VAC Marriott Vacations Worldwide Corporation

Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW,” the “Company,” “we” or “our”) reported second quarter 2024 financial results.

Second Quarter 2024 Highlights

• Consolidated Vacation Ownership contract sales declined 1% compared to the second quarter of 2023 to $449 million. Excluding Maui, contract sales increased 3% compared to the prior year.
• The Company recorded a $70 million increase to its sales reserve reflecting higher expected future defaults on its existing vacation ownership notes receivable portfolio.
• Net income attributable to common stockholders was $37 million compared to $90 million in the prior year, and fully diluted earnings per share was $0.98. Net income attributable to common stockholders reflects a $45 million impact of the higher sales reserve.
• Adjusted net income attributable to common stockholders was $42 million compared to $90 million in the prior year, and adjusted fully diluted earnings per share was $1.10.
• Adjusted EBITDA decreased 29% compared to the prior year to $157 million reflecting a $57 million net increase to the Company’s sales reserve.
• The Company updates its full-year outlook.

“We had a mixed second quarter, with rentals exceeding our expectations and lower VPGs negatively impacting our contract sales. In addition, we have not seen the necessary improvements in our loan delinquencies, so we increased our sales reserves to reflect higher expected defaults,” said John Geller, president and chief executive officer. “Demand for travel remains strong with our resorts running 90% occupancy in the second quarter, tours increasing 5% and owner VPG’s flat compared to last year. However, first time buyer VPGs declined versus last year and Maui is recovering slower than our original expectations. As a result, we adjusted our contract sales guidance for the second half of the 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

 

Change

 

(In millions, except volume per guest (“VPG”) and tours)

June 30, 2024

 

June 30, 2023

 

 

Revenues excluding cost reimbursement

$

694

 

 

$

753

 

 

(8%)

 

Total consolidated contract sales

$

449

 

 

$

453

 

 

(1%)

 

VPG

$

3,741

 

 

$

3,968

 

 

(6%)

 

Tours

 

111,752

 

 

 

106,746

 

 

5%

 

Segment financial results attributable to common stockholders

$

144

 

 

$

224

 

 

(36%)

 

Segment Adjusted EBITDA*

$

180

 

 

$

245

 

 

(26%)

 

Segment Adjusted EBITDA margin*

 

26.0%

 

 

32.5%

 

(650 bps)

 

Contract sales declined 1% primarily due to the impact of the Maui wildfires. Excluding Maui, contract sales increased 3%. Segment Adjusted EBITDA declined compared to the prior year driven by lower Development and Financing profit, including an increase to the Company's sales reserve, partially offset by higher Management and exchange and Rental profit.

Sales Reserve

The Company recorded a $70 million increase in its sales reserve in the second quarter resulting in a $45 million impact to Net income attributable to common stockholders and a $57 million net impact to Adjusted EBITDA.

Exchange & Third-Party Management

(In millions, except total active Interval International members and average revenue per member)

Three Months Ended

 

Change

 

June 30, 2024

 

June 30, 2023

 

 

Revenues excluding cost reimbursement

$

55

 

 

$

62

 

 

(9%)

 

Total active Interval International members (000's)(1)

 

1,530

 

 

 

1,566

 

 

(2%)

 

Average revenue per Interval International member

$

38.30

 

 

$

39.30

 

 

(3%)

 

Segment financial results attributable to common stockholders

$

15

 

 

$

24

 

 

(35%)

 

Segment Adjusted EBITDA*

$

25

 

 

$

32

 

 

(22%)

 

Segment Adjusted EBITDA margin*

 

44.3%

 

 

51.9%

 

(760 bps)

 

 

(1) Includes members at the end of each period.

 

 

 

 

 

 

Revenues excluding cost reimbursements decreased year-over-year, driven primarily by lower exchange volumes at Interval International and reduced management fees at Aqua-Aston. Segment Adjusted EBITDA declined year-over-year due to lower revenue.

Corporate and Other General and administrative costs decreased $10 million in the second quarter of 2024 compared to the prior year driven by lower IT and compensation-related costs.

Balance Sheet and Liquidity During the second quarter the Company repurchased approximately 131,000 shares of its common stock for $12 million and paid $27 million in dividends.

The Company ended the quarter with $820 million in liquidity, including $206 million of cash and cash equivalents and $543 million of available capacity under its revolving corporate credit facility. The Company had $3.1 billion of corporate debt and $2.1 billion of non-recourse debt related to its securitized vacation ownership notes receivable at the end of the second quarter.

Full Year 2024 Outlook The Company provides updated full year 2024 guidance as reflected in the chart below. The Financial schedules that follow reconcile the following full year 2024 expected GAAP results for the Company to the non-GAAP financial measures set forth below.

(in millions, except per share amounts)

2024 Guidance

Contract sales

$1,790

to

$1,825

Net income attributable to common stockholders

$195

to

$215

Earnings per share - diluted

$5.05

to

$5.55

Net cash, cash equivalents and restricted cash provided by operating activities

$239

to

$256

Adjusted EBITDA*

$685

to

$715

Adjusted earnings per share - diluted*

$5.90

to

$6.45

Adjusted free cash flow*

$300

to

$340

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.

Second Quarter 2024 Financial Results Conference Call The Company will hold a conference call on August 1, 2024 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.

About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has approximately 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.

The Company routinely posts important information, including news releases, announcements and other statements about its business and results of operations, that may be deemed material to investors on the Investor Relations section of the Company’s website, www.marriottvacationsworldwide.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Investor Relations section of the Company’s website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts.

Note on forward-looking statements This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for full year 2024 outlook for contract sales, results of operations, cash flows and future defaults on vacation ownership notes receivable. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: a future health crisis and responses to such a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price inflation; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws; the impact of a future banking crisis; impacts from natural or man-made disasters and wildfires, including the 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 2, 2024

 

TABLE OF CONTENTS

 

Summary Financial Information and Adjusted EBITDA by Segment

A-1

Interim Consolidated Statements of Income

A-2

Revenues and Profit by Segment

A-3 to A-4

Consolidated Contract Sales to Adjusted Development Profit

A-5

Adjusted Net Income Attributable to Common Stockholders

A-6

Adjusted Earnings Per Share - Diluted

Adjusted EBITDA

A-7

Segment Adjusted EBITDA

Vacation Ownership

A-8

Exchange & Third-Party Management

Interim Balance Sheet Items and Summary Cash Flow

A-9

2024 Outlook

 

Adjusted Net Income Attributable to Common Stockholders

Adjusted Earnings Per Share - Diluted

A-10

Adjusted EBITDA

Adjusted Free Cash Flow

A-11

Quarterly Operating Metrics

A-12

Non-GAAP Financial Measures

A-13

A-1

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

SUMMARY FINANCIAL INFORMATION

(In millions, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Change %

 

Six Months Ended

 

Change %

 

June 30, 2024

 

June 30, 2023

 

 

June 30, 2024

 

June 30, 2023

 

GAAP Measures

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,140

 

$

1,178

 

(3%)

 

$

2,335

 

$

2,347

 

(1%)

Income before income taxes and noncontrolling interests

$

48

 

$

140

 

(66%)

 

$

129

 

$

268

 

(52%)

Net income attributable to common stockholders

$

37

 

$

90

 

(59%)

 

$

84

 

$

177

 

(53%)

Diluted shares

 

42.2

 

 

43.8

 

(4%)

 

 

42.2

 

 

44.1

 

(4%)

Earnings per share - diluted

$

0.98

 

$

2.17

 

(55%)

 

$

2.20

 

$

4.23

 

(48%)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures*

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

157

 

$

222

 

(29%)

 

$

344

 

$

425

 

(19%)

Adjusted pretax income

$

70

 

$

140

 

(50%)

 

$

172

 

$

270

 

(36%)

Adjusted net income attributable to common stockholders

$

42

 

$

90

 

(54%)

 

$

113

 

$

199

 

(43%)

Adjusted earnings per share - diluted

$

1.10

 

$

2.19

 

(50%)

 

$

2.91

 

$

4.73

 

(38%)

 

 

 

 

 

 

 

 

 

 

 

 

* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

ADJUSTED EBITDA BY SEGMENT

(In millions)

(Unaudited)

 

 

Three Months Ended

 

Change %

 

Six Months Ended

 

Change %

 

June 30, 2024

 

June 30, 2023

 

 

June 30, 2024

 

June 30, 2023

 

Vacation Ownership

$

180

 

 

$

245

 

 

(26%)

 

$

393

 

 

$

474

 

 

(17%)

Exchange & Third-Party Management

 

25

 

 

 

32

 

 

(22%)

 

 

57

 

 

 

69

 

 

(17%)

Segment Adjusted EBITDA*

 

205

 

 

 

277

 

 

(26%)

 

 

450

 

 

 

543

 

 

(17%)

General and administrative

 

(54

)

 

 

(64

)

 

15%

 

 

(117

)

 

 

(132

)

 

11%

Other

 

6

 

 

 

9

 

 

(28%)

 

 

11

 

 

 

14

 

 

(22%)

Adjusted EBITDA*

$

157

 

 

$

222

 

 

(29%)

 

$

344

 

 

$

425

 

 

(19%)

 

* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-2

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

INTERIM CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

REVENUES

 

 

 

 

 

 

 

Sale of vacation ownership products

$

309

 

 

$

391

 

 

$

661

 

 

$

766

 

Management and exchange

 

215

 

 

 

206

 

 

 

426

 

 

 

406

 

Rental

 

153

 

 

 

146

 

 

 

311

 

 

 

297

 

Financing

 

85

 

 

 

80

 

 

 

168

 

 

 

158

 

Cost reimbursements

 

378

 

 

 

355

 

 

 

769

 

 

 

720

 

TOTAL REVENUES

 

1,140

 

 

 

1,178

 

 

 

2,335

 

 

 

2,347

 

EXPENSES

 

 

 

 

 

 

 

Cost of vacation ownership products

 

38

 

 

 

66

 

 

 

91

 

 

 

124

 

Marketing and sales

 

226

 

 

 

206

 

 

 

449

 

 

 

416

 

Management and exchange

 

119

 

 

 

110

 

 

 

235

 

 

 

217

 

Rental

 

111

 

 

 

112

 

 

 

218

 

 

 

225

 

Financing

 

35

 

 

 

25

 

 

 

69

 

 

 

51

 

General and administrative

 

54

 

 

 

64

 

 

 

117

 

 

 

132

 

Depreciation and amortization

 

35

 

 

 

34

 

 

 

73

 

 

 

66

 

Litigation charges

 

10

 

 

 

2

 

 

 

13

 

 

 

5

 

Restructuring

 

1

 

 

 

—

 

 

 

3

 

 

 

—

 

Royalty fee

 

29

 

 

 

29

 

 

 

57

 

 

 

58

 

Impairment

 

2

 

 

 

—

 

 

 

2

 

 

 

4

 

Cost reimbursements

 

378

 

 

 

355

 

 

 

769

 

 

 

720

 

TOTAL EXPENSES

 

1,038

 

 

 

1,003

 

 

 

2,096

 

 

 

2,018

 

(Losses) gains and other (expense) income, net

 

(7

)

 

 

10

 

 

 

(7

)

 

 

31

 

Interest expense, net

 

(43

)

 

 

(36

)

 

 

(83

)

 

 

(70

)

Transaction and integration costs

 

(3

)

 

 

(10

)

 

 

(18

)

 

 

(23

)

Other

 

(1

)

 

 

1

 

 

 

(2

)

 

 

1

 

INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS

 

48

 

 

 

140

 

 

 

129

 

 

 

268

 

Provision for income taxes

 

(10

)

 

 

(50

)

 

 

(45

)

 

 

(91

)

NET INCOME

 

38

 

 

 

90

 

 

 

84

 

 

 

177

 

Net income attributable to noncontrolling interests

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

37

 

 

$

90

 

 

$

84

 

 

$

177

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

 

 

 

 

 

 

Basic shares

 

35.4

 

 

 

36.9

 

 

 

35.5

 

 

 

37.1

 

Basic

$

1.04

 

 

$

2.46

 

 

$

2.36

 

 

$

4.78

 

Diluted shares

 

42.2

 

 

 

43.8

 

 

 

42.2

 

 

 

44.1

 

Diluted

$

0.98

 

 

$

2.17

 

 

$

2.20

 

 

$

4.23

 

A-3

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

REVENUES AND PROFIT BY SEGMENT

for the three months ended June 30, 2024

(In millions)

(Unaudited)

 

 

Reportable Segment

 

Corporate and Other

 

Total

 

Vacation Ownership

 

Exchange & Third-Party Management

 

 

REVENUES

 

 

 

 

 

 

 

Sales of vacation ownership products

$

309

 

 

$

—

 

 

$

—

 

 

$

309

 

Management and exchange(1)

 

 

 

 

 

 

 

Ancillary revenues

 

72

 

 

 

1

 

 

 

—

 

 

 

73

 

Management fee revenues

 

51

 

 

 

2

 

 

 

(1

)

 

 

52

 

Exchange and other services revenues

 

34

 

 

 

42

 

 

 

14

 

 

 

90

 

Management and exchange

 

157

 

 

 

45

 

 

 

13

 

 

 

215

 

Rental

 

143

 

 

 

10

 

 

 

—

 

 

 

153

 

Financing

 

85

 

 

 

—

 

 

 

—

 

 

 

85

 

Cost reimbursements(1)

 

384

 

 

 

3

 

 

 

(9

)

 

 

378

 

TOTAL REVENUES

$

1,078

 

 

$

58

 

 

$

4

 

 

$

1,140

 

 

 

 

 

 

 

 

 

PROFIT

 

 

 

 

 

 

 

Development

$

45

 

 

$

—

 

 

$

—

 

 

$

45

 

Management and exchange(1)

 

84

 

 

 

14

 

 

 

(2

)

 

 

96

 

Rental(1)

 

30

 

 

 

10

 

 

 

2

 

 

 

42

 

Financing

 

50

 

 

 

—

 

 

 

—

 

 

 

50

 

TOTAL PROFIT

 

209

 

 

 

24

 

 

 

—

 

 

 

233

 

 

 

 

 

 

 

 

 

OTHER

 

 

 

 

 

 

 

General and administrative

 

—

 

 

 

—

 

 

 

(54

)

 

 

(54

)

Depreciation and amortization

 

(25

)

 

 

(7

)

 

 

(3

)

 

 

(35

)

Litigation charges

 

(10

)

 

 

—

 

 

 

—

 

 

 

(10

)

Restructuring

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Royalty fee

 

(29

)

 

 

—

 

 

 

—

 

 

 

(29

)

Impairment

 

—

 

 

 

(2

)

 

 

—

 

 

 

(2

)

Gains (losses) and other income (expense), net

 

1

 

 

 

—

 

 

 

(8

)

 

 

(7

)

Interest expense, net

 

—

 

 

 

—

 

 

 

(43

)

 

 

(43

)

Transaction and integration costs

 

—

 

 

 

—

 

 

 

(3

)

 

 

(3

)

Other

 

(2

)

 

 

—

 

 

 

1

 

 

 

(1

)

INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS

 

144

 

 

 

15

 

 

 

(111

)

 

 

48

 

Provision for income taxes

 

—

 

 

 

—

 

 

 

(10

)

 

 

(10

)

NET INCOME (LOSS)

 

144

 

 

 

15

 

 

 

(121

)

 

 

38

 

Net income attributable to noncontrolling interests(1)

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

144

 

 

$

15

 

 

$

(122

)

 

$

37

 

SEGMENT MARGIN(2)

20.8%

 

28.1%

 

 

 

 

 

(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.

(2) Segment margin represents the applicable segment’s net income or loss attributable to common stockholders divided by the applicable segment’s total revenues less cost reimbursement revenues.

A-4

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

REVENUES AND PROFIT BY SEGMENT

for the three months ended June 30, 2023

(In millions)

(Unaudited)

 

Reportable Segment

Vacation Ownership

Exchange & Third-Party Management

Corporate and Other

Total

REVENUES

 

 

 

 

 

 

 

Sales of vacation ownership products

$

391

 

 

$

—

 

 

$

—

 

 

$

391

 

Management and exchange(1)

 

 

 

 

 

 

 

Ancillary revenues

 

70

 

 

 

1

 

 

 

—

 

 

 

71

 

Management fee revenues

 

45

 

 

 

5

 

 

 

(1

)

 

 

49

 

Exchange and other services revenues

 

32

 

 

 

45

 

 

 

9

 

 

 

86

 

Management and exchange

 

147

 

 

 

51

 

 

 

8

 

 

 

206

 

Rental

 

135

 

 

 

11

 

 

 

—

 

 

 

146

 

Financing

 

80

 

 

 

—

 

 

 

—

 

 

 

80

 

Cost reimbursements(1)

 

359

 

 

 

3

 

 

 

(7

)

 

 

355

 

TOTAL REVENUES

$

1,112

 

 

$

65

 

 

$

1

 

 

$

1,178

 

 

 

 

 

 

 

 

 

PROFIT

 

 

 

 

 

 

 

Development

$

119

 

 

$

—

 

 

$

—

 

 

$

119

 

Management and exchange(1)

 

78

 

 

 

21

 

 

 

(3

)

 

 

96

 

Rental(1)

 

19

 

 

 

11

 

 

 

4

 

 

 

34

 

Financing

 

55

 

 

 

—

 

 

 

—

 

 

 

55

 

TOTAL PROFIT

 

271

 

 

 

32

 

 

 

1

 

 

 

304

 

 

 

 

 

 

 

 

 

OTHER

 

 

 

 

 

 

 

General and administrative

 

—

 

 

 

—

 

 

 

(64

)

 

 

(64

)

Depreciation and amortization

 

(23

)

 

 

(8

)

 

 

(3

)

 

 

(34

)

Litigation charges

 

(3

)

 

 

—

 

 

 

1

 

 

 

(2

)

Royalty fee

 

(29

)

 

 

—

 

 

 

—

 

 

 

(29

)

Gains and other income, net

 

7

 

 

 

—

 

 

 

3

 

 

 

10

 

Interest expense, net

 

—

 

 

 

—

 

 

 

(36

)

 

 

(36

)

Transaction and integration costs

 

—

 

 

 

—

 

 

 

(10

)

 

 

(10

)

Other

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS

 

224

 

 

 

24

 

 

 

(108

)

 

 

140

 

Provision for income taxes

 

—

 

 

 

—

 

 

 

(50

)

 

 

(50

)

NET INCOME (LOSS)

 

224

 

 

 

24

 

 

 

(158

)

 

 

90

 

Net income attributable to noncontrolling interests(1)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

224

 

 

$

24

 

 

$

(158

)

 

$

90

 

SEGMENT MARGIN(2)

29.7%

 

39.5%

 

 

 

 

 

 

 

 

 

 

 

 

(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.

(2) Segment margin represents the applicable segment’s net income or loss attributable to common stockholders divided by the applicable segment’s total revenues less cost reimbursement revenues.

A-5

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT

(In millions)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Consolidated contract sales

$

449

 

 

$

453

 

 

$

877

 

 

$

887

 

Less resales contract sales

 

(9

)

 

 

(10

)

 

 

(21

)

 

 

(21

)

Consolidated contract sales, net of resales

 

440

 

 

 

443

 

 

 

856

 

 

 

866

 

Plus:

 

 

 

 

 

 

 

Settlement revenue

 

10

 

 

 

9

 

 

 

18

 

 

 

17

 

Resales revenue

 

6

 

 

 

6

 

 

 

11

 

 

 

12

 

Revenue recognition adjustments:

 

 

 

 

 

 

 

Reportability

 

1

 

 

 

5

 

 

 

(8

)

 

 

5

 

Sales reserve(1)

 

(122

)

 

 

(45

)

 

 

(168

)

 

 

(83

)

Other(2)

 

(26

)

 

 

(27

)

 

 

(48

)

 

 

(51

)

Sale of vacation ownership products

 

309

 

 

 

391

 

 

 

661

 

 

 

766

 

Less:

 

 

 

 

 

 

 

Cost of vacation ownership products

 

(38

)

 

 

(66

)

 

 

(91

)

 

 

(124

)

Marketing and sales

 

(226

)

 

 

(206

)

 

 

(449

)

 

 

(416

)

Development Profit

 

45

 

 

 

119

 

 

121

 

 

 

226

 

Revenue recognition reportability adjustment

 

(1

)

 

 

(3

)

 

 

6

 

 

 

(3

)

Purchase accounting adjustments

 

—

 

 

 

2

 

 

 

1

 

 

 

4

 

Adjusted development profit*

$

44

 

 

$

118

 

 

$

128

 

 

$

227

 

Development profit margin

14.7%

 

30.8%

 

18.3%

 

29.6%

Adjusted development profit margin*

14.3%

 

30.4%

 

19.2%

 

29.8%

 

 

 

 

 

 

 

 

(1) Reflects a $70 million increase in the Company’s sales reserve that was recorded in the second quarter of 2024. (2) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-6

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND

ADJUSTED EARNINGS PER SHARE - DILUTED

(In millions, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Net income attributable to common stockholders

$

37

 

 

$

90

 

 

$

84

 

 

$

177

 

Provision for income taxes

 

10

 

 

 

50

 

 

 

45

 

 

 

91

 

Income before income taxes attributable to common stockholders

 

47

 

 

 

140

 

 

 

129

 

 

 

268

 

Certain items:

 

 

 

 

 

 

 

ILG integration

 

—

 

 

 

6

 

 

—

 

 

15

 

Welk acquisition and integration

 

3

 

 

 

4

 

 

 

18

 

 

 

8

 

Transaction and integration costs

 

3

 

 

 

10

 

 

 

18

 

 

 

23

 

Early redemption of senior secured notes

 

—

 

 

 

—

 

 

 

—

 

 

 

10

 

Gain on disposition of hotel, land and other

 

(1

)

 

 

(7

)

 

 

(1

)

 

 

(7

)

Foreign currency translation

 

4

 

 

 

(2

)

 

 

6

 

 

 

(4

)

Insurance proceeds

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Change in indemnification asset

 

4

 

 

 

(1

)

 

 

2

 

 

 

(24

)

Other

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

Losses (gains) and other expense (income), net

 

7

 

 

 

(10

)

 

 

7

 

 

 

(31

)

Purchase accounting adjustments

 

—

 

 

 

1

 

 

 

1

 

 

 

3

 

Litigation charges

 

10

 

 

 

2

 

 

 

13

 

 

 

5

 

Restructuring charges

 

1

 

 

 

—

 

 

 

3

 

 

 

—

 

Impairment charges

 

2

 

 

 

—

 

 

 

2

 

 

 

4

 

Other

 

—

 

 

 

(3

)

 

 

(1

)

 

 

(2

)

Adjusted pretax income*

 

70

 

 

 

140

 

 

 

172

 

 

 

270

 

Provision for income taxes

 

(28

)

 

 

(50

)

 

 

(59

)

 

 

(71

)

Adjusted net income attributable to common stockholders*

$

42

 

 

$

90

 

 

$

113

 

 

$

199

 

 

 

 

 

 

 

 

 

Diluted shares

 

42.2

 

 

 

43.8

 

 

 

42.2

 

 

 

44.1

 

Adjusted earnings per share - Diluted*

$

1.10

 

 

$

2.19

 

 

$

2.91

 

 

$

4.73

 

 

 

 

 

 

 

 

 

* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-7

 

 

 

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

ADJUSTED EBITDA

(In millions)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Net income attributable to common stockholders

$

37

 

 

$

90

 

 

$

84

 

 

$

177

 

Interest expense, net

 

43

 

 

 

36

 

 

 

83

 

 

 

70

 

Provision for income taxes

 

10

 

 

 

50

 

 

 

45

 

 

 

91

 

Depreciation and amortization

 

35

 

 

 

34

 

 

 

73

 

 

 

66

 

Share-based compensation

 

9

 

 

 

12

 

 

 

16

 

 

 

19

 

Certain items:

 

 

 

 

 

 

 

ILG integration

 

—

 

 

 

6

 

 

 

—

 

 

 

15

 

Welk acquisition and integration

 

3

 

 

 

4

 

 

 

18

 

 

 

8

 

Transaction and integration costs

 

3

 

 

 

10

 

 

 

18

 

 

 

23

 

Early redemption of senior secured notes

 

—

 

 

 

—

 

 

 

—

 

 

 

10

 

Gain on disposition of hotel, land and other

 

(1

)

 

 

(7

)

 

 

(1

)

 

 

(7

)

Foreign currency translation

 

4

 

 

 

(2

)

 

 

6

 

 

 

(4

)

Insurance proceeds

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Change in indemnification asset

 

4

 

 

 

(1

)

 

 

2

 

 

 

(24

)

Other

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

Losses (gains) and other expense (income), net

 

7

 

 

 

(10

)

 

 

7

 

 

 

(31

)

Purchase accounting adjustments

 

—

 

 

 

1

 

 

 

1

 

 

 

3

 

Litigation charges

 

10

 

 

 

2

 

 

 

13

 

 

 

5

 

Restructuring charges

 

1

 

 

 

—

 

 

 

3

 

 

 

—

 

Impairment charges

 

2

 

 

 

—

 

 

 

2

 

 

 

4

 

Other

 

—

 

 

 

(3

)

 

 

(1

)

 

 

(2

)

Adjusted EBITDA*

$

157

 

 

$

222

 

 

$

344

 

 

$

425

 

Adjusted EBITDA Margin*

20.7%

 

26.9%

 

22.0%

 

26.1%

 

 

 

 

 

 

 

 

* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-8

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION 

(In millions)

(Unaudited)

 

VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Segment financial results attributable to common stockholders

$

144

 

 

$

224

 

 

$

326

 

 

$

429

 

Depreciation and amortization

 

25

 

 

 

23

 

 

 

50

 

 

 

46

 

Share-based compensation

 

2

 

 

 

3

 

 

 

4

 

 

 

4

 

Certain items:

 

 

 

 

 

 

 

Gain on disposition of hotel, land and other

 

(1

)

 

 

(7

)

 

 

(1

)

 

 

(7

)

Insurance proceeds

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Change in indemnification asset

 

—

 

 

 

—

 

 

 

—

 

 

 

(3

)

Other

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

Gains and other income, net

 

(1

)

 

 

(7

)

 

 

(1

)

 

 

(16

)

Purchase accounting adjustments

 

—

 

 

 

1

 

 

 

1

 

 

 

3

 

Litigation charges

 

10

 

 

 

3

 

 

 

13

 

 

 

6

 

Impairment charges

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

Other

 

—

 

 

 

(2

)

 

 

—

 

 

 

(2

)

Segment Adjusted EBITDA*

$

180

 

 

$

245

 

 

$

393

 

 

$

474

 

Segment Adjusted EBITDA Margin*

26.0%

 

32.5%

 

27.6%

 

32.0%

EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Segment financial results attributable to common stockholders

$

15

 

 

$

24

 

 

$

40

 

 

$

52

 

Depreciation and amortization

 

7

 

 

 

8

 

 

 

14

 

 

 

16

 

Share-based compensation

 

1

 

 

 

—

 

 

 

1

 

 

 

1

 

Certain items:

 

 

 

 

 

 

 

Impairment charges

 

2

 

 

 

—

 

 

 

2

 

 

 

—

 

Segment Adjusted EBITDA*

$

25

 

 

$

32

 

 

$

57

 

 

$

69

 

Segment Adjusted EBITDA Margin*

44.3%

 

51.9%

 

48.0%

 

53.8%

 

 

 

 

 

 

 

 

* 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-9

       

MARRIOTT VACATIONS WORLDWIDE CORPORATION

(In millions)

(Unaudited)

 

INTERIM BALANCE SHEET ITEMS

       

 

June 30, 2024

 

December 31, 2023

Cash and cash equivalents

$

206

 

 

$

248

 

Vacation ownership notes receivable, net

$

2,308

 

 

$

2,343

 

Inventory

$

643

 

 

$

634

 

Property and equipment, net

$

1,295

 

 

$

1,260

 

Goodwill

$

3,117

 

 

$

3,117

 

Intangibles, net

$

822

 

 

$

854

 

Debt, net

$

3,137

 

 

$

3,049

 

Stockholders’ equity

$

2,372

 

 

$

2,382

 

SUMMARY CASH FLOW

 

 

Six Months Ended

CASH FLOW

June 30, 2024

 

June 30, 2023

Cash, cash equivalents, and restricted cash provided by (used in):

 

 

 

Operating activities

$

33

 

 

$

27

 

Investing activities

 

(88

)

 

 

(53

)

Financing activities

 

(59

)

 

 

(349

)

Effect of changes in exchange rates on cash, cash equivalents, and restricted cash

 

(3

)

 

 

1

 

Net change in cash, cash equivalents, and restricted cash

$

(117

)

 

$

(374

)

A-10

 

MARRIOTT VACATIONS WORLDWIDE CORPORATION

(In millions, except per share amounts)

 

2024 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND

ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK

 

 

Fiscal Year 2024

 

Low

 

High

Net income attributable to common stockholders

$

195

 

 

$

215

 

Provision for income taxes

 

92

 

 

 

102

 

Income before income taxes attributable to common stockholders

 

287

 

 

 

317

 

Certain items(1)

 

50

 

 

 

50

 

Adjusted pretax income*

 

337

 

 

 

367

 

Provision for income taxes

 

(106

)

 

 

(113

)

Adjusted net income attributable to common stockholders*

$

231

 

 

$

254

 

Earnings per share - Diluted(2)(3)

$

5.05

 

 

$

5.55

 

Adjusted earnings per share - Diluted(2)(3)*

$

5.90

 

 

$

6.45

 

Diluted shares(2)

 

42.3

 

 

 

42.3

 

2024 ADJUSTED EBITDA OUTLOOK

     

 

Fiscal Year 2024

 

Low

 

High

Net income attributable to common stockholders

$

195

 

 

$

215

 

Interest expense

 

169

 

 

 

169

 

Provision for income taxes

 

92

 

 

 

102

 

Depreciation and amortization

 

146

 

 

 

146

 

Share-based compensation

 

33

 

 

 

33

 

Certain items(1)

 

50

 

 

 

50  

Adjusted EBITDA*

$

685

 

 

$

715

       

(1) Certain items adjustment includes $18 million of transaction and integration costs and $32 million of anticipated litigation charges and other items.

(2) Includes 6.6 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

 

$

239

 

 

$

256

 

 

Capital expenditures for property and equipment (excluding inventory)

 

 

(70

)

 

 

(75

)

 

Borrowings from securitizations, net of repayments

 

 

45

 

 

 

60

 

 

Securitized debt issuance costs

 

 

(11

)

 

 

(12

)

 

Free cash flow*

 

 

203

 

 

 

229

 

 

Adjustments:

 

 

 

 

 

Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1)

 

 

65

 

 

 

79

 

 

Certain items(2)

 

 

32

 

 

 

32

 

 

Adjusted free cash flow*

 

$

300

 

 

$

340

 

     

(1) Represents the anticipated net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2023 and 2024 year ends.

 

(2) Certain items adjustment consists primarily of the after-tax impact of transaction and integration costs and anticipated litigation charges.

 

* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

 

A-12

   

MARRIOTT VACATIONS WORLDWIDE CORPORATION

 

QUARTERLY OPERATING METRICS

(Contract sales in millions)

         

 

Year

 

Quarter Ended

 

 

Full Year

 

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Vacation Ownership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated contract sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

$

428

 

 

 

$

449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

434

 

 

 

$

453

 

 

 

$

438

 

 

 

$

447

 

 

 

$

1,772

 

 

2022

 

$

394

 

 

 

$

506

 

 

 

$

483

 

 

 

$

454

 

 

 

$

1,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VPG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

$

4,129

 

 

 

$

3,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

4,358

 

 

 

$

3,968

 

 

 

$

4,055

 

 

 

$

4,002

 

 

 

$

4,088

 

 

2022

 

$

4,706

 

 

 

$

4,613

 

 

 

$

4,353

 

 

 

$

4,088

 

 

 

$

4,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tours

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

96,579

 

 

 

 

111,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

92,890

 

 

 

 

106,746

 

 

 

 

100,609

 

 

 

 

105,580

 

 

 

 

405,825

 

 

2022

 

 

78,505

 

 

 

 

102,857

 

 

 

 

104,000

 

 

 

 

105,231

 

 

 

 

390,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange & Third-Party Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total active Interval International members (000's)(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

1,566

 

 

 

 

1,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

1,568

 

 

 

 

1,566

 

 

 

 

1,571

 

 

 

 

1,564

 

 

 

 

1,564

 

 

2022

 

 

1,606

 

 

 

 

1,596

 

 

 

 

1,591

 

 

 

 

1,566

 

 

 

 

1,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average revenue per Interval International member

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

$

41.74

 

 

 

$

38.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

42.07

 

 

 

$

39.30

 

 

 

$

39.15

 

 

 

$

36.16

 

 

 

$

156.65

 

 

2022

 

$

44.33

 

 

 

$

38.79

 

 

 

$

38.91

 

 

 

$

35.60

 

 

 

$

157.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes members at the end of each period.

 

A-13

MARRIOTT VACATIONS WORLDWIDE CORPORATION NON-GAAP FINANCIAL MEASURES

In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common stockholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.

Certain Items Excluded from Non-GAAP Financial Measures We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies.

Adjusted Development Profit and Adjusted Development Profit Margin We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin.

Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common stockholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to stockholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies.

Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations before the impact of excluded items.

Free Cash Flow and Adjusted Free Cash Flow We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240729768009/en/

Neal Goldner Investor Relations 407-206-6149 neal.goldner@mvwc.com Cameron Klaus Global Communications 407-513-6606 cameron.klaus@mvwc.com