Hilton Grand Vacations (HGV)2025-05-01 12:08Financial Performance - Total revenues for Q1 2025 were $1.148 billion, slightly down from $1.156 billion in Q1 2024, impacted by a net deferral of $126 million[4]. - Net loss attributable to stockholders for Q1 2025 was $(17) million, compared to $(4) million in Q1 2024, with adjusted net income at $9 million versus $99 million in the prior year[4]. - Diluted EPS for Q1 2025 was $(0.17), compared to $(0.04) for Q1 2024, while adjusted diluted EPS was $0.09 compared to $0.95 in the same period last year[4]. - Adjusted EBITDA attributable to stockholders for Q1 2025 was $180 million, down from $273 million in Q1 2024, affected by a net deferral of $68 million[4]. - Free cash flow for Q1 2025 was $6 million, compared to $(19) million for the same period in the prior year, while adjusted free cash flow was $185 million compared to $(374) million in Q1 2024[20]. - Adjusted EBITDA for Q1 2025 was $185 million, down 33% from $276 million in Q1 2024, resulting in an adjusted EBITDA profit margin of 16.1%[74]. - The adjusted net income attributable to stockholders dropped to $9 million in Q1 2025 from $99 million in Q1 2024, a decrease of 90.91%[90]. Sales and Revenue Metrics - Total contract sales for Q1 2025 were $721 million, a 14% increase compared to Q1 2024, or 10% on a pro forma basis[4]. - Sales of VOIs, net for Q1 2025 were $378 million, a decrease of 13.7% compared to $438 million in Q1 2024[68]. - Real estate sales and financing revenue decreased to $645 million in Q1 2025 from $687 million in Q1 2024, reflecting a decline of 6.1%[73]. - The total revenues from rental and ancillary services rose to $187 million in Q1 2025, compared to $181 million in Q1 2024, marking a 3.31% increase[85]. - Rental revenues for Q1 2025 increased to $174 million from $169 million in Q1 2024, representing a growth of 2.96%[85]. Cash and Liquidity - Total cash and cash equivalents as of March 31, 2025, were $259 million, with total restricted cash at $311 million[17]. - Cash and cash equivalents decreased to $259 million as of March 31, 2025, down from $328 million at the end of 2024[67]. - Net cash provided by operating activities for Q1 2025 was $38 million, compared to $0 million in Q1 2024[69]. Operational Metrics - The estimated value of the total contract sales pipeline is $13.2 billion, with $10.3 billion related to inventory currently available for sale[14]. - Tour flow increased to 174,525 in Q1 2025, compared to 174,138 in Q1 2024, indicating a growth in customer engagement[76]. - Volume per guest (VPG) is an important operating measure, calculated by dividing contract sales by tour flow, indicating sales process effectiveness[62]. - Consolidated net owner growth (NOG) for the twelve months ended March 31, 2025, was 0.9%, down from 2.0% in the previous year[82]. Guidance and Future Outlook - The company is reiterating its full-year 2025 Adjusted EBITDA guidance of $1.125 billion to $1.165 billion, excluding deferrals and recognitions[4]. - The company anticipates future growth driven by new product developments and market expansions, although specific figures were not disclosed[32]. - Forward-looking statements indicate expectations for revenue and earnings growth, contingent on market conditions and operational performance[32]. Expenses and Costs - Interest expense for the year totaled $329 million, with quarterly expenses of $79 million, $87 million, $84 million, and $79 million[28]. - Acquisition and integration-related expenses for the year amounted to $237 million, with quarterly expenses of $109 million, $48 million, $36 million, and $44 million[28]. - The total cost of VOI sales decreased to $25 million in Q1 2025 from $48 million in Q1 2024, a reduction of 47.92%[87]. - Acquisition and integration-related expenses were $28 million in Q1 2025, significantly lower than $109 million in Q1 2024[90]. Membership and Customer Base - The company reported a total of 725,000 Club Members, indicating a strong customer base for its vacation ownership offerings[39].