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Sep 30, 2020

Marriott Q3 2020 Earnings Report

Results were dramatically impacted by the COVID-19 global pandemic and efforts to contain it.

Key Takeaways

Marriott International reported a significant decline in its third-quarter 2020 results due to the COVID-19 pandemic, but showed continued improvement in demand trends around the world. Worldwide RevPAR declined 66 percent, with Greater China leading the recovery. The company strengthened its liquidity position and realigned its cost structure to manage through the challenging times.

Third quarter 2020 comparable systemwide constant dollar RevPAR declined 65.9 percent worldwide, 65.4 percent in North America and 67.4 percent outside North America, compared to the 2019 third quarter.

Third quarter reported diluted EPS totaled $0.31, compared to reported diluted EPS of $1.16 in the year-ago quarter. Third quarter adjusted diluted EPS totaled $0.06, compared to third quarter 2019 adjusted diluted EPS of $1.47.

Third quarter reported net income totaled $100 million, compared to reported net income of $387 million in the year-ago quarter. Third quarter adjusted net income totaled $20 million, compared to third quarter 2019 adjusted net income of $488 million.

Adjusted EBITDA totaled $327 million in the 2020 third quarter, compared to third quarter 2019 adjusted EBITDA of $901 million.

Total Revenue
$2.25B
Previous year: $5.28B
-57.3%
EPS
$0.06
Previous year: $1.47
-95.9%
Worldwide RevPAR growth
-65.9%
Adjusted EBITDA
$327M
Previous year: $901M
-63.7%
Total Debt
$11B
Gross Profit
$437M
Previous year: $888M
-50.8%
Cash and Equivalents
$1.6B
Previous year: $276M
+479.7%
Free Cash Flow
$100M
Previous year: $359M
-72.1%
Total Assets
$25.1B
Previous year: $24.8B
+1.4%

Marriott

Marriott

Marriott Revenue by Segment

Forward Guidance

Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the financial impact of this unprecedented situation, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company’s results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income