SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 21, 1997
MARRIOTT INTERNATIONAL, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
------------------------
(State of incorporation)
1-12188 52-0936594
- --------------------- -------------------
(Commission File No.) (IRS Employer
Identification No.)
10400 Fernwood Road, Bethesda, Maryland 20817
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (301) 380-3000
(Former name or former address, if changed since last report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(b) Pro Forma Financial Information
The following unaudited pro forma condensed combined statements of
income set forth the results of operations of the Registrant for the fiscal year
ended January 3, 1997 and the 24 weeks ended June 20, 1997 as if the disposition
of Forum Group, Inc. ("Forum Group") (as reported in the Registrant's Form 8-K
dated June 21, 1997) had occurred on March 25, 1996 (the date upon which the
Registrant acquired Forum Group) and January 4, 1997, respectively. The pro
forma condensed combined balance sheet presented gives effect to the disposition
as if it had occurred as of June 20, 1997.
The pro forma condensed combined financial statements are presented for
information purposes only and are not intended to reflect the Registrant's
expected future financial position or results of operations. The pro forma
condensed combined financial statements should be read in conjunction with the
Registrant's Annual Report on Form 10-K for the fiscal year ended January 3,
1997, and the Registrant's Quarterly Report on Form 10-Q for the twenty-four
weeks ended June 20, 1997.
2
MARRIOTT INTERNATIONAL, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
($ in millions, except per share amounts)
(Unaudited)
Pro Forma
53 weeks ended Pro Forma 53 weeks ended
January 3, 1997 Adjustments January 3, 1997
--------------- --------------- ---------------
SALES
Lodging
Rooms.............................................. $ 3,619 $ - $ 3,619
Food and beverage.................................. 1,361 - 1,361
Other.............................................. 874 - 874
--------------- --------------- ---------------
5,854 - 5,854
Contract Services..................................... 4,318 - 4,318
--------------- --------------- ---------------
10,172 - 10,172
--------------- --------------- ---------------
OPERATING COSTS AND EXPENSES
Lodging
Departmental direct costs
Rooms.......................................... 843 - 843
Food and beverage.............................. 1,038 - 1,038
Other operating expenses........................... 3,521 - 3,521
--------------- --------------- ---------------
5,402 - 5,402
Contract Services..................................... 4,141 31 A 4,172
--------------- --------------- ---------------
9,543 31 9,574
--------------- --------------- ---------------
OPERATING PROFIT
Lodging............................................... 452 - 452
Contract Services..................................... 177 (31) 146
--------------- --------------- ---------------
Operating profit before corporate
expenses and interest.......................... 629 (31) 598
Corporate expenses....................................... (79) 1 A (78)
Interest expense......................................... (85) 26 B (59)
Interest income.......................................... 37 4 B 41
--------------- --------------- ---------------
INCOME BEFORE INCOME TAXES............................... 502 - 502
Provision for income taxes............................... 196 - C 196
--------------- --------------- ---------------
NET INCOME............................................... $ 306 $ - $ 306
=============== =============== ===============
EARNINGS PER SHARE....................................... $ 2.24 $ 2.24
=============== ===============
See notes to pro forma condensed combined financial statements
3
MARRIOTT INTERNATIONAL, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
($ in millions, except per share amounts)
(Unaudited)
Pro forma
Twenty-four twenty-four
weeks ended Pro forma weeks ended
June 20, 1997 adjustments June 20, 1997
------------- ------------- -------------
SALES
Lodging
Rooms....................................................... $ 1,959 $ - $ 1,959
Food and beverage........................................... 714 - 714
Other....................................................... 491 - 491
------------- ------------- -------------
3,164 - 3,164
Contract Services............................................... 2,318 - 2,318
------------- ------------- -------------
5,482 - 5,482
------------- ------------- -------------
OPERATING COSTS AND EXPENSES
Lodging
Departmental direct costs
Rooms.................................................... 428 - 428
Food and beverage........................................ 528 - 528
Other operating expenses..................................... 1,944 - 1,944
------------- ------------- -------------
2,900 - 2,900
Contract Services............................................... 2,233 22 A 2,255
------------- ------------- -------------
5,133 22 5,155
------------- ------------- -------------
OPERATING PROFIT
Lodging......................................................... 264 - 264
Contract Services............................................... 85 (22) 63
------------- ------------- -------------
Operating profit before corporate
expenses and interest..................................... 349 (22) 327
Corporate expenses................................................. (42) 1 A (41)
Interest expense................................................... (53) 14 B (39)
Interest income.................................................... 11 3 B 14
------------- ------------- -------------
INCOME BEFORE INCOME TAXES......................................... 265 (4) 261
Provision for income taxes......................................... 105 (2) C 103
------------- ------------- -------------
NET INCOME......................................................... $ 160 $ (2) $ 158
============= ============= =============
EARNINGS PER SHARE................................................. $ 1.18 $ 1.16
============= =============
See notes to pro forma condensed consolidated financial statements
4
MARRIOTT INTERNATIONAL, INC.
PRO FORMA CONDENSED COMBINED BALANCE SHEET
($ in millions)
(Unaudited)
June 20, Pro forma Pro forma
1997 Adjustments June 20, 1997
------------- ------------- -------------
ASSETS
Current Assets
Cash and equivalents.................................. $ 351 $ - $ 351
Accounts and notes receivable......................... 917 - 917
Other................................................. 461 - 461
------------- ------------- -------------
1,729 - 1,729
------------- ------------- -------------
Property and equipment..................................... 1,938 (494) D 1,444
Intangible assets.......................................... 1,820 (27) D 1,793
Investments in affiliates.................................. 519 71 E 590
Notes and other receivable................................. 313 - 313
Other assets............................................... 308 (15) D 293
------------- ------------- -------------
$ 6,627 $ (465) $ 6,162
============= ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable...................................... $ 944 - 944
Other current liabilities............................. 1,018 5 D 1,023
------------- ------------- -------------
1,962 5 1,967
------------- ------------- -------------
Long-term debt............................................. 1,932 (227) D 1,500
(205) E
Other long-term liabilities................................ 1,013 (38) D 975
Convertible subordinated debt.............................. 303 - 303
Shareholders' equity
Common stock, 128.6 million shares issued............. 129 - 129
Additional paid-in capital............................ 668 - 668
Retained earnings..................................... 701 - 701
Treasury stock, at cost............................... (81) - (81)
------------- ------------- -------------
1,417 - 1,417
------------- ------------- -------------
$ 6,627 $ (465) $ 6,162
============= ============= =============
See notes to pro forma condensed combined financial statements
5
MARRIOTT INTERNATIONAL, INC.
NOTES TO PRO FORMA CONDENSED COMBINED FINANCIAL
STATEMENTS
A. Represents the impact of the change from the Registrant's ownership of
Forum Group to the Registrant's operation of the Forum Group senior living
communities under long-term agreements
B. Represents increased interest income on the notes received from Host
Marriott as part of the Forum Group sale proceeds, decreased interest
expense reflecting the application of the cash component of such sale
proceeds to repay long-term debt of the Registrant, and decreased interest
expense reflecting the assumption of debt by Host Marriott
C. Represents the income tax effect of the pro forma adjustments
D. Represents the elimination of assets and liabilities of Forum Group as of
June 20, 1997
E. Represents the proceeds from the sale of Forum Group and the application
thereof
6
SIGNATURES
Under the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
MARRIOTT INTERNATIONAL, INC.
By: /s/ Stephen E. Riffee
---------------------------
Stephen E. Riffee
Vice President, Finance and
Chief Accounting Officer
Date: September 3, 1997
7