Hilton Grand Vacations (HGV) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2024 were $1.284 billion, up from $1.019 billion in Q4 2023, impacted by a net deferral of $90 million[6][4] - Net income attributable to stockholders for Q4 2024 was $20 million, down from $68 million in Q4 2023, with adjusted net income at $49 million compared to $111 million[6][4] - Diluted EPS for Q4 2024 was $0.19, a decrease from $0.62 in Q4 2023, with adjusted diluted EPS at $0.49 compared to $1.01[6][4] - Adjusted EBITDA attributable to stockholders for Q4 2024 was $240 million, down from $270 million in Q4 2023, affected by a net deferral of $49 million[6][4] - Total revenues for the year ended December 31, 2024, reached $4,981 million, up from $3,978 million in 2023, marking a 25.2% increase[68] - Net income attributable to stockholders for the year was $313 million, with quarterly figures of $73 million, $80 million, $92 million, and $68 million respectively[1] - Adjusted EBITDA for the year totaled $1,005 million, with quarterly figures of $218 million, $248 million, $269 million, and $270 million respectively[1] - Total net income for the year ended December 31, 2024, was $60 million, compared to $313 million in 2023, indicating an 81% decrease[94] Cash Flow and Debt - Free cash flow for Q4 2024 was $48 million, compared to $(28) million for the same period in the prior year, with adjusted free cash flow at $883 million[18] - Cash and cash equivalents at the end of the period were $328 million, down from $589 million at the end of 2023, with total cash and cash equivalents including restricted cash at $766 million[71] - The company reported a significant increase in proceeds from non-recourse debt, totaling $944 million in Q4 2024, compared to $400 million in Q4 2023[71] - Net cash provided by operating activities for Q4 2024 was $105 million, compared to no cash provided in Q4 2023, while annual cash provided was $309 million versus $312 million in 2023[73] - As of Dec. 31, 2024, total cash and cash equivalents were $328 million, with total corporate debt of $4.6 billion at a weighted average interest rate of 6.14%[15] Sales and Membership - Total contract sales for Q4 2024 were $837 million, an increase of $265 million compared to Q4 2023[10] - Sales of VOIs, net increased to $450 million in Q4 2024 from $376 million in Q4 2023, representing a 19.6% growth[68] - The company reported a total of approximately 720,000 Club Members, indicating a strong customer base[39] - Total members increased to 723,968 by December 31, 2024, up from 528,789 in 2023, indicating a growth of 37%[84] - Contract sales for the three months ended December 31, 2024, reached $837 million, up from $572 million in 2023, marking a 46.5% increase[78] Profit Margins and Expenses - The company incurred $44 million in acquisition and integration-related expenses in Q4 2024, compared to $26 million in Q4 2023, with annual expenses rising to $237 million from $68 million[76] - The company reported a profit margin of 19.1% for Adjusted EBITDA in Q4 2024, down from 26.5% in Q4 2023, while the annual profit margin was 22.0% compared to 25.3% in 2023[76] - Real estate profit for the year ended December 31, 2024, was $539 million, down from $575 million in 2023[94] - Financing profit for Q4 2024 was $153 million, compared to $82 million in Q4 2023, reflecting an 86.6% increase[68] Future Outlook - The company expects full-year 2025 adjusted EBITDA attributable to stockholders to be in the range of $1.125 billion to $1.165 billion[4] - Forward-looking statements indicate management's expectations regarding future revenues, earnings, and cash flow, subject to various risks and uncertainties[31] - The company plans to continue focusing on strategic opportunities and market expansion in the vacation ownership sector[39] Other Financial Metrics - Interest expense for the year was $178 million, with quarterly expenses of $44 million, $44 million, $45 million, and $45 million respectively[1] - Income tax expense for the year amounted to $136 million, with quarterly expenses of $17 million, $35 million, $44 million, and $40 million respectively[1] - Depreciation and amortization for the year was $213 million, with quarterly figures of $51 million, $52 million, $53 million, and $57 million respectively[1] - Adjusted net income attributable to stockholders for Q4 2024 was $49 million, a decrease of 56% from $111 million in Q4 2023[93] - Adjusted diluted earnings per share for the year ended December 31, 2024, was $2.73, down from $3.63 in 2023, reflecting a 25% decline[93]