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Marriott International Inc. (MAR) filed Quarterly Report for the period ended 2011-03-25.
Marriott Intl Inc. has a market cap of $13.2 billion; its shares were traded at around $35.87 with a P/E ratio of 31.4 and P/S ratio of 1.1. The dividend yield of Marriott Intl Inc. stocks is 1%.
This is the annual revenues and earnings per share of MAR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of MAR.
Highlight of Business Operations:
Revenues increased by $148 million (6 percent) to $2,778 million in the first quarter of 2011 from $2,630 million in the first quarter of 2010, as a result of higher: cost reimbursements revenue ($139 million); base management and franchise fees ($21 million); and incentive management fees ($2 million (comprised of a $1 million increase for North America and a $1 million increase outside of North America)). These increases were partially offset by lower Timeshare sales and services revenue ($9 million) and lower owned, leased, corporate housing, and other revenue ($5 million).
Operating income increased by $11 million to $191 million in the 2011 first quarter from $180 million in the 2010 first quarter. The increase reflected a $21 million increase in franchise and base management fees, $8 million of higher owned, leased, corporate housing, and other revenue net of direct expenses, $2 million of higher incentive management fees, and $1 million of higher Timeshare sales and services revenue net of direct expenses, partially offset by a $21 million increase in general, administrative, and other expenses. We note the reasons for the increase of $21 million in franchise and base management fees as compared to the 2010 first quarter in the preceding “Revenues” section.
General, administrative, and other expenses increased by $21 million (15 percent) to $159 million in the first quarter of 2011 from $138 million in the first quarter of 2010. The increase primarily reflected the following items: $7 million of higher incentive compensation costs, $6 million of increased other expenses primarily associated with higher costs in international markets and initiatives to enhance and grow our brands globally, a $6 million reversal in the 2010 first quarter of guarantee accruals, primarily related to a completion guarantee for which we satisfied the related requirements, and $2 million of collections in the 2010 first quarter on previously written off receivables.
Equity in losses of $4 million in the first quarter of 2011 decreased by $7 million from $11 million in the first quarter of 2010 and primarily reflected a favorable variance from 2010 first quarter joint venture impairment charges of $3 million ($2 million associated with our North American Limited-Service segment and $1 million associated with our Timeshare segment) and $5 million of lower 2011 first quarter losses for a Timeshare segment residential and fractional project joint venture, primarily related to cancellation allowances recorded in the 2010 first quarter.
Net income increased by $18 million (22 percent) to $101 million in the first quarter of 2011 from $83 million in the first quarter of 2010, and diluted earnings per share increased by $0.04 (18 percent) to $0.26 per share from $0.22 per share in the first quarter of 2010. As discussed in more detail in the preceding sections beginning with “Operating Income,” the $18 million increase in net income compared to the prior year was due to higher franchise and base management fees ($21 million), higher owned, leased, corporate housing, and other revenue net of direct expenses ($8 million), lower equity in losses ($7 million), lower interest expense ($4 million), higher incentive management fees ($2 million), higher Timeshare sales and services revenue net of direct expenses ($1 million), and higher gains and other income ($1 million). Higher general, administrative, and other expenses ($21 million) and higher income taxes ($5 million) partially offset these items.
The quarter-over-quarter increase in revenues included a $139 million increase in cost reimbursements revenue, which does not impact operating income or net income. The results, compared to the year-ago quarter, primarily reflected a $21 million increase in franchise and base management fees to $237 million in the first quarter of 2011 from $216 million in the first quarter of 2010, $7 million of lower joint venture equity losses, an increase of $7 million in owned, leased, corporate housing, and other revenue net of direct expenses, $2 million of higher incentive management fees to $42 million in the first quarter of 2011 from $40 million in the first quarter of 2010, a $2 million decrease in interest expense, and an increase of $1 million in Timeshare sales and services revenue net of direct expenses. A $10 million increase in general, administrative, and other expenses partially offset these favorable variances. For more detailed information regarding the variances see the preceding sections beginning with “Operating Income.”
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