Neal Goldner Investor Relations 407-206-6149neal.goldner@mvwc.com
Cameron Klaus Global Communications 407-513-6606cameron.klaus@mvwc.com
Marriott Vacations Worldwide Reports
First Quarter 2024 Financial Results
ORLANDO, Fla. - May 6, 2024 - Marriott Vacations Worldwide Corporation (NYSE: VAC) ("MVW," the "Company," "we" or "our") reported first quarter 2024 financial results.
First Quarter 2024 Highlights
- Consolidated Vacation Ownership contract sales were $428 million, a 1% decrease compared to the first quarter of 2023. Excluding Maui, contract sales increased 3% compared to the prior year.
- Net income attributable to common stockholders was $47 million compared to $87 million in the prior year, and fully diluted earnings per share was $1.22.
- Adjusted net income attributable to common stockholders was $71 million compared to $109 million in the prior year, and adjusted fully diluted earnings per share was $1.80.
- Adjusted EBITDA decreased 8% compared to the prior year to $187 million.
- The Company repurchased 280 thousand shares of its common stock for $24 million and paid two quarterly dividends totaling $54 million.
- The Company reaffirms its full-year contract sales and Adjusted EBITDA guidance.
"It was great to see so many of our owners and guests spending time with their families at our resorts during the first quarter making memories that will last a lifetime," said John Geller, president and chief executive officer. "Reservations for the upcoming summer months are up over last year both domestically and internationally and travel demand for Maui is close to pre-wildfire levels, setting us up to grow contract sales 6 to 9% this year."
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 | |||||||
(In millions, except volume per guest ("VPG") and tours) | March 31, 2024 | March 31, 2023 | Change | ||||
Revenues excluding cost reimbursement | $ | 730 | $ | 729 | -% | ||
Total consolidated contract sales | $ | 428 | $ | 434 | (1%) | ||
VPG | $ | 4,129 | $ | 4,358 | (5%) | ||
Tours | 96,579 | 92,890 | 4% | ||||
Segment financial results attributable to common | $ | 182 | $ | 205 | (11%) | ||
stockholders | |||||||
Segment Adjusted EBITDA* | $ | 213 | $ | 229 | (7%) | ||
Segment Adjusted EBITDA margin* | 29% | 31% | (200 bpts) |
Contract sales declined primarily due to the impact of the Maui wildfires. Excluding Maui, contract sales increased 3%. Segment Adjusted EBITDA declined as higher Management and exchange and Rental profit were more than offset by lower Development and Financing profit.
Marriott Vacations Worldwide Reports First Quarter 2024 Financial Results / 2
Exchange & Third-Party Management
(In millions, except total active Interval International members and | Three Months Ended | |||||||
March 31, 2024 | March 31, 2023 | Change | ||||||
average revenue per member) | ||||||||
Revenues excluding cost reimbursement | $ | 63 | $ | 66 | (6%) | |||
Total active Interval International members (000's)(1) | 1,566 | 1,568 | -% | |||||
Average revenue per Interval International member | $ | 41.74 | $ | 42.07 | (1%) | |||
Segment financial results attributable to common | $ | 25 | $ | 28 | (13%) | |||
stockholders | ||||||||
Segment Adjusted EBITDA* | $ | 32 | $ | 37 | (14%) | |||
Segment Adjusted EBITDA margin* | 51% | 56% | (500 bpts) | |||||
(1) Includes members at the end of each period. |
Revenues excluding cost reimbursements decreased year-over-year, driven primarily by lower exchange volumes 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 $5 million in the first quarter of 2024 compared to the prior year.
Balance Sheet and Liquidity
The Company ended the quarter with $855 million in liquidity, including $237 million of cash and cash equivalents and $557 million of available capacity under its revolving corporate credit facility.
The Company had $3.1 billion of corporate debt and $2.2 billion of non-recourse debt related to its securitized notes receivable at the end of the first quarter.
During the quarter, the Company completed its first securitization of the year, raising $430 million at a blended interest rate of 5.48%, approximately 100 basis points below its November 2023 securitization.
In April, the Company refinanced its 2025 Term Loan, extending its maturity to 2031. The interest rate of the new term loan is SOFR plus 2.25%.
Full Year 2024 Outlook
The Company provides 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 | $1,880 | to | $1,930 |
Net income attributable to common stockholders | $265 | to | $300 |
Earnings per share - diluted | $6.74 | to | $7.57 |
Net cash, cash equivalents and restricted cash provided by operating activities | $235 | to | $276 |
Adjusted EBITDA* | $760 | to | $800 |
Adjusted earnings per share - diluted* | $7.45 | to | $8.16 |
Adjusted free cash flow* | $400 | to | $450 |
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
Marriott Vacations Worldwide Reports First Quarter 2024 Financial Results / 3
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 U.S. Securities and Exchange Commission.
First Quarter 2024 Financial Results Conference Call
The Company will hold a conference call on May 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
- 407-8289or (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, 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 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 Maui wildfires; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the ongoing conflicts between Russia and Ukraine, Israel and Gaza, and elsewhere in the world and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the
Marriott Vacations Worldwide Reports First Quarter 2024 Financial Results / 4
availability of capital to finance growth; the impact of changes in interest rates; the effects of steps we have taken and may continue to take to reduce operating costs; political or social strife; and other matters referred to under the heading "Risk Factors" in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.
Financial Schedules Follow
MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 1, 2024
TABLE OF CONTENTS
Summary Financial Information and Adjusted EBITDA by Segment
Interim Consolidated Statements of Income
Revenues and Profit by Segment
Consolidated Contract Sales to Adjusted Development Profit
Adjusted Net Income Attributable to Common Stockholders Adjusted Earnings Per Share - Diluted
Adjusted EBITDA
Segment Adjusted EBITDA Vacation Ownership
Exchange & Third-Party Management
Interim Balance Sheet Items and Summary Cash Flow
2024 Outlook
Adjusted Net Income Attributable to Common Stockholders
Adjusted Earnings Per Share - Diluted
Adjusted EBITDA
Adjusted Free Cash Flow
Quarterly Operating Metrics
Non-GAAP Financial Measures
A-1
MARRIOTT VACATIONS WORLDWIDE CORPORATION
SUMMARY FINANCIAL INFORMATION
(In millions, except per share amounts)
(Unaudited)
Three Months Ended | |||||||
March 31, 2024 | March 31, 2023 | Change % | |||||
GAAP Measures | |||||||
Revenues | $ | 1,195 | $ | 1,169 | 2% | ||
Income before income taxes and noncontrolling interests | $ | 81 | $ | 128 | (37%) | ||
Net income attributable to common stockholders | $ | 47 | $ | 87 | (46%) | ||
Diluted shares | 42.2 | 44.4 | (5%) | ||||
Earnings per share - diluted | $ | 1.22 | $ | 2.06 | (41%) | ||
Non-GAAP Measures* | |||||||
Adjusted EBITDA | $ | 187 | $ | 203 | (8%) | ||
Adjusted pretax income | $ | 102 | $ | 130 | (21%) | ||
Adjusted net income attributable to common stockholders | $ | 71 | $ | 109 | (34%) | ||
Adjusted earnings per share - diluted | $ | 1.80 | $ | 2.54 | (29%) |
- 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 | |||||||
March 31, 2024 | March 31, 2023 | Change % | |||||
Vacation Ownership | $ | 213 | $ | 229 | (7%) | ||
Exchange & Third-Party Management | 32 | 37 | (14%) | ||||
Segment Adjusted EBITDA* | 245 | 266 | (8%) | ||||
General and administrative | (63) | (68) | 8% | ||||
Other | 5 | 5 | (13%) | ||||
Adjusted EBITDA* | $ | 187 | $ | 203 | (8%) | ||
- 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 | |||||
March 31, 2024 | March 31, 2023 | ||||
REVENUES | |||||
Sale of vacation ownership products | $ | 352 | $ | 375 | |
Management and exchange | 211 | 200 | |||
Rental | 158 | 151 | |||
Financing | 83 | 78 | |||
Cost reimbursements | 391 | 365 | |||
TOTAL REVENUES | 1,195 | 1,169 | |||
EXPENSES | |||||
Cost of vacation ownership products | 53 | 58 | |||
Marketing and sales | 223 | 210 | |||
Management and exchange | 116 | 107 | |||
Rental | 107 | 113 | |||
Financing | 34 | 26 | |||
General and administrative | 63 | 68 | |||
Depreciation and amortization | 38 | 32 | |||
Litigation charges | 3 | 3 | |||
Restructuring | 2 | - | |||
Royalty fee | 28 | 29 | |||
Impairment | - | 4 | |||
Cost reimbursements | 391 | 365 | |||
TOTAL EXPENSES | 1,058 | 1,015 | |||
Gains and other income, net | - | 21 | |||
Interest expense, net | (40) | (34) | |||
Transaction and integration costs | (15) | (13) | |||
Other | (1) | - | |||
INCOME BEFORE INCOME TAXES AND NONCONTROLLING | 81 | 128 | |||
INTERESTS | |||||
Provision for income taxes | (35) | (41) | |||
NET INCOME | 46 | 87 | |||
Net loss attributable to noncontrolling interests | 1 | - | |||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 47 | $ | 87 | |
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON | |||||
STOCKHOLDERS | |||||
Basic shares | 35.5 | 37.4 | |||
Basic | $ | 1.32 | $ | 2.32 | |
Diluted shares | 42.2 | 44.4 | |||
Diluted | $ | 1.22 | $ | 2.06 |
A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT for the three months ended March 31, 2024 (In millions)
(Unaudited)
Reportable Segment | |||||||||||
Vacation | Exchange & | Corporate | |||||||||
Third-Party | Total | ||||||||||
Ownership | Management | and Other | |||||||||
REVENUES | |||||||||||
Sales of vacation ownership products | $ | 352 | $ | - | $ | - | $ | 352 | |||
Management and exchange(1) | |||||||||||
Ancillary revenues | 65 | 1 | - | 66 | |||||||
Management fee revenues | 52 | 5 | (1) | 56 | |||||||
Exchange and other services revenues | 31 | 46 | 12 | 89 | |||||||
Management and exchange | 148 | 52 | 11 | 211 | |||||||
Rental | 147 | 11 | - | 158 | |||||||
Financing | 83 | - | - | 83 | |||||||
Cost reimbursements(1) | 400 | 2 | (11) | 391 | |||||||
TOTAL REVENUES | $ | 1,130 | $ | 65 | $ | - | $ | 1,195 | |||
PROFIT | |||||||||||
Development | $ | 76 | $ | - | $ | - | $ | 76 | |||
Management and exchange(1) | 77 | 21 | (3) | 95 | |||||||
Rental(1) | 37 | 11 | 3 | 51 | |||||||
Financing | 49 | - | - | 49 | |||||||
TOTAL PROFIT | 239 | 32 | - | 271 | |||||||
OTHER | |||||||||||
General and administrative | - | - | (63) | (63) | |||||||
Depreciation and amortization | (25) | (7) | (6) | (38) | |||||||
Litigation charges | (3) | - | - | (3) | |||||||
Restructuring | - | - | (2) | (2) | |||||||
Royalty fee | (28) | - | - | (28) | |||||||
Interest expense, net | - | - | (40) | (40) | |||||||
Transaction and integration costs | - | - | (15) | (15) | |||||||
Other | (1) | - | - | (1) | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | 182 | 25 | (126) | 81 | |||||||
AND NONCONTROLLING INTERESTS | |||||||||||
Provision for income taxes | - | - | (35) | (35) | |||||||
NET INCOME (LOSS) | 182 | 25 | (161) | 46 | |||||||
Net loss attributable to noncontrolling interests(1) | - | - | 1 | 1 | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | $ | 182 | $ | 25 | $ | (160) | $ | 47 | |||
COMMON STOCKHOLDERS | |||||||||||
SEGMENT MARGIN(2) | 25% | 39% |
- 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.
- 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 March 31, 2023
(In millions) (Unaudited)
Reportable Segment | |||||||||||
Vacation | Exchange & | Corporate | |||||||||
Third-Party | and | Total | |||||||||
Ownership | Management | Other | |||||||||
REVENUES | |||||||||||
Sales of vacation ownership products | $ | 375 | $ | - | $ | - | $ | 375 | |||
Management and exchange(1) | |||||||||||
Ancillary revenues | 61 | 1 | - | 62 | |||||||
Management fee revenues | 45 | 8 | (1) | 52 | |||||||
Exchange and other services revenues | 29 | 47 | 10 | 86 | |||||||
Management and exchange | 135 | 56 | 9 | 200 | |||||||
Rental | 141 | 10 | - | 151 | |||||||
Financing | 78 | - | - | 78 | |||||||
Cost reimbursements(1) | 368 | 5 | (8) | 365 | |||||||
TOTAL REVENUES | $ | 1,097 | $ | 71 | $ | 1 | $ | 1,169 | |||
PROFIT | |||||||||||
Development | $ | 107 | $ | - | $ | - | $ | 107 | |||
Management and exchange(1) | 71 | 26 | (4) | 93 | |||||||
Rental(1) | 25 | 10 | 3 | 38 | |||||||
Financing | 52 | - | - | 52 | |||||||
TOTAL PROFIT | 255 | 36 | (1) | 290 | |||||||
OTHER | |||||||||||
General and administrative | - | - | (68) | (68) | |||||||
Depreciation and amortization | (23) | (8) | (1) | (32) | |||||||
Litigation charges | (3) | - | - | (3) | |||||||
Royalty fee | (29) | - | - | (29) | |||||||
Impairment | (4) | - | - | (4) | |||||||
Gains and other income, net | 9 | - | 12 | 21 | |||||||
Interest expense, net | - | - | (34) | (34) | |||||||
Transaction and integration costs | - | - | (13) | (13) | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | 205 | 28 | (105) | 128 | |||||||
AND NONCONTROLLING INTERESTS | |||||||||||
Provision for income taxes | - | - | (41) | (41) | |||||||
NET INCOME (LOSS) | 205 | 28 | (146) | 87 | |||||||
Net income attributable to noncontrolling | - | - | - | - | |||||||
interests(1) | |||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | $ | 205 | $ | 28 | $ | (146) | $ | 87 | |||
COMMON STOCKHOLDERS | |||||||||||
SEGMENT MARGIN(2) | |||||||||||
28% | 42% |
- 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.
- 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 | |||||
March 31, 2024 | March 31, 2023 | ||||
Consolidated contract sales | $ | 428 | $ | 434 | |
Less resales contract sales | (12) | (11) | |||
Consolidated contract sales, net of resales | 416 | 423 | |||
Plus: | |||||
Settlement revenue | 8 | 8 | |||
Resales revenue | 5 | 6 | |||
Revenue recognition adjustments: | |||||
Reportability | (9) | - | |||
Sales reserve | (46) | (38) | |||
Other(1) | (22) | (24) | |||
Sale of vacation ownership products | 352 | 375 | |||
Less: | |||||
Cost of vacation ownership products | (53) | (58) | |||
Marketing and sales | (223) | (210) | |||
Development Profit | 76 | 107 | |||
Revenue recognition reportability adjustment | 7 | - | |||
Purchase accounting adjustments | 1 | 2 | |||
Adjusted development profit* | $ | 84 | $ | 109 | |
Development profit margin | |||||
21.5% | 28.5% | ||||
Adjusted development profit margin* | 23.3% | 29.2% |
- 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.
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Marriott Vacations Worldwide Corporation published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 20:43:58 UTC.