Hilton Grand Vacations Reports Record Third Quarter 2021 Results
Hilton Grand Vacations Inc. (NYSE:HGV) reported strong Q3 2021 results, with contract sales reaching $433 million. Legacy-HGV sales were $290 million, 81% of Q3 2019 levels, while Diamond contributed $143 million during its 59-day ownership. Total revenues surged to $928 million from $208 million YoY, with net income of $99 million compared to a loss of $7 million in Q3 2020. Adjusted EBITDA also increased to $340 million from $19 million. HGV achieved $70 million in annualized cost synergies from the Diamond acquisition, exceeding half of its $125 million target.
- Contract sales increased to $433 million, including $143 million from Diamond.
- Total revenues surged to $928 million, up from $208 million YoY.
- Net income rose to $99 million compared to a net loss of $7 million in Q3 2020.
- Adjusted EBITDA increased to $340 million from $19 million YoY.
- Achieved $70 million in annualized cost synergies from the Diamond acquisition.
- Free cash flow was negative at ($68) million, worse than ($9) million YoY.
- Total corporate debt increased to $2,929 million, with significant existing liabilities.
Third Quarter 2021 Results1
-
Contract sales in the third quarter were
$433 million -
Legacy-HGV contract sales of
$290 million 81% of Q3 2019 contract sales. -
Diamond contributed
$143 million
-
Legacy-HGV contract sales of
-
Member count increased for the fifth straight quarter, and Net Owner Growth (NOG) for our Legacy-HGV business in the 12 months ended
Sept. 30, 2021 is1.2% .
-
Realized substantial cost synergy capture of
$70 million $125 + million synergy goal.
-
Total revenues for the third quarter were
$928 million $208 million -
Total revenues were affected by a recognition of
$241 million $13 million
-
Total revenues were affected by a recognition of
-
Net income for the third quarter was
$99 million ( net loss for the same period in 2020.$7) million -
Net income was affected by a net recognition of
$133 million $8 million
-
Net income was affected by a net recognition of
-
Diluted EPS for the third quarter was
$0.90 $0.08 -
Diluted EPS was affected by a net recognition of
$133 million $8 million $1.22 $0.09
-
Diluted EPS was affected by a net recognition of
-
Adjusted EBITDA for the third quarter was
$340 million $19 million -
Legacy-HGV Adjusted EBITDA was
$251 million -
Diamond contributed
$89 million -
Adjusted EBITDA and Legacy-HGV Adjusted EBITDA were affected by a net recognition of
$133 million $8 million
-
Legacy-HGV Adjusted EBITDA was
“We’re off to a great start with the integration of our Diamond acquisition, which closed in early August,” said
____________________ |
1 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 (the “Portfolio Properties”) that Diamond manages, are included in one of Diamond's single- and multi-use trusts (collectively, the "Diamond Collections"), or are Diamond-branded resorts in which Diamond owns inventory. In addition, there are affiliated resorts and hotels, which Diamond 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.
Diamond’s operations primarily consist of: VOI sales and financing which includes marketing and sales of VOIs and consumer financing for purchasers of the Company's VOIs; operations related to the management of the homeowners associations (the “HOAs”) for resort properties and the Diamond Collections, operating and managing points-based vacations clubs, and operation of certain resort amenities and management services.
The financial results in this report include Diamond’s results of operations beginning on
COVID-19 Update
As of
Overview
For the quarter ended
Net income and Adjusted EBITDA for the quarter ended
Consolidated Segment Highlights – Third Quarter 2021
Real Estate Sales and Financing
For the quarter ended
Real Estate Sales and Financing segment results reflect an increase 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 contract sales value of the Company’s total 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
Free cash flow was
As of
Subsequent Events
In
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 |
||||||||||||||||
Total Construction Recognitions (Deferrals) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
($ in millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Sales of VOIs (deferrals) |
|
$ |
— |
|
|
$ |
(13 |
) |
|
$ |
— |
|
|
$ |
(64 |
) |
Sales of VOIs recognitions |
|
|
241 |
|
|
|
— |
|
|
|
167 |
|
|
|
— |
|
|
|
|
241 |
|
|
|
(13 |
) |
|
|
167 |
|
|
|
(64 |
) |
Cost of VOI sales (deferrals)(2) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
(17 |
) |
Cost of VOI sales recognitions |
|
|
73 |
|
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
|
73 |
|
|
|
(4 |
) |
|
|
50 |
|
|
|
(17 |
) |
Sales and marketing expense (deferrals) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(9 |
) |
Sales and marketing expense recognitions |
|
|
35 |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
|
|
|
35 |
|
|
|
(1 |
) |
|
|
24 |
|
|
|
(9 |
) |
Net construction recognitions (deferrals)(1) |
|
$ |
133 |
|
|
$ |
(8 |
) |
|
$ |
93 |
|
|
$ |
(38 |
) |
|
|
2021 |
||||||||||||||||||
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full
|
||||||||||
Net (loss) income |
|
$ |
(7 |
) |
|
$ |
9 |
|
|
|
99 |
|
|
$ |
— |
|
|
$ |
101 |
|
Interest expense |
|
|
15 |
|
|
|
17 |
|
|
|
42 |
|
|
|
— |
|
|
|
74 |
|
Income tax (benefit) expense |
|
|
(6 |
) |
|
|
3 |
|
|
|
49 |
|
|
|
— |
|
|
|
46 |
|
Depreciation and amortization |
|
|
11 |
|
|
|
12 |
|
|
|
48 |
|
|
|
— |
|
|
|
71 |
|
Interest expense and depreciation and amortization included in equity in earnings (losses) from unconsolidated affiliates |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
EBITDA |
|
|
14 |
|
|
|
41 |
|
|
|
238 |
|
|
|
— |
|
|
|
293 |
|
Other loss, net |
|
|
1 |
|
|
|
1 |
|
|
|
20 |
|
|
|
— |
|
|
|
22 |
|
Share-based compensation expense |
|
|
4 |
|
|
|
14 |
|
|
|
14 |
|
|
|
— |
|
|
|
32 |
|
Acquisition and integration-related expense |
|
|
15 |
|
|
|
14 |
|
|
|
54 |
|
|
|
— |
|
|
|
83 |
|
Impairment expense |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
Other adjustment items(3) |
|
|
7 |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
20 |
|
Adjusted EBITDA |
|
$ |
42 |
|
|
$ |
70 |
|
|
$ |
340 |
|
|
$ |
— |
|
|
$ |
452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales of VOIs, net |
|
$ |
(32 |
) |
|
$ |
(42 |
) |
|
$ |
241 |
|
|
$ |
— |
|
|
$ |
167 |
|
Cost of VOI sales(2) |
|
|
(10 |
) |
|
|
(13 |
) |
|
|
73 |
|
|
|
— |
|
|
|
50 |
|
Sales, marketing, general and administrative expense |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
35 |
|
|
|
— |
|
|
|
24 |
|
Net construction deferrals |
|
$ |
(18 |
) |
|
$ |
(22 |
) |
|
$ |
133 |
|
|
$ |
— |
|
|
$ |
93 |
|
|
|
2020 |
||||||||||||||||||
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full
|
||||||||||
Net income (loss) |
|
$ |
8 |
|
|
$ |
(48 |
) |
|
$ |
(7 |
) |
|
$ |
(154 |
) |
|
|
(201 |
) |
Interest expense |
|
|
10 |
|
|
|
12 |
|
|
|
10 |
|
|
|
11 |
|
|
|
43 |
|
Income tax expense (benefit) |
|
|
1 |
|
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(67 |
) |
|
|
(79 |
) |
Depreciation and amortization |
|
|
12 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
45 |
|
Interest expense and depreciation and amortization included in equity in earnings (losses) from unconsolidated affiliates |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
EBITDA |
|
|
32 |
|
|
|
(33 |
) |
|
|
10 |
|
|
|
(199 |
) |
|
|
(190 |
) |
Other (gain) loss, net |
|
|
(2 |
) |
|
|
3 |
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
Share-based compensation expense |
|
|
(2 |
) |
|
|
6 |
|
|
|
6 |
|
|
|
5 |
|
|
|
15 |
|
Impairment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
209 |
|
|
|
209 |
|
Other adjustment items(3) |
|
|
5 |
|
|
|
5 |
|
|
|
4 |
|
|
|
12 |
|
|
|
26 |
|
Adjusted EBITDA |
|
$ |
33 |
|
|
$ |
(19 |
) |
|
$ |
19 |
|
|
$ |
24 |
|
|
$ |
57 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales of VOIs, net |
|
$ |
(47 |
) |
|
$ |
(4 |
) |
|
$ |
(13 |
) |
|
$ |
(21 |
) |
|
$ |
(85 |
) |
Cost of VOI sales(2) |
|
|
(13 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(6 |
) |
|
|
(23 |
) |
Sales, marketing, general and administrative expense |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(13 |
) |
Net construction deferrals |
|
$ |
(27 |
) |
|
$ |
(3 |
) |
|
$ |
(8 |
) |
|
$ |
(11 |
) |
|
$ |
(49 |
) |
| ____________________ | |
(1) |
The table represents deferrals and recognitions of Sales of VOI revenue and direct costs for properties under construction for the three and nine months ended |
(2) |
Includes anticipated Costs of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. |
(3) |
For the three and nine months ended |
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 HGV’s future, 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, including those related to the Diamond Acquisition and HGV’s revenues, earnings, cash flow and operations, and 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.
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. Factors that could cause HGV’s actual results to differ materially from those contemplated by its forward-looking statements include: risks that HGV may not realize the expected cost savings, synergies, growth and other benefits from the Diamond Acquisition or that the costs related to the Diamond Acquisition are greater than anticipated; risks that there may be significant costs and expenses associated with liabilities related to the Diamond business that were either unknown or are greater than those anticipated at the time of the Diamond Acquisition; risks that HGV may not be successful in integrating the Diamond business into all aspects of our business and operations or that the integration will take longer than anticipated; the potential magnification of our operational risks as a result of the Diamond Acquisition and integration of the Diamond business; risks related to disruption of management’s attention from HGV’s ongoing business operations due to its efforts to integrate Diamond into HGV; any adverse effect of the Diamond Acquisition on HGV’s reputation, relationships, operating results and business generally; the continuing impact of the COVID-19 pandemic on HGV’s business, operating results, and financial condition; the extent and duration of the impact of the COVID-19 pandemic on global economic conditions; HGV’s ability to meet its liquidity needs; risks related to HGV’s indebtedness, especially in light of the significant amount of indebtedness HGV incurred to complete the Diamond Acquisition; inherent business risks, market trends and competition within the timeshare and hospitality industries; HGV’s ability to successfully source inventory and market, sell and finance VOIs; default rates on HGV’s financing receivables (including those financing receivables related to the Diamond business); the reputation of and HGV’s ability to access Hilton brands and programs, including the risk of a breach or termination of HGV’s license agreement with Hilton; the integration of Diamond’s operations as part of HGV’s overall brand that is governed by the terms of HGV’s license agreement with Hilton; compliance with and changes to
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.
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 translations; (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 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 (points-based, just-in-time, developed, and fee-for-service) 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 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, 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 condensed consolidated financial statements included in Item 1 in our Quarterly Report on form 10-Q for the quarter 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.
NOG or Net Owner Growth represents the year-over-year change in membership.
Points-Based Inventory refers to VOI sales that are backed by physical real estate that is contributed to a trust.
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.
Important Note About the Presentation
We refer to Diamond's business and operations that we acquired as "Legacy-Diamond", and our business and operations that existed both prior to and following the Diamond Acquisition as "Legacy-HGV." The Legacy-HGV business operations remain consistent for the three and nine months ended
|
||
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 (LOSS) |
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) |
||||||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
|
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
334 |
|
|
$ |
428 |
|
Restricted cash |
|
|
230 |
|
|
|
98 |
|
Accounts receivable, net |
|
|
278 |
|
|
|
119 |
|
Timeshare financing receivables, net |
|
|
1,767 |
|
|
|
974 |
|
Inventory |
|
|
1,461 |
|
|
|
702 |
|
Property and equipment, net |
|
|
822 |
|
|
|
501 |
|
Operating lease right-of-use assets, net |
|
|
76 |
|
|
|
52 |
|
Investments in unconsolidated affiliates |
|
|
56 |
|
|
|
51 |
|
|
|
|
820 |
|
|
|
— |
|
Intangible assets, net |
|
|
1,953 |
|
|
|
81 |
|
Land and infrastructure held for sale |
|
|
41 |
|
|
|
41 |
|
Other assets |
|
|
259 |
|
|
|
87 |
|
TOTAL ASSETS |
|
$ |
8,097 |
|
|
$ |
3,134 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Accounts payable, accrued expenses and other |
|
$ |
707 |
|
|
$ |
252 |
|
Advanced deposits |
|
|
116 |
|
|
|
117 |
|
Debt, net |
|
|
2,929 |
|
|
|
1,159 |
|
Non-recourse debt, net |
|
|
1,290 |
|
|
|
766 |
|
Operating lease liabilities |
|
|
93 |
|
|
|
67 |
|
Deferred revenues |
|
|
270 |
|
|
|
262 |
|
Deferred income tax liabilities |
|
|
798 |
|
|
|
137 |
|
Total liabilities |
|
|
6,203 |
|
|
|
2,760 |
|
|
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
1,611 |
|
|
|
192 |
|
Accumulated retained earnings |
|
|
282 |
|
|
|
181 |
|
Total equity |
|
|
1,894 |
|
|
|
374 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
8,097 |
|
|
$ |
3,134 |
|
T-3 |
||||||||||||||||
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in millions, except share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Sales of VOIs, net |
|
$ |
488 |
|
|
$ |
24 |
|
|
$ |
597 |
|
|
$ |
80 |
|
Sales, marketing, brand and other fees |
|
|
118 |
|
|
|
52 |
|
|
|
252 |
|
|
|
171 |
|
Financing |
|
|
53 |
|
|
|
40 |
|
|
|
127 |
|
|
|
127 |
|
Resort and club management |
|
|
99 |
|
|
|
39 |
|
|
|
192 |
|
|
|
122 |
|
Rental and ancillary services |
|
|
112 |
|
|
|
20 |
|
|
|
198 |
|
|
|
77 |
|
Cost reimbursements |
|
|
58 |
|
|
|
33 |
|
|
|
131 |
|
|
|
105 |
|
Total revenues |
|
|
928 |
|
|
|
208 |
|
|
|
1,497 |
|
|
|
682 |
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Cost of VOI sales |
|
|
130 |
|
|
|
8 |
|
|
|
154 |
|
|
|
21 |
|
Sales and marketing |
|
|
234 |
|
|
|
79 |
|
|
|
432 |
|
|
|
297 |
|
Financing |
|
|
19 |
|
|
|
13 |
|
|
|
43 |
|
|
|
39 |
|
Resort and club management |
|
|
26 |
|
|
|
9 |
|
|
|
45 |
|
|
|
27 |
|
Rental and ancillary services |
|
|
84 |
|
|
|
24 |
|
|
|
151 |
|
|
|
85 |
|
General and administrative |
|
|
41 |
|
|
|
22 |
|
|
|
92 |
|
|
|
65 |
|
Acquisition and integration-related expense |
|
|
54 |
|
|
|
— |
|
|
|
83 |
|
|
|
— |
|
Depreciation and amortization |
|
|
48 |
|
|
|
11 |
|
|
|
71 |
|
|
|
34 |
|
License fee expense |
|
|
24 |
|
|
|
11 |
|
|
|
57 |
|
|
|
39 |
|
Impairment expense |
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Cost reimbursements |
|
|
58 |
|
|
|
33 |
|
|
|
131 |
|
|
|
105 |
|
Total operating expenses |
|
|
719 |
|
|
|
210 |
|
|
|
1,261 |
|
|
|
712 |
|
Interest expense |
|
|
(42 |
) |
|
|
(10 |
) |
|
|
(74 |
) |
|
|
(32 |
) |
Equity in earnings (loss) from unconsolidated affiliates |
|
|
1 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
3 |
|
Other (loss) gain, net |
|
|
(20 |
) |
|
|
1 |
|
|
|
(22 |
) |
|
|
— |
|
Income (loss) before income taxes |
|
|
148 |
|
|
|
(12 |
) |
|
|
147 |
|
|
|
(59 |
) |
Income tax (expense) benefit |
|
|
(49 |
) |
|
|
5 |
|
|
|
(46 |
) |
|
|
12 |
|
Net income (loss) |
|
$ |
99 |
|
|
$ |
(7 |
) |
|
$ |
101 |
|
|
$ |
(47 |
) |
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.92 |
|
|
$ |
(0.08 |
) |
|
$ |
1.08 |
|
|
$ |
(0.55 |
) |
Diluted |
|
$ |
0.90 |
|
|
$ |
(0.08 |
) |
|
$ |
1.07 |
|
|
$ |
(0.55 |
) |
T-4 |
||||||||||||||||
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(in millions) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Operating Activities |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
99 |
|
|
$ |
(7 |
) |
|
$ |
101 |
|
|
$ |
(47 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
48 |
|
|
|
11 |
|
|
|
71 |
|
|
|
34 |
|
Amortization of deferred financing costs, acquisition premiums and other |
|
|
9 |
|
|
|
4 |
|
|
|
19 |
|
|
|
13 |
|
Provision for financing receivables losses |
|
|
49 |
|
|
|
12 |
|
|
|
77 |
|
|
|
57 |
|
Impairment expense |
|
|
1 |
|
|
— |
|
|
|
2 |
|
|
— |
|
||
Other loss (gain), net |
|
|
5 |
|
|
|
(1 |
) |
|
|
7 |
|
|
— |
|
|
Share-based compensation |
|
|
14 |
|
|
|
6 |
|
|
|
32 |
|
|
|
10 |
|
Deferred income tax expense (benefit) |
|
|
— |
|
|
|
(19 |
) |
|
|
9 |
|
|
|
(50 |
) |
Equity in (earnings) losses from unconsolidated affiliates |
|
|
(1 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(3 |
) |
Return on investment in unconsolidated affiliates |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Net changes in assets and liabilities, net of effects of acquisition: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(1 |
) |
|
|
(35 |
) |
|
|
(102 |
) |
|
|
65 |
|
Timeshare financing receivables, net |
|
|
(54 |
) |
|
|
29 |
|
|
|
(36 |
) |
|
|
87 |
|
Inventory |
|
|
18 |
|
|
|
(23 |
) |
|
|
(11 |
) |
|
|
(59 |
) |
Purchases and development of real estate for future conversion to inventory |
|
|
(8 |
) |
|
|
(8 |
) |
|
|
(25 |
) |
|
|
(27 |
) |
Other assets |
|
|
97 |
|
|
|
8 |
|
|
|
62 |
|
|
|
(25 |
) |
Accounts payable, accrued expenses and other |
|
|
(54 |
) |
|
|
24 |
|
|
|
5 |
|
|
|
(48 |
) |
Advanced deposits |
|
|
(5 |
) |
|
|
3 |
|
|
|
(5 |
) |
|
|
4 |
|
Deferred revenues |
|
|
(275 |
) |
|
|
(7 |
) |
|
|
(165 |
) |
|
|
75 |
|
Net cash (used in) provided by operating activities |
|
|
(56 |
) |
|
|
(2 |
) |
|
|
36 |
|
|
|
86 |
|
Investing Activities |
|
|
|
|
|
|
|
|
||||||||
Acquisition of Diamond, net of cash and restricted cash acquired |
|
|
(1,585 |
) |
|
|
— |
|
|
|
(1,585 |
) |
|
|
— |
|
Capital expenditures for property and equipment |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
(11 |
) |
|
|
(6 |
) |
Software capitalization costs |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(14 |
) |
|
|
(16 |
) |
Investments in unconsolidated affiliates |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
Net cash used in investing activities |
|
|
(1,597 |
) |
|
|
(9 |
) |
|
|
(1,610 |
) |
|
|
(24 |
) |
Financing Activities |
|
|
|
|
|
|
|
|
||||||||
Issuance of debt |
|
|
1,300 |
|
|
|
— |
|
|
|
2,650 |
|
|
|
495 |
|
Issuance of non-recourse debt |
|
|
96 |
|
|
|
— |
|
|
|
96 |
|
|
|
495 |
|
Repayment of debt |
|
|
(788 |
) |
|
|
(2 |
) |
|
|
(843 |
) |
|
|
(62 |
) |
Repayment of non-recourse debt |
|
|
(116 |
) |
|
|
(90 |
) |
|
|
(234 |
) |
|
|
(403 |
) |
Debt issuance costs |
|
|
(58 |
) |
|
|
(2 |
) |
|
|
(61 |
) |
|
|
(8 |
) |
Repurchase and retirement of common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
Payment of withholding taxes on vesting of restricted stock units |
|
|
— |
|
|
|
(1 |
) |
|
|
(5 |
) |
|
|
(3 |
) |
Proceeds from employee stock plan purchases |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Proceeds from stock option exercises |
|
|
4 |
|
|
|
— |
|
|
|
10 |
|
|
— |
|
|
Other financing activity |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Net cash provided by (used in) financing activities |
|
|
437 |
|
|
|
(95 |
) |
|
|
1,612 |
|
|
|
503 |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(1,216 |
) |
|
|
(106 |
) |
|
|
38 |
|
|
|
565 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
|
1,780 |
|
|
|
823 |
|
|
|
526 |
|
|
|
152 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
564 |
|
|
$ |
717 |
|
|
$ |
564 |
|
|
$ |
717 |
|
T-5 |
||||||||||||||||
|
||||||||||||||||
FREE CASH FLOW RECONCILIATION |
||||||||||||||||
(in millions) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net cash provided by operating activities |
|
$ |
(56 |
) |
|
$ |
(2 |
) |
|
$ |
36 |
|
|
$ |
86 |
|
Capital expenditures for property and equipment |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
(11 |
) |
|
|
(6 |
) |
Software capitalization costs |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(14 |
) |
|
|
(16 |
) |
Free Cash Flow |
|
$ |
(68 |
) |
|
$ |
(9 |
) |
|
$ |
11 |
|
|
$ |
64 |
|
Non-recourse debt activity, net |
|
|
(20 |
) |
|
|
(90 |
) |
|
|
(138 |
) |
|
|
92 |
|
Acquisition and integration-related expense |
|
|
54 |
|
|
|
— |
|
|
|
83 |
|
|
|
— |
|
Other adjustment items(1) |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Adjusted Free Cash Flow |
|
$ |
(33 |
) |
|
$ |
(99 |
) |
|
$ |
(43 |
) |
|
$ |
156 |
|
(1) |
Includes capitalized acquisition and integration-related costs for the three and nine months ended |
T-6 |
||||||||||||||||||||
|
||||||||||||||||||||
SEGMENT REVENUE RECONCILIATION |
||||||||||||||||||||
(in millions) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
||||||||||||
|
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate sales and financing |
|
$ |
659 |
|
|
$ |
532 |
|
|
$ |
127 |
|
|
$ |
116 |
|
|
$ |
416 |
|
Resort operations and club management |
|
|
216 |
|
|
|
114 |
|
|
|
102 |
|
|
|
61 |
|
|
|
53 |
|
Total segment revenues |
|
|
875 |
|
|
|
646 |
|
|
|
229 |
|
|
|
177 |
|
|
|
469 |
|
Cost reimbursements |
|
|
58 |
|
|
|
42 |
|
|
|
16 |
|
|
|
33 |
|
|
|
9 |
|
Intersegment eliminations |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(3 |
) |
Total revenues |
|
$ |
928 |
|
|
$ |
683 |
|
|
$ |
245 |
|
|
$ |
208 |
|
|
$ |
475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
||||||||||||
|
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate sales and financing |
|
$ |
976 |
|
|
$ |
849 |
|
|
$ |
127 |
|
|
$ |
378 |
|
|
$ |
471 |
|
Resort operations and club management |
|
|
403 |
|
|
|
301 |
|
|
|
102 |
|
|
|
209 |
|
|
|
92 |
|
Total segment revenues |
|
|
1,379 |
|
|
|
1,150 |
|
|
|
229 |
|
|
|
587 |
|
|
|
563 |
|
Cost reimbursements |
|
|
131 |
|
|
|
115 |
|
|
|
16 |
|
|
|
105 |
|
|
|
10 |
|
Intersegment eliminations |
|
|
(13 |
) |
|
|
(13 |
) |
|
|
— |
|
|
|
(10 |
) |
|
|
(3 |
) |
Total revenues |
|
$ |
1,497 |
|
|
$ |
1,252 |
|
|
$ |
245 |
|
|
$ |
682 |
|
|
$ |
570 |
|
T-7 |
||||||||||||||||||||
|
||||||||||||||||||||
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME (LOSS) |
||||||||||||||||||||
(in millions) |
||||||||||||||||||||
|
Three Months Ended
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Net income (loss) |
$ |
99 |
|
|
$ |
69 |
|
|
$ |
30 |
|
|
$ |
(7 |
) |
|
$ |
76 |
|
|
Interest expense |
|
42 |
|
|
|
43 |
|
|
|
(1 |
) |
|
|
10 |
|
|
|
33 |
|
|
Income tax expense (benefit) |
|
49 |
|
|
|
37 |
|
|
|
12 |
|
|
|
(5 |
) |
|
|
42 |
|
|
Depreciation and amortization |
|
48 |
|
|
|
11 |
|
|
|
37 |
|
|
|
11 |
|
|
|
— |
|
|
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
EBITDA |
|
238 |
|
|
|
160 |
|
|
|
78 |
|
|
|
10 |
|
|
|
150 |
|
|
Other loss (gain), net |
|
20 |
|
|
|
20 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
21 |
|
|
Share-based compensation expense |
|
14 |
|
|
|
14 |
|
|
|
— |
|
|
|
6 |
|
|
|
8 |
|
|
Acquisition and integration-related expense |
|
54 |
|
|
|
51 |
|
|
|
3 |
|
|
|
— |
|
|
|
51 |
|
|
Impairment expense |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
Other adjustment items(1) |
|
13 |
|
|
|
5 |
|
|
|
8 |
|
|
|
4 |
|
|
|
1 |
|
|
Adjusted EBITDA |
$ |
340 |
|
|
$ |
251 |
|
|
$ |
89 |
|
|
$ |
19 |
|
|
$ |
232 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|||||||||||
Real estate sales and financing(2) |
$ |
280 |
|
|
$ |
226 |
|
|
$ |
54 |
|
|
$ |
15 |
|
|
$ |
211 |
|
|
Resort operations and club management(2) |
|
109 |
|
|
|
69 |
|
|
|
40 |
|
|
|
30 |
|
|
|
39 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA from unconsolidated affiliates |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
License fee expense |
|
(24 |
) |
|
|
(24 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
(13 |
) |
|
General and administrative(3) |
|
(26 |
) |
|
|
(21 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(6 |
) |
|
Adjusted EBITDA |
$ |
340 |
|
|
$ |
251 |
|
|
$ |
89 |
|
|
$ |
19 |
|
|
$ |
232 |
|
|
Adjusted EBITDA profit margin |
|
36.6 |
% |
|
|
36.7 |
% |
|
|
36.3 |
% |
|
|
9.1 |
% |
|
|
|||
EBITDA profit margin |
|
25.6 |
% |
|
|
23.4 |
% |
|
|
31.8 |
% |
|
|
4.8 |
% |
|
|
|||
(1) |
For the three 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. |
|
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Net income (loss) |
$ |
101 |
|
|
$ |
71 |
|
|
$ |
30 |
|
|
$ |
(47 |
) |
|
$ |
118 |
|
|
Interest expense |
|
74 |
|
|
|
75 |
|
|
|
(1 |
) |
|
|
32 |
|
|
|
43 |
|
|
Income tax expense (benefit) |
|
46 |
|
|
|
34 |
|
|
|
12 |
|
|
|
(12 |
) |
|
|
46 |
|
|
Depreciation and amortization |
|
71 |
|
|
|
34 |
|
|
|
37 |
|
|
|
34 |
|
|
|
— |
|
|
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
(1 |
) |
|
EBITDA |
|
293 |
|
|
|
215 |
|
|
|
78 |
|
|
|
9 |
|
|
|
206 |
|
|
Other loss, net |
|
22 |
|
|
|
22 |
|
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
Share-based compensation expense |
|
32 |
|
|
|
32 |
|
|
|
— |
|
|
|
10 |
|
|
|
22 |
|
|
Acquisition and integration-related expense |
|
83 |
|
|
|
80 |
|
|
|
3 |
|
|
|
— |
|
|
|
80 |
|
|
Impairment expense |
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
Other adjustment items(1) |
|
20 |
|
|
|
12 |
|
|
|
8 |
|
|
|
14 |
|
|
|
(2 |
) |
|
Adjusted EBITDA |
$ |
452 |
|
|
$ |
363 |
|
|
$ |
89 |
|
|
$ |
33 |
|
|
$ |
330 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|||||||||||
Real estate sales and financing(2) |
$ |
352 |
|
|
$ |
298 |
|
|
$ |
54 |
|
|
$ |
16 |
|
|
$ |
282 |
|
|
Resort operations and club management(2) |
|
212 |
|
|
|
172 |
|
|
|
40 |
|
|
|
100 |
|
|
|
72 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA from unconsolidated affiliates |
|
8 |
|
|
|
8 |
|
|
|
— |
|
|
|
5 |
|
|
|
3 |
|
|
License fee expense |
|
(57 |
) |
|
|
(57 |
) |
|
|
— |
|
|
|
(39 |
) |
|
|
(18 |
) |
|
General and administrative(3) |
|
(63 |
) |
|
|
(58 |
) |
|
|
(5 |
) |
|
|
(49 |
) |
|
|
(9 |
) |
|
Adjusted EBITDA |
$ |
452 |
|
|
$ |
363 |
|
|
$ |
89 |
|
|
$ |
33 |
|
|
$ |
330 |
|
|
Adjusted EBITDA profit margin |
|
30.2 |
% |
|
|
29.0 |
% |
|
|
36.3 |
% |
|
|
4.8 |
% |
|
|
|||
EBITDA profit margin |
|
19.6 |
% |
|
|
17.2 |
% |
|
|
31.8 |
% |
|
|
1.3 |
% |
|
|
|||
(1) |
For the three 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
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Tour flow |
|
97,628 |
|
|
|
64,356 |
|
|
|
33,272 |
|
|
|
25,488 |
|
|
|
38,868 |
|
|
VPG |
$ |
4,255 |
|
|
$ |
4,320 |
|
|
$ |
4,130 |
|
|
$ |
4,205 |
|
|
$ |
115 |
|
|
Owned contract sales mix |
|
71.4 |
% |
|
|
57.2 |
% |
|
|
100.0 |
% |
|
|
42.7 |
% |
|
|
14.5 |
% |
|
Fee-for-service contract sales mix |
|
28.6 |
% |
|
|
42.8 |
% |
|
|
0.0 |
% |
|
|
57.3 |
% |
|
|
(14.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contract sales |
$ |
433 |
|
|
$ |
290 |
|
|
$ |
143 |
|
|
$ |
117 |
|
|
$ |
173 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Fee-for-service sales(1) |
|
(124 |
) |
|
|
(124 |
) |
|
|
— |
|
|
|
(67 |
) |
|
|
(57 |
) |
|
Provision for financing receivables losses |
|
(50 |
) |
|
|
(27 |
) |
|
|
(23 |
) |
|
|
(12 |
) |
|
|
(15 |
) |
|
Reportability and other: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net recognition (deferral) of sales of VOIs under construction(2) |
|
241 |
|
|
|
241 |
|
|
|
— |
|
|
|
(13 |
) |
|
|
254 |
|
|
Fee-for-service sale upgrades, net |
|
3 |
|
|
|
3 |
|
|
|
— |
|
|
|
4 |
|
|
|
(1 |
) |
|
Other(3) |
|
(15 |
) |
|
|
5 |
|
|
|
(20 |
) |
|
|
(5 |
) |
|
|
10 |
|
|
Sales of VOIs, net |
$ |
488 |
|
|
$ |
388 |
|
|
$ |
100 |
|
|
$ |
24 |
|
|
$ |
364 |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|||||||||||
Fee-for-service commissions and brand fees, net |
|
73 |
|
|
|
73 |
|
|
|
— |
|
|
|
41 |
|
|
|
32 |
|
|
Sales revenue |
|
561 |
|
|
|
461 |
|
|
|
100 |
|
|
|
65 |
|
|
|
396 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of VOI sales |
|
130 |
|
|
|
118 |
|
|
|
12 |
|
|
|
8 |
|
|
|
110 |
|
|
Sales and marketing expense, net(4) |
|
174 |
|
|
|
134 |
|
|
|
40 |
|
|
|
66 |
|
|
|
68 |
|
|
Real estate profit (loss) |
$ |
257 |
|
|
$ |
209 |
|
|
$ |
48 |
|
|
$ |
(9 |
) |
|
$ |
218 |
|
|
Real estate profit margin |
|
45.8 |
% |
|
|
45.3 |
% |
|
|
48.0 |
% |
|
|
(13.8 |
)% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of fee-for-service commissions: |
|
|
|
|
|
|
|
|
|
|||||||||||
Sales, marketing, brand and other fees |
$ |
118 |
|
|
$ |
107 |
|
|
$ |
11 |
|
|
$ |
52 |
|
|
$ |
55 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||||||
Marketing revenue and other fees |
45 |
|
|
34 |
|
|
11 |
|
|
|
11 |
|
|
|
23 |
|
||||
Fee-for-service commissions and brand fees, net |
|
73 |
|
|
|
73 |
|
|
|
— |
|
|
|
41 |
|
|
|
32 |
|
|
(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. |
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
||||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Tour flow |
|
181,921 |
|
|
|
148,649 |
|
|
|
33,272 |
|
|
|
98,263 |
|
|
|
50,386 |
|
|
VPG |
$ |
4,356 |
|
|
$ |
4,406 |
|
|
$ |
4,130 |
|
|
$ |
3,763 |
|
|
$ |
643 |
|
|
Owned contract sales mix |
|
65.2 |
% |
|
|
58.0 |
% |
|
|
100.0 |
% |
|
|
45.5 |
% |
|
|
75.0 |
% |
|
Fee-for-service contract sales mix |
|
34.8 |
% |
|
|
42.0 |
% |
|
|
0.0 |
% |
|
|
54.5 |
% |
|
|
25.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contract sales |
$ |
831 |
|
|
$ |
688 |
|
|
$ |
143 |
|
|
$ |
396 |
|
|
$ |
292 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Fee-for-service sales(1) |
|
(289 |
) |
|
|
(289 |
) |
|
|
— |
|
|
|
(216 |
) |
|
|
(73 |
) |
|
Provision for financing receivables losses |
|
(78 |
) |
|
|
(55 |
) |
|
|
(23 |
) |
|
|
(57 |
) |
|
|
2 |
|
|
Reportability and other: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net recognition (deferral) of sales of VOIs under construction(2) |
|
167 |
|
|
|
167 |
|
|
|
— |
|
|
|
(64 |
) |
|
|
231 |
|
|
Fee-for-service sale upgrades, net |
|
8 |
|
|
|
8 |
|
|
|
— |
|
|
|
13 |
|
|
|
(5 |
) |
|
Other(3) |
|
(42 |
) |
|
|
(22 |
) |
|
|
(20 |
) |
|
|
8 |
|
|
|
(30 |
) |
|
Sales of VOIs, net |
$ |
597 |
|
|
$ |
497 |
|
|
$ |
100 |
|
|
$ |
80 |
|
|
$ |
417 |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|||||||||||
Fee-for-service commissions and brand fees, net |
|
162 |
|
|
|
162 |
|
|
|
— |
|
|
|
131 |
|
|
|
31 |
|
|
Sales revenue |
|
759 |
|
|
|
659 |
|
|
|
100 |
|
|
|
211 |
|
|
|
448 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of VOI sales |
|
154 |
|
|
|
142 |
|
|
|
12 |
|
|
|
21 |
|
|
|
121 |
|
|
Sales and marketing expense, net(4) |
|
316 |
|
|
|
276 |
|
|
|
40 |
|
|
|
247 |
|
|
|
29 |
|
|
Real estate profit (loss) |
$ |
289 |
|
|
$ |
241 |
|
|
$ |
48 |
|
|
$ |
(57 |
) |
|
$ |
298 |
|
|
Real estate profit margin |
|
38.1 |
% |
|
|
36.6 |
% |
|
|
48.0 |
% |
|
|
(27.0 |
)% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of fee-for-service commissions: |
|
|
|
|
|
|
|
|
|
|||||||||||
Sales, marketing, brand and other fees |
$ |
252 |
|
|
$ |
241 |
|
|
$ |
11 |
|
|
$ |
171 |
|
|
$ |
70 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||||||
Marketing revenue and other fees |
90 |
|
|
79 |
|
|
11 |
|
|
|
40 |
|
|
|
39 |
|
||||
Fee-for-Service commissions and brand fees, net |
|
162 |
|
|
|
162 |
|
|
|
— |
|
|
|
131 |
|
|
|
31 |
|
|
(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
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Just-in-time Contract Sales Mix |
|
|
19 |
% |
|
|
20 |
% |
|
|
22 |
% |
|
|
22 |
% |
Fee-For-Service Contract Sales Mix |
|
|
29 |
% |
|
|
57 |
% |
|
|
35 |
% |
|
|
55 |
% |
Total Capital-Efficient Contract Sales Mix(1) |
|
|
48 |
% |
|
|
77 |
% |
|
|
57 |
% |
|
|
77 |
% |
(1) |
Total capital-efficient contract sales mix does not include Diamond contract sales are not considered for capital efficiency calculations. |
T-10 |
||||||||||||||||||||
|
||||||||||||||||||||
FINANCING PROFIT DETAIL SCHEDULE |
||||||||||||||||||||
(in millions) |
||||||||||||||||||||
|
Three Months Ended
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Interest income |
$ |
46 |
|
|
$ |
31 |
|
|
$ |
15 |
|
|
$ |
34 |
|
|
$ |
(3 |
) |
|
Other financing revenue |
|
7 |
|
|
|
6 |
|
|
|
1 |
|
|
|
6 |
|
|
|
— |
|
|
Financing revenue |
|
53 |
|
|
|
37 |
|
|
|
16 |
|
|
|
40 |
|
|
|
(3 |
) |
|
Consumer financing interest expense |
|
8 |
|
|
|
7 |
|
|
|
1 |
|
|
|
9 |
|
|
|
(2 |
) |
|
Other financing expense |
|
11 |
|
|
|
6 |
|
|
|
5 |
|
|
|
4 |
|
|
|
2 |
|
|
Financing expense |
|
19 |
|
|
|
13 |
|
|
|
6 |
|
|
|
13 |
|
|
|
— |
|
|
Financing profit |
$ |
34 |
|
|
$ |
24 |
|
|
$ |
10 |
|
|
$ |
27 |
|
|
$ |
(3 |
) |
|
Financing profit margin |
|
64.2 |
% |
|
|
64.9 |
% |
|
|
62.5 |
% |
|
|
67.5 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Interest income |
$ |
108 |
|
|
$ |
93 |
|
|
$ |
15 |
|
|
$ |
108 |
|
|
$ |
(15 |
) |
|
Other financing revenue |
|
19 |
|
|
|
18 |
|
|
|
1 |
|
|
|
19 |
|
|
|
(1 |
) |
|
Financing revenue |
|
127 |
|
|
|
111 |
|
|
|
16 |
|
|
|
127 |
|
|
|
(16 |
) |
|
Consumer financing interest expense |
|
22 |
|
|
|
21 |
|
|
|
1 |
|
|
|
23 |
|
|
|
(2 |
) |
|
Other financing expense |
|
21 |
|
|
|
16 |
|
|
|
5 |
|
|
|
16 |
|
|
|
— |
|
|
Financing expense |
|
43 |
|
|
|
37 |
|
|
|
6 |
|
|
|
39 |
|
|
|
(2 |
) |
|
Financing profit |
$ |
84 |
|
|
$ |
74 |
|
|
$ |
10 |
|
|
$ |
88 |
|
|
$ |
(14 |
) |
|
Financing profit margin |
|
66.1 |
% |
|
|
66.7 |
% |
|
|
62.5 |
% |
|
|
69.3 |
% |
|
|
|||
T-11 |
||||||||||||||||||||
|
||||||||||||||||||||
RESORT AND CLUB PROFIT DETAIL SCHEDULE |
||||||||||||||||||||
(in millions, except for Members and Net Owner Growth) |
||||||||||||||||||||
|
|
|
|
|
Twelve months ended |
|||||||||||||||
|
|
|
|
|
|
|
2021 |
|
2020 |
|||||||||||
Legacy-HGV total members |
|
|
|
|
|
|
|
331,485 |
|
|
|
327,558 |
|
|||||||
Legacy-HGV Net Owner Growth (NOG)(1) |
|
|
|
|
|
|
|
3,927 |
|
|
|
6,019 |
|
|||||||
Legacy-HGV Net Owner Growth % (NOG%)(1) |
|
|
|
|
|
|
|
1.2 |
% |
|
|
1.9 |
% |
|||||||
Legacy-Diamond total members |
|
|
|
|
|
|
|
131,477 |
|
|
|
127,991 |
|
|||||||
(1) NOG is a twelve-trailing-month concept and thus not calculated for Diamond under HGV''s ownership. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Club management revenue |
$ |
42 |
|
|
$ |
30 |
|
|
$ |
12 |
|
|
$ |
23 |
|
|
$ |
7 |
|
|
Resort management revenue |
|
57 |
|
|
|
19 |
|
|
|
38 |
|
|
|
16 |
|
|
|
3 |
|
|
Resort and club management revenues |
|
99 |
|
|
|
49 |
|
|
|
50 |
|
|
|
39 |
|
|
|
10 |
|
|
Club management expense |
|
8 |
|
|
|
6 |
|
|
|
2 |
|
|
|
6 |
|
|
|
— |
|
|
Resort management expense |
|
18 |
|
|
|
5 |
|
|
|
13 |
|
|
|
3 |
|
|
|
2 |
|
|
Resort and club management expenses |
|
26 |
|
|
|
11 |
|
|
|
15 |
|
|
|
9 |
|
|
|
2 |
|
|
Resort and club management profit |
$ |
73 |
|
|
$ |
38 |
|
|
$ |
35 |
|
|
$ |
30 |
|
|
$ |
8 |
|
|
Resort and club management profit margin |
|
73.7 |
% |
|
|
77.6 |
% |
|
|
70.0 |
% |
|
|
76.9 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Club management revenue |
$ |
98 |
|
|
$ |
86 |
|
|
$ |
12 |
|
|
$ |
70 |
|
|
$ |
16 |
|
|
Resort management revenue |
|
94 |
|
|
|
56 |
|
|
|
38 |
|
|
|
52 |
|
|
|
4 |
|
|
Resort and club management revenues |
|
192 |
|
|
|
142 |
|
|
|
50 |
|
|
|
122 |
|
|
|
20 |
|
|
Club management expense |
|
18 |
|
|
|
16 |
|
|
|
2 |
|
|
|
18 |
|
|
|
(2 |
) |
|
Resort management expense |
|
27 |
|
|
|
14 |
|
|
|
13 |
|
|
|
9 |
|
|
|
5 |
|
|
Resort and club management expenses |
|
45 |
|
|
|
30 |
|
|
|
15 |
|
|
|
27 |
|
|
|
3 |
|
|
Resort and club management profit |
$ |
147 |
|
|
$ |
112 |
|
|
$ |
35 |
|
|
$ |
95 |
|
|
$ |
17 |
|
|
Resort and club management profit margin |
|
76.6 |
% |
|
|
78.9 |
% |
|
|
70.0 |
% |
|
|
77.9 |
% |
|
|
|||
T-12 |
||||||||||||||||||||
|
||||||||||||||||||||
RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE |
||||||||||||||||||||
(in millions) |
||||||||||||||||||||
|
Three Months Ended
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Rental revenues |
$ |
104 |
|
|
$ |
56 |
|
|
$ |
48 |
|
|
$ |
19 |
|
|
$ |
37 |
|
|
Ancillary services revenues |
|
8 |
|
|
|
4 |
|
|
|
4 |
|
|
|
1 |
|
|
|
3 |
|
|
Rental and ancillary services revenues |
|
112 |
|
|
|
60 |
|
|
|
52 |
|
|
|
20 |
|
|
|
40 |
|
|
Rental expenses |
|
77 |
|
|
|
32 |
|
|
|
45 |
|
|
|
23 |
|
|
|
9 |
|
|
Ancillary services expense |
|
7 |
|
|
|
5 |
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
|
Rental and ancillary services expenses |
|
84 |
|
|
|
37 |
|
|
|
47 |
|
|
|
24 |
|
|
|
13 |
|
|
Rental and ancillary services profit (loss) |
$ |
28 |
|
|
$ |
23 |
|
|
$ |
5 |
|
|
$ |
(4 |
) |
|
$ |
27 |
|
|
Rental and ancillary services profit margin |
|
25.0 |
% |
|
|
38.3 |
% |
|
|
9.6 |
% |
|
|
(20.0 |
)% |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Rental revenues |
$ |
184 |
|
|
$ |
136 |
|
|
$ |
48 |
|
|
$ |
71 |
|
|
$ |
65 |
|
|
Ancillary services revenues |
|
14 |
|
|
|
10 |
|
|
|
4 |
|
|
|
6 |
|
|
|
4 |
|
|
Rental and ancillary services revenues |
|
198 |
|
|
|
146 |
|
|
|
52 |
|
|
|
77 |
|
|
|
69 |
|
|
Rental expenses |
|
138 |
|
|
|
93 |
|
|
|
45 |
|
|
|
77 |
|
|
|
16 |
|
|
Ancillary services expense |
|
13 |
|
|
|
11 |
|
|
|
2 |
|
|
|
8 |
|
|
|
3 |
|
|
Rental and ancillary services expenses |
|
151 |
|
|
|
104 |
|
|
|
47 |
|
|
|
85 |
|
|
|
19 |
|
|
Rental and ancillary services profit (loss) |
$ |
47 |
|
|
$ |
42 |
|
|
$ |
5 |
|
|
$ |
(8 |
) |
|
$ |
50 |
|
|
Rental and ancillary services profit margin |
|
23.7 |
% |
|
|
28.8 |
% |
|
|
9.6 |
% |
|
|
(10.4 |
)% |
|
|
|
||
T-13 |
||||||||||||||||||||
|
||||||||||||||||||||
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA |
||||||||||||||||||||
(in millions) |
||||||||||||||||||||
|
Three Months Ended
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Sales of VOIs, net |
$ |
488 |
|
|
$ |
388 |
|
|
$ |
100 |
|
|
$ |
24 |
|
|
$ |
364 |
|
|
Sales, marketing, brand and other fees |
|
118 |
|
|
|
107 |
|
|
|
11 |
|
|
|
52 |
|
|
|
55 |
|
|
Financing revenue |
|
53 |
|
|
|
37 |
|
|
|
16 |
|
|
|
40 |
|
|
|
(3 |
) |
|
Real estate sales and financing segment revenues |
|
659 |
|
|
|
532 |
|
|
|
127 |
|
|
|
116 |
|
|
|
416 |
|
|
Cost of VOI sales |
|
(130 |
) |
|
|
(118 |
) |
|
|
(12 |
) |
|
|
(8 |
) |
|
|
(110 |
) |
|
Sales and marketing expense, net |
|
(234 |
) |
|
|
(175 |
) |
|
|
(59 |
) |
|
|
(79 |
) |
|
|
(96 |
) |
|
Financing expense |
|
(19 |
) |
|
|
(13 |
) |
|
|
(6 |
) |
|
|
(13 |
) |
|
|
— |
|
|
Marketing package stays |
|
(5 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
Share-based compensation |
|
3 |
|
|
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
Other adjustment items |
|
6 |
|
|
|
2 |
|
|
|
4 |
|
|
|
— |
|
|
|
2 |
|
|
Real estate sales and financing segment adjusted EBITDA |
$ |
280 |
|
|
$ |
226 |
|
|
$ |
54 |
|
|
$ |
15 |
|
|
$ |
211 |
|
|
Real estate sales and financing segment adjusted EBITDA profit margin |
|
42.5 |
% |
|
|
42.5 |
% |
|
|
42.5 |
% |
|
|
12.9 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Sales of VOIs, net |
$ |
597 |
|
|
$ |
497 |
|
|
$ |
100 |
|
|
$ |
80 |
|
|
$ |
417 |
|
|
Sales, marketing, brand and other fees |
|
252 |
|
|
|
241 |
|
|
|
11 |
|
|
|
171 |
|
|
|
70 |
|
|
Financing revenue |
|
127 |
|
|
|
111 |
|
|
|
16 |
|
|
|
127 |
|
|
|
(16 |
) |
|
Real estate sales and financing segment revenues |
|
976 |
|
|
|
849 |
|
|
|
127 |
|
|
|
378 |
|
|
|
471 |
|
|
Cost of VOI sales |
|
(154 |
) |
|
|
(142 |
) |
|
|
(12 |
) |
|
|
(21 |
) |
|
|
(121 |
) |
|
Sales and marketing expense, net |
|
(432 |
) |
|
|
(373 |
) |
|
|
(59 |
) |
|
|
(297 |
) |
|
|
(76 |
) |
|
Financing expense |
|
(43 |
) |
|
|
(37 |
) |
|
|
(6 |
) |
|
|
(39 |
) |
|
|
2 |
|
|
Marketing package stays |
|
(13 |
) |
|
|
(13 |
) |
|
|
— |
|
|
|
(10 |
) |
|
|
(3 |
) |
|
Share-based compensation |
|
7 |
|
|
|
7 |
|
|
|
— |
|
|
|
4 |
|
|
|
3 |
|
|
Other adjustment items |
|
11 |
|
|
|
7 |
|
|
|
4 |
|
|
|
1 |
|
|
|
6 |
|
|
Real estate sales and financing segment adjusted EBITDA |
$ |
352 |
|
|
$ |
298 |
|
|
$ |
54 |
|
|
$ |
16 |
|
|
$ |
282 |
|
|
Real estate sales and financing segment adjusted EBITDA profit margin |
|
36.1 |
% |
|
|
35.1 |
% |
|
|
42.5 |
% |
|
|
4.2 |
% |
|
|
|||
T-14 |
||||||||||||||||||||
|
||||||||||||||||||||
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA |
||||||||||||||||||||
(in millions) |
||||||||||||||||||||
|
Three Months Ended
|
|
59 Days Ended
|
|
Three Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Resort and club management revenues |
$ |
99 |
|
|
$ |
49 |
|
|
$ |
50 |
|
|
$ |
39 |
|
|
$ |
10 |
|
|
Rental and ancillary services |
|
112 |
|
|
|
60 |
|
|
|
52 |
|
|
|
20 |
|
|
|
40 |
|
|
Marketing package stays |
|
5 |
|
|
|
5 |
|
|
|
— |
|
|
|
2 |
|
|
|
3 |
|
|
Resort and club management segment revenue |
|
216 |
|
|
|
114 |
|
|
|
102 |
|
|
|
61 |
|
|
|
53 |
|
|
Resort and club management expenses |
|
(26 |
) |
|
|
(11 |
) |
|
|
(15 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
Rental and ancillary services expenses |
|
(84 |
) |
|
|
(37 |
) |
|
|
(47 |
) |
|
|
(24 |
) |
|
|
(13 |
) |
|
Share-based compensation |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Other adjustment items |
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
Resort and club segment adjusted EBITDA |
$ |
109 |
|
|
$ |
69 |
|
|
$ |
40 |
|
|
$ |
30 |
|
|
$ |
39 |
|
|
Resort and club management segment adjusted EBITDA profit margin |
|
50.5 |
% |
|
|
60.5 |
% |
|
|
39.2 |
% |
|
|
49.2 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended
|
|
59 Days Ended
|
|
Nine Months
|
|
Legacy-HGV
|
|||||||||||||
|
Consolidated |
|
Legacy-
|
|
Legacy-
|
|
Consolidated |
|
$ |
|||||||||||
Resort and club management revenues |
$ |
192 |
|
|
$ |
142 |
|
|
$ |
50 |
|
|
$ |
122 |
|
|
$ |
20 |
|
|
Rental and ancillary services |
|
198 |
|
|
|
146 |
|
|
|
52 |
|
|
|
77 |
|
|
|
69 |
|
|
Marketing package stays |
|
13 |
|
|
|
13 |
|
|
|
— |
|
|
|
10 |
|
|
|
3 |
|
|
Resort and club management segment revenue |
|
403 |
|
|
|
301 |
|
|
|
102 |
|
|
|
209 |
|
|
|
92 |
|
|
Resort and club management expenses |
|
(45 |
) |
|
|
(30 |
) |
|
|
(15 |
) |
|
|
(27 |
) |
|
|
(3 |
) |
|
Rental and ancillary services expenses |
|
(151 |
) |
|
|
(104 |
) |
|
|
(47 |
) |
|
|
(85 |
) |
|
|
(19 |
) |
|
Share-based compensation |
|
3 |
|
|
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
Other adjustment items |
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
Resort and club segment adjusted EBITDA |
$ |
212 |
|
|
$ |
172 |
|
|
$ |
40 |
|
|
$ |
100 |
|
|
$ |
72 |
|
|
Resort and club management segment adjusted EBITDA profit margin |
|
52.6 |
% |
|
|
57.1 |
% |
|
|
39.2 |
% |
|
|
47.8 |
% |
|
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211109005606/en/
Investor Contact:
407-613-3327
mark.melnyk@hgv.com
Media Contact:
407-613-8431
lauren.george@hgv.com
Source:
FAQ
What were Hilton Grand Vacations' (HGV) contract sales for Q3 2021?
What is HGV's net income for the third quarter of 2021?
How much did HGV's total revenues grow in Q3 2021 compared to 2020?
What is the adjusted EBITDA for HGV in Q3 2021?
What synergies has HGV achieved from the Diamond acquisition?
