MAR Q2 2019 Earnings

Call Details

• Call Title: Marriott International Q2 2019 Earnings Call
• Date: August 6, 2019 at 3:00 PM UTC
• Management Team:
  • Arne Sorensen (President and Chief Executive Officer)
  • Leeny Oberg (Executive Vice President and Chief Financial Officer)
  • Laura Paugh (Senior Vice President, Investor Relations)
  • Betsy Dahm (Senior Director, Investor Relations)

Call Summary

Financial Performance

• For Q2 2019, adjusted diluted earnings per share totaled $1.56 compared to $1.73 in the year-ago quarter.
• Second-quarter adjusted EBITDA totaled $952 million and was reported as consistent with company guidance.
• Gross fee revenues in Q2 totaled nearly $1.0 billion and increased 5% year over year.
• Credit card fees in Q2 totaled $104 million and increased 12% year over year.
• Owned, leased, and other revenue net of expenses totaled $87 million in Q2, down $2 million versus the prior year.
• The company recorded a $126 million non-tax deductible accrual in Q2 for the proposed ICO fine related to last year's data security incident.

Guidance

• Company expects worldwide system-wide RevPAR to increase 1% to 2% in both Q3 and Q4 and for the full year 2019.
• Full-year 2019 gross fee revenue is expected to total $3.82 to $3.85 billion, representing 5% to 6% growth versus prior year.
• Full-year 2019 adjusted EBITDA is expected to be roughly $3.586 to $3.626 billion, representing a 3% to 4% increase over 2018 adjusted EBITDA.
• Full-year 2019 diluted EPS guidance is $5.97 to $6.06 and excludes merger-related costs and reimbursed revenues and expenses.
• Credit card fees for 2019 are estimated at $400 to $410 million and owned, leased, and other revenue net of direct expense is expected at roughly $295 million.
• Full-year investment spending is forecast at $650 to $750 million, including about $225 million of maintenance spending and $200 to $250 million expected to be reimbursed or recycled over time.