Hilton Grand Vacations (US:HGV)2025-10-30 18:05Financial Performance - Total revenues for the three months ended September 30, 2025, were $1,300 million, a decrease of $6 million (0.5%) compared to $1,306 million in 2024[174]. - Net income attributable to stockholders for the three months ended September 30, 2025, was $25 million, a decrease of $4 million (13.8%) from $29 million in 2024, while for the nine months, it increased by $6 million (22.2%) to $33 million from $27 million[195]. - Adjusted EBITDA for the three months ended September 30, 2025, was $249 million, a decrease of $58 million (18.9%) from $307 million in 2024, and for the nine months, it was $672 million, down $177 million (20.8%) from $849 million[195]. - The company reported a decrease in real estate profit of 27.5% to $121 million in Q3 2025 from $167 million in Q3 2024[197]. - Total Adjusted EBITDA attributable to stockholders for the nine months ended September 30, 2025, was $658 million, down 21.5% from $838 million in the same period of 2024[198]. Sales and Contract Performance - Contract sales increased by $130 million (16.7%) for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to a 14.7% increase in VPG and new inventory available for sale[169]. - For the nine months ended September 30, 2025, contract sales increased by $297 million (13.4%) compared to the same period in 2024, driven by a similar increase in VPG and new inventory[170]. - 73% of contract sales for the nine months ended September 30, 2025, were to existing owners, an increase from 70% in the same period of 2024[149]. - Sales of VOIs, net decreased by $77 million (14.0%) for the three months ended September 30, 2025, and by $139 million (9.5%) for the nine months ended September 30, 2025[169]. - Net Sales of VOIs recognitions dropped by $148 million for the three months ended September 30, 2025, compared to an increase of $49 million in 2024[172]. Membership and Market Presence - The company had over 720,000 members across its Club offerings as of September 30, 2025, providing access to approximately 9,000 properties[140]. - The company completed the acquisition of Bluegreen Vacations Holding Corporation on January 17, 2024, expanding its market presence[137]. - The company operates approximately 100 sales distribution centers in various domestic and international locations[147]. - The company has entered into exclusive marketing agreements with brands like Bass Pro and Choice Hotels to enhance its marketing and sales activities[148]. Financing and Debt Management - Financing propensity for the nine months ended September 30, 2025, was 66%, down from 69% in the same period of 2024[150]. - The weighted-average FICO score for loans to U.S. and Canadian borrowers was 734 for the nine months ended September 30, 2025, compared to 740 in 2024[151]. - Interest expense decreased by $5 million (6.0%) for the three months and $15 million (6.0%) for the nine months ended September 30, 2025, due to a reduction in overall debt balance and interest rates[193]. - The company had $632 million remaining borrowing capacity under the revolver facility as of September 30, 2025[205]. - The company completed a securitization of approximately $300 million of gross timeshare financing receivables in June 2025[205]. Revenue and Expense Analysis - Real estate profit margin decreased to 21.3% for the three months ended September 30, 2025, down from 26.4% in 2024[175]. - Financing revenue increased by $23 million (21.9%) for the three months ended September 30, 2025, compared to $105 million in 2024[182]. - General and administrative expenses rose by $14 million (31.8%) for the three months and $15 million (10.2%) for the nine months ended September 30, 2025, mainly due to employee-related costs[191]. - Rental revenues for the three months ended September 30, 2025, were $173 million, a 1.2% increase from $171 million in 2024, while for the nine months, revenues were $527 million, also a 1.2% increase from $521 million[188]. - Rental and ancillary services expenses increased by $12 million for the three months and $60 million for the nine months ended September 30, 2025, primarily due to maintenance fees[190]. Cash Flow and Shareholder Returns - Operating activities generated $133 million in net cash for the nine months ended September 30, 2025, a decrease of $71 million compared to $204 million in the same period of 2024[203]. - The company reported a total of $234 million in inventory-related purchase commitments to be fulfilled over the next 10 years as of September 30, 2025[202]. - During the nine months ended September 30, 2025, the company repurchased 11 million shares for $450 million[205]. - The company approved a new share repurchase program for up to $600 million over two years, with $578 million remaining under this plan as of September 30, 2025[210]. - As of September 30, 2025, total cash and cash equivalents were $215 million, with restricted cash of $328 million[205].