ORLANDO, Fla.–(BUSINESS WIRE)–Marriott Vacations Worldwide Corporation (NYSE: VAC) (the “Company”) reported first quarter 2023 financial results.
First Quarter 2023 Highlights
- Consolidated Vacation Ownership contract sales were $434 million, a 10% increase compared to the first quarter of 2022, and VPG was $4,358.
- Net income attributable to common shareholders was $87 million compared to $58 million in the prior year, and fully diluted earnings per share increased 67% to $2.06.
- Adjusted net income attributable to common shareholders was $109 million compared to $81 million in the prior year, and adjusted fully diluted earnings per share increased 49% to $2.54.
- Adjusted EBITDA increased 8% compared to the prior year to $203 million.
- The Company returned $134 million to shareholders, repurchasing 522,000 shares of its common stock for $80 million and paying two quarterly dividends totaling $54 million.
“We started the year on a strong note, growing contract sales by 10% in the first quarter and Adjusted EBITDA by 8%, illustrating the resilience of our leisure focused business model,” said John Geller, president and chief executive officer. “Consumers continue to prioritize travel, which we’re seeing in our occupancies, Abound by Marriott Vacations is generating excitement among our existing owners and first time buyers, and we are making investments in our business to support our long term growth.”
Vacation Ownership
Revenues excluding cost reimbursements increased 16% in the first quarter of 2023 compared to the prior year, reflecting growth in all lines of businesses.
Segment financial results attributable to common shareholders were $205 million in the first quarter of 2023 compared to $173 million in the prior year and Segment margin was 28%. Segment Adjusted EBITDA was $229 million compared to $199 million in the prior year, and Adjusted EBITDA margin remained strong at more than 31%.
Exchange & Third-Party Management
Revenues excluding cost reimbursements decreased 12% in the first quarter of 2023 compared to the prior year and decreased 2% excluding the sale of VRI Americas in April of 2022, primarily due to lower Getaways. Interval International active members decreased 2% compared to the prior year to 1.6 million but were in-line with the fourth quarter of 2022, and Average revenue per member decreased 5% year-over-year.
Segment financial results attributable to common shareholders were $28 million in the first quarter of 2023, Segment margin was 42% and Segment Adjusted EBITDA was $37 million. Excluding the VRI Americas business, Segment Adjusted EBITDA decreased $4 million compared to the prior year primarily due to lower Getaway and membership revenue and Adjusted EBITDA margin was 56%.
Corporate and Other
General and administrative costs increased $7 million in the first quarter of 2023 compared to the prior year primarily as a result of our Vacation Next program and new product development initiatives, partially offset by lower bonus expense.
Balance Sheet and Liquidity
The Company ended the quarter with approximately $1.0 billion in liquidity, including $306 million of cash and cash equivalents, $120 million of gross notes receivable that were eligible for securitization, and $549 million of available capacity under its revolving corporate credit facility.
At the end of the first quarter of 2023, the Company had $3.1 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.
On April 13, 2023, the Company completed its first timeshare receivable securitization of 2023, issuing $380 million of notes. The transaction was structured with a gross advance rate of 98% and a weighted average interest rate of 5.52%, including $11 million of Class D Notes retained by the Company.
Full Year 2023 Outlook
The Company is providing its full year 2023 outlook as reflected in the chart below. The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company.
In the table 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.
|
(in millions, except per share amounts) |
2023 Guidance |
||
|
Contract sales |
$1,930 |
to |
$2,000 |
|
Net income attributable to common shareholders |
$410 |
to |
$445 |
|
Earnings per share – diluted |
$9.70 |
to |
$10.49 |
|
Net cash, cash equivalents and restricted cash provided by operating activities |
$382 |
to |
$397 |
|
Adjusted EBITDA* |
$950 |
to |
$1,000 |
|
Adjusted earnings per share – diluted* |
$11.05 |
to |
$11.85 |
|
Adjusted free cash flow* |
$600 |
to |
$670 |
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 U.S. Securities and Exchange Commission.
First Quarter 2023 Financial Results Conference Call
The Company will hold a conference call on May 4, 2023 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 over 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.
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 future growth and projections for full year 2023. 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: the effects of the COVID-19 pandemic or future health crises, including their short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following a future health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price and wage inflation; global supply chain disruptions; volatility in the international and national economy and credit markets; impact of the current or a future banking crisis; the ongoing war between Russia and Ukraine and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of rising interest rates; political or social strife; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws 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, 2023 |
|
|
|
|
|
TABLE OF CONTENTS |
|
|
Summary Financial Information and Adjusted EBITDA Summary |
A-1 |
|
Interim Consolidated Statements of Income |
A-2 |
|
Revenues and Profit by Segment |
A-3 |
|
Consolidated Contract Sales to Adjusted Development Profit |
A-5 |
|
Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share – Diluted |
A-6 |
|
Adjusted EBITDA |
A-7 |
|
Segment Adjusted EBITDA – Vacation Ownership and Exchange & Third-Party Management |
A-8 |
|
Interim Consolidated Balance Sheets |
A-9 |
|
Interim Consolidated Statements of Cash Flows |
A-10 |
|
2023 Outlook |
|
|
Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share – Diluted and Adjusted EBITDA |
A-12 |
|
Adjusted Free Cash Flow |
A-13 |
|
Quarterly Operating Metrics |
A-14 |
|
Non-GAAP Financial Measures |
A-15 |
|
A-1 |
|||||||
|
|
|||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except VPG, tours, total active members, average revenue per member and per share amounts) (Unaudited) |
|||||||
|
|
|||||||
|
SUMMARY FINANCIAL INFORMATION |
|||||||
|
|
Three Months Ended |
|
Change % |
||||
|
|
March 31, 2023 |
|
March 31, 2022 |
|
|||
|
Key Measures |
|
|
|
|
|
||
|
Total consolidated contract sales |
$ |
434 |
|
$ |
394 |
|
10% |
|
VPG |
$ |
4,358 |
|
$ |
4,706 |
|
(7%) |
|
Tours |
|
92,890 |
|
|
78,505 |
|
18% |
|
Total active members (000’s)(1) |
|
1,568 |
|
|
1,606 |
|
(2%) |
|
Average revenue per member(1) |
$ |
42.07 |
|
$ |
44.33 |
|
(5%) |
|
|
|
|
|
|
|
||
|
GAAP Measures |
|
|
|
|
|
||
|
Revenues |
$ |
1,169 |
|
$ |
1,052 |
|
11% |
|
Income before income taxes and noncontrolling interests |
$ |
128 |
|
$ |
90 |
|
43% |
|
Net income attributable to common shareholders |
$ |
87 |
|
$ |
58 |
|
50% |
|
Earnings per share – diluted |
$ |
2.06 |
|
$ |
1.23 |
|
67% |
|
|
|
|
|
|
|
||
|
Non-GAAP Measures* |
|
|
|
|
|
||
|
Adjusted EBITDA |
$ |
203 |
|
$ |
188 |
|
8% |
|
Adjusted pretax income |
$ |
130 |
|
$ |
120 |
|
8% |
|
Adjusted net income attributable to common shareholders |
$ |
109 |
|
$ |
81 |
|
35% |
|
Adjusted earnings per share – diluted |
$ |
2.54 |
|
$ |
1.70 |
|
49% |
|
|
|
|
|
|
|
||
|
(1) Includes members at the end of each period for the Interval International exchange network only. |
|||||||
|
* 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 SUMMARY |
|||||||
|
|
Three Months Ended |
|
Change % |
||||
|
|
March 31, 2023 |
|
March 31, 2022 |
|
|||
|
Adjusted EBITDA* |
$ |
203 |
|
$ |
188 |
|
8% |
|
Vacation Ownership Segment* |
$ |
229 |
|
$ |
199 |
|
15% |
|
Exchange & Third-Party Management Segment* |
$ |
37 |
|
$ |
43 |
|
(13%) |
|
|
|
|
|
|
|
||
|
* 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, 2023 |
|
March 31, 2022 |
||||
|
REVENUES |
|
|
|
||||
|
Sale of vacation ownership products |
$ |
375 |
|
|
$ |
310 |
|
|
Management and exchange |
|
200 |
|
|
|
222 |
|
|
Rental |
|
151 |
|
|
|
133 |
|
|
Financing |
|
78 |
|
|
|
71 |
|
|
Cost reimbursements |
|
365 |
|
|
|
316 |
|
|
TOTAL REVENUES |
|
1,169 |
|
|
|
1,052 |
|
|
EXPENSES |
|
|
|
||||
|
Cost of vacation ownership products |
|
58 |
|
|
|
60 |
|
|
Marketing and sales |
|
210 |
|
|
|
182 |
|
|
Management and exchange |
|
107 |
|
|
|
127 |
|
|
Rental |
|
113 |
|
|
|
81 |
|
|
Financing |
|
26 |
|
|
|
21 |
|
|
General and administrative |
|
68 |
|
|
|
61 |
|
|
Depreciation and amortization |
|
32 |
|
|
|
33 |
|
|
Litigation charges |
|
3 |
|
|
|
3 |
|
|
Royalty fee |
|
29 |
|
|
|
27 |
|
|
Impairment |
|
4 |
|
|
|
— |
|
|
Cost reimbursements |
|
365 |
|
|
|
316 |
|
|
TOTAL EXPENSES |
|
1,015 |
|
|
|
911 |
|
|
Gains and other income, net |
|
21 |
|
|
|
4 |
|
|
Interest expense, net |
|
(34 |
) |
|
|
(27 |
) |
|
Transaction and integration costs |
|
(13 |
) |
|
|
(28 |
) |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
128 |
|
|
|
90 |
|
|
Provision for income taxes |
|
(41 |
) |
|
|
(32 |
) |
|
NET INCOME |
|
87 |
|
|
|
58 |
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
|
— |
|
|
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
87 |
|
|
$ |
58 |
|
|
|
|
|
|
||||
|
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS |
|
|
|
||||
|
Basic |
$ |
2.32 |
|
|
$ |
1.36 |
|
|
Diluted |
$ |
2.06 |
|
|
$ |
1.23 |
|
|
A-3 |
|||||||||||||||
|
|
|||||||||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended March 31, 2023 (In millions) (Unaudited) |
|||||||||||||||
|
|
Reportable Segment |
|
Corporate and Other |
|
Total |
||||||||||
|
|
Vacation Ownership |
|
Exchange & Third-Party Management |
|
|
||||||||||
|
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 AND NONCONTROLLING INTERESTS |
|
205 |
|
|
|
28 |
|
|
|
(105 |
) |
|
|
128 |
|
|
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 COMMON SHAREHOLDERS |
$ |
205 |
|
|
$ |
28 |
|
|
$ |
(146 |
) |
|
$ |
87 |
|
|
SEGMENT MARGIN(2) |
28% |
|
42% |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
(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 shareholders 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, 2022 (In millions) (Unaudited) |
|||||||||||||||
|
|
Reportable Segment |
|
Corporate and Other |
|
Total |
||||||||||
|
|
Vacation Ownership |
|
Exchange & Third-Party Management |
|
|
||||||||||
|
REVENUES |
|
|
|
|
|
|
|
||||||||
|
Sales of vacation ownership products |
$ |
310 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
310 |
|
|
Management and exchange(1) |
|
|
|
|
|
|
|
||||||||
|
Ancillary revenues |
|
54 |
|
|
|
1 |
|
|
|
— |
|
|
|
55 |
|
|
Management fee revenues |
|
42 |
|
|
|
10 |
|
|
|
(3 |
) |
|
|
49 |
|
|
Exchange and other services revenues |
|
30 |
|
|
|
53 |
|
|
|
35 |
|
|
|
118 |
|
|
Management and exchange |
|
126 |
|
|
|
64 |
|
|
|
32 |
|
|
|
222 |
|
|
Rental |
|
122 |
|
|
|
11 |
|
|
|
— |
|
|
|
133 |
|
|
Financing |
|
71 |
|
|
|
— |
|
|
|
— |
|
|
|
71 |
|
|
Cost reimbursements(1) |
|
327 |
|
|
|
9 |
|
|
|
(20 |
) |
|
|
316 |
|
|
TOTAL REVENUES |
$ |
956 |
|
|
$ |
84 |
|
|
$ |
12 |
|
|
$ |
1,052 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
PROFIT |
|
|
|
|
|
|
|
||||||||
|
Development |
$ |
68 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
68 |
|
|
Management and exchange(1) |
|
72 |
|
|
|
31 |
|
|
|
(8 |
) |
|
|
95 |
|
|
Rental(1) |
|
32 |
|
|
|
11 |
|
|
|
9 |
|
|
|
52 |
|
|
Financing |
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
TOTAL PROFIT |
|
222 |
|
|
|
42 |
|
|
|
1 |
|
|
|
265 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER |
|
|
|
|
|
|
|
||||||||
|
General and administrative |
|
— |
|
|
|
— |
|
|
|
(61 |
) |
|
|
(61 |
) |
|
Depreciation and amortization |
|
(22 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
|
(33 |
) |
|
Litigation charges |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
Royalty fee |
|
(27 |
) |
|
|
— |
|
|
|
— |
|
|
|
(27 |
) |
|
Gains and other income, net |
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
4 |
|
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
(27 |
) |
|
|
(27 |
) |
|
Transaction and integration costs |
|
— |
|
|
|
— |
|
|
|
(28 |
) |
|
|
(28 |
) |
|
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS |
|
173 |
|
|
|
33 |
|
|
|
(116 |
) |
|
|
90 |
|
|
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
(32 |
) |
|
|
(32 |
) |
|
NET INCOME (LOSS) |
|
173 |
|
|
|
33 |
|
|
|
(148 |
) |
|
|
58 |
|
|
Net income attributable to noncontrolling interests(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
173 |
|
|
$ |
33 |
|
|
$ |
(148 |
) |
|
$ |
58 |
|
|
SEGMENT MARGIN(2) |
27% |
|
45% |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
(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 shareholders 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, 2023 |
March 31, 2022 |
|||||
|
Consolidated contract sales |
$ |
434 |
|
|
$ |
394 |
|
|
Less resales contract sales |
|
(11 |
) |
|
|
(9 |
) |
|
Consolidated contract sales, net of resales |
|
423 |
|
|
|
385 |
|
|
Plus: |
|
|
|
||||
|
Settlement revenue |
|
8 |
|
|
|
7 |
|
|
Resales revenue |
|
6 |
|
|
|
4 |
|
|
Revenue recognition adjustments: |
|
|
|
||||
|
Reportability |
|
— |
|
|
|
(33 |
) |
|
Sales reserve |
|
(38 |
) |
|
|
(29 |
) |
|
Other(1) |
|
(24 |
) |
|
|
(24 |
) |
|
Sale of vacation ownership products |
|
375 |
|
|
|
310 |
|
|
Less: |
|
|
|
||||
|
Cost of vacation ownership products |
|
(58 |
) |
|
|
(60 |
) |
|
Marketing and sales |
|
(210 |
) |
|
|
(182 |
) |
|
Development profit |
|
107 |
|
|
|
68 |
|
|
Revenue recognition reportability adjustment |
|
— |
|
|
|
24 |
|
|
Purchase accounting adjustments |
|
2 |
|
|
|
4 |
|
|
Adjusted development profit* |
$ |
109 |
|
|
$ |
96 |
|
|
Development profit margin |
28.5% |
|
21.8% |
||||
|
Adjusted development profit margin* |
29.2% |
|
28.3% |
||||
|
|
|
|
|
||||
|
(1) 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 SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE – DILUTED (In millions, except per share amounts) (Unaudited) |
|||||||
|
|
Three Months Ended |
||||||
|
|
March 31, 2023 |
|
March 31, 2022 |
||||
|
Net income attributable to common shareholders |
$ |
87 |
|
|
$ |
58 |
|
|
Provision for income taxes |
|
41 |
|
|
|
32 |
|
|
Income before income taxes attributable to common shareholders |
|
128 |
|
|
|
90 |
|
|
Certain items: |
|
|
|
||||
|
ILG integration |
|
9 |
|
|
|
25 |
|
|
Welk acquisition and integration |
|
4 |
|
|
|
3 |
|
|
Transaction and integration costs |
|
13 |
|
|
|
28 |
|
|
Early redemption of senior secured notes |
|
10 |
|
|
|
— |
|
|
Foreign currency translation |
|
(2 |
) |
|
|
(1 |
) |
|
Insurance proceeds |
|
(2 |
) |
|
|
(3 |
) |
|
Change in indemnification asset |
|
(23 |
) |
|
|
— |
|
|
Other |
|
(4 |
) |
|
|
— |
|
|
Gains and other income, net |
|
(21 |
) |
|
|
(4 |
) |
|
Purchase accounting adjustments |
|
2 |
|
|
|
3 |
|
|
Litigation charges |
|
3 |
|
|
|
3 |
|
|
Impairment |
|
4 |
|
|
|
— |
|
|
Other |
|
1 |
|
|
|
— |
|
|
Adjusted pretax income* |
|
130 |
|
|
|
120 |
|
|
Provision for income taxes |
|
(21 |
) |
|
|
(39 |
) |
|
Adjusted net income attributable to common shareholders* |
$ |
109 |
|
|
$ |
81 |
|
|
|
|
|
|
||||
|
Diluted shares |
|
44.4 |
|
|
|
47.9 |
|
|
Adjusted earnings per share – Diluted* |
$ |
2.54 |
|
|
$ |
1.70 |
|
|
|
|
|
|
||||
|
* 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 |
||||||
|
|
March 31, 2023 |
|
March 31, 2022 |
||||
|
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
87 |
|
|
$ |
58 |
|
|
Interest expense, net |
|
34 |
|
|
|
27 |
|
|
Provision for income taxes |
|
41 |
|
|
|
32 |
|
|
Depreciation and amortization |
|
32 |
|
|
|
33 |
|
|
Share-based compensation |
|
7 |
|
|
|
8 |
|
|
Certain items: |
|
|
|
||||
|
ILG integration |
|
9 |
|
|
|
25 |
|
|
Welk acquisition and integration |
|
4 |
|
|
|
3 |
|
|
Transaction and integration costs |
|
13 |
|
|
|
28 |
|
|
Early redemption of senior secured notes |
|
10 |
|
|
|
— |
|
|
Foreign currency translation |
|
(2 |
) |
|
|
(1 |
) |
|
Insurance proceeds |
|
(2 |
) |
|
|
(3 |
) |
|
Change in indemnification asset |
|
(23 |
) |
|
|
— |
|
|
Other |
|
(4 |
) |
|
|
— |
|
|
Gains and other income, net |
|
(21 |
) |
|
|
(4 |
) |
|
Purchase accounting adjustments |
|
2 |
|
|
|
3 |
|
|
Litigation charges |
|
3 |
|
|
|
3 |
|
|
Impairment |
|
4 |
|
|
|
— |
|
|
Other |
|
1 |
|
|
|
— |
|
|
ADJUSTED EBITDA* |
$ |
203 |
|
|
$ |
188 |
|
|
ADJUSTED EBITDA MARGIN* |
25% |
|
25% |
||||
|
|
|
|
|
||||
|
* 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 |
||||||
|
|
March 31, 2023 |
|
March 31, 2022 |
||||
|
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
205 |
|
|
$ |
173 |
|
|
Depreciation and amortization |
|
23 |
|
|
|
22 |
|
|
Share-based compensation |
|
1 |
|
|
|
1 |
|
|
Certain items: |
|
|
|
||||
|
Insurance proceeds |
|
(2 |
) |
|
|
(3 |
) |
|
Change in indemnification asset |
|
(3 |
) |
|
|
— |
|
|
Other |
|
(4 |
) |
|
|
— |
|
|
Gains and other income, net |
|
(9 |
) |
|
|
(3 |
) |
|
Purchase accounting adjustments |
|
2 |
|
|
|
3 |
|
|
Litigation charges |
|
3 |
|
|
|
3 |
|
|
Impairment |
|
4 |
|
|
|
— |
|
|
SEGMENT ADJUSTED EBITDA* |
$ |
229 |
|
|
$ |
199 |
|
|
SEGMENT ADJUSTED EBITDA MARGIN* |
31% |
|
32% |
||||
|
EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA |
|||||||
|
|
Three Months Ended |
||||||
|
|
March 31, 2023 |
|
March 31, 2022 |
||||
|
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
28 |
|
|
$ |
33 |
|
|
Depreciation and amortization |
|
8 |
|
|
|
9 |
|
|
Share-based compensation |
|
1 |
|
|
|
1 |
|
|
SEGMENT ADJUSTED EBITDA* |
$ |
37 |
|
|
$ |
43 |
|
|
SEGMENT ADJUSTED EBITDA MARGIN* |
56% |
|
57% |
||||
|
|
|
|
|
||||
|
* 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 INTERIM CONSOLIDATED BALANCE SHEETS (In millions, except share and per share data) |
|||||||
|
|
Unaudited |
|
|
||||
|
|
March 31, 2023 |
|
December 31, 2022 |
||||
|
ASSETS |
|
|
|
||||
|
Cash and cash equivalents |
$ |
306 |
|
|
$ |
524 |
|
|
Restricted cash (including $85 and $85 from VIEs, respectively) |
|
268 |
|
|
|
330 |
|
|
Accounts receivable, net (including $13 and $13 from VIEs, respectively) |
|
289 |
|
|
|
292 |
|
|
Vacation ownership notes receivable, net (including $1,793 and $1,792 from VIEs, respectively) |
|
2,220 |
|
|
|
2,198 |
|
|
Inventory |
|
672 |
|
|
|
660 |
|
|
Property and equipment, net |
|
1,215 |
|
|
|
1,139 |
|
|
Goodwill |
|
3,117 |
|
|
|
3,117 |
|
|
Intangibles, net |
|
898 |
|
|
|
911 |
|
|
Other (including $80 and $76 from VIEs, respectively) |
|
617 |
|
|
|
468 |
|
|
TOTAL ASSETS |
$ |
9,602 |
|
|
$ |
9,639 |
|
|
|
|
|
|
||||
|
LIABILITIES AND EQUITY |
|
|
|
||||
|
Accounts payable |
$ |
222 |
|
|
$ |
356 |
|
|
Advance deposits |
|
178 |
|
|
|
158 |
|
|
Accrued liabilities (including $3 and $5 from VIEs, respectively) |
|
334 |
|
|
|
369 |
|
|
Deferred revenue |
|
448 |
|
|
|
344 |
|
|
Payroll and benefits liability |
|
206 |
|
|
|
251 |
|
|
Deferred compensation liability |
|
147 |
|
|
|
139 |
|
|
Securitized debt, net (including $1,957 and $1,982 from VIEs, respectively) |
|
1,936 |
|
|
|
1,938 |
|
|
Debt, net |
|
3,129 |
|
|
|
3,088 |
|
|
Other |
|
183 |
|
|
|
167 |
|
|
Deferred taxes |
|
339 |
|
|
|
331 |
|
|
TOTAL LIABILITIES |
|
7,122 |
|
|
|
7,141 |
|
|
|
|
|
|
||||
|
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding |
|
— |
|
|
|
— |
|
|
Common stock — $0.01 par value; 100,000,000 shares authorized; 75,805,974 and 75,744,524 shares issued, respectively |
|
1 |
|
|
|
1 |
|
|
Treasury stock — at cost; 38,731,521 and 38,263,442 shares, respectively |
|
(2,132 |
) |
|
|
(2,054 |
) |
|
Additional paid-in capital |
|
3,937 |
|
|
|
3,941 |
|
|
Accumulated other comprehensive income |
|
18 |
|
|
|
15 |
|
|
Retained earnings |
|
654 |
|
|
|
593 |
|
|
TOTAL MVW SHAREHOLDERS’ EQUITY |
|
2,478 |
|
|
|
2,496 |
|
|
Noncontrolling interests |
|
2 |
|
|
|
2 |
|
|
TOTAL EQUITY |
|
2,480 |
|
|
|
2,498 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
9,602 |
|
|
$ |
9,639 |
|
|
|
|
|
|
||||
|
The abbreviation VIEs above means Variable Interest Entities. |
|||||||
Contacts
Neal Goldner
Investor Relations
407-206-6149
[email protected]
Cameron Klaus
Global Communications
407-513-6066
[email protected]