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| Title | Marriott Corporation, 1976 Annual Report |
| Creator (LCNAF) |
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| Publisher | Marriott International, Inc. |
| Date | 1976 |
| Description | Marriott Corporation Annual Report for the 52 weeks ending on July 30, 1976. |
| Subject.Topical (LCSH) |
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| Subject.Name (LCNAF) |
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| Genre (AAT) |
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| Language | English |
| Type (DCMI) |
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| 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 |
| Title | Image 24 |
| Format (IMT) |
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| File Name | hiltonar_201609_047_024.jpg |
| Transcript | operations increased $17 million to $87.5 million in fiscal 1976 and is expected to exceed $100 million in fiscal 1977 marking almost two decades of uninterrupted cash-flow growth. Debt maturities for the next five fiscal years ending in 1981 amount to only $83 million —less than cash flow from operations for fiscal 1976: Debt Maturity Schedule At Fiscal Year-en d (f Millions) Year 1976 1975 1974 1 10.1 11.4 12.8 2 17.7 14.7 18.7 3 18.2 14.1 14.8 4 19.1 20.3 27.7 5 18.0 23.9 27.2 83.1 84.4 101.2 Cash Flow From Operations 87.5 70.3 63.6 Balance Sheet Improves Increased cash flow, reduced capital expenditures and a 1,250,000-share equity offering combined to improve significantly the senior debt to total capitalization ratio from 54% in fiscal 1975 to 50% in fiscal 1976. On February 19,1976, the company successfully offered to the public 1,250,000 shares of common stock at a price of $18,375 per share. Net proceeds from this, the company's first equity issue since fiscal 1971, were $21.8 million. Capital expenditures declined as expected to $143 million in fiscal 1976 from the record $159 million expended in fiscal 1975. These expenditures were financed primarily from $87.5 million in cash flow from operations with the remainder provided from $30 million in new equity and $27 million in new long-term financing. With the recent completion of the theme parks, capital expenditures are expected to decline to approximately $115 million in fiscal 1977 and will be financed principally through internally generated funds. Impact from "Great America" The "Great America" theme parks will add significantly to 1977 results in their short operating season which falls in our 1st and 4th fiscal quarters. Almost all costs are allocated to the operating days, except for corporate administration and interest expense on this substantial investment. These costs are charged all year long, including the 2nd and 3rd fiscal quarters when the parks are closed. The result will be a shift in Marriott's quarterly results; instead of making half our net income in the 1st and 4th quarters, we expect in 1977 and future years to achieve as much as 60% of annual net income in those warm season quarters. Stock Information The board of directors declared a 2.5% stock dividend in March of 1976. The board has authorized a stock distribution, in the form of stock splits and/or dividends, every year since 1957. The range of Marriott common stock prices by quarter for fiscal 1976 and 1975 is as follows: 1976 Quarters 1975 Quarters High 13-1/8 Low 1st High 17-1/2 Low 1st 10-1/8 7-7/8 2nd 17 12-1/4 2nd 10-1/8 6 3rd 18-5/8 15-7/8 3rd 16-1/4 9 4th 16-3/4 13-1/4 4th 16-1/2 11 Marriott common stock (MHS) is listed on the New York, Pacific, Midwest and Philadelphia Stock Exchanges. Call options are traded on the Philadelphia Exchange. 22 INVESTED CAPITAL (In S millions) H Shareholders' Investment l|f| Convertible Subordinated Debt H Long-Term Debt 761 751 315.3145%! 31.3I5%| 350.9 (50%) 32.2 |5%| 34.3 (7%) 251.8|49%| 5.011%| 250.8155%! 330.0 I54%| 174.2147%! 6.111%| Total S697.5 $615.9 S513.2 S455.5 J372.9 192.6 |52%| |