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Marriott Corporation, 1978 Annual Report
Image 24
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Marriott International, Inc.. Marriott Corporation, 1978 Annual Report - Image 24. 1978. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 16, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/828/show/811.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc.. (1978). Marriott Corporation, 1978 Annual Report - Image 24. Annual Reports from the Hospitality Industry Archives. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. Retrieved from https://digital.lib.uh.edu/collection/hiltonar/item/828/show/811

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc., Marriott Corporation, 1978 Annual Report - Image 24, 1978, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed September 16, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/828/show/811.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Compound Item Description
Title Marriott Corporation, 1978 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1978
Description Marriott Corporation Annual Report for the year ending on July 31, 1978.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Marriott International, Inc.
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
Original Item Location Marriott Hotels Collection
Digital Collection Annual Reports from the Hospitality Industry Archives
Digital Collection URL http://digital.lib.uh.edu/collection/hiltonar
Repository Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston
Repository URL http://www.uh.edu/hilton-college/About/hospitality-industry-archives
Use and Reproduction No Copyright - United States
File Name index.cpd
Item Description
Title Image 24
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_049_024.jpg
Transcript SHU 100% Senior Debt and Capital Lease Obligations DEBT RATIO IMPROVES"AGAIN Senior debt and capital lease obligations declined to 38% of invested capital in 1978 from 54% in 1975. ("Other" includes deferred income taxes, convertible subordinated debt, deferred income and other liabilities.) earnings on its existing equity base without increasing financial leverage. Balance Sheet Improves Marriott's senior debt and capital leases declined to 38% of total capital in '78 from 45% in 1977 and a high of 54% in 1975. This decline facilitated the funding of Marriott's first unsecured private domestic debt placement. The $40 million placement at 8-3/4% and a 20-year term was an important step in the company's transition from secured to unsecured debt as the principal source of future debt financing. Return On Capital Rises Reflecting the effects of the program initiated in 1975, all measures of capital productivity increased during the year. Return on beginning shareholders' investment climbed to 13.1% from 11.3% in 1977 and 9.3% in 1975. The company is closing in on its 1982 objective of 15%. With debt leverage declining the past three years, however, return on shareholders' investment distorts the real gains achieved in asset productivity. Two return-on-capital measurements eliminate distortions caused by comparing years with different financial leverage—and more fully reflect the progress in the company's asset management program. One measurement is earnings before interest and taxes (EBIT) as a percent of capital. In 1978, EBIT provided a 13.6% return on beginning capital versus 10.1% when management embarked on the program in 1975. Similarly, after-tax cash flow, before tax-adjusted interest expense, in creased from 14% of total capital in 1975 to 16.1% in 1978. Measured in either manner, 1978 return on capital has reached its highest level of the past seven years. Maturity Schedule Strengthens Continued cash flow growth and a reduction of debt levels have improved even further Marriott's debt maturity coverage. Cash flow from operations increased to $114 million from $96 million in 1977 and cash flow coverage of five-year debt maturities increased to 115%. Debt Maturity Schedule at Fiscal Year-end (Dollars in millions) Year 1978 1977 1976 1975 1 $ 10.4 $ 8.8 $10.1 $11.4 2 15.6 8.7 17.7 14.7 3 20.0 14.9 18.2 14.1 4 24.1 21.0 19.1 20.3 5 28.7 32.7 18.0 23.9 Total $ 98.8 $86.1 $83.1 $84.4 Cash Flow from Operations....$113.7 $95.7 $88.3 $70.8 Ratio of Cash Flow to 5-year Maturities . . . . 1.15 1.11 1.06 .84 Capital Outlay Climbs Capital expenditures of $104 million plus acquisitions and investments in joint ventures required an aggregate of $137 million of corporate funds in fiscal '78. The company's strategic plan provides for continued substantial outlays for growth in high-return hotels and restaurants. Management also anticipates acquisitions of attractive operations in the company's present lines of business. Cash Dividends Declared In a departure from past policy, the company commenced payment of cash dividends in January of 1978. The initial dividend of 12 cents per share annually amounted to 10% of net income. The company will continue its policy of reinvesting its cash flow substantially in new growth areas. But the 22