BETHESDA,
Md., Feb. 19, 2013-- Marriott
International, Inc. (NYSE: MAR) today reported its fourth quarter and full
year 2012 results, including the following highlights:
- Fourth quarter diluted EPS totaled $0.56, a 22 percent increase over prior year
adjusted results. Full year 2012 diluted EPS increased 31 percent over
2011 adjusted results to $1.72;
- North American comparable systemwide REVPAR rose
5.9 percent in the fourth quarter and 6.4 percent for full year 2012;
- On a constant dollar basis, worldwide comparable
systemwide REVPAR rose 5.2 percent in the fourth quarter and 6.1
percent for full year 2012;
- Worldwide comparable company-operated house
profit margins increased 90 basis points in the fourth quarter and 120
basis points for the full year;
- At year-end, the company's worldwide pipeline of
hotels under construction, awaiting conversion or approved for
development increased to nearly 130,000 rooms, including almost 59,000
rooms outside North America;
- Over 27,000 rooms were added to the system in
2012. In the fourth quarter alone, nearly 14,000 rooms were added,
including 8,100 Gaylord-branded rooms and 2,800 rooms in international
markets. The company signed a record 57,000 rooms in 2012;
- EBITDA for full year 2012 totaled $1,146 million, a 16 percent increase over
2011 adjusted EBITDA;
- For full year 2012, Marriott repurchased 31.2
million shares of the company's common stock for $1.2
billion including 6.9 million shares for $257
million in the fourth quarter;
- For full year 2013, Marriott expects North
American and worldwide systemwide constant dollar REVPAR to increase 4
to 7 percent.
Fourth quarter 2012 net income
totaled $181 million, a 14 percent
increase compared to fourth quarter 2011 adjusted net income. Diluted
earnings per share (EPS) totaled $0.56,
a 22 percent increase from adjusted diluted EPS in the year-ago
quarter. On October 3, 2012, the company
forecasted fourth quarter diluted EPS of $0.52
to $0.56.
For the fourth quarter of 2011,
reported net income totaled $141 million
and reported diluted EPS was $0.41.
Adjusted net income and adjusted diluted EPS for the year-ago quarter
excluded $14 million pretax ($18 million after-tax and $0.05 per diluted share) of timeshare spin-off
adjustments. Timeshare spin-off adjustments included items such as the
removal of timeshare business operating results and spin-off
transaction costs, as well as the addition of license fees and other
related items as if the spin-off had occurred on the first day of
fiscal 2011. See page A-1 for fourth quarter 2011 reported results, the
timeshare spin-off adjustments and adjusted results.
Arne M.
Sorenson, president and chief executive officer of Marriott
International, said, "We were delighted with our 2012 results. Full
year earnings per share grew 31 percent over 2011 adjusted levels to $1.72 and EBITDA increased 16 percent to over $1.1 billion. We also returned over $1.3 billion to shareholders through dividends
and share repurchases.
"Worldwide international travel
increased to record levels in 2012 while hotel supply growth was low in
most markets around the world, especially in the U.S. Despite low
levels of new construction in the industry and modest economic growth
in some regions of the world, we added over 27,000 rooms to our
worldwide system in 2012, increased our worldwide systemwide REVPAR by
6 percent and increased room rates by 4 percent. Our development team
had a record year, signing more than 57,000 new rooms and increasing
our global development pipeline to nearly 130,000 rooms at year-end. To
date in 2013, we've already signed over 9,000 rooms with nearly 90
percent of those in Asia.
"Twenty percent of our room
additions in 2012 were conversions from other brands and 30 percent
came from the acquisition of the Gaylord brand. Thirty percent of all
new rooms were located in international markets. We are excited about
our new brand platforms such as the Autograph Collection and EDITION.
Now on four continents, the Autograph Collection has grown to nearly 40
hotels in less than three years. We'll soon open our London EDITION
hotel and we have six more EDITIONs in our development pipeline. Today,
our luxury brands, Ritz-Carlton, Ritz-Carlton Reserve, Bulgari, and JW
Marriott, together with our luxury lifestyle brand, EDITION, have broad
distribution with nearly 150 hotels and over 50,000 rooms.
"Our unit growth is built on our
strong brand portfolio fueled by outstanding marketing and service
engines. In 2012, our award-winning Marriott Rewards program topped 40
million members and marriott.com booked over $8
billion in property-level revenue, making it one of the largest
retail websites in the world.
"In January
2013, North American comparable company-operated REVPAR rose 8
percent. While this year is off to a strong start, we are providing a
somewhat broader and more conservative range for 2013 REVPAR growth due
to the potential effect on the travel industry of the impending federal
budget sequestration."
For the 2012 fourth quarter,
revenue per available room (REVPAR) for worldwide comparable systemwide
properties increased 5.2 percent (a 4.7 percent increase using actual
dollars).
In North
America, comparable systemwide REVPAR increased 5.9 percent in
the fourth quarter of 2012, including a 4.0 percent increase in average
daily rate. REVPAR for comparable systemwide North American
full-service and luxury hotels (including Marriott Hotels &
Resorts, The Ritz-Carlton, Renaissance Hotels and
Autograph Collection Hotels) increased 5.7 percent with a 3.4
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 6.0 percent in the fourth quarter with
a 4.4 percent increase in average daily rate.
International comparable
systemwide REVPAR rose 3.2 percent (a 0.7 percent increase using actual
dollars), including a 0.5 percent increase in average daily rate (a 1.9
percent decline using actual dollars) in the fourth quarter of 2012.
Marriott added 37 new properties
(13,982 rooms) to its worldwide lodging portfolio in the 2012 fourth
quarter, including five Gaylord properties (8,098 rooms) from the
acquisition of the brand and hotel management business. The JW Marriott
Marquis Hotel Dubai, the tallest dedicated hotel building in the world,
and Dorado Beach, a Ritz-Carlton Reserve, in Puerto
Rico were also added in the quarter while the Brown Palace Hotel
in Denver joined the Autograph
Collection. Six properties (1,398 rooms) exited the system during the
quarter. At quarter-end, the company's lodging group encompassed 3,801
properties and timeshare resorts for a total of over 660,000 rooms.
The company's worldwide pipeline
of hotels under construction, awaiting conversion or approved for
development increased to approximately 800 properties with nearly
130,000 rooms at year-end.
MARRIOTT REVENUES totaled over $3.7 billion in the 2012 fourth quarter
compared to adjusted revenues of $3.4 billion
for the fourth quarter of 2011. Base management and franchise fees rose
7 percent over prior year adjusted levels to $369
million, reflecting higher REVPAR at existing hotels and fees
from new hotels. Fourth quarter worldwide incentive management fees
increased 22 percent to $90 million
including a $3 million favorable impact
of the recognition of previously deferred fees. In the fourth quarter,
30 percent of worldwide company-managed hotels earned incentive
management fees compared to 27 percent in the year-ago quarter. For
full year 2012, 33 percent of worldwide company-managed hotels earned
incentive management fees compared to 29 percent in 2011.
Worldwide comparable
company-operated house profit margins increased 90 basis points in the
fourth quarter. North American comparable company-operated house profit
margins increased 120 basis points and house profit margins for
comparable company-operated properties outside North America increased 30 basis points
from the year-ago quarter. For full year 2012, comparable
company-operated house profit margins increased 140 basis points in North America, 90 basis points outside North America and 120 basis points
worldwide.
Owned, leased, corporate housing
and other revenue, net of direct expenses, totaled $56 million, unchanged compared to the
year-ago quarter. Improved results at owned and leased hotels and
higher credit card branding fees were largely offset by lower
termination and residential branding fees year-over-year.
GENERAL, ADMINISTRATIVE and OTHER
expenses for the 2012 fourth quarter declined 6 percent to $206 million compared to adjusted expenses of $219 million in the 2011 fourth quarter.
Fourth quarter 2012 expenses reflected routine increases in
compensation and other expenses, as well as unfavorable foreign
exchange. These were largely offset by a $6
million reversal of guarantee reserves for two hotels, as well
as lower legal and bad debt expenses. Expenses in the prior year
quarter included a $6 million write-off
of deferred contract acquisition costs, a $5
million guarantee reserve for one hotel and a $2 million loan reserve.
EQUITY IN EARNINGS (LOSSES)
totaled a $3 million loss in the quarter
compared to a $7 million loss in the
year-ago quarter. The decline in equity losses largely reflected the
sale of the Courtyard joint venture, which had losses in the fourth
quarter of 2011 and was sold in the third quarter of 2012.
EBITDA totaled $358 million in the 2012 fourth quarter, a 13
percent increase over 2011 fourth quarter adjusted EBITDA of $316 million. For full year 2012, EBITDA
totaled $1,146 million, a 16 percent
increase over 2011 adjusted EBITDA of $992
million. See page A-9 for the EBITDA and adjusted EBITDA
calculations.
BALANCE SHEET
At year-end 2012, total debt was $2,935
million and cash balances totaled $88
million, compared to $2,171 million
in debt and $102 million of cash at
year-end 2011.
COMMON STOCK
Weighted average fully diluted shares outstanding used to
calculate diluted EPS totaled 322.2 million in the 2012 fourth quarter,
compared to 346.4 million in the year-ago quarter.
The company repurchased 6.9
million shares of common stock in the fourth quarter at a cost of $257 million. For the full year 2012, Marriott
repurchased 31.2 million shares of its stock for $1.2
billion. On February 15, 2013,
the board of directors increased the company's authorization to
repurchase shares by 25 million shares to yield a total share
authorization of 34.2 million shares.
2013 OUTLOOK
The company will report its 2013 results on a calendar
basis, with fiscal quarters ending on March 31,
June 30, September
30 and December 31. The first quarter of 2013 will include 93
days compared to 84 days in the 2012 first quarter in part due to the
fact that fiscal 2012 ended on December 28,
2012. Prior year results will not be restated or reported on a pro
forma basis for the change in calendar, although REVPAR statistics will
be adjusted to calendar quarters for purposes of comparability.
For the first quarter, the company
expects comparable systemwide calendar REVPAR on a constant dollar
basis will increase 4 to 7 percent in North
America, 2 to 4 percent outside North
America and 3 to 6 percent worldwide.
The company expects first quarter
2013 operating profit could total $205 million
to $230 million, a $30 million to $55
million increase over the prior year quarter. The company
estimates that approximately $15 million to $20
million of the year-over-year operating profit increase in the
first quarter is 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
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 $1,525 million to $1,575
million, growth of 7 to 11 percent over 2012 fee revenue of $1,420 million.
The company expects owned, leased,
corporate housing and other revenue, net of expenses could total $135 million to $145 million in 2013, a 12 to
18 percent decline year-over-year. 2013 expected results reflect
tougher year-over-year comparisons due to the London Olympics,
renovations at some international leased hotels in 2013, higher
pre-opening expenses, and lower termination and residential branding
fees.
For 2013, the company anticipates
general, administrative and other expenses will total $665 million to $675 million, an increase of 3
to 5 percent over 2012 expenses of $645 million.
Given these assumptions, 2013
diluted EPS could total $1.90 to $2.05,
a 10 to 19 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 16 to 25 percent year-over-year as shown on page A-12.
|
First
Quarter 2013
|
Full
Year 2013
|
Total
fee revenue
|
$355
million to $370 million
|
$1,525
million to $1,575 million
|
Owned,
leased, corporate housing and other revenue,
net of direct expenses
|
$25
million to $30 million
|
$135
million to $145 million
|
General,
administrative and other expenses
|
$170
million to $175 million
|
$665
million to $675 million
|
Operating
income
|
$205
million to $230 million
|
$985
million to $1,055 million
|
Gains
and other income
|
Approx
$2 million
|
Approx
$10 million
|
Net
interest expense1
|
Approx
$30 million
|
Approx
$105 million
|
Equity
in earnings (losses)
|
Approx
$0 million
|
Approx
$0 million
|
Earnings
per share
|
$0.37
to $0.42
|
$1.90
to $2.05
|
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, 2013 EBITDA is expected
to increase 7 to 14 percent year-over-year as shown on page A-10.
Marriott International, Inc. (NYSE: MAR) will conduct its quarterly earnings review
for the investment community and news media on Wednesday,
February 20, 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 February 20, 2014.
The telephone dial-in number for the
conference call is 706-679-3455 and the conference ID is 78370841. A
telephone replay of the conference call will be available from 1 p.m. ET, Wednesday,
February 20, 2013 until 8 p.m. ET,
Wednesday, February 27, 2013. To
access the replay, call 404-537-3406. The conference ID for the
recording is 78370841.
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 February 19, 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 over 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
4, 2012
|
TABLE
OF CONTENTS
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|
|
|
Consolidated
Statements of Income
|
A-1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging Products
|
A-4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key
Lodging Statistics
|
A-5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
and Adjusted EBITDA
|
A-9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
Full Year Forecast
|
A-10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Operating Income Margin Excluding Adjusted Cost Reimbursements
|
A-11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
2012 EPS Excluding Gain on Courtyard JV Sale, Net of Tax
|
A-12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures
|
A-13
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
CONSOLIDATED
AND ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
|
FOURTH
QUARTER 2012 AND 2011
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
16 Weeks Ended
December 28, 2012
|
|
As
Reported
16 Weeks Ended
December 30, 2011
|
Timeshare
Spin-off
Adjustments 10
|
As
Adjusted
16 Weeks Ended
December 30, 2011**
|
|
Percent
Better (Worse)
2012 vs. Adjusted 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Base
management fees
|
$ 182
|
|
$ 183
|
$ (12)
|
$ 171
|
|
6
|
Franchise
fees
|
187
|
|
159
|
16
|
175
|
|
7
|
Incentive
management fees
|
90
|
|
74
|
-
|
74
|
|
22
|
Owned,
leased, corporate housing and other revenue 1
|
308
|
|
356
|
-
|
356
|
|
(13)
|
Timeshare
sales and services 2
|
-
|
|
238
|
(238)
|
-
|
|
-
|
Cost
reimbursements 3
|
2,990
|
|
2,683
|
(58)
|
2,625
|
|
14
|
Total Revenues
|
3,757
|
|
3,693
|
(292)
|
3,401
|
|
10
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct 4
|
252
|
|
300
|
-
|
300
|
|
16
|
Timeshare
- direct
|
-
|
|
209
|
(209)
|
-
|
|
-
|
Reimbursed
costs
|
2,990
|
|
2,683
|
(58)
|
2,625
|
|
(14)
|
General,
administrative and other 6
|
206
|
|
254
|
(35)
|
219
|
|
6
|
Total Expenses
|
3,448
|
|
3,446
|
(302)
|
3,144
|
|
(10)
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
309
|
|
247
|
10
|
257
|
|
20
|
|
|
|
|
|
|
|
|
|
(Losses)
gains and other income 7
|
(1)
|
|
4
|
(3)
|
1
|
|
(200)
|
Interest
expense
|
(41)
|
|
(47)
|
5
|
(42)
|
|
2
|
Interest
income
|
7
|
|
5
|
2
|
7
|
|
-
|
Equity
in losses 8
|
(3)
|
|
(7)
|
-
|
(7)
|
|
57
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES
|
271
|
|
202
|
14
|
216
|
|
25
|
|
|
|
|
|
|
|
|
|
(Provision)
benefit for income taxes
|
(90)
|
|
(61)
|
4
|
(57)
|
|
(58)
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$ 181
|
|
$ 141
|
$ 18
|
$ 159
|
|
14
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER SHARE - Basic
|
|
|
|
|
|
|
|
Earnings per share 9
|
$ 0.58
|
|
$ 0.42
|
$ 0.05
|
$ 0.47
|
|
23
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER SHARE - Diluted
|
|
|
|
|
|
|
|
Earnings per share 9
|
$ 0.56
|
|
$ 0.41
|
$ 0.05
|
$ 0.46
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
312.7
|
|
335.6
|
335.6
|
335.6
|
|
|
Diluted
Shares
|
322.2
|
|
346.4
|
346.4
|
346.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
page A-3 for footnote references.
|
|
A-1
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
CONSOLIDATED
AND ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
|
FULL
YEAR 2012 AND 2011
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
52 Weeks Ended
December 28, 2012
|
|
As
Reported
52 Weeks Ended
December 30, 2011
|
Timeshare
Spin-off
Adjustments10
|
Other
Charges
|
As
Adjusted
52 Weeks Ended
December 30, 2011**
|
|
Percent
Better (Worse)
2012 vs. Adjusted 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Base
management fees
|
$ 581
|
|
$ 602
|
$ (56)
|
$ -
|
$ 546
|
|
6
|
Franchise
fees
|
607
|
|
506
|
60
|
-
|
566
|
|
7
|
Incentive
management fees
|
232
|
|
195
|
-
|
-
|
195
|
|
19
|
Owned,
leased, corporate housing and other revenue 1
|
989
|
|
1,083
|
-
|
-
|
1,083
|
|
(9)
|
Timeshare
sales and services 2
|
-
|
|
1,088
|
(1,088)
|
-
|
-
|
|
-
|
Cost
reimbursements 3
|
9,405
|
|
8,843
|
(268)
|
-
|
8,575
|
|
10
|
Total Revenues
|
11,814
|
|
12,317
|
(1,352)
|
-
|
10,965
|
|
8
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct 4
|
824
|
|
943
|
-
|
-
|
943
|
|
13
|
Timeshare
- direct
|
-
|
|
929
|
(929)
|
-
|
-
|
|
-
|
Timeshare
strategy - impairment charges 5
|
-
|
|
324
|
(324)
|
-
|
-
|
|
-
|
Reimbursed
costs
|
9,405
|
|
8,843
|
(268)
|
-
|
8,575
|
|
(10)
|
General,
administrative and other 6
|
645
|
|
752
|
(99)
|
(10)
|
643
|
|
-
|
Total Expenses
|
10,874
|
|
11,791
|
(1,620)
|
(10)
|
10,161
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
940
|
|
526
|
268
|
10
|
804
|
|
17
|
|
|
|
|
|
|
|
|
|
|
Gains
(losses) and other income 7
|
42
|
|
(7)
|
(3)
|
18
|
8
|
|
425
|
Interest
expense
|
(137)
|
|
(164)
|
29
|
-
|
(135)
|
|
(1)
|
Interest
income
|
17
|
|
14
|
10
|
-
|
24
|
|
(29)
|
Equity
in losses 8
|
(13)
|
|
(13)
|
(4)
|
-
|
(17)
|
|
24
|
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES
|
849
|
|
356
|
300
|
28
|
684
|
|
24
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
(278)
|
|
(158)
|
(40)
|
(11)
|
(209)
|
|
(33)
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$ 571
|
|
$ 198
|
$ 260
|
$ 17
|
$ 475
|
|
20
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER SHARE - Basic
|
|
|
|
|
|
|
|
|
Earnings per share 9
|
$ 1.77
|
|
$ 0.56
|
$ 0.74
|
$ 0.05
|
$ 1.36
|
|
30
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
Earnings per share 9
|
$ 1.72
|
|
$ 0.55
|
$ 0.72
|
$ 0.05
|
$ 1.31
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
322.6
|
|
350.1
|
350.1
|
350.1
|
350.1
|
|
|
Diluted
Shares
|
332.9
|
|
362.3
|
362.3
|
362.3
|
362.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
page A-3 for footnote references.
|
|
A-2
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
CONSOLIDATED
AND ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for
information about our reasons for providing these alternative financial
measures and limitations on their use.
|
1
– Owned, leased, corporate housing and other revenueincludes
revenue from the properties we own or lease, termination fees, branding
fees, other revenue and revenue
from our corporate housing business through our sale of that business
on April 30, 2012.
|
2
– Timeshare sales and servicesincludes total
timeshare revenue except for base management fees and cost
reimbursements.
|
3
– Cost reimbursementsinclude reimbursements
from properties for Marriott-funded operating expenses.
|
4
– Owned, leased and corporate housing - directexpenses
include operating expenses related to our owned or leased hotels,
including lease payments, pre-opening expenses and depreciation, plus
expenses related to our former corporate housing business through our
sale of that business on April 30, 2012.
|
5
– Reflects the following 2011 third quarter
impairments: inventory $256 million, land $62 million, and other
impairments $6 million, all of which we allocated to the Timeshare
segment.
|
6
– General, administrative and other expenses
include the overhead costs we allocated to our segments, and our
corporate overhead costs and general expenses.
|
7
– Gains (losses) and other incomeincludes
gains and losses on the sale of real estate, note sales or repayments
(except timeshare note securitizations), the sale or
other-than-temporary
impairment of joint ventures and investments, debt extinguishments, and
income from cost method joint ventures.
|
8
– Equity in lossesincludes our equity in
earnings or losses of unconsolidated equity method joint ventures.
|
9
– Earnings per share plus adjustment items may not
equal earnings per share as adjusted due to rounding.
|
10
– We present our adjusted consolidated statements of
income as if our Timeshare spin-off had occurred on January 1, 2011.
|
|
A-3
|
MARRIOTT
INTERNATIONAL, INC.
|
TOTAL
LODGING PRODUCTS 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of Properties
|
|
Number
of Rooms/Suites
|
Brand
|
|
December
28, 2012
|
December
30, 2011
|
vs.
December 30, 2011
|
|
December
28, 2012
|
December
30, 2011
|
vs.
December 30, 2011
|
|
|
|
|
|
|
|
|
|
Domestic
Full-Service
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
352
|
353
|
(1)
|
|
141,677
|
142,881
|
(1,204)
|
Renaissance Hotels
|
|
79
|
80
|
(1)
|
|
28,597
|
29,229
|
(632)
|
Autograph Collection
|
|
24
|
17
|
7
|
|
6,609
|
5,207
|
1,402
|
Gaylord Hotels
|
|
5
|
-
|
5
|
|
8,098
|
-
|
8,098
|
Domestic
Limited-Service
|
|
|
|
|
|
|
|
|
Courtyard
|
|
817
|
805
|
12
|
|
114,948
|
113,413
|
1,535
|
Fairfield Inn & Suites
|
|
678
|
667
|
11
|
|
61,477
|
60,392
|
1,085
|
SpringHill Suites
|
|
297
|
285
|
12
|
|
34,844
|
33,466
|
1,378
|
Residence Inn
|
|
602
|
597
|
5
|
|
72,642
|
72,076
|
566
|
TownePlace Suites
|
|
208
|
200
|
8
|
|
20,803
|
20,048
|
755
|
International
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
206
|
202
|
4
|
|
63,240
|
62,714
|
526
|
Renaissance Hotels
|
|
76
|
74
|
2
|
|
24,692
|
23,737
|
955
|
Autograph Collection
|
|
8
|
5
|
3
|
|
1,056
|
548
|
508
|
Courtyard
|
|
112
|
108
|
4
|
|
21,605
|
21,306
|
299
|
Fairfield Inn & Suites
|
|
13
|
13
|
-
|
|
1,568
|
1,568
|
-
|
SpringHill Suites
|
|
2
|
2
|
-
|
|
299
|
299
|
-
|
Residence Inn
|
|
23
|
20
|
3
|
|
3,229
|
2,791
|
438
|
TownePlace Suites
|
|
2
|
1
|
1
|
|
278
|
105
|
173
|
Marriott Executive Apartments
|
|
25
|
23
|
2
|
|
4,066
|
3,700
|
366
|
Luxury
|
|
|
|
|
|
|
|
|
The
Ritz-Carlton - Domestic
|
|
38
|
39
|
(1)
|
|
11,357
|
11,587
|
(230)
|
The
Ritz-Carlton - International
|
|
42
|
39
|
3
|
|
12,410
|
11,996
|
414
|
Bulgari Hotels & Resorts
|
|
3
|
2
|
1
|
|
202
|
117
|
85
|
EDITION
|
|
1
|
1
|
-
|
|
78
|
78
|
-
|
The
Ritz-Carlton Residential
|
|
35
|
32
|
3
|
|
3,927
|
3,838
|
89
|
The
Ritz-Carlton Serviced Apartments
|
|
4
|
4
|
-
|
|
579
|
579
|
-
|
Unconsolidated
Joint Ventures
|
|
|
|
|
|
|
|
|
AC
Hotels by Marriott
|
|
79
|
80
|
(1)
|
|
8,736
|
8,371
|
365
|
Autograph Collection
|
|
5
|
5
|
-
|
|
348
|
350
|
(2)
|
Timeshare
|
|
65
|
64
|
1
|
|
13,029
|
12,800
|
229
|
|
|
|
|
|
|
|
|
|
Total
|
|
3,801
|
3,718
|
83
|
|
660,394
|
643,196
|
17,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Total Lodging Products as of December 30, 2011 does not include 2,166
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 that year.
|
|
A-4
|
MARRIOTT
INTERNATIONAL, INC.
|
KEY
LODGING STATISTICS
|
Constant
$
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Company-Operated International Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four
Months Ended December 31, 2012 and December 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$127.93
|
3.5%
|
|
68.6%
|
0.6%
|
pts.
|
|
$186.44
|
2.6%
|
Europe
|
|
$127.65
|
2.0%
|
|
74.1%
|
1.3%
|
pts.
|
|
$172.20
|
0.2%
|
Middle
East & Africa
|
|
$89.77
|
8.7%
|
|
66.4%
|
5.8%
|
pts.
|
|
$135.28
|
-0.8%
|
Asia
Pacific
|
|
$101.86
|
4.2%
|
|
75.0%
|
2.2%
|
pts.
|
|
$135.82
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite2
|
|
$115.17
|
3.3%
|
|
73.1%
|
1.9%
|
pts.
|
|
$157.57
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury3
|
|
$218.15
|
4.2%
|
|
64.3%
|
2.2%
|
pts.
|
|
$339.54
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International4
|
|
$126.65
|
3.5%
|
|
72.1%
|
2.0%
|
pts.
|
|
$175.64
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide5
|
|
$115.75
|
4.6%
|
|
69.9%
|
1.1%
|
pts.
|
|
$165.55
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four
Months Ended December 31, 2012 and December 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$111.50
|
3.4%
|
|
68.0%
|
1.3%
|
pts.
|
|
$163.87
|
1.4%
|
Europe
|
|
$123.81
|
1.8%
|
|
73.9%
|
1.0%
|
pts.
|
|
$167.58
|
0.5%
|
Middle
East & Africa
|
|
$87.24
|
10.1%
|
|
65.7%
|
6.0%
|
pts.
|
|
$132.77
|
0.0%
|
Asia
Pacific
|
|
$109.72
|
3.4%
|
|
75.3%
|
2.3%
|
pts.
|
|
$145.69
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite2
|
|
$114.51
|
3.0%
|
|
72.8%
|
1.8%
|
pts.
|
|
$157.39
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury3
|
|
$218.15
|
4.2%
|
|
64.3%
|
2.2%
|
pts.
|
|
$339.54
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International4
|
|
$123.78
|
3.2%
|
|
72.0%
|
1.9%
|
pts.
|
|
$171.94
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide6
|
|
$95.95
|
5.2%
|
|
68.8%
|
1.3%
|
pts.
|
|
$139.56
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
We report financial results on a period basis and
international statistics on a monthly basis. Statistics are in constant
dollars for September through December. International includes
properties located outside the United States
and Canada, except for Worldwide which includes the United States.
|
2
Regional information includes the Marriott Hotels
& Resorts, Renaissance Hotels and Courtyard brands.
|
3
International Luxury includes The Ritz-Carlton
properties outside of the United States and Canada and Bulgari
Hotels & Resorts.
|
4
Includes Regional Composite and International Luxury.
|
5
Includes international statistics for the four
calendar months ended December 31, 2012 and December 31, 2011, and
the United States statistics for the sixteen weeks ended December 28,
2012 and December 30, 2011. Includes the
Marriott Hotels & Resorts, Renaissance Hotels, The Ritz-Carlton,
Bulgari Hotels & Resorts, Residence
Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and
SpringHill Suites brands.
|
6
In addition to the brands listed in Note 5, also
includes the Autograph Collection brand.
|
|
A-5
|
MARRIOTT
INTERNATIONAL, INC.
|
KEY
LODGING STATISTICS
|
Constant
$
|
|
Comparable
Company-Operated International Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31, 2012 and December 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$137.93
|
6.9%
|
|
72.3%
|
1.2%
|
pts.
|
|
$190.75
|
5.1%
|
Europe
|
|
$124.20
|
3.0%
|
|
72.7%
|
0.2%
|
pts.
|
|
$170.72
|
2.8%
|
Middle
East & Africa
|
|
$82.25
|
8.3%
|
|
61.8%
|
5.3%
|
pts.
|
|
$133.14
|
-1.0%
|
Asia
Pacific
|
|
$97.04
|
8.4%
|
|
73.0%
|
3.7%
|
pts.
|
|
$133.01
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite2
|
|
$112.66
|
5.6%
|
|
71.9%
|
2.0%
|
pts.
|
|
$156.74
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury3
|
|
$216.34
|
5.9%
|
|
63.4%
|
1.3%
|
pts.
|
|
$341.32
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International4
|
|
$124.22
|
5.6%
|
|
70.9%
|
1.9%
|
pts.
|
|
$175.14
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide5
|
|
$115.91
|
5.9%
|
|
71.4%
|
1.4%
|
pts.
|
|
$162.39
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31, 2012 and December 31, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Region
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Caribbean
& Latin America
|
|
$120.27
|
5.3%
|
|
70.2%
|
1.3%
|
pts.
|
|
$171.32
|
3.4%
|
Europe
|
|
$119.40
|
2.8%
|
|
71.9%
|
0.2%
|
pts.
|
|
$166.02
|
2.6%
|
Middle
East & Africa
|
|
$80.37
|
9.2%
|
|
61.8%
|
5.6%
|
pts.
|
|
$130.10
|
-0.6%
|
Asia
Pacific
|
|
$102.90
|
7.6%
|
|
72.9%
|
3.6%
|
pts.
|
|
$141.17
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite2
|
|
$111.45
|
5.0%
|
|
71.2%
|
1.9%
|
pts.
|
|
$156.47
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury3
|
|
$216.34
|
5.9%
|
|
63.4%
|
1.3%
|
pts.
|
|
$341.32
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International4
|
|
$120.85
|
5.1%
|
|
70.5%
|
1.8%
|
pts.
|
|
$171.36
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide6
|
|
$97.34
|
6.1%
|
|
70.8%
|
1.5%
|
pts.
|
|
$137.49
|
3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
We report financial results on a period basis and
international statistics on a monthly basis. Statistics are in constant
dollars for January through December. International includes properties
located outside the United States and Canada, except for Worldwide
which includes the United States.
|
2
Regional information includes the Marriott Hotels
& Resorts, Renaissance Hotels and Courtyard brands.
|
3
International Luxury includes The Ritz-Carlton properties outside of
the United States and Canada and Bulgari Hotels & Resorts.
|
4
Includes Regional Composite and International Luxury.
|
5
Includes international statistics for the twelve
calendar months ended December 31, 2012 and December 31, 2011, and the
United States statistics for the fifty-two weeks ended December 28,
2012 and December 30, 2011. Includes the Marriott Hotels & Resorts,
Renaissance Hotels, The Ritz-Carlton, Bulgari Hotels & Resorts,
Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace
Suites, and SpringHill Suites brands.
|
6
In addition to the brands listed in Note 5, also
includes the Autograph Collection brand.
|
|
A-6
|
MARRIOTT
INTERNATIONAL, INC.
|
KEY
LODGING STATISTICS
|
|
Comparable
Company-Operated North American Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sixteen
Weeks Ended December 28, 2012 and December 30, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$123.86
|
5.1%
|
|
70.1%
|
1.0%
|
pts.
|
|
$176.61
|
3.5%
|
Renaissance
Hotels
|
|
$121.25
|
5.1%
|
|
70.3%
|
0.4%
|
pts.
|
|
$172.51
|
4.5%
|
Composite
North American Full-Service
|
|
$123.48
|
5.1%
|
|
70.2%
|
1.0%
|
pts.
|
|
$176.02
|
3.7%
|
The
Ritz-Carlton2
|
|
$213.79
|
4.5%
|
|
66.5%
|
0.7%
|
pts.
|
|
$321.59
|
3.4%
|
Composite
North American Full-Service & Luxury
|
|
$133.38
|
5.0%
|
|
69.7%
|
0.9%
|
pts.
|
|
$191.24
|
3.6%
|
Residence
Inn
|
|
$89.66
|
4.9%
|
|
73.1%
|
0.8%
|
pts.
|
|
$122.63
|
3.9%
|
Courtyard
|
|
$77.52
|
5.8%
|
|
65.2%
|
0.4%
|
pts.
|
|
$118.88
|
5.2%
|
TownePlace
Suites
|
|
$54.90
|
-0.1%
|
|
65.9%
|
-3.8%
|
pts.
|
|
$83.35
|
5.6%
|
SpringHill
Suites
|
|
$69.06
|
7.2%
|
|
68.5%
|
2.9%
|
pts.
|
|
$100.89
|
2.6%
|
Composite
North American Limited-Service
|
|
$79.33
|
5.6%
|
|
67.8%
|
0.5%
|
pts.
|
|
$117.06
|
4.8%
|
Composite
- All
|
|
$110.80
|
5.2%
|
|
68.9%
|
0.8%
|
pts.
|
|
$160.76
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sixteen
Weeks Ended December 28, 2012 and December 30, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$107.84
|
5.8%
|
|
67.6%
|
1.6%
|
pts.
|
|
$159.56
|
3.3%
|
Renaissance
Hotels
|
|
$105.51
|
5.8%
|
|
68.7%
|
1.0%
|
pts.
|
|
$153.50
|
4.3%
|
Autograph
Collection Hotels2
|
|
$139.84
|
7.9%
|
|
76.1%
|
4.1%
|
pts.
|
|
$183.73
|
2.2%
|
Composite
North American Full-Service
|
|
$107.78
|
5.8%
|
|
67.8%
|
1.5%
|
pts.
|
|
$158.86
|
3.5%
|
The
Ritz-Carlton2
|
|
$213.79
|
4.5%
|
|
66.5%
|
0.7%
|
pts.
|
|
$321.59
|
3.4%
|
Composite
North American Full-Service & Luxury
|
|
$114.61
|
5.7%
|
|
67.8%
|
1.5%
|
pts.
|
|
$169.15
|
3.4%
|
Residence
Inn
|
|
$90.09
|
5.4%
|
|
74.8%
|
0.9%
|
pts.
|
|
$120.50
|
4.1%
|
Courtyard
|
|
$79.31
|
6.3%
|
|
66.4%
|
0.9%
|
pts.
|
|
$119.42
|
4.8%
|
Fairfield
Inn & Suites
|
|
$60.62
|
6.0%
|
|
63.9%
|
0.9%
|
pts.
|
|
$94.92
|
4.6%
|
TownePlace
Suites
|
|
$60.54
|
3.8%
|
|
68.3%
|
-0.3%
|
pts.
|
|
$88.62
|
4.2%
|
SpringHill
Suites
|
|
$69.99
|
7.7%
|
|
68.3%
|
2.6%
|
pts.
|
|
$102.54
|
3.6%
|
Composite
North American Limited-Service
|
|
$76.01
|
6.0%
|
|
68.3%
|
1.0%
|
pts.
|
|
$111.35
|
4.4%
|
Composite
- All
|
|
$90.14
|
5.9%
|
|
68.1%
|
1.2%
|
pts.
|
|
$132.40
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Statistics include only properties located in the
United States.
|
2
Statistics for The Ritz-Carlton and Autograph
Collection are for September through December.
|
|
A-7
|
MARRIOTT
INTERNATIONAL, INC.
|
KEY
LODGING STATISTICS
|
|
Comparable
Company-Operated North American Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-two
Weeks Ended December 28, 2012 and December 30, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$124.72
|
6.1%
|
|
72.7%
|
1.8%
|
pts.
|
|
$171.48
|
3.5%
|
Renaissance
Hotels
|
|
$123.38
|
7.5%
|
|
73.6%
|
2.1%
|
pts.
|
|
$167.67
|
4.5%
|
Composite
North American Full-Service
|
|
$124.52
|
6.3%
|
|
72.9%
|
1.8%
|
pts.
|
|
$170.92
|
3.6%
|
The
Ritz-Carlton2
|
|
$223.51
|
6.1%
|
|
69.9%
|
0.8%
|
pts.
|
|
$319.57
|
4.9%
|
Composite
North American Full-Service & Luxury
|
|
$134.64
|
6.3%
|
|
72.6%
|
1.7%
|
pts.
|
|
$185.57
|
3.8%
|
Residence
Inn
|
|
$93.14
|
4.7%
|
|
75.4%
|
0.3%
|
pts.
|
|
$123.55
|
4.3%
|
Courtyard
|
|
$79.32
|
5.6%
|
|
67.7%
|
0.5%
|
pts.
|
|
$117.11
|
4.9%
|
TownePlace
Suites
|
|
$58.76
|
5.1%
|
|
70.8%
|
-0.4%
|
pts.
|
|
$83.04
|
5.6%
|
SpringHill
Suites
|
|
$72.63
|
7.0%
|
|
70.5%
|
2.8%
|
pts.
|
|
$103.04
|
2.7%
|
Composite
North American Limited-Service
|
|
$81.76
|
5.5%
|
|
70.2%
|
0.6%
|
pts.
|
|
$116.43
|
4.6%
|
Composite
- All
|
|
$112.40
|
6.0%
|
|
71.6%
|
1.2%
|
pts.
|
|
$157.05
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-two
Weeks Ended December 28, 2012 and December 30, 2011
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
Brand
|
|
2012
|
vs.
2011
|
|
2012
|
|
vs.
2011
|
|
2012
|
vs.
2011
|
Marriott
Hotels & Resorts
|
|
$110.19
|
6.4%
|
|
70.1%
|
1.8%
|
pts.
|
|
$157.17
|
3.6%
|
Renaissance
Hotels
|
|
$107.18
|
6.8%
|
|
71.2%
|
1.4%
|
pts.
|
|
$150.53
|
4.7%
|
Autograph
Collection Hotels2
|
|
$134.36
|
6.6%
|
|
76.1%
|
3.6%
|
pts.
|
|
$176.61
|
1.6%
|
Composite
North American Full-Service
|
|
$109.93
|
6.4%
|
|
70.3%
|
1.8%
|
pts.
|
|
$156.30
|
3.8%
|
The
Ritz-Carlton2
|
|
$223.51
|
6.1%
|
|
69.9%
|
0.8%
|
pts.
|
|
$319.57
|
4.9%
|
Composite
North American Full-Service & Luxury
|
|
$116.72
|
6.4%
|
|
70.3%
|
1.7%
|
pts.
|
|
$166.02
|
3.8%
|
Residence
Inn
|
|
$93.10
|
5.0%
|
|
77.2%
|
0.6%
|
pts.
|
|
$120.66
|
4.2%
|
Courtyard
|
|
$82.15
|
6.5%
|
|
69.2%
|
1.2%
|
pts.
|
|
$118.68
|
4.6%
|
Fairfield
Inn & Suites
|
|
$63.56
|
7.5%
|
|
67.3%
|
1.7%
|
pts.
|
|
$94.49
|
4.8%
|
TownePlace
Suites
|
|
$64.39
|
5.9%
|
|
72.3%
|
0.6%
|
pts.
|
|
$89.07
|
5.0%
|
SpringHill
Suites
|
|
$73.74
|
7.8%
|
|
71.0%
|
2.6%
|
pts.
|
|
$103.81
|
3.8%
|
Composite
North American Limited-Service
|
|
$79.07
|
6.3%
|
|
71.2%
|
1.3%
|
pts.
|
|
$111.12
|
4.4%
|
Composite
- All
|
|
$92.79
|
6.4%
|
|
70.8%
|
1.4%
|
pts.
|
|
$130.97
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Statistics include only properties located in the
United States.
|
2
Statistics for The Ritz-Carlton and Autograph
Collection are for January through December.
|
|
A-8
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
EBITDA
AND ADJUSTED EBITDA
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
Increase
over 2011 Adjusted EBITDA
|
9%
|
|
13%
|
|
27%
|
|
13%
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2011
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
Net
Income (loss)
|
$ 101
|
|
$ 135
|
|
$ (179)
|
|
$ 141
|
|
$ 198
|
Interest
expense
|
41
|
|
37
|
|
39
|
|
47
|
|
164
|
Tax
provision (benefit)
|
51
|
|
66
|
|
(20)
|
|
61
|
|
158
|
Depreciation
and amortization
|
35
|
|
41
|
|
40
|
|
52
|
|
168
|
Less:
Depreciation reimbursed by third-party owners
|
(4)
|
|
(3)
|
|
(4)
|
|
(4)
|
|
(15)
|
Interest
expense from unconsolidated joint ventures
|
4
|
|
4
|
|
5
|
|
5
|
|
18
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
7
|
|
7
|
|
10
|
|
30
|
EBITDA
**
|
234
|
|
287
|
|
(112)
|
|
312
|
|
721
|
|
|
|
|
|
|
|
|
|
|
Timeshare
Spin-off Adjustments
|
|
|
|
|
|
|
|
|
|
Net
Income
|
(13)
|
|
(9)
|
|
264
|
|
18
|
|
260
|
Interest
expense
|
(9)
|
|
(8)
|
|
(7)
|
|
(5)
|
|
(29)
|
Tax
provision (benefit)
|
(8)
|
|
(5)
|
|
57
|
|
(4)
|
|
40
|
Depreciation
and amortization
|
(7)
|
|
(9)
|
|
(7)
|
|
(5)
|
|
(28)
|
Total
Timeshare Spin-off Adjustments
|
(37)
|
|
(31)
|
|
307
|
|
4
|
|
243
|
|
|
|
|
|
|
|
|
|
|
Add
Back: Other charges
|
-
|
|
-
|
|
28
|
|
-
|
|
28
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA **
|
$
197
|
|
$
256
|
|
$
223
|
|
$
316
|
|
$
992
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-13 and A-14 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
|
FULL
YEAR EBITDA
|
FORECASTED
2013
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
Estimated
EBITDA
Full Year 2013
|
|
As
Reported
Full Year 2012
|
|
Net
Income
|
$ 596
|
|
$ 645
|
|
$ 571
|
|
Interest
expense
|
125
|
|
125
|
|
137
|
|
Tax
provision
|
294
|
|
315
|
|
278
|
|
Depreciation
and amortization
|
160
|
|
160
|
|
145
|
|
Less:
Depreciation reimbursed by third-party owners
|
(20)
|
|
(20)
|
|
(16)
|
|
Interest
expense from unconsolidated joint ventures
|
10
|
|
10
|
|
11
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
20
|
|
20
|
|
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 pages A-13 and A-14 for
information about our reasons for providing these alternative
financial measures and the limitations on their use.
|
|
|
|
A-10
|
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
ADJUSTED
OPERATING INCOME MARGIN EXCLUDING ADJUSTED COST REIMBURSEMENTS
|
FOURTH
QUARTER 2012 AND 2011
|
($ in
millions)
|
|
|
|
|
|
ADJUSTED
OPERATING INCOME MARGIN
|
Fourth
Quarter
2012
|
|
Fourth
Quarter
2011
|
Operating
Income
|
$ 309
|
|
$ 247
|
Timeshare
spin-off adjustments, operating income impact
|
-
|
|
10
|
Operating
Income, as adjusted **
|
$
309
|
|
$
257
|
|
|
|
|
|
|
|
|
|
|
Total
revenues as reported
|
$ 3,757
|
|
$ 3,693
|
Timeshare
spin-off adjustments
|
-
|
|
(292)
|
Total
revenues, as adjusted **
|
3,757
|
|
3,401
|
Less:
adjusted cost reimbursements **
|
(2,990)
|
|
(2,625)
|
Total
revenues as adjusted and excluding cost reimbursements **
|
$
767
|
|
$
776
|
|
|
|
|
|
Adjusted
operating income margin, excluding cost reimbursements **
|
40%
|
|
33%
|
|
|
|
|
|
|
|
|
|
**Denotes
non-GAAP financial measures. Please see pages A-13 and A-14 for
information about our reasons for providing these alternative
financial measures and the limitations on their use.
|
|
A-11
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
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
|
$
1.90
|
|
$
2.05
|
|
|
|
|
|
|
|
|
|
INCREASE
OVER 2012 DILUTED EPS
|
10%
|
|
19%
|
|
|
|
|
|
|
|
|
|
INCREASE
OVER 2012 ADJUSTED DILUTED EPS **
|
16%
|
|
25%
|
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
|
|
|
332.9
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for
information about our reasons for providing these alternative
financial measures and the limitations on their use.
|
|
A-12
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES
|
|
In our
press release and schedules, and on the related conference call, we
report certain financial measures that are not prescribed or authorized
by United States generally accepted accounting principles ("GAAP"). We
discuss management's reasons for reporting these non-GAAP measures
below, and the press release schedules reconcile the most directly
comparable GAAP measure to each non-GAAP measure that we refer to
(identified by a double asterisk on the preceding pages). Although
management evaluates and presents these non-GAAP measures for the
reasons described below, please be aware that these non-GAAP measures
have limitations and should not be considered in isolation or as a
substitute for revenue, operating income, income from continuing
operations, net income, earnings per share or any other comparable
operating measure prescribed by GAAP. In addition, we may calculate
and/or present these non-GAAP financial measures differently than
measures with the same or similar names that other companies report,
and as a result, the non-GAAP measures we report may not be comparable
to those reported by others.
Adjusted Measures that Reflect the Timeshare Spin-off as
if it had Occurred on the First Day of 2011. ("Timeshare Spin-off
Adjustments"). On November 21, 2011 we completed a spin-off of our
timeshare operations and timeshare development business through a
special tax-free dividend to our shareholders of all of the issued and
outstanding common stock of our wholly owned subsidiary Marriott
Vacations Worldwide Corporation ("MVW").
Because of our significant continuing involvement in MVW's ongoing
operations after the spin-off (by virtue of license and other
agreements between us and MVW), we continue to include our former
Timeshare segment's historical financial results for periods before the
spin-off date in our historical financial results as a component of
continuing operations. Under the license agreements we receive license
fees consisting of a fixed annual fee of $50 million (subject to a
periodic inflation adjustment), plus two percent of the gross sales
price paid to MVW for initial developer sales of interests in vacation
ownership units and residential real estate units and one percent of
the gross sales price paid to MVW for resale of interests in vacation
ownership units and residential real estate units, in each case that
are identified with or use the Marriott or Ritz-Carlton marks.
In order to perform year-over-year comparisons on a comparable basis,
management evaluates non-GAAP measures that, for certain periods before
the spin-off, assume the spin-off had occurred on the first day of
2011. The Timeshare Spin-off Adjustments remove the results of our
former Timeshare segment, assume payment by MVW of estimated license
fees ($14 million, $15 million, $15 million, and $16 million for the
2011 first through fourth quarters, respectively) and remove the
unallocated spin-off transaction costs ($1 million, $3 million, $8
million, and $22 million for the 2011 first through fourth quarters,
respectively). We have also included certain corporate items not
previously allocated to our former Timeshare segment in the Timeshare
Spin-off Adjustments. Timeshare Spin-off Adjustments totaled ($21)
million pre-tax (($13) million after-tax), ($14) million pre-tax (($9)
million after-tax), $321 million pre-tax ($264 million after-tax), and
$14 million pre-tax ($18 million after-tax) for the 2011 first through
fourth quarters, respectively.
We provide adjusted measures that reflect Timeshare Spin-off
Adjustments for illustrative and informational purposes only. These
adjusted measures are not necessarily indicative of, and we do not
purport that they represent, what our operating results would have been
had the spin-off actually occurred on the first day of 2011. This
information also does not reflect certain financial and operating
benefits we expect to realize as a result of the 2011 Timeshare
spin-off.
Adjusted Measures that Exclude 2011 Other Charges and a
2012 Gain. Management evaluates non-GAAP measures that exclude
certain 2011 charges and a 2012 gain on sale because those non-GAAP
measures allow for period-over-period comparisons of our on-going core
operations before the impact of certain significant items. These
non-GAAP measures also facilitate management's comparison of results
from our on-going operations before the impact of certain significant
items with results from other lodging companies.
2011 Other Charges. We recorded charges of $28 million pre-tax ($17
million after-tax) in the 2011 third quarter, which consisted of: (1)
an $18 million other-than-temporary impairment of an investment in
marketable securities (not allocated to any of our segments) recorded
in the "Gains (losses) and other income" caption of our Income
Statement; and (2) a $10 million charge recorded in the "General,
administrative, and other" caption of our Income Statement for the
impairment of deferred contract acquisition costs and an accounts
receivable reserve, both of which were for a Luxury segment property
whose owner filed for bankruptcy.
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 (losses) and other income" caption of our 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.
|
|
A-13
|
MARRIOTT
INTERNATIONAL, INC.
|
NON-GAAP
FINANCIAL MEASURES (cont.)
|
|
Earnings
Before Interest Expense, Taxes, Depreciation and Amortization
("EBITDA") is a financial measure that is not prescribed or
authorized by United States generally accepted accounting principles
("GAAP"), which reflects earnings excluding the impact of interest
expense, provision for income taxes, and depreciation and amortization.
We 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 the following items, each of which we describe more fully
above: (1) Timeshare Spin‐off Adjustments; (2) an adjustment for $28
million of other charges for 2011; and (3) an adjustment for a $41
million gain on the 2012 sale of an equity interest in a joint venture.
We believe that Adjusted EBITDA that excludes these items is a
meaningful measure of our operating performance because it permits
period-over-period comparisons of our ongoing core operations before
certain significant items and facilitates our comparison of results
from our ongoing operations before certain significant items 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. We
provide Adjusted EBITDA for illustrative and informational purposes
only and Adjusted EBITDA for 2011 is not necessarily indicative of, and
we do not purport that it represents, what our operating results would
have been had the Timeshare spin-off occurred on the first day of 2011.
Adjusted EBITDA for 2011 also does not reflect certain financial and
operating benefits we expect to realize as a result of the 2011
Timeshare spin-off.
Adjusted
Operating Income Margin Excluding Adjusted Cost Reimbursements. Cost
reimbursements revenue represents reimbursements we receive for costs
we incur on behalf of managed and franchised properties and relates,
predominantly, to payroll costs at managed properties where we are the
employer, but also includes reimbursements for other costs, such as
those associated with our Marriott Rewards and 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. We consider total
revenues as adjusted for Timeshare Spin-off Adjustments and operating
income as adjusted for the operating income impact of Timeshare
Spin-off Adjustments meaningful for the reasons noted above. In
calculating adjusted operating income margin we consider total revenues
as adjusted to further 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.
|
|