Marriott Vacations Worldwide(US:VAC)2025-05-08 13:22Part I. FINANCIAL INFORMATION Financial Statements Presents unaudited interim consolidated financial statements for Q1 2025, covering income, comprehensive income, balance sheets, cash flows, and stockholders' equity Interim Consolidated Statements of Income Q1 2025 total revenues reached $1,200 million, with net income attributable to common stockholders rising to $56 million, or $1.46 per diluted share Q1 2025 vs Q1 2024 Income Statement Highlights | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $1,200 million | $1,195 million | | Total Expenses | $1,071 million | $1,058 million | | Income Before Income Taxes | $102 million | $81 million | | Net Income | $57 million | $46 million | | Net Income Attributable to Common Stockholders | $56 million | $47 million | | Diluted Earnings Per Share | $1.46 | $1.22 | | Cash Dividends Declared Per Share | $0.79 | $0.76 | Interim Consolidated Statements of Comprehensive Income Comprehensive income attributable to common stockholders was $55 million for Q1 2025, primarily driven by net income Q1 2025 vs Q1 2024 Comprehensive Income | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Income | $57 million | $46 million | | Other Comprehensive Loss, Net of Tax | $(1) million | $(1) million | | Comprehensive Income Attributable to Common Stockholders | $55 million | $46 million | Interim Consolidated Balance Sheets As of March 31, 2025, total assets were $9,882 million, total liabilities $7,447 million, and total MVW stockholders' equity $2,435 million Balance Sheet Summary | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $9,882 million | $9,808 million | | Vacation ownership notes receivable, net | $2,446 million | $2,440 million | | Goodwill | $3,117 million | $3,117 million | | Total Liabilities | $7,447 million | $7,367 million | | Securitized debt, net | $2,147 million | $2,136 million | | Debt, net | $3,151 million | $3,089 million | | Total MVW Stockholders' Equity | $2,435 million | $2,442 million | Interim Consolidated Statements of Cash Flows Q1 2025 net cash provided by operating activities was $8 million, resulting in a $41 million decrease in cash, cash equivalents, and restricted cash Q1 2025 vs Q1 2024 Cash Flow Summary | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8 million | $3 million | | Net cash used in investing activities | $(18) million | $(69) million | | Net cash (used in) provided by financing activities | $(32) million | $43 million | | Change in cash, cash equivalents and restricted cash | $(41) million | $(24) million | Interim Consolidated Statements of Stockholders' Equity Total MVW stockholders' equity decreased to $2,435 million due to common stock repurchases and dividend payments, partially offset by net income Changes in Stockholders' Equity (Q1 2025) | Description | Amount (in millions) | | :--- | :--- | | Balance at December 31, 2024 | $2,442 | | Net income | $56 | | Repurchase of common stock | $(36) | | Dividends | $(27) | | Other (Share-based comp, currency adjustments) | $(10) | | Balance at March 31, 2025 | $2,435 | Notes to Financial Statements Provides detailed disclosures supporting financial statements, covering accounting policies, revenue, debt, equity, and business segments Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial performance, highlighting a 2% decrease in contract sales, a 3% increase in Adjusted EBITDA, and a new Strategic Business Operations initiative - In Q4 2024, the company launched a Strategic Business Operations office to accelerate growth and drive efficiencies, targeting $150 million to $200 million of run-rate benefits by the end of 2026. Expected one-time cash costs are approximately $100 million in each of 2025 and 2026157 Q1 2025 Key Operating Statistics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Consolidated contract sales | $420 million | $428 million | (2%) | | VPG | $3,979 | $4,129 | (4%) | | Tours | 97,998 | 96,579 | 1% | | Total active members (end of period) | 1.538 million | 1.566 million | (2%) | Adjusted EBITDA Reconciliation Summary | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $56 million | $47 million | | EBITDA | $179 million | $160 million | | Adjusted EBITDA | $192 million | $187 million | | Adjusted EBITDA Margin | 23.2% | 23.2% | - As of March 31, 2025, the company's corporate debt, net of cash and equivalents, to Adjusted EBITDA ratio was 4.1, which is above its targeted range of 2.5 to 3.0216 Quantitative and Qualitative Disclosures About Market Risk Market risk exposure remains largely unchanged, with 67% of corporate debt fixed-rate and a 100 basis point rate increase impacting annual cash interest by $8 million - At March 31, 2025, 33% (approximately $984 million) of the company's corporate debt had a variable interest rate243 - A 100 basis point increase in the underlying benchmark rate on variable-rate debt would increase annual cash interest by approximately $8 million243 Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level245 - No material changes were made to the company's internal control over financial reporting during the first quarter of 2025246 Part II. OTHER INFORMATION Legal Proceedings The company is subject to various legal claims, but management believes they will not materially harm financial position or results of operations - The company is involved in legal proceedings typical for its business operations but does not currently expect them to have a material adverse effect247 Risk Factors No material changes to risk factors except for a new one concerning global macroeconomic uncertainty and its potential impact on operations - A new risk factor was added regarding the uncertainty in the global macroeconomic environment, which could be created by rapid governmental policy and regulatory changes, potentially impacting business operations and financial performance249 Unregistered Sales of Equity Securities and Use of Proceeds During Q1 2025, the company repurchased 496,484 shares for $36 million, with $347 million remaining available for future repurchases Q1 2025 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | 98,932 | $86.14 | ~$8.5 | | Feb 2025 | 0 | N/A | $0 | | Mar 2025 | 397,552 | $69.39 | ~$27.6 | | Total Q1 2025 | 496,484 | $72.73 | ~$36 | - As of March 31, 2025, $347.1 million remained available for share repurchases under the program authorized through December 31, 2025251 Other Information No directors or Section 16 officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or Section 16 officers adopted or terminated Rule 10b5-1 trading plans during Q1 2025252 Exhibits Lists all documents filed as part of the Form 10-Q, including certifications and XBRL data, and incorporates previously filed documents by reference