MARRIOTT INTERNATIONAL, INC.
Financial Highlights
(in millions, except per share amounts)
12 Weeks Ended 12 Weeks
Ended
September 9, 2005 September 10, 2004
-------------------- --------------------
Percent
Synthetic
Synthetic Better/
Lodging Fuel Total Lodging Fuel Total (Worse)
------- ------ ----- ------- ------ ----- -------
REVENUES
Base management fees
$108 $- $108
$97 $- $97
11
Franchise fees
78 - 78
74 - 74
5
Incentive management fees
30 - 30
21 - 21
43
Owned, leased, corporate
housing and other(1)
236 - 236
153 - 153
54
Timeshare interval
sales and services(2)
393 - 393
299 - 299
31
Cost reimbursements(3)
1,771 - 1,771 1,573
- 1,573 13
Synthetic fuel
- 98 98
- 87 87
13
------- ------ ----- ------- ------ -----
Total Revenues
2,616 98 2,714 2,217
87 2,304 18
OPERATING COSTS AND
EXPENSES
Owned, leased and
corporate housing --
direct(4)
197 - 197
139 - 139 (42)
Timeshare -- direct
330 - 330
249 - 249 (33)
Reimbursed costs
1,771 - 1,771 1,573
- 1,573 (13)
General, administrative
and other(5)
149 - 149
126 - 126 (18)
Synthetic fuel
- 132 132
- 118 118 (12)
------- ------ ----- ------- ------ -----
Total Expenses
2,447 132 2,579 2,087 118
2,205 (17)
------- ------ ----- ------- ------ -----
OPERATING INCOME (LOSS)
$169 $(34) 135 $130 $(31)
99 36
======= ====== ======= ======
Gains and other
income(6)
39
43 (9)
Interest expense
(24)
(23) (4)
Interest income
13
33 (61)
Provision for loan
losses
(17)
- *
Equity in earnings/
(losses) - Other(7)
17
(8) 313
-----
-----
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST
163
144 13
Provision for income
taxes
(33)
(28) (18)
-----
-----
INCOME BEFORE MINORITY
INTEREST
130
116 12
Minority interest
18
16 13
-----
-----
INCOME FROM CONTINUING
OPERATIONS
148
132 12
DISCONTINUED OPERATIONS
1
1 -
-----
-----
NET INCOME
$149
$133 12
=====
=====
EARNINGS PER SHARE
- Basic
Earnings from
continuing operations
$0.69
$0.59 17
Earnings from
discontinued operations
-
- *
-----
-----
EARNINGS PER SHARE
- Basic
$0.69
$0.59 17
=====
=====
EARNINGS PER SHARE
- Diluted
Earnings from
continuing operations
$0.65
$0.55 18
Earnings from
discontinued operations
-
0.01 (100)
-----
-----
EARNINGS PER SHARE
- Diluted
$0.65
$0.56 16
=====
=====
Basic Shares
215.3
225.9
Diluted Shares
229.3
238.9
* Percent can not be calculated.
1 -- Owned, leased, corporate housing
and other revenue includes revenue
from
the properties we own or lease, revenue from our ExecuStay
business,
land rent income and other revenue.
2 -- Timeshare interval sales and
services includes total timeshare
revenue
except for base fees, cost reimbursements, gains, and joint
venture
earnings (losses).
3 -- Cost reimbursements include reimbursements
from lodging properties
for
Marriott funded operating expenses.
4 -- Owned, leased and corporate housing
-- direct expenses include
operating
expenses related to our owned or leased hotels, including
lease
payments, pre-opening expenses and depreciation, plus expenses
related
to our ExecuStay business.
5 -- General, administrative and other
expenses include the overhead costs
allocated
to our lodging business segments (including ExecuStay and
Timeshare)
and our unallocated corporate overhead costs and general
expenses.
6 -- Gains and other income includes
gains on the sale of real estate,
gains
from the sale of joint ventures, income related to our cost
method
joint ventures and the earn-out payments we made to the
previous
owner of the synthetic fuel operations and earn-out payments
we received
from our synthetic fuel joint venture partner.
7 -- Equity in earnings/(losses) --
Other includes our equity in earnings
(losses)
of unconsolidated joint ventures.
MARRIOTT INTERNATIONAL, INC.
Financial Highlights
(in millions, except per share amounts)
36 Weeks Ended 36 Weeks
Ended
September 9, 2005 September 10, 2004
-------------------- --------------------
Percent
Synthetic
Synthetic Better/
Lodging Fuel Total Lodging Fuel Total (Worse)
------- ------ ----- ------- ------ ----- -------
REVENUES
Base management fees
$342 $- $342 $302
$- $302 13
Franchise fees
226 - 226
207 - 207
9
Incentive management
fees
132 - 132
90 - 90
47
Owned, leased,
corporate housing
and other(1)
583 - 583
491 - 491
19
Timeshare interval
sales and services(2)
1,074 - 1,074
898 - 898
20
Cost reimbursements(3)
5,248 - 5,248 4,772
- 4,772 10
Synthetic fuel
- 304 304
- 198 198 54
------- ------ ----- ------- ------ -----
Total Revenues
7,605 304 7,909 6,760 198
6,958 14
OPERATING COSTS AND
EXPENSES
Owned, leased and
corporate housing --
direct(4)
480 - 480
428 - 428 (12)
Timeshare -- direct
871 - 871
746 - 746 (17)
Reimbursed costs
5,248 - 5,248 4,772
- 4,772 (10)
General, administrative
and other(5)
557 - 557
385 - 385 (45)
Synthetic fuel
- 419 419
- 259 259 (62)
------- ------ ----- ------- ------ -----
Total Expenses
7,156 419 7,575 6,331 259
6,590 (15)
------- ------ ----- ------- ------ -----
OPERATING INCOME (LOSS)
$449 $(115) 334 $429 $(61)
368 (9)
======= ====== ======= ======
Gains and other
income(6)
97
95 2
Interest expense
(69)
(69) -
Interest income
65
98 (34)
Provision for loan
losses
(28)
- *
Equity in earnings/
(losses) - Synthetic
fuel(7)
-
(28) 100
- Other(8)
18
(9) 300
-----
-----
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST
417
455 (8)
Provision for income
taxes
(18)
(79) 77
-----
-----
INCOME BEFORE MINORITY
INTEREST
399
376 6
Minority interest
32
30 7
-----
-----
INCOME FROM CONTINUING
OPERATIONS
431
406 6
DISCONTINUED OPERATIONS
1
1 -
-----
-----
NET INCOME
$432
$407 6
=====
=====
EARNINGS PER SHARE -
Basic
Earnings from
continuing operations
$1.96
$1.78 10
Earnings from
discontinued
operations
-
0.01 (100)
-----
-----
EARNINGS PER SHARE -
Basic
$1.96
$1.79 9
=====
=====
EARNINGS PER SHARE -
Diluted
Earnings from
continuing operations
$1.83
$1.69 8
Earnings from
discontinued
operations
-
- *
-----
-----
EARNINGS PER SHARE -
Diluted
$1.83
$1.69 8
=====
=====
Basic Shares
220.4
227.5
Diluted Shares
235.3
240.9
* Percent can not be calculated.
1 -- Owned, leased, corporate housing
and other revenue includes revenue
from
the properties we own or lease, revenue from our ExecuStay
business,
land rent income and other revenue.
2 -- Timeshare interval sales and
services includes total timeshare
revenue
except for base fees, cost reimbursements, gains, and joint
venture
earnings (losses).
3 -- Cost reimbursements include reimbursements
from lodging properties
for
Marriott funded operating expenses.
4 -- Owned, leased and corporate housing
-- direct expenses include
operating
expenses related to our owned or leased hotels, including
lease
payments, pre-opening expenses and depreciation, plus expenses
related
to our ExecuStay business.
5 -- General, administrative and other
expenses include the overhead costs
allocated
to our lodging business segments (including ExecuStay and
Timeshare)
and our unallocated corporate overhead costs and general
expenses.
6 -- Gains and other income includes
gains on the sale of real estate,
gains
from the sale of joint ventures, income related to our cost
method
joint ventures and the earn-out payments we made to the
previous
owner of the synthetic fuel operations and earn-out payments
we received
from our synthetic fuel joint venture partner.
7 -- Equity in earnings/(losses) -
Synthetic fuel includes our share of
the
equity in earnings of the synthetic fuel joint ventures and the
net
earn-out payments made to our synthetic fuel joint venture
partner
from January 3, 2004 through March 25, 2004. Beginning March
26,
2004, we consolidated the synthetic fuel operations as a result
of adopting
FIN 46®, "Consolidation of Variable Interest Entities."
8 -- Equity in earnings/(losses) --
Other includes our equity in (losses)
earnings
of unconsolidated joint ventures.
Marriott International, Inc.
Business Segments
($ in millions)
Twelve Weeks Ended
--------------------------- Percent
September 9, September 10, Better/
2005 2004
(Worse)
------------ ------------ -------
REVENUES
Full-Service
$1,713 $1,459
17%
Select-Service
303 277
9%
Extended-Stay
149 133
12%
Timeshare
451 348
30%
------------ ------------
Total lodging(1)
2,616 2,217
18%
Synthetic fuel
98 87
13%
------------ ------------
Total
$2,714 $2,304
18%
============ ============
INCOME FROM CONTINUING OPERATIONS
Full-Service
$129 $79
63%
Select-Service
49 42
17%
Extended-Stay
14 20
-30%
Timeshare
50 34
47%
------------ ------------
Total lodging financial
results(1) 242
175 38%
Synthetic fuel (after-tax)
30 31
-3%
Unallocated corporate expenses
(38) (28)
-36%
Interest income, (provision
for loan losses) and
(interest expense)
(28) 10
-380%
Income taxes (excluding
Synthetic fuel)
(58) (56)
-4%
------------ ------------
Total
$148 $132
12%
============ ============
(1) We consider lodging revenues and
lodging financial results to be
meaningful
indicators of our performance because they measure our
growth in
profitability as a lodging company and enable investors to
compare the
sales and results of our lodging operations to those of
other lodging
companies.
Marriott International, Inc.
Business Segments
($ in millions)
Thirty-Six Weeks Ended
--------------------------- Percent
September 9, September 10, Better/
2005 2004
(Worse)
------------ ------------ -------
REVENUES
Full-Service
$5,093 $4,512
13%
Select-Service
868 788
10%
Extended-Stay
411 377
9%
Timeshare
1,233 1,083
14%
------------ ------------
Total lodging(1)
7,605 6,760
13%
Synthetic fuel
304 198
54%
------------ ------------
Total
$7,909 $6,958
14%
============ ============
INCOME FROM CONTINUING OPERATIONS
Full-Service
$275 $292
-6%
Select-Service
130 104
25%
Extended-Stay
43 48
-10%
Timeshare
193 135
43%
------------ ------------
Total lodging financial
results(1) 641
579 11%
Synthetic fuel (after-tax)
92 73
26%
Unallocated corporate expenses
(97) (91)
-7%
Interest income, (provision for
loan losses) and (interest
expense)
(32) 29
-210%
Income taxes (excluding
Synthetic fuel)
(173) (184)
6%
------------ ------------
Total
$431 $406
6%
============ ============
(1) We consider lodging revenues and
lodging financial results to be
meaningful
indicators of our performance because they measure our
growth in
profitability as a lodging company and enable investors to
compare the
sales and results of our lodging operations to those of
other lodging
companies.
MARRIOTT INTERNATIONAL, INC.
Total Lodging Products(1)
-------------------------------------------------------------------------
Number of
Number of
Properties Rooms/Suites
----------------- ------------------
Change vs.
Change vs.
Sept. 9, Sept. 10, Sept. 9, Sept. 10,
Brand
2005 2004
2005 2004
------------------------------
-----------------------------------------
Full-Service Lodging
Marriott Hotels
& Resorts 502
15 181,599 3,268
The Ritz-Carlton
58 1
18,907 294
Renaissance
Hotels & Resorts 137
5 48,137
865
Bulgari Hotel
& Resort
1 -
58 -
Ramada International
4 (199)
724 (27,034)
Select-Service Lodging
Courtyard
680 34
98,043 5,381
Fairfield
Inn
521 (3)
47,826 (1,299)
SpringHill
Suites
135 14
15,767 1,697
Extended-Stay Lodging
Residence
Inn
482 25
57,296 2,927
TownePlace
Suites
119 6
12,021 466
Marriott Executive
Apartments 16
2 2,809
338
Timeshare(2)
Marriott Vacation
Club
International
44 1
9,231 694
The Ritz-Carlton
Club
4 -
280 19
Grand Residences
by Marriott 2
- 248
-
Horizons by
Marriott Vacation
Club
International
2 -
328 -
------------------ --------------------
Total
2,707 (99) 493,274
(12,384)
================== ====================
(1) Total Lodging Products excludes
the 1,805 corporate housing rental
units.
(2) Includes products in active sales
which are not ready for occupancy.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
North American Comparable Company-Operated Properties
--------------------------------------------------------------------------
Twelve Weeks Ended September 9, 2005 and
September 10, 2004
---------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
-------------
Brand
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
--------------------------------------------------------------------------
Marriott Hotels
& Resorts
$108.10 8.1% 75.7% 0.8% pts.
$142.75 6.9%
The Ritz-Carlton(1) $182.22
11.0% 72.7% 1.9% pts. $250.61
8.0%
Renaissance Hotels
& Resorts
$100.97 12.8% 74.1% 3.1% pts.
$136.27 8.1%
Composite -
Full-Service(2)
$114.63 9.2% 75.2% 1.3% pts.
$152.50 7.3%
Residence Inn
$90.15 6.8% 83.4% -1.0% pts.
$108.13 8.1%
Courtyard
$76.38 7.8% 73.5% -0.5% pts.
$103.94 8.5%
TownePlace Suites
$57.77 9.6% 80.9% 2.0% pts.
$71.43 6.9%
SpringHill Suites
$74.94 13.0% 78.7% 0.7% pts.
$95.17 12.0%
Composite -
Select- Service &
Extended-Stay(2)
$78.73 8.0% 77.0% -0.3% pts.
$102.31 8.5%
Composite - All(2)
$100.38 8.8% 75.9% 0.7% pts.
$132.29 7.9%
North American Comparable Systemwide Properties
-------------------------------------------------------------------------
Twelve Weeks Ended September 9, 2005 and
September 10, 2004
--------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
-------------
Brand
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
-------------------------------------------------------------------------
Marriott Hotels
& Resorts
$99.41 7.5% 73.5% 0.9% pts.
$135.30 6.2%
The Ritz-Carlton(1) $182.22
11.0% 72.7% 1.9% pts. $250.61
8.0%
Renaissance Hotels &
Resorts
$96.14 12.2% 73.6% 2.5% pts.
$130.55 8.3%
Composite -
Full-Service(2)
$104.60 8.5% 73.4% 1.2% pts.
$142.42 6.7%
Residence Inn
$89.12 6.7% 83.7% -0.3% pts.
$106.42 7.1%
Courtyard
$79.35 7.5% 75.7% 0.2% pts.
$104.84 7.1%
Fairfield Inn
$57.25 10.0% 75.2% 1.7% pts.
$76.15 7.5%
TownePlace Suites
$58.23 9.3% 80.4% 0.1% pts.
$72.46 9.1%
SpringHill Suites
$70.33 11.1% 77.0% 1.5% pts.
$91.36 8.9%
Composite - Select-
Service &
Extended-Stay(2)
$75.30 7.9% 78.1% 0.5% pts.
$96.47 7.3%
Composite - All(2)
$87.63 8.2% 76.1% 0.8% pts.
$115.12 7.1%
(1) Statistics for The Ritz-Carlton
are for June through August.
(2) Full-Service composite statistics
include properties for Marriott
Hotels &
Resorts, Renaissance Hotels & Resorts and The Ritz-Carlton.
Select-Service
and Extended-Stay composite statistics include
properties
for the Courtyard, Residence Inn, TownePlace Suites,
Fairfield
Inn and SpringHill Suites brands. Composite - All statistics
include properties
for the Marriott Hotels & Resorts, Renaissance
Hotels &
Resorts, The Ritz-Carlton, Courtyard, Residence Inn,
TownePlace
Suites, Fairfield Inn, and SpringHill Suites brands.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
North American Comparable Company-Operated Properties
--------------------------------------------------------------------------
Thirty-Six Weeks Ended September 9, 2005 and
September 10, 2004
----------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
-------------
Brand
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
--------------------------------------------------------------------------
Marriott Hotels
& Resorts
$112.37 8.2% 74.1% 0.7% pts.
$151.66 7.1%
The Ritz-Carlton(1) $206.85
11.9% 72.1% 1.0% pts. $286.93
10.4%
Renaissance Hotels
& Resorts
$106.32 11.4% 72.6% 2.6% pts.
$146.54 7.4%
Composite -
Full-Service(2)
$120.10 9.2% 73.7% 1.0% pts.
$163.02 7.6%
Residence Inn
$86.57 8.1% 80.7% 0.6% pts.
$107.34 7.2%
Courtyard
$75.83 8.6% 71.8% -0.5% pts.
$105.59 9.4%
TownePlace Suites
$53.46 8.0% 76.4% 0.5% pts.
$70.02 7.4%
SpringHill Suites
$71.07 17.3% 76.1% 4.2% pts.
$93.36 10.9%
Composite - Select-
Service &
Extended-Stay(2)
$76.96 9.0% 74.8% 0.2% pts.
$102.91 8.7%
Composite - All(2)
$102.84 9.1% 74.1% 0.7% pts.
$138.75 8.1%
North American Comparable Systemwide Properties
--------------------------------------------------------------------------
Thirty-Six Weeks Ended September 9, 2005 and
September 10, 2004
---------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
-------------
Brand
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
--------------------------------------------------------------------------
Marriott Hotels
& Resorts
$101.82 7.9% 71.9% 0.9% pts.
$141.68 6.6%
The Ritz-Carlton(1)
$206.85 11.9% 72.1% 1.0% pts.
$286.93 10.4%
Renaissance Hotels
& Resorts
$98.74 11.4% 71.6% 2.4% pts.
$137.96 7.7%
Composite -
Full-Service(2)
$107.77 8.8% 71.8% 1.1% pts.
$150.02 7.1%
Residence Inn
$84.19 7.7% 80.3% 0.7% pts.
$104.87 6.8%
Courtyard
$76.84 8.3% 73.2% 0.4% pts.
$105.03 7.8%
Fairfield Inn
$52.32 10.9% 70.4% 1.9% pts.
$74.36 8.0%
TownePlace Suites
$54.81 10.3% 76.3% 0.5% pts.
$71.80 9.6%
SpringHill Suites
$67.42 13.6% 74.6% 2.9% pts.
$90.38 9.1%
Composite - Select-
Service &
Extended-Stay(2)
$71.54 8.9% 74.7% 1.0% pts.
$95.77 7.5%
Composite - All(2)
$86.68 8.9% 73.5% 1.0% pts.
$117.93 7.3%
(1) Statistics for The Ritz-Carlton
are for January through August.
(2) Full-Service composite statistics
include properties for Marriott
Hotels &
Resorts, Renaissance Hotels & Resorts and The Ritz-Carlton.
Select-Service
and Extended-Stay composite statistics include
properties
for the Courtyard, Residence Inn, TownePlace Suites,
Fairfield
Inn and SpringHill Suites brands. Composite - All statistics
include properties
for the Marriott Hotels & Resorts, Renaissance
Hotels &
Resorts, The Ritz-Carlton, Courtyard, Residence Inn,
TownePlace
Suites, Fairfield Inn, and SpringHill Suites brands.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
(Constant $)
International Comparable Company-Operated Properties(1,2)
--------------------------------------------------------------------------
Three Months Ended August 31, 2005 and August 31, 2004
------------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
-------------
Region/Brand(3)
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
--------------------------------------------------------------------------
Caribbean & Latin
America
$100.71 10.3% 74.5% 3.0% pts.
$135.15 5.8%
Continental Europe
$96.26 4.3% 74.9% 1.5% pts.
$128.51 2.2%
United Kingdom
$141.41 5.2% 80.6% 2.4% pts.
$175.45 2.2%
Middle East & Africa
$67.51 20.3% 70.9% -0.3% pts.
$95.28 20.8%
Asia Pacific(4)
$80.14 10.2% 76.3% -0.6% pts. $104.98
11.1%
Ritz-Carlton
International
$131.43 14.2% 67.7% -0.5% pts. $194.14
15.1%
Total
International(5)
$97.73 9.9% 75.6% 0.9% pts.
$129.35 8.6%
Worldwide(6)
$99.66 9.1% 75.8% 0.7% pts.
$131.50 8.0%
International Comparable Systemwide Properties(1,2)
--------------------------------------------------------------------------
Three Months Ended August 31, 2005 and August 31, 2004
------------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
-------------
Region/Brand(3)
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
--------------------------------------------------------------------------
Caribbean & Latin
America
$95.27 12.5% 73.1% 4.4% pts.
$130.29 5.8%
Continental Europe
$96.95 7.4% 71.9% 1.2% pts.
$134.79 5.6%
United Kingdom
$119.95 2.3% 76.3% -0.2% pts.
$157.14 2.6%
Middle East & Africa
$65.41 18.4% 69.2% -0.8% pts.
$94.51 19.7%
Asia Pacific(4)
$85.92 12.0% 76.7% 0.2% pts.
$112.08 11.7%
Ritz-Carlton
International
$131.43 14.2% 67.7% -0.5% pts. $194.14
15.1%
Total
International(5)
$97.73 11.3% 74.5% 1.3% pts.
$131.14 9.4%
Worldwide(6)
$89.40 8.8% 75.8% 0.9% pts.
$117.89 7.6%
(1) International financial results
are reported on a period basis, while
International
statistics are reported on a monthly basis.
(2) Statistics are in constant dollars
and include results for June
through August.
Excludes North America except for Worldwide.
(3) Region information includes Marriott
Hotels & Resorts, Renaissance
Hotels &
Resorts, and Courtyard and excludes The Ritz-Carlton.
(4) Excludes Hawaii.
(5) Includes Hawaii.
(6) Worldwide includes international
statistics for June through August
and North
American statistics for the twelve weeks ending September 9,
2005 and September
10, 2004.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
(Constant $)
International Comparable Company-Operated Properties(1,2)
--------------------------------------------------------------------------
Eight Months Ended August 31, 2005 and August 31, 2004
------------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
------------
Region/Brand(3)
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
--------------------------------------------------------------------------
Caribbean & Latin
America
$113.99 14.1% 75.3% 3.8% pts.
$151.45 8.4%
Continental Europe
$94.73 3.2% 69.2% 0.7% pts.
$136.80 2.1%
United Kingdom
$139.77 5.0% 76.5% 0.3% pts.
$182.69 4.6%
Middle East & Africa
$77.70 27.1% 75.5% 4.7% pts.
$102.94 19.2%
Asia Pacific(4)
$82.86 14.6% 75.3% 1.1% pts.
$110.00 13.0%
Ritz-Carlton
International
$149.35 21.7% 71.7% 4.6% pts.
$208.44 14.0%
Total
International(5)
$101.08 12.0% 73.9% 1.9% pts.
$136.79 9.0%
Worldwide(6)
$102.41 9.8% 74.1% 1.0% pts.
$138.27 8.3%
International Comparable Systemwide Properties(1,2)
--------------------------------------------------------------------------
Eight Months Ended August 31, 2005 and August 31, 2004
------------------------------------------------------
Average
REVPAR Occupancy
Daily Rate
------------- -------------
-------------
Region/Brand(3)
2005 vs. 2004 2005 vs. 2004
2005 vs. 2004
--------------------------------------------------------------------------
Caribbean & Latin
America
$107.49 14.9% 73.6% 4.0% pts.
$146.00 8.7%
Continental Europe
$92.79 5.8% 66.8% 1.1% pts.
$138.88 4.1%
United Kingdom
$118.15 2.0% 71.8% -1.9% pts.
$164.67 4.8%
Middle East & Africa
$74.84 25.7% 73.4% 4.4% pts.
$101.95 18.1%
Asia Pacific(4)
$87.11 14.9% 76.0% 1.7% pts.
$114.68 12.4%
Ritz-Carlton
International
$149.35 21.7% 71.7% 4.6% pts.
$208.44 14.0%
Total
International(5)
$99.23 12.5% 72.8% 2.1% pts.
$136.27 9.3%
Worldwide(6)
$88.68 9.5% 73.4% 1.2% pts.
$120.82 7.7%
(1) International financial results
are reported on a period basis, while
International
statistics are reported on a monthly basis.
(2) Statistics are in constant dollars
and include results for January
through August.
Excludes North America except for Worldwide.
(3) Region information includes Marriott
Hotels & Resorts, Renaissance
Hotels &
Resorts, and Courtyard and excludes The Ritz-Carlton.
(4) Excludes Hawaii.
(5) Includes Hawaii.
(6) Worldwide includes international
statistics for January through August
and North
American statistics for the thirty-six weeks ending
September
9, 2005 and September 10, 2004.
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
($ in millions)
We consider lodging operating income to be a meaningful
indicator of our performance because it measures our growth in profitability
as a lodging company and enables investors to compare the operating income
related to our lodging segments to the operating income of other lodging
companies. However, lodging operating income is a non-GAAP financial measure
and is not an alternative to operating income or any other operating measure
prescribed by United States generally accepted accounting principles.
The reconciliation of operating income
to lodging operating income is as
follows:
Fiscal Year 2005
---------------------------------
First Second Third
Quarter Quarter Quarter Total
------- ------- ------- ------
Operating income as reported
$158 $41 $135
$334
Add back: Synthetic fuel
operating loss 45
36 34 115
------ ------ ------ ------
Lodging operating income
$203 $77 $169
$449
====== ====== ====== ======
Fiscal Year 2004
-----------------------------------------
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
------- ------- ------- ------- -----
Operating income as reported
$151 $118 $99
$109 $477
Add back: Synthetic fuel
operating loss
- 30
31 37 98
------ ------ ------ ------ ------
Lodging operating income
$151 $148 $130
$146 $575
====== ====== ====== ====== ======
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions, except per share amounts)
The table below details the impact on our continuing
operations of our Synthetic Fuel segment for the 2005 and 2004 third quarters.
Our management evaluates the figures presented in the "Excluding Synthetic
Fuel" columns because management expects the Synthetic Fuel segment will
no longer have a material impact on our business after the Internal Revenue
Code Section 29 synthetic fuel tax credits expire at the end of 2007 and
because the presentation reflects the results of our core lodging operations.
Management also believes that these presentations facilitate the comparison
of our results with the results of other lodging companies.
However, the figures presented in the "Excluding Synthetic
Fuel" columns are all non-GAAP financial measures, may be calculated and/or
presented differently than presentations of other companies and are not
alternatives to operating income, income from continuing operations, net
income, earnings per share or any other operating measure prescribed by
United States generally accepted accounting principles.
Third Quarter 2005
Third Quarter 2004
Continuing Operations
Continuing Operations
------------------------------ ------------------------------
Income
Income
from Synthetic Excluding from
Synthetic Excluding
Continuing Fuel Synthetic Continuing
Fuel Synthetic
Operations Impact Fuel
Operations Impact Fuel
---------- --------- --------- ---------- --------- ---------
Operating
income
(loss)
$135 $(34) $169
$99 $(31) $130
Gains and
other income
39 21
18 43
19 24
Interest
income,
(provision for
loan losses)
and (interest
expense)
(28) -
(28) 10
- 10
Equity in
earnings/
(losses)
17 -
17 (8)
- (8)
---------- --------- --------- ---------- --------- ---------
Pre-tax income
(loss)
163 (13) 176
144 (12)
156
---------- --------- --------- ---------- --------- ---------
Tax Provision
(61) (3) (58)
(57) (1)
(56)
Tax Credits
28 28
- 29
29 -
---------- --------- --------- ---------- --------- ---------
Total Tax
(Provision)/
Benefit
(33) 25 (58)
(28) 28
(56)
---------- --------- --------- ---------- --------- ---------
Income from
Continuing
Operations
before Minority
Interest
130 12
118 116
16 100
Minority
Interest
18 18
- 16
15 1
---------- --------- --------- ---------- --------- ---------
Income from
Continuing
Operations
$148 $30 $118
$132 $31
$101
========== ========= ========= ========== ========= =========
Diluted Shares 229.3
229.3 229.3 238.9
238.9 238.9
Earnings per
Share -
Diluted
$0.65 $0.13 $0.52
$0.55 $0.13 $0.42
Tax Rate
20.2%
19.6%
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions, except per share amounts)
The table below details the impact on our continuing
operations of our Synthetic Fuel segment for the 36-weeks ended September
9, 2005 and September 10, 2004. Our management evaluates the figures presented
in the "Excluding Synthetic Fuel" columns because management expects the
Synthetic Fuel segment will no longer have a material impact on our business
after the Internal Revenue Code Section 29 synthetic fuel tax credits expire
at the end of 2007 and because the presentation reflects the results of
our core lodging operations. Management also believes that these presentations
facilitate the comparison of our results with the results of other lodging
companies.
However, the figures presented in the "Excluding Synthetic
Fuel" columns are all non-GAAP financial measures, may be calculated and/or
presented differently than presentations of other companies and are not
alternatives to operating income, income from continuing operations, net
income, earnings per share or any other operating measure prescribed by
United States generally accepted accounting principles.
Third Quarter YTD 2005 Third
Quarter YTD 2004
Continuing Operations
Continuing Operations
------------------------------ ------------------------------
Income
Income
from Synthetic Excluding from
Synthetic Excluding
Continuing Fuel Synthetic Continuing
Fuel Synthetic
Operations Impact Fuel
Operations Impact Fuel
---------- --------- --------- ---------- --------- ---------
Operating
income
(loss)
$334 $(115) $449
$368 $(61) $429
Gains and
other
income
97 20
77 95
28 67
Interest
income,
(provision
for loan
losses) and
(interest
expense)
(32) -
(32) 29
- 29
Equity in
earnings/
(losses)
18 -
18 (37)
(28) (9)
---------- --------- --------- ---------- --------- ---------
Pre-tax income
(loss)
417 (95) 512
455 (61)
516
---------- --------- --------- ---------- --------- ---------
Tax
(Provision)/
Benefit
(152) 21 (173)
(172) 12
(184)
Tax Credits
134 134
- 93
93 -
---------- --------- --------- ---------- --------- ---------
Total Tax
(Provision)/
Benefit
(18) 155 (173)
(79) 105 (184)
---------- --------- --------- ---------- --------- ---------
Income from
Continuing
Operations
before Minority
Interest
399 60
339 376
44 332
Minority
Interest
32 32
- 30
29 1
---------- --------- --------- ---------- --------- ---------
Income from
Continuing
Operations
$431 $92 $339
$406 $73
$333
========== ========= ========= ========== ========= =========
Diluted Shares 235.3
235.3 235.3 240.9
240.9 240.9
Earnings per
Share -
Diluted
$1.83 $0.39 $1.44
$1.69 $0.30 $1.39
Tax Rate
4.3%
17.4%
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions, except per share amounts)
The table below details the impact on our continuing
operations of the $17 million leveraged lease impairment charge recorded
in the 2005 third quarter which was associated with the impairment of our
one investment in a leveraged lease. We do not consider the leveraged lease
investment to be related to our core business.
Our management evaluates the figures in the "Excluding
Leveraged Lease Charge" column because they allow for year-over-year comparisons
relative to our on-going operations before the material charge and believes
that this presentation facilitates the comparison of our results with the
results of other lodging companies. Management also evaluates income- related
financial measures that exclude the leveraged lease impairment charge in
order to better assess the period-over-period performance of our core operating
businesses.
However, the figures presented in the "Excluding Leveraged
Lease Charge" column are all non-GAAP financial measures, may be calculated
and/or presented differently than presentations of other companies, and
are not alternatives to operating income, income from continuing operations,
net income, earnings per share or any other operating measure prescribed
by United States generally accepted accounting principles.
Twelve weeks ending
Twelve weeks ending
September 9, 2005
September 10, 2004
----------------------------- -----------------------------
Income
Excluding Income
Excluding
from Leveraged Leveraged from
Leveraged Leveraged
Continuing Lease Lease Continuing
Lease Lease
Operations Charge Charge Operations
Charge Charge
---------- -------- -------- ---------- -------- ---------
Operating income $135
$- $135
$99 $-
$99
Gains and
other income
39 -
39 43
- 43
Interest
income,
(provision for
loan losses)
and (interest
expense)
(28) (17) (11)
10 -
10
Equity in
earnings/
(losses)
17 -
17 (8)
- (8)
---------- -------- -------- ---------- -------- ---------
Pre-tax income
(loss)
163 (17) 180
144 -
144
---------- -------- -------- ---------- -------- ---------
Tax
(Provision)/
Benefit
(61) 6
(67) (57)
- (57)
Tax Credits
28 -
28 29
- 29
---------- -------- -------- ---------- -------- ---------
Total Tax
(Provision)/
Benefit
(33) 6
(39) (28)
- (28)
---------- -------- -------- ---------- -------- ---------
Income (Loss)
from Continuing
Operations
before Minority
Interest
130 (11) 141
116 -
116
Minority Interest
18 -
18 16
- 16
---------- -------- -------- ---------- -------- ---------
Income (Loss)
from Continuing
Operations
$148 $(11) $159
$132 -
$132
========== ======== ======== ========== ======== =========
Diluted Shares 229.3
229.3 229.3 238.9
238.9 238.9
Earnings/(Loss)
per Share -
Diluted
$0.65 ($0.05) $0.70
$0.55 -
$0.55
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions, except per share amounts)
The table below details the impact on our continuing
operations of the $17 million leveraged lease impairment charge recorded
in the 2005 third quarter which was associated with the impairment of our
one investment in a leveraged lease. We do not consider the leveraged lease
investment to be related to our core business.
Our management evaluates the figures in the "Excluding
Leveraged Lease Charge" column because they allow for year-over-year comparisons
relative to our on-going operations before the material charge and believes
that this presentation facilitates the comparison of our results with the
results of other lodging companies. Management also evaluates income-related
financial measures that exclude the leveraged lease impairment charge in
order to better assess the period-over-period performance of our core operating
businesses.
However, the figures presented in the "Excluding Leveraged
Lease Charge" column are all non-GAAP financial measures, may be calculated
and/or presented differently than presentations of other companies, and
are not alternatives to operating income, income from continuing operations,
net income, earnings per share or any other operating measure prescribed
by United States generally accepted accounting principles.
Thirty-six weeks ending September 9, 2005
--------------------------------------------
Excluding
Income
CTF and
from CTF
Leveraged Leveraged
Continuing Transaction Lease
Lease
Operations Charge Charge
Charges
---------- ---------- --------- ---------
Operating income (loss)
$334 $(94)
$- $428
Gains and other income
97 -
- 97
Interest income,
(provision for loan losses)
and (interest expense)
(32) -
(17) (15)
Equity in earnings
18 -
- 18
---------- ---------- --------- ---------
Pre-tax income (loss)
417 (94)
(17) 528
---------- ---------- --------- ---------
Tax (Provision)/Benefit
(152) 32
6 (190)
Tax Credits
134 -
- 134
---------- ---------- --------- ---------
Total Tax (Provision)/ Benefit
(18) 32
6 (56)
---------- ---------- --------- ---------
Income (Loss) from Continuing
Operations before
Minority Interest
399 (62)
(11) 472
Minority Interest
32 -
- 32
---------- ---------- --------- ---------
Income (Loss) from Continuing
Operations
$431 $(62)
$(11) $504
========== ========== ========= =========
Diluted Shares
235.3 235.3
235.3 235.3
Earnings/(Loss) per
Share - Diluted
$1.83 ($0.26) ($0.05)
$2.14
Thirty-six weeks ending September 10, 2004
--------------------------------------------
Excluding
Income
CTF and
from CTF
Leveraged Leveraged
Continuing Transaction Lease
Lease
Operations Charge Charge
Charges
---------- ---------- --------- ---------
Operating income
$368 $-
$- $368
Gains and other income
95 -
- 95
Interest income,
(provision for loan
losses) and (interest
expense)
29 -
- 29
Equity in losses
(37) -
- (37)
---------- ---------- --------- ---------
Pre-tax income
455 -
- 455
Tax Provision
(172) -
- (172)
Tax Credits
93 -
- 93
---------- ---------- --------- ---------
Total Tax Provision
(79) -
- (79)
---------- ---------- --------- ---------
Income from Continuing
Operations before Minority
Interest
376 -
- 376
Minority Interest
30 -
- 30
---------- ---------- --------- ---------
Income from Continuing
Operations
$406 $-
$- $406
========== ========== ========= =========
Diluted Shares
240.9 240.9
240.9 240.9
Earnings per Share - Diluted
$1.69 -
- $1.69
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure
EBITDA
($ in millions)
Our management considers earnings before interest, taxes,
depreciation and amortization (EBITDA) to be an indicator of operating
performance because it can be used to measure our ability to service debt,
fund capital expenditures, and expand our business.
In the 2005 second quarter we recorded a $94 million
charge associated with the agreements we entered into with CTF Holdings
Ltd. ("the CTF transaction"). The $94 million charge was primarily non-cash
and due to the write-off of deferred contract acquisition costs associated
with the termination of management agreements. In addition, we incurred
a material charge of $17 million in the 2005 third quarter associated with
the impairment of our one investment in a leveraged lease. We do not consider
the leveraged lease investment to be related to our core business. Management
expects the Synthetic Fuel segment will no longer have a material impact
on our business after the Internal Revenue Code Section 29 synthetic fuel
tax credits expire at the end of 2007.
Management evaluates Adjusted EBITDA which excludes the
leveraged lease impairment charge, discontinued operations and the impact
of our Synthetic Fuel segment in order to better assess the period-over-period
performance of our on-going core operating businesses. Management evaluates
Adjusted EBITDA which also excludes the CTF transaction charge in order
to better assess the Company's period-over-period performance of our lodging
operations in light of the fact that the CTF transaction charge does not
reflect the fact that new management agreements entered into as part of
the CTF transaction substantially replaced the old management agreements
the termination of which makes up the bulk of the CTF transaction charge.
Management also believes that these presentations facilitate the comparison
of our results with the results of other lodging companies.
However, EBITDA and Adjusted EBITDA
are non-GAAP financial measures, may
be calculated and/or presented differently than presentations
of other
companies, and are not alternatives to operating income,
income from
continuing operations, net income, cash flow from operations,
or any other
operating measure prescribed by United States generally
accepted accounting
principles.
Fiscal Year 2005
----------------------------------
First Second Third
Quarter Quarter Quarter Total
------- ------- ------- ------
Net income
$145 $138 $149
$432
Interest expense
24 21
24 69
Tax provision/(benefit) from
continuing operations
5 (20) 33
18
Tax provision from discontinued
operations
- -
1 1
Depreciation(1)
30 29
34 93
Amortization
7 7
7 21
Interest expense from unconsolidated
joint ventures
11 6
4 21
Depreciation and amortization from
unconsolidated joint ventures
12 9
7 28
------- ------- ------- ------
EBITDA
$234 $190 $259
$683
Synthetic fuel adjustment
42 21
(6) 57
Pre-tax gain discontinued operations
- -
(2) (2)
Non-recurring charges -
CTF acquisition charge
- 94
- 94
Leveraged lease charge
- -
17 17
------- ------- ------- ------
Adjusted EBITDA
$276 $305 $268
$849
======= ======= ======= ======
Increase over 2004 Adjusted EBITDA
14% 9%
12% 12%
The following items make up the
synthetic fuel adjustment:
Pre-tax synthetic fuel operating
losses
$54 $28 $14
$96
Pre-tax minority interest - synthetic
fuel
(10) (5) (18)
(33)
Synthetic fuel depreciation
(2) (2) (2)
(6)
------- ------- ------- ------
EBITDA adjustment for synthetic fuel
$42 $21 $(6)
$57
======= ======= ======= ======
(1) Does not include depreciation reimbursed
by third party owners.
Fiscal Year 2004
-----------------------------------------
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
------- ------- ------- ------- -----
Net income
$114 $160 $133
$189 $596
Interest expense
22 24
23 30
99
Tax provision continuing
operations
18 33
28 21 100
Tax provision discontinued
operations
- -
1 -
1
Depreciation
32 29
32 40 133
Amortization
7 8
7 11
33
Interest expense from
unconsolidated joint ventures
10 11
9 15
45
Depreciation and amortization
from unconsolidated joint
ventures
13 9
13 17
52
------- ------- ------- ------- -----
EBITDA
$216 $274 $246
$323 $1,059
Synthetic fuel adjustment
28 5
(6) 21 48
Pre-tax gain discontinued
operations
(1) -
(1) (1) (3)
------- ------- ------- ------- -----
Adjusted EBITDA
$243 $279 $239
$343 $1,104
======= ======= ======= ======= =====
The following items make up the
synthetic fuel adjustment:
Pre-tax synthetic fuel operating
losses
$- $21 $12
$37 $70
Pre-tax synthetic fuel equity
losses
28 -
- -
28
Pre-tax minority interest -
synthetic fuel
- (14) (15)
(11) (40)
Synthetic fuel depreciation
- (2)
(3) (5) (10)
------- ------- ------- ------- -----
EBITDA adjustment for
synthetic fuel
$28 $5
$(6) $21 $48
======= ======= ======= ======= =====
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions, except per share amounts)
The following reconciles the non-GAAP estimates for the
2005 fourth quarter, full year 2005 and full year 2006 included in the
press release to the most directly comparable GAAP measure.
Estimated
Full Year 2005
--------------
General, administrative and other
expense
$742
Less CTF transaction charge
(94)
--------------
General, administrative and other
expense
excluding the CTF transaction
charge
$648
==============
Range
-------------------------------
Estimated Estimated
Full Year 2005 Full Year 2005
-------------- --------------
Lodging operating income
$699
$709
Add back CTF transaction charge
94
94
-------------- --------------
Lodging operating income excluding
the CTF transaction charge
$793
$803
============== ==============
Estimated Fourth Estimated
Quarter 2005 Full Year 2005
---------------- --------------
Gains and other income
$65
$160
Less synthetic fuel gains and other
income
(10)
(30)
---------------- --------------
Gains and other income, excluding
synthetic fuel gains and other
income
$55
$130
================ ==============
Estimated
Full Year 2005
--------------
Interest expense and provision for
loan
losses, net of interest income
$57
Add back leveraged lease impairment
charge
(17)
--------------
Interest expense and provision for
loan
losses, net of interest income,
excluding
the leveraged lease impairment
charge
$40
==============
Range
Range
-------------------- --------------------
Estimated Estimated
Fourth Fourth Estimated
Estimated
Quarter Quarter Full Year Full
Year
2005 2005
2005 2005
--------- --------- --------- ---------
Diluted earnings per share
from continuing operations
$0.95 $0.98
$2.78 $2.81
Add back eps impact of
leveraged lease impairment
charge
- -
0.05 0.05
Add back eps impact of CTF
transaction charge
- -
0.26 0.26
--------- --------- --------- ---------
Diluted earnings per share
from continuing operations
excluding the eps impact of
both the leveraged lease
impairment charge and the
CTF transaction charge
0.95 0.98
3.09 3.12
Less the eps impact of the
synthetic fuel segment
(0.12) (0.12) (0.51)
(0.51)
--------- --------- --------- ---------
Diluted earnings per share
from continuing operations
excluding the eps impact of
the leveraged lease
impairment charge, the CTF
transaction charge, and the
synthetic fuel segment
$0.83 $0.86
$2.58 $2.61
========= ========= ========= =========
Range
--------------------------------
Estimated Estimated
Full Year 2006 Full Year 2006
-------------- --------------
Diluted earnings per share from
continuing operations
$2.87
$2.97
Add back eps impact of the charge
associated with FAS 123 ( R)
0.13
0.13
-------------- --------------
Diluted earnings per share from
continuing operations excluding
the
eps impact of the FAS 123 ®
charge $3.00
$3.10
============== ============== |