Hilton Grand Vacations Inc. (NYSE:HGV) Q3 2023 Earnings Conference Call November 6, 2023 11:00 AM ET Company Participants Mark Melnyk - Senior Vice President, Investor Relations and G&A Mark Wang - President and Chief Executive Officer Dan Mathewes - Chief Financial Officer Conference Call Participants Patrick Scholes - Truist Securities Brandt Montour - Barclays Chris Woronka - Deutsche Bank Operator Good morning and welcome to the Hilton Grand Vacations Third Quarter 2023 Earnings and Acquisition Announce ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ____________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to ________ Commission file number 001-37794 _____________________________________ ...

Hilton Grand Vacations Inc. (NYSE:HGV) Q2 2023 Earnings Conference Call August 3, 2023 11:00 AM ET Company Participants Mark Melnyk - Senior Vice President, Investor Relations and G&A Mark Wang - President and Chief Executive Officer Dan Mathewes - Chief Financial Officer Conference Call Participants Patrick Scholes - Truist Securities Brandt Montour - Barclays Rita Chan - Jefferies Operator Good morning, and welcome to the Hilton Grand Vacations Second Quarter 2023 Earnings Conference Call. A telephone rep ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ____________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to ________ Commission file number 001-37794 __________________________________________ ...

Hilton Grand Vacations Inc. (NYSE:HGV) Q1 2023 Earnings Conference Call April 26, 2023 11:00 AM ET Company Participants Mark Melnyk - Senior Vice President of IR and G&A Mark Wang - President and Chief Executive Officer Dan Mathewes - Chief Financial Officer Conference Call Participants Patrick Scholes - Truist Securities Dany Asad - Bank of America David Katz - Jefferies Brandt Montour - Barclays Ben Chaiken - Credit Suisse Operator Good morning, and welcome to the Hilton Grand Vacations First Quarter 2023 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ____________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to ________ Commission file number 001-37794 _________________________________________ ...

Financial Data and Key Metrics - Club and resort revenue reached a record $155 million, driven by new buyer growth and increased member activity [1] - Contract sales for the year were a record $2.4 billion, with EBITDA of $1 billion, nearly 40% ahead of pro forma 2019, and a margin improvement of nearly 600 basis points to 28% [6] - Adjusted free cash flow for 2022 was $563 million, significantly ahead of pro forma 2019 cash flow, with a return on invested capital of over 20% [7] - Total revenue in Q4 was just under $1 billion, with year-over-year growth in all segments, led by real estate and financing [8] - Q4 adjusted EBITDA was $253 million with margins of 25% [8] - VPG (Volume per Guest) for the quarter was $4,350, growing against prior year and 2019, and finishing 31% ahead of 2019 for the year [11] - Cost of product was 19% of net VOI (Vacation Ownership Interest) sales for the quarter, with real estate S&F (Sales and Financing) expense of $243 million, or 38% of gross contract sales [13] - Real estate profit for the quarter was $172 million, with margins of 36% [13] - Financing business revenue in Q4 was $71 million, with segment profit of $34 million [14] - Combined gross receivables for the quarter were $2.5 billion, or $1.8 billion net of allowance, with interest income of $65 million [15] - Annualized default rate for consolidated portfolios was 7.9%, over 100 basis points lower than last year [17] - Provision for bad debt was $39 million, or 9% of owned contract sales [18] - Rental and ancillary revenues were $160 million in the quarter, with segment profit of $7 million [19] - Adjusted free cash flow in Q4 was a use of $92 million, including inventory spending of $73 million and excluding acquisition-related costs of $40 million [23] - For 2023, total inventory spend is expected to be approximately $400 million versus $175 million in 2022 [26] - The company repurchased 2.5 million shares of common stock for $100 million in Q4, and 7 million shares for $272 million for the year [27] - Liquidity position as of December 31 includes $223 million of unrestricted cash and $959 million of availability under the revolving credit facility [29] - Total net leverage at the end of Q4 was 2.4 times [35] Business Line Data and Key Metrics - Within real estate, total contract sales were $634 million, with strong sales momentum in the owner channel and a recovery in the new buyer channel [9] - New buyer tour flow and contract sales pace improved significantly from the first half to the second half of the year, driving NOG (Net Owner Growth) of 3.9% [10] - Activated packages are at the highest level since 2019, with strong arrival growth in the marketing channel [11] - Financing segment profit was $34 million in Q4, with a one-time non-cash true-up adjustment of $9 million related to the acquired Diamond portfolio [14] - Consolidated member count in the resort and club business was 519,000, with NOG of 3.9% at the end of the quarter [18] - Resort and club revenue was $155 million for the quarter, with segment profit of $112 million and margins of 72% [19] - Rental and ancillary revenues were $160 million in the quarter, with segment profit of $7 million [19] Market Data and Key Metrics - System occupancy was 79% in Q4, seasonally lower than Q3 but in line with the previous year [114] - Booked arrivals for the first half of 2023 are ahead of 2019, with particular strength in rental arrivals [115] - The company expects continued normalization of VPG performance against 2019 as the year progresses [12] - The company anticipates a year-over-year impact of roughly $14 million in Q1 due to timing shifts in Diamond's member benefit expense, which will reverse in the second half of the year [21][22] Company Strategy and Industry Competition - The company has built a strong foundation for 2023 and beyond with new membership, programming, destinations, and rebranded resorts, enhancing its value proposition [3] - The company is focused on creating shareholder value through operational improvements and capital returns [3] - The company has successfully integrated Diamond, achieving cost synergies ahead of schedule and creating real economic value [6][105] - The company is committed to driving new buyer sales and NOG, with a focus on tour flow growth in 2023 [46][107] - The company has rebranded Diamond's largest properties and plans to rebrand nearly a dozen additional properties in 2023 [103][107] - The company is leveraging its direct sales approach and high-quality customer base from Hilton Honors to drive transactions [64][65] Management Commentary on Operating Environment and Future Outlook - Management is proud of the progress made on integration and the creation of shareholder value through the Diamond acquisition [6] - The company expects continued normalization of VPG performance against 2019, with a decline in Q1 2023 compared to the record VPG in Q1 2022 [12] - The company is optimistic about 2023 and beyond, with strong demand for leisure travel and a high level of engagement from its member base [100] - The company is monitoring the macro environment but believes its leisure focus and strong value proposition position it well for ongoing shifts in consumer spending preferences [97] - The company has set 2023 adjusted EBITDA guidance to a range of $1.09 billion to $1.12 billion, implying EBITDA growth of 4% to 7% [33] Other Important Information - The company identified a material weakness related to Diamond's internal controls, but it does not impact business operations, financial results, or historical financials [30][70] - The company has a remediation plan in place and expects to resolve the material weakness expeditiously [30][73] - The company has repurchased an additional 1.8 million shares for $80 million through February 24, with $148 million remaining under the $500 million repurchase plan [32] Summary of Q&A Session Question: Feedback on rebranding sales centers and properties - The company has rebranded all legacy Diamond sales centers and implemented HGV's selling technology and approach, with positive results in tour flow and revenue synergies [39][40] - The company has started marketing rebranded properties to Hilton Honors members, with 72,000 packages sold and guests beginning to arrive [40] Question: Fee-for-service mix and outlook - The fee-for-service mix is expected to decrease to 20%-25% in 2023, driven by the pipeline being primarily owned inventory [41] Question: Granularity on forward trends - New buyer tour flow is outpacing other channels, with expectations of strong tour flow growth in 2023 [46][47] - VPG is expected to moderate as the mix shifts to more new buyers, with a target of 10%-15% above 2019 levels [50] Question: Contingencies and sensitivities in a potential recession - The company is mindful of macro impacts but sees strong demand for travel and prioritizes NOG as core to its strategy [61][63] - The company believes its direct sales approach and high-quality customer base provide resilience in any environment [64][65] Question: Balance sheet and leverage management - The company is currently 2.4 times levered and plans to maintain leverage in the range of 2-3 times, with flexibility to adjust inventory spend if necessary [66] Question: Material weakness related to Diamond - The material weakness is related to Diamond's lack of investment in internal controls, particularly user access controls, but does not impact financials or operations [70][71] - The company has a remediation plan and expects to resolve the issue expeditiously [73] Question: Close rates and provision for bad debt - Close rates have been running approximately 400 basis points ahead of 2019 levels but are expected to moderate as the mix shifts to more new buyers [76][78] - The provision for bad debt was 9% in 2022 and is expected to increase but may not fully reach 15%-16% in 2023 [80][81] Question: Quarter-to-quarter volatility in adjusted EBITDA - The company does not provide specifics on quarter-to-quarter volatility due to the timing of specific feed projects and consumer choices [84]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-K ________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 001-37794 ___________________ ...

Hilton Grand Vacations Inc. (NYSE:HGV) Q3 2022 Earnings Conference Call November 9, 2022 11:00 AM ET Company Participants Mark Melnyk - Senior Vice President, Investor Relations Mark Wang - President and Chief Executive Officer Dan Mathewes - Executive Vice President and Chief Financial Officer Conference Call Participants Ben Chaiken - Credit Suisse David Katz - Jefferies Patrick Scholes - Truist Securities Brandt Montour - Barclays Operator Good morning, and welcome to the Hilton Grand Vacations Third Qua ...

Hilton Grand Vacations Inc. (NYSE:HGV) Q2 2022 Results Conference Call August 9, 2022 11:00 AM ET Company Participants Mark Melnyk - Senior Vice President of Investor Relations Mark Wang - President and Chief Executive Officer Daniel Mathewes - Chief Financial Officer Conference Call Participants Patrick Scholes - Truist Securities Brandt Montour - Barclays David Katz - Jefferies Benjamin Chaiken - Credit Suisse Operator Good morning, and welcome to the Hilton Grand Vacations’ Second Quarter 2022 Earnings C ...