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 stockholders
$
182
$
205
(11%)
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.
Exchange & Third-Party Management
Three Months Ended
(In millions, except total active Interval International members
and average revenue per member)
March 31, 2024
March 31, 2023
Change
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 stockholders
$
25
$
28
(13%)
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 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
(877) 407-8289 or (201) 689-8341 for international callers. A live
webcast of the call will also be available in the Investor
Relations section of the Company's website at ir.mvwc.com. An audio
replay of the conference call will be available for 30 days on the
Company’s website.
About Marriott Vacations Worldwide Corporation Marriott
Vacations Worldwide Corporation is a leading global vacation
company that offers vacation ownership, exchange, rental and resort
and property management, along with related businesses, products,
and services. The Company has approximately 120 vacation ownership
resorts and approximately 700,000 owner families in a diverse
portfolio that includes some of the most iconic vacation ownership
brands. The Company also operates an exchange network and
membership programs comprised of more than 3,200 affiliated resorts
in over 90 countries and territories, and provides management
services to other resorts and lodging properties. As a leader and
innovator in the vacation industry, the Company upholds the highest
standards of excellence in serving its customers, investors and
associates while maintaining exclusive, long-term relationships
with Marriott International, Inc. and an affiliate of Hyatt Hotels
Corporation for the development, sales and marketing of vacation
ownership products and services. For more information, please visit
www.marriottvacationsworldwide.com.
The Company routinely posts important information, including
news releases, announcements and other statements about its
business and results of operations, that may be deemed material to
investors on the Investor Relations section of the Company’s
website, www.marriottvacationsworldwide.com. The Company uses its
website as a means of disclosing material, nonpublic information
and for complying with the Company’s disclosure obligations under
Regulation FD. Investors should monitor the Investor Relations
section of the Company’s website in addition to following the
Company’s press releases, filings with the SEC, public conference
calls and webcasts.
Note on forward-looking statements This press release and
accompanying schedules contain “forward-looking statements” within
the meaning of federal securities laws, including statements about
expectations for full year 2024 outlook for contract sales, results
of operations, 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 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
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
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 INTERESTS
81
128
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
Ownership
Exchange &
Third-Party
Management
Corporate
and Other
Total
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 AND
NONCONTROLLING INTERESTS
182
25
(126
)
81
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
COMMON STOCKHOLDERS
$
182
$
25
$
(160
)
$
47
SEGMENT MARGIN(2)
25%
39%
(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 March
31, 2023
(In millions)
(Unaudited)
Reportable Segment
Vacation
Ownership
Exchange &
Third-Party
Management
Corporate
and Other
Total
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 STOCKHOLDERS
$
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
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%
(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 STOCKHOLDERS AND
ADJUSTED EARNINGS PER SHARE -
DILUTED
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
Net income attributable to common
stockholders
$
47
$
87
Provision for income taxes
35
41
Income before income taxes attributable to
common stockholders
82
128
Certain items:
ILG integration
—
9
Welk acquisition and integration
15
4
Transaction and integration costs
15
13
Early redemption of senior secured
notes
—
10
Foreign currency translation
2
(2
)
Insurance proceeds
—
(2
)
Change in indemnification asset
(2
)
(23
)
Other
—
(4
)
Gains and other income, net
—
(21
)
Purchase accounting adjustments
1
2
Litigation charges
3
3
Restructuring charges
2
—
Impairment charges
—
4
Other
(1
)
1
Adjusted pretax income*
102
130
Provision for income taxes
(31
)
(21
)
Adjusted net income attributable to common
stockholders*
$
71
$
109
Diluted shares
42.2
44.4
Adjusted earnings per share - Diluted*
$
1.80
$
2.54
* 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, 2024
March 31, 2023
NET INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS
$
47
$
87
Interest expense, net
40
34
Provision for income taxes
35
41
Depreciation and amortization
38
32
Share-based compensation
7
7
Certain items:
ILG integration
—
9
Welk acquisition and integration
15
4
Transaction and integration costs
15
13
Early redemption of senior secured
notes
—
10
Foreign currency translation
2
(2
)
Insurance proceeds
—
(2
)
Change in indemnification asset
(2
)
(23
)
Other
—
(4
)
Gains and other income, net
—
(21
)
Purchase accounting adjustments
1
2
Litigation charges
3
3
Restructuring charges
2
—
Impairment charges
—
4
Other
(1
)
1
ADJUSTED EBITDA*
$
187
$
203
ADJUSTED EBITDA MARGIN*
23%
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, 2024
March 31, 2023
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
$
182
$
205
Depreciation and amortization
25
23
Share-based compensation
2
1
Certain items:
Insurance proceeds
—
(2
)
Change in indemnification asset
—
(3
)
Other
—
(4
)
Gains and other income, net
—
(9
)
Purchase accounting adjustments
1
2
Litigation charges
3
3
Impairment charges
—
4
SEGMENT ADJUSTED EBITDA*
$
213
$
229
SEGMENT ADJUSTED EBITDA MARGIN*
29%
31%
EXCHANGE & THIRD-PARTY
MANAGEMENT SEGMENT ADJUSTED EBITDA
Three Months Ended
March 31, 2024
March 31, 2023
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
$
25
$
28
Depreciation and amortization
7
8
Share-based compensation
—
1
SEGMENT ADJUSTED EBITDA*
$
32
$
37
SEGMENT ADJUSTED EBITDA MARGIN*
51%
56%
* 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
March 31, 2024
December 31, 2023
Cash and cash equivalents
$
237
$
248
Vacation ownership notes receivable,
net
$
2,336
$
2,343
Inventory
$
637
$
634
Property and equipment, net
$
1,299
$
1,260
Goodwill
$
3,117
$
3,117
Intangibles, net
$
839
$
854
Debt, net
$
3,111
$
3,049
Stockholders’ equity
$
2,379
$
2,382
SUMMARY CASH FLOW
Three Months Ended
CASH FLOW
March 31, 2024
March 31, 2023
Cash, cash equivalents, and restricted
cash provided by (used in):
Operating activities
$
3
$
(50
)
Investing activities
(69
)
(37
)
Financing activities
43
(194
)
Effect of changes in exchange rates on
cash, cash equivalents, and restricted cash
(1
)
1
Net change in cash, cash equivalents, and
restricted cash
$
(24
)
$
(280
)
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
$
265
$
300
Provision for income taxes
119
134
Income before income taxes attributable to
common stockholders
384
434
Certain items(1)
33
28
Adjusted pretax income*
417
462
Provision for income taxes
(122
)
(137
)
Adjusted net income attributable to common
stockholders*
$
295
$
325
Earnings per share - Diluted(2)(3)
$
6.74
$
7.57
Adjusted earnings per share -
Diluted(2)(3)*
$
7.45
$
8.16
Diluted shares(2)
42.1
42.1
2024 ADJUSTED EBITDA
OUTLOOK
Fiscal Year 2024
Low
High
Net income attributable to common
stockholders
$
265
$
300
Interest expense
163
158
Provision for income taxes
119
134
Depreciation and amortization
143
143
Share-based compensation
37
37
Certain items(1)
33
28
Adjusted EBITDA*
$
760
$
800
(1) Certain items adjustment includes $15
million to $20 million of anticipated transaction and integration
costs and $13 million of litigation and other charges.
(2) Includes 6.8 million shares from the
assumed conversion of our convertible notes.
(3) Includes an add back of $19 million of
interest expense related to our convertible notes, net of tax for
purposes of calculating net income in the diluted earnings per
share calculation.
* 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
$
235
$
276
Capital expenditures for property and
equipment (excluding inventory)
(65
)
(85
)
Borrowings from securitizations, net of
repayments
105
120
Securitized debt issuance costs
(11
)
(12
)
Free cash flow*
264
299
Adjustments:
Net change in borrowings available from
the securitization of eligible vacation ownership notes
receivable(1)
110
125
Certain items(2)
26
22
Change in restricted cash
—
4
Adjusted free cash flow*
$
400
$
450
(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 anticipated transaction and
integration costs.
* 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)
Quarter Ended
Year
March 31
June 30
September 30
December 31
Full Year
Vacation Ownership
Consolidated contract sales
2024
$
428
2023
$
434
$
453
$
438
$
447
$
1,772
2022
$
394
$
506
$
483
$
454
$
1,837
VPG
2024
$
4,129
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
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
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
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.
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/20240502666489/en/
Neal Goldner Investor Relations 407-206-6149
neal.goldner@mvwc.com
Cameron Klaus Global Communications 407-513-6606
cameron.klaus@mvwc.com
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