Financial Data and Key Metrics Changes - Reported contract sales increased by 10% to $834 million, with adjusted EBITDA at $278 million and margins excluding reimbursements at 23% [10][25] - Total revenue excluding cost reimbursement grew by 9% to $1.2 billion [25] - Adjusted free cash flow for the quarter was $135 million, with expectations to convert 65% to 70% of adjusted EBITDA into cash flow for the year [16][32] Business Line Data and Key Metrics Changes - The owner business outperformed, contributing to double-digit contract sales growth driven by strong volume per guest (VPG) expansion [7][10] - The member count reached nearly 725,000, with over 233,000 HGV Max members, including nearly 21,000 legacy Bluegreen members [12][30] - Rental business demand remained stable, with revenue flat at $195 million, although Las Vegas experienced softness due to lower international and convention business [14][30] Market Data and Key Metrics Changes - Occupancy remained stable at 83%, with consolidated arrivals in the third quarter equal to the prior year [11] - The company added over 20,000 packages to its pipeline, more than doubling the additions from the first quarter [11] - The annualized default rate for the consolidated portfolio stood at 10.2%, consistent with the first quarter [29] Company Strategy and Development Direction - The company is focused on enhancing the value proposition of HGV Max and driving growth in membership [12][20] - Strategic inventory recapture is expected to support long-term cash flow growth and improve the embedded value of the owner base [13] - The company is committed to returning excess cash to shareholders, with a goal of returning $600 million this year [17][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, citing stable consumer demand and positive performance indicators [8][47] - The company anticipates high single-digit contract sales growth for the year, with flat tour growth expected [27] - Management noted that while the policy landscape remains volatile, the consumer environment has been relatively stable [8][48] Other Important Information - The company successfully closed a JPY 9.5 billion timeshare securitization in Japan, marking a significant milestone [15][23] - The integration of Bluegreen is on track, with nearly achieved cost-saving targets [19][26] - The company repurchased 4.1 million shares for $150 million during the quarter, with an additional $29 million spent on share repurchases in July [31][32] Q&A Session Summary Question: Impact of higher fee-for-service mix on EBITDA - The fee-for-service mix was higher in Q2 compared to Q1, which may have a slight drag on EBITDA as it retains only a commission for those sales [36][40] Question: Demand side from Bluegreen upgrade sales to MAX - The upgrade curve for MAX has improved by 20% since its launch, with strong performance from Bluegreen members [45][46] Question: Performance of new owner sales - New owner sales have stabilized, with a 10% increase in the new buyer pipeline and 30% of transactional sales coming from new buyers [54][55] Question: Las Vegas market outlook - Visitations in Las Vegas are down, but the company can strategically allocate room nights to mitigate softness in the market [60][62] Question: Loan book performance - The loan book remains in good shape, with stable to improving delinquency rates across brands [66][68] Question: VPG growth expectations - VPG growth is expected to remain strong in Q3 but may decline in Q4 due to tough comparisons from the previous year [69][70]