Financial Performance - Consolidated Vacation Ownership contract sales increased by 7% year-over-year in Q4 2024, reaching $477 million, with first-time buyer contract sales growing by 9%[4] - Net income attributable to common stockholders was $50 million, resulting in diluted earnings per share of $1.30; adjusted net income was $73 million with adjusted diluted earnings per share of $1.86[4] - Adjusted EBITDA for Q4 2024 was $185 million, while full-year cash provided by operating activities was $205 million, leading to an adjusted free cash flow of $278 million[4] - Revenues for the three months ended December 31, 2024, increased by 11% to $1,327 million compared to $1,194 million in the same period of 2023[24] - Net income attributable to common stockholders rose by 44% to $50 million for the three months ended December 31, 2024, compared to $35 million in the prior year[24] - Adjusted EBITDA for the fiscal year ended December 31, 2024, decreased by 4% to $727 million from $761 million in 2023[24] - The company reported a 23% decline in income before income taxes for the fiscal year ended December 31, 2024, totaling $306 million compared to $398 million in 2023[24] - The diluted earnings per share for the three months ended December 31, 2024, increased by 40% to $1.30, while the fiscal year diluted earnings per share decreased by 11% to $5.61[24] - Total revenues for the fiscal year ended December 31, 2024, reached $4,967 million, a 5% increase from $4,727 million in 2023[24] - The company experienced a 20% decline in adjusted net income attributable to common stockholders for the fiscal year ended December 31, 2024, totaling $258 million compared to $322 million in 2023[24] Debt and Liquidity - The company ended 2024 with $914 million in liquidity, including $197 million in cash and cash equivalents[8] - Total corporate debt stood at $3.1 billion, with an additional $2.1 billion in non-recourse debt related to securitized vacation ownership notes receivable[9] - Total cash provided by operating activities for 2024 was $205 million, a decrease from $232 million in 2023[52] - Adjusted free cash flow for 2024 was $278 million, down from $348 million in 2023[52] - The net change in cash, cash equivalents, and restricted cash for 2024 was a decrease of $46 million, compared to a decrease of $280 million in 2023[52] Segment Performance - Revenues from the Exchange & Third-Party Management segment decreased by 13% year-over-year to $49 million, with a segment margin of 26.5%[6] - Vacation Ownership segment adjusted EBITDA for the three months ended December 31, 2024, decreased by 7% to $221 million compared to $236 million in the same period of 2023[26] - Management and exchange segment adjusted EBITDA fell by 27% to $22 million for the three months ended December 31, 2024, from $31 million in the prior year[26] - The segment margin for vacation ownership was 27.3%, while the third-party management segment margin was 31.1%[35] - Segment financial results attributable to common stockholders for Q4 2024 were $172 million, down 13.6% from $199 million in Q4 2023[47] - Segment Adjusted EBITDA for Q4 2024 was $221 million, representing a decrease of 6.4% compared to $236 million in Q4 2023, with an Adjusted EBITDA margin of 27.0%[47] Future Guidance and Expectations - The company expects to generate $150 million to $200 million in run-rate benefits from operational initiatives by the end of 2026, with half from cost savings and efficiencies[3] - Full-year 2025 guidance includes contract sales projected between $1.85 billion and $1.93 billion, and adjusted EBITDA expected to be between $750 million and $780 million[11] - The company expects adjusted free cash flow for 2025 to be between $290 million and $350 million[56] Operational Insights - The company had over 700,000 owner families and approximately 120 vacation ownership resorts in its portfolio[15] - The total active Interval International members at the end of Q4 2024 was 1.546 million, slightly down from 1.564 million in Q4 2023[59] - The average revenue per Interval International member for 2024 was $154.34, compared to $156.65 in 2023[59] - The company plans to continue expanding its market presence and investing in new product development[35] Other Financial Metrics - Development profit margin decreased to 25.7% from 32.0% year-over-year[38] - The company incurred $39 million in interest expense for the quarter, consistent with the previous year[44] - The total profit for the quarter was $291 million, reflecting a slight decrease from $292 million in the prior year[35] - The company reported a 72% increase in other income for the three months ended December 31, 2024, amounting to $6 million compared to $3 million in the same period of 2023[26] Definitions and Measures - EBITDA is defined as earnings before interest expense, income taxes, depreciation, and amortization, with Adjusted EBITDA reflecting additional adjustments for certain items[67] - Adjusted EBITDA is considered an indicator of operating performance, allowing the company to measure its ability to service debt and fund capital expenditures[67] - Adjusted EBITDA margin is evaluated as an indicator of operating profitability, calculated as Adjusted EBITDA divided by total revenues less cost reimbursement revenues[69] - Adjusted pretax income is calculated as Adjusted EBITDA less depreciation, amortization, and net interest expense, providing insights into operating performance[70] - Free Cash Flow and Adjusted Free Cash Flow are evaluated as liquidity measures, indicating cash generated by operating activities after capital expenditures[71] - Adjusted Free Cash Flow allows for period-over-period comparisons of cash generated before the impact of certain items, facilitating management's comparison with competitors[71] - The company does not adjust for consumer financing interest expense associated with term securitization transactions, considering it an operating expense[67] - Adjusted net income attributable to common stockholders is calculated as Adjusted pretax income less provision for income tax adjusted for certain items[70] - Segment Adjusted EBITDA margin provides useful information for evaluating the profitability of specific segments within the company[69] - The company believes that Adjusted EBITDA and related measures facilitate comparisons with results from other companies in the same industry[68]

Core Insights - Wall Street analysts expect Marriott Vacations Worldwide (VAC) to report quarterly earnings of $1.51 per share, reflecting a year-over-year decline of 19.7% [1] - Revenue is anticipated to be $1.25 billion, which represents a 4.3% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Revenue Estimates - The consensus estimate for 'Revenue- Cost reimbursements' is $420.38 million, indicating a year-over-year increase of 5.6% [4] - 'Revenue- Rental' is projected to be $150.97 million, reflecting an 11% increase year-over-year [4] - 'Revenue- Management and exchange' is expected to reach $208.72 million, showing a 3.3% increase from the previous year [4] Other Revenue Projections - 'Revenue- Sales of vacation ownership products' is estimated at $371.31 million, indicating a 1% decline year-over-year [5] - 'Revenue- Financing' is projected to be $86.07 million, reflecting a 3.7% increase from the year-ago quarter [5] - Shares of Marriott Vacations Worldwide have decreased by 1.8% over the past month, matching the performance of the Zacks S&P 500 composite [5]

Core Insights - The article compares two stocks in the Leisure and Recreation Services sector: Marriott Vacations Worldwide (VAC) and Vail Resorts (MTN), focusing on which stock is more attractive to value investors [1] Valuation Metrics - VAC has a forward P/E ratio of 15.19, while MTN has a forward P/E of 25.09, indicating that VAC may be undervalued compared to MTN [5] - VAC's PEG ratio is 0.86, suggesting a more favorable valuation when considering expected earnings growth, whereas MTN's PEG ratio is 1.75 [5] - VAC's P/B ratio is 1.36, significantly lower than MTN's P/B of 6.58, further supporting VAC's position as a more attractive investment [6] Zacks Rank and Earnings Outlook - VAC currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MTN has a Zacks Rank of 5 (Strong Sell) [3] - The Zacks Rank system emphasizes companies with positive estimate revision trends, which favors VAC due to its improving earnings outlook [3][7] Value Grades - VAC has a Value grade of A, while MTN has a Value grade of D, reflecting the relative attractiveness of their valuations [6][7] - Stronger estimate revision activity and more attractive valuation metrics for VAC suggest it is the superior option for value investors at this time [7]

Marriott Vacations Worldwide Corporation (VAC) reported excellent third-quarter 2024 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.The quarterly performance benefited from solid contributions from the Vacation Ownership segment, driven by increased tours, higher development, resort management and rental profit, partially offset by lower financing profit. Also, continued ...

For the quarter ended September 2024, Marriott Vacations Worldwide (VAC) reported revenue of $1.31 billion, up 10% over the same period last year. EPS came in at $1.80, compared to $1.20 in the year-ago quarter.The reported revenue represents a surprise of +2.91% over the Zacks Consensus Estimate of $1.27 billion. With the consensus EPS estimate being $1.53, the EPS surprise was +17.65%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare t ...

Marriott Vacations Worldwide (VAC) came out with quarterly earnings of $1.80 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $1.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.65%. A quarter ago, it was expected that this timeshare company would post earnings of $1.99 per share when it actually produced earnings of $1.10, delivering a surprise of -44.72%.Over the last four ...

Financial Performance - Consolidated Vacation Ownership contract sales increased by 5% year-over-year to $459 million in Q3 2024[2] - Net income attributable to common stockholders was $84 million, with fully diluted earnings per share at $2.12[2] - Adjusted EBITDA for the quarter was $198 million, reflecting a strong operational performance[2] - Revenues for Q3 2024 reached $1,305 million, a 10% increase from $1,186 million in Q3 2023[20] - Net income attributable to common stockholders for Q3 2024 was $84 million, up 99% from $42 million in Q3 2023[20] - Adjusted EBITDA for Q3 2024 was $198 million, a 32% increase from $150 million in Q3 2023[21] - Vacation Ownership segment generated $231 million in adjusted EBITDA for Q3 2024, a 33% increase from $173 million in Q3 2023[21] - Adjusted earnings per share (diluted) for Q3 2024 was $1.80, a 50% increase from $1.20 in Q3 2023[20] - Total revenues for the nine months ended September 30, 2024, were $3,640 million, a 3% increase from $3,533 million in the same period of 2023[20] - The company reported a 26% decrease in income before income taxes for the nine months ended September 30, 2024, totaling $247 million compared to $334 million in 2023[20] Contract Sales and Tours - Total consolidated contract sales increased to $459 million, driven by a 10% increase in tours to 110,557[4] - Consolidated contract sales for the three months ended September 30, 2024, were $459 million, compared to $438 million in the same period last year[26] - Vacation ownership product sales reached $319 million, with ancillary revenues contributing $63 million and management fee revenues at $49 million[25] - The company reported a total of 405,825 tours in 2023, an increase from 390,593 in 2022[37] Cost Management and Guidance - The Company expects to achieve $50 to $100 million in annual cost efficiencies over the next two years[3] - The Company updated its full-year 2024 guidance, projecting contract sales between $1.790 billion and $1.825 billion[11] - The company expects adjusted EBITDA for fiscal year 2024 to be between $700 million and $720 million, with net income attributable to common stockholders projected between $225 million and $240 million[34] - Adjusted free cash flow for fiscal year 2024 is anticipated to be between $300 million and $340 million, with net cash provided by operating activities expected to range from $233 million to $262 million[35] Liquidity and Debt - The Company ended the quarter with $922 million in liquidity, including $197 million in cash[7] - Corporate debt stood at $3.0 billion, with an additional $2.2 billion in non-recourse debt related to vacation ownership notes receivable[8] - As of September 30, 2024, cash and cash equivalents were $197 million, down from $248 million at the end of 2023[31] - Total debt as of September 30, 2024, was $3,038 million, slightly down from $3,049 million at the end of 2023[31] - The company reported a decrease in stockholders' equity to $2,419 million as of September 30, 2024, compared to $2,382 million at the end of 2023[31] Dividends and Shareholder Returns - A quarterly dividend of $0.76 per share was declared and paid in October 2024[9] Segment Performance - The Vacation Ownership segment's revenues for Q3 2024 were $387 million, up from $319 million in Q3 2023[22] - Management and exchange revenues for Q3 2024 were $207 million, slightly up from $205 million in Q3 2023[22] - The Exchange & Third-Party Management segment's adjusted EBITDA decreased to $23 million for the three months ended September 30, 2024, down from $30 million in the same period last year, a decline of 23.3%[30] Development and Strategic Initiatives - Adjusted development profit for the three months ended September 30, 2024, was $102 million, up from $69 million in the same period last year, reflecting a development profit margin of 27.2%[26] - The company aims to enhance its market expansion strategies through new product development and technology advancements[37] - Non-GAAP financial measures are utilized to provide useful information for period-over-period comparisons of ongoing core operations[39] - Adjusted development profit margin is evaluated as an indicator of operating performance, allowing for comparisons of ongoing core operations[40] Other Financial Metrics - The company experienced a 19% decrease in adjusted net income attributable to common stockholders for the nine months ended September 30, 2024, totaling $185 million compared to $247 million in 2023[20] - Development profit for the nine months ended September 30, 2024, was $226 million, down from $293 million in the same period last year[26] - The company incurred $42 million in certain items adjustments, which includes transaction and integration costs for the fiscal year 2024 outlook[34] - The average revenue per international member for Q1 2024 was $41.74, compared to $42.07 in Q1 2023, indicating a decline of 0.8%[37] - Total active international members as of Q1 2024 were 1,566, a decrease from 1,568 in Q1 2023[37] - Vacation ownership sales for the full year 2023 totaled $1,772 million, down from $1,837 million in 2022[37] - Adjusted EBITDA for the full year 2023 was reported at $156.65 million, reflecting a decrease from $157.97 million in 2022[41] - Free Cash Flow for the full year 2023 was utilized for strategic opportunities, including acquisitions and strengthening the balance sheet[44]

Marriott Vacations Worldwide Corporation (VAC) is likely to benefit from strong rental performance, sales promotions and cost management efforts. Focus on expanding presence in high-demand destinations bodes well. However, dismal contract sales are a concern. Factors Driving VAC Stock VAC focuses on rental performance to drive growth. In the second quarter of 2024, the company witnessed strong rental results, with higher revenues from more keys rented and lower costs due to increased preview packages drivin ...

Revenue Performance - Total revenues for the six months ended June 30, 2024, were $2.335 billion, compared to $2.347 billion for the same period in 2023[133] - Sale of vacation ownership products revenue for the six months ended June 30, 2024, was $661 million, down from $766 million in the same period in 2023[133] - Management and exchange revenue increased to $426 million for the six months ended June 30, 2024, from $406 million in the same period in 2023[133] - Rental revenue rose to $311 million for the six months ended June 30, 2024, compared to $297 million in the same period in 2023[133] - Financing revenue increased to $168 million for the six months ended June 30, 2024, from $158 million in the same period in 2023[133] - Total Segment Revenues decreased by $41 million (4%) to $1,136 million in Q2 2024 compared to Q2 2023[136] - Vacation Ownership segment's revenues decreased by 3% to $1.078 billion in Q2 2024 from $1.112 billion in Q2 2023[151] - Sale of vacation ownership products revenue for Q2 2024 was $309 million, a 21% decrease compared to $391 million in Q2 2023[154] - Resort management and other services revenues for Q2 2024 were $157 million, a 7% increase compared to $147 million in Q2 2023[161] - Rental revenues increased to $143 million in Q2 2024, up 6% from $135 million in Q2 2023[162] - Financing revenues rose 7% to $85 million in Q2 2024 from $80 million in Q2 2023[165] - Management and exchange revenues decreased 9% to $45 million in Q2 2024 from $51 million in Q2 2023[168] - Total revenues for the three months ended June 30, 2024 were $4 million, compared to $1 million in the same period in 2023[171] - Total revenues for the six months ended June 30, 2024 were $4 million, compared to $2 million in the same period in 2023[171] Profitability and Margins - Net income attributable to common stockholders for the six months ended June 30, 2024, was $84 million, down from $177 million in the same period in 2023[133] - Net income attributable to common stockholders decreased by $53 million (59%) to $37 million in Q2 2024 compared to Q2 2023[140] - Adjusted EBITDA decreased by $65 million (29%) to $157 million in Q2 2024 compared to Q2 2023[140] - Adjusted EBITDA Margin decreased by 6.2 percentage points to 20.7% in Q2 2024 compared to 26.9% in Q2 2023[140] - Vacation Ownership segment's Adjusted EBITDA decreased by 26% to $180 million in Q2 2024 compared to $245 million in Q2 2023[144][145] - Exchange & Third-Party Management segment's Adjusted EBITDA declined by 22% to $25 million in Q2 2024 from $32 million in Q2 2023[144][149] - Total Adjusted EBITDA for the company fell by 29% to $157 million in Q2 2024 versus $222 million in Q2 2023[144] - Vacation Ownership segment's Adjusted EBITDA margin dropped by 6.5 percentage points to 26.0% in Q2 2024 compared to 32.5% in Q2 2023[145] - Exchange & Third-Party Management segment's Adjusted EBITDA margin decreased by 7.6 percentage points to 44.3% in Q2 2024 from 51.9% in Q2 2023[149] - Vacation Ownership segment's financial results attributable to common stockholders declined by 36% to $144 million in Q2 2024 from $224 million in Q2 2023[145][151] - Exchange & Third-Party Management segment's financial results attributable to common stockholders decreased by 35% to $15 million in Q2 2024 from $24 million in Q2 2023[149] - Development profit for Q2 2024 was $45 million, a 62% decrease compared to $119 million in Q2 2023[158] - Development profit margin for Q2 2024 was 14.7%, a 16.1 percentage point decrease compared to 30.8% in Q2 2023[158] - Resort management and other services profit for Q2 2024 was $84 million, a 9% increase compared to $78 million in Q2 2023[161] - Rental profit surged 64% to $30 million in Q2 2024 compared to $19 million in Q2 2023[162] - Financing profit margin declined by 11.1 percentage points to 58.0% in Q2 2024[165] - Gains and other income dropped 82% to $1 million in Q2 2024 from $7 million in Q2 2023[166] Expenses - Total expenses for the six months ended June 30, 2024, were $2.096 billion, compared to $2.018 billion in the same period in 2023[133] - Marketing and sales expenses increased to $449 million for the six months ended June 30, 2024, from $416 million in the same period in 2023[133] - General and administrative expenses decreased to $117 million for the six months ended June 30, 2024, from $132 million in the same period in 2023[133] - Depreciation and amortization expenses rose to $73 million for the six months ended June 30, 2024, from $66 million in the same period in 2023[133] - General and administrative expenses decreased by $10 million (15%) in the second quarter of 2024 compared to the same period in 2023, primarily due to lower information technology costs, insurance expense, and compensation expense[175] - General and administrative expenses decreased by $15 million (11%) in the first half of 2024 compared to the same period in 2023, primarily due to lower information technology costs, insurance expense, and compliance-related expenses[175] - Interest expense, net increased by $7 million (21%) in the second quarter of 2024 compared to the same period in 2023, and by $13 million (19%) in the first half of 2024 compared to the same period in 2023[179] - Litigation charges increased significantly to $10 million in Q2 2024 from $3 million in Q2 2023[167] Vacation Ownership Performance - Total contract sales for Vacation Ownership decreased by $10 million (2%) to $452 million in Q2 2024 compared to Q2 2023[135] - Consolidated contract sales for Vacation Ownership decreased by $4 million (1%) to $449 million in Q2 2024 compared to Q2 2023[135] - Joint venture contract sales for Vacation Ownership decreased by $6 million (65%) to $3 million in Q2 2024 compared to Q2 2023[135] - VPG (Volume Per Guest) decreased by $227 (6%) to $3,741 in Q2 2024 compared to Q2 2023[135] - Total active members at the end of the period decreased by 36,000 (2%) to 1,530,000 in Q2 2024 compared to Q2 2023[135] - Average revenue per member decreased by $1.00 (3%) to $38.30 in Q2 2024 compared to Q2 2023[135] - Vacation Ownership segment's sale of vacation ownership products revenue dropped by 21% to $309 million in Q2 2024 from $391 million in Q2 2023[151] - Vacation Ownership segment's cost of vacation ownership products decreased by 42% to $38 million in Q2 2024 from $66 million in Q2 2023[151] - Consolidated contract sales for Q2 2024 were $449 million, a 1% decrease compared to $453 million in Q2 2023[154] - Total contract sales for Q2 2024 were $452 million, a 2% decrease compared to $462 million in Q2 2023[154] - The company increased its sales reserve by $70 million in Q2 2024 to reflect higher expected cumulative loss rates for vacation ownership notes receivable[156] - The company expects full-year 2024 contract sales to reflect lower VPG for the second half of 2024, partially offset by tour growth in first-time buyer tours[156] Rental and Resort Performance - Resort occupancy for Q2 2024 was 90.1%, a 1.4 percentage point increase compared to 88.7% in Q2 2023[161] - Transient keys rented grew 5% to 575,704 in Q2 2024 from 549,329 in Q2 2023[162] - Average transient rate decreased 7% to $245 in Q2 2024 from $263 in Q2 2023[162] - Rental occupancy improved by 3.6 percentage points to 74.4% in Q2 2024[162] Financial Position and Debt - The company's corporate debt, net of cash and equivalents, to Adjusted EBITDA ratio was 4.4 as of June 30, 2024, above the targeted range of 2.5 to 3.0, with a goal to reduce this ratio to 3.0 by the end of 2025[182] - In the second quarter of 2024, the company amended the Corporate Credit Facility to provide for a new $800 million term loan facility scheduled to mature on April 1, 2031[182] - The company has issued approximately $9.4 billion of debt securities in securitization transactions in the term ABS market since 2000[184] - As of June 30, 2024, $108 million of borrowings were outstanding under the Warehouse Credit Facility[186] - $71 million of gross vacation ownership notes receivable were eligible for securitization as of June 30, 2024[186] - The Revolving Corporate Credit Facility provides for up to $750 million of aggregate borrowings, with $175 million of borrowings and $32 million of letters of credit outstanding as of June 30, 2024[186] - Inventory spending for the six months ended June 30, 2024 was $63 million, compared to $41 million for the same period in 2023[189] - Vacation ownership notes receivable collections for the six months ended June 30, 2024 were $67 million (non-securitized) and $244 million (securitized), compared to $90 million and $218 million respectively for the same period in 2023[191] - The company repurchased 410,377 shares during the first half of 2024 at an average price of $88.99 per share, totaling $36 million[192] - Total future material cash requirements as of June 30, 2024 are $7.517 billion, including $3.541 billion in debt and $2.710 billion in securitized debt[195] - The company expects to pay quarterly dividends in the future, subject to board approval and financial conditions, with the last three dividends paid at $0.76 per share[193] - The company amended its Corporate Credit Facility in Q2 2024 to provide for a New Term Loan scheduled to mature on April 1, 2031, used to refinance a $784 million Term Loan[195] - Consolidated revenues for the six months ended June 30, 2024, were $2.335 billion, with expenses totaling $2.206 billion, resulting in a net income of $84 million[198] - Total assets as of June 30, 2024, amounted to $9.611 billion, with liabilities and equity also totaling $9.611 billion[198] - Cash and cash equivalents as of June 30, 2024, were $206 million, with restricted cash at $326 million[198] - Accounts and contracts receivable, net, stood at $251 million, while vacation ownership notes receivable, net, were $2.308 billion[198] - Property and equipment, net, were valued at $1.295 billion, and goodwill was reported at $3.117 billion[198] - Total liabilities as of June 30, 2024, were $7.239 billion, with MVW stockholders' equity at $2.372 billion[198] - As of December 31, 2023, total assets were $9.680 billion, with liabilities and equity also totaling $9.680 billion[199] - Cash and cash equivalents as of December 31, 2023, were $248 million, with restricted cash at $326 million[199] - Accounts and contracts receivable, net, as of December 31, 2023, were $385 million, while vacation ownership notes receivable, net, were $2.343 billion[199] - Property and equipment, net, as of December 31, 2023, were valued at $1.260 billion, and goodwill was reported at $3.117 billion[199] - 67% of the company's corporate debt ($2.0 billion) has a fixed interest rate, while 33% ($975 million) is variable as of June 30, 2024[204] - A 100 basis point increase in the benchmark rate on variable-rate debt would result in an annual cash interest increase of $8 million[204] - Vacation ownership notes receivable (nonsecuritized) have an average interest rate of 12.0% and a total carrying value of $402 million[204] - Securitized vacation ownership notes receivable have an average interest rate of 13.4% and a total carrying value of $1.906 billion[204] - Securitized debt has an average interest rate of 4.8% and a total carrying value of ($2.124 billion)[204] - The Term Loan has an average interest rate of 7.6% and a total carrying value of ($800 million)[204] - The Revolving Corporate Credit Facility has an average interest rate of 7.4% and a total carrying value of ($175 million)[204] - The 2028 Notes have an average interest rate of 4.8% and a total carrying value of ($350 million)[204] - The 2029 Notes have an average interest rate of 4.5% and a total carrying value of ($500 million)[204] - The 2026 Convertible Notes have an average interest rate of 0.0% and a total carrying value of ($575 million)[204] Tax and Interest Rates - The effective tax rate for the three months ended June 30, 2024 was 22.0%, compared to 35.4% in the same period in 2023[179] - The effective tax rate for the six months ended June 30, 2024 was 35.2%, compared to 33.9% in the same period in 2023[180]

Core Insights - Marriott Vacations Worldwide Corporation (VAC) reported disappointing second-quarter 2024 results, with both earnings and revenues falling short of Zacks Consensus Estimates, showing a year-over-year decline [1][3] Earnings & Revenue Discussion - Adjusted earnings per share (EPS) were $1.10, missing the Zacks Consensus Estimate of $1.99 by 44.7%, down from $2.19 in the same quarter last year [3] - Quarterly revenues totaled $1,140 million, missing the consensus mark of $1,217 million by 6.3%, and declined 3% year-over-year [3] Segmental Performances - Vacation Ownership segment revenues were $1.08 billion, down 3.1% from $1.1 billion in the prior-year quarter [4] - Contract sales in the Vacation Ownership segment decreased by 1% year-over-year to $449 million, primarily due to a 6% decline in VPG and the impact of the Maui wildfires; excluding Maui, contract sales rose 3% [4] - Adjusted EBITDA for the Vacation Ownership segment was $180 million, down 26% from $245 million in the year-ago quarter [4] - Exchange & Third-Party Management segment revenues were $58 million, a decrease of 10.8% year-over-year, with adjusted EBITDA at $25 million, down 22% [5] Expenses & EBITDA - Total expenses increased by 3.5% year-over-year to $1.04 billion, while adjusted EBITDA was $157 million, down 29% from $222 million in the prior-year quarter [7] Balance Sheet - As of June 30, the company had cash and cash equivalents of $206 million, down from $248 million as of December 31, 2023; corporate debt stood at $3.1 billion and nonrecourse debt at $2.1 billion [8] Updated 2024 Outlook - Management revised contract sales guidance for 2024 to a range of $1,790-$1,825 million, down from $1,880-$1,930 million; adjusted free cash flow is now projected at $300-$340 million, down from $400-$450 million [9] - Adjusted EBITDA is estimated to be between $685 million and $715 million, reduced from the previous estimate of $760 million to $800 million [9] - Adjusted EPS expectations have been lowered to a range of $5.90 to $6.45, down from the prior estimate of $7.45 to $8.16 [10]