The document is Host Marriott's 2003 annual report. It discusses the company's goals of being the premier hospitality real estate company through owning high quality lodging assets. In 2003, key achievements included acquiring the Hyatt Regency Maui, resolving issues regarding the New York Marriott World Trade Center, selling non-core assets, issuing common stock, and refinancing debt. However, operations were challenging due to events like SARS and a slow economy. The company aims to enhance returns through aggressive asset management and capital allocation to create shareholder value.
Here are the key ways Inside Sales contributes to the SMS&P scorecard metrics:
- Revenue Generated by Tele (green) - Inside Sales directly generates revenue through sales of Microsoft products.
- Tele Revenue per Head (green) - Inside Sales revenue generation is measured per sales representative.
- Annuity Revenue (green) - Inside Sales helps grow recurring revenue through multi-year agreements.
- Tele ROI (green) - Inside Sales revenue generation is measured against costs to calculate return on investment.
- Red Carpet Execution (yellow) - Inside Sales supports customer transitions through the Red Carpet program.
- Account Discovery (yellow) - Inside Sales conducts account profiling to understand customer needs.
This document is an issue of the magazine "Perform" which discusses performance management. The main article is titled "The Future of the Scorecard" and discusses how performance scorecards have evolved over time from financial measures to include more strategic non-financial metrics. Other articles in the issue discuss various organizations that have implemented performance management solutions from Actuate and its recent acquisition, Xenos, to improve business performance.
The Concept Of Value In Compensation PracticeWageLINK
The document discusses the concept of value in compensation practice and outlines an 11-step process for balancing internal and external job values, which includes conducting a market analysis, defining evaluation factors, weighting factors, evaluating jobs, and graphing results to ensure internal job evaluations align with market values. The goal is to establish pay ranges where salary midpoints represent the desired market position.
Fiserv is a leading provider of financial technology and services. It serves over 10,000 clients worldwide including banks, brokerages, insurance companies, and other financial institutions. In 1999, Fiserv's revenues were $1.41 billion, a 14% increase over 1998. Net income was $137.9 million, or $1.09 per share. The document discusses Fiserv's strategic vision and positioning in providing technology solutions to help financial institutions adapt to a converging and expanding financial world driven by consumer demands, regulation changes, and advancing technology.
This document is Tenet Healthcare Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 30, 2006. It provides condensed consolidated financial statements and notes for the periods ended September 30, 2006 and 2005. Some key details include:
- Net operating revenues for the quarter were $2.117 billion, compared to $2.150 billion for the same period in 2005.
- Net loss for the quarter was $89 million, compared to a net loss of $401 million for the same period in 2005.
- As of September 30, 2006, Tenet operated 66 general hospitals with a total of 17,016 licensed beds across 12 states.
Agilent Technologies had a successful turnaround year in 2004. They achieved strong profitability, completed an operational transformation, introduced new products, and improved competitively. The report discusses Agilent's financial performance, operational transformation, investments in R&D, customer focus, and outlook for 2005 with a new CEO.
- Agilent completed the sale of its semiconductor products business and divested its semiconductor test business in 2006, launching Verigy as an independent company and completing a $4.4 billion stock repurchase program.
- Agilent is now organized into two business groups: electronic measurement and bio-analytical measurement.
- In 2007, Agilent will focus on the second phase of its transformation to achieve higher sustainable growth through organic growth initiatives and targeted acquisitions in its two business groups.
This document provides notice of Agilent Technologies' 2003 annual meeting of stockholders. The meeting will be held on March 4, 2003 at 10:00 am at the South San Francisco Conference Center in South San Francisco, California. Items of business to be voted on include the election of directors, ratification of the appointment of PricewaterhouseCoopers LLP as the company's independent accountants, and approval of an amendment to the company's stock plan to allow for the exchange of options. The document provides information on voting procedures and recommendations by the board.
Here are the key ways Inside Sales contributes to the SMS&P scorecard metrics:
- Revenue Generated by Tele (green) - Inside Sales directly generates revenue through sales of Microsoft products.
- Tele Revenue per Head (green) - Inside Sales revenue generation is measured per sales representative.
- Annuity Revenue (green) - Inside Sales helps grow recurring revenue through multi-year agreements.
- Tele ROI (green) - Inside Sales revenue generation is measured against costs to calculate return on investment.
- Red Carpet Execution (yellow) - Inside Sales supports customer transitions through the Red Carpet program.
- Account Discovery (yellow) - Inside Sales conducts account profiling to understand customer needs.
This document is an issue of the magazine "Perform" which discusses performance management. The main article is titled "The Future of the Scorecard" and discusses how performance scorecards have evolved over time from financial measures to include more strategic non-financial metrics. Other articles in the issue discuss various organizations that have implemented performance management solutions from Actuate and its recent acquisition, Xenos, to improve business performance.
The Concept Of Value In Compensation PracticeWageLINK
The document discusses the concept of value in compensation practice and outlines an 11-step process for balancing internal and external job values, which includes conducting a market analysis, defining evaluation factors, weighting factors, evaluating jobs, and graphing results to ensure internal job evaluations align with market values. The goal is to establish pay ranges where salary midpoints represent the desired market position.
Fiserv is a leading provider of financial technology and services. It serves over 10,000 clients worldwide including banks, brokerages, insurance companies, and other financial institutions. In 1999, Fiserv's revenues were $1.41 billion, a 14% increase over 1998. Net income was $137.9 million, or $1.09 per share. The document discusses Fiserv's strategic vision and positioning in providing technology solutions to help financial institutions adapt to a converging and expanding financial world driven by consumer demands, regulation changes, and advancing technology.
This document is Tenet Healthcare Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 30, 2006. It provides condensed consolidated financial statements and notes for the periods ended September 30, 2006 and 2005. Some key details include:
- Net operating revenues for the quarter were $2.117 billion, compared to $2.150 billion for the same period in 2005.
- Net loss for the quarter was $89 million, compared to a net loss of $401 million for the same period in 2005.
- As of September 30, 2006, Tenet operated 66 general hospitals with a total of 17,016 licensed beds across 12 states.
Agilent Technologies had a successful turnaround year in 2004. They achieved strong profitability, completed an operational transformation, introduced new products, and improved competitively. The report discusses Agilent's financial performance, operational transformation, investments in R&D, customer focus, and outlook for 2005 with a new CEO.
- Agilent completed the sale of its semiconductor products business and divested its semiconductor test business in 2006, launching Verigy as an independent company and completing a $4.4 billion stock repurchase program.
- Agilent is now organized into two business groups: electronic measurement and bio-analytical measurement.
- In 2007, Agilent will focus on the second phase of its transformation to achieve higher sustainable growth through organic growth initiatives and targeted acquisitions in its two business groups.
This document provides notice of Agilent Technologies' 2003 annual meeting of stockholders. The meeting will be held on March 4, 2003 at 10:00 am at the South San Francisco Conference Center in South San Francisco, California. Items of business to be voted on include the election of directors, ratification of the appointment of PricewaterhouseCoopers LLP as the company's independent accountants, and approval of an amendment to the company's stock plan to allow for the exchange of options. The document provides information on voting procedures and recommendations by the board.
The document is Barnes & Noble's 2006 annual report. It includes the letter to shareholders which discusses the challenges of 2006 including soft book sales industry wide and increased competition putting pressure on pricing. It also discusses initiatives like expanding membership discounts and efforts to improve distribution. The financial highlights provide selected financial data for 2006 and prior years including income statements, balance sheets, store counts and sales comparisons.
Agilent had an outstanding year financially in 2004 with orders up 15% and revenue up 19%. They completed an operational transformation that reduced costs and improved their IT systems. All business groups were profitable except for the camera module business which will be sold. R&D spending was maintained at $914M and resulted in several new product launches. Customer satisfaction improved due to new products and quality initiatives. Agilent was recognized for its corporate citizenship through diversity programs and community involvement. The outlook for 2005 is cautious due to inventory issues but profitability and growth remain the priorities through innovation and efficiency.
The document is the 2003 annual report for Barnes & Noble Inc. that provides consolidated financial highlights and selected financial data for fiscal years 2003 through 1999. Some key details include:
- Total sales increased to $5.95 billion in 2003 from $5.27 billion in 2002, driven by increases in Barnes & Noble bookstore and GameStop sales.
- Net earnings increased 49% to $151.9 million and earnings per share increased 49% and 30% for basic and diluted EPS, respectively, in 2003 compared to 2002.
- Barnes & Noble store sales increased 8% to $3.86 billion in 2003, while GameStop sales increased 17% to $1.58 billion.
- The number of
This document is the 2003 annual report financials for an unnamed company. It includes selected financial data from 1999-2003, including metrics like net revenue, income/loss from continuing operations, and income/loss per share. It also lists consolidated statement of operations data and consolidated balance sheet data for the same years. The financial data shows declining net revenue and losses from continuing operations in recent years. Notes provide additional context for restructuring charges and other factors impacting the yearly results.
This document provides an overview of Northern Trust Corporation's strong financial performance over the past 20 years despite navigating various economic crises and interest rate cycles. It highlights record financial results in 2007 with growth in revenues, net income, assets under custody and management. Northern Trust has achieved positive or neutral operating leverage in 17 of the past 20 years. The presentation focuses on net interest income growth, credit quality, capital management and business unit financials.
The 1999 annual report discusses the formation of Agilent Technologies as an independent company from Hewlett-Packard in 1999. Key events included HP announcing plans to split into two companies in March 1999, Agilent being named as the new company in July 1999, and Agilent becoming a publicly traded company on the NYSE in November 1999. The CEO expresses pride in how the over 42,000 Agilent employees seized the opportunity of forming a new company and accomplished ambitious goals aggressively. The report discusses Agilent's vision of being an innovative growth company focused on opportunities in communications and life sciences.
In 3 sentences:
The annual report discusses Agilent's financial results and strategic priorities for 2003 and 2004. It highlights that Agilent returned to profitability in Q4 2003 by lowering costs through job cuts and operational improvements. The report also outlines Agilent's strategic focus on sustaining profitability, growing faster than markets, investing in key areas, and capturing opportunities in emerging markets.
The document provides financial statements and other financial information for Allegheny Technologies Incorporated and its subsidiaries. It includes consolidated statements of income, sales and operating profit by business segment, balance sheets, cash flows, selected financial data, and other financial metrics for Q3 2008 and year-to-date compared to the same periods in 2007. Overall, net income decreased year-over-year though sales increased slightly. Cost of sales and selling/administrative expenses also increased.
This annual financial report summarizes Northern Trust Corporation's financial results for 2007. Key highlights include:
- Revenues reached record levels of $3.57 billion, up 17% from 2006, driven by growth in trust, investment and other servicing fees.
- Net income increased 9% to $726.9 million while earnings per share grew 8% to $3.24. Excluding Visa charges, operating earnings per share increased 22%.
- Total assets under custody or administration increased to a record high of $3.6 trillion, reflecting growth in international markets.
- Strong financial performance achieved each of the Corporation's long-term strategic targets for revenue, earnings per share, return on equity, and
The document announces the annual meeting of stockholders of Northern Trust Corporation to be held on April 21, 2009 at 10:30 am at their offices in Chicago, Illinois. The purposes of the meeting are to elect 14 directors, ratify the appointment of the independent auditors, consider an advisory vote on executive compensation, and address any other business matters. Stockholders of record as of March 2, 2009 are eligible to vote. Stockholders are urged to vote by proxy card, telephone, internet, or in person at the meeting.
This document provides an annual report for Barnes & Noble for the 1998 fiscal year. It summarizes the company's financial performance including record sales of over $3 billion and net earnings of $92.4 million. It highlights the opening of 50 new stores, including flagship locations in Baltimore, Salt Lake City, and Calabasas. The report also discusses the company's continued focus on building community within its stores through events and author appearances while expanding its online business through barnesandnoble.com.
Northern Trust Corporation reported strong financial results in 2004, with record annual revenues and net income. Total assets under administration rose 23% to a record $2.6 trillion, while assets under management increased 19% to $571.9 billion. Net income was $505.6 million, a 24.9% increase over 2003, and net income per share was $2.27. Total revenues increased 9% to $2.3 billion, driven by growth in trust fees and foreign exchange trading profits. The company paid its 108th consecutive year of dividends.
URS Corporation filed its annual report on Form 10-K for the fiscal year ended December 28, 2007. The filing includes information on the company's business segments, clients served, services provided, and markets addressed. It also provides consolidated financial statements and notes to the financial statements.
Foot Locker, Inc. is the world's leading retailer of athletic footwear and apparel, operating approximately 4,000 stores globally under various brand names. In 2006, the company generated $5.75 billion in total sales but did not meet all financial goals due to challenges faced. However, the company has a diversified business portfolio and management team that positions it for continued growth by enhancing its existing business and pursuing new opportunities like acquisitions and store formats.
The document is a proxy statement from URS Corporation announcing their 2008 Annual Meeting of Shareholders. It provides details on five items of business to be voted on: 1) Election of directors, 2) Approval of an amendment to increase authorized shares of common stock, 3) Approval of the 2008 Equity Incentive Plan, 4) Approval of the 2008 Employee Stock Purchase Plan, and 5) Ratification of the selection of PricewaterhouseCoopers LLP as the independent auditor. It also provides information on voting procedures, the board's voting recommendations, and the vote required to approve each item.
This document describes Saskia Tjepkema's 2003 PhD thesis from the University of Twente titled "The learning infrastructure of self-managing work teams." The thesis examines how learning within self-managing work teams can be facilitated by focusing on the teams' learning infrastructure. It develops a framework for analyzing the support and conditions for learning within teams. Through literature review, group interviews, and case studies, it identifies elements of teams' learning infrastructures that are important for supporting learning. The thesis relates self-managing teams to the broader concept of organizations becoming learning organizations and the role teams can play in facilitating organizational learning.
Presentation slides from the SureSkills Agile - Making it Work breakfast briefing which was held on the 27th of November in the DoubleTree by Hilton on Burlington Road, Dublin 4.
Slides Overview:
SureSkills Introduction to Agile by Bill Heffernan,
Agile – Making it work in a real environment by Cameron O Connor, SQS/SureSkills
Working on a Scrum team, Colm O'hEocha, AgileInnovation
Real word case study - Rolling out Agile in Paddy Power
Paul Hayes, Paddy Power
FriendlyMobile.com provides mobile website services to help businesses adapt to the growing mobile market. More than 80% of phones purchased today are smartphones, and mobile searches have quadrupled in the last year. Most mobile users are more likely to do business with a company that has a mobile-friendly site. FriendlyMobile allows businesses to preview a mobile site, purchase a site including top pages, choose hosting, and launch a site to increase customer leads. Their services are well-suited for local businesses, service-based businesses, and restaurants.
This annual report summarizes the financial performance of Circuit City Stores, Inc. and its subsidiaries Circuit City and CarMax for the fiscal year 2000. Some key highlights include:
- Circuit City Stores saw net sales of $12.6 billion in 2000, up from $10.8 billion in 1999. Earnings from continuing operations were $327.8 million.
- The Circuit City Group, which includes Circuit City retail stores and CarMax, had net sales of $10.6 billion in 2000, up from $9.3 billion in 1999. Earnings from continuing operations before interest in CarMax were $326.7 million.
- CarMax operated 40 used car superstores and franchises
This annual report summarizes the financial performance of Circuit City Stores, Inc. and its subsidiaries Circuit City and CarMax for the fiscal year 2000. Some key highlights include:
- Circuit City Stores saw net sales of $10.8 billion in fiscal year 2000, up from $8.87 billion in 1999. Earnings from continuing operations were $211 million.
- The Circuit City Group, which includes Circuit City retail stores and CarMax, had net sales of $9.34 billion in 2000, up from $8 billion in 1999. Earnings from continuing operations before interest in CarMax were $235 million.
- CarMax operated 40 used car superstores and franchises in 2000, up
1) The document is Archer Daniels Midland Company's 2006 Annual Report.
2) It discusses the retirement of G. Allen Andreas as CEO and Chairman of the Board after over 30 years of service, during which he led global expansion and improvements in governance.
3) Under his leadership, ADM transitioned from a focus on U.S. processing to a more global business model, establishing leadership positions in important international markets.
The document is Barnes & Noble's 2006 annual report. It includes the letter to shareholders which discusses the challenges of 2006 including soft book sales industry wide and increased competition putting pressure on pricing. It also discusses initiatives like expanding membership discounts and efforts to improve distribution. The financial highlights provide selected financial data for 2006 and prior years including income statements, balance sheets, store counts and sales comparisons.
Agilent had an outstanding year financially in 2004 with orders up 15% and revenue up 19%. They completed an operational transformation that reduced costs and improved their IT systems. All business groups were profitable except for the camera module business which will be sold. R&D spending was maintained at $914M and resulted in several new product launches. Customer satisfaction improved due to new products and quality initiatives. Agilent was recognized for its corporate citizenship through diversity programs and community involvement. The outlook for 2005 is cautious due to inventory issues but profitability and growth remain the priorities through innovation and efficiency.
The document is the 2003 annual report for Barnes & Noble Inc. that provides consolidated financial highlights and selected financial data for fiscal years 2003 through 1999. Some key details include:
- Total sales increased to $5.95 billion in 2003 from $5.27 billion in 2002, driven by increases in Barnes & Noble bookstore and GameStop sales.
- Net earnings increased 49% to $151.9 million and earnings per share increased 49% and 30% for basic and diluted EPS, respectively, in 2003 compared to 2002.
- Barnes & Noble store sales increased 8% to $3.86 billion in 2003, while GameStop sales increased 17% to $1.58 billion.
- The number of
This document is the 2003 annual report financials for an unnamed company. It includes selected financial data from 1999-2003, including metrics like net revenue, income/loss from continuing operations, and income/loss per share. It also lists consolidated statement of operations data and consolidated balance sheet data for the same years. The financial data shows declining net revenue and losses from continuing operations in recent years. Notes provide additional context for restructuring charges and other factors impacting the yearly results.
This document provides an overview of Northern Trust Corporation's strong financial performance over the past 20 years despite navigating various economic crises and interest rate cycles. It highlights record financial results in 2007 with growth in revenues, net income, assets under custody and management. Northern Trust has achieved positive or neutral operating leverage in 17 of the past 20 years. The presentation focuses on net interest income growth, credit quality, capital management and business unit financials.
The 1999 annual report discusses the formation of Agilent Technologies as an independent company from Hewlett-Packard in 1999. Key events included HP announcing plans to split into two companies in March 1999, Agilent being named as the new company in July 1999, and Agilent becoming a publicly traded company on the NYSE in November 1999. The CEO expresses pride in how the over 42,000 Agilent employees seized the opportunity of forming a new company and accomplished ambitious goals aggressively. The report discusses Agilent's vision of being an innovative growth company focused on opportunities in communications and life sciences.
In 3 sentences:
The annual report discusses Agilent's financial results and strategic priorities for 2003 and 2004. It highlights that Agilent returned to profitability in Q4 2003 by lowering costs through job cuts and operational improvements. The report also outlines Agilent's strategic focus on sustaining profitability, growing faster than markets, investing in key areas, and capturing opportunities in emerging markets.
The document provides financial statements and other financial information for Allegheny Technologies Incorporated and its subsidiaries. It includes consolidated statements of income, sales and operating profit by business segment, balance sheets, cash flows, selected financial data, and other financial metrics for Q3 2008 and year-to-date compared to the same periods in 2007. Overall, net income decreased year-over-year though sales increased slightly. Cost of sales and selling/administrative expenses also increased.
This annual financial report summarizes Northern Trust Corporation's financial results for 2007. Key highlights include:
- Revenues reached record levels of $3.57 billion, up 17% from 2006, driven by growth in trust, investment and other servicing fees.
- Net income increased 9% to $726.9 million while earnings per share grew 8% to $3.24. Excluding Visa charges, operating earnings per share increased 22%.
- Total assets under custody or administration increased to a record high of $3.6 trillion, reflecting growth in international markets.
- Strong financial performance achieved each of the Corporation's long-term strategic targets for revenue, earnings per share, return on equity, and
The document announces the annual meeting of stockholders of Northern Trust Corporation to be held on April 21, 2009 at 10:30 am at their offices in Chicago, Illinois. The purposes of the meeting are to elect 14 directors, ratify the appointment of the independent auditors, consider an advisory vote on executive compensation, and address any other business matters. Stockholders of record as of March 2, 2009 are eligible to vote. Stockholders are urged to vote by proxy card, telephone, internet, or in person at the meeting.
This document provides an annual report for Barnes & Noble for the 1998 fiscal year. It summarizes the company's financial performance including record sales of over $3 billion and net earnings of $92.4 million. It highlights the opening of 50 new stores, including flagship locations in Baltimore, Salt Lake City, and Calabasas. The report also discusses the company's continued focus on building community within its stores through events and author appearances while expanding its online business through barnesandnoble.com.
Northern Trust Corporation reported strong financial results in 2004, with record annual revenues and net income. Total assets under administration rose 23% to a record $2.6 trillion, while assets under management increased 19% to $571.9 billion. Net income was $505.6 million, a 24.9% increase over 2003, and net income per share was $2.27. Total revenues increased 9% to $2.3 billion, driven by growth in trust fees and foreign exchange trading profits. The company paid its 108th consecutive year of dividends.
URS Corporation filed its annual report on Form 10-K for the fiscal year ended December 28, 2007. The filing includes information on the company's business segments, clients served, services provided, and markets addressed. It also provides consolidated financial statements and notes to the financial statements.
Foot Locker, Inc. is the world's leading retailer of athletic footwear and apparel, operating approximately 4,000 stores globally under various brand names. In 2006, the company generated $5.75 billion in total sales but did not meet all financial goals due to challenges faced. However, the company has a diversified business portfolio and management team that positions it for continued growth by enhancing its existing business and pursuing new opportunities like acquisitions and store formats.
The document is a proxy statement from URS Corporation announcing their 2008 Annual Meeting of Shareholders. It provides details on five items of business to be voted on: 1) Election of directors, 2) Approval of an amendment to increase authorized shares of common stock, 3) Approval of the 2008 Equity Incentive Plan, 4) Approval of the 2008 Employee Stock Purchase Plan, and 5) Ratification of the selection of PricewaterhouseCoopers LLP as the independent auditor. It also provides information on voting procedures, the board's voting recommendations, and the vote required to approve each item.
This document describes Saskia Tjepkema's 2003 PhD thesis from the University of Twente titled "The learning infrastructure of self-managing work teams." The thesis examines how learning within self-managing work teams can be facilitated by focusing on the teams' learning infrastructure. It develops a framework for analyzing the support and conditions for learning within teams. Through literature review, group interviews, and case studies, it identifies elements of teams' learning infrastructures that are important for supporting learning. The thesis relates self-managing teams to the broader concept of organizations becoming learning organizations and the role teams can play in facilitating organizational learning.
Presentation slides from the SureSkills Agile - Making it Work breakfast briefing which was held on the 27th of November in the DoubleTree by Hilton on Burlington Road, Dublin 4.
Slides Overview:
SureSkills Introduction to Agile by Bill Heffernan,
Agile – Making it work in a real environment by Cameron O Connor, SQS/SureSkills
Working on a Scrum team, Colm O'hEocha, AgileInnovation
Real word case study - Rolling out Agile in Paddy Power
Paul Hayes, Paddy Power
FriendlyMobile.com provides mobile website services to help businesses adapt to the growing mobile market. More than 80% of phones purchased today are smartphones, and mobile searches have quadrupled in the last year. Most mobile users are more likely to do business with a company that has a mobile-friendly site. FriendlyMobile allows businesses to preview a mobile site, purchase a site including top pages, choose hosting, and launch a site to increase customer leads. Their services are well-suited for local businesses, service-based businesses, and restaurants.
This annual report summarizes the financial performance of Circuit City Stores, Inc. and its subsidiaries Circuit City and CarMax for the fiscal year 2000. Some key highlights include:
- Circuit City Stores saw net sales of $12.6 billion in 2000, up from $10.8 billion in 1999. Earnings from continuing operations were $327.8 million.
- The Circuit City Group, which includes Circuit City retail stores and CarMax, had net sales of $10.6 billion in 2000, up from $9.3 billion in 1999. Earnings from continuing operations before interest in CarMax were $326.7 million.
- CarMax operated 40 used car superstores and franchises
This annual report summarizes the financial performance of Circuit City Stores, Inc. and its subsidiaries Circuit City and CarMax for the fiscal year 2000. Some key highlights include:
- Circuit City Stores saw net sales of $10.8 billion in fiscal year 2000, up from $8.87 billion in 1999. Earnings from continuing operations were $211 million.
- The Circuit City Group, which includes Circuit City retail stores and CarMax, had net sales of $9.34 billion in 2000, up from $8 billion in 1999. Earnings from continuing operations before interest in CarMax were $235 million.
- CarMax operated 40 used car superstores and franchises in 2000, up
1) The document is Archer Daniels Midland Company's 2006 Annual Report.
2) It discusses the retirement of G. Allen Andreas as CEO and Chairman of the Board after over 30 years of service, during which he led global expansion and improvements in governance.
3) Under his leadership, ADM transitioned from a focus on U.S. processing to a more global business model, establishing leadership positions in important international markets.
The document is ADM's 2004 annual report. It provides an overview of ADM's oilseeds processing segment. ADM processes a variety of oilseeds at facilities around the world, producing protein meals and vegetable oils. Meals are used mainly in animal feed while oils are used in food products and industrial applications. In fiscal 2004, oilseeds processing contributed $388 million in operating profit, or 19% of ADM's total operating profit. ADM has expanded its oilseeds processing capacity significantly in South America and Asia to capitalize on growth in those markets.
The document is HCA's 2002 annual report. It summarizes that 2002 was a successful year for HCA financially and in resolving investigations by the federal government. HCA reinvested $1.7 billion in its existing facilities and acquired additional hospitals. It also initiated several long-term programs to develop its workforce, such as scholarships through HCA Cares and military training through Army PaYS, to address the national nursing shortage. The CEO and COO were pleased with progress in 2002, their first full year in their roles, and committed to continued investment in facilities, technology, and employees.
This document is a financial supplement providing quarterly financial results for Genworth Financial, Inc. for 3Q 2008. It includes sections on net income, net operating income by business segment, balance sheets, investment portfolio details, and non-GAAP financial measures reconciliations. New metrics were added this quarter to provide more transparency into financial trends for the International and U.S. Mortgage Insurance segments.
This document is a financial supplement providing quarterly financial results for Genworth Financial, Inc. for 3Q 2008. It includes sections on net income, net operating income by business segment, balance sheets, investment portfolio details, and non-GAAP financial measures reconciliations. New metrics were added this quarter to provide more transparency into financial trends for the International and U.S. Mortgage Insurance segments.
This annual report summarizes Cooper Cameron's financial performance in 2001 and provides an outlook for 2002. Key points include:
- Revenues increased 13% to $1.56 billion in 2001, while EBITDA grew 17% to $251 million. However, the stock price declined 40% due to industry uncertainty.
- Productivity improvement and cost reduction remain priorities through the Six Sigma program and other initiatives.
- Global energy demand is expected to grow long-term at 2-3% annually, though customers' spending may be flat or down slightly in 2002 from 2001 levels.
- Acquisitions in 2001 added to Cooper Cameron's portfolio, as mergers and acquisitions activity was stepped up.
The annual report discusses Smurfit-Stone Corporation's performance in 2006 and strategies for 2007. Key points include:
- Smurfit-Stone achieved $243 million in cost savings in 2006 and exceeded its goal, closing plants and reducing headcount. It aims to achieve $525 million in savings by 2008.
- The company delivered solid financial results in 2006 despite inflation in input costs. However, it was not satisfied with financial performance.
- Smurfit-Stone is structured for growth in 2007 through initiatives to lower costs, drive revenue growth, build a high-performance team, and improve financial flexibility. It expects to deliver $180 million in additional cost savings in 2007.
- The report
The annual report discusses Smurfit-Stone Corporation's performance in 2006 and strategies for 2007. Key points include:
- Smurfit-Stone achieved $243 million in cost savings in 2006 from its strategic initiatives, exceeding its $240 million goal. It closed plants and reduced headcount.
- The company aims to deliver an additional $180 million in cost savings in 2007 to reach its $525 million goal by 2008.
- Smurfit-Stone's recycling division exceeded its 2006 targets and will focus on profit improvement and cost savings in 2007.
- The company's container division scaling plan is a critical 2007 initiative to drive further productivity gains.
This document is a financial supplement from Genworth Financial for the second quarter of 2007. It includes sections on net income, balance sheets, investments and sales by business segment. Some highlights include:
- Net income for various periods including the second quarter of 2007 and comparisons to prior years.
- Balance sheet information as of June 30, 2007 with comparisons to prior quarters. Total stockholders' equity excluding other comprehensive income was $12.4 billion as of Q2 2007.
- Sales and revenue information by business segment including Retirement and Protection, International, and U.S. Mortgage Insurance for the second quarter and comparisons to prior quarters.
This document is a financial supplement providing quarterly financial results for Genworth Financial, Inc. for the second quarter of 2007. It includes sections on net income, net operating income by business segment, balance sheets, investment portfolio details, and non-GAAP financial reconciliations. The supplement aims to provide transparency into financial trends through new disclosures on metrics like U.S. mortgage insurance growth, losses, and portfolio quality as well as regional sales data for payment protection insurance.
The document is Circuit City's 1999 annual report. It summarizes the company's financial highlights for fiscal years 1999, 1998, and 1997. Key points include net sales increasing to $10.8 billion in 1999 from $8.87 billion in 1998. Net earnings also increased to $142.9 million in 1999 from $104.3 million in 1998. The report provides separate financial summaries for Circuit City Group and CarMax Group.
The document is Circuit City's 1999 annual report. It summarizes the company's financial highlights for fiscal years 1999, 1998, and 1997. Key points include net sales increasing to $10.8 billion in 1999 from $8.87 billion in 1998. Net earnings also increased to $142.9 million in 1999 from $104.3 million in 1998. The report provides separate financial summaries for Circuit City Group and CarMax Group.
This document is a financial supplement providing quarterly financial results for Genworth Financial, Inc. for the fourth quarter of 2007. It includes sections on net income, net operating income by business segment, consolidated balance sheets, investments information, and reconciliations of non-GAAP measures to GAAP measures. The supplement provides detailed financial results and key metrics for Genworth's business segments to allow for analysis of performance on a quarterly basis.
This document is a financial supplement providing quarterly financial results for Genworth Financial, Inc. for the fourth quarter of 2007. It includes sections on net income, net operating income by business segment, consolidated and segment balance sheets, investment portfolio details, and reconciliations of non-GAAP measures. The supplement provides detailed performance metrics for Genworth's business segments to allow for analysis of results.
This document is a financial supplement providing quarterly financial results for Genworth Financial, Inc. for the fourth quarter of 2007. It includes sections on net income, net operating income by business segment, consolidated and segment balance sheets, investment portfolio details, and reconciliations of non-GAAP measures. The supplement provides detailed performance metrics for Genworth's business segments to allow for analysis of results.
This document is a financial supplement from Genworth Financial for the fourth quarter of 2006. It includes key financial highlights such as:
- Total stockholders' equity of $13.3 billion as of December 31, 2006.
- Book value per common share of $30.09 as of the end of the fourth quarter.
- Return on equity (ROE) of 11% for full year 2006 on a GAAP basis.
The supplement also provides detailed segment financial results, investment portfolio information, and other selected financial data for Genworth.
This document is a financial supplement from Genworth Financial for the fourth quarter of 2006. It includes key financial highlights such as:
- Total stockholders' equity of $13.3 billion as of December 31, 2006.
- Book value per common share of $30.09 as of the end of the fourth quarter.
- Return on equity (ROE) of 11% for full year 2006 on a GAAP basis.
The supplement also provides detailed segment financial results, investment portfolio information, and other selected financial data for Genworth.
This document is a financial supplement from Genworth Financial for the second quarter of 2006. It includes key financial highlights such as:
- Total stockholders' equity of $12.21 billion as of June 30, 2006.
- Book value per common share of $26.84 as of June 30, 2006.
- Return on equity of 10.8% for the twelve months ended June 30, 2006 on a GAAP basis and 11.1% on an operating basis.
- Weighted average shares used in basic EPS calculations was 455.8 million for the second quarter of 2006.
The document is URS Corporation's proxy statement for its 2006 annual meeting of shareholders. It provides information about matters to be voted on at the meeting, including the election of directors, an amendment to the company's equity incentive plan, and a shareholder proposal regarding majority voting. It also provides information about URS Corporation's board of directors, executive compensation, voting procedures, and other standard annual meeting topics.
This document is a proxy statement from URS Corporation providing notice of its 2007 Annual Meeting of Shareholders. It summarizes the business to be conducted including electing directors and ratifying the selection of the independent accounting firm. It provides details on voting procedures, recommendations of the board, and requirements for stockholder proposals for the next annual meeting.
The document is an amendment to a Form 10-K filed by URS Corporation to correct the application of an accounting standard. It restates financial statements for fiscal years 2004 and 2003 to properly report cash balances and book overdrafts. The amendment only impacts the company's balance sheet classifications and cash flow statements, and does not affect previously reported income, expenses, or stockholders' equity.
This document is an annual report filed by URS Corporation with the SEC. It provides an overview of the company's business for the past year. URS operates through two divisions, the URS Division and the EG&G Division, which provide professional planning, engineering, and technical services to federal and state government agencies and private clients. The report discusses URS' key markets and services, major client types, and provides a breakdown of fiscal year 2005 revenues by client type.
This document is an annual report filed by URS Corporation that provides an overview of the company's business for the past year. It discusses the company's clients, services, markets, and financial information. URS operates through two divisions, providing engineering and construction services, as well as systems engineering and technical assistance services primarily to US federal government agencies like the Departments of Defense and Homeland Security. The report provides details on the company's revenues, services, and markets by client type, including federal government, state and local government, private industry, and international clients.
URS Corporation provides engineering, construction, and operations and maintenance services worldwide. In 2004:
- URS enjoyed strong growth, benefiting from its scale and diversity of service offerings as well as its reputation for delivering high-quality, mission-critical services.
- The federal sector accounted for nearly 50% of revenue and continued to be a major driver of business, with growth in defense and homeland security projects.
- International operations performed well, with increases in transportation projects in Asia-Pacific and opportunities in Europe for environmental work.
URS Corporation had a very successful 2006 fiscal year, achieving record revenues of $4.2 billion and net income of $113 million. The company benefited from strong demand across all of its market sectors, particularly increased federal government spending on infrastructure and military projects. URS also saw a recovery in its private sector business, which grew 13% due to strategic partnerships with large corporations and increased capital spending in industries like oil and gas. Looking ahead, the company is well positioned for continued growth with a record backlog of $12.4 billion in business.
URS is one of the largest engineering design firms worldwide and provides services for infrastructure projects globally. Infrastructure such as transportation networks, water and wastewater systems, and public facilities are deteriorating and in need of modernization. Governments are increasing investment in infrastructure improvements to promote economic growth. URS is at the forefront of modernizing infrastructure, providing planning, engineering, architecture and construction management services for projects in the U.S., U.K., Australia and New Zealand. A 2005 study estimated $1.6 trillion is needed over five years for infrastructure upgrades in the U.S. alone.
URS Corporation is a fully integrated engineering, construction, and technical services organization with over 56,000 employees worldwide. In 2007, URS acquired Washington Group International, significantly expanding its capabilities. URS now offers services across the entire project lifecycle from planning and design through construction, operations and maintenance, and decommissioning. The acquisition nearly doubled URS's size and enhanced its ability to serve key markets such as power, infrastructure, federal, and industrial/commercial sectors.
Northern Trust Global Investments held an Investor Day in 2008 to outline its strategic priorities and growth opportunities. NTGIs key strategies are to serve personal and institutional clients through quantitative, manager of managers, and fixed income investments while building the business globally and delivering investment excellence. NTGIs assets under management have grown strongly to $778.6 billion as of March 2008 across asset classes, client segments, and investment styles including active, quantitative, and manager of managers approaches. NTGIs growth will be led by client specific solutions and expanding capabilities in both the personal and institutional markets globally.
This document outlines Northern Trust's Corporate & Institutional Services business. It discusses their strategic priorities which include competing globally, using complexity to drive innovation, offering a broad array of solutions, having a unique global operating model, and extending their industry-leading technology platform. It highlights their success in key regions around the world and with target client segments. It also discusses their asset servicing solutions, global operating model, growth in assets under custody and management, financial performance, and strategic growth initiatives focused on key regions.
Northern Trust's Personal Financial Services division provides wealth management services to high-net-worth individuals and families. It has over $146 billion in assets under management across private client services, wealth advisory services, and wealth management. The division aims to strengthen its client-centric culture and expand its service offerings through initiatives like integrated client teams, expanded investment solutions, and new services like family advisory offices.
This document provides an overview of Northern Trust Corporation's 2008 Investor Day presentation. It discusses Northern Trust's business model, key strategies, and growth opportunities across its Personal Financial Services, Corporate & Institutional Services, and Northern Trust Global Investments divisions. Financial highlights and performance metrics are also presented for each business segment. The presentation emphasizes Northern Trust's client-centric approach and focus on serving target institutional and affluent client markets globally.
The document is a presentation by Northern Trust Corporation's Chief Financial Officer at a banking conference in 2008. It discusses the changing landscape in the financial services industry brought on by the financial crisis. It summarizes Northern Trust's business model of focusing on wealth management and asset servicing, and its conservative approach. It highlights the company's strong capital position and asset quality compared to peers.
This document is a presentation by Northern Trust Corporation's president and CEO Frederick Waddell at the 2009 Citigroup Financial Services Conference. The presentation discusses:
1) Significant and rapid changes that occurred in the financial services industry in 2008, including government interventions and increased oversight.
2) Northern Trust's strategic positioning in corporate and institutional services, global investments, and personal financial services has allowed it to maintain sound fundamentals like earnings power and balance sheet strength.
3) Northern Trust has resisted changing its client-centric business model focused on sectors like pensions, endowments, and family offices, avoiding riskier areas like investment banking, sub-prime lending, and brokerage.
The document announces the annual meeting of stockholders of Northern Trust Corporation to be held on April 17, 2007 at 10:30 am at their headquarters in Chicago. The purposes of the meeting are to elect 14 directors, approve an amended stock plan, ratify the appointment of the independent auditors, and conduct any other business. Stockholders of record as of February 26, 2007 are eligible to vote. Stockholders are urged to vote promptly by returning their proxy card, voting by phone or internet, or attending the meeting in person.
This annual report summarizes Northern Trust Corporation's financial results for the year ending December 31, 2003. Net income was $404.8 million, down 9.4% from 2002. Total assets grew 4% to $39.1 trillion, with strong growth in trust assets under administration and assets under management. The report discusses Northern Trust's business strategy of focusing on investment management, asset administration, fiduciary and banking services for institutional and affluent clients. It provides an overview of financial results and business segments.
This annual report summarizes Northern Trust Corporation's financial results for 2005. Key points include:
- Revenues reached record levels of $2.69 billion, up 15% from 2004, driven by a 17% increase in trust, investment, and servicing fees.
- Net income was $584.4 million, up 16% compared to 2004.
- Total assets under management or administration increased 12% to a record $3.6 trillion due to strong new business growth internationally.
Northern Trust had a very strong financial performance in 2005. Net income grew 16% to $584 million and total revenues increased 15% to $2.7 billion. Assets under custody reached a record high of $2.9 trillion, up 15% from 2004, and assets under management grew 8% to $618 billion. Northern Trust continued its global expansion through acquisitions and new offices while maintaining its focus on serving private clients and institutional investors worldwide.
This document provides an overview and financial analysis of a corporation. It discusses the corporation's business strategy of focusing on investment management, asset servicing, and banking for institutional and affluent individual clients. It then summarizes the corporation's strong financial performance in 2006, with record net income of $665.4 million and revenue growth of 14%. Key metrics like assets under management and custody also reached record levels. The document analyzes the components of the corporation's revenues and expenses.
Vadhavan Port Development _ What to Expect In and Beyond (1).pdfjohnson100mee
The Vadhavan Port Development is poised to be one of the most significant infrastructure projects in India's maritime history. This deep-sea port, located in Maharashtra, promises to transform the region's economic landscape, bolster India's trade capabilities, and generate a plethora of employment opportunities. In this blog, we will delve into the various facets of the Vadhavan Port Development: what to expect in and beyond its completion, and how it stands to influence the future of India's maritime and economic sectors.
Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
Poonawalla Fincorp’s Strategy to Achieve Industry-Leading NPA Metricsshruti1menon2
Poonawalla Fincorp Limited, under the leadership of Managing Director Abhay Bhutada, has achieved industry-leading Gross Non-Performing Assets (GNPA) below 1% and Net Non-Performing Assets (NNPA) below 0.5% as of May 31, 2024. This success is attributed to a strategic vision focusing on prudent credit policies, robust risk management, and digital transformation. Bhutada's leadership has driven the company to exceed its targets ahead of schedule, emphasizing rigorous credit assessment, advanced risk management, and enhanced collection efficiency. By prioritizing customer-centric solutions, leveraging digital innovation, and maintaining strong financial performance, Poonawalla Fincorp sets new benchmarks in the industry. With a continued focus on asset quality, digital enhancement, and exploring growth opportunities, the company is well-positioned for sustained success in the future.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
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Calculation of compliance cost in the fishing industry of Russia after extended SCM model (Veterinary and sanitary control of aquatic biological resources (ABR) - Preparation of documents, passing expertise)
2. HOST MARRIOTT
o
Will be the premier hospitality real estate company.
We will own high quality lodging assets in
prime urban, airport and resort/convention locations.
Creating value through aggressive asset
management and disciplined capital allocation to generate
superior performance, we will maximize
shareholders’ returns through a combination of dividends,
growth in funds from operations and increases
to net asset value per share.
T H E H YAT T R E G E N C Y
CONTENTS
M AU I R E S O RT A N D S PA
TO OUR SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
The Hyatt Regency Maui pictured above
BOARD OF DIRECTORS AND MANAGEMENT TEAM. . . . . . . . . . . . . . . . . . . 16
and on our cover, represents our first
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF
property in the major resort destination
OPERATIONS AND FINANCIAL CONDITION . . . . . . . . . . . . . . . . . . . . . . . 17
of Hawaii. With 806 rooms and 125,000
FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
square feet of meeting and outdoor
AUDITED FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
function space, this premier hotel meets
MANAGEMENT’S REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
the needs of the most discerning business
INDEPENDENT AUDITORS’ REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
customer or individual guest, combining a
SELECTED FINANCIAL DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
world class spa, 36 holes of championship
HOST MARRIOTT PORTFOLIO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
golf and convention center complex, all
DIRECTORS AND OFFICERS . . . . . . . . . . . . . . . . . . . . . . . INSIDE BACK COVER
in an unmatched tropical setting.
CORPORATE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . INSIDE BACK COVER
3. FINANCIAL HIGHLIGHTS
(Unaudited, in millions, except per share data, hotel data, and stock price)(1) 2003 2002 2001
OPERATING DATA
Revenues $ 3,448 $ 3,516 $ 3,558
Operating profit 316 437 520
Net income (loss) 14 (16) 51
DILUTED EARNINGS (LOSS) PER COMMON SHARE
Income (loss) from continuing operations $ (.92) $ (.34) $ .06
Diluted earnings (loss) $ (.07) $ (.19) $ .08
Diluted weighted average shares outstanding 281.0 263.0 253.2
BALANCE SHEET DATA
Total assets $ 8,592 $ 8,316 $ 8,338
Debt 5,486 5,638 5,602
Convertible preferred securities 475 475 475
Equity 2,136 1,610 1,609
OTHER DATA
Adjusted EBITDA(2) $ 709 $ 851 $ 899
Funds from operations per diluted share(2) .99 1.09 1.42
Stock price on December 31st 12.32 8.85 9.00
COMPARABLE HOTEL DATA (3)
Number of properties 112 112
Number of rooms 54,888 54,888
Average daily rate $140.86 $143.60
Occupancy percentage 68.8% 70.4%
RevPAR(4) $ 96.85 $101.07
(1) This table presents certain selected historical data that has been derived from our audited consolidated financial statements and
other operating data of the company.
(2) Adjusted EBITDA is Earnings before Interest Expense, Income Taxes, Depreciation, Amortization and other items. Funds from operations (FFO) per
diluted share, as defined by the National Association of Real Estate Investment Trusts, is net income excluding gains or losses from sales of real estate, the
cumulative effect of changes in accounting principles, real estate-related depreciation and amortization and after adjustments for unconsolidated partner-
ships and joint ventures on a per share basis after adjustments for dilutive securities. FFO per diluted share and Adjusted EBITDA are non-GAAP financial
measures within the meaning of the rules of the Securities & Exchange Commission. See Management’s Discussion and Analysis of Results of Operations
and Financial Condition for further discussion.
(3) We define our comparable hotels as full-service properties that are owned or leased by us and the operations of which are included in our consolidated
results, whether as continuing operations or discontinued operations, for the entirety of the reporting periods being compared, and that have not sustained
substantial property damage or undergone large-scale capital projects during the reporting periods being compared.
(4) Room revenue per available room (“RevPAR”) represents the combination of average daily room rate charged and the average daily occupancy achieved,
and is a commonly used indicator of hotel performance. RevPAR does not include food and beverage or other ancillary revenues generated by the property.
HOST MARRIOTT 2003
~2~
4. TO OUR SHAREHOLDERS
We believe these achievements exemplify the focus and
disciplined approach to our business that has made the com-
pany the nation’s premier owner of lodging real estate.
From an operations perspective, 2003 was a challenging
year. The war in Iraq, continued volatility in terrorist threat
levels, severe acute respiratory syndrome (SARS) and a slowly
developing economy all had a significant impact on our
results. Comparable hotel revenue per available room declined
4.2 percent from 2002, with average room rates down 1.9
percent and a decrease in occupancy of 1.6 percentage points.
Earnings Before Interest Expense, Income, Taxes, Deprecation,
Amortization and other items (Adjusted EBITDA) decreased
17 percent in 2003 to $709 million. Funds From Operations
(FFO) per diluted share was $.99 for 2003 compared to
$1.09 for 2002 and our diluted loss per share was $.07
compared to diluted loss per share of $.19 in 2002. Our
financial results were significantly affected by several transac-
tions, including the gain of $212 million on the settlement of
the insurance claims for the New York Marriott World Trade
Center and Financial Center hotels, which was partially offset
by the expenses incurred with the repayment or refinancing of
over $1.3 billion of debt. Overall, these transactions increased
CHRISTOPHER J. NASSETTA RICHARD E. MARRIOTT
FFO per diluted share by $.34 and net income by $152 mil-
President and Chief Executive Officer Chairman of the Board
lion, or $.54 per share, in 2003.
We are pleased that we have finally started to see signs
Throughout the year, we have kept a clear focus on our
of a lodging industry recovery and, although the industry
long-term goal of maximizing shareholder value through
turnaround was delayed, the year ahead looks much brighter.
disciplined capital allocation, sound financial decision-
Host Marriott’s best-in-class lodging portfolio provides an
making and aggressive asset management. As detailed below,
unmatched opportunity to take advantage of a sustained
we achieved a number of important objectives during the
recovery in lodging fundamentals as the economy improves.
year and are poised to capitalize on new opportunities as
We will continue our aggressive portfolio management and
the recovery in the lodging industry strengthens:
remain disciplined in our approach to capital allocation to
we acquired the 806-room Hyatt Regency Maui Resort
★
generate superior performance in the years to come.
and Spa at a significant discount to replacement cost and,
S T R AT E G I C F O C U S
in the process, became the largest third-party owner of
Hyatt properties; Our long-term strategic focus remains consistent with
the philosophy that has driven our success over the past ten
we resolved all outstanding issues on the New York
★
years. We will continue to focus on the ownership of luxury
Marriott World Trade Center and Financial Center hotels
and upper-upscale urban and resort/convention hotels in
and received net proceeds of approximately $372 million;
prime locations, which we expect to outperform other lodging
we sold eight of our non-core hotels for total proceeds of
★
segments over the next industry cycle. In implementing this
approximately $190 million;
strategy, we will continue to look for ways to enhance the
we issued $500 million of common stock, which was par-
★
returns on our existing hotels by improving operations and
tially deployed to fund the acquisition of the Maui Hyatt;
selectively investing capital in high-yield projects, as well as
we refinanced over $800 million of debt, lowering our
★
fully utilizing our properties to their highest and best use.
average interest rate and extending our debt maturities;
Our ability to successfully implement our strategic vision
we repaid or redeemed approximately $500 million of
★
is predicated on a strong balance sheet. Over the past two
debt in 2003 and early 2004 with the proceeds from years, we have focused our attention on liquidity, maintaining
asset sales and the World Trade Center settlement; and a strong balance sheet, and increasing financial flexibility to be
we continued to engage “best-in-class” operators for our
★ able to meet the business challenges confronting the lodging
portfolio by converting the Boston Swissôtel to a Hyatt industry and to position the company to take advantage of
and the Atlanta Swissôtel to a Westin, which marks the value-creating opportunities as they arise. The results of our
first Starwood-branded hotel in our portfolio. efforts in 2003 and early 2004 were very successful.
HOST MARRIOTT 2003
~3~
5. provides an opportunity to further reduce our leverage in the
future by issuing common stock at an approximate 50 percent
premium to our current stock price. In the near-term, we will
pursue other opportunities to further reduce leverage by the
selective recycling of capital and the repayment of debt.
Having established this strong foundation, our balance sheet
will inevitably improve as operations continue to strengthen,
resulting in a positive impact on both our cost of capital and
our credit rating.
C A P I TA L A L L O C AT I O N
We have always strategically allocated capital to create
long-term shareholder value. At the time of the split of Host
Marriott and Marriott International, Inc. in 1993, over 55
percent of our hotel rooms were limited-service. We took
advantage of favorable market conditions by exiting the limited-
service hotel business while building our full-service portfolio
as we acquired premium hotel assets that met our demanding,
best-in-class standards. Prior to 1998, we bought $6 billion in
luxury and upper-upscale hotels at significant discounts to
replacement costs, growing our full-service portfolio over four-
fold. As both hotel property pricing and performance peaked,
we re-allocated capital expenditures to expand and invest in
our existing properties.
While we will continue to focus on improving the returns
The Ritz-Carlton Golf Resort, Naples on our existing properties, we believe that market conditions
in 2004 will provide a number of attractive opportunities to
The Ritz-Carlton Golf Resort, Naples is a luxurious golfer’s paradise,
acquire hotel properties that meet our criteria for excellence
surrounded by the 36-hole Greg Norman designed Tiburon Golf Club.
and provide the potential for attractive returns. We will consider
Opened just over two years, this property has already established itself using stock in making acquisitions when we are confident that
we can create value on a per share basis. Most importantly, we
as a premier resort destination, earning AAA’s Five-Diamond award
will continue our disciplined approach to growth by buying the
for exemplary service combined with its spectacular location
best assets, in the best markets, with the best brands, managed
along Florida’s gold coast.
by the best operators.
A recent example is the November 2003 acquisition of
the 806-room Hyatt Regency Maui Resort and Spa for $321
Our near-term liquidity is strong and more than suffi-
million. Nestled in a tropical paradise, overlooking 1,800-feet
cient to take advantage of acquisition opportunities that meet
of white sand beach and with Hawaii’s only oceanfront, full-
our investment criteria. We have over $500 million of available
service spa, the Hyatt Regency represents our first property
cash, a significant portion of which has been designated for
in this market. Consistently rated a top destination by Conde
acquisitions and investments in our existing portfolio. We also
Nast, the purchase of the Hyatt Regency is consistent with
have $250 million in available capacity under our credit facility
our goal of only acquiring properties that meet or exceed
and our near-term debt maturities are minimal.
our exacting best-in-class standards. We were able to add this
We have taken advantage of the favorable capital markets
premier hotel in a major resort market at a 20 percent dis-
and made significant strides toward reducing our overall leverage,
count to replacement cost and we are very confident in the
while lengthening our average debt maturity and decreasing
long-term prospects for this property.
our weighted average interest rate. We issued over $500 million
In pursuing this disciplined approach, we will seek to fur-
in equity, refinanced over $800 million of debt and repaid or
ther diversify our portfolio of brands. Our focus will continue to
redeemed over $500 million in debt. In the first quarter of
be luxury and upper-upscale properties located in urban and
2004, we continued to successfully apply this strategy by com-
resort/convention markets with high barriers to entry. We will
pleting a $500 million exchangeable debenture offering. The
debentures bear interest at 3 1/4 percent and the proceeds will target the industry’s strongest brands, working with operators
be used to redeem a portion of our 7 7/8 percent senior such as Hyatt, Hilton, Four Seasons and Starwood, while contin-
uing to strengthen our relationship with Marriott International.
notes. This financing further extends our maturities and
HOST MARRIOTT 2003
~4~
6. NEW YORK MARRIOTT M A RQU I S
Guests at the New York Marriott Marquis have a front-row, center seat
to the energy and excitement that radiates from New York City. Rising high above
Times Square in the heart of the Broadway theatre district, this 1,944-room luxury hotel
occupies a one-of-a-kind location in one of the world’s greatest cities.
7. F I V E S TA R A S S E T S
o THE RITZ-CARLTON, NAPLES
Resembling a grand Mediterranean villa, this luxurious 463-room hotel
is set amidst 20 beachfront acres on Florida’s southwest coast.
The Ritz-Carlton, Naples has earned both Mobil Five-Star
and AAA Five-Diamond recognition as one of the country’s top resorts.
Guests can watch the sun gleam on the Gulf of Mexico from private balconies
or stroll through manicured gardens, surrounded by Old World grandeur that
is the perfect setting for relaxation or a special business meeting.
8. select premium properties will result in fewer capital expendi-
ture demands, a higher replacement cost per room and a
higher growth rate.
Our business is capital intensive in terms of building,
furniture, fixtures and equipment maintenance and refurbish-
ment. On average, we spend $200 million to $250 million
annually on replacements, refurbishments and property
enhancements to uphold our standards and to drive future
revenue growth. Even in the difficult operating environment
over the last three years, we have managed the level of capital
expenditures to ensure that our hotels maintain our high
standards of excellence. During the year, we completed a
major rooms’ renovation at the San Francisco Moscone
Marriott and a significant portion of the rooms were reno-
vated at the New York Marriott Marquis. These properties
are now well equipped to enjoy the anticipated increase in
lodging demand. In 2004, we will renovate approximately
20 percent of our total guest rooms and approximately
13 percent of our total meeting space. We continue to seek
ways to improve the capital expenditure process, looking to
reduce overall outlays while increasing the useful life of
ongoing and necessary improvements.
We are also in various stages of expanding spas, ballrooms
and exhibit halls at several of our properties. These opportunities
provide some of the highest returns on our investment dollars.
San Francisco Moscone Marriott We believe these investments will drive performance and signifi-
A spectacular landmark in one of the world’s most picturesque cities, cantly enhance the long-term value of these properties.
the San Francisco Moscone Marriott features 1,498 rooms and over 100,000 square S U P E R I O R A S S E T M A N AG E M E N T
feet of meeting and banquet space. This premier convention hotel is just steps away Assuring strong growth in future revenues means imple-
menting strategic vision today. Strategic vision starts with
from the Moscone Convention Center and Buena Vista Gardens.
working closely with our hotel operators to implement a
strategic plan for each individual hotel in our portfolio. While
In this regard, we converted our Swissôtel Boston to the Boston for the past three years we have primarily focused on maintain-
Hyatt Regency in 2003 and we converted the Swissôtel Atlanta ing market share and controlling costs, with the improving
to the Westin Buckhead in early 2004. We believe the broader economy and the strengthening of lodging fundamentals, we
brand name recognition and resources of Hyatt and Starwood are shifting our focus to increasing revenues and developing
will help improve operations and drive profitability in the long- new opportunities for growth.
term at these hotels. Our hotels have historically generated a higher percentage
Part of our capital allocation process is the sale of non- of their revenues from corporate group and corporate transient
core assets that are not in keeping with our long-term strate- customers, which were among the most significantly affected
gic goals, or fail to meet our ongoing investment criteria, by events in 2003. While we are not able to fully replace these
provided we can obtain satisfactory pricing. Examples include revenues, we maximized results by concentrating on increasing
hotels in slower growth markets, or that have higher capital short-term group sales and on discounted individual and group
expenditure needs, that we expect will generate lower returns business. The size and location of our urban resort/
than the rest of the portfolio. In keeping with this strategy, convention hotels has helped in these efforts, enabling our
we sold eight properties during 2003 for $190 million and managers to be creative and flexible in using meeting and cater-
deployed the majority of the proceeds to repay debt. We ing space to adapt to the needs of both large and small groups.
expect to complete additional asset sales in 2004. This disci- Controlling operating costs has been a key priority over the
plined recycling of capital will be used to decrease our lever- past several years. The quality of our portfolio creates high
age or improve long-term returns by reinvesting sale proceeds guest expectations, and our team is working closely with our
in assets that meet our target profile. Ultimately, our focus on hotel operators to establish and refine operating benchmarks,
HOST MARRIOTT 2003
~8~
9. SAN DIEGO MARRIOTT HOTEL AND MARINA
The spectacular twin towers of the 1,356-room San Diego Marriott Hotel and Marina
are adjacent to the Convention Center and Seaport Village in the heart of downtown
San Diego. Within comfortable walking distance of the Gaslamp District, Farmers Market
and other attractions, the hotel has over 100,000 square feet of meeting space,
as well as a 446-slip marina, one of California’s largest.
10. P R E M I U M L O C AT I O N S
o ORLANDO WORLD CENTER MARRIOTT
One of the Nation’s great convention hotels, the Orlando World Center Marriott
is a landmark property in Central Florida. The 2,000-room hotel can
satisfy even the most discerning travelers searching for the best in accommodations
and recreational options close to the major Orlando attractions. The property’s
18-hole championship course, Hawk’s Landing, is a must for golf enthusiasts.
11. Historically, lodging industry performance has been highly
correlated to the increases in the U.S. Gross Domestic Product.
Because lodging results in the luxury and upper-upscale segments
typically trail improvements in GDP by several quarters, we
expect that rising levels of business travel and business invest-
ment will drive revenues at our hotels beginning in 2004.
While encouraged by those recent results, we are even
more convinced about the positive intermediate and long-
term prospects for the lodging industry as a whole and,
particularly, for Host Marriott. As the economy continues
to improve, lodging fundamentals will continue to strengthen
and increasing demand should result in meaningful growth
in RevPAR, earnings and dividends. Host Marriott’s combi-
nation of luxury and upper-upscale assets in prime locations
will drive premium pricing and returns as demand increases.
Our prudent stewardship and careful allocation of capital
should be rewarded with accelerating operating performance
and new opportunities for growth.
We are also pleased that we have a new member of our
Board of Directors who will help guide our company’s future
growth. John B. Morse, Jr., vice president and chief financial
officer of The Washington Post Company, joined our Board
in July 2003. His strong business skills and financial back-
ground will be a valuable addition to our independent Board,
supplementing and complementing the depth and range of
The Westin Buckhead Atlanta experience of our other members. We know Host Marriott
The Westin Buckhead Atlanta is perfectly situated in Atlanta’s will benefit from his contributions.
We also marked the departure this past November of
most affluent and fashionable business, shopping and entertainment district.
John G. Schreiber from our Board. John helped guide the
Our first property under the Westin brand, this 22-story landmark property
company through our conversion to a REIT and the turbu-
offers 365 rooms with luxurious handcrafted furnishings and lence of the last several years and we thank him for his
considerable contribution to our success. He will be missed.
the elegant dining experience of the Palm restaurant.
We are confident that our future is bright. That confi-
dence is based on the knowledge that Host Marriott truly is
the premier hospitality real estate company. With our best-in-
reduce labor costs and generate savings in ways that do not
class portfolio, management team and operators, we are well
impact on the perceived quality of our hotels or guest satisfac-
positioned to succeed. We are financially strong and poised
tion. We believe our cost control efforts have minimized the
for growth as the lodging industry recovers. We appreciate
overall decline in margins and achieved meaningful long-term
your support and are committed to creating shareholder value.
efficiencies that will enhance our future performance. However,
After three difficult years in the lodging industry, we are very
improvements in margins in 2004 will be difficult as increases in
optimistic about our prospects for 2004 and beyond.
costs such as wages and benefits are expected to exceed inflation.
OUTLOOK
The operating environment for the lodging industry has RICHARD E. MARRIOTT
brightened considerably over the last few months. Demand in Chairman of the Board
the upper-upscale segment started to accelerate in the second
half of the year and, we believe, will continue to grow for sev-
eral years. More importantly, we believe demand growth will CHRISTOPHER J. NASSETTA
be combined with a low rate of supply growth providing an President and Chief Executive Officer
ideal environment for improving financial performance. MARCH 12, 2004
HOST MARRIOTT 2003
~12~
12. BOSTON MARRIOTT COPLEY PLACE
The Boston Marriott Copley Place provides a convenient base for pleasure
and business travelers alike in Boston’s famous Back Bay. Staying in one of its 1,139 luxury
rooms enhances any trip to one of America’s most historic cities.
13. DISTINCTIVE MARKETS
o THE HYATT REGENCY MAUI RESORT SPA
AND
Located on Hawaii’s romantic and mystical island of Maui, the luxurious 806-room Hyatt
Regency Maui overlooks 1,800 feet of sparkling white sand beach. A uniquely island experience
with tropical waterfalls and brilliant foliage, guests can be pampered at the world-class spa or
experience the energy of a Hawaiian luau, building memories that last a lifetime.
14. BOARD OF DIRECTORS
Back row, left to right: Terence C. Golden, Ann McLaughlin Korologos, John B. Morse, Jr.,
Front row, left to right: Judith A. McHale, Christopher J. Nassetta, Richard E. Marriott, Robert M. Baylis
G R A N D H YAT T
AT L A N TA
Guests enjoy the elegance
and classic character of
MANAGEMENT TEAM
Back row, left to right: Jules A. Sieburgh, Matthew L. Richardson,
Elizabeth A. Abdoo, Pamela K. Wagoner, Richard A. Burton, Gregory J. Larson,
Front row, left to right: John A. Carnella, Larry K. Harvey, Christopher J. Nassetta,
W. Edward Walter, James F. Risoleo, Minaz Abji
HOST MARRIOTT 2003
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15. M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A LY S I S O F R E S U LT S O F
O P E R AT I O N S A N D F I N A N C I A L C O N D I T I O N
The following discussion should be read in conjunction with K E Y P E R F O R M A N C E I N D I C AT O R S
the consolidated financial statements and related notes included We have several key indicators that we use to evaluate the per-
elsewhere in this report. This discussion contains forward-look- formance of our business. These indicators include room revenue
ing statements about our business. These statements are based per available room, or RevPAR, and RevPAR penetration index.
on current expectations and assumptions that are subject to risks RevPAR is a commonly used measure within the hotel
and uncertainties. Actual results could differ materially because industry to evaluate hotel operations. RevPAR is defined as
of factors discussed in “Forward Looking Statements” contained the product of the average daily room rate charged and the
in this report. average daily occupancy achieved. RevPAR does not include
revenues from food and beverage or parking, telephone, or
other guest services generated by the property. Although
OVERVIEW
RevPAR does not include these ancillary revenues, it is gener-
Structure and Business. We are a real estate investment trust,
ally considered the leading indicator of core revenues for
or REIT, that owns 113 full-service hotel properties as of
many hotels. We also use RevPAR to compare the results of
February 15, 2004, which operate primarily in the luxury
our hotels between periods and to compare results of our
and upper-upscale hotel sectors. As of December 31, 2003, Host
comparable hotels. See “Comparable Hotel Operating
Marriott was the largest hotel REIT in the National Association
Statistics” for further discussion.
of Real Estate Investment Trust’s composite index. Host Marriott
We assess what causes changes in RevPAR because changes
conducts its operations through Host Marriott, L.P., or Host LP,
that result from occupancy as compared to those that result
of which Host Marriott is the sole general partner.
from room rate have different implications on overall revenue
Our hotels are operated under brand names that are among
levels as well as incremental operating profit. For example,
the most respected and widely recognized in the lodging
increases in occupancy at a hotel would lead to increases in
industry-including Marriott, Ritz-Carlton, Hyatt, Four Seasons,
ancillary revenues, such as food and beverage, parking and other
Hilton and Westin. The majority of our properties are located
hotel amenities, as well as additional incremental costs (includ-
in central business districts of major cities, near airports and in
ing housekeeping services, utilities and room amenity costs).
resort/convention locations. The target profile for our portfolio
RevPAR increases due to higher room rates, however, would not
includes luxury and upper-upscale full-service properties in
result in these additional room-related costs. For this reason,
locations where further large scale development is limited, which
while operating profit would typically increase when occupancy
we believe allows us to maintain room rate and occupancy
rises, RevPAR increases due to higher room rates would have a
premiums over our competitors. We seek to maximize the value
greater impact on our profitability.
of our portfolio through aggressive asset management, by direct-
A related revenue measure for our hotels is the RevPAR pen-
ing the managers of our hotels to maximize property operations
etration index. The RevPAR penetration index reflects each
and by completing strategic capital improvements. The majority
property’s RevPAR in relation to the RevPAR for that prop-
of our customers fall into two broad groups: transient and
erty’s competitive set. We use the measure as an indicator of a
group travelers. Our transient business, which includes the indi-
property’s market share. For example, a RevPAR penetration
vidual corporate and leisure traveler, is generally accommodated
index of 100 would indicate that a hotel’s RevPAR is, on aver-
at a premium rate when compared to other customer types.
age, the same as its competitors. A RevPAR penetration index
Group business includes hotel bookings related to conferences
exceeding 100 would indicate that a hotel maintains a RevPAR
and events. A smaller portion of our customer base results from
premium in relation to its competitive set, while a RevPAR pen-
contracts for a specified number of rooms over a fixed period.
etration index below 100 would be an indicator that a hotel is
Our hotels are required to be operated by third-party man-
underperforming its competitive set. One critical component in
agers. We retain these third party managers under long-term
this calculation is the determination of a hotel’s competitive set.
agreements under which they earn base and incentive manage-
Factors that we consider include geographic proximity, as well as
ment fees related to revenues and profitability of each individual
the level of service provided at the property. For example, a
hotel. We provide operating funds, or working capital, which the
hotel located near a convention center might have a competitive
managers use to operate the property including purchasing inven-
set that includes other hotels located in close proximity to the
tory and paying wages, utilities and property taxes and other
convention center. In addition, a luxury hotel might include
expenses. Our results of operations primarily represent hotel-level
other luxury or upper-upscale hotels in its competitive set, but
sales, which are room, food and beverage and other ancillary
not economy hotels. Our methodology for determining a hotel’s
income such as telephone, parking and other guest services.
competitive set, however, may differ from those used by other
Operating expenses consist of the costs to provide these services,
owners and/or managers.
as well as management fees paid to the operators of our hotels,
One of our key performance indicators is the profitability
real and personal property taxes, utilities, ground rent, equipment
of each hotel. Among other things, we use hotel adjusted
rent, property insurance, depreciation and other costs. We gener-
operating profit, which is a non-generally accepted accounting
ally receive a cash distribution, which reflects hotel-level sales less
principle, or non-GAAP, measure to evaluate this. Hotel
property-level operating expenses (excluding depreciation), from
adjusted operating profit measures property-level results before
our hotel managers each period.
HOST MARRIOTT 2003
~17~
16. funding furniture, fixtures and equipment reserves and debt 1.9% in 2000, 2001, 2002 and 2003, respectively.) We
service and is a supplemental measure of individual property- believe that the low construction levels over the past few years,
level profitability. The comparable hotel adjusted operating together with low expectations for additional supply growth
profit that we discuss is an aggregation of the adjusted operat- over the next few years, which is because new full-service
ing profit for each of our comparable hotels. See “Non- hotels typically take several years to build, will lead to an
GAAP Financial Measures-Comparable Hotel Operating imbalance between supply and growing demand that will allow
Results” for further discussion. We also use, among other for improved RevPAR performance at our hotels.
things, FFO per diluted share as a supplemental measure of In 2003, our hotel revenues (as presented in our statement
company-wide profitability. See “Non-GAAP Financial of operations) declined 2.3% from 2002 as a result of the fac-
Measures-FFO per Diluted Share” for further discussion. tors discussed above. However, because accounting rules require
Each of the non-GAAP measures should be considered by us to reclassify the results of operations of hotels we have sold
investors as supplemental measures to generally accepted or designated as held for sale to discontinued operations, the
accounting principles, or GAAP, performance measures such as decrease in revenues was actually higher. Hotel sales, including
total revenues, operating profit and earnings per share. the results of hotels acquired or disposed of during 2003 and
2002 through the date of their respective disposition or acqui-
sition, declined 3.4%, which follows a similar decline of 3.6%
2 0 0 3 A N D 2 0 0 4 L O D G I N G I N D U S T RY A S S E S S M E N T
in 2002 from 2001. Hotel revenues were also down in the
We believe the lodging industry was negatively effected in
fourth quarter of 2003 as compared to the fourth quarter of
2003 by low levels of business travel resulting from a weak
2002, but the decline in revenues was less than the decline in
economy (predominantly in the first half of the year), the war
the first three quarters of 2003. In response to the decline in
in Iraq, continued changes in terrorist threat levels and travel
operations of our hotels over the last several years, we have
reductions and restrictions related to severe acute respiratory
been working with our managers to achieve cost reductions at
syndrome, or SARS. Strong economic growth in the United
our properties. We believe these efforts have slowed the decline
States economy in the second half of 2003 helped improve
in the operating margins of our hotels and should create some
lodging demand, but generally not enough to offset the weak
long-term efficiencies. However, in 2003, our operating mar-
lodging demand in the first half.
gins declined further because significant components of our
Our industry outlook for 2004 is more optimistic.
costs, such as employee wages and benefits, property taxes,
Historically, we have seen that lodging demand in the
insurance and utilities increased at a rate greater than inflation.
United States correlates to U.S. Gross Domestic Product, or
In addition, other costs, such as property taxes are relatively
GDP, growth, with typically a one to two quarter lag period
inflexible and tend to remain somewhat constant regardless of
especially within the luxury and upper-upscale sectors of the
any reduction in hotel property revenues. As a result, a change
lodging industry. Therefore, given the relatively strong U.S.
in our revenues usually results in a greater percentage change in
GDP growth in the second half of 2003 and the forecasts
our earnings and cash flows.
for 2004, we are optimistic about improvement in lodging
During 2003, the average RevPAR penetration index, or
demand in 2004. In addition, based on these GDP forecasts,
market share, for our comparable hotels modestly declined,
as well as the anticipated strengthening of corporate profits
but it remains at a premium in relation to our competitive set.
and capital investment, we expect an increase in business-
We believe that this decline in market share occurred because:
related travel and improvement in the pace of group bookings.
• our hotels generally have a higher percentage of their rev-
In addition to the favorable demand trends forecasted to
enues generated by corporate group and corporate transient
affect the lodging industry in general, we believe we may be
customers than their competitors and the corporate group
able to capitalize on the low supply growth trends that have
and transient business were among the poorest performing
existed during the past few years. Supply growth in the lodg-
sectors in 2003;
ing industry and the markets in which we operate may be
• the managers of many of our hotels were anticipating an
influenced by a number of factors, including growth of the
improvement in corporate business in the second half of
economy, interest rates, local considerations and the relatively
2003, leading them to turn down lower-rated business that
long lead time required to build urban and resort/convention
was ultimately not replaced with the anticipated higher-
hotels. Historically, supply growth has averaged approximately
rated business;
3% per year. However, since 2000 the growth of new supply
• our hotels generally have a lower percentage of their rev-
for the entire lodging industry has exhibited a declining trend
enues generated by leisure travelers than their competitors
below the historic average (2.6%, 1.9%, 1.6%, and 1.2% in
and the leisure business was among the best performing
2000, 2001, 2002 and 2003, respectively) based on data pre-
sectors in 2003; and
pared by Smith Travel Research and PricewaterhouseCoopers
• certain of our managers did not fully access internet distri-
LLP. The upper-upscale segment experienced stronger supply
bution channels until early 2004, which generally resulted in
growth than did the industry as a whole during this period,
fewer internet bookings than our competitors.
but also exhibited a declining trend (3.7%, 2.9%, 3.2%, and
HOST MARRIOTT 2003
~18~
17. As lodging demand continues to grow and, in particular, as • to implement selective capital improvements designed to
corporate group and corporate transient business strengthens, increase profitability and direct our managers to minimize
we believe that our hotels will regain the majority of the operating costs and increase revenues;
market share lost in 2003. For 2004, we expect RevPAR to • to invest capital in our existing portfolio where the return
increase 3% to 4% for our comparable hotels. We also expect on investment is favorable. Potential investments at our
certain of our costs, such as wages, benefits and insurance, to hotels could include increasing the number of rooms,
continue to increase at a rate greater than inflation, which will adding a spa, fitness facility, convention or meeting space
likely result in flat operating margins for 2004. or upgrading the infrastructure, such as energy efficient
While we believe the combination of improved demand heating and cooling systems; and
trends and low supply growth trends in the lodging industry • to reduce our leverage to achieve an interest coverage ratio
and our strategic cost reductions create the possibility for of 2.0x or greater under our senior notes indenture;
improvements in our business in 2004, there can be no assur- thereby lifting the restrictions which generally prohibit us
ances that any increases in hotel revenues or earnings at our from incurring additional debt or paying dividends above
properties will be achieved. The trends discussed above may not the minimum amount required to maintain Host Marriott’s
occur for any number of reasons, including slower than antici- REIT status.
pated growth in the economy, changes in travel patterns and the As we discussed previously, our acquisition efforts to
continued threat of additional terrorist attacks, all of which acquire new properties over the past several years have been
may result in lower revenues or higher operating costs and limited by several factors, including a lack of suitable targets
declining operating margins. that complement our portfolio and capital limitations due to
weak equity markets. Similarly, we have limited our capital
expenditures the past two years based on our assessment of
M A NAG E M E N T ’ S P R I O R I T I E S
the operating environment and to preserve capital. As a result,
Based on our primary business objectives and forecasted
management has focused its priorities more on recycling capi-
operating conditions, our key priorities, or financial strategies,
tal and improving our overall leverage and financial covenants
over the next several years include the following:
by selling non-core hotels and using the proceeds to refinance
• to acquire upper-upscale and luxury hotels in unique
or retire outstanding debt. For further detail on steps we have
locations where further large scale development is limited
taken to meet our objectives, see the discussion in “Liquidity
for prospective competitors, including hotels located in
and Capital Resources-Debt Repayment and Refinancing” and
urban and resort/convention locations;
“Liquidity and Capital Resources-Cash Provided by or Used
• to use the proceeds from the sale of non-core hotels that
in Investing Activities.”
do not fit within our business strategy of owning upper-
upscale and luxury properties in urban and resort/conven-
RESULTS OF OPERATIONS
tion locations, to acquire properties more closely aligned to
our profile or repay debt (including up to $382 million in The following table reflects key line items from our audited
senior notes as specifically permitted by our Board of statements of operations and other significant operating
Directors in November 2003); statistics:
% CHANGE % CHANGE
( I N M I L L I O N S , E X C E P T O P E R AT I N G
2003 2002 2 0 0 2 TO 2 0 0 3 2001 2 0 0 1 TO 2 0 0 2
S TAT I S T I C S A N D P E RC E N TA G E S )
Revenues
Total hotel sales $ 3,336 $ 3,415 (2.3)% $3,420 (0.2)%
Operating costs and expenses:
Property-level costs(1) 3,071 3,032 1.3 2,982 1.7
Corporate and other expenses 61 47 29.8 56 (16.1)
Operating Profit 316 437 (27.7) 520 (16.0)
Interest expense 491 462 6.3 455 1.5
Minority interest expense 5 7 (28.6) 23 (69.6)
Income from discontinued operations 239 38 529.0 5 660.0
Net income (loss) 14 (16) 187.5 51 (131.4)
Other Operating Statistics
Comparable hotel RevPAR $ 96.85 $101.07 (4.2)%
Comparable average room rate $140.86 $143.60 (1.9)%
Comparable average occupancy 68.8% 70.4% (1.6) pts.
(1)
Amount represents operating costs and expenses per our statements of operations less corporate and other expenses.
HOST MARRIOTT 2003
~19~
18. 2 0 0 3 C O M PA R E D T O 2 0 0 2 leased limited-service hotel properties continued to suffer due
to increased competition from full-service and limited-service
As previously discussed, our hotel sales declined 3.4%, however,
properties and weak economic conditions in their markets,
due to the reclassification of the results of assets sold or desig-
resulting in a very competitive environment and lower room
nated as held for sale to discontinued operations, hotel revenues
rates. We expect that there will be slower improvement in these
on our statement of operations only declined 2.3% for full year
properties in 2004 than in our full-service properties, in part,
2003, principally due to the decline in room sales of 2.8%. For
because a significant portion of these limited-service properties
2003, our comparable hotel RevPAR of $96.85 was down
will be undergoing renovation in 2004 to enable them to com-
4.2% from 2002, reflecting a decline in average room rate of
pete with the newer supply in the future, which will result in a
1.9% and a decrease in occupancy of 1.6 percentage points, pri-
decrease in the number of available rooms in 2004 while these
marily due to reduced transient demand for both business and
renovations are underway.
leisure travel. Beginning in the fourth quarter, demand began to
In 2003, we also recognized $9.6 million of other income
improve relative to the first three quarters of 2003, with less
from the settlement of a claim that we brought against our
than one-half a percent decrease in room rate and a slight
directors and officers insurance carriers for reimbursement of
decrease in occupancy over the fourth quarter of 2002. While
defense costs and settlement payments incurred in resolving a
we have begun to see a general increase in demand, the weakest
series of related actions brought against us and Marriott
component of our business continues to be the higher-rated
International which arose from the sale of certain limited part-
individual transient business traveler which historically has paid
nership units to investors prior to 1993.
the highest average room rates. Our managers have partially off-
Operating Costs and Expenses. The increase in operating
set this decline with additional group and contract business that
costs and expenses is primarily the result of increases in wages,
has resulted in lower average room rates.
benefits, insurance and utilities at our hotels. Rental and other
While our overall results for 2003 declined, we did experi-
expense for our limited-service hotel leases, office properties
ence improvements in comparable hotel RevPAR in four geo-
and one full-service hotel that we leased are included in other
graphic regions for the fourth quarter and two regions for the
property-level expenses on the consolidated statements of oper-
full year. Comparable hotel RevPAR for our Washington D.C.
ations. Consistent with the relatively fixed nature of these costs,
Metro region increased 4.0% for the fourth quarter and 2.5%
our operating expenses increased in both 2003 and 2002
for the full year. These increases were driven by strong transient
despite the decrease in revenues in both years. We expect that
demand particularly at our Northern Virginia properties as
costs such as wages, benefits and insurance will continue to
occupancy increased 0.9 percentage points for both the fourth
increase at a rate greater than inflation.
quarter and full year for the comparable hotels. Our Florida
Corporate and Other Expenses. Corporate and other
region also had a slight increase in comparable hotel RevPAR
expenses primarily consist of employee salaries and other costs
for the year, but a slight decrease for the fourth quarter.
such as stock-based employee compensation expense, corporate
The results were primarily driven by our properties in the
insurance, audit fees, building rent and system costs. The
Ft. Lauderdale and Tampa markets, which benefited from
increase in corporate and other expenses is primarily due to
stronger group demand and leisure travel.
increases in corporate insurance and the appreciation of Host
The relative improvement of these regions was offset by the
Marriott’s stock price, which affects the stock-based employee
overall decline in comparable hotel RevPAR in most of our
compensation expense.
regions. In particular, our New England and South Central
Interest Expense. Interest expense increased 6.3% over
regions had significant declines in comparable hotel RevPAR of
2002 as a result of the payment of aggregate call premiums of
15.1% and 5.8%, respectively, for the year and 14.4% and
$25 million and the acceleration of deferred financing fees of
5.7%, respectively, for the fourth quarter. The comparable hotel
$6 million associated with the prepayment of our senior notes
results in the South Central region were primarily affected by
and various mortgages during 2003. In 2004, we expect that as
our hotels in San Antonio where full year occupancy was down
a result of the retirement of approximately $500 million of
3.4 percentage points and average room rate declined 3.6%. The
debt (including $262 million retired in January 2004) that
decrease in demand was primarily attributable to a reduction in
interest expense will decrease, however we will continue to incur
city-wide convention activity in 2003. The decline in our New
additional expenses such as call premiums and the acceleration
England properties was driven by the performance of our three
of deferred financing to the extent that we prepay or refinance
comparable hotels in Boston which had comparable hotel
our debt prior to its original maturity.
RevPAR declines of 18.8% and 19.7%, respectively, for the
Loss on Foreign Currency and Derivative Contracts. The
fourth quarter and full year. The New England results discussed
loss on foreign currency and derivative contracts is due prima-
above do not include the Boston Copley Marriott which is con-
rily to the approximate $18 million loss from the forward cur-
sidered a non-comparable hotel, which had an increase in
rency exchange contracts for our four Canadian hotels being
RevPAR for the fourth quarter of 1.6%.
deemed ineffective for accounting purposes. See “Liquidity and
Our rental income represents lease income from our 71 lim-
Capital Resources-Debt and Effect of Financial Covenants-
ited-service hotels and three office property leases, as well as
Mortgage Debt Covenants” for further discussion.
lease income from one full-service hotel. Operations at the
HOST MARRIOTT 2003
~20~
19. Minority Interest Income (Expense). Minority interest expenses, for the New York Marriott Financial Center hotel are
income (expense) consists of our minority partners’ share of the included in rooms revenues from continuing operations.
income or loss in consolidated hotel partnerships and the
approximate 7% percentage ownership in Host LP. The change 2 0 0 2 C O M PA R E D T O 2 0 0 1
from 2002 in minority interest primarily reflects earnings in the
Revenues. Hotel revenues declined 0.2% for full year 2002 prin-
current year, primarily as a result of the gain on the settlement of
cipally due to the decline in room sales of 0.6%. As discussed
the World Trade Center hotel, compared to a net loss in 2002.
previously, revenues (as presented in our statements of opera-
Equity in Earnings (Losses) of Affiliates. Equity in earnings
tions) do not reflect the actual decline in revenues because of the
(losses) of affiliates consists of our portion of the earnings
reclassification of the results of assets sold or designated as held
(losses) of two partnerships in which we own non-controlling
for sale to discontinued operations. Actual room sales decreased
interests and do not consolidate in our financial statements. The
3.6% in 2002 from 2001. For 2002, our comparable hotel
increase in the loss can be attributed to an increase in the net
RevPAR of $100.12 was down 5.1%, which was comprised of a
loss of CBM Joint Venture LLC in 2003. See “Investments in
decline in average room rate of 5.9% and a decrease in occu-
Affiliates” for a discussion of this partnership.
pancy of 0.6 percentage points. The decline in comparable hotel
Discontinued Operations. Discontinued operations consists
RevPAR was primarily attributable to reduced transient demand
of the eight hotels sold in 2003 and one hotel sold in 2002,
for business and leisure travel. While the decrease in comparable
the gain on the disposition and business interruption proceeds
hotel RevPAR is due in part to the reduction in business and
for the New York Marriott World Trade Center hotel and five
leisure travel, it is also the result of the change in business mix at
properties classified as held for sale as of December 31, 2003,
our properties. Transient business, which includes corporate and
three of which were sold in January 2004. In accordance with
premium business travelers, which generally pay the highest aver-
SFAS 144 “Accounting for the Impairment or Disposal of
age room rates has decreased by over 3% since 2000 as a per-
Long-Lived Assets” or SFAS 144, the results of operations for
centage of room sales. Our managers have partially offset this
these properties in the current year and prior periods are
decline with additional group and contract business that have
reflected in discontinued operations.
lower average room rates. As a result, while occupancy increased
For 2003, the eight hotels sold generated net proceeds of
slightly, the average room rate declined significantly.
approximately $184 million with a net gain on disposition of
Although most regions had comparable hotel RevPAR
approximately $65 million, which includes a $56 million gain
declines in line with our overall portfolio, we did have two
on the disposition of World Trade Center hotel. For 2003 and
regions that had stronger results. Our South Central region com-
2002, our revenues for these eight properties and the New York
parable hotel RevPAR declined by only 1.1% primarily due to
Marriott World Trade Center were $222 million and $120 mil-
strong results from our three San Antonio hotels. The Mid-
lion, respectively, and our income before taxes was $176 million
Atlantic region also outperformed the overall portfolio with a
and $23 million, respectively. The St. Louis Marriott Pavilion
comparable hotel RevPAR decline of 2.5%. This was due to
was transferred to the mortgage lender in January 2002 in a
positive comparable hotel RevPAR at our Philadelphia Conven-
non-cash transaction and we recognized a net gain of $13 mil-
tion Center Marriott and Four Seasons, Philadelphia properties,
lion, primarily as a result of the debt extinguished and the for-
offset by declines at our suburban properties in this region.
giveness of management fees net of the fair value of the assets
The Pacific region had the largest comparable hotel
surrendered. For 2003 and 2002, revenues for the five proper-
RevPAR decline at 8.3%. These results were largely due to the
ties classified as held for sale were $42 million and $44 million,
collapse of the technology market in the San Francisco area
respectively, and our income before taxes was $1 million and
with all our hotels in that market having RevPAR declines. The
$4 million, respectively.
North Central region also had declines in comparable hotel
On December 3, 2003, we announced the settlement of the
RevPAR of 6.6%, which was a function of poor results in
outstanding matters relating to the terrorist attacks of
most of the region with our Chicago and Minneapolis proper-
September 11, 2001 affecting the New York Marriott World
ties reporting significant declines.
Trade Center and Financial Center hotels with the hotels’
Our rental income further declined primarily due to
insurer, Marriott International, Inc. and the Port Authority of
increased competition and weak economic conditions for the
New York and New Jersey. As a result of these settlements, we
leased limited-service hotels.
received net insurance proceeds of approximately $372 million.
Operating Costs and Expenses. Operating costs and expenses
As a result of this settlement, we recorded a one-time gain of
decreased primarily as a result of our efforts and those of our
approximately $212 million, which is comprised of approxi-
managers to control operating costs at the hotels and the over-
mately $156 million in post-2003 business interruption pro-
all decline in occupancy. Rental expense for our limited-service
ceeds and approximately $56 million from the disposition of
hotels and office properties are included in other property-level
the World Trade Center hotel. The gain on disposition and the
expenses on the consolidated statements of operations. These
2003 and 2002 business interruption income, net of expenses,
costs, which include wages, benefits and insurance, increased at
related to the hotel has been reclassified to discontinued opera-
a rate greater than inflation throughout the year.
tions. The business interruption proceeds received, net of
HOST MARRIOTT 2003
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