STOCK TITAN

Hilton Grand Vacations Reports First Quarter 2021 Results

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” or “the Company”) today reports its first quarter 2021 results.

First Quarter 2021 Results1

  • Contract sales in the first quarter were $139 million.
  • Net Owner Growth (NOG) for the 12 months ended March 31, 2021, was (0.1)%.
  • Total revenues for the first quarter were $235 million compared to $351 million for the same period in 2020.
    • Total revenues were affected by deferrals of $32 million and $47 million in the current period and the same period in 2020, respectively.
  • Net loss for the first quarter was ($7) million compared to $8 million net income for the same period in 2020.
    • Net (loss) income was affected by net deferrals of $18 million and $27 million for the current period and the same period in 2020, respectively.
  • Diluted EPS for the first quarter was ($0.08) compared to $0.09 for the same period in 2020.
    • Diluted EPS was affected by net deferrals of $18 million and $27 million, or $0.21 and $0.31 per share in the current period and the same period in 2020, respectively.
  • Adjusted EBITDA for the first quarter was $42 million compared to $33 million for the same period in 2020.
    • Adjusted EBITDA was affected by net deferrals of $18 million and $27 million in the current period and the same period in 2020, respectively.
  • In addition to the adverse impact from the closure of HGV sales centers and resort operations, the COVID-19 pandemic had the following impacts on total revenues, net loss, diluted EPS and Adjusted EBITDA for the first quarter:
    • $4 million or $0.05 per share benefit from government assistance from Japan and an employee retention credit granted under the CARES Act, primarily related to payments made to employees as a result of operational closures caused by the COVID-19 pandemic.

“2021 introduced a wave of optimism fueled by the rollout of vaccines and an increasingly positive outlook for leisure travel, which was reflected in another quarter of sequential improvement at HGV,” said Mark Wang, president and CEO of Hilton Grand Vacations. “Our performance ramped into a strong spring break travel season, and that trend has continued into April. This momentum makes us confident in the continued leisure travel recovery as we move through this year, and it underscores our confidence in our recently announced acquisition of Diamond Resorts, which remains on track for a summer transaction close.”

COVID-19 Update

The COVID-19 pandemic has created an unprecedented and challenging environment. The Company’s current focus is on taking critical actions that are aimed at keeping the Company in a sound position from an operational, liquidity, credit access, and compliance perspective for a strong recovery when the impact of COVID-19 subsides. Management will continue to assess the evolving COVID-19 pandemic, including the various government mandates and orders that impact the re-opening of its properties and any new recommended or required business practices, and will take additional actions as appropriate.

As of March 31, 2021, the Company has approximately 80% of its resorts and nearly all its sales centers open and operating. However, some of HGV’s resorts and sales centers are operating in markets with capacity constraints and subject to various safety measures, which are impacting consumer demand for resorts in those markets. As HGV responds to changes in tour flow, the Company intends to adjust its sales operations accordingly, while complying with all applicable social distancing rules and its own safety measures.

While HGV plans to continue to re-open its resorts and resume business as conditions permit, the pandemic continues to be unprecedented and rapidly changing, and has unknown duration and severity. Further, various state and local government officials may issue new or revised orders that are different than current ones under which the Company is operating.

Accordingly, there remains significant uncertainty as to the degree of impact and duration of the conditions stemming from the ongoing pandemic on the Company’s revenues, net income (loss) and other operating results, as well as its business and operations generally.

Overview

For the quarter ended March 31, 20

Hilton Grand Vac

NYSE:HGV

HGV Rankings

HGV Latest News

HGV Stock Data

3.14B
60.48M
1.63%
112.26%
7.23%
Resorts & Casinos
Hotels, Rooming Houses, Camps & Other Lodging Places
Link
United States
ORLANDO