Marriott Vacations Worldwide(US:VAC)2024-11-06 21:18Financial 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]