Marriott Vacations Worldwide(US:VAC)2025-11-05 21:22Financial Performance - Contract sales for Q3 2025 were $439 million, a decline of 4% compared to $459 million in Q3 2024[4][9] - Revenues excluding cost reimbursements decreased by 2% to $748 million from $766 million year-over-year[7] - The segment margin fell to 18.4%, down 840 basis points from 26.8% in the prior year[7] - Adjusted EBITDA for the quarter was $170 million, a 16% decrease from $232 million in Q3 2024[8][9] - Total revenues for Q3 2025 were $1,263 million, a decrease of 3% compared to $1,305 million in Q3 2024[30] - Adjusted EBITDA for Q3 2025 was $170 million, down 15% from $200 million in Q3 2024[30] - Adjusted net income attributable to common stockholders for Q3 2025 was $66 million, an 8% decrease from $73 million in Q3 2024[37] - Adjusted net income attributable to common stockholders is projected to be between $262 million and $279 million for 2025[15] - Adjusted EBITDA for the nine months ended September 30, 2025, was $565 million, a 4% increase from $545 million in the same period of 2024[53] Liquidity and Cash Flow - The company ended Q3 2025 with $1,428 million in liquidity, including $474 million in cash and cash equivalents[12] - Cash provided by operating activities for the nine months ended September 30, 2025, was $22 million, down from $105 million in the same period of 2024[63] - Cash and cash equivalents as of September 30, 2025, were $474 million, significantly up from $197 million at the end of 2024[61] - Adjusted free cash flow guidance for fiscal year 2025 is projected to be between $235 million and $270 million[64] Sales and Revenue Trends - Full-year 2025 contract sales guidance is set between $1,760 million and $1,780 million, revised from $1,740 million to $1,830 million[15] - Average revenue per interval for Q3 2025 was $37.91, down 3% from $38.93 in Q3 2024[32] - The average revenue per Interval International member for 2025 is projected to be $37.91, a decrease from $39.15 in 2023[68] - Revenue from vacation ownership products for the nine months ended September 30, 2025, was $1,083 million, a 3% increase from $1,048 million in the same period of 2024[53] - Total management and exchange revenue for the nine months ended September 30, 2025, was $648 million, a 2% increase from $633 million in the prior year[59] Expenses and Losses - The company reported a net loss attributable to common stockholders of $2 million, resulting in a diluted loss per share of $0.07[8] - Total expenses for Q3 2025 were $1,230 million, an increase from $1,157 million in Q3 2024[35] - Net loss attributable to common stockholders for Q3 2025 was $(2) million, a decline of 103% from $84 million in Q3 2024[30] - Development profit for Q3 2025 was $72 million, down 32% from $105 million in Q3 2024, resulting in a development profit margin of 20.2%[50] - Rental profit for the nine months ended September 30, 2025, was $102 million, a 21% decrease from $131 million in the same period of 2024[53] Strategic Initiatives - The company expects a $150 million to $200 million Adjusted EBITDA benefit from its modernization program by the end of 2026[5] - The company plans to continue focusing on modernization and restructuring efforts, with $53 million allocated for modernization in Q3 2025[40] - The company plans to continue focusing on strategic opportunities, including acquisitions and strengthening the balance sheet[80] Member and Market Metrics - The number of international members remained stable at 1,499, a 3% decrease from 1,545 in Q3 2024[32] - Total active Interval International members decreased to 1,545,638 in December 2024, down from 1,563,849 in December 2023, a decline of 1.2%[68] - Tours for 2024 totaled 432,716, an increase from 405,825 in 2023, representing a growth of 6.6%[68] Impairments and Adjustments - The company recorded a $31 million impairment charge in both Q3 2025 and Q3 2024[44] - The company began excluding amortization of cloud computing software implementation costs from Adjusted EBITDA for comparability purposes[75] - Adjusted EBITDA is used as an indicator of operating performance, reflecting the company's ability to service debt and fund capital expenditures[77] - Free Cash Flow and Adjusted Free Cash Flow are evaluated as liquidity measures, providing insights into cash generated after capital expenditures[80] - Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products[73]