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]

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]