BETHESDA, Md., May 1, 2013 --
FIRST QUARTER HIGHLIGHTS
- First quarter diluted EPS totaled $0.43, a 43 percent increase over prior year
results;
- Operating income increased $51
million in the first quarter to $226
million, including an estimated $23
million increase relating to the change in the fiscal calendar;
- North American comparable company-operated REVPAR
rose 5.8 percent in the first quarter with average daily rate up 5.3
percent;
- On a constant dollar basis, worldwide comparable
systemwide REVPAR rose 4.6 percent in the first quarter, including a
3.8 percent increase in average daily rate;
- At the end of the first quarter, the company's
worldwide pipeline of hotels under construction, awaiting conversion or
approved for development increased to over 135,000 rooms, including
more than 64,000 rooms outside North America;
- Nearly 5,300 rooms opened during the quarter,
including roughly 1,200 rooms converted from competitor brands and over
3,000 rooms in international markets. The company added over 16,000
rooms to the pipeline during the first quarter;
- Marriott repurchased 5.4 million shares of the
company's common stock for $212 million
during the first quarter. Year-to-date through April
30, 2013, the company repurchased 8.1 million shares for $324 million;
Marriott International, Inc. (NYSE: MAR) today reported first
quarter 2013 results. Due to the company's change in the fiscal
calendar beginning in 2013, the first quarter of 2013 reflects the
period from December 29, 2012 through March 31, 2013 (93 days) compared to the 2012
first quarter, which reflects the period from December
31, 2011 through March 23, 2012
(84 days). Prior year results have not been restated for the change in
fiscal calendar, although revenue per available room (REVPAR),
occupancy and average daily rate statistics are reported for calendar
quarters for purposes of comparability.
First quarter 2013 net income totaled $136
million, a 31 percent increase compared to first quarter 2012
net income. Diluted earnings per share (EPS) totaled $0.43, a 43 percent increase from diluted EPS
in the year-ago quarter. On February 19, 2013,
the company forecasted first quarter diluted EPS of $0.37 to $0.42.
Arne M. Sorenson, president and
chief executive officer of Marriott International, said, "Our business
has seen dramatic recovery in the past few years. In fact, in the first
quarter of 2013, we exceeded peak 2007 levels for fee revenue and North
American systemwide REVPAR. Our worldwide development pipeline also
reached a record level. We are more global than ever having grown our
system outside the U.S. by nearly 40 percent in the past 6 years.
"Our business is highly resilient. Our first quarter fee
revenue exceeded our expectations. North American systemwide REVPAR
increased nearly 5 percent reflecting strong transient demand and
favorable pricing. Increasingly profitable hotels drove our incentive
fees to $66 million with particular
strength among full-service hotels in the U.S.
"Group booking pace for the Marriott Hotels and Resorts brand
in North America for the remainder of
2013 is up 4 percent, reflecting somewhat more cautious short-term
corporate group demand. At the same time, our 2014 group booking pace
has improved dramatically, now up 5 percent compared to a 4 percent
decline just a year ago, reflecting strong long-term group demand and
rapidly filling hotels.
"Our development pipeline increased to more than 135,000 rooms
under construction, awaiting conversion or approved for development,
and nearly 20 percent ahead of year-ago levels. We are delighted by the
trust and confidence placed in us by our owners and franchisees around
the world."
For the 2013 first quarter, REVPAR for worldwide comparable
systemwide properties increased 4.6 percent (a 4.5 percent increase
using actual dollars).
In North America, comparable
systemwide REVPAR increased 4.8 percent in the first quarter of 2013,
including a 4.2 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)
increased 5.5 percent with a 4.3 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 4.1 percent in the first quarter with a 4.0 percent increase
in average daily rate.
International comparable systemwide REVPAR rose 4.1 percent (a
3.7 percent increase using actual dollars), including a 1.5 percent
increase in average daily rate (a 1.1 percent increase using actual
dollars) in the first quarter of 2013.
Marriott added 32 new properties (5,257 rooms) to its
worldwide lodging portfolio in the 2013 first quarter, including The
Ritz-Carlton Abu Dhabi, Grand Canal and the L'Hermitage Gantois, an
Autograph Collection hotel in France. Eleven properties (2,322 rooms)
exited the system during the quarter. At quarter-end, the company's
lodging group encompassed 3,822 properties and timeshare resorts for a
total of over 663,000 rooms.
The company's worldwide pipeline of hotels under construction,
awaiting conversion or approved for development increased to
approximately 800 properties with over 135,000 rooms at quarter-end.
MARRIOTT REVENUES totaled more than $3.1
billion in the 2013 first quarter compared to revenues of over $2.5 billion for the first quarter of 2012.
Base management and franchise fees totaled $304
million, a $54 million increase
from the first quarter of 2012 of which the company estimates $31 million relates to the change in the
fiscal calendar. In addition to the calendar change impact, the
year-over-year increase reflects higher REVPAR at existing hotels, fees
from new hotels and the favorable impact of $3
million of fee reversals at two hotels due to contract revisions
in the year-ago quarter. First quarter worldwide incentive management
fees increased 32 percent to $66 million
and included an approximately $6 million
increase relating to the change in the fiscal calendar. In the first
quarter, 33 percent of worldwide company-managed hotels earned
incentive management fees compared to 29 percent in the year-ago
quarter.
Owned, leased, corporate housing and other revenue, net of
direct expenses, totaled $36 million,
compared to $22 million in the year-ago
quarter. The $14 million increase
largely reflects higher credit card and residential branding fees, as
well as higher termination fees, partially offset by weaker operating
results, primarily at one international leased property and costs
related to a lease the company terminated. The company also estimates
that approximately $1 million of the
year-over-year increase relates to the change in fiscal calendar.
GENERAL, ADMINISTRATIVE and OTHER expenses for the 2013 first
quarter increased $33 million to $180 million. First quarter 2013 expenses
reflected an approximately $15 million
increase related to the change in fiscal calendar, routine increases in
compensation and other expenses, branding and service initiatives and
growth in international markets. Expenses in the 2013 first quarter
also included a $2 million change in
estimate for compensation paid in 2013 but associated with 2012; $3 million of higher amortization of contract
acquisition costs, largely related to the Gaylord transaction; and a $3 million unfavorable foreign exchange
impact, which included $2 million
related to the Venezuelan currency devaluation.
Earnings before Interest Expense, Taxes, Depreciation
and Amortization (EBITDA)
EBITDA totaled $268 million
in the 2013 first quarter, a 25 percent increase over 2012 first
quarter EBITDA of $215 million. See page
A-6 for the EBITDA calculation.
BALANCE SHEET
At the end of the first quarter, total debt was $3,255 million and cash balances totaled $221 million, compared to $2,935 million in debt and $88 million of cash at year-end 2012.
COMMON STOCK
Weighted average fully diluted shares outstanding used to
calculate diluted EPS totaled 320.0 million in the 2013 first quarter,
compared to 344.6 million in the year-ago quarter.
The company repurchased 5.4 million shares of common stock in
the first quarter at a cost of $212 million.
Year-to-date through April 30, 2013,
Marriott repurchased 8.1 million shares of its stock for $324 million. The remaining share
authorization as of April 30, 2013,
totaled 26.2 million shares.
2013 OUTLOOK
The company will report its 2013 results on a calendar
basis, with quarters ending on March 31,
June 30, September
30 and December 31. The second quarter of 2013 will include 91
days compared to 84 days in the 2012 second quarter. Prior year results
will not be restated or reported on a pro forma basis for the change in
fiscal calendar, although REVPAR statistics will be adjusted to
calendar quarters for purposes of comparability.
For the second quarter, the company expects comparable
systemwide calendar REVPAR on a constant dollar basis will increase 5
to 7 percent in North America, 2 to 4
percent outside North America and 4
to 6 percent worldwide.
The company expects second quarter 2013 operating profit could
total $275 million to $295 million, a $32 million to $52 million increase over the
prior year quarter. The company estimates that roughly $20 million of the year-over-year operating
profit increase in the second quarter will be attributable to the
change in the fiscal calendar.
The company expects full year 2013 comparable systemwide
REVPAR on a constant dollar basis will increase 4.5 to 7 percent in North America, 3 to 5 percent outside North America and 4 to 7 percent worldwide.
The company anticipates adding approximately 30,000 to 35,000
rooms worldwide for the full year 2013. The company also expects
approximately 10,000 rooms will leave the system during the year.
The company assumes full year fee revenue could total $1,535 million to $1,585 million, growth of 8
to 12 percent over 2012 fee revenue of $1,420
million.
The company expects owned, leased, corporate housing and other
revenue, net of expenses could total $140
million to $150 million in 2013, a 9 to 15 percent decline
year-over-year. Expected results for 2013 reflect tougher
year-over-year comparisons due to the London Olympics, 2013 renovations
at some international leased hotels, higher pre-opening expenses, and
lower termination and residential branding fees.
For 2013, the company anticipates general, administrative and
other expenses will total $675 million to $685
million, an increase of 5 to 6 percent over 2012 expenses of $645 million. The increase in guidance for
general, administrative and other expenses from February
2013 largely reflects the higher than anticipated spending in
the first quarter related to unfavorable foreign exchange, legal
expenses and a change in estimate for compensation paid in 2013, but
associated with 2012.
Given these assumptions, 2013 diluted EPS could total $1.93 to $2.08, a 12 to 21 percent increase
year-over-year. In 2012, the company recorded a $41
million pretax ($25 million
after-tax and $0.08 per diluted share)
gain on the sale of the equity interest in the Courtyard joint venture.
Excluding that gain from 2012 diluted EPS, the company estimates 2013
diluted EPS could increase 18 to 27 percent year-over-year as shown on
page A-9.
|
Second
Quarter 2013
|
Full
Year 2013
|
Total
fee revenue
|
$405
million to $415 million
|
$1,535
million to $1,585 million
|
Owned,
leased, corporate housing
and
other revenue, net of direct
expenses
|
$40
million to $45 million
|
$140
million to $150 million
|
General,
administrative and other
expenses
|
$165
million to $170 million
|
$675
million to $685 million
|
Operating
income
|
$275
million to $295 million
|
$990
million to $1,060 million
|
Gains
and other income
|
Approx.
$3 million
|
Approx.
$10 million
|
Net
interest expense1
|
Approx.
$25 million
|
Approx.
$100 million
|
Equity
in earnings (losses)
|
Approx.
$3 million
|
Approx.
$0 million
|
Earnings
per share
|
$0.55
to $0.59
|
$1.93
to $2.08
|
Tax
rate
|
|
33.0
percent
|
1 Net of interest income
|
The company expects investment spending in 2013 will total
approximately $600 million to $800 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, and equity
and other investments. Assuming this level of investment spending,
approximately $800 million to $1 billion
could be returned to shareholders through share repurchases and
dividends.
Based upon the assumptions above, the company expects full
year 2013 EBITDA will total $1,185 million to
$1,255 million, a 3 to 10 percent increase over prior year's
EBITDA. Excluding the $41 million
Courtyard joint venture gain from 2012 EBITDA, the company expects 2013
EBITDA will increase 7 to 14 percent year-over-year as shown on page
A-7.
Marriott International, Inc. (NYSE: MAR) will conduct its
quarterly earnings review for the investment community and news media
on Thursday, May 2, 2013 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 May 2, 2014.
The telephone dial-in number for the conference call is
706-679-3455 and the conference ID is 25765606. A telephone replay of
the conference call will be available from 1
p.m. ET, Thursday, May 2, 2013
until 8 p.m. ET, Thursday,
May 9, 2013. To access the replay, call 404-537-3406. The
conference ID for the recording is 25765606.
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 annual report on Form 10-K or
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 May 1,
2013. 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 3,800 properties in 74 countries and territories
and reported revenues of nearly $12 billion
in fiscal year 2012. 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 325,000
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
1, 2013
TABLE
OF CONTENTS
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Consolidated
Statements of Income
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A-1
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Total
Lodging Products
|
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A-3
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Key
Lodging Statistics
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A-4
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EBITDA
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A-6
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EBITDA
Full Year Forecast
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A-7
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|
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Adjusted
Operating Income Margin Excluding Cost Reimbursements
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A-8
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Adjusted
2012 EPS Excluding Gain on Courtyard JV Sale, Net of Tax
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A-9
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Non-GAAP
Financial Measures
|
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A-10
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MARRIOTT
INTERNATIONAL, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
FIRST
QUARTER 2013 AND 2012
|
(in
millions, except per share amounts)
|
|
|
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Percent
|
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|
|
93
Days Ended
|
|
84
Days Ended
|
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Better/
|
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|
|
March
31, 2013 1
|
|
March
23, 2012 1
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(Worse)
|
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REVENUES
|
|
|
|
|
|
|
|
Base
management fees
|
|
$ 153
|
|
$ 124
|
|
23
|
|
Franchise
fees
|
|
151
|
|
126
|
|
20
|
|
Incentive
management fees
|
|
66
|
|
50
|
|
32
|
|
Owned,
leased, corporate housing and other revenue2
|
|
224
|
|
217
|
|
3
|
|
Cost
reimbursements3
|
|
2,548
|
|
2,035
|
|
25
|
|
Total Revenues
|
|
3,142
|
|
2,552
|
|
23
|
|
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OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct4
|
|
188
|
|
195
|
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4
|
|
Reimbursed
costs
|
|
2,548
|
|
2,035
|
|
(25)
|
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General,
administrative and other5
|
|
180
|
|
147
|
|
(22)
|
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Total Expenses
|
|
2,916
|
|
2,377
|
|
(23)
|
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|
|
|
|
|
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|
|
OPERATING
INCOME
|
|
226
|
|
175
|
|
29
|
|
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|
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|
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Gains
and other income6
|
|
3
|
|
2
|
|
50
|
|
Interest
expense
|
|
(31)
|
|
(33)
|
|
6
|
|
Interest
income
|
|
3
|
|
4
|
|
(25)
|
|
Equity
in earnings/ (losses) 7
|
|
-
|
|
(1)
|
|
100
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES
|
|
201
|
|
147
|
|
37
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
(65)
|
|
(43)
|
|
(51)
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|
|
|
|
|
|
|
|
NET
INCOME
|
|
$ 136
|
|
$ 104
|
|
31
|
|
|
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|
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|
EARNINGS
PER SHARE - Basic
|
|
|
|
|
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|
|
Earnings per share
|
|
$ 0.44
|
|
$ 0.31
|
|
42
|
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|
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|
|
EARNINGS
PER SHARE - Diluted
|
|
|
|
|
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|
|
Earnings per share
|
|
$ 0.43
|
|
$ 0.30
|
|
43
|
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Basic
Shares
|
|
311.8
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|
333.7
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Diluted
Shares
|
|
320.0
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|
344.6
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A-1
|
MARRIOTT
INTERNATIONAL, INC.
CONSOLIDATED
STATEMENTS OF INCOME
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1
|
–
|
The
2013 first quarter began on December 29, 2012 and ended on March 31,
2013 and includes 93 days of activity. The 2012 first quarter began
|
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|
on
December 31, 2011 and ended on March 23, 2012 and includes 84 days of
activity.
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2
|
–
|
Owned,
leased, corporate housing and other revenue includes revenue from
the properties we own or lease, termination fees, branding fees,
|
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|
|
other
revenue and revenue from our corporate housing business through our
sale of that business on April 30, 2012.
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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 corporate
housing business through our sale of that business on April 30, 2012.
|
5
|
–
|
General,
administrative and other expenses include the overhead costs
allocated to our segments, and our corporate overhead costs and general
expenses.
|
6
|
–
|
Gains
and other income includes gains and losses on the sale of real
estate, note sales or repayments, the sale or other-than-temporary
|
|
|
|
impairment
of joint ventures and investments, debt extinguishments, and income
from cost method joint ventures.
|
|
|
7
|
–
|
Equity
in earnings/ (losses) includes our equity in earnings or losses of
unconsolidated equity method joint ventures.
|
|
|
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|
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|
|
A-2
|
MARRIOTT
INTERNATIONAL, INC.
|
TOTAL
LODGING PRODUCTS 1
|
|
|
|
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Number
of Properties
|
|
Number
of Rooms/Suites
|
Brand
|
|
March
31,
2013
|
March
23,
2012
|
vs.
March 23,
2012
|
|
March
31,
2013
|
March
23,
2012
|
vs.
March 23,
2012
|
|
|
|
|
|
|
|
|
|
Domestic
Full-Service
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
348
|
351
|
(3)
|
|
140,629
|
142,078
|
(1,449)
|
Renaissance Hotels
|
|
78
|
80
|
(2)
|
|
28,209
|
29,229
|
(1,020)
|
Autograph Collection
|
|
26
|
20
|
6
|
|
6,910
|
5,815
|
1,095
|
Gaylord Hotels
|
|
5
|
-
|
5
|
|
8,098
|
-
|
8,098
|
Domestic
Limited-Service
|
|
|
|
|
|
|
|
|
Courtyard
|
|
820
|
807
|
13
|
|
115,095
|
113,692
|
1,403
|
Fairfield Inn & Suites
|
|
679
|
670
|
9
|
|
61,666
|
60,680
|
986
|
SpringHill Suites
|
|
297
|
288
|
9
|
|
34,844
|
33,821
|
1,023
|
Residence Inn
|
|
607
|
597
|
10
|
|
73,249
|
72,078
|
1,171
|
TownePlace Suites
|
|
212
|
202
|
10
|
|
21,118
|
20,248
|
870
|
International
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
210
|
202
|
8
|
|
64,392
|
61,968
|
2,424
|
Renaissance Hotels
|
|
75
|
74
|
1
|
|
24,400
|
23,730
|
670
|
Autograph Collection
|
|
10
|
5
|
5
|
|
1,223
|
548
|
675
|
Courtyard
|
|
114
|
111
|
3
|
|
22,244
|
21,777
|
467
|
Fairfield Inn & Suites
|
|
13
|
13
|
-
|
|
1,568
|
1,568
|
-
|
SpringHill Suites
|
|
2
|
2
|
-
|
|
299
|
299
|
-
|
Residence Inn
|
|
23
|
22
|
1
|
|
3,229
|
3,028
|
201
|
TownePlace Suites
|
|
2
|
1
|
1
|
|
278
|
105
|
173
|
Marriott Executive Apartments
|
|
26
|
24
|
2
|
|
4,140
|
3,826
|
314
|
Luxury
|
|
|
|
|
|
|
|
|
The
Ritz-Carlton - Domestic
|
|
38
|
39
|
(1)
|
|
11,357
|
11,587
|
(230)
|
The
Ritz-Carlton - International
|
|
43
|
39
|
4
|
|
13,120
|
11,996
|
1,124
|
Bulgari Hotels & Resorts
|
|
3
|
2
|
1
|
|
202
|
117
|
85
|
EDITION
|
|
1
|
1
|
-
|
|
78
|
78
|
-
|
The
Ritz-Carlton Residential
|
|
37
|
34
|
3
|
|
4,067
|
3,838
|
229
|
The
Ritz-Carlton Serviced Apartments
|
|
4
|
4
|
-
|
|
579
|
579
|
-
|
Unconsolidated
Joint Ventures
|
|
|
|
|
|
|
|
|
AC
Hotels by Marriott
|
|
79
|
75
|
4
|
|
8,819
|
7,976
|
843
|
Autograph Collection
|
|
5
|
5
|
-
|
|
348
|
350
|
(2)
|
Timeshare
2
|
|
65
|
64
|
1
|
|
13,002
|
12,932
|
70
|
|
|
|
|
|
|
|
|
|
Total
|
|
3,822
|
3,732
|
90
|
|
663,163
|
643,943
|
19,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Total Lodging Products as of March 23, 2012 does not
include 2,095 ExecuStay corporate housing rental units. Because we
completed the sale of our corporate housing
|
business in the second quarter of 2012, we had no ExecuStay units at
the end of the first quarter of 2013.
|
2
Timeshare unit and room counts are as of March 22,
2013 and March 23, 2012, the end of Marriott Vacation Worldwide's first
quarter for 2013 and 2012, respectively.
|
|
|
|
A-3
|
MARRIOTT
INTERNATIONAL, INC.
|
KEY
LODGING STATISTICS
|
Constant
$
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Company-Operated International Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2013 and March 31, 2012
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
Caribbean
& Latin America
|
|
$179.53
|
5.7%
|
|
78.0%
|
-0.1%
|
pts.
|
|
$230.21
|
5.8%
|
Europe
|
|
$102.00
|
-2.7%
|
|
62.8%
|
0.1%
|
pts.
|
|
$162.45
|
-2.9%
|
Middle
East & Africa
|
|
$91.05
|
10.7%
|
|
59.1%
|
4.1%
|
pts.
|
|
$154.00
|
3.1%
|
Asia
Pacific
|
|
$103.51
|
3.1%
|
|
70.1%
|
1.5%
|
pts.
|
|
$147.61
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite 2
|
|
$110.39
|
2.0%
|
|
66.9%
|
1.0%
|
pts.
|
|
$164.95
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury 3
|
|
$255.45
|
10.7%
|
|
65.4%
|
4.0%
|
pts.
|
|
$390.45
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International 4
|
|
$129.23
|
4.1%
|
|
66.7%
|
1.4%
|
pts.
|
|
$193.67
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
5
|
|
$118.96
|
5.2%
|
|
68.4%
|
0.7%
|
pts.
|
|
$174.03
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2013 and March 31, 2012
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
Caribbean
& Latin America
|
|
$147.97
|
6.1%
|
|
73.6%
|
1.3%
|
pts.
|
|
$200.97
|
4.2%
|
Europe
|
|
$97.04
|
-1.8%
|
|
61.2%
|
0.6%
|
pts.
|
|
$158.55
|
-2.7%
|
Middle
East & Africa
|
|
$89.53
|
11.2%
|
|
59.7%
|
4.1%
|
pts.
|
|
$150.06
|
3.5%
|
Asia
Pacific
|
|
$105.43
|
3.3%
|
|
70.3%
|
1.7%
|
pts.
|
|
$149.88
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite 6
|
|
$107.05
|
2.5%
|
|
66.0%
|
1.4%
|
pts.
|
|
$162.16
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury 3
|
|
$255.45
|
10.7%
|
|
65.4%
|
4.0%
|
pts.
|
|
$390.45
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International 4
|
|
$122.66
|
4.1%
|
|
66.0%
|
1.7%
|
pts.
|
|
$185.99
|
1.5%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
7
|
|
$97.48
|
4.6%
|
|
67.5%
|
0.6%
|
pts.
|
|
$144.50
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Statistics are in constant dollars. International
includes properties located outside the United States and Canada,
except for
|
Worldwide which includes the United States.
|
2
Includes Marriott Hotels & Resorts, Renaissance
Hotels, Courtyard, and Residence Inn properties.
|
3
Includes The Ritz-Carlton properties located outside
of the United States and Canada and Bulgari Hotels & Resorts and
EDITION
|
properties.
|
4
Includes Regional Composite and International Luxury.
|
5
Includes Marriott Hotels & Resorts, Renaissance
Hotels, The Ritz-Carlton, Bulgari Hotels & Resorts, EDITION,
Residence Inn,
|
Courtyard, Fairfield Inn & Suites, TownePlace Suites, and
SpringHill Suites properties.
|
6
Includes Marriott Hotels & Resorts, Renaissance
Hotels, Autograph Collection, Courtyard, Residence Inn, and Fairfield
Inn & Suites
|
properties.
|
7
Includes Marriott Hotels & Resorts, Renaissance
Hotels, Autograph Collection, The Ritz-Carlton, Bulgari Hotels &
Resorts, EDITION,
|
Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace
Suites, and SpringHill Suites properties.
|
|
|
|
A-4
|
MARRIOTT
INTERNATIONAL, INC.
|
KEY
LODGING STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Company-Operated North American Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2013 and March 31, 2012
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
Marriott
Hotels & Resorts
|
|
$125.81
|
5.5%
|
|
70.8%
|
0.5%
|
pts.
|
|
$177.68
|
4.7%
|
Renaissance
Hotels
|
|
$130.91
|
6.7%
|
|
72.7%
|
0.3%
|
pts.
|
|
$180.16
|
6.2%
|
Composite
North American Full-Service
|
|
$126.53
|
5.7%
|
|
71.1%
|
0.5%
|
pts.
|
|
$178.03
|
4.9%
|
The
Ritz-Carlton
|
|
$245.10
|
8.9%
|
|
71.7%
|
1.3%
|
pts.
|
|
$341.79
|
6.9%
|
Composite
North American Full-Service & Luxury
|
|
$138.63
|
6.2%
|
|
71.1%
|
0.6%
|
pts.
|
|
$194.87
|
5.4%
|
Courtyard
|
|
$76.82
|
3.5%
|
|
63.3%
|
-0.9%
|
pts.
|
|
$121.41
|
4.9%
|
SpringHill
Suites
|
|
$75.55
|
10.1%
|
|
67.8%
|
4.0%
|
pts.
|
|
$111.37
|
3.7%
|
Residence
Inn
|
|
$91.58
|
5.7%
|
|
72.3%
|
1.2%
|
pts.
|
|
$126.59
|
4.0%
|
TownePlace
Suites
|
|
$56.38
|
2.5%
|
|
62.9%
|
-3.4%
|
pts.
|
|
$89.63
|
8.1%
|
Composite
North American Limited-Service
|
|
$80.18
|
4.8%
|
|
66.3%
|
0.0%
|
pts.
|
|
$121.02
|
4.7%
|
Composite
- All
|
|
$114.27
|
5.8%
|
|
69.1%
|
0.4%
|
pts.
|
|
$165.36
|
5.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2013 and March 31, 2012
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
|
2013
|
vs.
2012
|
Marriott
Hotels & Resorts
|
|
$112.43
|
4.9%
|
|
68.5%
|
0.8%
|
pts.
|
|
$164.21
|
3.7%
|
Renaissance
Hotels
|
|
$110.49
|
5.8%
|
|
69.5%
|
0.8%
|
pts.
|
|
$159.09
|
4.6%
|
Autograph
Collection Hotels
|
|
$151.98
|
5.6%
|
|
74.1%
|
0.0%
|
pts.
|
|
$205.05
|
5.6%
|
Composite
North American Full-Service
|
|
$113.40
|
5.1%
|
|
68.8%
|
0.8%
|
pts.
|
|
$164.83
|
3.9%
|
The
Ritz-Carlton
|
|
$245.10
|
8.9%
|
|
71.7%
|
1.3%
|
pts.
|
|
$341.79
|
6.9%
|
Composite
North American Full-Service & Luxury
|
|
$121.06
|
5.5%
|
|
69.0%
|
0.8%
|
pts.
|
|
$175.53
|
4.3%
|
Courtyard
|
|
$79.47
|
3.9%
|
|
65.5%
|
-0.1%
|
pts.
|
|
$121.42
|
4.0%
|
Fairfield
Inn & Suites
|
|
$59.29
|
4.3%
|
|
62.3%
|
0.3%
|
pts.
|
|
$95.22
|
3.8%
|
SpringHill
Suites
|
|
$71.97
|
5.0%
|
|
67.9%
|
0.9%
|
pts.
|
|
$106.04
|
3.7%
|
Residence
Inn
|
|
$89.77
|
4.3%
|
|
73.3%
|
0.1%
|
pts.
|
|
$122.53
|
4.1%
|
TownePlace
Suites
|
|
$61.62
|
1.4%
|
|
67.1%
|
-1.3%
|
pts.
|
|
$91.89
|
3.3%
|
Composite
North American Limited-Service
|
|
$75.84
|
4.1%
|
|
67.1%
|
0.1%
|
pts.
|
|
$113.07
|
4.0%
|
Composite
- All
|
|
$92.39
|
4.8%
|
|
67.8%
|
0.3%
|
pts.
|
|
$136.34
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Statistics include only properties located in the
United States.
|
|
|
|
A-5
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
EBITDA
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2013
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
|
|
|
|
|
|
|
Net
Income
|
$ 136
|
|
|
|
|
|
|
|
|
Interest
expense
|
31
|
|
|
|
|
|
|
|
|
Tax
provision
|
65
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
37
|
|
|
|
|
|
|
|
|
Less:
Depreciation reimbursed by third-party owners
|
(5)
|
|
|
|
|
|
|
|
|
Interest
expense from unconsolidated joint ventures
|
1
|
|
|
|
|
|
|
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
3
|
|
|
|
|
|
|
|
|
EBITDA
**
|
$
268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
over 2012 EBITDA
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2012
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
Net
Income
|
$ 104
|
|
$ 143
|
|
$ 143
|
|
$ 181
|
|
$ 571
|
Interest
expense
|
33
|
|
34
|
|
29
|
|
41
|
|
137
|
Tax
provision
|
43
|
|
66
|
|
79
|
|
90
|
|
278
|
Depreciation
and amortization
|
29
|
|
38
|
|
33
|
|
45
|
|
145
|
Less:
Depreciation reimbursed by third-party owners
|
(4)
|
|
(4)
|
|
(3)
|
|
(5)
|
|
(16)
|
Interest
expense from unconsolidated joint ventures
|
4
|
|
4
|
|
1
|
|
2
|
|
11
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
8
|
|
2
|
|
4
|
|
20
|
EBITDA
**
|
$
215
|
|
$
289
|
|
$
284
|
|
$
358
|
|
$
1,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see page A-10 for
information about our reasons for providing these alternative
|
financial measures and the limitations on their use.
|
|
|
|
A-6
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
|
FULL
YEAR EBITDA
|
|
FORECASTED
2013
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
Estimated
EBITDA
Full Year 2013
|
|
As
Reported
Full Year 2012
|
|
Net
Income
|
$ 606
|
|
$ 653
|
|
$ 571
|
|
Interest
expense
|
125
|
|
125
|
|
137
|
|
Tax
provision
|
294
|
|
317
|
|
278
|
|
Depreciation
and amortization
|
160
|
|
160
|
|
145
|
|
Less:
Depreciation reimbursed by third-party owners
|
(20)
|
|
(20)
|
|
(16)
|
|
Interest
expense from unconsolidated joint ventures
|
5
|
|
5
|
|
11
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
15
|
|
15
|
|
20
|
|
EBITDA
**
|
$
1,185
|
|
$
1,255
|
|
1,146
|
|
|
|
|
|
|
|
|
Increase
over 2012 EBITDA**
|
3%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
Less:
Gain on Courtyard JV sale, pretax
|
|
|
|
|
(41)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA **
|
|
|
|
|
$
1,105
|
|
|
|
|
|
|
|
|
Increase
over 2012 Adjusted EBITDA**
|
7%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see page A-10 for
information
|
about
our reasons for providing these alternative financial measures and the
limitations on their use.
|
|
|
|
A-7
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
OPERATING
INCOME MARGIN EXCLUDING COST REIMBURSEMENTS
|
FIRST
QUARTER 2013 AND 2012
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME MARGIN
|
First
Quarter
2013
|
|
First
Quarter
2012
|
Operating
Income
|
$
226
|
|
$
175
|
|
|
|
|
Total
revenues as reported
|
$ 3,142
|
|
$ 2,552
|
Less:
cost reimbursements
|
(2,548)
|
|
(2,035)
|
Total
revenues excluding cost reimbursements **
|
$
594
|
|
$
517
|
|
|
|
|
Operating
income margin, excluding cost reimbursements **
|
38%
|
|
34%
|
|
|
|
|
|
|
|
|
**Denotes
non-GAAP financial measures. Please see page A-10 for additional
information
|
about
our reasons for providing these alternative financial measures and the
limitations on their use.
|
|
|
|
A-8
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
ADJUSTED
2012 EPS EXCLUDING GAIN ON COURTYARD JV SALE, NET OF TAX
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
Estimated
Full Year
2013
|
|
Full
Year
2012
|
Net
income, as reported
|
|
|
|
|
|
$ 571
|
Less:
Gain on Courtyard JV sale, net of tax
|
|
|
|
|
|
(25)
|
Net
income, as adjusted **
|
|
|
|
|
|
$
546
|
|
|
|
|
|
|
|
DILUTED
EPS AS REPORTED
|
|
|
|
|
|
$
1.72
|
|
|
|
|
|
|
|
DILUTED
PER SHARE GAIN ON COURTYARD JV SALE
|
|
|
|
|
|
(0.08)
|
|
|
|
|
|
|
|
DILUTED
EPS AS ADJUSTED **
|
|
|
|
|
|
$
1.64
|
|
|
|
|
|
|
|
DILUTED
EPS GUIDANCE
|
|
$
1.93
|
|
$
2.08
|
|
|
|
|
|
|
|
|
|
INCREASE
OVER 2012 DILUTED EPS
|
|
12%
|
|
21%
|
|
|
|
|
|
|
|
|
|
INCREASE
OVER 2012 ADJUSTED DILUTED EPS **
|
|
18%
|
|
27%
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
|
|
|
|
332.9
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see page A-10 for
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
|
|
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 2012 EPS Excluding Gain on Joint Venture Sale .
Management evaluates this
non‐GAAP measure that excludes a 2012 gain on sale because this non‐GAAP measure
allows
for period‐over‐period comparisons of our on‐going core operations
before the impact of this item. This non‐GAAP measure also facilitates
management's comparison of results from our on‐going operations before
the impact of this item with results from other lodging companies.
|
|
2012 Gain on Sale of Equity Interest in a Joint
Venture. We recorded a $41
million pre‐tax ($25 million after‐tax) gain on the sale of an equity
interest in a North American Limited‐Service joint venture in the
"Gains and other income" caption of our 2012 Income Statement, which
consisted of: (1) a $21 million gain on the sale of this interest; and
(2) recognition of the $20 million remaining gain we deferred in 2005
due to contingencies in the original transaction documents for the sale
of land to the joint venture which expired with the 2012 sale.
|
|
Earnings Before Interest Expense, Taxes,
Depreciation and Amortization ("EBITDA") and Adjusted EBITDA. EBITDA is a financial measure that is not prescribed or
authorized by GAAP, which reflects earnings excluding the impact of
interest expense, provision for income taxes, and depreciation and
amortization. We believe that EBITDA is a meaningful 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 believe that Adjusted EBITDA, another
non‐GAAP financial measure, is a meaningful indicator of operating
performance. Our Adjusted EBITDA reflects an adjustment for the $41
million pre-tax gain on the 2012 sale of an equity interest in a joint
venture, described in more detail above. We believe that Adjusted
EBITDA that excludes this item is a meaningful measure of our operating
performance because it permits period‐over‐period comparisons of our
ongoing core operations before this item and facilitates
our comparison of results from our ongoing operations before this item
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 under 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 in particular
Adjusted EBITDA differently than we do or may not calculate them at
all, limiting EBITDA's and Adjusted EBITDA's usefulness as comparative
measures.
|
|
Adjusted Operating Income Margin Excluding 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 The 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. In
calculating adjusted operating income margin we consider total revenues
as adjusted to exclude cost reimbursements and therefore, adjusted
operating income margin excluding cost reimbursements to be meaningful
metrics as they represent that portion of revenue and operating
income margin that impacts operating income and net income.
|
|
|
|
A-10
|
|