter. Year-to-date through the third quarter, the company
repurchased 24.3 million shares for $903 million;
- For comparable Marriott Hotels & Resorts
properties in North America, group
room revenue increased 8 percent in the third quarter compared to the
year ago quarter.
Marriott International, Inc. (NYSE: MAR) today reported third
quarter 2012 results.
THIRD QUARTER 2012 RESULTS
Third quarter 2012 net income totaled $143
million, a 40 percent increase compared to third quarter 2011
adjusted net income. Diluted EPS totaled $0.44,
a 52 percent increase from adjusted diluted EPS in the year-ago
quarter. On July 11, 2012, the company
forecasted third quarter diluted EPS of $0.39
to $0.41.
For the third quarter of 2011, the company reported a net loss
of $179 million and reported diluted
losses per share of $0.52. Adjusted net
income and adjusted diluted EPS for the year-ago quarter excluded $349 million pretax ($281
million after-tax and $0.81 per
diluted share) of timeshare spin-off adjustments totaling $321 million pretax and other charges totaling
$28 million pretax. Timeshare
spin-off adjustments included items such as the removal of timeshare
business operating results and spin-off transaction costs, as well as
the addition of license fees and other related items as if the spin-off
had occurred on the first day of fiscal 2011. Other charges included an
$18 million pretax impairment
charge on an investment in equity securities and a $10 million pretax write-off related to one
property whose owner filed for bankruptcy. See page A-1 for third
quarter 2011 reported results, the timeshare spin-off adjustments,
other charges and adjusted results.
Arne M. Sorenson, president and
chief executive officer of Marriott International, said, "We were
pleased with our third quarter performance. Pricing power continued to
improve in the quarter as hotel occupancy levels approached prior
peaks. Group revenue at comparable Marriott Hotels and Resorts in North America rose 8 percent in the third
quarter with room rates up 3 percent. Transient REVPAR rose 6 percent
with strong last-minute retail demand and reduced discounting.
"Looking ahead, we expect 2013 worldwide constant dollar
REVPAR to increase at a mid single-digit rate despite moderate economic
growth in many markets around the world. We are particularly bullish
about our prospects in North America
and expect North American systemwide REVPAR to increase 5 to 7 percent
in 2013. In that market, negotiations for special corporate business
are already underway and we are targeting room rates to increase at a
high single-digit rate. Group revenue on the books for 2013 for the
Marriott brand in North America is up
over 7 percent with rates up nearly 4 percent.
"Worldwide we opened nearly 5,000 rooms during the quarter and
signed 13,000 rooms. We are delighted to welcome the Gaylord brand and
its five hotels located in Orlando, Nashville, Dallas
and Washington, DC to our system in
the fourth quarter. Across 14 lodging brands worldwide, our pipeline of
hotels under development, under construction or pending conversion
increased to over 120,000 rooms during the quarter. Around the world,
we expect to add 28,000 rooms in 2012, 30,000 to 35,000 rooms in 2013
and 90,000 to 105,000 for the three-year period from 2012 to 2014. Our
market share of hotels continues to grow around the world."
For the 2012 third quarter, REVPAR for worldwide comparable
systemwide properties increased 6.0 percent (a 4.6 percent increase
using actual dollars).
In North America, comparable
systemwide REVPAR increased 6.3 percent in the third quarter of 2012,
including a 4.9 percent increase in average daily rate. REVPAR for
comparable systemwide North American full-service and luxury hotels
(including Marriott Hotels & Resorts, The Ritz-Carlton,
Renaissance Hotels and Autograph Collection Hotels)
increased 6.8 percent with a 4.6 percent increase in average daily
rate. REVPAR for comparable systemwide North American limited-service
hotels (including Courtyard, Residence Inn, SpringHill Suites,
TownePlace Suites and Fairfield Inn & Suites)
increased 5.9 percent in the third quarter with a 5.0 percent increase
in average daily rate.
International comparable systemwide REVPAR rose 5.0 percent (a
1.5 percent decline using actual dollars), including a 3.8 percent
increase in average daily rate (a 2.6 percent decline using actual
dollars) in the third quarter of 2012.
Marriott added 35 new properties (4,874 rooms) to its
worldwide lodging portfolio in the 2012 third quarter, including the
Renaissance Shanghai Caohejing, the Renaissance Istanbul Bosphorus and
The Ritz-Carlton, Vienna. Thirteen properties (3,103 rooms) exited the
system during the quarter. At quarter-end, the company's lodging group
encompassed 3,770 properties and timeshare resorts for a total of
nearly 648,000 rooms.
The company's worldwide pipeline of hotels under construction,
awaiting conversion or approved for development totaled approximately
730 properties with over 120,000 rooms at quarter-end, not including
the 8,100 Gaylord rooms joining the system in the fourth quarter.
MARRIOTT REVENUES totaled over $2.7
billion in the 2012 third quarter compared to adjusted revenues
of $2.5 billion for the third quarter of
2011. Base management and franchise fees rose 9 percent over prior year
adjusted levels to $283 million,
reflecting higher REVPAR at existing hotels and fees from new hotels,
as well as $7 million of deferred base
management fees recognized in the quarter related to the sale of the
Courtyard joint venture. Third quarter worldwide incentive management
fees increased 24 percent to $36 million.
In the third quarter, 28 percent of worldwide company-managed hotels
earned incentive management fees compared to 24 percent in the year-ago
quarter.
Worldwide comparable company-operated house profit margins
increased 180 basis points in the third quarter. House profit margins
for comparable company-operated properties outside North America increased 160 basis points
and North American comparable company-operated house profit margins
increased 200 basis points from the year-ago quarter.
Owned, leased, corporate housing and other revenue, net of
direct expenses, totaled $26 million,
compared to $35 million in the year-ago
quarter. The $9 million decline
reflected a $7 million decline in
termination fees and a $2 million
decrease in residential branding fees.
GENERAL, ADMINISTRATIVE and OTHER expenses for the 2012 third
quarter declined 8 percent in the 2012 third quarter, to $132 million compared to adjusted expenses of $143 million in the 2011 third quarter. Third
quarter 2012 expenses reflected a favorable litigation settlement,
partially offset by higher legal expenses, netting to a favorable $5 million. In the prior year, expenses
reflected the $5 million combined impact
of the guarantee reserve for one hotel and the write-off of deferred
contract acquisition costs.
GAINS AND OTHER INCOME totaled $36
million in the quarter, primarily reflecting the $41 million gain related to the sale of the
Courtyard joint venture offset by a $7 million
impairment charge on an investment.
INTEREST EXPENSE totaled $29 million
in the third quarter, compared to adjusted interest expense of $32 million in the year-ago quarter.
Capitalized interest totaled $7 million
in the quarter, compared to $5 million
in the year-ago quarter.
EBITDA totaled $284 million in
the 2012 third quarter, a 27 percent increase over 2011 third quarter
adjusted EBITDA of $223 million. See
page A-9 for the EBITDA and adjusted EBITDA calculations.
BALANCE SHEET
At the end of the third quarter 2012, total debt was $2,509 million and cash balances totaled $105 million, compared to $2,171 million in debt and $102 million of cash at year-end 2011.
At the beginning of the fourth quarter, the company issued $350 million of Series L bonds due in 2022
with a 3.25 percent interest rate coupon. The company expects to use
the net proceeds for general corporate purposes.
COMMON STOCK
Weighted average fully diluted shares outstanding used to
calculate diluted EPS totaled 329.3 million in the 2012 third quarter,
compared to 356.8 million in the year-ago quarter.
The company repurchased 9.6 million shares of common stock in
the third quarter at a cost of $353 million.
Year-to-date through the third quarter, Marriott repurchased 24.3
million shares of its stock for $903 million.
The remaining share repurchase authorization, as of September 7, 2012, totaled 16.2 million shares.
FOURTH QUARTER 2012 OUTLOOK
For the fourth quarter, the company expects comparable
systemwide REVPAR on a constant dollar basis will increase 5 to 7
percent in North America, increase
roughly 3 percent outside North America
and improve 4 to 6 percent worldwide.
The company expects to add approximately 28,000 rooms
worldwide for the full year 2012. The company also expects
approximately 10,000 rooms will leave the system during the year.
|
Fourth
Quarter 2012
|
Full
Year 2012
|
Total
fee revenue
|
$445
million to $455 million
|
$1,406
million to $1,416 million
|
Owned,
leased, corporate housing and other revenue, net of direct expenses
|
Approx
$55 million
|
Approx
$164 million
|
General,
administrative and other expenses
|
$200
million to $210 million
|
$639
million to $649 million
|
Operating
income
|
$290
million to $310 million
|
$921
million to $941 million
|
Gains
and other income
|
Approx
$1 million
|
Approx
$44 million
|
Net
interest expense1
|
Approx
$30 million
|
Approx
$116 million
|
Equity
in earnings (losses)
|
Approx
$(5) million
|
Approx
$(15) million
|
Earnings
per share
|
$0.52
to $0.56
|
$1.68
to $1.72
|
Tax
rate
|
|
33.0
percent
|
1 Net of interest income
The company expects investment spending in 2012 will total
approximately $850 million to $950 million,
including approximately $100 million for
maintenance capital spending. Investment spending also includes other
capital expenditures (including property acquisitions), new mezzanine
financing and mortgage notes, contract acquisition costs (including the
$210 million payment associated
with the Gaylord transaction), and equity and other investments.
Assuming this level of investment spending, approximately $1.1 billion could be returned to shareholders
through share repurchases and dividends.
Based upon the assumptions above, the company expects full
year 2012 EBITDA will total $1,129 million to
$1,149 million, a 14 to 16 percent increase over the prior
year's adjusted EBITDA. Adjusted EBITDA for full year 2011 totaled $992 million and is shown on page A-10.
The company will report its 2013 results on a calendar basis,
with fiscal quarters ending on March 31,
June 30, September
30 and December 31. Prior year periods will not be restated or
reported on a pro forma basis for the change in calendar.
Marriott International, Inc. (NYSE: MAR) will conduct its
quarterly earnings review for the investment community and news media
on Thursday, October 4, 2012 at 10 a.m. Eastern Time (ET). The conference call
will be webcast simultaneously via Marriott's investor relations
website at http://www.marriott.com/investor,
click the "Recent and Upcoming Events" tab and click on the quarterly
conference call link. A replay will be available at that same website
until October 4, 2013.
The telephone dial-in number for the conference call is
706-679-3455 and the conference ID is 24533249. A telephone replay of
the conference call will be available from 1
p.m. ET, Thursday, October 4, 2012
until 8 p.m. ET, Thursday,
October 11, 2012. To access the replay, call 404-537-3406. The
conference ID for the recording is 24533249.
Note on forward-looking statements : This press
release and accompanying schedules contain "forward-looking statements"
within the meaning of federal securities laws, including REVPAR, profit
margin and earnings trends, estimates and assumptions; the number of
lodging properties we expect to add to or remove from our system in the
future; our expectations about investment spending; and similar
statements concerning anticipated future events and expectations that
are not historical facts. We caution you that these statements are not
guarantees of future performance and are subject to numerous risks and
uncertainties, including those we identify below and other risk factors
that we identify in our most recent quarterly report on Form 10-Q.
Risks that could affect forward-looking statements in this press
release include changes in market conditions; the continuation and pace
of the economic recovery; supply and demand changes for hotel rooms;
competitive conditions in the lodging industry; relationships with
clients and property owners; and the availability of capital to finance
hotel growth and refurbishment. Any of these factors could cause actual
results to differ materially from the expectations we express or imply
in this press release. We make these forward-looking statements as of October 3, 2012. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
Marriott International, Inc. (NYSE: MAR) is a leading
lodging company based in Bethesda, Maryland,
USA with more than 3,700 properties in 74 countries and territories and
reported revenues of over $12 billion in
fiscal year 2011. The company operates and franchises hotels and
licenses vacation ownership resorts under 18 brands, including Marriott
Hotels & Resorts, The Ritz-Carlton, JW Marriott,
Bulgari, EDITION, Renaissance, Gaylord Hotels,
Autograph Collection, AC Hotels by Marriott, Courtyard,
Fairfield Inn & Suites, SpringHill Suites, Residence Inn,
TownePlace Suites, Marriott Executive Apartments, Marriott
Vacation Club, Grand Residences by Marriott, and The
Ritz-Carlton Destination Club. There are approximately 300,000
employees at headquarters, managed and franchised properties. Marriott
is consistently recognized as a top employer and for its superior
business operations, which it conducts based on five core values: put
people first, pursue excellence, embrace change, act with integrity,
and serve our world. For more information or reservations, please visit
our website at www.marriott.com,
and for the latest company news, visit www.marriottnewscenter.com.
IRPR#1
Tables follow
MARRIOTT
INTERNATIONAL, INC
|
PRESS
RELEASE SCHEDULES
|
QUARTER
3, 2012
|
TABLE
OF CONTENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
A-1
|
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging Products
|
|
|
|
|
|
|
|
|
|
A-4
|
|
|
|
|
|
|
|
|
|
|
|
Key
Lodging Statistics
|
|
|
|
|
|
|
|
|
|
A-5
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
A-9
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
and Adjusted EBITDA Full Year Forecast
|
|
|
|
|
|
A-10
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Operating Income Margin and EBITDA Margin Excluding Adjusted Reimbursed
Costs
|
|
A-11
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures
|
|
|
|
|
|
|
|
|
A-12
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
THIRD
QUARTER 2012 AND 2011
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12
Weeks Ended
September
7, 2012
|
|
As
Reported
12 Weeks Ended
September 9, 2011
|
Timeshare
Spin-off
Adjustments 11
|
Other
Charges
|
As
Adjusted
12 Weeks Ended
September 9, 2011**
|
|
Percent
Better (Worse)
2012 vs.
Adjusted
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Base
management fees
|
$ 134
|
|
$ 136
|
$ (16)
|
$ -
|
$ 120
|
|
12
|
Franchise
fees
|
149
|
|
124
|
15
|
-
|
139
|
|
7
|
Incentive
management fees
|
36
|
|
29
|
-
|
-
|
29
|
|
24
|
Owned,
leased, corporate housing
and
other revenue 1
|
200
|
|
254
|
-
|
-
|
254
|
|
(21)
|
Timeshare
sales and services 2
|
-
|
|
286
|
(286)
|
-
|
-
|
|
-
|
Cost
reimbursements 3
|
2,210
|
|
2,045
|
(68)
|
-
|
1,977
|
|
12
|
Total Revenues
|
2,729
|
|
2,874
|
(355)
|
-
|
2,519
|
|
8
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct 4
|
174
|
|
219
|
-
|
-
|
219
|
|
21
|
Timeshare
- direct
|
-
|
|
250
|
(250)
|
-
|
-
|
|
-
|
Timeshare
strategy - impairment charges 5
|
-
|
|
324
|
(324)
|
-
|
-
|
|
-
|
Reimbursed
costs
|
2,210
|
|
2,045
|
(68)
|
-
|
1,977
|
|
(12)
|
General,
administrative and other 6
|
132
|
|
180
|
(27)
|
(10)
|
143
|
|
8
|
Total Expenses
|
2,516
|
|
3,018
|
(669)
|
(10)
|
2,339
|
|
(8)
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME (LOSS)
|
213
|
|
(144)
|
314
|
10
|
180
|
|
18
|
|
|
|
|
|
|
|
|
|
Gains
(losses) and other income 7
|
36
|
|
(16)
|
1
|
18
|
3
|
|
1,100
|
Interest
expense
|
(29)
|
|
(39)
|
7
|
-
|
(32)
|
|
9
|
Interest
income
|
3
|
|
2
|
3
|
-
|
5
|
|
(40)
|
Equity
in losses 8
|
(1)
|
|
(2)
|
(4)
|
-
|
(6)
|
|
83
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
222
|
|
(199)
|
321
|
28
|
150
|
|
48
|
|
|
|
|
|
|
|
|
|
(Provision)
benefit for income taxes
|
(79)
|
|
20
|
(57)
|
(11)
|
(48)
|
|
(65)
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
$ 143
|
|
$ (179)
|
$ 264
|
$ 17
|
$ 102
|
|
40
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
Earnings (losses) per share 9
|
$ 0.45
|
|
$
(0.52)
|
$ 0.76
|
$ 0.05
|
$ 0.30
|
|
50
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
Earnings (losses) per share 9
|
$ 0.44
|
|
$
(0.52)
|
$ 0.76
|
$ 0.05
|
$ 0.29
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
319.4
|
|
345.4
|
345.4
|
345.4
|
345.4
|
|
|
Diluted
Shares 10
|
329.3
|
|
345.4
|
345.4
|
345.4
|
356.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
page A-3 for footnote references.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-1
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
THIRD
QUARTER YEAR-TO-DATE 2012 AND 2011
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
As
Reported
36 Weeks Ended
September 7, 2012
|
|
As
Reported
36 Weeks Ended
September 9, 2011
|
Timeshare
Spin-off
Adjustments 11
|
Other
Charges
|
As
Adjusted
36 Weeks Ended
September 9, 2011**
|
|
Percent
Better (Worse)
2012 vs. Adjusted
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Base
management fees
|
$ 399
|
|
$ 419
|
$ (44)
|
$ -
|
$ 375
|
|
6
|
Franchise
fees
|
420
|
|
347
|
44
|
-
|
391
|
|
7
|
Incentive
management fees
|
142
|
|
121
|
-
|
-
|
121
|
|
17
|
Owned,
leased, corporate housing
and
other revenue 1
|
681
|
|
727
|
-
|
-
|
727
|
|
(6)
|
Timeshare
sales and services 2
|
-
|
|
850
|
(850)
|
-
|
-
|
|
-
|
Cost
reimbursements 3
|
6,415
|
|
6,160
|
(210)
|
-
|
5,950
|
|
8
|
Total Revenues
|
8,057
|
|
8,624
|
(1,060)
|
-
|
7,564
|
|
7
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct 4
|
572
|
|
643
|
-
|
-
|
643
|
|
11
|
Timeshare
- direct
|
-
|
|
720
|
(720)
|
-
|
-
|
|
-
|
Timeshare
strategy - impairment charges 5
|
-
|
|
324
|
(324)
|
-
|
-
|
|
-
|
Reimbursed
costs
|
6,415
|
|
6,160
|
(210)
|
-
|
5,950
|
|
(8)
|
General,
administrative and other 6
|
439
|
|
498
|
(64)
|
(10)
|
424
|
|
(4)
|
Total Expenses
|
7,426
|
|
8,345
|
(1,318)
|
(10)
|
7,017
|
|
(6)
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
631
|
|
279
|
258
|
10
|
547
|
|
15
|
|
|
|
|
|
|
|
|
|
Gains
(losses) and other income 7
|
43
|
|
(11)
|
-
|
18
|
7
|
|
514
|
Interest
expense
|
(96)
|
|
(117)
|
24
|
-
|
(93)
|
|
(3)
|
Interest
income
|
10
|
|
9
|
8
|
-
|
17
|
|
(41)
|
Equity
in losses 8
|
(10)
|
|
(6)
|
(4)
|
-
|
(10)
|
|
-
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES
|
578
|
|
154
|
286
|
28
|
468
|
|
24
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
(188)
|
|
(97)
|
(44)
|
(11)
|
(152)
|
|
(24)
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$ 390
|
|
$ 57
|
$ 242
|
$ 17
|
$ 316
|
|
23
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER SHARE - Basic
|
|
|
|
|
|
|
|
|
Earnings per share 9
|
$ 1.19
|
|
$ 0.16
|
$ 0.68
|
$ 0.05
|
$ 0.89
|
|
34
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
Earnings per share 9
|
$ 1.16
|
|
$ 0.15
|
$ 0.65
|
$ 0.05
|
$ 0.85
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
327.0
|
|
356.5
|
356.5
|
356.5
|
356.5
|
|
|
Diluted
Shares
|
337.5
|
|
369.8
|
369.8
|
369.8
|
369.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
page A-3 for footnote references.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-2
|
MARRIOTT INTERNATIONAL, INC.
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
|
(in millions, except per share amounts)
|
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-12 and A-13 for
additional information about our reasons for providing these
alternative financial measures and limitations on their use.
|
1 –
|
Owned,
leased, corporate housing and other revenue includes revenue from
the properties we own or lease, termination fees, branding fees, other
revenue and revenue from our former
corporate housing business through the sale date of April 30, 2012.
|
2 –
|
Timeshare
sales and services includes total timeshare revenue except for
base management fees and cost reimbursements.
|
3 –
|
Cost
reimbursements include reimbursements from properties for
Marriott-funded operating expenses.
|
4 –
|
Owned,
leased and corporate housing - direct expenses include operating
expenses related to our owned or leased hotels, including lease
payments, pre-opening expenses and depreciation, plus expenses related to our former corporate
housing business through the sale date of April 30, 2012.
|
5 –
|
Reflects the following 2011 third quarter impairments: inventory $256
million, land $62 million, and other impairments $6 million, all of
which are allocated to the
Timeshare segment.
|
6 –
|
General,
administrative and other expenses include the overhead costs
allocated to our segments, and our corporate overhead costs and general
expenses.
|
7 –
|
Gains
(losses) and other income includes gains and losses on the sale of
real estate, note sales or repayments (except timeshare note
securitizations), the sale or other-than-temporary impairment of joint ventures and investments, debt
extinguishments, and income from cost method joint ventures.
|
8 –
|
Equity
in losses includes our equity in earnings or losses of
unconsolidated equity method joint ventures.
|
9 –
|
Earnings
per share plus adjustment items may not equal earnings per share as
adjusted due to rounding.
|
10 –
|
Basic
and fully diluted weighted average shares outstanding used to calculate
earnings per share for the period in which we had a loss are the same
because inclusion of additional
equivalents would be anti-dilutive.
|
11 –
|
We
present our adjusted consolidated statements of income as if the
Timeshare spin-off had occurred on January 1, 2011.
|
|
|
A-3
|
MARRIOTT
INTERNATIONAL, INC.
|
TOTAL
LODGING PRODUCTS 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of Properties
|
|
Number
of Rooms/Suites
|
Brand
|
|
September
7,
2012
|
September
9,
2011
|
vs.
September 9,
2011
|
|
September
7,
2012
|
September
9,
2011
|
vs.
September 9,
2011
|
|
|
|
|
|
|
|
|
|
Domestic
Full-Service
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
350
|
355
|
(5)
|
|
141,178
|
143,579
|
(2,401)
|
Renaissance Hotels
|
|
79
|
78
|
1
|
|
28,597
|
28,446
|
151
|
Autograph Collection
|
|
22
|
16
|
6
|
|
6,298
|
4,860
|
1,438
|
Domestic
Limited-Service
|
|
|
|
|
|
|
|
|
Courtyard
|
|
812
|
802
|
10
|
|
114,173
|
112,578
|
1,595
|
Fairfield Inn & Suites
|
|
677
|
663
|
14
|
|
61,326
|
60,010
|
1,316
|
SpringHill Suites
|
|
296
|
283
|
13
|
|
34,671
|
33,234
|
1,437
|
Residence Inn
|
|
601
|
597
|
4
|
|
72,514
|
72,067
|
447
|
TownePlace Suites
|
|
205
|
197
|
8
|
|
20,499
|
19,770
|
729
|
International
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
202
|
202
|
-
|
|
62,133
|
62,404
|
(271)
|
Renaissance Hotels
|
|
76
|
74
|
2
|
|
24,596
|
23,740
|
856
|
Autograph Collection
|
|
6
|
4
|
2
|
|
676
|
496
|
180
|
Courtyard
|
|
109
|
104
|
5
|
|
21,318
|
20,496
|
822
|
Fairfield Inn & Suites
|
|
13
|
11
|
2
|
|
1,568
|
1,361
|
207
|
SpringHill Suites
|
|
2
|
2
|
-
|
|
299
|
299
|
-
|
Residence Inn
|
|
23
|
18
|
5
|
|
3,229
|
2,559
|
670
|
TownePlace Suites
|
|
2
|
1
|
1
|
|
278
|
105
|
173
|
Marriott Executive Apartments
|
|
24
|
22
|
2
|
|
3,846
|
3,562
|
284
|
Luxury
|
|
|
|
|
|
|
|
|
The
Ritz-Carlton - Domestic
|
|
39
|
39
|
-
|
|
11,587
|
11,587
|
-
|
The
Ritz-Carlton - International
|
|
41
|
38
|
3
|
|
12,295
|
11,503
|
792
|
Bulgari Hotels & Resorts
|
|
3
|
2
|
1
|
|
202
|
117
|
85
|
Edition
|
|
1
|
1
|
-
|
|
78
|
78
|
-
|
The
Ritz-Carlton Residential
|
|
35
|
31
|
4
|
|
3,927
|
3,780
|
147
|
The
Ritz-Carlton Serviced Apartments
|
|
4
|
4
|
-
|
|
579
|
579
|
-
|
Unconsolidated
Joint Ventures
|
|
|
|
|
|
|
|
|
AC
Hotels by Marriott
|
|
79
|
75
|
4
|
|
8,736
|
7,944
|
792
|
Autograph Collection
|
|
5
|
4
|
1
|
|
348
|
277
|
71
|
Timeshare
2
|
|
64
|
71
|
(7)
|
|
12,932
|
13,018
|
(86)
|
|
|
|
|
|
|
|
|
|
Total
|
|
3,770
|
3,694
|
76
|
|
647,883
|
638,449
|
9,434
|
|
|
|
|
|
|
|
|
|
1
|
Total
Lodging Products as of September 9, 2011 does not include 2,165
ExecuStay corporate housing rental units. We had no ExecuStay corporate
housing rental units as of September
7, 2012 because we completed the sale of our corporate housing business
during the second quarter of 2012.
|
2
|
Reported
2012 Timeshare properties and rooms/suites are not comparable to 2011
data due to a change in reporting methodology as a result of the
Timeshare spin-off.
|
|
|
A-4
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Company-Operated International Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended August 31, 2012 and August 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$126.98
|
6.7%
|
|
72.8%
|
0.9%
|
pts.
|
|
$174.36
|
5.4%
|
Europe
|
|
$131.22
|
4.9%
|
|
77.4%
|
-0.6%
|
pts.
|
|
$169.46
|
5.8%
|
Middle
East & Africa
|
|
$71.30
|
12.2%
|
|
58.8%
|
3.8%
|
pts.
|
|
$121.19
|
5.0%
|
Asia
Pacific
|
|
$90.61
|
7.8%
|
|
71.8%
|
1.8%
|
pts.
|
|
$126.19
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite 2
|
|
$110.95
|
6.4%
|
|
73.3%
|
0.8%
|
pts.
|
|
$151.44
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury 3
|
|
$195.74
|
5.5%
|
|
63.2%
|
1.8%
|
pts.
|
|
$309.85
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International 4
|
|
$120.41
|
6.2%
|
|
72.1%
|
0.9%
|
pts.
|
|
$166.93
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
5
|
|
$114.64
|
6.7%
|
|
74.0%
|
1.1%
|
pts.
|
|
$155.02
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended August 31, 2012 and August 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$111.30
|
3.0%
|
|
70.4%
|
0.6%
|
pts.
|
|
$158.17
|
2.1%
|
Europe
|
|
$125.53
|
3.8%
|
|
76.8%
|
-0.7%
|
pts.
|
|
$163.37
|
4.7%
|
Middle
East & Africa
|
|
$70.36
|
13.0%
|
|
59.3%
|
4.4%
|
pts.
|
|
$118.74
|
4.7%
|
Asia
Pacific
|
|
$97.82
|
6.8%
|
|
71.9%
|
1.9%
|
pts.
|
|
$136.11
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite 2
|
|
$110.19
|
4.9%
|
|
72.9%
|
0.7%
|
pts.
|
|
$151.24
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury 3
|
|
$195.74
|
5.5%
|
|
63.2%
|
1.8%
|
pts.
|
|
$309.85
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International 4
|
|
$117.83
|
5.0%
|
|
72.0%
|
0.8%
|
pts.
|
|
$163.67
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
6
|
|
$100.40
|
6.0%
|
|
74.6%
|
0.9%
|
pts.
|
|
$134.59
|
4.7%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
We
report financial results on a period basis and international statistics
on a monthly basis. Statistics are in constant
dollars for June through August. International includes properties
located outside the United States
and Canada, except for Worldwide which also includes the United States.
|
2
|
Regional
information includes the Marriott Hotels & Resorts, Renaissance
Hotels and Courtyard brands.
|
3
|
International
Luxury includes The Ritz-Carlton properties outside of the United
States and Canada and Bulgari
Hotels & Resorts.
|
4
|
Includes
Regional Composite and International Luxury.
|
5
|
Includes
international statistics for the three calendar months ended August 31,
2012 and August 31, 2011, and the
United States statistics for the twelve weeks ended September 7, 2012
and September 9, 2011. Includes the
Marriott Hotels & Resorts, Renaissance Hotels, The Ritz-Carlton,
Bulgari Hotels & Resorts, Residence
Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and
SpringHill Suites brands.
|
6
|
In
addition to the brands listed in Note 5, also includes the Autograph
Collection brand.
|
|
|
A-5
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Company-Operated International Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eight
Months Ended August 31, 2012 and August 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$142.93
|
8.5%
|
|
74.2%
|
1.5%
|
pts.
|
|
$192.74
|
6.3%
|
Europe
|
|
$122.47
|
3.6%
|
|
72.1%
|
-0.4%
|
pts.
|
|
$169.96
|
4.1%
|
Middle
East & Africa
|
|
$78.49
|
8.1%
|
|
59.5%
|
5.1%
|
pts.
|
|
$131.96
|
-1.1%
|
Asia
Pacific
|
|
$94.63
|
10.8%
|
|
71.9%
|
4.4%
|
pts.
|
|
$131.55
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite 2
|
|
$111.40
|
6.8%
|
|
71.3%
|
2.0%
|
pts.
|
|
$156.32
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury 3
|
|
$215.43
|
6.8%
|
|
63.0%
|
0.9%
|
pts.
|
|
$342.23
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International 4
|
|
$123.01
|
6.8%
|
|
70.3%
|
1.9%
|
pts.
|
|
$174.88
|
3.9%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
5
|
|
$115.86
|
6.5%
|
|
72.1%
|
1.6%
|
pts.
|
|
$160.77
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eight
Months Ended August 31, 2012 and August 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$124.14
|
5.9%
|
|
70.9%
|
1.0%
|
pts.
|
|
$175.00
|
4.3%
|
Europe
|
|
$117.07
|
3.3%
|
|
70.9%
|
-0.2%
|
pts.
|
|
$165.07
|
3.7%
|
Middle
East & Africa
|
|
$76.93
|
8.8%
|
|
59.8%
|
5.3%
|
pts.
|
|
$128.63
|
-0.9%
|
Asia
Pacific
|
|
$99.49
|
10.1%
|
|
71.7%
|
4.3%
|
pts.
|
|
$138.80
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite 2
|
|
$109.81
|
6.0%
|
|
70.4%
|
1.8%
|
pts.
|
|
$155.99
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury 3
|
|
$215.43
|
6.8%
|
|
63.0%
|
0.9%
|
pts.
|
|
$342.23
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International 4
|
|
$119.25
|
6.1%
|
|
69.7%
|
1.8%
|
pts.
|
|
$171.02
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
6
|
|
$97.89
|
6.5%
|
|
71.7%
|
1.6%
|
pts.
|
|
$136.51
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
We
report financial results on a period basis and international statistics
on a monthly basis. Statistics are in constant
dollars for January through August. International includes properties
located outside the United States
and Canada, except for Worldwide which also includes the United States.
|
2
|
Regional
information includes the Marriott Hotels & Resorts, Renaissance
Hotels and Courtyard brands.
|
3
|
International
Luxury includes The Ritz-Carlton properties outside of the United
States and Canada and Bulgari Hotels
& Resorts.
|
4
|
Includes
Regional Composite and International Luxury.
|
5
|
Includes
international statistics for the eight calendar months ended August 31,
2012 and August 31, 2011, and the
United States statistics for the thirty six weeks ended September 7,
2012 and September 9, 2011. Includes the
Marriott Hotels & Resorts, Renaissance Hotels, The Ritz-Carlton,
Bulgari Hotels & Resorts, Residence
Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and
SpringHill Suites brands.
|
6
|
In
addition to the brands listed in Note 5, also includes the Autograph
Collection brand.
|
|
A-6
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Company-Operated North American Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Weeks Ended September 7, 2012 and September 9, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$122.60
|
7.2%
|
|
75.5%
|
1.8%
|
pts.
|
|
$162.27
|
4.7%
|
Renaissance
Hotels
|
|
$116.74
|
8.8%
|
|
75.3%
|
2.1%
|
pts.
|
|
$155.07
|
5.7%
|
Composite
North American Full-Service
|
|
$121.75
|
7.4%
|
|
75.5%
|
1.8%
|
pts.
|
|
$161.23
|
4.9%
|
The
Ritz-Carlton2
|
|
$204.30
|
7.2%
|
|
71.2%
|
1.4%
|
pts.
|
|
$286.85
|
5.1%
|
Composite
North American Full-Service & Luxury
|
$130.83
|
7.4%
|
|
75.0%
|
1.8%
|
pts.
|
|
$174.36
|
4.9%
|
Residence
Inn
|
|
$100.05
|
6.8%
|
|
80.4%
|
0.9%
|
pts.
|
|
$124.37
|
5.6%
|
Courtyard
|
|
$82.46
|
5.2%
|
|
71.3%
|
-0.4%
|
pts.
|
|
$115.70
|
5.7%
|
TownePlace
Suites
|
|
$66.65
|
4.0%
|
|
79.1%
|
-0.4%
|
pts.
|
|
$84.30
|
4.6%
|
SpringHill
Suites
|
|
$75.31
|
12.1%
|
|
75.8%
|
6.1%
|
pts.
|
|
$99.38
|
3.1%
|
Composite
North American Limited-Service
|
|
$86.03
|
6.1%
|
|
74.4%
|
0.4%
|
pts.
|
|
$115.60
|
5.5%
|
Composite
- All
|
|
$112.02
|
7.0%
|
|
74.8%
|
1.2%
|
pts.
|
|
$149.80
|
5.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Weeks Ended September 7, 2012 and September 9, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$109.89
|
6.7%
|
|
73.0%
|
1.6%
|
pts.
|
|
$150.51
|
4.4%
|
Renaissance
Hotels
|
|
$104.59
|
7.0%
|
|
73.5%
|
1.2%
|
pts.
|
|
$142.27
|
5.3%
|
Autograph
Collection Hotels2
|
|
$132.12
|
5.2%
|
|
77.3%
|
3.2%
|
pts.
|
|
$170.94
|
0.9%
|
Composite
North American Full-Service
|
|
$109.28
|
6.7%
|
|
73.1%
|
1.5%
|
pts.
|
|
$149.43
|
4.5%
|
The
Ritz-Carlton2
|
|
$204.30
|
7.2%
|
|
71.2%
|
1.4%
|
pts.
|
|
$286.85
|
5.1%
|
Composite
North American Full-Service & Luxury
|
$115.41
|
6.8%
|
|
73.0%
|
1.5%
|
pts.
|
|
$158.07
|
4.6%
|
Residence
Inn
|
|
$101.45
|
5.3%
|
|
82.4%
|
0.3%
|
pts.
|
|
$123.12
|
4.9%
|
Courtyard
|
|
$87.72
|
5.9%
|
|
73.7%
|
0.6%
|
pts.
|
|
$119.00
|
5.1%
|
Fairfield
Inn & Suites
|
|
$71.51
|
6.3%
|
|
73.7%
|
0.8%
|
pts.
|
|
$96.97
|
5.1%
|
TownePlace
Suites
|
|
$70.63
|
4.9%
|
|
78.2%
|
-0.4%
|
pts.
|
|
$90.26
|
5.5%
|
SpringHill
Suites
|
|
$80.22
|
7.5%
|
|
75.9%
|
2.1%
|
pts.
|
|
$105.67
|
4.6%
|
Composite
North American Limited-Service
|
|
$85.95
|
5.9%
|
|
76.4%
|
0.7%
|
pts.
|
|
$112.54
|
5.0%
|
Composite
- All
|
|
$96.74
|
6.3%
|
|
75.1%
|
1.0%
|
pts.
|
|
$128.73
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Statistics
include only properties located in the United States.
|
2
|
Statistics
for The Ritz-Carlton and Autograph Collection are for June through
August.
|
|
|
A-7
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Company-Operated North American Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-six
Weeks Ended September 7, 2012 and September 9, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$125.10
|
6.5%
|
|
73.9%
|
2.1%
|
pts.
|
|
$169.31
|
3.5%
|
Renaissance
Hotels
|
|
$124.33
|
8.6%
|
|
75.1%
|
2.8%
|
pts.
|
|
$165.65
|
4.5%
|
Composite
North American Full-Service
|
|
$124.99
|
6.8%
|
|
74.1%
|
2.2%
|
pts.
|
|
$168.77
|
3.6%
|
The
Ritz-Carlton2
|
|
$228.37
|
6.9%
|
|
71.7%
|
0.8%
|
pts.
|
|
$318.63
|
5.7%
|
Composite
North American Full-Service & Luxury
|
$135.21
|
6.9%
|
|
73.8%
|
2.1%
|
pts.
|
|
$183.15
|
3.8%
|
Residence
Inn
|
|
$94.42
|
4.6%
|
|
76.4%
|
0.1%
|
pts.
|
|
$123.56
|
4.6%
|
Courtyard
|
|
$80.05
|
5.5%
|
|
68.9%
|
0.5%
|
pts.
|
|
$116.27
|
4.8%
|
TownePlace
Suites
|
|
$60.46
|
7.4%
|
|
72.9%
|
1.2%
|
pts.
|
|
$82.92
|
5.7%
|
SpringHill
Suites
|
|
$74.18
|
7.5%
|
|
71.4%
|
3.3%
|
pts.
|
|
$103.87
|
2.6%
|
Composite
North American Limited-Service
|
|
$82.72
|
5.5%
|
|
71.3%
|
0.6%
|
pts.
|
|
$115.97
|
4.5%
|
Composite
- All
|
|
$112.95
|
6.4%
|
|
72.8%
|
1.5%
|
pts.
|
|
$155.23
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-six
Weeks Ended September 7, 2012 and September 9, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$111.07
|
6.7%
|
|
71.2%
|
1.9%
|
pts.
|
|
$156.01
|
3.8%
|
Renaissance
Hotels
|
|
$107.92
|
7.2%
|
|
72.3%
|
1.6%
|
pts.
|
|
$149.28
|
4.8%
|
Autograph
Collection Hotels2
|
|
$131.61
|
5.9%
|
|
76.1%
|
3.3%
|
pts.
|
|
$173.05
|
1.3%
|
Composite
North American Full-Service
|
|
$110.76
|
6.7%
|
|
71.4%
|
1.9%
|
pts.
|
|
$155.10
|
3.9%
|
The
Ritz-Carlton2
|
|
$228.37
|
6.9%
|
|
71.7%
|
0.8%
|
pts.
|
|
$318.63
|
5.7%
|
Composite
North American Full-Service & Luxury
|
$117.53
|
6.8%
|
|
71.4%
|
1.8%
|
pts.
|
|
$164.55
|
4.0%
|
Residence
Inn
|
|
$94.36
|
4.8%
|
|
78.2%
|
0.5%
|
pts.
|
|
$120.64
|
4.2%
|
Courtyard
|
|
$83.38
|
6.5%
|
|
70.5%
|
1.3%
|
pts.
|
|
$118.33
|
4.5%
|
Fairfield
Inn & Suites
|
|
$64.82
|
8.1%
|
|
68.7%
|
2.0%
|
pts.
|
|
$94.28
|
4.9%
|
TownePlace
Suites
|
|
$66.10
|
6.8%
|
|
74.1%
|
1.0%
|
pts.
|
|
$89.25
|
5.3%
|
SpringHill
Suites
|
|
$75.40
|
7.9%
|
|
72.3%
|
2.7%
|
pts.
|
|
$104.32
|
3.9%
|
Composite
North American Limited-Service
|
|
$80.40
|
6.4%
|
|
72.4%
|
1.4%
|
pts.
|
|
$110.98
|
4.4%
|
Composite
- All
|
|
$93.90
|
6.6%
|
|
72.1%
|
1.5%
|
pts.
|
|
$130.28
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Statistics
include only properties located in the United States.
|
2
|
Statistics
for The Ritz-Carlton and Autograph Collection are for January through
August.
|
|
|
A-8
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
EBITDA
AND ADJUSTED EBITDA
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2012
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Total
Year to Date
|
|
|
Net
Income
|
$ 104
|
|
$ 143
|
|
$ 143
|
|
$ 390
|
|
|
Interest
expense
|
33
|
|
34
|
|
29
|
|
96
|
|
|
Tax
provision
|
43
|
|
66
|
|
79
|
|
188
|
|
|
Depreciation
and amortization
|
29
|
|
38
|
|
33
|
|
100
|
|
|
Less:
Depreciation reimbursed by third-party owners
|
(4)
|
|
(4)
|
|
(3)
|
|
(11)
|
|
|
Interest
expense from unconsolidated joint ventures
|
4
|
|
4
|
|
1
|
|
9
|
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
8
|
|
2
|
|
16
|
|
|
EBITDA
**
|
$
215
|
|
$
289
|
|
$
284
|
|
$
788
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
over 2011 Adjusted EBITDA
|
9%
|
|
13%
|
|
27%
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2011
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
Net
Income (loss)
|
$ 101
|
|
$ 135
|
|
$ (179)
|
|
$ 141
|
|
$ 198
|
Interest
expense
|
41
|
|
37
|
|
39
|
|
47
|
|
164
|
Tax
provision (benefit)
|
51
|
|
66
|
|
(20)
|
|
61
|
|
158
|
Depreciation
and amortization
|
35
|
|
41
|
|
40
|
|
52
|
|
168
|
Less:
Depreciation reimbursed by third-party owners
|
(4)
|
|
(3)
|
|
(4)
|
|
(4)
|
|
(15)
|
Interest
expense from unconsolidated joint ventures
|
4
|
|
4
|
|
5
|
|
5
|
|
18
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
7
|
|
7
|
|
10
|
|
30
|
EBITDA
**
|
234
|
|
287
|
|
(112)
|
|
312
|
|
721
|
|
|
|
|
|
|
|
|
|
|
Timeshare
Spin-off Adjustments
|
|
|
|
|
|
|
|
|
|
Net
Income
|
(13)
|
|
(9)
|
|
264
|
|
18
|
|
260
|
Interest
expense
|
(9)
|
|
(8)
|
|
(7)
|
|
(5)
|
|
(29)
|
Tax
provision (benefit)
|
(8)
|
|
(5)
|
|
57
|
|
(4)
|
|
40
|
Depreciation
and amortization
|
(7)
|
|
(9)
|
|
(7)
|
|
(5)
|
|
(28)
|
Total
Timeshare Spin-off Adjustments
|
(37)
|
|
(31)
|
|
307
|
|
4
|
|
243
|
|
|
|
|
|
|
|
|
|
|
Other
charges
|
-
|
|
-
|
|
28
|
|
-
|
|
28
|
Total
other charges
|
-
|
|
-
|
|
28
|
|
-
|
|
28
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA **
|
$
197
|
|
$
256
|
|
$
223
|
|
$
316
|
|
$
992
|
|
|
|
|
|
|
|
|
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-12 and A-13 for
additional information about our reasons for providing these
alternative financial measures and
the limitations on their use.
|
|
A-9
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
FULL
YEAR EBITDA AND ADJUSTED EBITDA
|
FORECASTED
2012
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
Estimated
EBITDA
Full Year 2012
|
|
As
Adjusted
52 Weeks Ended
December 30, 2011 **
|
|
Net
Income
|
$
560
|
|
$
573
|
|
$
475
|
|
Interest
expense
|
135
|
|
135
|
|
135
|
|
Tax
provision
|
274
|
|
281
|
|
209
|
|
Depreciation
and amortization
|
145
|
|
145
|
|
140
|
|
Less:
Depreciation reimbursed by third-party owners
|
(15)
|
|
(15)
|
|
(15)
|
|
Interest
expense from unconsolidated joint ventures
|
10
|
|
10
|
|
18
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
20
|
|
20
|
|
30
|
|
EBITDA
**
|
$
1,129
|
|
$
1,149
|
|
$
992
|
|
|
|
|
|
|
|
|
Increase
over 2011 Adjusted EBITDA
|
14%
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-12 and A-13 for
additional information about our reasons for providing these alternative financial measures and the
limitations on their use.
|
|
|
A-10
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
OPERATING INCOME AND EBITDA MARGIN EXCLUDING ADJUSTED REIMBURSED COSTS
|
|
THIRD
QUARTER 2012 AND 2011
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
OPERATING INCOME MARGIN
|
Third
Quarter
2012
|
|
Third
Quarter
2011
|
|
Operating
income (loss)
|
$ 213
|
|
$ (144)
|
|
Timeshare
spin-off adjustments, operating income impact
|
-
|
|
314
|
|
Add
Back: Other charges, operating income impact
|
-
|
|
10
|
|
Operating
income, as adjusted **
|
$
213
|
|
$
180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues as reported
|
$ 2,729
|
|
$ 2,874
|
|
Timeshare
spin-off adjustments
|
-
|
|
(355)
|
|
Total
revenues, as adjusted **
|
2,729
|
|
2,519
|
|
Less:
adjusted cost reimbursements **
|
(2,210)
|
|
(1,977)
|
|
Total
revenues as adjusted and excluding cost reimbursements **
|
$
519
|
|
$
542
|
|
|
|
|
|
|
|
Adjusted
operating income margin, excluding cost reimbursements **
|
41%
|
|
33%
|
|
|
|
|
|
|
|
EBITDA
**
|
$
284
|
|
|
|
|
|
|
|
|
|
EBITDA
Margin **
|
55%
|
|
|
|
|
|
|
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-12 and A-13 for
additional information
about
our reasons for providing these alternative financial measures and the
limitations on their use.
|
|
|
A-11
|
MARRIOTT INTERNATIONAL, INC.
|
NON-GAAP FINANCIAL MEASURES
|
|
In our press release and schedules, and on the
related conference call, we report certain financial measures that are
not prescribed or authorized by United States generally accepted
accounting principles ("GAAP"). We discuss management's reasons for
reporting these non-GAAP measures below, and the press release
schedules reconcile the most directly comparable GAAP measure to each
non-GAAP measure that we refer to (identified by a double asterisk on
the preceding pages). Although management evaluates and presents these
non-GAAP measures for the reasons described below, please be aware that
these non-GAAP measures have limitations and should not be considered
in isolation or as a substitute for revenue, operating income, income
from continuing operations, net income, earnings per share or any other
comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP
financial measures differently than measures with the same or similar
names that other companies report, and as a result, the non-GAAP
measures we report may not be comparable to those reported by others.
|
|
Adjusted Measures that Reflect the Timeshare
Spin-off as if it had Occurred on the First Day of 2011. ("Timeshare Spin-off Adjustments"). On November
21, 2011 we completed a spin-off of our timeshare operations and
timeshare development business through a special tax-free dividend to
our shareholders of all of the issued and outstanding common stock of
our wholly owned subsidiary Marriott Vacations Worldwide Corporation
("MVW").
|
|
Because of our significant continuing involvement
in MVW's ongoing operations (by virtue of our license and other
agreements with MVW), we continue to include our former Timeshare
segment's historical financial results for periods before the spin-off
date in our historical financial results as a component of continuing
operations. Under the license agreements we receive license fees
consisting of a fixed annual fee of $50 million (subject to a periodic
inflation adjustment), plus two percent of the gross sales price paid
to MVW for initial developer sales of interests in vacation ownership
units and residential real estate units and one percent of the gross
sales price paid to MVW for resale of interests in vacation ownership
units and residential real estate units, in each case that are
identified with or use the Marriott or Ritz-Carlton marks.
|
|
In order to perform year-over-year comparisons on
a comparable basis, management evaluates non-GAAP measures that, for
certain periods prior to the spin-off date, assume the spin-off had
occurred on the first day of 2011. The Timeshare Spin-off Adjustments
remove the results of our former Timeshare segment, assume payment by
MVW of estimated license fees ($14 million, $15 million, $15 million,
and $16 million for the 2011 first through fourth quarters,
respectively) and remove the unallocated spin-off transaction costs ($1
million, $3 million, $8 million, and $22 million for the 2011 first
through fourth quarters, respectively). We have also
included certain corporate items not previously allocated to our former
Timeshare segment in the Timeshare Spin-off Adjustments. Timeshare Spin-off Adjustments totaled ($21) million pre-tax (($13)
million after-tax), ($14) million pre-tax (($9) million after-tax),
$321 million pre-tax ($264 million after-tax), and $14 million pre-tax
($18 million after-tax) for the 2011 first through fourth quarters,
respectively.
|
|
We provide adjusted measures that reflect
Timeshare Spin-off Adjustments for illustrative and informational
purposes only. These adjusted measures are not necessarily indicative
of, and we do not purport that they represent, what our operating results would have
been had the spin-off actually occurred on the first day of 2011. This
information also does not reflect certain financial and operating
benefits we expect to realize as a result of the spin-off.
|
|
Adjusted Measures That Exclude Other Charges.
Management evaluates
non-GAAP measures that exclude certain 2011 charges because those
non-GAAP measures allow for period-over-period comparisons of our
on-going core operations before the impact of material charges. These
non-GAAP measures also facilitate management's comparison of results
from our on-going operations before material charges with results from
other lodging companies.
|
|
2011 Other Charges. We recorded charges of $28 million pre-tax ($17
million after-tax) in the 2011 third quarter, which included an $18
million other-than-temporary impairment of an investment in marketable
securities (not allocated to any of our segments) recorded in the
"(Losses) gains and other income" caption of our Income Statement and a
$10 million charge related to the impairment of deferred contract
acquisition costs and an accounts receivable reserve, both of which
were associated with a Luxury segment property whose owner filed for
bankruptcy and recorded in the "General, administrative, and other"
caption of our Income Statement.
|
|
A-12
|
MARRIOTT INTERNATIONAL, INC.
|
NON-GAAP FINANCIAL MEASURES (cont.)
|
|
|
Earnings Before Interest Expense, Taxes,
Depreciation and Amortization ("EBITDA") is a financial measure that is not prescribed or
authorized by United States generally accepted accounting principles
("GAAP"), which reflects earnings excluding the impact of interest
expense, provision for income taxes, and depreciation and amortization.
We consider EBITDA to be an indicator of operating performance because
we use it to measure our ability to service debt, fund capital
expenditures, and expand our business. We also use EBITDA, as do
analysts, lenders, investors and others, to evaluate companies because
it excludes certain items that can vary widely across different
industries or among companies within the same industry. For example,
interest expense can be dependent on a company's capital structure,
debt levels and credit ratings. Accordingly, the impact of interest
expense on earnings can vary significantly among companies. The tax
positions of companies can also vary because of their differing
abilities to take advantage of tax benefits and because of the tax
policies of the jurisdictions in which they operate. As a result,
effective tax rates and provision for income taxes can vary
considerably among companies. EBITDA further excludes depreciation and
amortization because companies utilize productive assets of different
ages and use different methods of both acquiring and depreciating
productive assets. These differences can result in considerable
variability in the relative costs of productive assets and the
depreciation and amortization expense among companies.
|
|
We also evaluate Adjusted EBITDA, another non-GAAP
financial measure, as an indicator of operating performance. Our
Adjusted EBITDA reflects the following items, each of which we describe
more fully above: (1) Timeshare Spin-off Adjustments; and (2) an
adjustment for $28 million of other charges for 2011. We use Adjusted
EBITDA to make period-over-period comparisons of our ongoing core
operations before material charges and to facilitate our comparison
of results from our ongoing operations before
material charges with results from other lodging companies.
|
|
EBITDA and Adjusted EBITDA have limitations and
should not be considered in isolation or as substitutes for performance
measures calculated in accordance with GAAP. Both of these non-GAAP
measures exclude certain cash expenses that we are obligated to make.
In addition, other companies in our industry may calculate EBITDA and
Adjusted EBITDA differently than we do or may not calculate them at
all, limiting EBITDA's and Adjusted EBITDA's usefulness as comparative
measures. We provide Adjusted EBITDA
for illustrative and informational purposes only and this measure is
not necessarily indicative of and we do not purport that it represents
what our operating results would have been had the Timeshare spin-off
occurred on the first day of 2011. This information also does not
reflect certain financial and operating benefits we expect to realize
as a result of the spin-off.
|
|
Adjusted Operating Income Margin and EBITDA
Margin Excluding Adjusted Cost Reimbursements. Cost reimbursements revenue represents
reimbursements we receive for costs we incur on behalf of managed and
franchised properties and relates, predominantly, to payroll costs at
managed properties where we are the employer, but also includes
reimbursements for other costs, such as those associated with our
Marriott Rewards and Ritz-Carlton Rewards programs. As we record cost
reimbursements based on the costs we incur with no added markup, this
revenue and related expense has no impact on either our operating
income or net income because cost reimbursements revenue net of
reimbursed costs expense is zero. We consider total revenues as
adjusted for Timeshare Spin-off Adjustments and operating income as
adjusted for the operating income impact of Timeshare Spin-off
Adjustments and Other Charges meaningful for the reasons noted above.
In calculating adjusted operating income margin and EBITDA margin we
consider total revenues as adjusted to further exclude cost
reimbursements and therefore, adjusted operating income margin and
EBITDA margin excluding cost reimbursements to be meaningful metrics as
they represent that portion of revenue, operating income margin, and
EBITDA margin that impacts operating income and net income.
|
|
A-13
|
|