In This Article:
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Contract Sales Growth: Increased 5% in the quarter compared to last year; nearly 2% excluding Maui.
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Tour Growth: Increased 10% year over year.
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VPG (Volume Per Guest): Decreased 4% overall; increased in Asia Pacific.
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Development Profit: Increased to $105 million year over year.
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Occupancy Rate: Increased 700 basis points year over year.
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Revenue Growth: 9% increase in the vacation ownership segment.
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Rental Profit: Increased by $14 million compared to the prior year.
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Adjusted EBITDA: Total company adjusted EBITDA increased to $198 million.
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Liquidity: More than $900 million in liquidity at the end of the quarter.
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Leverage Ratio: Declined to 3.9 times.
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Securitization: Raised $445 million at a blended interest rate of 4.5%.
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Adjusted Free Cash Flow: Expected to be in the $300 to $340 million range.
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G&A Expenses: Expected to be down around $20 million for the year.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Marriott Vacations Worldwide Corp (NYSE:VAC) reported a 5% increase in contract sales in the vacation ownership segment compared to last year.
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Occupancy rates are running above 90%, indicating strong demand and recovery post-Maui wildfires.
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The company has successfully implemented the Bound by Marriott Vacation program, enhancing ease of booking and expanding choices for owners.
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Marriott Vacations Worldwide Corp (NYSE:VAC) has added nearly 1,600 first-time buyers this year, with a significant portion expected to purchase additional points.
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The company is making strategic investments in technology and talent to personalize and simplify the guest experience, positioning for future growth.
Negative Points
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The macroeconomic environment remains dynamic, with pressures from rising interest rates and higher inflation impacting operations.
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Adjusted EBITDA in the exchange and third-party management segment declined by $7 million year over year.
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Sales and marketing expenses have increased year over year, impacting overall profitability.
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The company faced a loss of selling days due to Hurricane Milton, costing approximately $8 million in contract sales.
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Higher financing interest expenses are expected to continue impacting margins over the next few years.
Q & A Highlights
Q: Can you elaborate on the first-time buyer financing strategy and its impact on loan loss provisions? A: John Geller, President and CEO, clarified that there were no changes to underwriting standards, such as FICO scores, so there should be no impact on loan loss provisions.