Marriott International Reports 2007 Second Quarter Results
July 13, 2007
Filed under Timeshare News
July 12, 2007: 06:30 AM EST
WASHINGTON, July 12 /PRNewswire-FirstCall/ — Marriott International, Inc. today reported second quarter 2007 adjusted net income of $229 million, an increase of 26 percent, and adjusted diluted earnings per share (EPS) of $0.57, an increase of 36 percent.
. . . Timeshare sales and services revenue increased 22 percent in the 2007 second quarter, primarily driven by the company’s Maui, Las Vegas and Frenchman’s Reef resorts, which reached higher reportability thresholds in the quarter. The new resort in St. Kitts also reported strong sales. Timeshare revenues also include $45 million of mortgage note sale gains, $5 million higher than the year ago quarter.
Timeshare sales and services revenue, net of direct expenses, increased 49 percent, to $122 million, reflecting higher note sale gains and higher financial reportability of sales.
Contract sales for the company’s timeshare, fractional and whole ownership projects, including sales made by joint venture projects, decreased 24 percent, reflecting tough comparisons to a highly successful launch of the Ritz-Carlton’s whole ownership projects in Kapalua Bay and San Francisco in the 2006 second quarter. In addition, the newly introduced Marriott Vacation Club resort in Maui benefited from considerable trade-up from existing owners in the 2006 quarter. Excluding these three projects, contract sales increased nearly 5 percent in the 2007 second quarter.
The company began sales at a timeshare resort in Marco Island in the 2007 second quarter and expects to begin sales at the Ritz-Carlton whole ownership project in Kauai, Hawaii in the second half of 2007. [more]
