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MARRIOTT INTERNATIONAL REPORTS NET INCOME FOR 1993 THIRD QUARTER

 WASHINGTON, Oct. 21 /PRNewswire/ -- Marriott International, Inc. (NYSE: MAR), in its first earnings release since distribution of the company's common stock to shareholders of Marriott Corporation in a special dividend effective Oct. 8, 1993, today reported a solid gain in net income for the third quarter ended Sept. 10, 1993.
 J.W. Marriott Jr., chairman and president of Marriott International, said that results for the 1993 third quarter reflected improved overall performance in both the company's lodging and contract services groups. He said sales increases were achieved in all businesses.
 Because Marriott International became a public company on Oct. 8, 1993, its operating results are presented both on a pro forma basis and on an historical basis. The pro forma results assume that the distribution of Marriott International common stock and related transactions occurred at the beginning of the respective periods and are shown to give an indication of Marriott International's performance as if it had been an independent company during the periods presented.
 Pro forma earnings per share for the 1993 third quarter were 24 cents, compared to 18 cents in the 1992 period. Excluding the impact of the non-comparable items discussed below, pro forma earnings per share increased 18 percent in the 1993 quarter.
 On a pro forma basis, Marriott International had earnings per share (before the cumulative effect of an income tax accounting change) of 85 cents in the 1993 nine months vs. 71 cents last year. Pro forma earnings per share were up 16 percent from 1992 levels, excluding noncomparable items in the first nine months of both years.
 Reviewing results on a pro forma basis for Marriott International operations:
 Lodging operations reported 13 percent higher operating profit, on a 3 percent sales gain in the 1993 third quarter. Results benefited from strong growth for the ownership resorts division, profit realized in connection with the disposition of an equity interest in an international hotel and higher sales and occupancy for comparable units in all four lodging product lines.
 Marriott Hotels, Resorts and Suites, the company's full-service lodging division, posted a gain in occupancy for comparable units of more than 2 percentage points for the 1993 third quarter -- to the upper 70s -- while average room rates were in line with year-earlier levels. Higher sales reflected increased demand, especially in the transient and group meeting segments.
 Courtyard, Marriott's moderately priced lodging product, posted over 2 percentage points higher occupancy for comparable units -- to the mid- 80s -- aided by strong weekend business. Growth in average room rates exceeded inflation.
 Residence Inn, the company's extended stay product, achieved more than 2 percentage points higher occupancy for comparable units -- to the high 80s -- benefiting from continued promotion of weekend business. Average room rates were slightly above 1992.
 Fairfield Inn, Marriott's economy lodging product, reported nearly 3 percentage points higher occupancy for comparable units -- to the upper 80s -- while average room rate growth exceeded inflation. A complimentary breakfast program rolled out earlier in 1993 helped boost comparable unit sales.
 Marriott Ownership Resorts, the company's timeshare division, posted substantial increases in sales and operating profits in the 1993 third quarter, benefiting from strong sales at several resort properties, and the impact of new national marketing programs.
 Contract Services operations reported 40 percent higher operating profit on a 3 percent sales gain.
 Marriott Management Services posted slightly higher sales for the 1993 third quarter, and strong overall profit growth. A profit increase in the health care product line was generated by comparable units and new business. Results for other key product lines -- including corporate services, higher education and school services -- were unchanged.
 Marriott Senior Living Services reported increased sales in the 1993 quarter, while operating losses narrowed substantially from 1992 levels. Results benefited from the maturing of the three communities opened in 1992, and an occupancy increase of nearly 4 percentage points -- to the low 90s -- for comparable properties.
 Marriott Distribution Services, which supplies food and related products to Marriott International operations and external clients, posted increased sales and slightly higher operating profits in the 1993 third quarter. Sales benefited from the opening of two distribution centers since mid-1992, and the start of service to a large regional restaurant chain during the 1993 third quarter.
 Marriott International's pro forma effective tax rate decreased more than 6 percentage points in the 1993 third quarter, primarily due to the impact of federal income tax legislation enacted during the quarter.
 On an historical basis, Marriott International reported net income of $29 million for the 1993 third quarter, compared to $20 million a year ago. Sales rose to $1,532,000,000 from $1,492,000,000 in the 1992 quarter.
 Marriott International's 1993 historical results reflect the impact of recent tax legislation, which reduced the company's income tax provision for the third quarter, and income from the disposition of an equity interest in an international hotel. Excluding these and other noncomparable items in both years, Marriott International posted 16 percent higher net income for the 1993 quarter.
 For the 1993 nine months, Marriott International reported net income of $70 million on an historical basis, after a $33 million charge for a required change in accounting for income taxes (implementation of Statement of Financial Accounting Standards No. 109). In the year- earlier period, the company had net income of $84 million. Excluding the impact of the accounting change and previously mentioned noncomparable items, the company posted 17 percent higher net income for the 1993 nine months. Sales totaled $4,926,000,000, compared to $4,719,000,000 in the 1992 nine months.
 Headquartered in Washington, Marriott International is a diversified company involved in lodging and services management.
 MARRIOTT INTERNATIONAL, INC.
 FINANCIAL HIGHLIGHTS
 12 weeks ended
 Historical Pro Forma (d)
 Sept. 10, Sept. 11, Sept. 10, Sept. 11,
 1993 1992 1993 1992
 (in millions, except per share amounts)
 Sales $ 1,532 $ 1,492 $1,728 $1,685
 Operating Profit (a) 65 56 67 58
 Income before Income
 Taxes 48 38 45 36
 Net Income 29 20 29 21
 Earnings Per Share (b) (c) (c) $ 0.24 $ 0.18
 Weighted Average
 Shares (b) (c) (c) 131.5 118.5
 36 weeks ended
 Historical Pro Forma (d)
 Sept. 10, Sept. 11, Sept. 10, Sept. 11,
 1993 1992 1993 1992
 (in millions, except per share amounts)
 Sales $ 4,926 $ 4,719 $ 5,485 $ 5,294
 Operating Profit (a) 230 203 240 208
 Income before Income
 Taxes 177 148 176 143
 Net Income 70 (e) 84 105 (f) 84
 Earnings Per Share (b) (c) (c) $ 0.85 (f)$ 0.71
 Weighted Average
 Shares (b) (c) (c) 131.2 117.7
 Notes
 (a) Before corporate expenses and interest.
 (b) Fully diluted.
 (c) Share and per-share information are not presented on an
 historical basis because Marriott International was not a
 public company during the reporting periods.
 (d) Pro forma data assume that the Oct. 8, 1993, distribution of
 Marriott International common stock to Marriott Corporation
 shareholders, and related transactions, occurred at the
 beginning of the respective periods.
 (e) After $33 million charge for cumulative effect of change in
 accounting for income taxes.
 (f) Before cumulative effect of accounting change described in
 (e).
 -0- 10/21/93
 /CONTACT: Robert T. Souers of Marriott International, 301-380-1339/
 (MAR)


CO: Marriott International, Inc. ST: District of Columbia IN: LEI FIN SU: ERN

DC-MH -- DC027 -- 5170 10/21/93 11:51 EDT
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Date:Oct 21, 1993
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