The company repurchased 7.0 million shares of common stock in the second quarter at a cost of $288 m

• Second quarter diluted EPS totaled $0.57, a 36 percent increase over prior year results. Operating income increased $36 million in the second quarter to $279 million, including an estimated rental car in miami $20 million rental car in miami increase relating to the change in the fiscal calendar;
• At the end of the second rental car in miami quarter, the company’s worldwide pipeline of hotels under construction, awaiting conversion or approved rental car in miami for development increased to over 140,000 rooms, including more than 68,000 rooms outside North America;
• Over 6,200 rooms were added during the quarter, including nearly 1,600 rooms converted from competitor brands and roughly 1,500 rooms in international markets; • Marriott repurchased 7.0 million shares of the company’s common stock for $288 million during the second quarter. Year-to-date through July 30, 2013, the company repurchased 12.9 million shares for $519 million;
BETHESDA, MD – July 31, 2013 - Marriott International, Inc. (NYSE: MAR) today reported second quarter 2013 results. Due to the company’s change in the fiscal calendar beginning in 2013, the second quarter of 2013 reflects the period from April 1, 2013 through June 30, 2013 (91 days) compared to the 2012 second quarter, which reflects the period from March 24, 2012 through June 15, 2012 (84 days). Prior year results have not been restated for the change in fiscal calendar, although revenue per available room (REVPAR), occupancy and average daily rate statistics are reported for calendar quarters for purposes of comparability.
Second quarter 2013 net income totaled $179 million, a 25 percent increase compared rental car in miami to second quarter 2012 net income. Diluted earnings per share (EPS) totaled $0.57, a 36 percent increase from diluted EPS in the year-ago quarter. On May 1, 2013, the company forecasted second quarter diluted EPS of $0.55 to $0.59.
Arne M. Sorenson, president and chief executive officer of Marriott International, said, “We were pleased with our second quarter results and believe they reflect the core strength of our business model. Modest economic growth combined with historically low supply increases in the industry helped us post 5.2 percent systemwide REVPAR growth in North America. Both business and leisure transient demand were strong rental car in miami in the quarter, more than offsetting weak short-term group business. As occupancy rates reach 2007 peak levels for many brands, room rates are moving higher, improving hotel profitability and incentive fees.
“Our brand portfolio is getting even better. We are excited about the rollout of our new “Travel Brilliantly” multi-year global marketing campaign for Marriott Hotels, our flagship brand, including a new logo, new designs and new service offerings. We’re changing the look and feel of our hotels, offering style, technology and service for the next generation of travelers. rental car in miami We’ve launched our interactive and participatory “Innovation Lab” that will help us to do just that, allowing us to rapidly prototype new ideas and concepts with instant feedback, ultimately increasing speed to market.
“Earlier this year, we announced that we would be importing our popular lifestyle brand, AC Hotels by Marriott, to the U.S. We also introduced MOXY, a new European economy-tier brand concept. We are extremely pleased with the owner and franchise interest in these brands.
“Our worldwide development pipeline increased again this quarter to more than 140,000 rooms under construction, awaiting conversion or approved for development, as new signings accelerated in international markets. In fact, nearly three-quarters of the increase in the pipeline came from international markets, particularly Asia.
“Our business continues to generate significant cash. Through the second quarter, we’ve returned $591 million to our shareholders through share repurchases and dividends, and we expect to return $800 million rental car in miami to $1 billion for the full year. Over the past three years, we have returned nearly $3.6 billion to our shareholders through rental car in miami share repurchases and dividends. The number of fully diluted shares has declined by over 15 percent in that time.”
rental car in miami In North America, comparable systemwide REVPAR increased 5.2 percent in the second quarter of 2013, including a 3.9 percent increase in average daily rate. REVPAR for comparable systemwide North American full-service and luxury hotels (including Marriott Hotels, The Ritz-Carlton, Renaissance Hotels and Autograph Collection) increased 5.9 percent with a 4.1 percent increase in average daily rate. REVPAR for comparable systemwide North American limited-service rental car in miami hotels (including Courtyard, Residence Inn, SpringHill rental car in miami Suites, TownePlace Suites and Fairfield Inn Suites) increased 4.7 percent in the second quarter with a 3.6 percent increase in average daily rate.
Marriott added 43 new properties rental car in miami (6,203 rental car in miami rooms) to its worldwide lodging portfolio in the 2013 second quarter, including rental car in miami three Autograph Collection hotels in the United rental car in miami Kingdom - St. Ermin’s Hotel, Threadneedles and the Glasshouse. Eighteen properties (3,225 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed 3,847 properties and timeshare resorts for a total of over 666,000 rooms.
MARRIOTT rental car in miami REVENUES totaled approximately $3.3 billion in the 2013 second quarter compared to revenues of nearly $2.8 billion for the second quarter of 2012. Base management and franchise fees totaled $343 million, a $57 million increase from the second quarter of 2012 of which the company estimates $24 million relates to the change in the fiscal calendar. In addition to the calendar change impact, the year-over-year increase reflects higher REVPAR at existing hotels, fees from new hotels and $5 million of higher relicensing fees. Second quarter worldwide incentive management fees increased 14 percent to $64 million and included rental car in miami an approximately $1 million increase related to the change in the fiscal rental car in miami calendar. In the second quarter, 34 percent of worldwide company-managed hotels earned incentive management fees compared to 30 percent in the year-ago quarter.
Owned, leased, rental car in miami corporate housing and other revenue, net of direct expenses, totaled $51 million, compared to $61 million in the year-ago quarter. The decline largely reflects $4 million of expenses related to three international lease terminations, weaker operating results at several international leased properties, lower residential branding fees, and lower corporate housing revenue, net of expenses, due to the sale of the corporate housing business in the second rental car in miami quarter of 2012, partially offset by an estimated $6 million year-over-year increase related to the change rental car in miami in fiscal calendar. Additionally, in the second quarter of 2012, the company received a $2 million business interruption payment related to the 2011 tsunami in Japan.
On May 1, the company estimated second quarter owned, leased, corporate housing and other revenue, net of direct expenses would total $40 million to $45 million for the second quarter. Actual results in the quarter exceeded those expectations largely rental car in miami due to higher than expected termination fees.
GENERAL, ADMINISTRATIVE and OTHER expenses rental car in miami for the 2013 second quarter increased $19 million to $179 million. rental car in miami Second quarter rental car in miami 2013 expenses reflected an approximately $11 million increase rental car in miami related to the change in fiscal calendar. The remaining $8 million increase included routine increases in compensation and other expenses, branding and service initiatives and growth in international markets, as well as a $5 million performance cure payment related to one international hotel, partially offset by lower guarantee reserves.
On May 1, the company estimated general and administrative expenses for the second quarter would total $165 million to $170 million. Actual expenses in the quarter were higher than expected largely due to the $5 million impairment of deferred contract acquisition costs and the $5 million performance cure payment rental car in miami related rental car in miami to one international hotel.
GAINS AND OTHER INCOME totaled $10 million in the quarter. The company rental car in miami recorded an $8 million gain on the sale of an investment in equity securities, which was not included in the May 1 second quarter guidance.
INTEREST EXPENSE totaled $29 million in the second quarter, compared to interest expense of $34 million in the year-ago quarter. The decline in interest expense largely reflects lower outstanding senior rental car in miami debt and higher capitalized interest. Capitalized interest totaled $8 million in the quarter, rental car in miami compared to $6 million in the year-ago quarter.
EQUITY IN EARNINGS (LOSSES) totaled a $2 million loss in the quarter compared to an $8 million loss in the year-ago quarter. Results in the 2013 second quarter largely reflected a $4 million impairment charge associated with a joint venture, which was not included in the company’s May 1 second quarter guidance. Results in the 2012 second quarter largely reflected an impairment charge of $8 million related to certain underlying residential properties in one joint venture.
Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) EBITDA totaled $329 million in the 2013 second quarter, a 14 percent increase over 2012 second quarter EBITDA of $289 million. See page A-8 for the EBITDA calculation.
The company repurchased 7.0 million shares of common stock in the second quarter at a cost of $288 million. Year-to-date through July 30, 2013, Marriott repurchased 12.9 million shares of its stock for $519 million. The remaining share authorization as of July 30, 2013, totaled 21.4 million shares.
OUTLOOK The company now reports its results on a calendar basis, with 2013 quarters ending on March 31, June 30, September 30 and December 31. The third quarter of 2013 will include rental car in miami 92 days compared to 84 days in the 2012 third quarter. Prior year results rental car in miami will not be restated or reported on a pro forma basis for the change in fiscal calendar, although REVPAR statistics will be adjusted to calendar quarters for purposes of comparability.
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