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Starwood Reports Third Quarter 2013 Results And Declares Annual Dividend Of $1.35 Per Share

Stocks in this article: HOT

Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today reported third quarter 2013 financial results.

Third Quarter 2013 Highlights

  • Excluding special items, EPS from continuing operations was $0.71. Including special items, EPS from continuing operations was $0.81.
  • Adjusted EBITDA was $301 million, which included $19 million of EBITDA from the St. Regis Bal Harbour residential project (“Bal Harbour”).
  • Excluding special items, income from continuing operations was $137 million. Including special items, income from continuing operations was $157 million.
  • Worldwide Systemwide REVPAR for Same-Store Hotels increased 4.7% in constant dollars (4.2% in actual dollars) compared to 2012. Systemwide REVPAR for Same-Store Hotels in North America increased 5.8% in constant dollars (5.4% in actual dollars).
  • Management fees, franchise fees and other income increased 12.8% compared to 2012.
  • Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 50 basis points compared to 2012.
  • Worldwide REVPAR for Starwood Same-Store Owned Hotels increased 5.2% in constant dollars (4.5% in actual dollars) compared to 2012.
  • Margins at Starwood Same-Store Owned Hotels Worldwide increased approximately 130 basis points compared to 2012.
  • Earnings from Starwood’s vacation ownership and residential business increased approximately $7 million compared to 2012.
  • During the quarter, the Company signed 36 hotel management and franchise contracts, representing approximately 7,800 rooms, and opened 15 hotels and resorts with approximately 3,700 rooms.
  • Starwood’s Board of Directors has declared the Company’s annual cash dividend of $1.35 per share. The Board of Directors has also decided to pay dividends to stockholders on a quarterly basis commencing in 2014.

Third Quarter 2013 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the third quarter of 2013 of $0.81 compared to $0.75 in the third quarter of 2012. Excluding special items, EPS from continuing operations was $0.71 for the third quarter of 2013 compared to $0.58 in the third quarter of 2012. Special items in the third quarter of 2013, which totaled a benefit of $20 million (after tax), primarily related to a favorable adjustment to a legal reserve, tax benefits associated with a non-core asset sale and the reversal of a valuation allowance on deferred tax assets which are now deemed realizable. Special items in the third quarter of 2012, which totaled a benefit of $33 million (after-tax), primarily related to tax benefits from the sale of two hotels with high tax bases. Excluding special items, the effective income tax rate in the third quarter of 2013 was 31.3%, compared to 30.8% in the third quarter of 2012.

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