Hilton Grand Vacations Reports Record Second Quarter 2022 Results
Hilton Grand Vacations (HGV) reported its Q2 2022 results with total contract sales of $617 million, exceeding pre-pandemic levels. The company achieved $948 million in total revenues, a significant increase from $334 million in Q2 2021. Net income rose to $73 million from $9 million year-over-year, with diluted EPS climbing to $0.60, compared to $0.10. Adjusted EBITDA reached $273 million, driven by improved travel demand and a growing member base from the Diamond Acquisition. HGV maintains its 2022 guidance for Deferral Adjusted EBITDA between $960 million and $990 million.
- Total contract sales reached $617 million, 105% of pro-forma Q2 2019 levels.
- Total revenues increased to $948 million from $334 million in Q2 2021.
- Net income rose significantly to $73 million compared to $9 million in the prior year.
- Diluted EPS improved to $0.60 from $0.10 year-over-year.
- Adjusted EBITDA for Q2 2022 was $273 million, up from $70 million in Q2 2021.
- Member count increased for the eighth consecutive quarter.
- Net income was affected by a $16 million litigation settlement charge.
- Total revenues impacted by a net deferral of $10 million, though less than $42 million last year.
- Adjusted EBITDA affected by a net deferral of $4 million in the current period.
Second Quarter 2022 Results1
-
Total contract sales in the second quarter were
$617 million 105% of pro-forma combined Q2 2019 contract sales. -
Member count increased for the eighth straight quarter. Net Owner Growth (NOG) for the Legacy-HGV business for the 12 months ended
June 30, 2022 , was3.2% , and Diamond added over 1,400 net new members in the quarter. -
Total revenues for the second quarter were
$948 million $334 million -
Total revenues were affected by a net deferral of
$10 million $42 million
-
Total revenues were affected by a net deferral of
-
Net income for the second quarter was
$73 million $9 million -
Net income was affected by a net deferral of
$4 million $22 million -
Net income includes a charge of
$16 million
-
Net income was affected by a net deferral of
-
Diluted EPS for the second quarter was
$0.60 $0.10 -
Diluted EPS was affected by a net deferral of
$4 million $22 million $(0.03) $(0.25)
-
Diluted EPS was affected by a net deferral of
-
Adjusted EBITDA for the second quarter was
$273 million $70 million -
Adjusted EBITDA was affected by a net deferral of
$4 million $22 million
-
Adjusted EBITDA was affected by a net deferral of
Full Year 2022 Outlook
-
The Company is reiterating its 2022 guidance for Deferral Adjusted EBITDA to be in a range of
$960 million $990 million
“Building upon the improvement we’ve seen throughout the year, we produced solid results this quarter that exceeded 2019 levels,” said
- The Company’s current period results and prior year results include impacts related to deferrals of revenues and direct expenses related to the Sales of VOIs under construction that are recognized when construction is complete. These impacts are reflected in the sub-bullets.
Diamond Acquisition
On
Diamond also operates in the hospitality and VOI industry, with a worldwide resort network of global vacation destinations. Diamond’s portfolio consists of resort properties that the Company manages, which are included in one of Diamond's single- and multi-use trusts (collectively, the "Diamond Collections" or "Collections"), or are Diamond-branded resorts in which the Company owns inventory. It also includes affiliated resorts and hotels, which the Company does not manage, and which do not carry the Diamond brand but are a part of Diamond's network and, through THE Club® and other Club offerings (the “Diamond Clubs”), are available for its members to use as vacation destinations.
The financial results in this report include Diamond’s results of operations beginning on the Acquisition Date. The Company refers to Diamond's business and operations that were acquired as “Legacy-Diamond” or “Diamond,” and HGV's operations as “Legacy-HGV,” which is inclusive of operations that existed both prior to and following the Diamond Acquisition.
Overview
For the quarter ended
Net income and Adjusted EBITDA for the quarter ended
Consolidated Segment Highlights – Second Quarter 2022
Real Estate Sales and Financing
For the quarter ended
Real Estate Sales and Financing segment adjusted EBITDA reflects a reduction of
Contract sales for the quarter ended
Financing revenues for the quarter ended
Resort Operations and Club Management
For the quarter ended
Inventory
The estimated value of the Company’s total contract sales pipeline is approximately
The total pipeline includes approximately
Owned inventory represents
Fee-for-service inventory represents
With
Balance Sheet and Liquidity
Total cash and cash equivalents were
As of
As of
As of
Free cash flow was
As of
Total Construction Deferrals and/or Recognitions Included in Results Reported Under Accounting Standards Codification Topic 606 (“ASC 606”)
The Company’s Adjusted EBITDA as reported under ASC 606 includes construction-related recognitions and deferrals of revenues and related expenses as detailed in Table T-1. Under ASC 606, the Company defers revenues and related expenses pertaining to sales at projects that occur during periods when that project is under construction until the period when construction is completed.
|
||||||||||||||||||
T-1 |
||||||||||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
||||||||||||||||||
(in millions) |
||||||||||||||||||
|
|
2022 |
||||||||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full
|
||||||||
Sales of VOIs (deferrals) recognitions |
|
$ |
(42 |
) |
|
$ |
(10 |
) |
|
$ |
— |
|
$ |
— |
|
$ |
(52 |
) |
Cost of VOI sales (deferrals) recognitions(1) |
|
|
(13 |
) |
|
|
(5 |
) |
|
|
— |
|
|
— |
|
|
(18 |
) |
Sales and marketing expense (deferrals) recognitions |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
(8 |
) |
Net construction (deferrals) recognitions(2) |
|
$ |
(22 |
) |
|
$ |
(4 |
) |
|
$ |
— |
|
$ |
— |
|
$ |
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
51 |
|
|
$ |
73 |
|
|
$ |
— |
|
$ |
— |
|
$ |
124 |
|
Interest expense |
|
|
33 |
|
|
|
35 |
|
|
|
— |
|
|
— |
|
|
68 |
|
Income tax expense |
|
|
20 |
|
|
|
41 |
|
|
|
— |
|
|
— |
|
|
61 |
|
Depreciation and amortization |
|
|
60 |
|
|
|
64 |
|
|
|
— |
|
|
— |
|
|
124 |
|
Interest expense and depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
EBITDA |
|
|
164 |
|
|
|
213 |
|
|
|
— |
|
|
— |
|
|
377 |
|
Other (gain) loss, net |
|
|
(1 |
) |
|
|
2 |
|
|
|
— |
|
|
— |
|
|
1 |
|
Share-based compensation expense |
|
|
11 |
|
|
|
15 |
|
|
|
— |
|
|
— |
|
|
26 |
|
Impairment expense (reversal) |
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
— |
|
|
— |
|
Acquisition and integration-related expense |
|
|
13 |
|
|
|
17 |
|
|
|
— |
|
|
— |
|
|
30 |
|
Other adjustment items(3) |
|
|
12 |
|
|
|
29 |
|
|
|
— |
|
|
— |
|
|
41 |
|
Adjusted EBITDA |
|
$ |
202 |
|
|
$ |
273 |
|
|
$ |
— |
|
$ |
— |
|
$ |
475 |
|
|
||||||||||||||||||
T-1 |
||||||||||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
||||||||||||||||||
(CONTINUED, in millions) |
||||||||||||||||||
|
|
2021 |
||||||||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full
|
||||||||
Sales of VOIs (deferrals) recognitions |
|
$ |
(32 |
) |
|
$ |
(42 |
) |
|
$ |
241 |
|
$ |
(34 |
) |
|
$ |
133 |
Cost of VOI sales (deferrals) recognitions(1) |
|
|
(10 |
) |
|
|
(13 |
) |
|
|
73 |
|
|
(12 |
) |
|
|
38 |
Sales and marketing expense (deferrals) recognitions |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
35 |
|
|
(5 |
) |
|
|
19 |
Net construction (deferrals) recognitions(2) |
|
$ |
(18 |
) |
|
$ |
(22 |
) |
|
$ |
133 |
|
$ |
(17 |
) |
|
$ |
76 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
(7 |
) |
|
$ |
9 |
|
|
$ |
99 |
|
$ |
75 |
|
|
$ |
176 |
Interest expense |
|
|
15 |
|
|
|
17 |
|
|
|
42 |
|
|
31 |
|
|
|
105 |
Income tax (benefit) expense |
|
|
(6 |
) |
|
|
3 |
|
|
|
49 |
|
|
47 |
|
|
|
93 |
Depreciation and amortization |
|
|
11 |
|
|
|
12 |
|
|
|
48 |
|
|
55 |
|
|
|
126 |
Interest expense and depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
1 |
EBITDA |
|
|
14 |
|
|
|
41 |
|
|
|
238 |
|
|
208 |
|
|
|
501 |
Other loss, net |
|
|
1 |
|
|
|
1 |
|
|
|
20 |
|
|
4 |
|
|
|
26 |
Share-based compensation expense |
|
|
4 |
|
|
|
14 |
|
|
|
14 |
|
|
16 |
|
|
|
48 |
Impairment expense |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
— |
|
|
|
2 |
Acquisition and integration-related expense |
|
|
15 |
|
|
|
14 |
|
|
|
54 |
|
|
23 |
|
|
|
106 |
Other adjustment items(3) |
|
|
7 |
|
|
|
— |
|
|
|
13 |
|
|
13 |
|
|
|
33 |
Adjusted EBITDA |
|
$ |
42 |
|
|
$ |
70 |
|
|
$ |
340 |
|
$ |
264 |
|
|
$ |
716 |
| (1) | Includes anticipated Costs of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired once construction is complete. | |
| (2) | The table represents deferrals and recognitions of Sales of VOIs revenue and direct costs for properties under construction. | |
(3)
|
Includes costs associated with restructuring, one-time charges and other non-cash items. This amount also includes the amortization of premiums resulting from purchase accounting for the periods subsequent to the Diamond Acquisition. |
Conference Call
To access the live teleconference, please dial 1-877-407-0784 in the
In the event of audio difficulties during the call on the toll-free number, participants are advised that accessing the call using the +1-201-689-8560 dial-in number may bypass the source of audio difficulties.
A replay will be available within 24 hours after the teleconference’s completion through
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management’s expectations as to the future of HGV, and are based on management’s beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time HGV makes such statements. Forward-looking statements include all statements that are not historical facts, may be identified by terminology such as the words “outlook,” “believe,” “expect,” “potential,” “goal,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” predicts,” “intends,” “plans,” “estimates,” “anticipates” “future,” “guidance,” “target,” or the negative version of these words or other comparable words, although not all forward-looking statements may contain such words. The forward-looking statements contained in this press release include statements related to HGV's revenues, earnings, taxes, cash flow and related financial and operating measures, and expectations with respect to future operating, financial and business performance and other anticipated future events and expectations that are not historical facts.
HGV cautions you that forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV’s control, that may cause its actual results, performance or achievements to be materially different from the future results. Any one or more of these risks or uncertainties could adversely impact HGV’s operations, revenue, operating profits and margins, key business operational metrics, financial condition and/or credit rating.
For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in HGV’s most recent Annual Report on Form 10-K filed with the
HGV’s forward-looking statements speak only as of the date of this communication or as of the date they are made. HGV disclaims any intent or obligation to update any “forward looking statement” made in this communication to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
Non-GAAP Financial Measures
The Company refers to certain non-GAAP financial measures in this press release, including EBITDA, Adjusted EBITDA, EBITDA profit margin, Adjusted EBITDA profit margin, free cash flow and adjusted free cash flow. Please see the tables in this press release and “Definitions” for additional information and reconciliations of such non-GAAP financial measures.
The Company refers to Deferral Adjusted EBITDA guidance, which does not take into account any future deferrals of revenues and direct expenses related to the sales of VOIs under construction that are recognized, only on a non-GAAP basis, as the quantification of reconciling items to the most directly comparable
About
DEFINITIONS
EBITDA and Adjusted EBITDA
EBITDA, presented herein, is a financial measure that is not recognized under
Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains, including asset dispositions and foreign currency transactions; (ii) debt restructurings/retirements; (iii) non-cash impairment losses; (iv) share-based and other compensation expenses; and (v) other items, including but not limited to costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges.
EBITDA profit margin, presented herein, represents EBITDA, as previously defined, divided by total revenues. Adjusted EBITDA profit margin, presented herein, represents Adjusted EBITDA, as previously defined, divided by total revenues.
EBITDA and Adjusted EBITDA are not recognized terms under
HGV believes that EBITDA and Adjusted EBITDA provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA and Adjusted EBITDA are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions; and (ii) EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss), cash flow or other methods of analyzing our results as reported under
- EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
- EBITDA and Adjusted EBITDA do not reflect our interest expense (excluding interest expense on non-recourse debt), or the cash requirements necessary to service interest or principal payments on our indebtedness;
- EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes;
- EBITDA and Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;
- EBITDA and Adjusted EBITDA do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations;
- EBITDA and Adjusted EBITDA do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized; and
- EBITDA and Adjusted EBITDA may be calculated differently from other companies in our industry limiting their usefulness as comparative measures.
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations.
Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow represents cash from operating activities less non-inventory capital spending.
Adjusted Free Cash Flow represents free cash flow further adjusted to exclude net non-recourse debt activities and other one-time adjustment items including, but not limited to, costs associated with acquisitions.
We consider Free Cash Flow and Adjusted Free Cash Flow to be liquidity measures not recognized under
Real Estate Metrics
Contract sales represents the total amount of VOI products (fee-for-service, just-in-time, developed, and points-based) under purchase agreements signed during the period where we have received a down payment of at least 10 percent of the contract price. Contract sales differ from revenues from the Sales of VOIs, net that we report in our condensed consolidated statements of operations due to the requirements for revenue recognition, as well as adjustments for incentives. We consider contract sales to be an important operating measure because it reflects the pace of sales in our business and is used to manage the performance of the sales organization. While the presentation of contract sales on a combined basis (fee-for-service, just-in-time, developed, and points-based) is most appropriate for the purpose of the operating metric, additional information regarding the split of contract sales, included in “—Real Estate” below, is useful for investors who are interested in the underlying capital structures of the Company’s projects. See Note 2: Summary of Significant Accounting Policies in our consolidated financial statements included in Item 8 in our Annual Report on form 10-K for the year ended
Developed Inventory refers to VOI inventory that is sourced from projects the Company develops.
Fee-for-Service Inventory refers to VOI inventory HGV sells and manages on behalf of third-party developers.
Just-in-Time Inventory refers to VOI inventory primarily sourced in transactions that are designed to closely correlate the timing of the acquisition with HGV’s sale of that inventory to purchasers.
Points-Based Inventory refers to VOI sales that are backed by physical real estate that is contributed to a trust.
NOG or Net Owner Growth represents the year-over-year change in membership.
Real estate profit represents sales revenue less the cost of VOI sales and sales and marketing costs, net of marketing revenue. Real estate profit margin is calculated by dividing real estate profit by sales revenue. The Company considers this to be an important operating measure because it measures the efficiency of our sales and marketing spending and management of inventory costs.
Sales revenue represents Sale of VOIs, net and fee-for-service commissions and brand fees earned from the sale of fee-for-service intervals.
Fee-for-service commissions and brand fees, net represents commissions and brand fees earned from the sale of fee-for-service intervals net of related reserves.
Tour flow represents the number of sales presentations given at HGV’s sales centers during the period.
Volume per guest (“VPG”) represents the sales attributable to tours at HGV’s sales locations and is calculated by dividing contract sales, excluding telesales, by tour flow. The Company considers VPG to be an important operating measure because it measures the effectiveness of HGV’s sales process, combining the average transaction price with closing rate.
|
|
FINANCIAL TABLES |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
T-2 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
T-3 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
T-4 |
FREE CASH FLOWS RECONCILIATION |
T-5 |
SEGMENT REVENUE RECONCILIATION |
T-6 |
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME |
T-7 |
REAL ESTATE SALES PROFIT DETAIL SCHEDULE |
T-8 |
CONTRACT SALES MIX BY TYPE SCHEDULE |
T-9 |
FINANCING PROFIT DETAIL SCHEDULE |
T-10 |
RESORT AND CLUB PROFIT DETAIL SCHEDULE |
T-11 |
RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE |
T-12 |
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA |
T-13 |
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA |
T-14 |
|
|||||
T-2 |
|||||
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(in millions, except share data) |
|||||
|
|
|
|
||
|
(unaudited) |
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
374 |
|
$ |
432 |
Restricted cash |
|
292 |
|
|
263 |
Accounts receivable, net |
|
413 |
|
|
302 |
Timeshare financing receivables, net |
|
1,689 |
|
|
1,747 |
Inventory |
|
1,241 |
|
|
1,240 |
Property and equipment, net |
|
801 |
|
|
756 |
Operating lease right-of-use assets, net |
|
60 |
|
|
70 |
Investments in unconsolidated affiliates |
|
66 |
|
|
59 |
|
|
1,357 |
|
|
1,377 |
Intangible assets, net |
|
1,358 |
|
|
1,441 |
Land and infrastructure held for sale |
|
— |
|
|
41 |
Other assets |
|
481 |
|
|
280 |
TOTAL ASSETS |
$ |
8,132 |
|
$ |
8,008 |
LIABILITIES AND EQUITY |
|
|
|
||
Accounts payable, accrued expenses and other |
$ |
976 |
|
$ |
673 |
Advanced deposits |
|
130 |
|
|
112 |
Debt, net |
|
2,787 |
|
|
2,913 |
Non-recourse debt, net |
|
1,024 |
|
|
1,328 |
Operating lease liabilities |
|
80 |
|
|
87 |
Deferred revenues |
|
360 |
|
|
237 |
Deferred income tax liabilities |
|
698 |
|
|
670 |
Total liabilities |
|
6,055 |
|
|
6,020 |
|
|
|
|
||
Equity: |
|
|
|
||
Preferred stock, |
|
— |
|
|
— |
Common stock, |
|
1 |
|
|
1 |
Additional paid-in capital |
|
1,626 |
|
|
1,630 |
Accumulated retained earnings |
|
424 |
|
|
357 |
Accumulated other comprehensive income |
|
26 |
|
|
— |
Total equity |
|
2,077 |
|
|
1,988 |
TOTAL LIABILITIES AND EQUITY |
$ |
8,132 |
|
$ |
8,008 |
|
|||||||||||||||
T-3 |
|||||||||||||||
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in millions, except share data) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Sales of VOIs, net |
$ |
361 |
|
|
$ |
76 |
|
|
$ |
630 |
|
|
$ |
109 |
|
Sales, marketing, brand and other fees |
|
161 |
|
|
|
81 |
|
|
|
280 |
|
|
|
134 |
|
Financing |
|
64 |
|
|
|
37 |
|
|
|
128 |
|
|
|
74 |
|
Resort and club management |
|
124 |
|
|
|
48 |
|
|
|
249 |
|
|
|
93 |
|
Rental and ancillary services |
|
171 |
|
|
|
54 |
|
|
|
307 |
|
|
|
86 |
|
Cost reimbursements |
|
67 |
|
|
|
38 |
|
|
|
133 |
|
|
|
73 |
|
Total revenues |
|
948 |
|
|
|
334 |
|
|
|
1,727 |
|
|
|
569 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Cost of VOI sales |
|
65 |
|
|
|
21 |
|
|
|
105 |
|
|
|
24 |
|
Sales and marketing |
|
284 |
|
|
|
116 |
|
|
|
527 |
|
|
|
198 |
|
Financing |
|
22 |
|
|
|
11 |
|
|
|
41 |
|
|
|
24 |
|
Resort and club management |
|
37 |
|
|
|
11 |
|
|
|
73 |
|
|
|
19 |
|
Rental and ancillary services |
|
150 |
|
|
|
36 |
|
|
|
282 |
|
|
|
67 |
|
General and administrative |
|
66 |
|
|
|
30 |
|
|
|
108 |
|
|
|
51 |
|
Acquisition and integration-related expense |
|
17 |
|
|
|
14 |
|
|
|
30 |
|
|
|
29 |
|
Depreciation and amortization |
|
64 |
|
|
|
12 |
|
|
|
124 |
|
|
|
23 |
|
License fee expense |
|
32 |
|
|
|
19 |
|
|
|
57 |
|
|
|
33 |
|
Impairment (reversal) expense |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Cost reimbursements |
|
67 |
|
|
|
38 |
|
|
|
133 |
|
|
|
73 |
|
Total operating expenses |
|
801 |
|
|
|
308 |
|
|
|
1,480 |
|
|
|
542 |
|
Interest expense |
|
(35 |
) |
|
|
(17 |
) |
|
|
(68 |
) |
|
|
(32 |
) |
Equity in earnings from unconsolidated affiliates |
|
4 |
|
|
|
4 |
|
|
|
7 |
|
|
|
6 |
|
Other loss, net |
|
(2 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Income (loss) before income taxes |
|
114 |
|
|
|
12 |
|
|
|
185 |
|
|
|
(1 |
) |
Income tax (expense) benefit |
|
(41 |
) |
|
|
(3 |
) |
|
|
(61 |
) |
|
|
3 |
|
Net income |
$ |
73 |
|
|
$ |
9 |
|
|
$ |
124 |
|
|
$ |
2 |
|
Earnings per share(1): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.60 |
|
|
$ |
0.10 |
|
|
$ |
1.03 |
|
|
$ |
0.02 |
|
Diluted |
$ |
0.60 |
|
|
$ |
0.10 |
|
|
$ |
1.01 |
|
|
$ |
0.02 |
|
Weighted average shares outstanding(2) |
|
|
|
|
|
|
|
||||||||
Basic |
|
120,811 |
|
|
|
85,650 |
|
|
|
120,398 |
|
|
|
85,480 |
|
Diluted |
|
122,309 |
|
|
|
86,839 |
|
|
|
122,096 |
|
|
|
86,540 |
|
| (1) | Earnings per share is calculated based on unrounded dollars. | |
| (2) | Presented in thousands. |
|
|||||||||||||||
T-4 |
|||||||||||||||
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(in millions) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Operating Activities |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
73 |
|
|
$ |
9 |
|
|
$ |
124 |
|
|
$ |
2 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
64 |
|
|
|
12 |
|
|
|
124 |
|
|
|
23 |
|
Amortization of deferred financing costs, acquisition premiums and other |
|
13 |
|
|
|
4 |
|
|
|
25 |
|
|
|
10 |
|
Provision for financing receivables losses |
|
40 |
|
|
|
12 |
|
|
|
71 |
|
|
|
28 |
|
Impairment (reversal) expense |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Other loss, net |
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Share-based compensation |
|
15 |
|
|
|
14 |
|
|
|
26 |
|
|
|
18 |
|
Deferred income tax expense |
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
9 |
|
Equity in earnings from unconsolidated affiliates |
|
(4 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(6 |
) |
Net changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
34 |
|
|
|
(109 |
) |
|
|
(73 |
) |
|
|
(101 |
) |
Timeshare financing receivables, net |
|
(41 |
) |
|
|
(1 |
) |
|
|
(52 |
) |
|
|
18 |
|
Inventory |
|
(6 |
) |
|
|
(15 |
) |
|
|
20 |
|
|
|
(29 |
) |
Purchases and development of real estate for future conversion to inventory |
|
— |
|
|
|
(11 |
) |
|
|
(1 |
) |
|
|
(17 |
) |
Other assets |
|
105 |
|
|
|
(8 |
) |
|
|
(159 |
) |
|
|
(35 |
) |
Accounts payable, accrued expenses and other |
|
— |
|
|
|
57 |
|
|
|
290 |
|
|
|
59 |
|
Advanced deposits |
|
3 |
|
|
|
3 |
|
|
|
17 |
|
|
|
— |
|
Deferred revenues |
|
(35 |
) |
|
|
36 |
|
|
|
123 |
|
|
|
110 |
|
Net cash provided by operating activities |
|
260 |
|
|
|
30 |
|
|
|
530 |
|
|
|
92 |
|
Investing Activities |
|
|
|
|
|
|
|
||||||||
Capital expenditures for property and equipment |
|
(11 |
) |
|
|
(3 |
) |
|
|
(19 |
) |
|
|
(4 |
) |
Software capitalization costs |
|
(10 |
) |
|
|
(5 |
) |
|
|
(16 |
) |
|
|
(9 |
) |
Net cash used in investing activities |
|
(21 |
) |
|
|
(8 |
) |
|
|
(35 |
) |
|
|
(13 |
) |
Financing Activities |
|
|
|
|
|
|
|
||||||||
Issuance of debt |
|
— |
|
|
|
1,350 |
|
|
|
— |
|
|
|
1,350 |
|
Issuance of non-recourse debt |
|
247 |
|
|
|
— |
|
|
|
402 |
|
|
|
— |
|
Repayment of debt |
|
(129 |
) |
|
|
(53 |
) |
|
|
(132 |
) |
|
|
(55 |
) |
Repayment of non-recourse debt |
|
(420 |
) |
|
|
(49 |
) |
|
|
(697 |
) |
|
|
(118 |
) |
Debt issuance costs and discounts |
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
(3 |
) |
Repurchase and retirement of common stock |
|
(78 |
) |
|
|
— |
|
|
|
(78 |
) |
|
|
— |
|
Payment of withholding taxes on vesting of restricted stock units |
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(5 |
) |
Proceeds from employee stock plan purchases |
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Proceeds from stock option exercises |
|
— |
|
|
|
4 |
|
|
|
1 |
|
|
|
6 |
|
Other financing activity |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Net cash used in financing activities |
|
(385 |
) |
|
|
1,253 |
|
|
|
(518 |
) |
|
|
1,175 |
|
Effect of changes in exchange rates on cash, cash equivalents & restricted cash |
|
(5 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(151 |
) |
|
|
1,275 |
|
|
|
(29 |
) |
|
|
1,254 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
817 |
|
|
|
505 |
|
|
|
695 |
|
|
|
526 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
666 |
|
|
$ |
1,780 |
|
|
$ |
666 |
|
|
$ |
1,780 |
|
|
||||||||||||||||
T-5 |
||||||||||||||||
|
||||||||||||||||
FREE CASH FLOW RECONCILIATION |
||||||||||||||||
(in millions) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net cash provided by operating activities |
|
$ |
260 |
|
|
$ |
30 |
|
|
$ |
530 |
|
|
$ |
92 |
|
Capital expenditures for property and equipment |
|
|
(11 |
) |
|
|
(3 |
) |
|
|
(19 |
) |
|
|
(4 |
) |
Software capitalization costs |
|
|
(10 |
) |
|
|
(5 |
) |
|
|
(16 |
) |
|
|
(9 |
) |
Free Cash Flow |
|
$ |
239 |
|
|
$ |
22 |
|
|
$ |
495 |
|
|
$ |
79 |
|
Non-recourse debt activity, net |
|
|
(173 |
) |
|
|
(49 |
) |
|
|
(295 |
) |
|
|
(118 |
) |
Acquisition and integration-related expense |
|
|
17 |
|
|
|
14 |
|
|
|
30 |
|
|
|
29 |
|
Other adjustment items(1) |
|
|
20 |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
Adjusted Free Cash Flow |
|
$ |
103 |
|
|
$ |
(13 |
) |
|
$ |
263 |
|
|
$ |
(10 |
) |
(1) |
Includes capitalized acquisition and integration-related costs for the three and six months ended |
|
||||||||||||||||
T-6 |
||||||||||||||||
|
||||||||||||||||
SEGMENT REVENUE RECONCILIATION |
||||||||||||||||
(in millions) |
||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Real estate sales and financing |
|
$ |
586 |
|
|
$ |
194 |
|
|
$ |
1,038 |
|
|
$ |
317 |
|
Resort operations and club management |
|
|
303 |
|
|
|
107 |
|
|
|
571 |
|
|
|
187 |
|
Total segment revenues |
|
|
889 |
|
|
|
301 |
|
|
|
1,609 |
|
|
|
504 |
|
Cost reimbursements |
|
|
67 |
|
|
|
38 |
|
|
|
133 |
|
|
|
73 |
|
Intersegment eliminations |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(8 |
) |
Total revenues |
|
$ |
948 |
|
|
$ |
334 |
|
|
$ |
1,727 |
|
|
$ |
569 |
|
|
||||||||||||||||
T-7 |
||||||||||||||||
|
||||||||||||||||
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME |
||||||||||||||||
(in millions) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Net income |
$ |
73 |
|
|
$ |
9 |
|
|
$ |
124 |
|
|
$ |
2 |
|
|
Interest expense |
|
35 |
|
|
|
17 |
|
|
|
68 |
|
|
|
32 |
|
|
Income tax expense (benefit) |
|
41 |
|
|
|
3 |
|
|
|
61 |
|
|
|
(3 |
) |
|
Depreciation and amortization |
|
64 |
|
|
|
12 |
|
|
|
124 |
|
|
|
23 |
|
|
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
EBITDA |
|
213 |
|
|
|
41 |
|
|
|
377 |
|
|
|
55 |
|
|
Other loss, net |
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
Share-based compensation expense |
|
15 |
|
|
|
14 |
|
|
|
26 |
|
|
|
18 |
|
|
Impairment (reversal) expense |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
Acquisition and integration-related expense |
|
17 |
|
|
|
14 |
|
|
|
30 |
|
|
|
29 |
|
|
Other adjustment items(1) |
|
29 |
|
|
|
— |
|
|
|
41 |
|
|
|
7 |
|
|
Adjusted EBITDA |
$ |
273 |
|
|
$ |
70 |
|
|
$ |
475 |
|
|
$ |
112 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
Real estate sales and financing(2) |
$ |
218 |
|
|
$ |
45 |
|
|
$ |
371 |
|
|
$ |
72 |
|
|
Resort operations and club management(2) |
|
119 |
|
|
|
61 |
|
|
|
220 |
|
|
|
103 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA from unconsolidated affiliates |
|
4 |
|
|
|
4 |
|
|
|
7 |
|
|
|
7 |
|
|
License fee expense |
|
(32 |
) |
|
|
(19 |
) |
|
|
(57 |
) |
|
|
(33 |
) |
|
General and administrative(3) |
|
(36 |
) |
|
|
(21 |
) |
|
|
(66 |
) |
|
|
(37 |
) |
|
Adjusted EBITDA |
$ |
273 |
|
|
$ |
70 |
|
|
$ |
475 |
|
|
$ |
112 |
|
|
Adjusted EBITDA profit margin |
|
28.8 |
% |
|
|
21.0 |
% |
|
|
27.5 |
% |
|
|
19.7 |
% |
|
EBITDA profit margin |
|
22.5 |
% |
|
|
12.3 |
% |
|
|
21.8 |
% |
|
|
9.7 |
% |
|
| (1) |
Includes costs associated with restructuring, one-time charges and other non-cash items. For the three and six months ended |
|
| (2) | Includes intersegment transactions, share-based compensation, depreciation and other adjustments attributable to the segments. |
|
| (3) | Excludes segment related share-based compensation, depreciation and other adjustment items. |
|
||||||||||||||||
T-8 |
||||||||||||||||
|
||||||||||||||||
REAL ESTATE SALES PROFIT DETAIL SCHEDULE |
||||||||||||||||
(in millions, except Tour Flow and VPG) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Tour flow |
|
134,259 |
|
|
|
56,345 |
|
|
|
232,860 |
|
|
|
84,293 |
|
|
VPG |
|
4,452 |
|
|
|
4,385 |
|
|
|
4,620 |
|
|
|
4,472 |
|
|
Owned contract sales mix |
|
70.2 |
% |
|
|
57.9 |
% |
|
|
72.2 |
% |
|
|
58.5 |
% |
|
Fee-for-service contract sales mix |
|
29.8 |
% |
|
|
42.1 |
% |
|
|
27.8 |
% |
|
|
41.5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Contract sales |
$ |
617 |
|
|
$ |
259 |
|
|
$ |
1,126 |
|
|
$ |
398 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Fee-for-service sales(1) |
|
(184 |
) |
|
|
(109 |
) |
|
|
(313 |
) |
|
|
(165 |
) |
|
Provision for financing receivables losses |
|
(40 |
) |
|
|
(12 |
) |
|
|
(71 |
) |
|
|
(28 |
) |
|
Reportability and other: |
|
|
|
|
|
|
|
|
||||||||
Net deferral of sales of VOIs under construction(2) |
|
(10 |
) |
|
|
(42 |
) |
|
|
(52 |
) |
|
|
(74 |
) |
|
Fee-for-service sale upgrades, net |
|
5 |
|
|
|
3 |
|
|
|
9 |
|
|
|
5 |
|
|
Other(3) |
|
(27 |
) |
|
|
(23 |
) |
|
|
(69 |
) |
|
|
(27 |
) |
|
Sales of VOIs, net |
$ |
361 |
|
|
$ |
76 |
|
|
$ |
630 |
|
|
$ |
109 |
|
|
Plus: |
|
|
|
|
|
|
|
|
||||||||
Fee-for-service commissions and brand fees, net |
|
99 |
|
|
|
57 |
|
|
|
168 |
|
|
|
89 |
|
|
Sales revenue |
|
460 |
|
|
|
133 |
|
|
|
798 |
|
|
|
198 |
|
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Cost of VOI sales |
|
65 |
|
|
|
21 |
|
|
|
105 |
|
|
|
24 |
|
|
Sales and marketing expense, net(4) |
|
212 |
|
|
|
83 |
|
|
|
398 |
|
|
|
142 |
|
|
Real estate profit |
$ |
183 |
|
|
$ |
29 |
|
|
$ |
295 |
|
|
$ |
32 |
|
|
Real estate profit margin |
|
39.8 |
% |
|
|
21.8 |
% |
|
|
37.0 |
% |
|
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of fee-for-service commissions: |
|
|
|
|
|
|
|
|
||||||||
Sales, marketing, brand and other fees |
|
161 |
|
|
|
81 |
|
|
|
280 |
|
|
|
134 |
|
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Marketing revenue and other fees |
|
62 |
|
|
|
24 |
|
|
|
112 |
|
|
|
45 |
|
|
Fee-for-service commissions and brand fees, net |
$ |
99 |
|
|
$ |
57 |
|
|
$ |
168 |
|
|
$ |
89 |
|
|
| (1) | Represents contract sales from fee-for-service properties on which we earn commissions and brand fees. |
|
| (2) | Represents the net impact of deferred revenues related to the Sales of VOIs under construction that are recognized when construction is complete. |
|
| (3) | Includes adjustments for revenue recognition, including amounts in rescission and sales incentives. |
|
(4)
|
Includes revenue recognized through our marketing programs for existing owners and prospective first-time buyers and revenue associated with sales incentives and document compliance. |
|
||||||||||||
T-9 |
||||||||||||
|
||||||||||||
CONTRACT SALES MIX BY TYPE SCHEDULE |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Just-In-Time Contract Sales Mix |
|
12 |
% |
|
23 |
% |
|
13 |
% |
|
25 |
% |
Fee-For-Service Contract Sales Mix |
|
30 |
% |
|
42 |
% |
|
28 |
% |
|
41 |
% |
Total Capital-Efficient Contract Sales Mix(1) |
|
42 |
% |
|
65 |
% |
|
41 |
% |
|
66 |
% |
(1) |
Diamond contract sales are related to developed properties and therefore are not included in capital efficient contract sales. |
|
||||||||||||||||
T-10 |
||||||||||||||||
|
||||||||||||||||
FINANCING PROFIT DETAIL SCHEDULE |
||||||||||||||||
(in millions) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Interest income(1) |
$ |
54 |
|
|
$ |
31 |
|
|
$ |
109 |
|
|
$ |
62 |
|
|
Other financing revenue |
|
10 |
|
|
|
6 |
|
|
|
19 |
|
|
|
12 |
|
|
Financing revenue |
|
64 |
|
|
|
37 |
|
|
|
128 |
|
|
|
74 |
|
|
Consumer financing interest expense(2) |
|
8 |
|
|
|
7 |
|
|
|
15 |
|
|
|
14 |
|
|
Other financing expense |
|
14 |
|
|
|
4 |
|
|
|
26 |
|
|
|
10 |
|
|
Financing expense |
|
22 |
|
|
|
11 |
|
|
|
41 |
|
|
|
24 |
|
|
Financing profit |
$ |
42 |
|
|
$ |
26 |
|
|
$ |
87 |
|
|
$ |
50 |
|
|
Financing profit margin |
|
65.6 |
% |
|
|
70.3 |
% |
|
|
68.0 |
% |
|
|
67.6 |
% |
% |
(1)
|
For the three and six months ended |
|
(2)
|
For the three and six months ended |
T-11 |
||||||
|
||||||
RESORT AND CLUB PROFIT DETAIL SCHEDULE |
||||||
(in millions, except for Members and Net Owner Growth) |
||||||
|
Twelve Months Ended |
|
||||
|
2022 |
|
2021 |
|
||
Total members |
507,952 |
|
|
328,441 |
|
|
Legacy-HGV Net Owner Growth (NOG)(1) |
10,412 |
|
|
1,631 |
|
|
Legacy-HGV Net Owner Growth % (NOG)(1) |
3.2 |
% |
|
0.5 |
% |
|
(1) |
NOG is a twelve-trailing-month concept and thus not calculated for Diamond under HGV's ownership. |
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Club management revenue |
$ |
51 |
|
|
$ |
29 |
|
|
$ |
102 |
|
|
$ |
56 |
|
|
Resort management revenue |
|
73 |
|
|
|
19 |
|
|
|
147 |
|
|
|
37 |
|
|
Resort and club management revenues |
|
124 |
|
|
|
48 |
|
|
|
249 |
|
|
|
93 |
|
|
Club management expense |
|
10 |
|
|
|
5 |
|
|
|
20 |
|
|
|
10 |
|
|
Resort management expense |
|
27 |
|
|
|
6 |
|
|
|
53 |
|
|
|
9 |
|
|
Resort and club management expenses |
|
37 |
|
|
|
11 |
|
|
|
73 |
|
|
|
19 |
|
|
Resort and club management profit |
$ |
87 |
|
|
$ |
37 |
|
|
$ |
176 |
|
|
$ |
74 |
|
|
Resort and club management profit margin |
|
70.2 |
% |
|
|
77.1 |
% |
|
|
70.7 |
% |
|
|
79.6 |
% |
|
|
||||||||||||||||
T-12 |
||||||||||||||||
|
||||||||||||||||
RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE |
||||||||||||||||
(in millions) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Rental revenues |
$ |
155 |
|
|
$ |
50 |
|
|
$ |
279 |
|
|
$ |
80 |
|
|
Ancillary services revenues |
|
16 |
|
|
|
4 |
|
|
|
28 |
|
|
|
6 |
|
|
Rental and ancillary services revenues |
|
171 |
|
|
|
54 |
|
|
|
307 |
|
|
|
86 |
|
|
Rental expenses |
|
138 |
|
|
|
32 |
|
|
|
260 |
|
|
|
61 |
|
|
Ancillary services expense |
|
12 |
|
|
|
4 |
|
|
|
22 |
|
|
|
6 |
|
|
Rental and ancillary services expenses |
|
150 |
|
|
|
36 |
|
|
|
282 |
|
|
|
67 |
|
|
Rental and ancillary services profit |
$ |
21 |
|
|
$ |
18 |
|
|
$ |
25 |
|
|
$ |
19 |
|
|
Rental and ancillary services profit margin |
|
12.3 |
% |
|
|
33.3 |
% |
|
|
8.1 |
% |
|
|
22.1 |
% |
|
|
||||||||||||||||
T-13 |
||||||||||||||||
|
||||||||||||||||
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA |
||||||||||||||||
(in millions) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Sales of VOIs, net |
$ |
361 |
|
|
$ |
76 |
|
|
$ |
630 |
|
|
$ |
109 |
|
|
Sales, marketing, brand and other fees |
|
161 |
|
|
|
81 |
|
|
|
280 |
|
|
|
134 |
|
|
Financing revenue |
|
64 |
|
|
|
37 |
|
|
|
128 |
|
|
|
74 |
|
|
Real estate sales and financing segment revenues |
|
586 |
|
|
|
194 |
|
|
|
1,038 |
|
|
|
317 |
|
|
Cost of VOI sales |
|
(65 |
) |
|
|
(21 |
) |
|
|
(105 |
) |
|
|
(24 |
) |
|
Sales and marketing expense, net |
|
(284 |
) |
|
|
(116 |
) |
|
|
(527 |
) |
|
|
(198 |
) |
|
Financing expense |
|
(22 |
) |
|
|
(11 |
) |
|
|
(41 |
) |
|
|
(24 |
) |
|
Marketing package stays |
|
(8 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(8 |
) |
|
Share-based compensation |
|
3 |
|
|
|
2 |
|
|
|
6 |
|
|
|
4 |
|
|
Other adjustment items |
|
8 |
|
|
|
2 |
|
|
|
15 |
|
|
|
5 |
|
|
Real estate sales and financing segment adjusted EBITDA |
$ |
218 |
|
|
$ |
45 |
|
|
$ |
371 |
|
|
$ |
72 |
|
|
Real estate sales and financing segment adjusted EBITDA profit margin |
|
37.2 |
% |
|
|
23.2 |
% |
|
|
35.7 |
% |
|
|
22.7 |
% |
|
|
||||||||||||||||
T-14 |
||||||||||||||||
|
||||||||||||||||
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA |
||||||||||||||||
(in millions) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Resort and club management revenues |
$ |
124 |
|
|
$ |
48 |
|
|
$ |
249 |
|
|
$ |
93 |
|
|
Rental and ancillary services |
|
171 |
|
|
|
54 |
|
|
|
307 |
|
|
|
86 |
|
|
Marketing package stays |
|
8 |
|
|
|
5 |
|
|
|
15 |
|
|
|
8 |
|
|
Resort and club management segment revenue |
|
303 |
|
|
|
107 |
|
|
|
571 |
|
|
|
187 |
|
|
Resort and club management expenses |
|
(37 |
) |
|
|
(11 |
) |
|
|
(73 |
) |
|
|
(19 |
) |
|
Rental and ancillary services expenses |
|
(150 |
) |
|
|
(36 |
) |
|
|
(282 |
) |
|
|
(67 |
) |
|
Share-based compensation |
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
Other adjustment items |
|
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
Resort and club segment adjusted EBITDA |
$ |
119 |
|
|
$ |
61 |
|
|
$ |
220 |
|
|
$ |
103 |
|
|
Resort and club management segment adjusted EBITDA profit margin |
|
39.3 |
% |
|
|
57.0 |
% |
|
|
38.5 |
% |
|
|
55.1 |
% |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005825/en/
Investors:
407-613-3327
mark.melnyk@hgv.com
Media:
407-613-8431
lauren.george@hgv.com
Source:
FAQ
What were Hilton Grand Vacations' Q2 2022 contract sales figures?
How did HGV's revenue in Q2 2022 compare to the previous year?
What is the diluted EPS for Hilton Grand Vacations in Q2 2022?
What is HGV's adjusted EBITDA for Q2 2022?
What is the full-year guidance for HGV's Deferral Adjusted EBITDA?
