Hilton Grand Vacations (HGV)
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Hilton Grand Vacations (HGV) - 2023 Q4 - Annual Results
2024-02-28 16:00
Exhibit 99.1 Investor Contact: Mark Melnyk 407-613-3327 mark.melnyk@hgv.com Media Contact: Lauren George 407-613-8431 lauren.george@hgv.com FOR IMMEDIATE RELEASE Hilton Grand Vacations Reports Fourth Quarter and Full Year 2023 Results ORLANDO, Fla. (Feb. 29, 2024) – Hilton Grand Vacations Inc. (NYSE: HGV) ("HGV" or "the Company") today reports its fourth quarter and full year 2023 results. Fourth quarter of 2023 highlights 1 Full Year 2024 Outlook • The Company expects full-year 2024 Adjusted EBITDA excludi ...
Hilton Grand Vacations (HGV) - 2023 Q3 - Quarterly Report
2023-11-05 16:00
[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q3 2023, including balance sheets, income, cash flows, and notes, with details on the Bluegreen acquisition Condensed Consolidated Balance Sheet Highlights (Unaudited) | ($ in millions) | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $227 | $223 | | Timeshare financing receivables, net | $1,821 | $1,767 | | Inventory | $1,308 | $1,159 | | Goodwill | $1,416 | $1,416 | | Total Assets | $8,009 | $8,004 | | **Liabilities & Equity** | | | | Debt, net | $2,730 | $2,651 | | Non-recourse debt, net | $1,038 | $1,102 | | Total Liabilities | $5,861 | $5,853 | | Total Stockholders' Equity | $2,148 | $2,151 | | **Total Liabilities & Equity** | **$8,009** | **$8,004** | Condensed Consolidated Statements of Operations Highlights (Unaudited) | ($ in millions, except EPS) | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,018 | $1,116 | $2,959 | $2,843 | | Net Income | $92 | $150 | $245 | $274 | | Diluted EPS | $0.83 | $1.24 | $2.18 | $2.23 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | ($ in millions) | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $312 | $763 | | Net cash used in investing activities | ($47) | ($51) | | Net cash used in financing activities | ($270) | ($644) | - On November 5, 2023, the company entered into a merger agreement to acquire Bluegreen Vacations Holding Corporation for approximately **$1.5 billion** in an all-cash transaction, expected to close in the first half of 2024[106](index=106&type=chunk) - As of September 30, 2023, the company accrued liabilities of approximately **$121 million** for legal matters, including **$101 million** for a judgment against Diamond, for which an **$83 million** insurance claim receivable was recorded[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and YTD 2023 financial results, covering segment performance, liquidity, and risks related to the Bluegreen acquisition [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q3 2023 total revenues decreased 8.8% to $1,018 million and net income fell 38.7% to $92 million, primarily due to real estate sales decline offset by resort operations growth Segment Revenue Performance | ($ in millions) | Q3 2023 | Q3 2022 | % Change | 9 Months 2023 | 9 Months 2022 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Real estate sales and financing | $612 | $745 | (17.9)% | $1,766 | $1,783 | (1.0)% | | Resort operations and club management | $322 | $299 | 7.7% | $944 | $870 | 8.5% | | **Total segment revenues** | **$934** | **$1,044** | **(10.5)%** | **$2,710** | **$2,653** | **2.1%** | Reconciliation of Net Income to Adjusted EBITDA | ($ in millions) | Q3 2023 | Q3 2022 | % Change | 9 Months 2023 | 9 Months 2022 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income | $92 | $150 | (38.7)% | $245 | $274 | (10.6)% | | EBITDA | $234 | $300 | (22.0)% | $631 | $677 | (6.8)% | | Adjusted EBITDA | $269 | $338 | (20.4)% | $735 | $813 | (9.6)% | [Real Estate Sales and Financing Segment](index=37&type=section&id=Real%20Estate%20Sales%20and%20Financing%20Segment) Q3 2023 Adjusted EBITDA for this segment fell 30.5% to $205 million, driven by lower VPG, Maui wildfires, and a $98 million negative variance in revenue recognition Real Estate Operating Metrics | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Contract Sales ($M) | $603 | $621 | (2.9)% | | Tour Flow | 163,699 | 142,647 | 14.8% | | VPG | $3,656 | $4,229 | (13.5)% | Real Estate Profitability | ($ in millions) | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Sales Revenue | $474 | $625 | (24.2)% | | Real Estate Expense | $314 | $372 | (15.6)% | | **Real Estate Profit** | **$160** | **$253** | **(36.8)%** | | Real Estate Profit Margin | 33.8% | 40.5% | -6.7 p.p. | [Resort Operations and Club Management Segment](index=38&type=section&id=Resort%20Operations%20and%20Club%20Management%20Segment) This segment showed solid growth in Q3 2023, with revenues up 7.7% and Adjusted EBITDA up 12.5% to $126 million, driven by higher rental and club management revenues Resort and Club Management Profitability | ($ in millions) | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Resort & Club Management Revenues | $138 | $130 | 6.2% | | **Resort & Club Management Profit** | **$95** | **$85** | **11.8%** | | Profit Margin | 68.8% | 65.4% | +3.4 p.p. | Rental and Ancillary Services Profitability | ($ in millions) | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Rental & Ancillary Services Revenues | $171 | $159 | 7.5% | | **Rental & Ancillary Services Profit** | **$17** | **$15** | **13.3%** | | Profit Margin | 9.9% | 9.4% | +0.5 p.p. | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2023, the company maintained liquidity with $227 million in cash and available credit, despite a significant decrease in operating cash flow to $312 million for the nine months Key Liquidity Metrics (as of Sep 30, 2023) | Metric | Amount ($ in millions) | | :--- | :--- | | Cash and cash equivalents | $227 | | Restricted cash | $308 | | Revolver facility capacity remaining | $866 | | Timeshare Facility capacity remaining | $750 | - Net cash provided by operating activities decreased by **$451 million** to **$312 million** for the nine months ended Sep 30, 2023, primarily due to a **$136 million** inventory purchase, increased working capital usage, and lower net income[182](index=182&type=chunk)[184](index=184&type=chunk) - The company repurchased **6 million shares** for **$269 million** during the nine months ended September 30, 2023, with **$432 million** remaining available under the 2023 Repurchase Plan as of October 30, 2023[93](index=93&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risks, including interest rates and currency exchange rates, has not materially changed since the 2022 annual report - Exposure to market risk from changes in interest rates and currency exchange rates has not materially changed since the 2022 year-end report[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of September 30, 2023, due to a material weakness in internal controls related to the acquired Diamond business, with remediation ongoing - The CEO and CFO concluded that disclosure controls and procedures were not effective as of September 30, 2023[202](index=202&type=chunk) - The ineffectiveness is due to a material weakness in internal controls over financial reporting identified in 2022 at the legacy Diamond business, which was acquired in August 2021 and was not previously an SEC reporting company[203](index=203&type=chunk) - Remediation efforts are ongoing, including enhancing control design, implementing new controls, and improving IT systems, with full remediation expected by the end of 2023[205](index=205&type=chunk)[206](index=206&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) As of September 30, 2023, the company accrued $121 million for legal matters, including a $101 million judgment against Diamond with an $83 million insurance claim receivable - As of September 30, 2023, the company accrued liabilities of approximately **$121 million** for all legal matters, of which **$101 million** relates to a judgment against Diamond from a 2015 case[103](index=103&type=chunk) - The company has recorded an insurance claim receivable of **$83 million** related to the Diamond judgment, which is included in Accounts receivable, net[103](index=103&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, focusing on new risks from the pending Bluegreen Vacations merger, including business disruptions, integration challenges, increased debt, and Hilton license compliance [Risks Relating to the Merger](index=47&type=section&id=Risks%20Relating%20to%20the%20Merger) Significant risks related to the Bluegreen acquisition include potential business disruptions, integration challenges, increased indebtedness, substantial transaction costs, and critical compliance with the Hilton license agreement - The merger is subject to various uncertainties that could disrupt relationships with employees, owners, and suppliers, and make it difficult to retain key personnel[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) - The company will incur significant additional indebtedness to finance the merger, which could reduce business flexibility and increase vulnerability to adverse economic conditions[225](index=225&type=chunk) - Integrating Bluegreen successfully is a major risk, with challenges in combining corporate cultures, systems, and realizing expected synergies, and compliance with the Hilton license agreement is critical for successful integration[221](index=221&type=chunk)[223](index=223&type=chunk) - Substantial non-recurring transaction costs are expected, and if the merger is not completed, these expenses will be recognized without realizing any benefits[228](index=228&type=chunk)[229](index=229&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's Q3 2023 stock repurchase activity, including 1,456,853 shares bought at an average of $43.78, with $432 million remaining for future repurchases Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2023 | — | $— | | August 2023 | 1,093,967 | $44.26 | | September 2023 | 362,886 | $42.31 | | **Total** | **1,456,853** | **$43.78** | - As of October 30, 2023, the company had **$432 million** of remaining availability under its 2023 Share Repurchase Plan[232](index=232&type=chunk) [Item 3. Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[233](index=233&type=chunk) [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[233](index=233&type=chunk) [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) The company reports no information for this item - None[233](index=233&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amendments to credit agreements, guarantor subsidiaries, Sarbanes-Oxley certifications, and Inline XBRL data files - The report includes several exhibits, such as amendments to credit agreements, Sarbanes-Oxley certifications (302 and 906), and Inline XBRL documents[234](index=234&type=chunk)
Hilton Grand Vacations (HGV) - 2023 Q2 - Quarterly Report
2023-08-02 16:00
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 (HGV) - 2023 Q1 - Quarterly Report
2023-04-26 16:00
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 _________________________________________ ...
Hilton Grand Vacations (HGV) - 2022 Q4 - Earnings Call Transcript
2023-03-01 17:10
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]
Hilton Grand Vacations (HGV) - 2022 Q4 - Annual Report
2023-02-28 16:00
Membership and Sales - As of December 31, 2022, the company had approximately 519,000 members across its club offerings[36] - For the year ended December 31, 2022, 71% of the company's contract sales were to existing owners[41] - The estimated contract sales value related to inventory currently available for sale is approximately $11 billion at current pricing[39] - Sales from fee-for-service agreements accounted for 29% of contract sales in 2022, while just-in-time inventory sales represented 15%[39] - The company offers a new club membership called HGV Max, providing broader vacation opportunities for both Legacy-HGV and Legacy-Diamond club owners[26] - The company’s VOI product allows customers to purchase a lifetime of vacations, efficiently splitting the cost of ownership with other owners[27] - Approximately 44% of contract sales were from capital-efficient sources for the year ended December 31, 2022[174] Financial Performance and Debt - As of December 31, 2022, the average loan outstanding was approximately $23,000 with a weighted average interest rate of 14.7%[45] - The entire loan portfolio had a gross balance of approximately $2,468 million derived from approximately 107,000 loans, with a weighted average length of loan of 10 years and a weighted average remaining length of loan of 8 years[48] - HOAs collected approximately $1,016 million in maintenance fees in 2022, which includes management fees[54] - The consumer loan portfolio had a balance of approximately $2.5 billion as of December 31, 2022, with default rates of 7.92%, 8.93%, and 6.34% for the fiscal years ended December 31, 2022, 2021, and 2020, respectively[183] - The company faces substantial indebtedness and contractual obligations, which may affect its ability to generate sufficient cash to meet its needs and service its debt[125] Operations and Workforce - The company operates approximately 50 sales distribution centers in various domestic and international locations[42] - As of December 31, 2022, the company employed over 14,500 team members across its timeshare resorts, call centers, sales centers, and corporate locations[74] - In 2022, team members completed approximately 140,000 training courses totaling 77,000 training hours, with over 40,000 course completions dedicated to compliance training[79] - Approximately 71% of team members are enrolled in health and well-being programs, which include medical, dental, vision, and various voluntary benefits[80] Acquisitions and Partnerships - The company completed the acquisition of Dakota Holdings, Inc. on August 2, 2021, resulting in pre-existing shareholders owning approximately 72% of the combined company[22] - The company is committed to an inclusive workforce, with 12 Team Member Resource Groups (TMRGs) aimed at fostering diversity and engagement[77] - The company plans to pursue strategic acquisitions to expand inventory and distribution capabilities, but faces risks related to integration and potential liabilities[147] - Collaboration with Hilton on timeshare development and marketing partnerships is part of the growth strategy, but success is not guaranteed[148] Regulatory and Compliance Risks - The company must maintain effective internal controls over financial reporting and disclosure controls to avoid material weaknesses[122] - The company is required to pay a license fee of 5% of gross revenues to Hilton quarterly, with a reduced fee structure of 2% to 4% for the first five years following the Diamond Acquisition[89] - The company is required to comply with Hilton brand standards and obtain consent for developing or operating additional vacation ownership properties under Hilton Marks[95] - The company faces significant compliance costs and potential liabilities under various environmental laws, which could result in substantial fines or penalties[210] - The company is subject to ongoing tax audits, and unfavorable outcomes could lead to higher tax costs and adversely affect financial results[215] Market and Economic Conditions - The company faces risks related to the COVID-19 pandemic, including reliance on tourism and travel[122] - The COVID-19 pandemic has had a material adverse effect on the company's business, financial condition, and results of operations, impacting domestic and international travel demand[135] - Economic conditions, including low consumer confidence and high unemployment, could adversely affect the company's revenues and profitability[128] - The company competes in a highly competitive timeshare industry, facing competition from major hotel chains and vacation rental options[130] Risks and Challenges - The company is exposed to project cost and completion risks due to its dependence on development activities for VOI inventory[152] - Geographic concentration of properties in regions like Florida and California increases vulnerability to regional economic downturns and natural disasters[154] - International operations expose the company to risks such as political instability, currency fluctuations, and compliance with foreign regulations[156] - The company must manage fixed costs effectively during economic downturns to avoid adverse impacts on financial performance[128] Technology and Cybersecurity - Failure to keep pace with technology developments could impair operations and competitive position, leading to higher costs[192] - Cybersecurity risks, including data breaches, could disrupt business operations and adversely affect reputation and financial performance[195] - Compliance with evolving privacy laws may incur significant costs and impact service provision, with potential fines for non-compliance[197] Legal and Taxation Issues - The company must indemnify Hilton against claims resulting from breaches of the license agreement or unauthorized use of Hilton Data[105] - Changes in tax laws could increase the company's tax burden and adversely affect its financial condition[212] - The company is subject to the Foreign Corrupt Practices Act (FCPA) and trade sanctions, with non-compliance potentially leading to financial penalties and reputational harm[216]
Hilton Grand Vacations (HGV) - 2022 Q3 - Earnings Call Transcript
2022-11-10 01:33
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 (HGV) - 2022 Q2 - Earnings Call Transcript
2022-08-09 19:06
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 ...
Hilton Grand Vacations (HGV) - 2022 Q1 - Earnings Call Transcript
2022-05-09 20:16
Hilton Grand Vacations Inc. (NYSE:HGV) Q1 2022 Earnings Conference Call May 9, 2022 11:00 AM ET Company Participants Mark Melnyk - VP, IR Mark Wang - President and CEO Dan Mathewes - CFO Conference Call Participants Stephen Grambling - Goldman Sachs Ben Chaiken - Credit Suisse David Katz - Jefferies Operator Good morning, and welcome to the Hilton Grand Vacations' First Quarter 2022 Earnings Conference Call. A telephone replay will be available for seven days following the call. The dial-in number is 844-51 ...
Hilton Grand Vacations (HGV) - 2022 Q1 - Earnings Call Presentation
2022-05-09 14:59
Diamond Acquisition Synergies - The Diamond acquisition is expected to generate $150 million in run-rate cost synergies within the first 24 months [2,7,9] - Approximately ⅔ of the $150 million in cost synergies are expected from headcount and other efficiencies [10] - Approximately ¼ of the $150 million in cost synergies are expected from operational efficiencies [10] - The remaining cost synergies are expected from financial efficiencies [10] Strategic Benefits of Acquisition - The acquisition diversifies HGV's portfolio by adding drive-to destinations and leveraging the Hilton network to reach a broader customer base [2] - The acquisition accelerates the launch of HGV-branded trust product offering by rebranding Diamond's properties [2] - Over one-third of targeted room keys are expected to be rebranded by year-end 2022 [8] Financial Performance and Outlook - The company is raising its 2022 Deferral Adjusted EBITDA target to a range of $960 million to $990 million [19] - The company is targeting a net leverage of 20x [19] Integration Progress - Sales centers responsible for 100% of DRI contract sales volume are being rebranded by year-end 2022 [8] - The integration of Diamond Resorts is proceeding as planned, including workforce, IT systems, and accounting/finance process integration [6]