Marriott Vacations Worldwide Reports Third Quarter 2024 Financial Results
Marriott Vacations Worldwide (VAC) reported strong Q3 2024 results with consolidated Vacation Ownership contract sales increasing 5% to $459 million. Net income was $84 million with EPS of $2.12, while adjusted EPS reached $1.80. The company achieved Adjusted EBITDA of $198 million. Tours increased 10% to 110,557, though VPG decreased 4% to $3,888. The company completed a $445 million securitization with a 4.52% interest rate and maintains strong liquidity of $922 million. Management announced initiatives to achieve $50-$100 million in annual cost efficiencies over the next two years.
Marriott Vacations Worldwide (VAC) ha riportato risultati solidi per il terzo trimestre del 2024, con le vendite consolidate dei contratti di proprietà vacanziera in aumento del 5% a $459 milioni. Il reddito netto è stato di $84 milioni con un EPS di $2,12, mentre l'EPS justato ha raggiunto $1,80. L'azienda ha ottenuto un EBITDA giustato di $198 milioni. I tour sono aumentati del 10% a 110.557, sebbene il VPG sia diminuito del 4% a $3.888. L'azienda ha completato una cartolarizzazione di $445 milioni con un tasso d'interesse del 4,52% e mantiene una forte liquidità di $922 milioni. La direzione ha annunciato iniziative per raggiungere efficienze sui costi annuali comprese tra $50 e $100 milioni nei prossimi due anni.
Marriott Vacations Worldwide (VAC) reportó resultados sólidos para el tercer trimestre de 2024, con un aumento del 5% en las ventas consolidadas de contratos de propiedad vacacional, alcanzando $459 millones. La ganancia neta fue de $84 millones con un EPS de $2.12, mientras que el EPS ajustado alcanzó $1.80. La compañía logró un EBITDA ajustado de $198 millones. Los tours aumentaron un 10% hasta 110,557, aunque el VPG disminuyó un 4% a $3,888. La empresa completó una securitización de $445 millones con una tasa de interés del 4.52% y mantiene una sólida liquidez de $922 millones. La dirección anunció iniciativas para lograr eficiencias en costos anuales de entre $50 y $100 millones en los próximos dos años.
메리어트 휴가 월드와이드(MVAC)는 2024년 3분기 강력한 실적을 보고했으며, 통합 휴가 소유권 계약 판매가 5% 증가하여 4억 5,900만 달러에 도달했습니다. 순이익은 8,400만 달러였으며, 주당 순이익(EPS)은 $2.12였고 조정된 EPS는 $1.80에 이르렀습니다. 회사는 조정된 EBITDA 1억 9,800만 달러를 달성했습니다. 투어는 10% 증가하여 110,557건에 이르렀으나, VPG는 4% 감소하여 $3,888이 되었습니다. 회사는 4.52% 금리로 4억 4,500만 달러 규모의 유동화를 완료했으며, 9억 2,200만 달러의 강력한 유동성을 유지하고 있습니다. 경영진은 향후 2년 동안 연간 비용 효율성을 5천만 달러에서 1억 달러 사이로 달성하기 위한 계획을 발표했습니다.
Marriott Vacations Worldwide (VAC) a annoncé de solides résultats pour le troisième trimestre 2024, avec des ventes consolidées de contrats de propriété de vacances en hausse de 5 % à 459 millions de dollars. Le revenu net était de 84 millions de dollars avec un BPA de 2,12 $, tandis que le BPA ajusté a atteint 1,80 $. L'entreprise a réalisé un EBITDA ajusté de 198 millions de dollars. Les visites ont augmenté de 10 % pour atteindre 110 557, bien que le VPG ait diminué de 4 % à 3 888 $. L'entreprise a achevé une titrisation de 445 millions de dollars avec un taux d'intérêt de 4,52 % et maintient une liquidité solide de 922 millions de dollars. La direction a annoncé des initiatives visant à atteindre des économies de coûts annuelles de 50 à 100 millions de dollars au cours des deux prochaines années.
Marriott Vacations Worldwide (VAC) hat starke Ergebnisse für das 3. Quartal 2024 bekannt gegeben, wobei die konsolidierten Verkäufe von Urlaubsbesitzverträgen um 5% auf 459 Millionen Dollar gestiegen sind. Der Nettogewinn betrug 84 Millionen Dollar bei einem EPS von $2,12, während das angepasste EPS $1,80 erreichte. Das Unternehmen erzielte ein bereinigtes EBITDA von 198 Millionen Dollar. Die Touren stiegen um 10% auf 110.557, während der VPG um 4% auf $3.888 sank. Das Unternehmen schloss eine Verbriefung über 445 Millionen Dollar mit einem Zinssatz von 4,52% ab und hält eine starke Liquidität von 922 Millionen Dollar. Das Management kündigte Initiativen an, um in den nächsten zwei Jahren jährlich Kosteneinsparungen in Höhe von 50 bis 100 Millionen Dollar zu erzielen.
- Contract sales growth of 5% YoY to $459 million
- Tours increased 10% to 110,557
- Segment Adjusted EBITDA margin improved 430 bps to 30.1%
- Successful securitization of $445 million with favorable 4.52% interest rate
- Strong liquidity position of $922 million
- Planned cost efficiency program targeting $50-$100 million annual savings
- VPG declined 4% to $3,888
- Exchange & Third-Party Management revenue decreased 10%
- Interval International membership declined 2%
- Exchange segment Adjusted EBITDA margin dropped 670 bps to 43.1%
- General and administrative costs increased by $5 million
Insights
MVW's Q3 results show mixed performance with some positive indicators amid challenges. Contract sales grew 5% to
The successful securitization of
The updated guidance suggests management's cautious optimism, with contract sales projected at
The recovery from Maui wildfires impact continues to influence performance metrics. The
The share repurchase of 120,000 shares for
Third Quarter 2024 Highlights
-
Consolidated Vacation Ownership contract sales increased
5% compared to the third quarter of 2023 to$459 million -
Net income attributable to common stockholders was
$84 million $2.12 -
Adjusted net income attributable to common stockholders was
$72 million $1.80 -
Adjusted EBITDA was
$198 million - The Company updates its full-year outlook.
“Our results this quarter reflect our continued progress on enhancing the experience for our owners, members and other customers, as well as the continued recovery from last year's
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) |
September 30,
|
|
September 30,
|
|
|
|||||
Revenues excluding cost reimbursement |
$ |
766 |
|
|
$ |
671 |
|
|
|
|
Total consolidated contract sales |
$ |
459 |
|
|
$ |
438 |
|
|
|
|
VPG |
$ |
3,888 |
|
|
$ |
4,055 |
|
|
( |
|
Tours |
|
110,557 |
|
|
|
100,609 |
|
|
|
|
Segment financial results attributable to common stockholders |
$ |
205 |
|
|
$ |
149 |
|
|
|
|
Segment Adjusted EBITDA* |
$ |
231 |
|
|
$ |
173 |
|
|
|
|
Segment Adjusted EBITDA margin* |
|
|
|
|
430 bps |
|
||||
Consolidated contract sales increased year-over-year driven by higher tours. Segment Adjusted EBITDA increased compared to the prior year driven by higher development, resort management and rental profit, partially offset by lower financing profit.
Exchange & Third-Party Management
(In millions, except total active Interval International members and average revenue per member) |
Three Months Ended |
|
Change |
|
||||||
September 30,
|
|
September 30,
|
|
|
||||||
Revenues excluding cost reimbursement |
$ |
55 |
|
|
$ |
60 |
|
|
( |
|
Total active Interval International members (000's)(1) |
|
1,545 |
|
|
|
1,571 |
|
|
( |
|
Average revenue per Interval International member |
$ |
38.93 |
|
|
$ |
39.15 |
|
|
( |
|
Segment financial results attributable to common stockholders |
$ |
15 |
|
|
$ |
23 |
|
|
( |
|
Segment Adjusted EBITDA* |
$ |
23 |
|
|
$ |
30 |
|
|
( |
|
Segment Adjusted EBITDA margin* |
|
|
|
|
(670 bps) |
|
||||
(1) Includes members at the end of each period. |
||||||||||
Revenues excluding cost reimbursements and Segment Adjusted EBITDA decreased year-over-year due to lower exchange revenue at Interval International and reduced management fees at Aqua-Aston.
Corporate and Other
General and administrative costs increased
Balance Sheet and Liquidity
The Company ended the quarter with
The Company had
During the third quarter, the Company completed its second securitization of 2024, issuing
Full Year 2024 Outlook
The Company updates its 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
Third Quarter 2024 Financial Results Conference Call
The Company will hold a conference call on November 7, 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 our ability to accelerate growth and strengthen profitability and expectations for full year 2024 outlook for contract sales, results of operations and cash flows. 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 3, 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 Adjusted Earnings Per Share - Diluted |
A-6 |
||
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 % |
|
Nine Months Ended |
|
Change % |
||||||||
|
September 30,
|
|
September 30,
|
|
|
September 30,
|
|
September 30,
|
|
||||||
GAAP Measures |
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues |
$ |
1,305 |
|
$ |
1,186 |
|
|
|
$ |
3,640 |
|
$ |
3,533 |
|
|
Income before income taxes and noncontrolling interests |
$ |
118 |
|
$ |
66 |
|
|
|
$ |
247 |
|
$ |
334 |
|
( |
Net income attributable to common stockholders |
$ |
84 |
|
$ |
42 |
|
|
|
$ |
168 |
|
$ |
219 |
|
( |
Diluted shares |
|
42.1 |
|
|
43.3 |
|
( |
|
|
42.1 |
|
|
43.8 |
|
( |
Earnings per share - diluted |
$ |
2.12 |
|
$ |
1.09 |
|
|
|
$ |
4.31 |
|
$ |
5.33 |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP Measures* |
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
198 |
|
$ |
150 |
|
|
|
$ |
542 |
|
$ |
575 |
|
( |
Adjusted pretax income |
$ |
114 |
|
$ |
75 |
|
|
|
$ |
286 |
|
$ |
345 |
|
( |
Adjusted net income attributable to common stockholders |
$ |
72 |
|
$ |
48 |
|
|
|
$ |
185 |
|
$ |
247 |
|
( |
Adjusted earnings per share - diluted |
$ |
1.80 |
|
$ |
1.20 |
|
|
|
$ |
4.71 |
|
$ |
5.95 |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
||||
* 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 % |
|
Nine Months Ended |
|
Change % |
||||||||||||
|
September 30,
|
|
September 30,
|
|
|
September 30,
|
|
September 30,
|
|
||||||||||
Vacation Ownership |
$ |
231 |
|
|
$ |
173 |
|
|
|
|
$ |
624 |
|
|
$ |
647 |
|
|
( |
Exchange & Third-Party Management |
|
23 |
|
|
|
30 |
|
|
( |
|
|
80 |
|
|
|
99 |
|
|
( |
Segment Adjusted EBITDA* |
|
254 |
|
|
|
203 |
|
|
|
|
|
704 |
|
|
|
746 |
|
|
( |
General and administrative |
|
(62 |
) |
|
|
(57 |
) |
|
( |
|
|
(179 |
) |
|
|
(189 |
) |
|
|
Other |
|
6 |
|
|
|
4 |
|
|
|
|
|
17 |
|
|
|
18 |
|
|
( |
Adjusted EBITDA* |
$ |
198 |
|
|
$ |
150 |
|
|
|
|
$ |
542 |
|
|
$ |
575 |
|
|
( |
|
* 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 |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
REVENUES |
|
|
|
|
|
|
|
||||||||
Sale of vacation ownership products |
$ |
387 |
|
|
$ |
319 |
|
|
$ |
1,048 |
|
|
$ |
1,085 |
|
Management and exchange |
|
207 |
|
|
|
205 |
|
|
|
633 |
|
|
|
611 |
|
Rental |
|
151 |
|
|
|
138 |
|
|
|
462 |
|
|
|
435 |
|
Financing |
|
87 |
|
|
|
81 |
|
|
|
255 |
|
|
|
239 |
|
Cost reimbursements |
|
473 |
|
|
|
443 |
|
|
|
1,242 |
|
|
|
1,163 |
|
TOTAL REVENUES |
|
1,305 |
|
|
|
1,186 |
|
|
|
3,640 |
|
|
|
3,533 |
|
EXPENSES |
|
|
|
|
|
|
|
||||||||
Cost of vacation ownership products |
|
54 |
|
|
|
50 |
|
|
|
145 |
|
|
|
174 |
|
Marketing and sales |
|
228 |
|
|
|
202 |
|
|
|
677 |
|
|
|
618 |
|
Management and exchange |
|
123 |
|
|
|
115 |
|
|
|
358 |
|
|
|
332 |
|
Rental |
|
113 |
|
|
|
119 |
|
|
|
331 |
|
|
|
344 |
|
Financing |
|
37 |
|
|
|
30 |
|
|
|
106 |
|
|
|
81 |
|
General and administrative |
|
62 |
|
|
|
57 |
|
|
|
179 |
|
|
|
189 |
|
Depreciation and amortization |
|
36 |
|
|
|
33 |
|
|
|
109 |
|
|
|
99 |
|
Litigation charges |
|
2 |
|
|
|
2 |
|
|
|
15 |
|
|
|
7 |
|
Restructuring |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Royalty fee |
|
28 |
|
|
|
30 |
|
|
|
85 |
|
|
|
88 |
|
Impairment |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
Cost reimbursements |
|
473 |
|
|
|
443 |
|
|
|
1,242 |
|
|
|
1,163 |
|
TOTAL EXPENSES |
|
1,157 |
|
|
|
1,081 |
|
|
|
3,253 |
|
|
|
3,099 |
|
Gains and other income, net |
|
9 |
|
|
|
3 |
|
|
|
2 |
|
|
|
34 |
|
Interest expense, net |
|
(40 |
) |
|
|
(36 |
) |
|
|
(123 |
) |
|
|
(106 |
) |
Transaction and integration costs |
|
— |
|
|
|
(5 |
) |
|
|
(18 |
) |
|
|
(28 |
) |
Other |
|
1 |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
118 |
|
|
|
66 |
|
|
|
247 |
|
|
|
334 |
|
Provision for income taxes |
|
(34 |
) |
|
|
(24 |
) |
|
|
(79 |
) |
|
|
(115 |
) |
NET INCOME |
|
84 |
|
|
|
42 |
|
|
|
168 |
|
|
|
219 |
|
Net income attributable to noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
84 |
|
|
$ |
42 |
|
|
$ |
168 |
|
|
$ |
219 |
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
|
|
|
|
|
|
||||||||
Basic shares |
|
35.3 |
|
|
|
36.4 |
|
|
|
35.4 |
|
|
|
36.9 |
|
Basic |
$ |
2.38 |
|
|
$ |
1.16 |
|
|
$ |
4.74 |
|
|
$ |
5.96 |
|
Diluted shares |
|
42.1 |
|
|
|
43.3 |
|
|
|
42.1 |
|
|
|
43.8 |
|
Diluted |
$ |
2.12 |
|
|
$ |
1.09 |
|
|
$ |
4.31 |
|
|
$ |
5.33 |
|
A-3 |
|||||||||||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2024 (In millions) (Unaudited) |
|||||||||||||||
|
Reportable Segment |
|
Corporate
|
|
Total |
||||||||||
|
Vacation
|
|
Exchange &
|
|
|
||||||||||
REVENUES |
|
|
|
|
|
|
|
||||||||
Sales of vacation ownership products |
$ |
387 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
387 |
|
Management and exchange(1) |
|
|
|
|
|
|
|
||||||||
Ancillary revenues |
|
66 |
|
|
|
1 |
|
|
|
— |
|
|
|
67 |
|
Management fee revenues |
|
52 |
|
|
|
3 |
|
|
|
(1 |
) |
|
|
54 |
|
Exchange and other services revenues |
|
34 |
|
|
|
40 |
|
|
|
12 |
|
|
|
86 |
|
Management and exchange |
|
152 |
|
|
|
44 |
|
|
|
11 |
|
|
|
207 |
|
Rental |
|
140 |
|
|
|
11 |
|
|
|
— |
|
|
|
151 |
|
Financing |
|
87 |
|
|
|
— |
|
|
|
— |
|
|
|
87 |
|
Cost reimbursements(1) |
|
484 |
|
|
|
1 |
|
|
|
(12 |
) |
|
|
473 |
|
TOTAL REVENUES |
$ |
1,250 |
|
|
$ |
56 |
|
|
$ |
(1 |
) |
|
$ |
1,305 |
|
|
|
|
|
|
|
|
|
||||||||
PROFIT |
|
|
|
|
|
|
|
||||||||
Development |
$ |
105 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
105 |
|
Management and exchange(1) |
|
80 |
|
|
|
11 |
|
|
|
(7 |
) |
|
|
84 |
|
Rental(1) |
|
20 |
|
|
|
11 |
|
|
|
7 |
|
|
|
38 |
|
Financing |
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
TOTAL PROFIT |
|
255 |
|
|
|
22 |
|
|
|
— |
|
|
|
277 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
— |
|
|
|
— |
|
|
|
(62 |
) |
|
|
(62 |
) |
Depreciation and amortization |
|
(25 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(36 |
) |
Litigation charges |
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Restructuring |
|
(1 |
) |
|
|
(1 |
) |
|
|
1 |
|
|
|
(1 |
) |
Royalty fee |
|
(28 |
) |
|
|
— |
|
|
|
— |
|
|
|
(28 |
) |
Gains and other income, net |
|
4 |
|
|
|
1 |
|
|
|
4 |
|
|
|
9 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
(40 |
) |
|
|
(40 |
) |
Other |
|
2 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
1 |
|
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
205 |
|
|
|
15 |
|
|
|
(102 |
) |
|
|
118 |
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
(34 |
) |
|
|
(34 |
) |
NET INCOME (LOSS) |
|
205 |
|
|
|
15 |
|
|
|
(136 |
) |
|
|
84 |
|
Net income attributable to noncontrolling interests(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
205 |
|
|
$ |
15 |
|
|
$ |
(136 |
) |
|
$ |
84 |
|
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 September 30, 2023 (In millions) (Unaudited) |
|||||||||||||||
|
Reportable Segment |
|
Corporate
|
|
Total |
||||||||||
|
Vacation
|
|
Exchange &
|
|
|
||||||||||
REVENUES |
|
|
|
|
|
|
|
||||||||
Sales of vacation ownership products |
$ |
319 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
319 |
|
Management and exchange(1) |
|
|
|
|
|
|
|
||||||||
Ancillary revenues |
|
62 |
|
|
|
1 |
|
|
|
— |
|
|
|
63 |
|
Management fee revenues |
|
44 |
|
|
|
5 |
|
|
|
— |
|
|
|
49 |
|
Exchange and other services revenues |
|
37 |
|
|
|
44 |
|
|
|
12 |
|
|
|
93 |
|
Management and exchange |
|
143 |
|
|
|
50 |
|
|
|
12 |
|
|
|
205 |
|
Rental |
|
128 |
|
|
|
10 |
|
|
|
— |
|
|
|
138 |
|
Financing |
|
81 |
|
|
|
— |
|
|
|
— |
|
|
|
81 |
|
Cost reimbursements(1) |
|
455 |
|
|
|
4 |
|
|
|
(16 |
) |
|
|
443 |
|
TOTAL REVENUES |
$ |
1,126 |
|
|
$ |
64 |
|
|
$ |
(4 |
) |
|
$ |
1,186 |
|
|
|
|
|
|
|
|
|
||||||||
PROFIT |
|
|
|
|
|
|
|
||||||||
Development |
$ |
67 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
67 |
|
Management and exchange(1) |
|
74 |
|
|
|
19 |
|
|
|
(3 |
) |
|
|
90 |
|
Rental(1) |
|
6 |
|
|
|
10 |
|
|
|
3 |
|
|
|
19 |
|
Financing |
|
51 |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
TOTAL PROFIT |
|
198 |
|
|
|
29 |
|
|
|
— |
|
|
|
227 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
— |
|
|
|
— |
|
|
|
(57 |
) |
|
|
(57 |
) |
Depreciation and amortization |
|
(23 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(33 |
) |
Litigation charges |
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Royalty fee |
|
(30 |
) |
|
|
— |
|
|
|
— |
|
|
|
(30 |
) |
Gains (losses) and other income (expense), net |
|
7 |
|
|
|
1 |
|
|
|
(5 |
) |
|
|
3 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
(36 |
) |
|
|
(36 |
) |
Transaction and integration costs |
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(5 |
) |
Other |
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
149 |
|
|
|
23 |
|
|
|
(106 |
) |
|
|
66 |
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
(24 |
) |
|
|
(24 |
) |
NET INCOME (LOSS) |
|
149 |
|
|
|
23 |
|
|
|
(130 |
) |
|
|
42 |
|
Net income attributable to noncontrolling interests(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
149 |
|
|
$ |
23 |
|
|
$ |
(130 |
) |
|
$ |
42 |
|
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 |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
Consolidated contract sales |
$ |
459 |
|
|
$ |
438 |
|
|
$ |
1,336 |
|
|
$ |
1,325 |
|
Less resales contract sales |
|
(8 |
) |
|
|
(11 |
) |
|
|
(29 |
) |
|
|
(32 |
) |
Consolidated contract sales, net of resales |
|
451 |
|
|
|
427 |
|
|
|
1,307 |
|
|
|
1,293 |
|
Plus: |
|
|
|
|
|
|
|
||||||||
Settlement revenue |
|
9 |
|
|
|
12 |
|
|
|
27 |
|
|
|
29 |
|
Resales revenue |
|
5 |
|
|
|
6 |
|
|
|
16 |
|
|
|
18 |
|
Revenue recognition adjustments: |
|
|
|
|
|
|
|
||||||||
Reportability |
|
4 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
5 |
|
Sales reserve(1) |
|
(54 |
) |
|
|
(102 |
) |
|
|
(222 |
) |
|
|
(185 |
) |
Other(2) |
|
(28 |
) |
|
|
(24 |
) |
|
|
(76 |
) |
|
|
(75 |
) |
Sale of vacation ownership products |
|
387 |
|
|
|
319 |
|
|
|
1,048 |
|
|
|
1,085 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Cost of vacation ownership products |
|
(54 |
) |
|
|
(50 |
) |
|
|
(145 |
) |
|
|
(174 |
) |
Marketing and sales |
|
(228 |
) |
|
|
(202 |
) |
|
|
(677 |
) |
|
|
(618 |
) |
Development Profit |
|
105 |
|
|
|
67 |
|
|
|
226 |
|
|
|
293 |
|
Revenue recognition reportability adjustment |
|
(3 |
) |
|
|
— |
|
|
|
3 |
|
|
|
(3 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
6 |
|
Adjusted development profit* |
$ |
102 |
|
|
$ |
69 |
|
|
$ |
230 |
|
|
$ |
296 |
|
Development profit margin |
|
|
|
|
|
|
|
||||||||
Adjusted development profit margin* |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
(1) Reflects increases in the Company’s sales reserve of |
|||||||||||||||
(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 |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
Net income attributable to common stockholders |
$ |
84 |
|
|
$ |
42 |
|
|
$ |
168 |
|
|
$ |
219 |
|
Provision for income taxes |
|
34 |
|
|
|
24 |
|
|
|
79 |
|
|
|
115 |
|
Income before income taxes attributable to common stockholders |
|
118 |
|
|
|
66 |
|
|
|
247 |
|
|
|
334 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
ILG integration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Welk acquisition and integration |
|
— |
|
|
|
5 |
|
|
|
18 |
|
|
|
13 |
|
Transaction and integration costs |
|
— |
|
|
|
5 |
|
|
|
18 |
|
|
|
28 |
|
Early redemption of senior secured notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Gain on disposition of hotel, land and other |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
Foreign currency translation |
|
(6 |
) |
|
|
5 |
|
|
|
— |
|
|
|
1 |
|
Insurance proceeds |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(3 |
) |
Change in indemnification asset |
|
2 |
|
|
|
(6 |
) |
|
|
4 |
|
|
|
(30 |
) |
Change in estimates relating to pre-acquisition contingencies |
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Gains and other income, net |
|
(9 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(34 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
6 |
|
Litigation charges |
|
2 |
|
|
|
2 |
|
|
|
15 |
|
|
|
7 |
|
Restructuring charges |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Impairment charges |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
Other |
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
Adjusted pretax income* |
|
114 |
|
|
|
75 |
|
|
|
286 |
|
|
|
345 |
|
Provision for income taxes |
|
(42 |
) |
|
|
(27 |
) |
|
|
(101 |
) |
|
|
(98 |
) |
Adjusted net income attributable to common stockholders* |
$ |
72 |
|
|
$ |
48 |
|
|
$ |
185 |
|
|
$ |
247 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares |
|
42.1 |
|
|
|
43.3 |
|
|
|
42.1 |
|
|
|
43.8 |
|
Adjusted earnings per share - Diluted* |
$ |
1.80 |
|
|
$ |
1.20 |
|
|
$ |
4.71 |
|
|
$ |
5.95 |
|
|
|
|
|
|
|
|
|
||||||||
* 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 |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
Net income attributable to common stockholders |
$ |
84 |
|
|
$ |
42 |
|
|
$ |
168 |
|
|
$ |
219 |
|
Interest expense, net |
|
40 |
|
|
|
36 |
|
|
|
123 |
|
|
|
106 |
|
Provision for income taxes |
|
34 |
|
|
|
24 |
|
|
|
79 |
|
|
|
115 |
|
Depreciation and amortization |
|
36 |
|
|
|
33 |
|
|
|
109 |
|
|
|
99 |
|
Share-based compensation |
|
8 |
|
|
|
6 |
|
|
|
24 |
|
|
|
25 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
ILG integration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Welk acquisition and integration |
|
— |
|
|
|
5 |
|
|
|
18 |
|
|
|
13 |
|
Transaction and integration costs |
|
— |
|
|
|
5 |
|
|
|
18 |
|
|
|
28 |
|
Early redemption of senior secured notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Gain on disposition of hotel, land and other |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
Foreign currency translation |
|
(6 |
) |
|
|
5 |
|
|
|
— |
|
|
|
1 |
|
Insurance proceeds |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(3 |
) |
Change in indemnification asset |
|
2 |
|
|
|
(6 |
) |
|
|
4 |
|
|
|
(30 |
) |
Change in estimates relating to pre-acquisition contingencies |
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Gains and other income, net |
|
(9 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(34 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
6 |
|
Litigation charges |
|
2 |
|
|
|
2 |
|
|
|
15 |
|
|
|
7 |
|
Restructuring charges |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Impairment charges |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
Other |
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
Adjusted EBITDA* |
$ |
198 |
|
|
$ |
150 |
|
|
$ |
542 |
|
|
$ |
575 |
|
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 |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
Segment financial results attributable to common stockholders |
$ |
205 |
|
|
$ |
149 |
|
|
$ |
531 |
|
|
$ |
578 |
|
Depreciation and amortization |
|
25 |
|
|
|
23 |
|
|
|
75 |
|
|
|
69 |
|
Share-based compensation |
|
2 |
|
|
|
2 |
|
|
|
6 |
|
|
|
6 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
Gain on disposition of hotel, land and other |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(7 |
) |
Insurance proceeds |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(3 |
) |
Change in indemnification asset |
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(9 |
) |
Change in estimates relating to pre-acquisition contingencies |
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Gains and other income, net |
|
(4 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(23 |
) |
Purchase accounting adjustments |
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
6 |
|
Litigation charges |
|
2 |
|
|
|
2 |
|
|
|
15 |
|
|
|
8 |
|
Restructuring charges |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Impairment charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Other |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(1 |
) |
Segment Adjusted EBITDA* |
$ |
231 |
|
|
$ |
173 |
|
|
$ |
624 |
|
|
$ |
647 |
|
Segment Adjusted EBITDA Margin* |
|
|
|
|
|
|
|
||||||||
EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
Segment financial results attributable to common stockholders |
$ |
15 |
|
|
$ |
23 |
|
|
$ |
55 |
|
|
$ |
75 |
|
Depreciation and amortization |
|
7 |
|
|
|
7 |
|
|
|
21 |
|
|
|
23 |
|
Share-based compensation |
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Certain items: |
|
|
|
|
|
|
|
||||||||
Gain on disposition of hotel, land and other |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Restructuring charges |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Impairment charges |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Other |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Segment Adjusted EBITDA* |
$ |
23 |
|
|
$ |
30 |
|
|
$ |
80 |
|
|
$ |
99 |
|
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 |
|||||
|
September 30, 2024 |
|
December 31, 2023 |
||
Cash and cash equivalents |
$ |
197 |
|
$ |
248 |
Vacation ownership notes receivable, net |
$ |
2,387 |
|
$ |
2,343 |
Inventory |
$ |
769 |
|
$ |
634 |
Property and equipment, net(1) |
$ |
1,165 |
|
$ |
1,260 |
Goodwill |
$ |
3,117 |
|
$ |
3,117 |
Intangibles, net |
$ |
807 |
|
$ |
854 |
Debt, net |
$ |
3,038 |
|
$ |
3,049 |
Stockholders’ equity |
$ |
2,419 |
|
$ |
2,382 |
(1) Includes |
SUMMARY CASH FLOW
|
Nine Months Ended |
||||||
CASH FLOW |
September 30, 2024 |
|
September 30, 2023 |
||||
Cash, cash equivalents, and restricted cash provided by (used in): |
|
|
|
||||
Operating activities |
$ |
105 |
|
|
$ |
149 |
|
Investing activities |
|
(106 |
) |
|
|
(85 |
) |
Financing activities |
|
(26 |
) |
|
|
(414 |
) |
Effect of changes in exchange rates on cash, cash equivalents, and restricted cash |
|
— |
|
|
|
(1 |
) |
Net change in cash, cash equivalents, and restricted cash |
$ |
(27 |
) |
|
$ |
(351 |
) |
|
|
|
|
||||
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 |
$ |
225 |
|
|
$ |
240 |
|
Provision for income taxes |
|
93 |
|
|
|
98 |
|
Income before income taxes attributable to common stockholders |
|
318 |
|
|
|
338 |
|
Certain items(1) |
|
42 |
|
|
|
42 |
|
Adjusted pretax income* |
|
360 |
|
|
|
380 |
|
Provision for income taxes |
|
(124 |
) |
|
|
(129 |
) |
Adjusted net income attributable to common stockholders* |
$ |
236 |
|
|
$ |
251 |
|
Earnings per share - Diluted(2)(3) |
$ |
5.80 |
|
|
$ |
6.15 |
|
Adjusted earnings per share - Diluted(2)(3)* |
$ |
6.05 |
|
|
$ |
6.40 |
|
Diluted shares(2) |
|
42.2 |
|
|
|
42.2 |
|
2024 ADJUSTED EBITDA OUTLOOK |
|||||
|
Fiscal Year 2024 |
||||
|
Low |
|
High |
||
Net income attributable to common stockholders |
$ |
225 |
|
$ |
240 |
Interest expense |
|
162 |
|
|
162 |
Provision for income taxes |
|
93 |
|
|
98 |
Depreciation and amortization |
|
146 |
|
|
146 |
Share-based compensation |
|
32 |
|
|
32 |
Certain items(1) |
|
42 |
|
|
42 |
Adjusted EBITDA* |
$ |
700 |
|
$ |
720 |
(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 |
|
$ |
233 |
|
|
$ |
262 |
|
Capital expenditures for property and equipment (excluding inventory) |
|
|
(60 |
) |
|
|
(65 |
) |
Borrowings from securitizations, net of repayments |
|
|
63 |
|
|
|
68 |
|
Securitized debt issuance costs |
|
|
(12 |
) |
|
|
(12 |
) |
Free cash flow* |
|
|
224 |
|
|
|
253 |
|
Adjustments: |
|
|
|
|
||||
Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1) |
|
|
44 |
|
|
|
55 |
|
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 |
|
$ |
459 |
|
|
|
|
||
|
2023 |
|
$ |
434 |
|
$ |
453 |
|
$ |
438 |
|
$ |
447 |
|
$ |
1,772 |
|
2022 |
|
$ |
394 |
|
$ |
506 |
|
$ |
483 |
|
$ |
454 |
|
$ |
1,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
VPG |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
2024 |
|
$ |
4,129 |
|
$ |
3,741 |
|
$ |
3,888 |
|
|
|
|
||
|
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 |
|
|
110,557 |
|
|
|
|
||
|
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 |
|
|
1,545 |
|
|
|
|
||
|
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 |
|
$ |
38.93 |
|
|
|
|
||
|
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/20241104759270/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
FAQ
What was Marriott Vacations Worldwide's (VAC) contract sales growth in Q3 2024?
How much did VAC's tour volume increase in Q3 2024?
What is VAC's cost efficiency target for the next two years?
What was Marriott Vacations Worldwide's Q3 2024 Adjusted EBITDA?
