Marriott Vacations Worldwide Reports Second Quarter 2024 Financial Results
Marriott Vacations Worldwide (NYSE: VAC) reported mixed Q2 2024 results. Consolidated Vacation Ownership contract sales declined 1% to $449 million, but increased 3% excluding Maui. The company recorded a $70 million increase in sales reserve due to higher expected defaults. Net income attributable to common stockholders was $37 million, down from $90 million in Q2 2023. Adjusted EBITDA decreased 29% to $157 million.
Key highlights include:
- Fully diluted EPS: $0.98
- Adjusted fully diluted EPS: $1.10
- Resort occupancy: 90%
- Tours increased 5%
- Owner VPG flat, first-time buyer VPG declined
The company updated its full-year outlook, adjusting contract sales guidance for H2 2024 due to slower Maui recovery and declining first-time buyer VPGs.
Marriott Vacations Worldwide (NYSE: VAC) ha riportato risultati misti per il secondo trimestre del 2024. Le vendite di contratti di proprietà vacanziera consolidate sono diminuite dell'1% a $449 milioni, ma sono aumentate del 3% escludendo Maui. L'azienda ha registrato un incremento di $70 milioni nelle riserve di vendita a causa di un aumento atteso dei default. Il reddito netto attribuibile agli azionisti ordinari è stato di $37 milioni, in calo rispetto ai $90 milioni del Q2 2023. L'EBITDA rettificato è diminuito del 29% a $157 milioni.
I punti salienti includono:
- EPS completamente diluito: $0.98
- EPS rettificato completamente diluito: $1.10
- Occupazione del resort: 90%
- I tour sono aumentati del 5%
- VPG degli owner stabile, VPG dei primi acquirenti in calo
L'azienda ha aggiornato le previsioni per l'intero anno, rivedendo le previsioni di vendita dei contratti per il secondo semestre del 2024 a causa di un recupero più lento a Maui e della diminuzione dei VPG dei primi acquirenti.
Marriott Vacations Worldwide (NYSE: VAC) reportó resultados mixtos para el segundo trimestre de 2024. Las ventas consolidadas de contratos de propiedad vacacional disminuyeron un 1% a $449 millones, pero aumentaron un 3% excluyendo Maui. La compañía registró un aumento de $70 millones en la reserva de ventas debido a un mayor número de incumplimientos esperados. El ingreso neto atribuible a los accionistas comunes fue de $37 millones, en comparación con $90 millones en el segundo trimestre de 2023. El EBITDA ajustado disminuyó un 29% a $157 millones.
Los aspectos destacados incluyen:
- EPS totalmente diluido: $0.98
- EPS ajustado totalmente diluido: $1.10
- Ocupación de los resorts: 90%
- Los tours aumentaron un 5%
- VPG de propietarios estable, VPG de compradores primerizos disminuyó
La compañía actualizó su perspectiva para el año completo, ajustando las proyecciones de ventas de contratos para el segundo semestre de 2024 debido a la recuperación más lenta en Maui y la disminución de los VPG de compradores primerizos.
매리어트 방가리온즈 월드와이드(Marriott Vacations Worldwide, NYSE: VAC)는 2024년 2분기 혼합 결과를 발표했습니다. 통합 휴가 소유 계약 판매는 1% 감소하여 4억 4,900만 달러를 기록했지만, 마우이를 제외하면 3% 증가했습니다. 회사는 예상되는 채무 불이행 증가로 인해 7천만 달러의 판매 예약 증가를 기록했습니다. 보통주 수익은 3천7백만 달러로, 2023년 2분기 9천만 달러에서 감소했습니다. 조정 EBITDA는 29% 감소하여 1억 5천7백만 달러에 이르렀습니다.
주요 요점은 다음과 같습니다:
- 완전 희석 EPS: $0.98
- 조정 완전 희석 EPS: $1.10
- 리조트 점유율: 90%
- 투어 5% 증가
- 소유자 VPG 안정, 첫 구매자 VPG 감소
회사는 마우이 지역 회복이 더디고 첫 구매자의 VPG가 감소함에 따라 2024년 하반기 계약 판매 지침을 조정하며 연간 전망을 업데이트했습니다.
Marriott Vacations Worldwide (NYSE: VAC) a publié des résultats contrastés pour le deuxième trimestre 2024. Les ventes de contrats de propriété de vacances consolidées ont diminué de 1 % pour atteindre 449 millions de dollars, mais ont augmenté de 3 % en excluant Maui. L'entreprise a enregistré une augmentation de 70 millions de dollars des réserves de ventes en raison d'un plus grand nombre de défauts attendus. Le revenu net attribuable aux actionnaires ordinaires s'est élevé à 37 millions de dollars, en baisse par rapport à 90 millions de dollars au deuxième trimestre 2023. L'EBITDA ajusté a diminué de 29 % pour s'établir à 157 millions de dollars.
Les principaux faits saillants comprennent :
- EPS entièrement dilué : 0,98 $
- EPS ajusté entièrement dilué : 1,10 $
- Taux d'occupation des resorts : 90 %
- Les visites ont augmenté de 5 %
- VPG des propriétaires stable, VPG des primo-accédants en baisse
L'entreprise a mis à jour ses prévisions pour l'année entière, ajustant les prévisions de ventes de contrats pour le second semestre 2024 en raison d'une reprise plus lente à Maui et d'une baisse des VPG des primo-accédants.
Marriott Vacations Worldwide (NYSE: VAC) hat gemischte Ergebnisse für das zweite Quartal 2024 berichtet. Der konsolidierte Verkauf von Urlaubsbesitzverträgen sank um 1% auf 449 Millionen USD, stieg jedoch um 3%, wenn man Maui ausschließt. Das Unternehmen verzeichnete einen Anstieg der Verkaufsrücklagen um 70 Millionen USD aufgrund höherer erwarteter Ausfälle. Der Nettogewinn für Stammaktionäre betrug 37 Millionen USD, ein Rückgang von 90 Millionen USD im Q2 2023. Das bereinigte EBITDA sank um 29% auf 157 Millionen USD.
Wichtige Höhepunkte sind:
- Vollständig verwässertes EPS: 0,98 USD
- Bereinigtes vollständig verwässertes EPS: 1,10 USD
- Belegungsrate des Resorts: 90%
- Touren stiegen um 5%
- VPG der Eigentümer stabil, VPG der Erstkäufer sank
Das Unternehmen hat seinen Ausblick für das Gesamtjahr aktualisiert und die Umsatzprognosen für das zweite Halbjahr 2024 aufgrund einer langsameren Erholung in Maui und rückläufiger VPGs für Erstkäufer angepasst.
- Resort occupancy reached 90% in Q2, indicating strong travel demand
- Tours increased by 5% compared to the previous year
- Contract sales increased 3% excluding Maui
- Owner VPG remained flat year-over-year
- Consolidated Vacation Ownership contract sales declined 1% to $449 million
- $70 million increase in sales reserve due to higher expected defaults
- Net income attributable to common stockholders decreased from $90 million to $37 million
- Adjusted EBITDA decreased 29% to $157 million
- First-time buyer VPGs declined compared to last year
- Maui recovery slower than initially expected
- Exchange & Third-Party Management segment revenue decreased 9%
Marriott Vacations Worldwide's Q2 2024 results present a mixed picture with some concerning trends. The 1% decline in consolidated Vacation Ownership contract sales to
The most alarming aspect is the
The decline in VPG (Volume Per Guest) by
On a positive note, resort occupancy remains strong at
The company's liquidity position remains solid with
The vacation ownership market is showing signs of strain, as evidenced by Marriott Vacations Worldwide's Q2 results. The divergence between the
The significant increase in sales reserves is particularly telling. It implies that the company is anticipating a higher rate of defaults on vacation ownership payments, which could be an early warning sign of consumer financial stress. This aligns with broader economic indicators suggesting a potential slowdown or recession.
The slower-than-expected recovery in Maui highlights the long-lasting impact of natural disasters on tourism-dependent regions. This situation warrants closer attention to climate-related risks in the vacation ownership sector.
The decline in Exchange & Third-Party Management revenues, particularly the lower exchange volumes at Interval International, may indicate a broader trend of changing consumer preferences in the vacation market. The
Looking ahead, the reduced full-year guidance for contract sales (
Second Quarter 2024 Highlights
-
Consolidated Vacation Ownership contract sales declined
1% compared to the second quarter of 2023 to . Excluding$449 million Maui , contract sales increased3% compared to the prior year. -
The Company recorded a
increase to its sales reserve reflecting higher expected future defaults on its existing vacation ownership notes receivable portfolio.$70 million -
Net income attributable to common stockholders was
compared to$37 million in the prior year, and fully diluted earnings per share was$90 million . Net income attributable to common stockholders reflects a$0.98 impact of the higher sales reserve.$45 million -
Adjusted net income attributable to common stockholders was
compared to$42 million in the prior year, and adjusted fully diluted earnings per share was$90 million .$1.10 -
Adjusted EBITDA decreased
29% compared to the prior year to reflecting a$157 million net increase to the Company’s sales reserve.$57 million - The Company updates its full-year outlook.
“We had a mixed second quarter, with rentals exceeding our expectations and lower VPGs negatively impacting our contract sales. In addition, we have not seen the necessary improvements in our loan delinquencies, so we increased our sales reserves to reflect higher expected defaults,” said John Geller, president and chief executive officer. “Demand for travel remains strong with our resorts running
In the tables below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
Vacation Ownership
|
Three Months Ended |
|
Change |
|
||||||
(In millions, except volume per guest (“VPG”) and tours) |
June 30, 2024 |
|
June 30, 2023 |
|
|
|||||
Revenues excluding cost reimbursement |
$ |
694 |
|
|
$ |
753 |
|
|
( |
|
Total consolidated contract sales |
$ |
449 |
|
|
$ |
453 |
|
|
( |
|
VPG |
$ |
3,741 |
|
|
$ |
3,968 |
|
|
( |
|
Tours |
|
111,752 |
|
|
|
106,746 |
|
|
|
|
Segment financial results attributable to common stockholders |
$ |
144 |
|
|
$ |
224 |
|
|
( |
|
Segment Adjusted EBITDA* |
$ |
180 |
|
|
$ |
245 |
|
|
( |
|
Segment Adjusted EBITDA margin* |
|
|
|
|
|
|
(650 bps) |
|
Contract sales declined
Sales Reserve
The Company recorded a
Exchange & Third-Party Management
(In millions, except total active Interval International members and average revenue per member) |
Three Months Ended |
|
Change |
|
||||||
June 30, 2024 |
|
June 30, 2023 |
|
|
||||||
Revenues excluding cost reimbursement |
$ |
55 |
|
|
$ |
62 |
|
|
( |
|
Total active Interval International members (000's)(1) |
|
1,530 |
|
|
|
1,566 |
|
|
( |
|
Average revenue per Interval International member |
$ |
38.30 |
|
|
$ |
39.30 |
|
|
( |
|
Segment financial results attributable to common stockholders |
$ |
15 |
|
|
$ |
24 |
|
|
( |
|
Segment Adjusted EBITDA* |
$ |
25 |
|
|
$ |
32 |
|
|
( |
|
Segment Adjusted EBITDA margin* |
|
|
|
|
|
|
(760 bps) |
|
||
(1) Includes members at the end of each period. |
|
|
|
|
|
|
Revenues excluding cost reimbursements decreased year-over-year, driven primarily by lower exchange volumes at Interval International and reduced management fees at Aqua-Aston. Segment Adjusted EBITDA declined year-over-year due to lower revenue.
Corporate and Other
General and administrative costs decreased
Balance Sheet and Liquidity
During the second quarter the Company repurchased approximately 131,000 shares of its common stock for
The Company ended the quarter with
Full Year 2024 Outlook
The Company provides updated full year 2024 guidance as reflected in the chart below. The Financial schedules that follow reconcile the following full year 2024 expected GAAP results for the Company to the non-GAAP financial measures set forth below.
(in millions, except per share amounts) |
2024 Guidance |
||
Contract sales |
|
to |
|
Net income attributable to common stockholders |
|
to |
|
Earnings per share - diluted |
|
to |
|
Net cash, cash equivalents and restricted cash provided by operating activities |
|
to |
|
Adjusted EBITDA* |
|
to |
|
Adjusted earnings per share - diluted* |
|
to |
|
Adjusted free cash flow* |
|
to |
|
Non-GAAP Financial Information
Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the
Second Quarter 2024 Financial Results Conference Call
The Company will hold a conference call on August 1, 2024 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has approximately 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.
The Company routinely posts important information, including news releases, announcements and other statements about its business and results of operations, that may be deemed material to investors on the Investor Relations section of the Company’s website, www.marriottvacationsworldwide.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Investor Relations section of the Company’s website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts.
Note on forward-looking statements
This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for full year 2024 outlook for contract sales, results of operations, cash flows and future defaults on vacation ownership notes receivable. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: a future health crisis and responses to such a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price inflation; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws; the impact of a future banking crisis; impacts from natural or man-made disasters and wildfires, including the
Financial Schedules Follow
MARRIOTT VACATIONS WORLDWIDE CORPORATION FINANCIAL SCHEDULES QUARTER 2, 2024
TABLE OF CONTENTS |
|
Summary Financial Information and Adjusted EBITDA by Segment |
A-1 |
Interim Consolidated Statements of Income |
A-2 |
Revenues and Profit by Segment |
A-3 to A-4 |
Consolidated Contract Sales to Adjusted Development Profit |
A-5 |
Adjusted Net Income Attributable to Common Stockholders |
A-6 |
Adjusted Earnings Per Share - Diluted |
|
Adjusted EBITDA |
A-7 |
Segment Adjusted EBITDA |
|
Vacation Ownership |
A-8 |
Exchange & Third-Party Management |
|
Interim Balance Sheet Items and Summary Cash Flow |
A-9 |
2024 Outlook |
|
Adjusted Net Income Attributable to Common Stockholders |
|
Adjusted Earnings Per Share - Diluted |
A-10 |
Adjusted EBITDA |
|
Adjusted Free Cash Flow |
A-11 |
Quarterly Operating Metrics |
A-12 |
Non-GAAP Financial Measures |
A-13 |
A-1
|
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
SUMMARY FINANCIAL INFORMATION (In millions, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Change % |
|
Six Months Ended |
|
Change % |
||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
||||||
GAAP Measures |
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues |
$ |
1,140 |
|
$ |
1,178 |
|
( |
|
$ |
2,335 |
|
$ |
2,347 |
|
( |
Income before income taxes and noncontrolling interests |
$ |
48 |
|
$ |
140 |
|
( |
|
$ |
129 |
|
$ |
268 |
|
( |
Net income attributable to common stockholders |
$ |
37 |
|
$ |
90 |
|
( |
|
$ |
84 |
|
$ |
177 |
|
( |
Diluted shares |
|
42.2 |
|
|
43.8 |
|
( |
|
|
42.2 |
|
|
44.1 |
|
( |
Earnings per share - diluted |
$ |
0.98 |
|
$ |
2.17 |
|
( |
|
$ |
2.20 |
|
$ |
4.23 |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP Measures* |
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
157 |
|
$ |
222 |
|
( |
|
$ |
344 |
|
$ |
425 |
|
( |
Adjusted pretax income |
$ |
70 |
|
$ |
140 |
|
( |
|
$ |
172 |
|
$ |
270 |
|
( |
Adjusted net income attributable to common stockholders |
$ |
42 |
|
$ |
90 |
|
( |
|
$ |
113 |
|
$ |
199 |
|
( |
Adjusted earnings per share - diluted |
$ |
1.10 |
|
$ |
2.19 |
|
( |
|
$ |
2.91 |
|
$ |
4.73 |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
ADJUSTED EBITDA BY SEGMENT (In millions) (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Change % |
|
Six Months Ended |
|
Change % |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
||||||||||
Vacation Ownership |
$ |
180 |
|
|
$ |
245 |
|
|
( |
|
$ |
393 |
|
|
$ |
474 |
|
|
( |
Exchange & Third-Party Management |
|
25 |
|
|
|
32 |
|
|
( |
|
|
57 |
|
|
|
69 |
|
|
( |
Segment Adjusted EBITDA* |
|
205 |
|
|
|
277 |
|
|
( |
|
|
450 |
|
|
|
543 |
|
|
( |
General and administrative |
|
(54 |
) |
|
|
(64 |
) |
|
|
|
|
(117 |
) |
|
|
(132 |
) |
|
|
Other |
|
6 |
|
|
|
9 |
|
|
( |
|
|
11 |
|
|
|
14 |
|
|
( |
Adjusted EBITDA* |
$ |
157 |
|
|
$ |
222 |
|
|
( |
|
$ |
344 |
|
|
$ |
425 |
|
|
( |
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
A-2 |
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
REVENUES |
|
|
|
|
|
|
|
||||||||
Sale of vacation ownership products |
$ |
309 |
|
|
$ |
391 |
|
|
$ |
661 |
|
|
$ |
766 |
|
Management and exchange |
|
215 |
|
|
|
206 |
|
|
|
426 |
|
|
|
406 |
|
Rental |
|
153 |
|
|
|
146 |
|
|
|
311 |
|
|
|
297 |
|
Financing |
|
85 |
|
|
|
80 |
|
|
|
168 |
|
|
|
158 |
|
Cost reimbursements |
|
378 |
|
|
|
355 |
|
|
|
769 |
|
|
|
720 |
|
TOTAL REVENUES |
|
1,140 |
|
|
|
1,178 |
|
|
|
2,335 |
|
|
|
2,347 |
|
EXPENSES |
|
|
|
|
|
|
|
||||||||
Cost of vacation ownership products |
|
38 |
|
|
|
66 |
|
|
|
91 |
|
|
|
124 |
|
Marketing and sales |
|
226 |
|
|
|
206 |
|
|
|
449 |
|
|
|
416 |
|
Management and exchange |
|
119 |
|
|
|
110 |
|
|
|
235 |
|
|
|
217 |
|
Rental |
|
111 |
|
|
|
112 |
|
|
|
218 |
|
|
|
225 |
|
Financing |
|
35 |
|
|
|
25 |
|
|
|
69 |
|
|
|
51 |
|
General and administrative |
|
54 |
|
|
|
64 |
|
|
|
117 |
|
|
|
132 |
|
Depreciation and amortization |
|
35 |
|
|
|
34 |
|
|
|
73 |
|
|
|
66 |
|
Litigation charges |
|
10 |
|
|
|
2 |
|
|
|
13 |
|
|
|
5 |
|
Restructuring |
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Royalty fee |
|
29 |
|
|
|
29 |
|
|
|
57 |
|
|
|
58 |
|
Impairment |
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
Cost reimbursements |
|
378 |
|
|
|
355 |
|
|
|
769 |
|
|
|
720 |
|
TOTAL EXPENSES |
|
1,038 |
|
|
|
1,003 |
|
|
|
2,096 |
|
|
|
2,018 |
|
(Losses) gains and other (expense) income, net |
|
(7 |
) |
|
|
10 |
|
|
|
(7 |
) |
|
|
31 |
|
Interest expense, net |
|
(43 |
) |
|
|
(36 |
) |
|
|
(83 |
) |
|
|
(70 |
) |
Transaction and integration costs |
|
(3 |
) |
|
|
(10 |
) |
|
|
(18 |
) |
|
|
(23 |
) |
Other |
|
(1 |
) |
|
|
1 |
|
|
|
(2 |
) |
|
|
1 |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
48 |
|
|
|
140 |
|
|
|
129 |
|
|
|
268 |
|
Provision for income taxes |
|
(10 |
) |
|
|
(50 |
) |
|
|
(45 |
) |
|
|
(91 |
) |
NET INCOME |
|
38 |
|
|
|
90 |
|
|
|
84 |
|
|
|
177 |
|
Net income attributable to noncontrolling interests |
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
37 |
|
|
$ |
90 |
|
|
$ |
84 |
|
|
$ |
177 |
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
|
|
|
|
|
|
||||||||
Basic shares |
|
35.4 |
|
|
|
36.9 |
|
|
|
35.5 |
|
|
|
37.1 |
|
Basic |
$ |
1.04 |
|
|
$ |
2.46 |
|
|
$ |
2.36 |
|
|
$ |
4.78 |
|
Diluted shares |
|
42.2 |
|
|
|
43.8 |
|
|
|
42.2 |
|
|
|
44.1 |
|
Diluted |
$ |
0.98 |
|
|
$ |
2.17 |
|
|
$ |
2.20 |
|
|
$ |
4.23 |
|
A-3 |
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT for the three months ended June 30, 2024 (In millions) (Unaudited) |
|||||||||||||||
|
Reportable Segment |
|
Corporate
|
|
Total |
||||||||||
|
Vacation
|
|
Exchange &
|
|
|
||||||||||
REVENUES |
|
|
|
|
|
|
|
||||||||
Sales of vacation ownership products |
$ |
309 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
309 |
|
Management and exchange(1) |
|
|
|
|
|
|
|
||||||||
Ancillary revenues |
|
72 |
|
|
|
1 |
|
|
|
— |
|
|
|
73 |
|
Management fee revenues |
|
51 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
52 |
|
Exchange and other services revenues |
|
34 |
|
|
|
42 |
|
|
|
14 |
|
|
|
90 |
|
Management and exchange |
|
157 |
|
|
|
45 |
|
|
|
13 |
|
|
|
215 |
|
Rental |
|
143 |
|
|
|
10 |
|
|
|
— |
|
|
|
153 |
|
Financing |
|
85 |
|
|
|
— |
|
|
|
— |
|
|
|
85 |
|
Cost reimbursements(1) |
|
384 |
|
|
|
3 |
|
|
|
(9 |
) |
|
|
378 |
|
TOTAL REVENUES |
$ |
1,078 |
|
|
$ |
58 |
|
|
$ |
4 |
|
|
$ |
1,140 |
|
|
|
|
|
|
|
|
|
||||||||
PROFIT |
|
|
|
|
|
|
|
||||||||
Development |
$ |
45 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
45 |
|
Management and exchange(1) |
|
84 |
|
|
|
14 |
|
|
|
(2 |
) |
|
|
96 |
|
Rental(1) |
|
30 |
|
|
|
10 |
|
|
|
2 |
|
|
|
42 |
|
Financing |
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
TOTAL PROFIT |
|
209 |
|
|
|
24 |
|
|
|
— |
|
|
|
233 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
— |
|
|
|
— |
|
|
|
(54 |
) |
|
|
(54 |
) |
Depreciation and amortization |
|
(25 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(35 |
) |
Litigation charges |
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
Restructuring |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Royalty fee |
|
(29 |
) |
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
Impairment |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
Gains (losses) and other income (expense), net |
|
1 |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(7 |
) |
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
(43 |
) |
|
|
(43 |
) |
Transaction and integration costs |
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(3 |
) |
Other |
|
(2 |
) |
|
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
144 |
|
|
|
15 |
|
|
|
(111 |
) |
|
|
48 |
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(10 |
) |
NET INCOME (LOSS) |
|
144 |
|
|
|
15 |
|
|
|
(121 |
) |
|
|
38 |
|
Net income attributable to noncontrolling interests(1) |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
144 |
|
|
$ |
15 |
|
|
$ |
(122 |
) |
|
$ |
37 |
|
SEGMENT MARGIN(2) |
|
|
|
|
|
|
|
||||||||
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. |
|||||||||||||||
(2) Segment margin represents the applicable segment’s net income or loss attributable to common stockholders divided by the applicable segment’s total revenues less cost reimbursement revenues. |
A-4 |
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT for the three months ended June 30, 2023 (In millions) (Unaudited) |
|||||||||||||||
Reportable Segment |
|||||||||||||||
Vacation
|
Exchange &
|
Corporate
|
Total |
||||||||||||
REVENUES |
|
|
|
|
|
|
|
||||||||
Sales of vacation ownership products |
$ |
391 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
391 |
|
Management and exchange(1) |
|
|
|
|
|
|
|
||||||||
Ancillary revenues |
|
70 |
|
|
|
1 |
|
|
|
— |
|
|
|
71 |
|
Management fee revenues |
|
45 |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
49 |
|
Exchange and other services revenues |
|
32 |
|
|
|
45 |
|
|
|
9 |
|
|
|
86 |
|
Management and exchange |
|
147 |
|
|
|
51 |
|
|
|
8 |
|
|
|
206 |
|
Rental |
|
135 |
|
|
|
11 |
|
|
|
— |
|
|
|
146 |
|
Financing |
|
80 |
|
|
|
— |
|
|
|
— |
|
|
|
80 |
|
Cost reimbursements(1) |
|
359 |
|
|
|
3 |
|
|
|
(7 |
) |
|
|
355 |
|
TOTAL REVENUES |
$ |
1,112 |
|
|
$ |
65 |
|
|
$ |
1 |
|
|
$ |
1,178 |
|
|
|
|
|
|
|
|
|
||||||||
PROFIT |
|
|
|
|
|
|
|
||||||||
Development |
$ |
119 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
119 |
|
Management and exchange(1) |
|
78 |
|
|
|
21 |
|
|
|
(3 |
) |
|
|
96 |
|
Rental(1) |
|
19 |
|
|
|
11 |
|
|
|
4 |
|
|
|
34 |
|
Financing |
|
55 |
|
|
|
— |
|
|
|
— |
|
|
|
55 |
|
TOTAL PROFIT |
|
271 |
|
|
|
32 |
|
|
|
1 |
|
|
|
304 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
— |
|
|
|
— |
|
|
|
(64 |
) |
|
|
(64 |
) |
Depreciation and amortization |
|
(23 |
) |
|
|
(8 |
) |
|
|
(3 |
) |
|
|
(34 |
) |
Litigation charges |
|
(3 |
) |
|
|
— |
|
|
|
1 |
|
|
|
(2 |
) |
Royalty fee |
|
(29 |
) |
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
Gains and other income, net |
|
7 |
|
|
|
— |
|
|
|
3 |
|
|
|
10 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
(36 |
) |
|
|
(36 |
) |
Transaction and integration costs |
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(10 |
) |
Other |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
224 |
|
|
|
24 |
|
|
|
(108 |
) |
|
|
140 |
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
(50 |
) |
|
|
(50 |
) |
NET INCOME (LOSS) |
|
224 |
|
|
|
24 |
|
|
|
(158 |
) |
|
|
90 |
|
Net income attributable to noncontrolling interests(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
224 |
|
|
$ |
24 |
|
|
$ |
(158 |
) |
|
$ |
90 |
|
SEGMENT MARGIN(2) |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. |
|||||||||||||||
(2) Segment margin represents the applicable segment’s net income or loss attributable to common stockholders divided by the applicable segment’s total revenues less cost reimbursement revenues. |
A-5 |
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Consolidated contract sales |
$ |
449 |
|
|
$ |
453 |
|
|
$ |
877 |
|
|
$ |
887 |
|
Less resales contract sales |
|
(9 |
) |
|
|
(10 |
) |
|
|
(21 |
) |
|
|
(21 |
) |
Consolidated contract sales, net of resales |
|
440 |
|
|
|
443 |
|
|
|
856 |
|
|
|
866 |
|
Plus: |
|
|
|
|
|
|
|
||||||||
Settlement revenue |
|
10 |
|
|
|
9 |
|
|
|
18 |
|
|
|
17 |
|
Resales revenue |
|
6 |
|
|
|
6 |
|
|
|
11 |
|
|
|
12 |
|
Revenue recognition adjustments: |
|
|
|
|
|
|
|
||||||||
Reportability |
|
1 |
|
|
|
5 |
|
|
|
(8 |
) |
|
|
5 |
|
Sales reserve(1) |
|
(122 |
) |
|
|
(45 |
) |
|
|
(168 |
) |
|
|
(83 |
) |
Other(2) |
|
(26 |
) |
|
|
(27 |
) |
|
|
(48 |
) |
|
|
(51 |
) |
Sale of vacation ownership products |
|
309 |
|
|
|
391 |
|
|
|
661 |
|
|
|
766 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Cost of vacation ownership products |
|
(38 |
) |
|
|
(66 |
) |
|
|
(91 |
) |
|
|
(124 |
) |
Marketing and sales |
|
(226 |
) |
|
|
(206 |
) |
|
|
(449 |
) |
|
|
(416 |
) |
Development Profit |
|
45 |
|
|
|
119 |
|
|
121 |
|
|
|
226 |
|
|
Revenue recognition reportability adjustment |
|
(1 |
) |
|
|
(3 |
) |
|
|
6 |
|
|
|
(3 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
Adjusted development profit* |
$ |
44 |
|
|
$ |
118 |
|
|
$ |
128 |
|
|
$ |
227 |
|
Development profit margin |
|
|
|
|
|
|
|
||||||||
Adjusted development profit margin* |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
(1) Reflects a |
|||||||||||||||
(2) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. | |||||||||||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
A-6 |
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED (In millions, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Net income attributable to common stockholders |
$ |
37 |
|
|
$ |
90 |
|
|
$ |
84 |
|
|
$ |
177 |
|
Provision for income taxes |
|
10 |
|
|
|
50 |
|
|
|
45 |
|
|
|
91 |
|
Income before income taxes attributable to common stockholders |
|
47 |
|
|
|
140 |
|
|
|
129 |
|
|
|
268 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
ILG integration |
|
— |
|
|
|
6 |
|
|
— |
|
|
15 |
|
||
Welk acquisition and integration |
|
3 |
|
|
|
4 |
|
|
|
18 |
|
|
|
8 |
|
Transaction and integration costs |
|
3 |
|
|
|
10 |
|
|
|
18 |
|
|
|
23 |
|
Early redemption of senior secured notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Gain on disposition of hotel, land and other |
|
(1 |
) |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
Foreign currency translation |
|
4 |
|
|
|
(2 |
) |
|
|
6 |
|
|
|
(4 |
) |
Insurance proceeds |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Change in indemnification asset |
|
4 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
(24 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Losses (gains) and other expense (income), net |
|
7 |
|
|
|
(10 |
) |
|
|
7 |
|
|
|
(31 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
Litigation charges |
|
10 |
|
|
|
2 |
|
|
|
13 |
|
|
|
5 |
|
Restructuring charges |
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Impairment charges |
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
Other |
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Adjusted pretax income* |
|
70 |
|
|
|
140 |
|
|
|
172 |
|
|
|
270 |
|
Provision for income taxes |
|
(28 |
) |
|
|
(50 |
) |
|
|
(59 |
) |
|
|
(71 |
) |
Adjusted net income attributable to common stockholders* |
$ |
42 |
|
|
$ |
90 |
|
|
$ |
113 |
|
|
$ |
199 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares |
|
42.2 |
|
|
|
43.8 |
|
|
|
42.2 |
|
|
|
44.1 |
|
Adjusted earnings per share - Diluted* |
$ |
1.10 |
|
|
$ |
2.19 |
|
|
$ |
2.91 |
|
|
$ |
4.73 |
|
|
|
|
|
|
|
|
|
||||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
A-7 |
|||||||||||||||
|
|
|
|
||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA (In millions) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Net income attributable to common stockholders |
$ |
37 |
|
|
$ |
90 |
|
|
$ |
84 |
|
|
$ |
177 |
|
Interest expense, net |
|
43 |
|
|
|
36 |
|
|
|
83 |
|
|
|
70 |
|
Provision for income taxes |
|
10 |
|
|
|
50 |
|
|
|
45 |
|
|
|
91 |
|
Depreciation and amortization |
|
35 |
|
|
|
34 |
|
|
|
73 |
|
|
|
66 |
|
Share-based compensation |
|
9 |
|
|
|
12 |
|
|
|
16 |
|
|
|
19 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
ILG integration |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
15 |
|
Welk acquisition and integration |
|
3 |
|
|
|
4 |
|
|
|
18 |
|
|
|
8 |
|
Transaction and integration costs |
|
3 |
|
|
|
10 |
|
|
|
18 |
|
|
|
23 |
|
Early redemption of senior secured notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Gain on disposition of hotel, land and other |
|
(1 |
) |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
Foreign currency translation |
|
4 |
|
|
|
(2 |
) |
|
|
6 |
|
|
|
(4 |
) |
Insurance proceeds |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Change in indemnification asset |
|
4 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
(24 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Losses (gains) and other expense (income), net |
|
7 |
|
|
|
(10 |
) |
|
|
7 |
|
|
|
(31 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
Litigation charges |
|
10 |
|
|
|
2 |
|
|
|
13 |
|
|
|
5 |
|
Restructuring charges |
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Impairment charges |
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
Other |
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Adjusted EBITDA* |
$ |
157 |
|
|
$ |
222 |
|
|
$ |
344 |
|
|
$ |
425 |
|
Adjusted EBITDA Margin* |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
A-8 |
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited)
VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Segment financial results attributable to common stockholders |
$ |
144 |
|
|
$ |
224 |
|
|
$ |
326 |
|
|
$ |
429 |
|
Depreciation and amortization |
|
25 |
|
|
|
23 |
|
|
|
50 |
|
|
|
46 |
|
Share-based compensation |
|
2 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
Gain on disposition of hotel, land and other |
|
(1 |
) |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
Insurance proceeds |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Change in indemnification asset |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Gains and other income, net |
|
(1 |
) |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(16 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
Litigation charges |
|
10 |
|
|
|
3 |
|
|
|
13 |
|
|
|
6 |
|
Impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Other |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
Segment Adjusted EBITDA* |
$ |
180 |
|
|
$ |
245 |
|
|
$ |
393 |
|
|
$ |
474 |
|
Segment Adjusted EBITDA Margin* |
|
|
|
|
|
|
|
EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Segment financial results attributable to common stockholders |
$ |
15 |
|
|
$ |
24 |
|
|
$ |
40 |
|
|
$ |
52 |
|
Depreciation and amortization |
|
7 |
|
|
|
8 |
|
|
|
14 |
|
|
|
16 |
|
Share-based compensation |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
Impairment charges |
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Segment Adjusted EBITDA* |
$ |
25 |
|
|
$ |
32 |
|
|
$ |
57 |
|
|
$ |
69 |
|
Segment Adjusted EBITDA Margin* |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
A-9 |
|||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited)
INTERIM BALANCE SHEET ITEMS |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
Cash and cash equivalents |
$ |
206 |
|
$ |
248 |
||
Vacation ownership notes receivable, net |
$ |
2,308 |
|
$ |
2,343 |
||
Inventory |
$ |
643 |
|
$ |
634 |
||
Property and equipment, net |
$ |
1,295 |
|
$ |
1,260 |
||
Goodwill |
$ |
3,117 |
|
$ |
3,117 |
||
Intangibles, net |
$ |
822 |
|
$ |
854 |
||
Debt, net |
$ |
3,137 |
|
$ |
3,049 |
||
Stockholders’ equity |
$ |
2,372 |
|
$ |
2,382 |
SUMMARY CASH FLOW |
|||||||
|
Six Months Ended |
||||||
CASH FLOW |
June 30, 2024 |
|
June 30, 2023 |
||||
Cash, cash equivalents, and restricted cash provided by (used in): |
|
|
|
||||
Operating activities |
$ |
33 |
|
|
$ |
27 |
|
Investing activities |
|
(88 |
) |
|
|
(53 |
) |
Financing activities |
|
(59 |
) |
|
|
(349 |
) |
Effect of changes in exchange rates on cash, cash equivalents, and restricted cash |
|
(3 |
) |
|
|
1 |
|
Net change in cash, cash equivalents, and restricted cash |
$ |
(117 |
) |
|
$ |
(374 |
) |
A-10 |
|||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except per share amounts)
2024 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK |
|||||||
|
Fiscal Year 2024 |
||||||
|
Low |
|
High |
||||
Net income attributable to common stockholders |
$ |
195 |
|
|
$ |
215 |
|
Provision for income taxes |
|
92 |
|
|
|
102 |
|
Income before income taxes attributable to common stockholders |
|
287 |
|
|
|
317 |
|
Certain items(1) |
|
50 |
|
|
|
50 |
|
Adjusted pretax income* |
|
337 |
|
|
|
367 |
|
Provision for income taxes |
|
(106 |
) |
|
|
(113 |
) |
Adjusted net income attributable to common stockholders* |
$ |
231 |
|
|
$ |
254 |
|
Earnings per share - Diluted(2)(3) |
$ |
5.05 |
|
|
$ |
5.55 |
|
Adjusted earnings per share - Diluted(2)(3)* |
$ |
5.90 |
|
|
$ |
6.45 |
|
Diluted shares(2) |
|
42.3 |
|
|
|
42.3 |
|
2024 ADJUSTED EBITDA OUTLOOK |
|||||||
|
Fiscal Year 2024 |
||||||
|
Low |
|
High |
||||
Net income attributable to common stockholders |
$ |
195 |
|
$ |
215 |
||
Interest expense |
|
169 |
|
|
169 |
||
Provision for income taxes |
|
92 |
|
|
102 |
||
Depreciation and amortization |
|
146 |
|
|
146 |
||
Share-based compensation |
|
33 |
|
|
33 |
||
Certain items(1) |
|
50 |
|
|
50 | ||
Adjusted EBITDA* |
$ |
685 |
|
$ |
715 |
||
(1) Certain items adjustment includes |
|||||||
(2) Includes 6.6 million shares from the assumed conversion of our convertible notes. |
|||||||
(3) Includes an add back of |
|||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
A-11 |
|||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
2024 ADJUSTED FREE CASH FLOW OUTLOOK (In millions) |
|||||||||
|
|
Fiscal Year 2024 |
|||||||
|
|
Low |
|
High |
|||||
Net cash, cash equivalents and restricted cash provided by operating activities |
|
$ |
239 |
|
|
$ |
256 |
|
|
Capital expenditures for property and equipment (excluding inventory) |
|
|
(70 |
) |
|
|
(75 |
) |
|
Borrowings from securitizations, net of repayments |
|
|
45 |
|
|
|
60 |
|
|
Securitized debt issuance costs |
|
|
(11 |
) |
|
|
(12 |
) |
|
Free cash flow* |
|
|
203 |
|
|
|
229 |
|
|
Adjustments: |
|
|
|
|
|||||
Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1) |
|
|
65 |
|
|
|
79 |
|
|
Certain items(2) |
|
|
32 |
|
|
|
32 |
|
|
Adjusted free cash flow* |
|
$ |
300 |
|
|
$ |
340 |
|
|
(1) Represents the anticipated net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2023 and 2024 year ends. |
|||||||||
(2) Certain items adjustment consists primarily of the after-tax impact of transaction and integration costs and anticipated litigation charges. |
|||||||||
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. |
A-12 |
|||||||||||||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION
QUARTERLY OPERATING METRICS (Contract sales in millions) |
|||||||||||||||||||||||||
|
Year |
|
Quarter Ended |
|
Full Year |
||||||||||||||||||||
|
|
March 31 |
|
June 30 |
|
September 30 |
|
December 31 |
|
||||||||||||||||
Vacation Ownership |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consolidated contract sales |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
2024 |
|
$ |
428 |
|
$ |
449 |
|
|
|
|
|
|
||||||||||||
|
2023 |
|
$ |
434 |
|
$ |
453 |
|
$ |
438 |
|
$ |
447 |
|
$ |
1,772 |
|||||||||
|
2022 |
|
$ |
394 |
|
$ |
506 |
|
$ |
483 |
|
$ |
454 |
|
$ |
1,837 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
VPG |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
2024 |
|
$ |
4,129 |
|
$ |
3,741 |
|
|
|
|
|
|
||||||||||||
|
2023 |
|
$ |
4,358 |
|
$ |
3,968 |
|
$ |
4,055 |
|
$ |
4,002 |
|
$ |
4,088 |
|||||||||
|
2022 |
|
$ |
4,706 |
|
$ |
4,613 |
|
$ |
4,353 |
|
$ |
4,088 |
|
$ |
4,421 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Tours |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
2024 |
|
|
96,579 |
|
|
111,752 |
|
|
|
|
|
|
||||||||||||
|
2023 |
|
|
92,890 |
|
|
106,746 |
|
|
100,609 |
|
|
105,580 |
|
|
405,825 |
|||||||||
|
2022 |
|
|
78,505 |
|
|
102,857 |
|
|
104,000 |
|
|
105,231 |
|
|
390,593 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Exchange & Third-Party Management |
|
|
|
|
|
|
|
|
|||||||||||||||||
Total active Interval International members (000's)(1) |
|
|
|
|
|
|
|||||||||||||||||||
|
2024 |
|
|
1,566 |
|
|
1,530 |
|
|
|
|
|
|
||||||||||||
|
2023 |
|
|
1,568 |
|
|
1,566 |
|
|
1,571 |
|
|
1,564 |
|
|
1,564 |
|||||||||
|
2022 |
|
|
1,606 |
|
|
1,596 |
|
|
1,591 |
|
|
1,566 |
|
|
1,566 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average revenue per Interval International member |
|
|
|
|
|
|
|||||||||||||||||||
|
2024 |
|
$ |
41.74 |
|
$ |
38.30 |
|
|
|
|
|
|
||||||||||||
|
2023 |
|
$ |
42.07 |
|
$ |
39.30 |
|
$ |
39.15 |
|
$ |
36.16 |
|
$ |
156.65 |
|||||||||
|
2022 |
|
$ |
44.33 |
|
$ |
38.79 |
|
$ |
38.91 |
|
$ |
35.60 |
|
$ |
157.97 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) Includes members at the end of each period. |
A-13
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common stockholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.
Certain Items Excluded from Non-GAAP Financial Measures
We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies.
Adjusted Development Profit and Adjusted Development Profit Margin
We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin.
Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common stockholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to stockholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies.
Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin
We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations before the impact of excluded items.
Free Cash Flow and Adjusted Free Cash Flow
We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729768009/en/
Neal Goldner
Investor Relations
407-206-6149
neal.goldner@mvwc.com
Cameron Klaus
Global Communications
407-513-6606
cameron.klaus@mvwc.com
Source: Marriott Vacations Worldwide Corporation
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