EX-99 3 dex99.htm EXHIBIT 99 EXHIBIT 99

EXHIBIT 99

Page 1

 

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF INCOME BY QUARTER

Fiscal Year Ended January 2, 2004

($ in millions, except per share amounts)

 

       First
Quarter10
      Second
Quarter10
      Third
Quarter10
      Fourth
Quarter10
      Fiscal
Year 20039
  

REVENUES

                                               

Base management fees

      $ 92      $ 88      $ 86      $ 122      $ 388  

Franchise fees

        52        56        61        76        245  

Incentive management fees

        29        28        18        34        109  

Owned, leased, corporate housing and other1

        137        145        132        219        633  

Timeshare interval sales and services2

        237        234        296        378        1,145  

Cost reimbursements3

        1,408        1,402        1,423        1,959        6,192  

Synthetic fuel

        68        63        93        78        302  
      
  
  
  
  

Total Revenues

        2,023        2,016        2,109        2,866        9,014  

OPERATING COSTS AND EXPENSES

                                               

Owned, leased and corporate housing—direct4

        110        119        118        158        505  

Timeshare—direct

        208        215        265        323        1,011  

Reimbursed costs

        1,408        1,402        1,423        1,959        6,192  

General, administrative and other5

        112        107        117        187        523  

Synthetic fuel

        127        105        96        78        406  
      
  
  
  
  

Total Expenses

        1,965        1,948        2,019        2,705        8,637  
      
  
  
  
  

OPERATING INCOME

        58        68        90        161        377  

Gains and other income6

        1        38        15        52        106  

Interest expense

        (26 )      (25 )      (26 )      (33 )      (110 )

Interest income

        20        27        31        51        129  

Provision for loan losses

        (5 )      (1 )      (1 )      —          (7 )

Equity in earnings (losses)—Synthetic fuel7

        —          —          —          10        10  

—Other8

        (1 )      3        (3 )      (16 )      (17 )
      
  
  
  
  

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTEREST

        47        110        106        225        488  

Benefit (provision) for income taxes

        40        16        16        (29 )      43  
      
  
  
  
  

INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST

        87        126        122        196        531  

Synthetic fuel minority interest

        —          —          (29 )      (26 )      (55 )
      
  
  
  
  

INCOME FROM CONTINUING OPERATIONS

        87        126        93        170        476  

Discontinued operations

                                               

Income (loss) from Senior Living Services, net of tax

        30        (1 )      —          (3 )      26  

(Loss) Income from Distribution Services, net of tax

        (1 )      —          (1 )      2        —    
      
  
  
  
  

NET INCOME

      $ 116      $ 125      $ 92      $ 169      $ 502  
      
  
  
  
  

EARNINGS PER SHARE—Basic

                                               

Earnings from continuing operations

      $ 0.37      $ 0.54      $ 0.40      $ 0.74      $ 2.05  

Earnings (loss) from discontinued operations

        0.13        —          (0.01 )      (0.01 )      0.11  
      
  
  
  
  

Earnings per share

      $ 0.50      $ 0.54      $ 0.39      $ 0.73      $ 2.16  
      
  
  
  
  

EARNINGS PER SHARE—Diluted

                                               

Earnings from continuing operations

      $ 0.36      $ 0.52      $ 0.38      $ 0.69      $ 1.94  

Earnings (loss) from discontinued operations

        0.12        (0.01 )      (0.01 )      —          0.11  
      
  
  
  
  

Earnings per share

      $ 0.48      $ 0.51      $ 0.37      $ 0.69      $ 2.05  
      
  
  
  
  

EXHIBIT 99

Page 2

 

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF INCOME BY QUARTER

Fiscal Year Ended January 3, 2003

($ in millions, except per share amounts)

 

     First
Quarter 11
     Second
Quarter 11
     Third
Quarter 11
     Fourth
Quarter 11
     Fiscal
Year 2002 9
  

REVENUES

                                         

Base management fees

    $ 85     $ 91     $ 82     $ 121     $ 379  

Franchise fees

      51       54       55       72       232  

Incentive management fees

      32       52       25       53       162  

Owned, leased, corporate housing and other 1

      139       165       150       197       651  

Timeshare interval sales and services 2

      221       261       259       318       1,059  

Cost reimbursements 3

      1,262       1,343       1,282       1,852       5,739  

Synthetic fuel

      5       53       55       80       193  
    
 
 
 
 

Total Revenues

      1,795       2,019       1,908       2,693       8,415  

OPERATING COSTS AND EXPENSES

                                         

Owned, leased and corporate housing—direct 4

      117       126       123       214       580  

Timeshare—direct

      195       227       233       283       938  

Reimbursed costs

      1,262       1,343       1,282       1,852       5,739  

General, administrative and other 5

      101       127       108       174       510  

Synthetic fuel

      11       96       87       133       327  
    
 
 
 
 

Total Expenses

      1,686       1,919       1,833       2,656       8,094  
    
 
 
 
 

OPERATING INCOME

      109       100       75       37       321  

Gains and other income 6

      15       20       28       69       132  

Interest expense

      (19 )     (21 )     (19 )     (27 )     (86 )

Interest income

      19       28       28       47       122  

Provision for loan losses

      —         —         —         (12 )     (12 )

Equity in earnings (losses)—Synthetic fuel 7

      —         —         —         —         —    

—Other 8

      (6 )     6       —         (6 )     (6 )
    
 
 
 
 

INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND MINORITY INTEREST

      118       133       112       108       471  

(Provision) benefit for income taxes

      (36 )     (6 )     2       8       (32 )
    
 
 
 
 

INCOME FROM CONTINUING OPERATIONS BEFORE
MINORITY INTEREST

      82       127       114       116       439  

Synthetic fuel minority Interest

      —         —         —         —         —    
    
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

      82       127       114       116       439  

Discontinued operations

                                         

Income (loss) from Senior Living Services, net of tax

      4       3       10       (125 )     (108 )

Loss from Distribution Services, net of tax

      (4 )     (1 )     (21 )     (28 )     (54 )
    
 
 
 
 

NET INCOME (LOSS)

    $ 82     $ 129     $ 103     $ (37 )   $ 277  
    
 
 
 
 

EARNINGS PER SHARE—Basic

                                         

Earnings from continuing operations

    $ 0.34     $ 0.52     $ 0.47     $ 0.49     $ 1.83  

Earnings (loss) from discontinued operations

      —         0.01       (0.04 )     (0.65 )     (0.68 )
    
 
 
 
 

Earnings (loss) per share

    $ 0.34     $ 0.53     $ 0.43     $ (0.16 )   $ 1.15  
    
 
 
 
 

EARNINGS PER SHARE—Diluted

                                         

Earnings from continuing operations

    $ 0.32     $ 0.49     $ 0.45     $ 0.47     $ 1.74  

Earnings (loss) from discontinued operations

      —         0.01       (0.04 )     (0.62 )     (0.64 )
    
 
 
 
 

Earnings (loss) per share

    $ 0.32     $ 0.50     $ 0.41     $ (0.15 )   $ 1.10  
    
 
 
 
 

EXHIBIT 99

 

Page 3          

 

Notes:

 

1 Owned, leased, corporate housing and other revenue includes revenue from the properties we own or lease, our ExecuStay business, land rent income and other revenue.

 

2 Timeshare interval sales and services includes total timeshare revenue except for base fees, reimbursed costs and note sale gains.

 

3 Cost reimbursements include reimbursements from lodging properties for Marriott funded operating expenses. Marriott earns no markup on these expenses.

 

4 Owned, leased and corporate housing—direct expenses include operating expenses of our ExecuStay business unit, and owned or leased hotels including lease payments, pre-opening expenses and depreciation.

 

5 General, administrative and other expenses include the overhead costs allocated to our lodging business segments (including ExecuStay and timeshare) and our unallocated corporate overhead costs.

 

6 Gains and other income includes gains on the sale of real estate, timeshare note sale gains, and gains on the sale of our interests in joint ventures.

 

7 Equity in earnings (losses)—Synthetic fuel includes our share of the equity in earnings of the Synthetic fuel joint venture and the earnout we received from the Synthetic fuel joint venture partner beginning November 7, 2003. The earnout we received prior to November 7, 2003, along with the revenue generated from the previously consolidated Synthetic fuel joint venture, are included in Synthetic fuel revenue.

 

8 Equity in earnings (losses)—Other includes our equity in earnings (losses) of unconsolidated joint ventures.

 

9 Fiscal Year 2003 included 52 weeks. Fiscal Year 2002 included 53 weeks.

 

10 The quarters consisted of 12 weeks, except the fourth quarter 2003, which consisted of 16 weeks.

 

11 The quarters consisted of 12 weeks, except the fourth quarter 2002, which consisted of 17 weeks.