MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)
Twelve Weeks Ended
-------------------- Percent
June 15, June 16, Better/
2007 2006
(Worse)
-------- --------- ---------
REVENUES
Base management fees
$148 $134
10
Franchise fees
101 93
9
Incentive management fees
116 77
51
Owned, leased, corporate housing and
other revenue(1)
312 272
15
Timeshare sales and services(2)
453 371
22
Cost reimbursements(3)
1,992 1,905
5
Synthetic fuel
88 39
126
-------- ---------
Total Revenues
3,210 2,891
11
OPERATING COSTS AND EXPENSES
Owned, leased and corporate housing -
direct(4)
257 225
(14)
Timeshare - direct
331 289
(15)
Reimbursed costs
1,992 1,905
(5)
General, administrative and other(5)
207 141
(47)
Synthetic fuel
123 57
(116)
-------- ---------
Total Expenses
2,910 2,617
(11)
-------- ---------
OPERATING INCOME
300 274
9
Gains and other income (expense)(6)
(4) 8
(150)
Interest expense
(52) (30)
(73)
Interest income
6 12
(50)
(Provision for) reversal of loan
losses
- 1
(100)
Equity in earnings (losses)(7)
(1) 6
(117)
-------- ---------
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST
249 271
(8)
Provision for income taxes
(42) (85)
51
Minority interest
- -
*
-------- ---------
NET INCOME
$207 $186
11
======== =========
EARNINGS PER SHARE - Basic
$0.54 $0.45
20
======== =========
EARNINGS PER SHARE - Diluted
$0.51 $0.43
19
======== =========
Basic Shares
382.9 412.5
Diluted Shares
403.8 436.6
* 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 corporate
housing business, land
rent income and other revenue.
2 - Timeshare sales and services includes total
timeshare revenue except
for base fees, cost reimbursements,
real estate gains and joint
venture earnings.
Timeshare sales and services includes gains on the
sale of timeshare note
receivable securitizations.
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 corporate
housing business.
5 - General, administrative and other expenses
include the overhead
costs allocated to our
lodging business segments, and our corporate
overhead costs and general
expenses.
6 - Gains and other income (expense) includes
net gains on the sale of
real estate, gains on
note sales or repayments (except timeshare note
securitizations gains),
gains on the sale of joint ventures, income
from cost method joint
ventures and net earn-out payments associated
with our synthetic fuel
operations.
7 - Equity in earnings (losses) includes our equity
in earnings
(losses) of unconsolidated
joint ventures.
MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)
Twenty-Four Weeks Ended
----------------------- Percent
June 15, June 16, Better/
2007 2006
(Worse)
--------- --------- --------
REVENUES
Base management fees
$282 $261
8
Franchise fees
192 175
10
Incentive management fees
187 136
38
Owned, leased, corporate housing and
other revenue(1)
562 526
7
Timeshare sales and services(2)
822 677
21
Cost reimbursements(3)
3,913 3,725
5
Synthetic fuel
156 96
63
--------- ---------
Total Revenues
6,114 5,596
9
OPERATING COSTS AND EXPENSES
Owned, leased and corporate housing -
direct(4)
476 433
(10)
Timeshare - direct
643 529
(22)
Reimbursed costs
3,913 3,725
(5)
General, administrative and other(5)
354 291
(22)
Synthetic fuel
227 141
(61)
--------- ---------
Total Expenses
5,613 5,119
(10)
--------- ---------
OPERATING INCOME
501 477
5
Gains and other income (expense)(6)
19 42
(55)
Interest expense
(85) (57)
(49)
Interest income
9 23
(61)
(Provision for) reversal of loan
losses
- 3
(100)
Equity in earnings (losses)(7)
1 3
(67)
--------- ---------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
AND MINORITY INTEREST
445 491
(9)
Provision for income taxes
(56) (141)
60
Minority interest
- 6
(100)
--------- ---------
INCOME FROM CONTINUING OPERATIONS
389 356
9
Cumulative effect of change in
accounting principle, net of tax(8)
- (109)
100
--------- ---------
NET INCOME
$389 $247
57
========= =========
EARNINGS PER SHARE - Basic
Earnings from continuing operations
$1.01 $0.86
17
Losses from cumulative effect
of
change in accounting principle
- (0.26)
100
--------- ---------
Earnings per share
$1.01 $0.60
68
========= =========
EARNINGS PER SHARE - Diluted
Earnings from continuing
operations
$0.95 $0.81
17
Losses from cumulative effect
of
change in accounting principle
- (0.25)
100
--------- ---------
Earnings per share
$0.95 $0.56
70
========= =========
Basic Shares
385.5 412.1
Diluted Shares
407.9 438.9
1 - Owned, leased, corporate housing and other
revenue includes revenue
from the properties we
own or lease, revenue from our corporate
housing business, land
rent income and other revenue.
2 - Timeshare sales and services includes total
timeshare revenue except
for base fees, cost reimbursements,
real estate gains and joint
venture earnings.
Timeshare sales and services includes gains on the
sale of timeshare note
receivable securitizations.
3 - Cost reimbursements include reimbursements
from lodging properties
for Marriott funded operating
expenses.
4 - Owned, leased and corporate housing - direct
expenses include
operating expenses related
to our owned or leased hotels, including
lease payments, pre-opening
expenses and depreciation, plus expenses
related to our corporate
housing business.
5 - General, administrative and other expenses
include the overhead
costs allocated to our
lodging business segments and our corporate
overhead costs and general
expenses.
6 - Gains and other income (expense) includes
gains and losses on the
sale of real estate, gains
on note sales or repayments (except
timeshare note securitizations
gains), gains and losses on the sale of
joint ventures, income
from cost method joint ventures and net earn-
out payments associated
with our synthetic fuel operations.
7 - Equity in earnings (losses) includes our equity
in earnings
(losses) of unconsolidated
equity method joint ventures.
8 - Cumulative effect of change in accounting
principle, net of tax is
associated with the adoption,
in the 2006 first quarter, of Statement
of Position 04-2, "Accounting
for Real Estate Time-sharing
Transactions" which was
issued by the American Institute of Certified
Public Accountants.
MARRIOTT INTERNATIONAL, INC.
Business Segments
($ in millions)
Twelve Weeks Ended
--------------------- Percent
June 15, June 16, Better/
2007 2006
(Worse)
-------- -------- --------
REVENUES
North American Full-Service
$1,282 $1,267
1
North American Limited-Service
538 490
10
International
382 326
17
Luxury
370 329
12
Timeshare
532 427
25
-------- --------
Total lodging(1)
3,104 2,839
9
Synthetic Fuel
88 39
126
Other unallocated corporate
18 13
38
-------- --------
Total
$3,210 $2,891
11
======== ========
NET INCOME
North American Full-Service
$132 $105
26
North American Limited-Service
131 106
24
International
59 62
(5)
Luxury
18 16
13
Timeshare
107 68
57
-------- --------
Total lodging financial results(1)
447 357
25
Synthetic Fuel (after-tax)
32 4
700
Other unallocated corporate
(101) (54)
(87)
Interest income, provision for loan
losses and interest expense (excluding
Synthetic Fuel)
(43) (19)
(126)
Income taxes (excluding Synthetic Fuel)
(128) (102)
(25)
-------- --------
Total
$207 $186
11
======== ========
1 We consider lodging revenues and lodging
financial results to be
meaningful indicators of our
performance because they measure our
growth in profitability as a
lodging company and enable investors to
compare the sales and results
of our lodging operations to those of
other lodging companies.
MARRIOTT INTERNATIONAL, INC.
Business Segments
($ in millions)
Twenty-Four Weeks Ended
----------------------- Percent
June 15, June 16, Better/
2007 2006
(Worse)
--------- -------- -------
REVENUES
North American Full-Service
$2,526 $2,486
2
North American Limited-Service
1,001 942
6
International
713 601
19
Luxury
709 660
7
Timeshare
975 783
25
--------- --------
Total lodging(1)
5,924 5,472
8
Synthetic Fuel
156 96
63
Other unallocated corporate
34 28
21
--------- --------
Total
$6,114 $5,596
9
========= ========
INCOME FROM CONTINUING OPERATIONS
North American Full-Service
$246 $242
2
North American Limited-Service
218 178
22
International
109 105
4
Luxury
29 34
(15)
Timeshare
151 119
27
--------- --------
Total lodging financial results(1)
753 678
11
Synthetic Fuel (after-tax)
50
7 614
Other unallocated corporate
(133) (109)
(22)
Interest income, provision for loan
losses and interest expense (excluding
Synthetic Fuel)
(67) (33)
(103)
Income taxes (excluding Synthetic Fuel)
(214) (187)
(14)
--------- --------
Total
$389 $356
9
========= ========
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 Properties Number of Rooms/Suites
June June vs. June June June vs. June
15, 16, 16, 15,
16, 16,
Brand
2007 2006 2006 2007
2006 2006
------------------------- ---------------------------------------------
Domestic Full-Service
Marriott Hotels &
Resorts
341 340 1 135,800
135,463 337
Renaissance Hotels &
Resorts
69 67 2 25,369
25,571 (202)
Domestic Limited-Service
Courtyard
668 634 34 93,328
89,078 4,250
Fairfield Inn
513 516 (3) 45,592
46,746 (1,154)
SpringHill Suites
162 144 18 18,898
16,829 2,069
Residence Inn
508 483 25 60,462
57,810 2,652
TownePlace Suites
128 123 5 12,857
12,389 468
International
Marriott Hotels &
Resorts
180 177 3 51,967
50,796 1,171
Renaissance Hotels &
Resorts
72 69 3 23,423
22,617 806
Courtyard
72 77 (5) 13,620
13,324 296
Fairfield Inn
7 5 2
756 559 197
SpringHill Suites
1 1 -
124 124
-
Residence Inn
18 17 1
2,563 2,240 323
Marriott Executive
Apartments
18 17 1
3,005 2,804 201
Ramada
2 2 -
332 332
-
Luxury
The Ritz-Carlton -
Domestic
34 35 (1) 11,343
11,616 (273)
The Ritz-Carlton -
International
29 25 4
8,487 7,766 721
Bulgari Hotels & Resorts
2 1 1
117 58
59
The Ritz-Carlton
Residential
15 - 15
1,425 - 1,425
Timeshare(2)
Marriott Vacation Club
46 44 2 10,682
9,876 806
The Ritz-Carlton Club
-
Fractional
7 7 -
388 491 (103)
The Ritz-Carlton Club
-
Residential
2 - 2
82 -
82
Grand Residences by
Marriott - Fractional
2 3 (1)
248 313 (65)
Horizons by Marriott
Vacation Club
2 2 -
372 328 44
------------------- ------------------------
Sub Total Timeshare
59 56 3 11,772
11,008 764
------------------- ------------------------
Total
2,898 2,789 109 521,240 507,130 14,110
=================== ========================
Number of Timeshare Interval, Fractional
and Whole Ownership Resorts(2)
-----------------------------------------------------------------------
In Active
Total(3) Sales
-------- ---------
100% Company-Developed
----------------------
Marriott Vacation Club
45 24
The Ritz-Carlton Club
5 3
Grand Residences by
Marriott
2 2
Horizons by Marriott
Vacation Club
2 2
Joint Ventures
--------------
Marriott Vacation Club
1 1
The Ritz-Carlton Club
4 4
--------------------
Total
59 36
====================
1 Total Lodging Products excludes the 2,054 and
2,005 corporate
housing rental units as of June 15,
2007 and June 16, 2006,
respectively.
2 Includes products in active sales which may
not be ready for
occupancy.
3 Includes resorts that are in active sales and
those that are sold
out. Residential properties
are captured once they possess a
certificate of occupancy.
MARRIOTT INTERNATIONAL, INC.
Key Lodging Statistics
Comparable Company-Operated International Properties(1)
--------------------------------------------------------------------------
Three Months Ended May 31, 2007 and May 31, 2006
-------------------------------------------------
REVPAR Occupancy
Average Daily Rate
-------------------------------------------------
Region
2007 vs.2006 2007 vs.2006 2007
vs.2006
--------------------------------------------------------------------------
Caribbean & Latin
America
$136.75 11.2% 78.4% 0.7% pts. $174.44 10.2%
Continental Europe
$129.68 9.0% 75.8% 1.1% pts. $171.08
7.3%
United Kingdom
$146.83 5.2% 76.7% 1.3% pts. $191.32
3.5%
Middle East & Africa
$110.31 16.5% 76.8% 3.5% pts. $143.60 11.2%
Asia Pacific(2)
$117.31 8.6% 75.3% -1.8% pts. $155.79 11.1%
Regional Composite(3) $129.16
9.0% 76.5% 0.5% pts. $168.76 8.3%
International Luxury(4) $236.74 12.2%
76.0% 4.0% pts. $311.43 6.2%
Total International(5) $139.99
9.6% 76.5% 0.9% pts. $183.03 8.4%
Worldwide(6)
$129.42 6.9% 76.5% 0.2% pts. $169.08
6.7%
Comparable Systemwide International Properties(1)
--------------------------------------------------------------------------
Three Months Ended May 31, 2007 and May 31, 2006
-------------------------------------------------
REVPAR Occupancy
Average Daily Rate
-------------------------------------------------
Region
2007 vs.2006 2007 vs.2006 2007
vs.2006
--------------------------------------------------------------------------
Caribbean & Latin
America
$128.46 8.5% 77.3% 2.0% pts. $166.28
5.6%
Continental Europe
$125.61 8.3% 72.6% 0.2% pts. $173.05
8.1%
United Kingdom
$144.20 5.1% 76.2% 1.4% pts. $189.28
3.1%
Middle East & Africa
$106.87 16.5% 75.4% 3.5% pts. $141.75 11.0%
Asia Pacific(2)
$116.04 8.9% 75.8% -0.6% pts. $153.08
9.7%
Regional Composite(3) $125.41
8.6% 75.3% 0.7% pts. $166.51 7.6%
International Luxury(4) $236.74 12.2%
76.0% 4.0% pts. $311.43 6.2%
Total International(5) $134.72
9.2% 75.4% 1.0% pts. $178.73 7.7%
Worldwide(6)
$109.13 6.4% 76.0% 0.1% pts. $143.51
6.3%
1 International financial results are reported
on a period basis, while
International statistics are
reported on a monthly basis. Statistics
are in constant dollars for
March through May. Excludes North America
(except for Worldwide).
2 Does not include Hawaii.
3 Regional information includes the Marriott
Hotels & Resorts,
Renaissance Hotels & Resorts
and Courtyard brands. Includes Hawaii.
4 International Luxury includes The Ritz-Carlton
properties outside of
North America and Bulgari Hotels
& Resorts.
5 Includes Regional Composite, The Ritz-Carlton
International and Bulgari
Hotels & Resorts brands.
6 Includes international statistics for
the three calendar months ended
May 31, 2007 and May 31, 2006,
and North American statistics for the
twelve weeks ended June 15,
2007 and June 16, 2006. Includes the
Marriott Hotels & Resorts,
The Ritz-Carlton, Bulgari Hotels & Resorts,
Renaissance Hotels & Resorts,
Residence Inn, Courtyard, TownePlace
Suites, Fairfield Inn and SpringHill
Suites brands.
Marriott International, Inc.
Key Lodging Statistics
Comparable Company-Operated International Properties(1)
------------------------------------------------------------------------
Five Months Ended May 31, 2007 and May 31, 2006
-----------------------------------------------
Average Daily
REVPAR Occupancy
Rate
------------------------------------------------
Region
2007 vs.2006 2007 vs.2006
2007 vs.2006
-------------------------------------------------------------------------
Caribbean & Latin
America
$138.10 11.4% 77.8% 1.0% pts. $177.56 10.0%
Continental Europe
$116.77 9.4% 70.7% 1.5% pts. $165.22
7.1%
United Kingdom
$141.45 5.6% 74.6% 1.7% pts. $189.69
3.1%
Middle East & Africa
$106.49 18.3% 74.1% 4.4% pts. $143.78 11.3%
Asia Pacific(2)
$113.27 9.3% 74.0% -1.6% pts. $152.97 11.6%
Regional Composite(3) $123.17
9.4% 73.9% 0.7% pts. $166.61 8.3%
International Luxury(4) $222.55 12.0%
73.2% 4.0% pts. $303.90 6.0%
Total International(5) $133.17
9.9% 73.9% 1.1% pts. $180.30 8.3%
Worldwide(6)
$120.81 6.7% 72.9% -0.2% pts. $165.67
7.0%
Comparable Systemwide International Properties(1)
------------------------------------------------------------------------
Five Months Ended May 31, 2007 and May 31, 2006
-----------------------------------------------
REVPAR Occupancy
Average Daily
Rate
Region
2007 vs.2006 2007 vs.2006
2007 vs.2006
-------------------------------------------------------------------------
Caribbean & Latin
America
$127.55 11.7% 75.5% 2.2% pts. $168.89
8.4%
Continental Europe
$112.80 9.1% 67.6% 0.6% pts. $166.79
8.2%
United Kingdom
$138.99 5.5% 74.0% 1.9% pts. $187.93
2.9%
Middle East & Africa
$102.89 18.0% 72.4% 4.2% pts. $142.10 11.2%
Asia Pacific(2)
$112.08 9.2% 74.3% -0.5% pts. $150.86 10.0%
Regional Composite(3) $119.06
9.4% 72.5% 0.9% pts. $164.26 8.1%
International Luxury(4) $222.55 12.0%
73.2% 4.0% pts. $303.90 6.0%
Total International(5) $127.67
9.8% 72.5% 1.1% pts. $175.98 8.1%
Worldwide(6)
$102.12 6.2% 72.3% -0.5% pts. $141.15
6.9%
1 International financial results are reported
on a period basis, while
International statistics are
reported on a monthly basis. Statistics
are in constant dollars for
January through May. Excludes North America
(except for Worldwide).
2 Does not include Hawaii.
3 Regional information includes the Marriott
Hotels & Resorts,
Renaissance Hotels & Resorts
and Courtyard brands. Includes Hawaii.
4 International Luxury includes The Ritz-Carlton
properties outside of
North America and Bulgari Hotels
& Resorts.
5 Includes Regional Composite, The Ritz-Carlton
International and Bulgari
Hotels & Resorts brands.
6 Includes international statistics for
the five calendar months ended
May 31, 2007 and May 31, 2006,
and North American statistics for the
twenty-four weeks ended June
15, 2007 and June 16, 2006. Includes the
Marriott Hotels & Resorts,
The Ritz-Carlton, Bulgari Hotels & Resorts,
Renaissance Hotels & Resorts,
Residence Inn, Courtyard, TownePlace
Suites, Fairfield Inn and SpringHill
Suites brands.
MARRIOTT INTERNATIONAL, INC.
Key Lodging Statistics
Comparable Company-Operated North American Properties
---------------------------------------------------------------------------
Twelve Weeks Ended June 15, 2007 and June 16, 2006
--------------------------------------------------
REVPAR Occupancy Average
Daily Rate
--------------------------------------------------
Brand
2007 vs.2006 2007 vs.2006 2007
vs.2006
--------------------------------------------------------------------------
Marriott Hotels & Resorts $136.32
6.7% 76.6% 0.9% pts. $177.97 5.5%
Renaissance Hotels &
Resorts
$134.78 3.2% 76.7% -1.1% pts. $175.72 4.7%
Composite North American
Full-Service(1)
$136.09 6.2% 76.6% 0.6% pts. $177.63 5.4%
The Ritz-Carlton(2)
$269.10 7.1% 76.2% -0.1% pts. $352.95 7.3%
Composite North American
Full-Service & Luxury(3)
$150.27 6.4% 76.6% 0.5% pts. $196.24 5.7%
Residence Inn
$100.22 3.4% 80.9% -1.0% pts. $123.93 4.6%
Courtyard
$95.28 4.5% 74.3% -0.9% pts. $128.24 5.8%
TownePlace Suites
$66.67 7.6% 78.3% -1.2% pts. $85.20 9.2%
SpringHill Suites
$84.02 3.1% 77.6% -0.3% pts. $108.22 3.5%
Composite North American
Limited-Service(4)
$94.22 4.3% 76.6% -0.9% pts. $123.08 5.6%
Composite - All(5)
$124.88 5.6% 76.6% -0.1% pts. $163.11 5.9%
Comparable Systemwide North American Properties
--------------------------------------------------------------------------
Twelve Weeks Ended June 15, 2007 and June 16, 2006
REVPAR Occupancy
Average Daily
Rate
---------------------------------------------------
Brand
2007 vs.2006 2007 vs.2006 2007
vs.2006
--------------------------------------------------------------------------
Marriott Hotels & Resorts $119.79
6.1% 74.7% 1.4% pts. $160.33 4.2%
Renaissance Hotels &
Resorts
$119.16 3.4% 74.7% -1.2% pts. $159.44 5.1%
Composite North American
Full-Service(1)
$119.69 5.7% 74.7% 1.0% pts. $160.20 4.4%
The Ritz-Carlton(2)
$269.10 7.1% 76.2% -0.1% pts. $352.95 7.3%
Composite North American
Full-Service & Luxury(3)
$129.04 5.9% 74.8% 0.9% pts. $172.49 4.6%
Residence Inn
$98.69 4.7% 80.7% -1.1% pts. $122.25 6.1%
Courtyard
$94.88 5.3% 75.8% -0.6% pts. $125.15 6.2%
Fairfield Inn
$65.57 6.9% 74.7% -0.3% pts. $87.82 7.3%
TownePlace Suites
$66.28 4.3% 76.7% -2.9% pts. $86.38 8.2%
SpringHill Suites
$83.18 6.1% 77.7% -0.3% pts. $107.11 6.4%
Composite North American
Limited-Service(4)
$87.53 5.3% 77.1% -0.8% pts. $113.58 6.4%
Composite - All(5)
$103.64 5.6% 76.2% -0.1% pts. $136.03 5.8%
1 Includes the Marriott Hotels & Resorts and
Renaissance Hotels &
Resorts brands.
2 Statistics for The Ritz-Carlton are for March
through May.
3 Includes the Marriott Hotels & Resorts,
Renaissance Hotels & Resorts
and The Ritz-Carlton brands.
4 Includes the Residence Inn, Courtyard, Fairfield
Inn, TownePlace
Suites and SpringHill Suites brands.
5 Includes the Marriott Hotels & Resorts,
Renaissance Hotels & Resorts,
The Ritz-Carlton, Residence Inn, Courtyard,
Fairfield Inn, TownePlace
Suites, and SpringHill Suites brands.
MARRIOTT INTERNATIONAL, INC.
Key Lodging Statistics
Comparable Company-Operated North American Properties
--------------------------------------------------------------------------
Twenty-Four Weeks Ended June 15, 2007 and June 16, 2006
--------------------------------------------------------
Average Daily
REVPAR Occupancy
Rate
--------------------------------------------------------
Brand
2007 vs.2006 2007 vs.2006 2007
vs.2006
--------------------------------------------------------------------------
Marriott Hotels & Resorts $128.00
6.6% 72.5% 0.6% pts. $176.43 5.7%
Renaissance Hotels &
Resorts
$125.40 3.7% 73.6% -1.2% pts. $170.42 5.3%
Composite North American
Full-Service(1)
$127.61 6.2% 72.7% 0.4% pts. $175.53
5.6%
The Ritz-Carlton(2)
$259.70 7.5% 74.0% -0.5% pts. $350.86 8.2%
Composite North American
Full-Service & Luxury(3) $139.39
6.4% 72.8% 0.3% pts. $191.42 5.9%
Residence Inn
$95.46 2.4% 76.9% -2.3% pts. $124.07 5.4%
Courtyard
$90.12 4.2% 70.2% -1.5% pts. $128.47 6.5%
TownePlace Suites
$62.93 6.9% 73.5% -2.3% pts. $85.58 10.2%
SpringHill Suites
$77.95 3.2% 71.6% -1.4% pts. $108.83 5.2%
Composite North American
Limited-Service(4)
$89.20 3.8% 72.3% -1.8% pts. $123.36 6.4%
Composite - All(5)
$116.42 5.5% 72.6% -0.6% pts. $160.38 6.4%
Comparable Systemwide North American Properties
--------------------------------------------------------------------------
Twenty-Four Weeks Ended June 15, 2007 and June 16, 2006
---------------------------------------------------------
REVPAR Occupancy
Average Daily
Rate
---------------------------------------------------------
Brand
2007 vs.2006 2007 vs.2006 2007
vs.2006
--------------------------------------------------------------------------
Marriott Hotels & Resorts $114.21
5.9% 71.0% 0.5% pts. $160.90 5.2%
Renaissance Hotels &
Resorts
$112.74 3.8% 71.8% -1.3% pts. $157.04 5.7%
Composite North American
Full-Service(1)
$114.00 5.6% 71.1% 0.2% pts. $160.32
5.2%
The Ritz-Carlton(2)
$259.70 7.5% 74.0% -0.5% pts. $350.86 8.2%
Composite North American
Full-Service & Luxury(3) $121.59
5.8% 71.3% 0.2% pts. $170.64 5.5%
Residence Inn
$94.42 4.4% 77.5% -1.8% pts. $121.84 6.8%
Courtyard
$89.25 5.1% 71.7% -1.1% pts. $124.52 6.7%
Fairfield Inn
$60.45 6.2% 69.6% -0.9% pts. $86.89
7.6%
TownePlace Suites
$63.32 4.6% 72.8% -3.4% pts. $86.95
9.4%
SpringHill Suites
$78.25 5.7% 73.3% -0.9% pts. $106.73 7.0%
Composite North American
Limited-Service(4)
$82.57 5.1% 73.0% -1.3% pts. $113.15 7.0%
Composite - All(5)
$97.57 5.4% 72.3% -0.8% pts. $134.92 6.5%
1 Includes the Marriott Hotels & Resorts and
Renaissance Hotels &
Resorts brands.
2 Statistics for The Ritz-Carlton are for January
through May.
3 Includes the Marriott Hotels & Resorts,
Renaissance Hotels & Resorts
and The Ritz-Carlton brands.
4 Includes the Residence Inn, Courtyard, Fairfield
Inn, TownePlace Suites
and SpringHill Suites brands.
5 Includes the Marriott Hotels & Resorts,
Renaissance Hotels & Resorts,
The Ritz-Carlton, Residence Inn, Courtyard,
Fairfield Inn, TownePlace
Suites, and SpringHill Suites brands.
MARRIOTT INTERNATIONAL, INC.
TIMESHARE SEGMENT
($ in millions)
Segment Results
---------------
Second Second
Percent
Quarter Quarter Better
/
2007 2006
(Worse)
------- ------- --------
Base fees revenue
$10 $8
25
Timeshare sales and services
revenue, net of direct expense
122 82
49
Joint venture equity income (loss)
(1) 2
(150)
General, administrative and other
expense
(24) (24)
0
------- -------
Segment results
$107 $68
57
======= =======
Sales and Services Revenue
Second Second
Percent
Quarter Quarter Better
/
2007 2006
(Worse)
------- ------- --------
Development
$303 $238
27
Services
72 68
6
Financing
69 62
11
Other revenue
9 3
200
------- -------
Sales and
services revenue
$453 $371
22
======= =======
Contract Sales
Second Second
Percent
Quarter Quarter Better
/
2007 2006
(Worse)
------- ------- --------
Company:
Timeshare
$289 $291
(1)
Fractional
6 11
(45)
Whole-Ownership
- 1
(100)
------- -------
Total company
295 303
(3)
Joint ventures:
Timeshare
8 7
14
Fractional
21 18
17
Whole-Ownership
35 143
(76)
------- -------
Total joint
ventures
64 168
(62)
------- -------
Total contract
sales, including
joint
ventures
$359 $471
(24)
======= =======
MARRIOTT INTERNATIONAL, INC.
TIMESHARE SEGMENT
($ in millions)
Segment Results
---------------
Percent
YTD YTD
Better /
2007 2006
(Worse)
------- ------- --------
Base fees revenue
$20 $16
25
Timeshare sales and services
revenue, net of direct expense
179 148
21
Joint venture equity income (loss)
(1) 1
(200)
General, administrative and other
expense
(47) (46)
(2)
------- -------
Segment results
$151 $119
27
======= =======
Sales and Services Revenue
--------------------------
Percent
YTD YTD
Better /
2007 2006
(Worse)
------- ------- --------
Development
$567 $453
25
Services
148 137
8
Financing
92 81
14
Other revenue
15 6
150
------- -------
Sales and
services revenue
$822 $677
21
======= =======
Contract Sales
--------------
Percent
YTD YTD
Better /
2007 2006
(Worse)
------- ------- --------
Company:
Timeshare
$564 $579
(3)
Fractional
15 19
(21)
Whole-Ownership
- 3
(100)
------- -------
Total company
579 601
(4)
Joint ventures:
Timeshare
16 13
23
Fractional
39 19
105
Whole-Ownership
51 148
(66)
------- -------
Total joint
ventures
106 180
(41)
------- -------
Total contract
sales, including
joint
ventures
$685 $781
(12)
======= =======
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measures
In our press release and schedules, and 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 tables on the following pages reconcile the most directly comparable
GAAP measures to the non-GAAP measures (identified by a double asterisk
on the following pages) that we refer to in our press release. Although
management evaluates and presents these non-GAAP measures for the reasons
described below, please be aware that these non-GAAP measures are not alternatives
to revenue, operating income, income from continuing operations, net income,
earnings per share or any other comparable operating measure prescribed
by GAAP. In addition, these non-GAAP financial measures may be calculated
and/or presented differently than measures with the same or similar names
that are reported by other companies, and as a result, the non-GAAP measures
we report may not be comparable to those reported by others.
Synthetic Fuel. We do not consider the Synthetic Fuel
segment to be related to our core business, which is lodging. In addition,
management expects the Synthetic Fuel segment will no longer have a material
impact on our business after the end of 2007, when the Internal Revenue
Code provision which provides for synthetic fuel tax credits expires. Accordingly,
our management evaluates non-GAAP measures which exclude the impact of
our Synthetic Fuel segment because those measures allow for period-over-period
comparisons of our on-going core lodging operations. In addition, these
non- GAAP measures facilitate management's comparison of our results with
the results of other lodging companies.
ESOP Settlement Charge. Management evaluates non-GAAP
measures that exclude the charge associated with the settlement of issues
raised during the IRS' and Department of Labor's examination of the employee
stock ownership plan ("ESOP") feature of our Employees' Profit Sharing,
Retirement and Savings Plan and Trust because these measures allow for
period-over-period comparisons relative to our on-going operations before
material charges. Additionally, these non-GAAP measures facilitate management's
comparison of our results relative to on-going operations before material
charges with that of other lodging companies. The settlement resulted in
an after tax charge of $54 million reflecting $35 million of excise taxes
(impacting General, Administration, and Other Expenses), $13 million of
interest expense on those excise taxes and $6 million of income tax expense
primarily reflecting additional interest.
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) and Adjusted EBITDA. Our management considers earnings before
interest, taxes, depreciation and amortization 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. For the reasons noted
above in the "Synthetic Fuel" and "ESOP" captions, our management also
evaluates Adjusted EBITDA which excludes the Synthetic Fuel segment and
the second quarter 2007 $35 million charge for excise taxes associated
with the ESOP settlement.
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
Measures that Exclude Synthetic Fuel
(in millions, except per share amounts)
Second Quarter 2007 Second Quarter 2006 Percent
------------------- ------------------- Better/
(Worse)
As Synth- Ex- As
Synth- Ex- Ex-
Report- etic clud- Report- etic clud- clud-
ed Fuel ing
ed Fuel ing ing
Impact Synth- Impact Synth- Synth-
etic
etic etic
Fuel**
Fuel** Fuel
------ ------ ----- ----- ------ ----- -----
Operating income (loss)
$300 $(35) $335 $274 $(18)
$292 15
Gains and other income
(expense)
(4) (16) 12
8 3 5
140
Interest income, provision
for loan losses and
interest expense
(46) (3) (43) (17)
2 (19) (126)
Equity in earnings
(losses)
(1) - (1)
6 - 6
(117)
------ ------ ----- ----- ------ -----
Income (losses) before
income taxes and minority
interest
249 (54) 303 271
(13) 284 7
------ ------ ----- ----- ------ -----
Tax (provision) benefit
(108) 20 (128) (96)
6 (102) (25)
Tax credits
66 66 -
11 11 -
-
------ ------ ----- ----- ------ -----
Total tax (provision)
benefit
(42) 86 (128) (85)
17 (102) (25)
------ ------ ----- ----- ------ -----
Minority interest
- - -
- -
- *
------ ------ ----- ----- ------ -----
Net Income
$207 $32 $175 $186
$4 $182 (4)
====== ====== ====== ===== ====== =====
Diluted shares
403.8 403.8 403.8 436.6 436.6 436.6
Earnings per share -
diluted
$0.51 $0.08 $0.43 $0.43 $0.01 $0.42
2
Tax rate
16.9% 42.2% 31.4%
35.9%
* Percentage not meaningful.
** Denotes non-GAAP financial measures.
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
Measures that Exclude Synthetic Fuel
(in millions, except per share amounts)
Second Quarter Second Quarter
Percent
YTD 2007
YTD 2006 Better/
-------------------- ------------------(Worse)
As Synth- Ex- As
Synth- Ex- Ex-
Report- etic clud- Report- etic clud- clud-
ed Fuel ing
ed Fuel ing ing
Impact Synth- Impact Synth- Synth-
etic
etic etic
Fuel**
Fuel** Fuel
------ ------ ----- ----- ------ ----- -----
Operating income (loss)
$501 $(71) $572 $477 $(45)
$522 10
Gains and other income
(expense)
19 (28) 47
42 (1) 43
9
Interest income, provision
for loan losses and
interest expense
(76) (9) (67) (31)
2 (33) (103)
Equity in earnings (losses)
1 - 1
3 - 3
(67)
------ ------ ----- ----- ------ -----
Income (losses) from
continuing operations
before income taxes and
minority interest
445 (108) 553 491
(44) 535 3
------ ------ ----- ---- ------ -----
Tax (provision) benefit
(175) 39 (214) (173)
14 (187) (14)
Tax credits
119 119 -
32 32 -
*
------ ------ ----- ---- ------ -----
Total tax (provision)
benefit
(56) 158 (214) (141) 46
(187) (14)
------ ------ ----- ---- ------ -----
Minority interest
- - -
6 5 1
(100)
------ ------ ----- ---- ------ -----
Income from continuing
operations
$389 $50 $339 $356
$7 $349 (3)
====== ====== ===== ==== ====== =====
Diluted shares
407.9 407.9 407.9 438.9 438.9 438.9
Earnings per share from
continuing
operations - diluted
$0.95 $0.12 $0.83 $0.81 $0.02 $0.79
5
Tax rate
12.6% 38.7% 28.7%
35.0%
* Percentage not meaningful.
** Denotes non-GAAP financial measures.
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
Measures
that Exclude Synthetic Fuel and the ESOP Settlement
(in millions, except per share amounts)
Second Quarter 2007
--------------------------------------
Excluding
Synthetic
Fuel and
Synthetic the
ESOP
As Fuel ESOP
Settle-
Reported Impact Settlement ment**
-------- ------- ---------- --------
Operating income (loss)
$300 $(35) $(35)
$370
Gains and other income (expense)
(4) (16)
- 12
Interest income, provision for loan
losses and interest expense
(46) (3) (13)
(30)
Equity in earnings (losses)
(1) -
- (1)
-------- ------- ---------- --------
Income (losses) operations before
income taxes and minority interest
249 (54) (48)
351
-------- ------- ---------- --------
Tax (provision) benefit
(108) 20
(6) (122)
Tax credits
66 66
- -
-------- ------- ---------- --------
Total tax (provision) benefit
(42) 86
(6) (122)
-------- ------- ---------- --------
Minority interest
- -
- -
-------- ------- ---------- --------
Net Income
$207 $32 $(54)
$229
======== ======= ========== ========
Diluted shares
403.8 403.8 403.8
403.8
Earnings per share - diluted(1)
$0.51 $0.08 $(0.13) $0.57
Tax rate
16.9%
34.8%
** Denotes non-GAAP financial measures.
1 Earnings per share does not
crossfoot due to rounding.
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure
EBITDA and Adjusted EBITDA
($ in millions)
Fiscal Year 2007
---------------------
First Second
Quarter Quarter Total
------- ------- -----
Net income
$182 $207 $389
Interest expense
33 52 85
Tax provision
14 42 56
Depreciation and amortization
46 45 91
Less: Depreciation reimbursed by
third-party owners
(4) (4) (8)
Interest expense from unconsolidated
joint ventures
5 5 10
Depreciation and amortization from
unconsolidated
joint ventures
6 7 13
------- ------- -----
EBITDA**
$282 $354 $636
Synthetic Fuel adjustment
52 52 104
ESOP settlement - Excise Tax
- 35 35
------- ------- -----
Adjusted EBITDA**
$334 $441 $775
======= ======= =====
Increase (Decrease) over 2006
Adjusted EBITDA
3% 21% 13%
The following items make up the
Synthetic Fuel adjustment:
Pre-tax Synthetic Fuel operating
losses (income)
$54 $54 $108
Pre-tax minority interest - Synthetic
Fuel
- - -
Synthetic Fuel depreciation
(2) (2) (4)
------- ------- -----
EBITDA adjustment for Synthetic Fuel
$52 $52 $104
======= ======= =====
Fiscal Year 2006
-------------------------------------
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
------- ------- ------- ------- -----
Net income
$61 $186 $141 $220
$608
Cumulative effect of change in
accounting principle
173 - -
- 173
Interest expense
27 30 29
38 124
Tax provision (benefit)
56 85 82
63 286
Tax benefit from cumulative effect of
change in accounting principle
(64) - -
- (64)
Depreciation and amortization
40 42 44
62 188
Less: Depreciation reimbursed by
third-party owners
(4) (4) (4) (6)
(18)
Interest expense from unconsolidated
joint ventures
5 6 5
7 23
Depreciation and amortization from
unconsolidated
joint ventures
6 7 7
9 29
------- ------ ----- ----- -------
EBITDA**
$300 $352 $304 $393 $1,349
Synthetic Fuel adjustment
24 11 (4)
44 75
------- ------ ----- ----- -------
Adjusted EBITDA**
$324 $363 $300 $437 $1,424
======= ====== ===== ===== =======
The following items make up the
Synthetic Fuel adjustment:
Pre-tax Synthetic Fuel operating
losses (income)
$31 $13 $(2) $53
$95
Pre-tax minority interest - Synthetic
Fuel
(5) - -
(1) (6)
Synthetic Fuel depreciation
(2) (2) (2) (8)
(14)
------- ------ ----- ----- -------
EBITDA adjustment for Synthetic Fuel
$24 $11 $(4) $44
$75
======= ====== ===== ===== =======
** Denotes non-GAAP financial measures. |