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MARRIOTT REPORTS EARNINGS FOR 1992 FIRST QUARTER

 MARRIOTT REPORTS EARNINGS FOR 1992 FIRST QUARTER
 WASHINGTON, April 14 /PRNewswire/ -- Marriott Corporation


(NYSE: MHS) today reported net income of $11 million in the 1992 first quarter ended March 27, compared to $10 million in the 1991 quarter.
 The company reported earnings per common share of 7 cents in the 1992 first quarter vs. 10 cents a year ago. Operating profit totaled $95 million in the 1992 quarter, up from $93 million last year. Sales were $1,953,000,000, compared to $1,827,000,000 in the 1991 first quarter.
 The company said reported earnings reflected the impact of recent Courtyard hotel dispositions, operating results and interest expense associated with recently opened lodging and senior living facilities, as well as lower deferred gain amortization in 1992 and the issuance of preferred stock in late 1991. Excluding these noncomparable items, operating profit rose 11 percent, net income was up 79 percent and earnings per common share doubled in the 1992 quarter.
 J.W. Marriott Jr., chairman and president, said results for the 1992 quarter continued to be constrained by economic conditions in the United States, the oversupply of domestic hotel rooms, and soft airline enplanements at many airports.
 "Our strong customer preference and market leadership, coupled with the steps we have taken during the past 18 months to reduce administrative overhead and streamline our operations, position the company to benefit significantly when a turnaround in the economy occurs," Marriott remarked.
 "Meanwhile, we are continuing to work on reducing debt and extending maturities of long-term debt, in order to maximize our financial flexibility," he said. "We have already completed $200 million in asset sales since the end of 1991 and have signed agreements for another $200 million scheduled for completion by the summer of 1992."
 Lodging operations reported a nine percent gain in sales and an eight percent increase in operating profit for the 1992 first quarter. Sales, operating profits and comparable unit occupancy rose in all major Marriott lodging segments during the 1992 period. Excluding the impact of previously cited noncomparable items, lodging operating profit was up 20 percent. Eleven properties (1,500 rooms) were opened across Marriott's lodging product lines during the quarter, including the company's 700th hotel, a franchised full- service property in Sydney, Australia. Marriott had 709 hotels, totaling 162,900 rooms, at the end of the quarter.
 Marriott Hotels, Resorts and Suites, the company's full-service lodging division, posted an increase of three percentage points in occupancy for comparable U.S. hotels -- to the mid-70s, while room rates were slightly below year-earlier levels. Performance of international hotels was up strongly, partially due to the impact of the Gulf war on 1991 results.
 Courtyard, Marriott's product in the moderate lodging segment, achieved a 13 percent gain in occupancy for comparable units -- to the mid-70s, reflecting strong promotional programs and a repositioning of prices in several markets, which reduced average room rates. Lower development expenses also helped boost operating profits.
 Residence Inn, the company's extended stay product, achieved over six percent higher occupancy for comparable units -- to nearly 80 percent, while average rates were slightly lower. The division benefited from increased results for recently opened properties, as well as improved business travel and relocation activity in its markets.
 Fairfield Inn, Marriott's economy lodging offering, successfully built revenue through occupancy and rate management. Occupancy for comparable units was up nearly 12 percentage points -- to the upper 70s, while average room rates were down slightly.
 Marriott Ownership Resorts, the company's timeshare division, achieved strong growth in operating profits as well as a significant increase in the number of sales contracts in new units. The division now manages 19 resorts with over 40,000 owners, and recently began sales at new projects in Barbados and Hilton Head Island, S.C.
 Contract Services reported a 4 percent sales increase, but operating profit dropped 11 percent. Results were restricted by the economic environment in major businesses.
 Marriott Management Services posted higher sales, but profits were in line with last year, excluding the impact of start-up losses in a new laundry facility. Profits increased in food service for education and health care, and school services, but results for the corporate services business were lower. Profits for facilities management operations were flat with year-earlier levels.
 The Host/Travel Plazas division experienced lower sales and profits. Airport food and beverage profits were hurt by reduced airline enplanements, the absence of delays induced by heightened airport security during the 1991 Gulf war, and the shutdown of two major airlines. Lower traffic on two key tollroads, and units taken out of service for conversion to branded concepts restricted profit contributions from the travel plazas business. Off-season costs at a key facility in the stadiums and arenas business also hurt results.
 Marriott Senior Living Services posted significantly higher sales and profits as occupancy rates for comparable retirement communities increased 10 percentage points to the mid-80s. New communities were opened in Silver Spring, Md. and Palm Harbor, Fla., during the quarter, bringing the Marriott senior living system to 15 communities.
 Corporate expenses increased 18 percent in the 1992 quarter, reflecting higher profit-sharing and foreign exchange costs, and start-up losses in a foreign hotel joint venture. Interest expense, net of interest income, decreased six percent as lower average borrowings and interest rates were partially offset by reduced interest capitalization.
 Washington-based Marriott Corporation is a diversified hospitality company involved in lodging and contract services.
 MARRIOTT CORPORATION FINANCIAL HIGHLIGHTS
 12 weeks ended March 27, 1992 March 22, 1991
 (in millions, except per share amounts)
 Sales $1,953 $1,827
 Operating Profit(A) 95 93
 Income before Income Taxes 20 19
 Net Income 11 10
 Earnings Available for
 Common Stock 7 10
 Earnings Per Common Share(B) $ .07 $ .10
 Weighted Average Shares(B) 103.8 100.1
 (A) Before corporate expenses and interest.
 (B) Fully diluted.
 -0- 4/14/92
 /CONTACT: Robert T. Souers of Marriott, 301-380-1339/
 (MHS) CO: Marriott Corporation ST: District of Columbia IN: LEI SU: ERN


DC -- DC024 -- 8230 04/14/92 11:26 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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