Summary of Marriott Vacations Worldwide (VAC) FY Conference Call Company Overview - **Company**: Marriott Vacations Worldwide (VAC) - **Date of Conference**: June 03, 2025 Key Industry Insights - **Cyclicality of Timeshare Business**: Timeshare purchases are discretionary but viewed as long-term investments in future vacations. Despite macroeconomic volatility, the company reported only a 2% decline in vacation purchase growth (VPG) for first-time buyers and owners, indicating continued consumer interest in long-term vacation investments [2][12] - **Post-COVID Consumer Behavior**: There is a notable shift towards prioritizing experiences over material goods, leading to high occupancy rates of over 90% across vacation ownership resorts [4] Financial Performance and Business Model - **Recurring Revenue**: Approximately 40% of EBITDA is recurring, with growth expected in financing profits and management fees despite higher securitization rates [6] - **Sales and Promotions**: The company has implemented promotional incentives to drive demand, particularly for first-time buyers, resulting in an increase in their mix of first-time buyers compared to competitors [7][8] - **Occupancy Rates**: The company maintains high occupancy rates, with resorts expected to remain over 90% occupied throughout the year [4] Consumer Demographics and Trends - **Target Demographics**: The average household income of customers is around $275,000, with a self-reported net worth of approximately $1 million. About 60% of first-time buyers are from the millennial and Gen X demographics [16][15] - **Product Evolution**: The timeshare product has evolved to include more flexible options, appealing to younger consumers and families, which helps maintain relevance across generations [13][14] Operational Efficiency and Cost Management - **Modernization Initiatives**: The company is targeting an incremental EBITDA of $150 million to $200 million through modernization efforts, with a focus on improving operational efficiency and agility [29] - **Cost of Vacation Ownership Interest (VOI)**: The cost of VOI has been managed through a mix of repurchased inventory and new inventory, with expectations of higher product costs in the future [31][34] Credit and Delinquency Management - **Delinquency Rates**: Delinquency rates have improved due to proactive outreach and technology enhancements, with maintenance fee increases kept to a low 3% for 2025 [38][39] - **FICO Scores**: The average FICO score for originations is approximately 735, reflecting a focus on higher-quality credit risk since the acquisition of ILG in 2018 [42] Capital Allocation and Free Cash Flow - **Free Cash Flow Conversion**: Historically, free cash flow conversion has been above 50%, but is expected to be in the low 40% range this year due to higher inventory spending [49] - **Asset Sales**: The company is actively selling non-core assets, such as the Sheraton Kauai Hotel, to focus on its core business and improve cash flow [55] Conclusion Marriott Vacations Worldwide is navigating a complex market environment with a focus on enhancing customer experience, maintaining high occupancy rates, and improving operational efficiencies. The company is well-positioned to leverage its strong brand and evolving product offerings to attract a diverse customer base while managing costs and improving financial performance.

Core Insights - Marriott Vacations Worldwide Corporation reported better-than-expected first-quarter adjusted EPS results and raised its FY25 adjusted EPS guidance [1][2] Financial Performance - The company reported quarterly earnings of $1.66 per share, exceeding the analyst consensus estimate of $1.49 per share [1] - Quarterly sales were $1.20 billion, slightly missing the analyst consensus estimate of $1.21 billion [1] Guidance and Strategy - Marriott Vacations raised its FY2025 adjusted EPS guidance from a range of $6.30-$7.00 to $6.40-$7.10 [2] - The CEO highlighted strong first-time buyer sales and Adjusted EBITDA growth, emphasizing the effectiveness of the leisure-focused business model [2] Market Reaction - Following the earnings announcement, Marriott Vacations shares gained 0.5%, trading at $64.63 [3] - Analysts adjusted their price targets for Marriott Vacations after the earnings report [3] Analyst Ratings - Goldman Sachs analyst Lizzie Dove maintained a Sell rating on Marriott Vacations, raising the price target from $48 to $55 [5] - Mizuho analyst Ben Chaiken maintained an Outperform rating, lowering the price target from $112 to $105 [5]

Financial Data and Key Metrics Changes - Total company revenue increased year over year, enabling a 3% higher adjusted EBITDA [13][22] - Adjusted EBITDA reached $192 million, with margins remaining strong at 23% [15][22] - Total company contract sales declined 2% compared to the prior year, with first-time buyer sales increasing 6% year over year [14][22] Business Line Data and Key Metrics Changes - Development profit increased 4% compared to the prior year, with development margin increasing by 70 basis points [15] - Total company rental profit declined 10% year over year to $46 million, impacted by higher unsold maintenance fees and other variable costs [15] - Financing profit increased 6%, driven by higher interest income [15] Market Data and Key Metrics Changes - Resort occupancy ran over 90% in the first quarter, with strong forward bookings [6] - Nearly 70% of Marriott Vacations points reservations for stays at resorts were booked online, a significant increase from previous years [10] - Loan and maintenance fee delinquencies improved year over year, with a 60 basis point decrease [14] Company Strategy and Development Direction - The company is focused on modernization initiatives to accelerate revenue growth, reduce costs, and enhance operational efficiencies, targeting $150 million to $200 million in run rate benefits by the end of 2026 [5][12] - A comprehensive digital strategy is being implemented to increase product utilization and expand e-commerce [8] - The company plans to generate $75 million to $100 million of adjusted EBITDA benefits from revenue initiatives [20] Management's Comments on Operating Environment and Future Outlook - Management noted the current economic environment is volatile but consumer demand remains strong [12] - The company is confident in its updated contract sales guidance, expecting to see improvements in owner arrivals as the year progresses [7][12] - Management emphasized the importance of high-margin recurring revenue streams, which contribute around 40% of adjusted EBITDA [12][22] Other Important Information - The company ended the quarter with $865 million in liquidity and no corporate debt maturities until early 2026 [16] - Share buybacks increased, with $91 million returned to shareholders in the first quarter [18] - The company is actively working on disposing of non-core assets, including the Sheraton Kauai Resort [21] Q&A Session Summary Question: Can you talk about contract sales in March or April? - Contract sales were down about 4% in March and similar in April, but there was an increase in VPGs and contract sales for first-time buyers in April [26][27] Question: Can you elaborate on the cost savings mentioned? - The company expects $35 million in savings from modernization initiatives, with product costs being better than initially anticipated [28][30] Question: What is being done to drive tour flow? - The company is focused on driving tour flow through various initiatives and incentives, enhancing the value proposition for consumers [36] Question: Can you explain the inventory mix adjustment? - The inventory mix is being adjusted by selling different products and modulating the inventory to drive costs down [39][40] Question: How is the availability of new inventory? - The company is in a good position regarding inventory availability across all brands, with ongoing upgrades and buybacks [43] Question: What is the expectation for share repurchases going forward? - The company plans to balance share repurchases with getting back to target leverage, viewing shares as undervalued [46][48] Question: Can you discuss the non-core asset sales? - The company is working on selling excess assets, including a hotel in Kauai and retail space in Waikiki [56][57] Question: What is the trend in owner growth? - The company aims to drive owner growth above 35%, focusing on first-time buyers for long-term health [62][64]

Part I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) 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](index=3&type=section&id=Interim%20Consolidated%20Statements%20of%20Income) 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](index=4&type=section&id=Interim%20Consolidated%20Statements%20of%20Comprehensive%20Income) 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](index=5&type=section&id=Interim%20Consolidated%20Balance%20Sheets) 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](index=6&type=section&id=Interim%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=8&type=section&id=Interim%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) 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](index=9&type=section&id=Interim%20Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) 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](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 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 2026[157](index=157&type=chunk) 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 **3.0**[216](index=216&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) 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 rate[243](index=243&type=chunk) - A 100 basis point increase in the underlying benchmark rate on variable-rate debt would increase annual cash interest by approximately **$8 million**[243](index=243&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) 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 level[245](index=245&type=chunk) - No material changes were made to the company's internal control over financial reporting during the first quarter of 2025[246](index=246&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) 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 effect[247](index=247&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) 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 performance[249](index=249&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) 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, 2025[251](index=251&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) 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 2025[252](index=252&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) Lists all documents filed as part of the Form 10-Q, including certifications and XBRL data, and incorporates previously filed documents by reference

Core Viewpoint - Marriott Vacations Worldwide Corporation (VAC) reported first-quarter 2025 results with earnings exceeding expectations while revenues fell short, leading to an 8.1% increase in share price after hours due to a positive earnings outlook for 2025 [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were $1.66, surpassing the Zacks Consensus Estimate of $1.56 by 6.4%, but down from $1.80 in the same quarter last year [2]. - Quarterly revenues reached $1.2 billion, missing the consensus estimate of $1.22 billion by 1.9%, but reflecting a year-over-year increase of 0.4% [2]. Segmental Performance - The Vacation Ownership segment generated revenues of $757 million, up from $730 million in the prior-year quarter [3]. - Total contract sales in the Vacation Ownership segment fell 2% year over year to $420 million, primarily due to a lower volume per guest, with first-time buyers contributing to the decline [4]. - Adjusted EBITDA for the Vacation Ownership segment was $221 million, a 4% increase from $213 million in the previous year, with an adjusted EBITDA margin of 29.2%, unchanged year over year [5]. - The Exchange & Third-Party Management segment saw revenues decline 9% year over year to $56 million [5]. Membership and Revenue Metrics - Total active interval international members decreased by 2% year over year to 1.54 million, with average revenue per member declining 4% to $39.94 [6]. - Adjusted EBITDA for this segment was $28 million, down 13% year over year, with an adjusted EBITDA margin contracting by 230 basis points to 49% [6]. Corporate Results - General and administrative expenses for Q1 totaled $61 million, down from $63 million in the prior-year quarter [7]. - Total expenses increased by 1.2% year over year to $1.07 billion [7]. - Adjusted EBITDA for the company was $192 million, up 3% from $187 million in the previous year [7]. Balance Sheet - As of March 31, 2025, cash and cash equivalents were $196 million, slightly down from $197 million at the end of 2024 [8]. - The company had $3 billion in corporate debt and $2 billion in non-recourse debt related to securitized notes receivable [9]. 2025 Outlook - Management revised the contract sales expectation for 2025 to a range of $1.74-$1.83 billion, down from the previous estimate of $1.85-$1.925 billion [10]. - Adjusted EBITDA is now expected to be between $750 million and $780 million, with adjusted income anticipated in the range of $250 to $280 million [10]. - Adjusted EPS is projected to be between $6.40 and $7.10, an increase from the prior expectation of $6.30 and $7.00 [10]. - Adjusted free cash flow is expected to be in the range of $270-$330 million, down from the previous estimate of $290-$350 million [11].

Business Overview - The company operates with iconic brands, encompassing approximately 120 resorts and serving around 700,000 owner families[8] - The company's exchange network includes over 1.5 million Interval International members and access to over 3,200 exchange resorts across more than 90 countries and territories[8] - Vacation Ownership contributes approximately 90% of the company's Adjusted EBITDA, while Exchange and Third-Party Management contribute about 10%[8] - Approximately 40% of the company's Adjusted EBITDA contribution comes from recurring sources[12] Financial Performance and Projections - The company anticipates Adjusted EBITDA to be between $750 million and $780 million for the full year 2025[66] - The company projects Adjusted Free Cash Flow to be between $270 million and $330 million for 2025[66] - The company expects to generate $150 million to $200 million in annualized Adjusted EBITDA benefits by 2026 through strategic modernization initiatives[71] Growth Strategies - The company's strategic modernization is projected to drive $150 million to $200 million in Adjusted EBITDA benefits, split evenly between costs and efficiencies and accelerating revenue[29] - The company is focused on driving Vacation Ownership growth by leveraging strong license relationships to grow contract sales[49] - The company is adding new sales centers in premium locations to grow, with planned openings in Khao Lak, Nashville, Charleston, Nusa Dua, Bali, Orlando and Savannah between 2025 and 2028[53] - The company is investing in digital capabilities, with 14% of 2024 contract sales from North America Marriott brands being sold non-traditionally, including virtual sales, 67% of 2024 points booked digitally, and 49% of FY 2024 tour packages sold digitally[55]

Core Insights - Marriott Vacations Worldwide reported revenue of $1.2 billion for the quarter ended March 2025, reflecting a year-over-year increase of 0.4% [1] - The company's EPS was $1.66, down from $1.80 in the same quarter last year, but exceeded the consensus estimate of $1.56 by 6.41% [1] - The revenue fell short of the Zacks Consensus Estimate of $1.22 billion, resulting in a surprise of -1.93% [1] Revenue Breakdown - Cost reimbursements revenue was $373 million, below the average estimate of $402 million, marking a year-over-year decline of 4.6% [4] - Rental revenue reached $169 million, surpassing the average estimate of $162.88 million, with a year-over-year increase of 7% [4] - Management and exchange revenue was $215 million, slightly below the average estimate of $216.29 million, showing a year-over-year growth of 1.9% [4] - Sales of vacation ownership products generated $355 million, exceeding the average estimate of $347.95 million, with a year-over-year increase of 0.9% [4] - Financing revenue was $88 million, above the average estimate of $86 million, reflecting a year-over-year growth of 6% [4] Stock Performance - Shares of Marriott Vacations Worldwide have returned +14.1% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Marriott Vacations Worldwide reported quarterly earnings of $1.66 per share, exceeding the Zacks Consensus Estimate of $1.56 per share, but down from $1.80 per share a year ago, indicating a 7.78% year-over-year decline [1] - The company posted revenues of $1.2 billion for the quarter, matching the previous year's revenue but missing the Zacks Consensus Estimate by 1.93% [2] Financial Performance - The earnings surprise for the latest quarter was 6.41%, and the company has surpassed consensus EPS estimates three times over the last four quarters [1][2] - The company had a previous quarter earnings expectation of $1.51 per share but reported $1.86, resulting in a surprise of 23.18% [1] - The current consensus EPS estimate for the upcoming quarter is $1.67, with expected revenues of $1.25 billion, and for the current fiscal year, the EPS estimate is $6.54 on revenues of $5.17 billion [7] Stock Performance - Marriott Vacations Worldwide shares have declined approximately 35.4% since the beginning of the year, compared to a 4.7% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Outlook - The Leisure and Recreation Services industry, to which Marriott Vacations Worldwide belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

DRAFT 7 Exhibit 99.1 Neal Goldner Investor Relations 407-206-6149 neal.goldner@mvwc.com Cameron Klaus Global Communications 407-513-6606 cameron.klaus@mvwc.com Marriott Vacations Worldwide Reports First Quarter 2025 Financial Results ORLANDO, Fla. – May 7, 2025 – Marriott Vacations Worldwide Corporation (NYSE: VAC) ("MVW," the "Company," "we" or "our") reported financial results for the first quarter of 2025. First Quarter 2025 Highlights "We had a strong first quarter growing first time buyer sales and Adj ...

Financial Data and Key Metrics Changes - The company reported a 7% year-over-year increase in contract sales for Q4 2024, with first-time buyer sales growing by 9% [22][39] - Adjusted EBITDA for the total company decreased by 1% to $185 million, while adjusted EBITDA in the Vacation Ownership segment was $221 million with a margin of 27% [26][27] - The company ended the year with leverage of approximately four times, higher than the long-term goal of three times, but still manageable [28] Business Line Data and Key Metrics Changes - In the Vacation Ownership segment, rental occupancy increased by 300 basis points, and profit increased by 20% compared to the previous year [26] - The Exchange and Third-Party Management segment saw adjusted EBITDA decline by $9 million year-over-year, primarily due to lower profit at Aqua Aston and reduced transactions at Interval [27] Market Data and Key Metrics Changes - System-wide resort occupancy reached 90%, with Hawaii occupancy at 95% [8] - Research indicates that 80% of American adults plan to take a vacation this year, with international travelers to the U.S. expected to increase, particularly from the Asia Pacific region [14] Company Strategy and Development Direction - The company is focused on business modernization to enhance operational efficiencies and accelerate revenue growth, expecting to generate an additional $150 million to $200 million in annualized adjusted EBITDA by the end of 2026 [17][35] - New developments include a 168-unit Marriott Vacation Club in Downtown Nashville and expansion plans in Thailand and Bali [12][10] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are prioritizing leisure travel, which has been particularly pronounced post-pandemic [7] - The company anticipates contract sales growth in the range of 2% to 6% for the upcoming year, with a focus on enhancing customer experiences through technology and data analytics [29][19] Other Important Information - The company plans to spend $90 million to $95 million on reacquired inventory this year, which is below replacement cost [28] - The company has over $900 million in liquidity and no corporate debt maturities until early 2026 [28] Q&A Session Summary Question: Is the trend of new owner mix expected to continue in 2025? - Management confirmed the goal is to continue growing first-time buyers, which contributed to contract sales growth in Q4 [45] Question: Does the $90 million to $95 million of inventory repurchase correlate with the increased reserve taken last year? - Management explained that the repurchase relates to owners not using their vacations as much and maintenance fee defaults [48] Question: Can you clarify the headwinds for 2025 EBITDA guidance? - Management indicated a $15 million to $20 million increase in variable compensation and a $10 million hard comp from rental benefits in 2024 that won't recur in 2025 [60][62] Question: How did the modernization initiatives come about? - Management stated that the initiatives were driven by the need to accelerate growth and improve efficiencies, particularly in technology [72][75]