ORLANDO, Fla., Oct. 31, 2022 /PRNewswire/ — Marriott Holidays Worldwide Company (NYSE: VAC) (the “Firm”) reported third quarter 2022 monetary outcomes.
Within the third quarter of 2022, in reference to the unification of the Firm’s Marriott-, Westin-, and Sheraton-branded trip possession merchandise below the Abound by Marriott Holidays program, the Firm aligned its contract phrases for the sale of trip possession merchandise, ensuing within the potential acceleration of income from the sale of Marriott-branded trip possession pursuits. As well as, the Firm aligned its reserve methodology on trip possession notes receivable for these manufacturers, leading to a lower within the reserve for the acquired notes offset by a rise within the reserve for the originated notes. Collectively, these modifications are hereinafter known as the “Alignment.” On account of the Alignment, the Firm reported a further $33 million of Web earnings attributable to frequent shareholders and a further $44 million of Adjusted EBITDA through the quarter. The tables and monetary schedules beneath illustrate the affect of the Alignment on the Firm’s reported outcomes.
Third Quarter 2022 Highlights:
- Consolidated Trip Possession contract gross sales had been $483 million, a 27% enhance in comparison with the third quarter of 2021, and VPG elevated 1% to $4,353.
- Web earnings attributable to frequent shareholders was $109 million, or $2.53 totally diluted earnings per share; excluding the affect of the Alignment, internet earnings attributable to frequent shareholders was $76 million, or $1.79 totally diluted earnings per share.
- Adjusted internet earnings attributable to frequent shareholders was $131 million, or $3.02 adjusted totally diluted earnings per share; excluding the affect of the Alignment, adjusted internet earnings attributable to frequent shareholders was $98 million, or $2.28 adjusted totally diluted earnings per share.
- Adjusted EBITDA was $284 million; excluding the affect of the Alignment, Adjusted EBITDA was $240 million, a rise of 17% in comparison with the prior 12 months.
- The Firm repurchased practically 1.7 million shares of its frequent inventory for $216 million through the quarter at a mean worth per share of $129.
“Regardless of the difficult macroeconomic backdrop, we had a really sturdy third quarter, rising contract gross sales by 27% in comparison with the prior 12 months pushed by sturdy tour development,” stated Stephen P. Weisz, chief government officer. “With continued development in our enterprise, we have returned greater than $600 million in money to shareholders this 12 months by means of a mixture of share repurchases and dividends.”
Third Quarter 2022 Outcomes
The tables beneath illustrate the affect of the Alignment on the Firm’s reported outcomes. Within the tables beneath “*” denotes non-GAAP monetary measures and “NM” is just not significant. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these various monetary measures and limitations on their use.
Consolidated
|
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Change |
|||||||||||||||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
|||||||||||||||||
|
($ in tens of millions) |
Income |
Reserve |
Mixed |
$ |
% |
$ |
% |
||||||||||||||
|
Web earnings attributable to frequent shareholders |
$ 109 |
$ (29) |
$ (4) |
$ (33) |
$ 76 |
$ 10 |
$ 99 |
NM |
$ 66 |
NM |
|||||||||||
|
Adjusted internet earnings attributable to frequent shareholders* |
$ 131 |
$ (29) |
$ (4) |
$ (33) |
$ 98 |
$ 70 |
$ 61 |
87 % |
$ 28 |
41 % |
|||||||||||
|
Adjusted EBITDA* |
$ 284 |
$ (39) |
$ (5) |
$ (44) |
$ 240 |
$ 205 |
$ 79 |
38 % |
$ 35 |
17 % |
|||||||||||
Trip Possession
|
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Change |
||||||||||||||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
||||||||||||||||
|
($ in tens of millions) |
Income |
Reserve |
Mixed |
$ |
% |
$ |
% |
|||||||||||||
|
Sale of trip possession merchandise |
$ 444 |
$ (46) |
$ 19 |
$ (27) |
$ 417 |
$ 330 |
$ 114 |
34 % |
$ 87 |
26 % |
||||||||||
|
Growth revenue |
$ 161 |
$ (39) |
$ 14 |
$ (25) |
$ 136 |
$ 93 |
$ 68 |
73 % |
$ 43 |
47 % |
||||||||||
|
Financing revenue |
$ 69 |
$ — |
$ (19) |
$ (19) |
$ 50 |
$ 47 |
$ 22 |
47 % |
$ 3 |
6 % |
||||||||||
|
Phase monetary outcomes attributable to frequent shareholders |
$ 270 |
$ (29) |
$ (4) |
$ (33) |
$ 237 |
$ 185 |
$ 85 |
46 % |
$ 52 |
29 % |
||||||||||
|
Phase margin |
33.5 % |
30.6 % |
28.6 % |
4.9 pts |
2.0 pts |
|||||||||||||||
|
Phase Adjusted EBITDA* |
$ 299 |
$ (39) |
$ (5) |
$ (44) |
$ 255 |
$ 215 |
$ 84 |
39 % |
$ 40 |
19 % |
||||||||||
|
Phase Adjusted EBITDA margin* |
37.1 % |
32.7 % |
33.2 % |
3.9 pts |
(0.5 pts) |
|||||||||||||||
Trade & Third-Occasion Administration
Revenues excluding price reimbursements decreased 3% within the third quarter of 2022 in comparison with the prior 12 months and elevated 11% excluding the sale of VRI Americas in April of 2022. Interval Worldwide lively members elevated 21% to 1.6 million and Common income per member decreased 9% in comparison with the prior 12 months as the brand new accounts Interval Worldwide added earlier this 12 months proceed to ramp up.
Phase monetary outcomes attributable to frequent shareholders had been $29 million within the third quarter of 2022 and Phase margin was 44%. Phase Adjusted EBITDA elevated $4 million to $39 million in comparison with the prior 12 months, with Phase Adjusted EBITDA margin growing 500 foundation factors in comparison with the third quarter of 2021 to 58%.
Company and Different
Basic and administrative prices elevated $8 million within the third quarter of 2022 in comparison with the prior 12 months primarily because of greater compensation and transformational initiative spending, together with procurement and synthetic intelligence capabilities.
Steadiness Sheet and Liquidity
The Firm ended the quarter with roughly $1.0 billion in liquidity, together with $294 million of money and money equivalents, $142 million of gross notes receivable that had been eligible for securitization, and $519 million of accessible capability below its revolving company credit score facility.
On the finish of the third quarter of 2022, the Firm had $2.7 billion of company debt and $1.8 billion of non-recourse debt associated to its securitized notes receivable.
Full Yr 2022 Outlook (in tens of millions, besides per share quantities)
The Monetary Schedules that comply with reconcile the non-GAAP monetary measures set forth beneath to the next full 12 months 2022 anticipated GAAP outcomes for the Firm.
The Firm is offering up to date steerage, which incorporates the affect of the Alignment as mirrored within the chart beneath, for the total 12 months 2022. Within the desk beneath “*” denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these various monetary measures and limitations on their use.
|
(in tens of millions, besides per share quantities) |
2022 Steering |
Influence of |
||||
|
Revenue earlier than earnings taxes attributable to frequent shareholders |
$564 |
to |
$579 |
$50 |
||
|
Web earnings attributable to frequent shareholders |
$390 |
to |
$400 |
$37 |
||
|
Earnings per share – diluted |
$8.76 |
to |
$8.98 |
$0.82 |
||
|
Web money, money equivalents and restricted money supplied |
||||||
|
by working actions |
$575 |
to |
$590 |
$— |
||
|
Contract gross sales |
$1,820 |
to |
$1,860 |
$— |
||
|
Adjusted EBITDA* |
$950 |
to |
$975 |
$50 |
||
|
Adjusted pretax internet earnings* |
$660 |
to |
$685 |
$50 |
||
|
Adjusted internet earnings attributable to frequent shareholders* |
$455 |
to |
$475 |
$37 |
||
|
Adjusted earnings per share – diluted* |
$10.20 |
to |
$10.64 |
$0.82 |
||
|
Adjusted free money circulation* |
$670 |
to |
$730 |
$— |
||
Non-GAAP Monetary Info
Non-GAAP monetary measures are reconciled and changes are proven and described in additional element within the Monetary Schedules that comply with. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these various monetary measures and limitations on their use. Along with the foregoing non-GAAP monetary measures, we current sure key metrics as efficiency measures that are additional described in our most up-to-date Annual Report on Type 10-Ok, and which can be up to date in our periodic filings with the U.S. Securities and Trade Fee.
Third Quarter 2022 Monetary Outcomes Convention Name
The Firm will maintain a convention name on November 1, 2022 at 8:30 a.m. ET to debate these monetary outcomes and supply an replace on enterprise circumstances. Members could entry the decision by dialing (877) 407-8289 or (201) 689-8341 for worldwide callers. A reside webcast of the decision may even be out there within the Investor Relations part of the Firm’s web site at ir.mvwc.com. An audio replay of the convention name can be out there for 30 days on the Firm’s web site.
About Marriott Holidays Worldwide Company
Marriott Holidays Worldwide Company is a number one international trip firm that provides trip possession, alternate, rental and resort and property administration, together with associated companies, services. The Firm has over 120 trip possession resorts and roughly 700,000 proprietor households in a various portfolio that features a number of the most iconic trip possession manufacturers. The Firm additionally operates alternate networks and membership packages comprised of practically 3,200 affiliated resorts in over 90 international locations and territories, and supplies administration providers to different resorts and lodging properties. As a pacesetter and innovator within the trip business, the Firm upholds the very best requirements of excellence in serving its prospects, buyers and associates whereas sustaining unique, long-term relationships with Marriott Worldwide, Inc. and Hyatt Resorts Company for the event, gross sales and advertising and marketing of trip possession services. For extra data, please go to www.marriottvacationsworldwide.com.
Notice on forward-looking statements
This press launch and accompanying schedules include “forward-looking statements” throughout the that means of federal securities legal guidelines, together with statements about expectations for future development and projections for full 12 months 2022. Ahead-looking statements embrace all statements that aren’t historic details and may be recognized by means of forward-looking terminology such because the phrases “consider,” “anticipate,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “proceed,” “could,” “would possibly,” “ought to,” “might” or the detrimental of those phrases or comparable expressions. The Firm cautions you that these statements are usually not ensures of future efficiency and are topic to quite a few and evolving dangers and uncertainties that we could not be capable to predict or assess, resembling: the persevering with results of the COVID-19 pandemic or future well being crises, together with quarantines or different government-imposed journey or health-related restrictions; the size and severity of the COVID-19 pandemic or future well being crises, together with quick and longer-term impacts on shopper confidence and demand for journey, and the tempo of restoration following the COVID-19 pandemic or future well being crises or as efficient therapies or vaccines towards variants of the COVID-19 virus or future well being crises develop into extensively out there; variations in demand for trip possession and alternate services; employee absenteeism; worth inflation; international provide chain disruptions; volatility within the worldwide and nationwide economic system and credit score markets, together with because of the COVID-19 pandemic and the continued battle between Russia and Ukraine and associated sanctions and different measures; our skill to draw and retain our international workforce; aggressive circumstances; the supply of capital to finance development; the results of steps we now have taken and will proceed to take to cut back working prices and/or improve well being and cleanliness protocols at our resorts because of the COVID-19 pandemic; political or social strife; and different issues referred to below the heading “Danger Elements” in our most up-to-date Annual Report on Type 10-Ok, and which can be up to date in our periodic filings with the U.S. Securities and Trade Fee. All forward-looking statements on this press launch are made as of the date of this press launch and the Firm undertakes no obligation to publicly replace or revise any forward-looking assertion, whether or not because of new data, future occasions, or in any other case, besides as required by legislation. There could also be different dangers and uncertainties that we can not predict right now or that we presently don’t anticipate could have a fabric antagonistic impact on our monetary place, outcomes of operations or money flows. Any such dangers might trigger our outcomes to vary materially from these we categorical in forward-looking statements.
Monetary Schedules Comply with
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
|||
|
FINANCIAL SCHEDULES |
|||
|
QUARTER 3, 2022 |
|||
|
TABLE OF CONTENTS |
|||
|
Abstract Monetary Info |
A-1 |
||
|
Adjusted EBITDA by Phase |
A-2 |
||
|
Consolidated Statements of Revenue |
A-3 |
||
|
Revenues and Revenue by Phase |
A-5 |
||
|
Adjusted Web Revenue Attributable to Widespread Shareholders and Adjusted Earnings Per Share – Diluted |
A-9 |
||
|
Adjusted EBITDA |
A-10 |
||
|
Consolidated Contract Gross sales to Adjusted Growth Revenue |
A-11 |
||
|
Trip Possession and Trade & Third-Occasion Administration Phase Adjusted EBITDA |
A-13 |
||
|
Consolidated Steadiness Sheets |
A-14 |
||
|
Consolidated Statements of Money Flows |
A-15 |
||
|
2022 Outlook |
|||
|
Adjusted Web Revenue Attributable to Widespread Shareholders, Adjusted Earnings Per Share – Diluted |
|||
|
and Adjusted EBITDA |
A-17 |
||
|
Adjusted Free Money Circulate |
A-18 |
||
|
Quarterly Working Metrics |
A-19 |
||
|
Non-GAAP Monetary Measures |
A-20 |
||
|
A-1 |
||||||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||||||
|
SUMMARY FINANCIAL INFORMATION |
||||||||||||
|
(In tens of millions, besides VPG, excursions, complete lively members, common income per member and per share quantities) |
||||||||||||
|
(Unaudited) |
||||||||||||
|
Three Months Ended |
Change % |
9 Months Ended |
Change % |
|||||||||
|
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
|||||||||
|
Key Measures |
||||||||||||
|
Complete consolidated contract gross sales |
$ 483 |
$ 380 |
27 % |
$ 1,383 |
$ 968 |
43 % |
||||||
|
VPG |
$ 4,353 |
$ 4,300 |
1 % |
$ 4,544 |
$ 4,377 |
4 % |
||||||
|
Excursions |
104,000 |
84,098 |
24 % |
285,362 |
209,869 |
36 % |
||||||
|
Complete lively members (000’s)(1) |
1,591 |
1,313 |
21 % |
1,591 |
1,313 |
21 % |
||||||
|
Common income per member(1) |
$ 38.91 |
$ 42.95 |
(9 %) |
$ 122.30 |
$ 136.57 |
(10 %) |
||||||
|
GAAP Measures |
||||||||||||
|
Revenues |
$ 1,252 |
$ 1,052 |
19 % |
$ 3,468 |
$ 2,790 |
24 % |
||||||
|
Revenue earlier than earnings taxes and noncontrolling pursuits |
$ 169 |
$ 58 |
NM |
$ 437 |
$ 57 |
NM |
||||||
|
Web earnings (loss) attributable to frequent shareholders |
$ 109 |
$ 10 |
NM |
$ 303 |
$ (12) |
NM |
||||||
|
Earnings (loss) per share – diluted |
$ 2.53 |
$ 0.23 |
NM |
$ 6.68 |
$ (0.28) |
NM |
||||||
|
Non-GAAP Measures* |
||||||||||||
|
Adjusted EBITDA |
$ 284 |
$ 205 |
38 % |
$ 727 |
$ 438 |
66 % |
||||||
|
Adjusted pretax earnings |
$ 207 |
$ 118 |
74 % |
$ 508 |
$ 165 |
NM |
||||||
|
Adjusted internet earnings attributable to frequent shareholders |
$ 131 |
$ 70 |
87 % |
$ 343 |
$ 87 |
NM |
||||||
|
Adjusted earnings per share – diluted |
$ 3.02 |
$ 1.60 |
89 % |
$ 7.53 |
$ 2.01 |
NM |
||||||
|
Monetary Measures, Excluding the Influence of Alignment* |
||||||||||||
|
Revenues |
$ 1,225 |
$ 1,052 |
16 % |
$ 3,441 |
$ 2,790 |
23 % |
||||||
|
Revenue earlier than earnings taxes and noncontrolling pursuits |
$ 125 |
$ 58 |
NM |
$ 393 |
$ 57 |
NM |
||||||
|
Web earnings (loss) attributable to frequent shareholders |
$ 76 |
$ 10 |
NM |
$ 270 |
$ (12) |
NM |
||||||
|
Earnings (loss) per share – diluted |
$ 1.79 |
$ 0.23 |
NM |
$ 5.99 |
$ (0.28) |
NM |
||||||
|
Adjusted EBITDA |
$ 240 |
$ 205 |
17 % |
$ 683 |
$ 438 |
56 % |
||||||
|
Adjusted pretax earnings |
$ 163 |
$ 118 |
38 % |
$ 464 |
$ 165 |
NM |
||||||
|
Adjusted internet earnings attributable to frequent shareholders |
$ 98 |
$ 70 |
41 % |
$ 310 |
$ 87 |
NM |
||||||
|
Adjusted earnings per share – diluted |
$ 2.28 |
$ 1.60 |
43 % |
$ 6.83 |
$ 2.01 |
NM |
||||||
|
(1)Contains members on the finish of every interval for the Interval Worldwide alternate community solely. |
|||||||||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these various monetary |
|||||||||||
|
NM = Not significant. |
|||||||||||
|
A-2 |
||||||||||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||||||||||
|
ADJUSTED EBITDA BY SEGMENT |
||||||||||||||||
|
(In tens of millions) |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Change |
||||||||||||||
|
As |
Influence of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
||||||||||||
|
Income |
Reserve |
Mixed |
||||||||||||||
|
Trip Possession |
$ 299 |
$ (39) |
$ (5) |
$ (44) |
$ 255 |
$ 215 |
39 % |
19 % |
||||||||
|
Trade & Third-Occasion Administration |
39 |
— |
— |
— |
39 |
35 |
7 % |
7 % |
||||||||
|
Phase Adjusted EBITDA* |
338 |
(39) |
(5) |
(44) |
294 |
250 |
35 % |
17 % |
||||||||
|
Basic and administrative |
(54) |
— |
— |
— |
(54) |
(45) |
(17 %) |
(17 %) |
||||||||
|
Adjusted EBITDA* |
$ 284 |
$ (39) |
$ (5) |
$ (44) |
$ 240 |
$ 205 |
38 % |
17 % |
||||||||
|
9 Months Ended September 30, 2022 |
9 Months Ended September 30, 2021 |
Change |
||||||||||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
||||||||||||
|
Income |
Reserve |
Mixed |
||||||||||||||
|
Trip Possession |
$ 772 |
$ (39) |
$ (5) |
$ (44) |
$ 728 |
$ 465 |
66 % |
57 % |
||||||||
|
Trade & Third-Occasion Administration |
117 |
— |
— |
— |
117 |
113 |
2 % |
2 % |
||||||||
|
Phase Adjusted EBITDA* |
889 |
(39) |
(5) |
(44) |
845 |
578 |
54 % |
46 % |
||||||||
|
Basic and administrative |
(162) |
— |
— |
— |
(162) |
(140) |
(15 %) |
(15 %) |
||||||||
|
Adjusted EBITDA* |
$ 727 |
$ (39) |
$ (5) |
$ (44) |
$ 683 |
$ 438 |
66 % |
56 % |
||||||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these various monetary |
|
A-3 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
|
(In tens of millions, besides per share quantities) |
||||||||
|
(Unaudited) |
||||||||
|
Three Months Ended |
||||||||
|
September 30, 2022 |
September 30, 2021 |
|||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
||||||
|
REVENUES |
||||||||
|
Sale of trip possession merchandise |
$ 444 |
$ (27) |
$ 417 |
$ 330 |
||||
|
Administration and alternate |
198 |
— |
198 |
225 |
||||
|
Rental |
165 |
— |
165 |
130 |
||||
|
Financing |
74 |
— |
74 |
69 |
||||
|
Value reimbursements |
371 |
— |
371 |
298 |
||||
|
TOTAL REVENUES |
1,252 |
(27) |
1,225 |
1,052 |
||||
|
EXPENSES |
||||||||
|
Value of trip possession merchandise |
76 |
(2) |
74 |
71 |
||||
|
Advertising and marketing and gross sales |
207 |
— |
207 |
166 |
||||
|
Administration and alternate |
101 |
— |
101 |
138 |
||||
|
Rental |
126 |
— |
126 |
84 |
||||
|
Financing |
5 |
19 |
24 |
22 |
||||
|
Basic and administrative |
62 |
— |
62 |
54 |
||||
|
Depreciation and amortization |
33 |
— |
33 |
35 |
||||
|
Litigation expenses |
2 |
— |
2 |
2 |
||||
|
Royalty price |
28 |
— |
28 |
26 |
||||
|
Impairment |
1 |
— |
1 |
— |
||||
|
Value reimbursements |
371 |
— |
371 |
298 |
||||
|
TOTAL EXPENSES |
1,012 |
17 |
1,029 |
896 |
||||
|
Losses and different expense, internet |
(2) |
— |
(2) |
(31) |
||||
|
Curiosity expense |
(34) |
— |
(34) |
(41) |
||||
|
Transaction and integration prices |
(34) |
— |
(34) |
(27) |
||||
|
Different |
(1) |
— |
(1) |
1 |
||||
|
INCOME BEFORE INCOME TAXES AND |
||||||||
|
NONCONTROLLING INTERESTS |
169 |
(44) |
125 |
58 |
||||
|
Provision for earnings taxes |
(59) |
11 |
(48) |
(47) |
||||
|
NET INCOME (LOSS) |
110 |
(33) |
77 |
11 |
||||
|
Web earnings attributable to noncontrolling pursuits |
(1) |
— |
(1) |
(1) |
||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO |
||||||||
|
COMMON SHAREHOLDERS |
$ 109 |
$ (33) |
$ 76 |
$ 10 |
||||
|
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO |
||||||||
|
COMMON SHAREHOLDERS |
||||||||
|
Primary |
$ 2.76 |
$ (0.80) |
$ 1.96 |
$ 0.24 |
||||
|
Diluted |
$ 2.53 |
$ (0.74) |
$ 1.79 |
$ 0.23 |
||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes |
|||||||
|
NOTE: Earnings (loss) per share – Primary and Earnings (loss) per share – Diluted are calculated utilizing entire {dollars}. |
|||||||
|
A-4 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
|
(In tens of millions, besides per share quantities) |
||||||||
|
(Unaudited) |
||||||||
|
9 Months Ended |
||||||||
|
September 30, 2022 |
September 30, 2021 |
|||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
||||||
|
REVENUES |
||||||||
|
Sale of trip possession merchandise |
$ 1,179 |
$ (27) |
$ 1,152 |
$ 789 |
||||
|
Administration and alternate |
623 |
— |
623 |
638 |
||||
|
Rental |
438 |
— |
438 |
340 |
||||
|
Financing |
217 |
— |
217 |
196 |
||||
|
Value reimbursements |
1,011 |
— |
1,011 |
827 |
||||
|
TOTAL REVENUES |
3,468 |
(27) |
3,441 |
2,790 |
||||
|
EXPENSES |
||||||||
|
Value of trip possession merchandise |
216 |
(2) |
214 |
178 |
||||
|
Advertising and marketing and gross sales |
603 |
— |
603 |
439 |
||||
|
Administration and alternate |
330 |
— |
330 |
381 |
||||
|
Rental |
294 |
— |
294 |
247 |
||||
|
Financing |
49 |
19 |
68 |
64 |
||||
|
Basic and administrative |
187 |
— |
187 |
166 |
||||
|
Depreciation and amortization |
98 |
— |
98 |
112 |
||||
|
Litigation expenses |
7 |
— |
7 |
8 |
||||
|
Royalty price |
84 |
— |
84 |
78 |
||||
|
Impairment |
1 |
— |
1 |
5 |
||||
|
Value reimbursements |
1,011 |
— |
1,011 |
827 |
||||
|
TOTAL EXPENSES |
2,880 |
17 |
2,897 |
2,505 |
||||
|
Good points (losses) and different earnings (expense), internet |
39 |
— |
39 |
(27) |
||||
|
Curiosity expense |
(91) |
— |
(91) |
(128) |
||||
|
Transaction and integration prices |
(99) |
— |
(99) |
(75) |
||||
|
Different |
— |
— |
— |
2 |
||||
|
INCOME BEFORE INCOME TAXES AND |
||||||||
|
NONCONTROLLING INTERESTS |
437 |
(44) |
393 |
57 |
||||
|
Provision for earnings taxes |
(134) |
11 |
(123) |
(63) |
||||
|
NET INCOME (LOSS) |
303 |
(33) |
270 |
(6) |
||||
|
Web earnings attributable to noncontrolling pursuits |
— |
— |
— |
(6) |
||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO |
||||||||
|
COMMON SHAREHOLDERS |
$ 303 |
$ (33) |
$ 270 |
$ (12) |
||||
|
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO |
||||||||
|
COMMON SHAREHOLDERS |
||||||||
|
Primary |
$ 7.39 |
$ (0.78) |
$ 6.61 |
$ (0.28) |
||||
|
Diluted |
$ 6.68 |
$ (0.69) |
$ 5.99 |
$ (0.28) |
||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes |
|||||||
|
NOTE: Earnings (loss) per share – Primary and Earnings (loss) per share – Diluted are calculated utilizing entire {dollars}. |
|||||||
|
A-5 |
||||||||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||||||||
|
REVENUES AND PROFIT BY SEGMENT |
||||||||||||||
|
for the three months ended September 30, 2022 |
||||||||||||||
|
(In tens of millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
Reportable Phase |
Company and Different |
Complete |
||||||||||||
|
Trip Possession |
Trade & Third-Occasion Administration |
As Reported |
As Adjusted* |
|||||||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
||||||||||||
|
REVENUES |
||||||||||||||
|
Gross sales of trip possession merchandise |
$ 444 |
$ (27) |
$ 417 |
$ — |
$ — |
$ 444 |
$ 417 |
|||||||
|
Administration and alternate(1) |
||||||||||||||
|
Ancillary revenues |
63 |
— |
63 |
1 |
— |
64 |
64 |
|||||||
|
Administration price revenues |
41 |
— |
41 |
7 |
(1) |
47 |
47 |
|||||||
|
Trade and different providers revenues |
32 |
— |
32 |
47 |
8 |
87 |
87 |
|||||||
|
Administration and alternate |
136 |
— |
136 |
55 |
7 |
198 |
198 |
|||||||
|
Rental |
154 |
— |
154 |
11 |
— |
165 |
165 |
|||||||
|
Financing |
74 |
— |
74 |
— |
— |
74 |
74 |
|||||||
|
Value reimbursements(1) |
374 |
— |
374 |
5 |
(8) |
371 |
371 |
|||||||
|
TOTAL REVENUES |
$ 1,182 |
$ (27) |
$ 1,155 |
$ 71 |
$ (1) |
$ 1,252 |
$ 1,225 |
|||||||
|
PROFIT |
||||||||||||||
|
Growth |
$ 161 |
$ (25) |
$ 136 |
$ — |
$ — |
$ 161 |
$ 136 |
|||||||
|
Administration and alternate(1) |
72 |
— |
72 |
27 |
(2) |
97 |
97 |
|||||||
|
Rental(1) |
24 |
— |
24 |
11 |
4 |
39 |
39 |
|||||||
|
Financing |
69 |
(19) |
50 |
— |
— |
69 |
50 |
|||||||
|
TOTAL PROFIT |
326 |
(44) |
282 |
38 |
2 |
366 |
322 |
|||||||
|
OTHER |
||||||||||||||
|
Basic and administrative |
— |
— |
— |
— |
(62) |
(62) |
(62) |
|||||||
|
Depreciation and amortization |
(23) |
— |
(23) |
(8) |
(2) |
(33) |
(33) |
|||||||
|
Litigation expenses |
(2) |
— |
(2) |
— |
— |
(2) |
(2) |
|||||||
|
Royalty price |
(28) |
— |
(28) |
— |
— |
(28) |
(28) |
|||||||
|
Impairment |
(1) |
— |
(1) |
— |
— |
(1) |
(1) |
|||||||
|
Good points (losses) and different earnings (expense), internet |
1 |
— |
1 |
(1) |
(2) |
(2) |
(2) |
|||||||
|
Curiosity expense |
— |
— |
— |
— |
(34) |
(34) |
(34) |
|||||||
|
Transaction and integration prices |
(2) |
— |
(2) |
— |
(32) |
(34) |
(34) |
|||||||
|
Different |
(1) |
— |
(1) |
— |
— |
(1) |
(1) |
|||||||
|
INCOME (LOSS) BEFORE INCOME |
||||||||||||||
|
TAXES AND NONCONTROLLING |
||||||||||||||
|
INTERESTS |
270 |
(44) |
226 |
29 |
(130) |
169 |
125 |
|||||||
|
Provision for earnings taxes |
— |
11 |
11 |
— |
(59) |
(59) |
(48) |
|||||||
|
NET INCOME (LOSS) |
270 |
(33) |
237 |
29 |
(189) |
110 |
77 |
|||||||
|
Web earnings attributable to noncontrolling pursuits(1) |
— |
— |
— |
— |
(1) |
(1) |
(1) |
|||||||
|
NET INCOME (LOSS) |
||||||||||||||
|
ATTRIBUTABLE TO COMMON |
||||||||||||||
|
SHAREHOLDERS |
$ 270 |
$ (33) |
$ 237 |
$ 29 |
$ (190) |
$ 109 |
$ 76 |
|||||||
|
SEGMENT MARGIN(2) |
34 % |
31 % |
44 % |
|||||||||||
|
(1) Quantities included in Company and different symbolize the affect of the consolidation of sure homeowners’ associations below the related accounting steerage, and |
|||||||||||||
|
(2) Phase margin represents the relevant section’s internet earnings or loss attributable to frequent shareholders divided by the relevant section’s complete revenues |
|||||||||||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these various |
|||||||||||||
|
A-6 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
REVENUES AND PROFIT BY SEGMENT |
||||||||
|
for the three months ended September 30, 2021 |
||||||||
|
(In tens of millions) |
||||||||
|
(Unaudited) |
||||||||
|
Reportable Phase |
Company and Different |
Complete |
||||||
|
Trip Possession |
Trade & Third-Occasion Administration |
|||||||
|
REVENUES |
||||||||
|
Gross sales of trip possession merchandise |
$ 330 |
$ — |
$ — |
$ 330 |
||||
|
Administration and alternate(1) |
||||||||
|
Ancillary revenues |
55 |
1 |
— |
56 |
||||
|
Administration price revenues |
40 |
10 |
(4) |
46 |
||||
|
Trade and different providers revenues |
31 |
48 |
44 |
123 |
||||
|
Administration and alternate |
126 |
59 |
40 |
225 |
||||
|
Rental |
121 |
9 |
— |
130 |
||||
|
Financing |
69 |
— |
— |
69 |
||||
|
Value reimbursements(1) |
328 |
9 |
(39) |
298 |
||||
|
TOTAL REVENUES |
$ 974 |
$ 77 |
$ 1 |
$ 1,052 |
||||
|
PROFIT |
||||||||
|
Growth |
$ 93 |
$ — |
$ — |
$ 93 |
||||
|
Administration and alternate(1) |
71 |
26 |
(10) |
87 |
||||
|
Rental(1) |
24 |
9 |
13 |
46 |
||||
|
Financing |
47 |
— |
— |
47 |
||||
|
TOTAL PROFIT |
235 |
35 |
3 |
273 |
||||
|
OTHER |
||||||||
|
Basic and administrative |
— |
— |
(54) |
(54) |
||||
|
Depreciation and amortization |
(24) |
(11) |
— |
(35) |
||||
|
Litigation expenses |
(1) |
— |
(1) |
(2) |
||||
|
Restructuring |
1 |
(1) |
— |
— |
||||
|
Royalty price |
(26) |
— |
— |
(26) |
||||
|
Losses and different expense, internet |
— |
— |
(31) |
(31) |
||||
|
Curiosity expense |
— |
— |
(41) |
(41) |
||||
|
Transaction and integration prices |
(1) |
— |
(26) |
(27) |
||||
|
Different |
1 |
— |
— |
1 |
||||
|
INCOME (LOSS) BEFORE INCOME TAXES AND |
||||||||
|
NONCONTROLLING INTERESTS |
185 |
23 |
(150) |
58 |
||||
|
Provision for earnings taxes |
— |
— |
(47) |
(47) |
||||
|
NET INCOME (LOSS) |
185 |
23 |
(197) |
11 |
||||
|
Web earnings attributable to noncontrolling pursuits(1) |
— |
— |
(1) |
(1) |
||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON |
||||||||
|
SHAREHOLDERS |
$ 185 |
$ 23 |
$ (198) |
$ 10 |
||||
|
SEGMENT MARGIN(2) |
29 % |
35 % |
||||||
|
(1) Quantities included in Company and different symbolize the affect of the consolidation of sure homeowners’ associations below the related |
|||||||
|
(2) Phase margin represents the relevant section’s internet earnings or loss attributable to frequent shareholders divided by the relevant |
|||||||
|
A-7 |
||||||||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||||||||
|
REVENUES AND PROFIT BY SEGMENT |
||||||||||||||
|
for the 9 months ended September 30, 2022 |
||||||||||||||
|
(In tens of millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
Reportable Phase |
Company and Different |
Complete |
||||||||||||
|
Trip Possession |
Trade & Third-Occasion Administration |
As Reported |
As Adjusted* |
|||||||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
||||||||||||
|
REVENUES |
||||||||||||||
|
Gross sales of trip possession merchandise |
$ 1,179 |
$ (27) |
$ 1,152 |
$ — |
$ — |
$ 1,179 |
$ 1,152 |
|||||||
|
Administration and alternate(1) |
||||||||||||||
|
Ancillary revenues |
183 |
— |
183 |
3 |
— |
186 |
186 |
|||||||
|
Administration price revenues |
124 |
— |
124 |
28 |
(5) |
147 |
147 |
|||||||
|
Trade and different providers revenues |
95 |
— |
95 |
146 |
49 |
290 |
290 |
|||||||
|
Administration and alternate |
402 |
— |
402 |
177 |
44 |
623 |
623 |
|||||||
|
Rental |
405 |
— |
405 |
33 |
— |
438 |
438 |
|||||||
|
Financing |
217 |
— |
217 |
— |
— |
217 |
217 |
|||||||
|
Value reimbursements(1) |
1,026 |
— |
1,026 |
19 |
(34) |
1,011 |
1,011 |
|||||||
|
TOTAL REVENUES |
$ 3,229 |
$ (27) |
$ 3,202 |
$ 229 |
$ 10 |
$ 3,468 |
$ 3,441 |
|||||||
|
PROFIT |
||||||||||||||
|
Growth |
$ 360 |
$ (25) |
$ 335 |
$ — |
$ — |
$ 360 |
$ 335 |
|||||||
|
Administration and alternate(1) |
224 |
— |
224 |
84 |
(15) |
293 |
293 |
|||||||
|
Rental(1) |
94 |
— |
94 |
33 |
17 |
144 |
144 |
|||||||
|
Financing |
168 |
(19) |
149 |
— |
— |
168 |
149 |
|||||||
|
TOTAL PROFIT |
846 |
(44) |
802 |
117 |
2 |
965 |
921 |
|||||||
|
OTHER |
||||||||||||||
|
Basic and administrative |
— |
— |
— |
— |
(187) |
(187) |
(187) |
|||||||
|
Depreciation and amortization |
(67) |
— |
(67) |
(24) |
(7) |
(98) |
(98) |
|||||||
|
Litigation expenses |
(7) |
— |
(7) |
— |
— |
(7) |
(7) |
|||||||
|
Royalty price |
(84) |
— |
(84) |
— |
— |
(84) |
(84) |
|||||||
|
Impairment |
(1) |
— |
(1) |
— |
— |
(1) |
(1) |
|||||||
|
Good points (losses) and different earnings (expense), internet |
36 |
— |
36 |
15 |
(12) |
39 |
39 |
|||||||
|
Curiosity expense |
— |
— |
— |
— |
(91) |
(91) |
(91) |
|||||||
|
Transaction and integration prices |
(3) |
— |
(3) |
— |
(96) |
(99) |
(99) |
|||||||
|
INCOME (LOSS) BEFORE INCOME |
||||||||||||||
|
TAXES AND NONCONTROLLING |
||||||||||||||
|
INTERESTS |
720 |
(44) |
676 |
108 |
(391) |
437 |
393 |
|||||||
|
Provision for earnings taxes |
— |
11 |
11 |
— |
(134) |
(134) |
(123) |
|||||||
|
NET INCOME (LOSS) |
720 |
(33) |
687 |
108 |
(525) |
303 |
270 |
|||||||
|
Web earnings attributable to noncontrolling pursuits(1) |
— |
— |
— |
— |
— |
— |
— |
|||||||
|
NET INCOME (LOSS) |
||||||||||||||
|
ATTRIBUTABLE TO COMMON |
||||||||||||||
|
SHAREHOLDERS |
$ 720 |
$ (33) |
$ 687 |
$ 108 |
$ (525) |
$ 303 |
$ 270 |
|||||||
|
SEGMENT MARGIN(2) |
33 % |
32 % |
52 % |
|||||||||||
|
(1) Quantities included in Company and different symbolize the affect of the consolidation of sure homeowners’ associations below the related accounting steerage, and |
||||||||||||||
|
(2) Phase margin represents the relevant section’s internet earnings or loss attributable to frequent shareholders divided by the relevant section’s complete revenues |
||||||||||||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these various |
||||||||||||||
|
A-8 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
REVENUES AND PROFIT BY SEGMENT |
||||||||
|
for the 9 months ended September 30, 2021 |
||||||||
|
(In tens of millions) |
||||||||
|
(Unaudited) |
||||||||
|
Reportable Phase |
Company and Different |
Complete |
||||||
|
Trip Possession |
Trade & Third-Occasion Administration |
|||||||
|
REVENUES |
||||||||
|
Gross sales of trip possession merchandise |
$ 789 |
$ — |
$ — |
$ 789 |
||||
|
Administration and alternate(1) |
||||||||
|
Ancillary revenues |
135 |
2 |
— |
137 |
||||
|
Administration price revenues |
117 |
24 |
(15) |
126 |
||||
|
Trade and different providers revenues |
91 |
153 |
131 |
375 |
||||
|
Administration and alternate |
343 |
179 |
116 |
638 |
||||
|
Rental |
308 |
32 |
— |
340 |
||||
|
Financing |
196 |
— |
— |
196 |
||||
|
Value reimbursements(1) |
882 |
38 |
(93) |
827 |
||||
|
TOTAL REVENUES |
$ 2,518 |
$ 249 |
$ 23 |
$ 2,790 |
||||
|
PROFIT |
||||||||
|
Growth |
$ 172 |
$ — |
$ — |
$ 172 |
||||
|
Administration and alternate(1) |
207 |
80 |
(30) |
257 |
||||
|
Rental(1) |
20 |
32 |
41 |
93 |
||||
|
Financing |
132 |
— |
— |
132 |
||||
|
TOTAL PROFIT |
531 |
112 |
11 |
654 |
||||
|
OTHER |
||||||||
|
Basic and administrative |
— |
— |
(166) |
(166) |
||||
|
Depreciation and amortization |
(66) |
(40) |
(6) |
(112) |
||||
|
Litigation expenses |
(7) |
— |
(1) |
(8) |
||||
|
Restructuring |
— |
(1) |
1 |
— |
||||
|
Royalty price |
(78) |
— |
— |
(78) |
||||
|
Impairment |
— |
— |
(5) |
(5) |
||||
|
Losses and different expense, internet |
— |
— |
(27) |
(27) |
||||
|
Curiosity expense |
— |
— |
(128) |
(128) |
||||
|
Transaction and integration prices |
(2) |
— |
(73) |
(75) |
||||
|
Different |
2 |
— |
— |
2 |
||||
|
INCOME (LOSS) BEFORE INCOME TAXES AND |
||||||||
|
NONCONTROLLING INTERESTS |
380 |
71 |
(394) |
57 |
||||
|
Provision for earnings taxes |
— |
— |
(63) |
(63) |
||||
|
NET INCOME (LOSS) |
380 |
71 |
(457) |
(6) |
||||
|
Web earnings attributable to noncontrolling pursuits(1) |
— |
— |
(6) |
(6) |
||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON |
||||||||
|
SHAREHOLDERS |
$ 380 |
$ 71 |
$ (463) |
$ (12) |
||||
|
SEGMENT MARGIN(2) |
23 % |
34 % |
||||||
|
(1) Quantities included in Company and different symbolize the affect of the consolidation of sure homeowners’ associations below the related |
||||||||
|
(2) Phase margin represents the relevant section’s internet earnings or loss attributable to frequent shareholders divided by the relevant |
||||||||
|
A-9 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND |
||||||||
|
ADJUSTED EARNINGS PER SHARE – DILUTED |
||||||||
|
(In tens of millions, besides per share quantities) |
||||||||
|
(Unaudited) |
||||||||
|
Three Months Ended |
9 Months Ended |
|||||||
|
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
|||||
|
Web earnings (loss) attributable to frequent shareholders |
$ 109 |
$ 10 |
$ 303 |
$ (12) |
||||
|
Provision for earnings taxes |
59 |
47 |
134 |
63 |
||||
|
Revenue earlier than earnings taxes attributable to frequent shareholders |
168 |
57 |
437 |
51 |
||||
|
Sure gadgets: |
||||||||
|
Litigation expenses |
2 |
2 |
7 |
8 |
||||
|
Losses (features) and different expense (earnings), internet(1) |
2 |
31 |
(39) |
27 |
||||
|
Transaction and integration prices |
34 |
27 |
99 |
75 |
||||
|
Impairment expenses |
1 |
— |
1 |
5 |
||||
|
Buy accounting changes |
5 |
5 |
13 |
7 |
||||
|
COVID-19 associated changes |
— |
— |
— |
(2) |
||||
|
Different |
(5) |
(4) |
(10) |
(6) |
||||
|
Adjusted pretax earnings* |
207 |
118 |
508 |
165 |
||||
|
Provision for earnings taxes |
(76) |
(48) |
(165) |
(78) |
||||
|
Adjusted internet earnings attributable to frequent shareholders* |
$ 131 |
$ 70 |
$ 343 |
$ 87 |
||||
|
Diluted shares(2) |
43.4 |
43.7 |
45.9 |
43.2 |
||||
|
Adjusted earnings per share – Diluted* |
$ 3.02 |
$ 1.60 |
$ 7.53 |
$ 2.01 |
||||
|
Excluding the Influence of Alignment: |
||||||||
|
Adjusted internet earnings attributable to frequent shareholders* |
$ 98 |
$ 70 |
$ 310 |
$ 87 |
||||
|
Adjusted earnings per share – Diluted* |
$ 2.28 |
$ 1.60 |
$ 6.83 |
$ 2.01 |
||||
|
(1) See additional particulars on A-10. |
|||||||
|
(2) Diluted shares for the 9 months ended September 30, 2022 displays the dilutive affect of the adoption of Accounting Requirements Replace 2020-06 – “Debt — Debt With Conversion and Different Choices (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Personal Fairness (Subtopic 815-40): Accounting for Convertible Devices and Contracts in an Entity’s Personal Fairness.” |
|||||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for |
|
A-10 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
ADJUSTED EBITDA |
||||||||
|
(In tens of millions) |
||||||||
|
(Unaudited) |
||||||||
|
Three Months Ended |
9 Months Ended |
|||||||
|
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
|||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO |
||||||||
|
COMMON SHAREHOLDERS |
$ 109 |
$ 10 |
$ 303 |
$ (12) |
||||
|
Curiosity expense |
34 |
41 |
91 |
128 |
||||
|
Provision for earnings taxes |
59 |
47 |
134 |
63 |
||||
|
Depreciation and amortization |
33 |
35 |
98 |
112 |
||||
|
Share-based compensation |
10 |
11 |
30 |
33 |
||||
|
Sure gadgets: |
||||||||
|
Litigation expenses |
2 |
2 |
7 |
8 |
||||
|
Losses (features) and different expense (earnings), internet |
||||||||
|
Inclinations |
(1) |
— |
(50) |
— |
||||
|
Hurricane enterprise interruption internet insurance coverage proceeds |
— |
— |
(3) |
— |
||||
|
Varied non-income associated tax issues |
(1) |
(8) |
2 |
(6) |
||||
|
Redemption premium from debt compensation |
— |
36 |
— |
36 |
||||
|
Overseas foreign money translation |
3 |
2 |
10 |
(4) |
||||
|
Different |
1 |
1 |
2 |
1 |
||||
|
Transaction and integration prices |
34 |
27 |
99 |
75 |
||||
|
Impairment expenses |
1 |
— |
1 |
5 |
||||
|
Buy accounting changes |
5 |
5 |
13 |
7 |
||||
|
COVID-19 associated changes |
— |
— |
— |
(2) |
||||
|
Different |
(5) |
(4) |
(10) |
(6) |
||||
|
ADJUSTED EBITDA* |
$ 284 |
$ 205 |
$ 727 |
$ 438 |
||||
|
ADJUSTED EBITDA MARGIN* |
32 % |
27 % |
30 % |
22 % |
||||
|
Excluding the Influence of Alignment: |
||||||||
|
ADJUSTED EBITDA* |
$ 240 |
$ 205 |
$ 683 |
$ 438 |
||||
|
ADJUSTED EBITDA MARGIN* |
28 % |
27 % |
28 % |
22 % |
||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering |
||||||||
|
A-11 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT |
||||||||
|
(In tens of millions) |
||||||||
|
(Unaudited) |
||||||||
|
Three Months Ended |
||||||||
|
September 30, 2022 |
September 30, 2021 |
|||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
||||||
|
Consolidated contract gross sales |
$ 483 |
$ — |
$ 483 |
$ 380 |
||||
|
Much less resales contract gross sales |
(10) |
— |
(10) |
(7) |
||||
|
Consolidated contract gross sales, internet of resales |
473 |
— |
473 |
373 |
||||
|
Plus: |
||||||||
|
Settlement income |
10 |
— |
10 |
8 |
||||
|
Resales income |
5 |
— |
5 |
5 |
||||
|
Income recognition changes: |
||||||||
|
Reportability |
54 |
(46) |
8 |
2 |
||||
|
Gross sales reserve |
(64) |
19 |
(45) |
(31) |
||||
|
Different(1) |
(34) |
— |
(34) |
(27) |
||||
|
Sale of trip possession merchandise |
444 |
(27) |
417 |
330 |
||||
|
Much less: |
||||||||
|
Value of trip possession merchandise |
(76) |
2 |
(74) |
(71) |
||||
|
Advertising and marketing and gross sales |
(207) |
— |
(207) |
(166) |
||||
|
Growth Revenue |
161 |
(25) |
136 |
93 |
||||
|
Income recognition reportability adjustment |
(43) |
39 |
(4) |
(1) |
||||
|
Buy accounting changes |
5 |
— |
5 |
6 |
||||
|
Different |
(5) |
— |
(5) |
— |
||||
|
Adjusted growth revenue* |
$ 118 |
$ 14 |
$ 132 |
$ 98 |
||||
|
Growth revenue margin |
36.1 % |
32.6 % |
28.0 % |
|||||
|
Adjusted growth revenue margin* |
29.9 % |
32.0 % |
29.5 % |
|||||
|
(1) Adjustment for gross sales incentives that won’t be acknowledged as Sale of trip possession merchandise income and different changes to |
||||||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes |
||||||||
|
A-12 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT |
||||||||
|
(In tens of millions) |
||||||||
|
(Unaudited) |
||||||||
|
9 Months Ended |
||||||||
|
September 30, 2022 |
September 30, 2021 |
|||||||
|
As Reported |
Influence of Alignment |
As Adjusted* |
||||||
|
Consolidated contract gross sales |
$ 1,383 |
$ — |
$ 1,383 |
$ 968 |
||||
|
Much less resales contract gross sales |
(30) |
— |
(30) |
(19) |
||||
|
Consolidated contract gross sales, internet of resales |
1,353 |
— |
1,353 |
949 |
||||
|
Plus: |
||||||||
|
Settlement income |
26 |
— |
26 |
21 |
||||
|
Resales income |
13 |
— |
13 |
8 |
||||
|
Income recognition changes: |
||||||||
|
Reportability |
7 |
(46) |
(39) |
(51) |
||||
|
Gross sales reserve |
(130) |
19 |
(111) |
(73) |
||||
|
Different(1) |
(90) |
— |
(90) |
(65) |
||||
|
Sale of trip possession merchandise |
1,179 |
(27) |
1,152 |
789 |
||||
|
Much less: |
||||||||
|
Value of trip possession merchandise |
(216) |
2 |
(214) |
(178) |
||||
|
Advertising and marketing and gross sales |
(603) |
— |
(603) |
(439) |
||||
|
Growth Revenue |
360 |
(25) |
335 |
172 |
||||
|
Income recognition reportability adjustment |
(8) |
39 |
31 |
38 |
||||
|
Buy accounting changes |
14 |
— |
14 |
9 |
||||
|
Different |
(5) |
— |
(5) |
— |
||||
|
Adjusted growth revenue* |
$ 361 |
$ 14 |
$ 375 |
$ 219 |
||||
|
Growth revenue margin |
30.5 % |
29.1 % |
21.8 % |
|||||
|
Adjusted growth revenue margin* |
30.8 % |
31.6 % |
26.2 % |
|||||
|
(1) Adjustment for gross sales incentives that won’t be acknowledged as Sale of trip possession merchandise income and different changes |
||||||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes |
||||||||
|
A-13 |
||||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||||||
|
(In tens of millions) |
||||||||
|
(Unaudited) |
||||||||
|
VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA |
||||||||
|
Three Months Ended |
9 Months Ended |
|||||||
|
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
|||||
|
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO |
||||||||
|
COMMON SHAREHOLDERS |
$ 270 |
$ 185 |
$ 720 |
$ 380 |
||||
|
Depreciation and amortization |
23 |
24 |
67 |
66 |
||||
|
Share-based compensation expense |
2 |
1 |
5 |
4 |
||||
|
Sure gadgets: |
||||||||
|
Litigation expenses |
2 |
1 |
7 |
7 |
||||
|
(Good points) losses and different (earnings) expense, internet: |
||||||||
|
Inclinations |
— |
— |
(33) |
— |
||||
|
Hurricane enterprise interruption internet insurance coverage proceeds |
— |
— |
(3) |
— |
||||
|
Overseas foreign money translation |
(1) |
— |
— |
— |
||||
|
Transaction and integration prices |
2 |
1 |
3 |
2 |
||||
|
Impairment expenses |
1 |
— |
1 |
— |
||||
|
Buy accounting changes |
5 |
5 |
13 |
7 |
||||
|
COVID-19 associated restructuring |
— |
(1) |
— |
— |
||||
|
Different |
(5) |
(1) |
(8) |
(1) |
||||
|
SEGMENT ADJUSTED EBITDA* |
$ 299 |
$ 215 |
$ 772 |
$ 465 |
||||
|
SEGMENT ADJUSTED EBITDA MARGIN* |
37 % |
33 % |
35 % |
28 % |
||||
|
Excluding the Influence of Alignment: |
||||||||
|
SEGMENT ADJUSTED EBITDA* |
$ 255 |
$ 215 |
$ 728 |
$ 465 |
||||
|
SEGMENT ADJUSTED EBITDA MARGIN* |
33 % |
33 % |
34 % |
28 % |
||||
|
EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA |
||||||||
|
Three Months Ended |
9 Months Ended |
|||||||
|
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
|||||
|
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO |
||||||||
|
COMMON SHAREHOLDERS |
$ 29 |
$ 23 |
$ 108 |
$ 71 |
||||
|
Depreciation and amortization |
8 |
11 |
24 |
40 |
||||
|
Share-based compensation expense |
1 |
— |
2 |
1 |
||||
|
Sure gadgets: |
||||||||
|
Acquire on disposition of VRI Americas |
(1) |
— |
(17) |
— |
||||
|
Overseas foreign money translation |
2 |
— |
2 |
— |
||||
|
COVID-19 associated restructuring |
— |
1 |
— |
1 |
||||
|
Different |
— |
— |
(2) |
— |
||||
|
SEGMENT ADJUSTED EBITDA* |
$ 39 |
$ 35 |
$ 117 |
$ 113 |
||||
|
SEGMENT ADJUSTED EBITDA MARGIN* |
58 % |
53 % |
55 % |
54 % |
||||
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our causes for offering these |
||||||||
|
A-14 |
||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||
|
CONSOLIDATED BALANCE SHEETS |
||||
|
(In tens of millions, besides share and per share information) |
||||
|
Unaudited |
||||
|
September 30, 2022 |
December 31, 2021 |
|||
|
ASSETS |
||||
|
Money and money equivalents |
$ 294 |
$ 342 |
||
|
Restricted money (together with $67 and $139 from VIEs, respectively) |
249 |
461 |
||
|
Accounts receivable, internet (together with $12 and $12 from VIEs, respectively) |
248 |
279 |
||
|
Trip possession notes receivable, internet (together with $1,662 and $1,662 from VIEs, |
||||
|
respectively) |
2,142 |
2,045 |
||
|
Stock |
668 |
719 |
||
|
Property and tools, internet |
1,136 |
1,136 |
||
|
Goodwill |
3,117 |
3,150 |
||
|
Intangibles, internet |
924 |
993 |
||
|
Different (together with $68 and $76 from VIEs, respectively) |
459 |
488 |
||
|
TOTAL ASSETS |
$ 9,237 |
$ 9,613 |
||
|
LIABILITIES AND EQUITY |
||||
|
Accounts payable |
$ 221 |
$ 265 |
||
|
Advance deposits |
178 |
160 |
||
|
Accrued liabilities (together with $2 and $2 from VIEs, respectively) |
342 |
345 |
||
|
Deferred income |
346 |
453 |
||
|
Payroll and advantages legal responsibility |
248 |
201 |
||
|
Deferred compensation legal responsibility |
130 |
142 |
||
|
Securitized debt, internet (together with $1,830 and $1,877 from VIEs, respectively) |
1,809 |
1,856 |
||
|
Debt, internet |
2,749 |
2,631 |
||
|
Different |
212 |
224 |
||
|
Deferred taxes |
374 |
350 |
||
|
TOTAL LIABILITIES |
6,609 |
6,627 |
||
|
Contingencies and Commitments |
||||
|
Most well-liked inventory — $0.01 par worth; 2,000,000 shares licensed; none issued or |
||||
|
excellent |
— |
— |
||
|
Widespread inventory — $0.01 par worth; 100,000,000 shares licensed; 75,744,121 and |
||||
|
75,519,049 shares issued, respectively |
1 |
1 |
||
|
Treasury inventory — at price; 37,036,447 and 33,235,671 shares, respectively |
(1,882) |
(1,356) |
||
|
Extra paid-in capital |
3,968 |
4,072 |
||
|
Amassed different complete loss |
6 |
(16) |
||
|
Retained earnings |
533 |
275 |
||
|
TOTAL MVW SHAREHOLDERS’ EQUITY |
2,626 |
2,976 |
||
|
Noncontrolling pursuits |
2 |
10 |
||
|
TOTAL EQUITY |
2,628 |
2,986 |
||
|
TOTAL LIABILITIES AND EQUITY |
$ 9,237 |
$ 9,613 |
||
|
The abbreviation VIEs above means Variable Curiosity Entities. |
||||
|
A-15 |
||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
|
(In tens of millions) |
||||
|
(Unaudited) |
||||
|
9 Months Ended |
||||
|
September 30, 2022 |
September 30, 2021 |
|||
|
OPERATING ACTIVITIES |
||||
|
Web earnings (loss) |
$ 303 |
$ (6) |
||
|
Changes to reconcile internet earnings (loss) to internet money, money equivalents and |
||||
|
restricted money supplied by working actions: |
||||
|
Depreciation and amortization of intangibles |
98 |
112 |
||
|
Amortization of debt low cost and issuance prices |
20 |
41 |
||
|
Trip possession notes receivable reserve |
130 |
73 |
||
|
Share-based compensation |
30 |
33 |
||
|
Impairment expenses |
1 |
5 |
||
|
Good points and different earnings, internet |
(48) |
— |
||
|
Deferred earnings taxes |
64 |
10 |
||
|
Web change in belongings and liabilities: |
||||
|
Accounts and contracts receivable |
6 |
54 |
||
|
Trip possession notes receivable originations |
(728) |
(545) |
||
|
Trip possession notes receivable collections |
469 |
532 |
||
|
Stock |
74 |
59 |
||
|
Different belongings |
(21) |
(29) |
||
|
Accounts payable, advance deposits and accrued liabilities |
(28) |
(44) |
||
|
Deferred income |
(5) |
119 |
||
|
Payroll and profit liabilities |
52 |
35 |
||
|
Deferred compensation legal responsibility |
8 |
14 |
||
|
Different liabilities |
7 |
23 |
||
|
Deconsolidation of sure Consolidated Property House owners’ Associations |
(48) |
(87) |
||
|
Buy of trip possession items for future switch to stock |
(12) |
(99) |
||
|
Different, internet |
8 |
3 |
||
|
Web money, money equivalents and restricted money supplied by working |
||||
|
actions |
380 |
303 |
||
|
INVESTING ACTIVITIES |
||||
|
Acquisition of a enterprise, internet of money and restricted money acquired |
— |
(157) |
||
|
Proceeds from disposition of subsidiaries, internet of money and restricted money |
||||
|
transferred |
94 |
— |
||
|
Capital expenditures for property and tools (excluding stock) |
(36) |
(19) |
||
|
Issuance of word receivable to VIE |
(47) |
— |
||
|
Proceeds from assortment of word receivable from VIE |
47 |
— |
||
|
Buy of firm owned life insurance coverage |
(14) |
(11) |
||
|
Different, internet |
5 |
— |
||
|
Web money, money equivalents and restricted money supplied by (utilized in) |
||||
|
investing actions |
49 |
(187) |
||
|
Continued |
||||
|
A-16 |
||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) |
||||
|
(In tens of millions) |
||||
|
(Unaudited) |
||||
|
9 Months Ended |
||||
|
September 30, 2022 |
September 30, 2021 |
|||
|
FINANCING ACTIVITIES |
||||
|
Borrowings from securitization transactions |
609 |
425 |
||
|
Compensation of debt associated to securitization transactions |
(655) |
(602) |
||
|
Proceeds from debt |
505 |
1,061 |
||
|
Repayments of debt |
(505) |
(1,039) |
||
|
Buy of convertible word hedges |
— |
(100) |
||
|
Proceeds from issuance of warrants |
— |
70 |
||
|
Finance lease cost |
(3) |
(2) |
||
|
Fee of debt issuance prices |
(10) |
(17) |
||
|
Repurchase of frequent inventory |
(528) |
(4) |
||
|
Fee of dividends |
(75) |
— |
||
|
Fee of withholding taxes on vesting of restricted inventory items |
(23) |
(17) |
||
|
Web money, money equivalents and restricted money utilized in financing actions |
(685) |
(225) |
||
|
Impact of modifications in alternate charges on money, money equivalents and restricted money |
(4) |
(1) |
||
|
Change in money, money equivalents and restricted money |
(260) |
(110) |
||
|
Money, money equivalents and restricted money, starting of interval |
803 |
992 |
||
|
Money, money equivalents and restricted money, finish of interval |
$ 543 |
$ 882 |
||
|
A-17 |
|||||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
|||||||
|
(In tens of millions, besides per share quantities) |
|||||||
|
2022 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED |
|||||||
|
EARNINGS PER SHARE – DILUTED OUTLOOK |
|||||||
|
Fiscal Yr 2022 (low) |
Fiscal Yr 2022 (excessive) |
||||||
|
Web earnings attributable to frequent shareholders |
$ 390 |
$ 400 |
|||||
|
Provision for earnings taxes |
174 |
179 |
|||||
|
Revenue earlier than earnings taxes attributable to frequent shareholders |
564 |
579 |
|||||
|
Sure gadgets(1) |
96 |
106 |
|||||
|
Adjusted pretax earnings* |
660 |
685 |
|||||
|
Provision for earnings taxes |
(205) |
(210) |
|||||
|
Adjusted internet earnings attributable to frequent shareholders* |
$ 455 |
$ 475 |
|||||
|
Earnings per share – Diluted |
$ 8.76 |
$ 8.98 |
|||||
|
Adjusted earnings per share – Diluted* |
$ 10.20 |
$ 10.64 |
|||||
|
Diluted shares |
45.0 |
45.0 |
|||||
|
2022 ADJUSTED EBITDA OUTLOOK |
|||||||
|
Fiscal Yr 2022 (low) |
Fiscal Yr 2022 (excessive) |
||||||
|
Web earnings attributable to frequent shareholders |
$ 390 |
$ 400 |
|||||
|
Curiosity expense |
123 |
123 |
|||||
|
Provision for earnings taxes |
174 |
179 |
|||||
|
Depreciation and amortization |
128 |
128 |
|||||
|
Share-based compensation |
39 |
39 |
|||||
|
Sure gadgets(1) |
96 |
106 |
|||||
|
Adjusted EBITDA* |
$ 950 |
$ 975 |
|||||
|
(1) Sure gadgets adjustment consists of $120 to $130 million of anticipated transaction and integration prices, |
|
* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra data |
|
A-18 |
||||
|
MARRIOTT VACATIONS WORLDWIDE CORPORATION |
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2022 ADJUSTED FREE CASH FLOW OUTLOOK |
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(In tens of millions) |
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|
Fiscal Yr 2022 (low) |
Fiscal Yr 2022 (excessive) |
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|
Web money, money equivalents and restricted money supplied by working actions |
$ 575 |
$ 590 |
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Capital expenditures for property and tools (excluding stock) |
(55) |
(45) |
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Borrowings from securitization transactions |
870 |
890 |
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Compensation of debt associated to securitizations |
(958) |
(973) |
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Securitized Debt Issuance Prices |
(12) |
(12) |
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Free money circulation* |
420 |
450 |
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Changes: |
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|
Web change in borrowings out there from the securitization of eligible |
||||
|
trip possession notes receivable(1) |
164 |
197 |
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|
Sure gadgets(2) |
96 |
103 |
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Change in restricted money |
(10) |
(20) |
||
|
Adjusted free money circulation* |
$ 670 |
$ 730 |
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|
(1) Represents the online change in borrowings out there from the securitization of eligible trip possession notes receivable |
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(2) Sure gadgets adjustment consists primarily of the after-tax affect of anticipated transaction and integration prices. |
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* Denotes non-GAAP monetary measures. Please see “Non-GAAP Monetary Measures” for extra details about our |
|
A-19 |
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MARRIOTT VACATIONS WORLDWIDE CORPORATION |
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|
QUARTERLY OPERATING METRICS |
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|
(Contract gross sales in tens of millions) |
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|
Yr |
Quarter Ended |
Full Yr |
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|
March 31 |
June 30 |
September 30 |
December 31 |
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|
Trip Possession |
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|
Consolidated contract gross sales |
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|
2022 |
$ 394 |
$ 506 |
$ 483 |
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|
2021 |
$ 226 |
$ 362 |
$ 380 |
$ 406 |
$ 1,374 |
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|
2020 |
$ 306 |
$ 30 |
$ 140 |
$ 178 |
$ 654 |
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|
VPG |
||||||||||||
|
2022 |
$ 4,706 |
$ 4,613 |
$ 4,353 |
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|
2021 |
$ 4,644 |
$ 4,304 |
$ 4,300 |
$ 4,305 |
$ 4,356 |
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|
2020 |
$ 3,680 |
$ 3,717 |
$ 3,904 |
$ 3,826 |
$ 3,767 |
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|
Excursions |
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|
2022 |
78,505 |
102,857 |
104,000 |
|||||||||
|
2021 |
45,871 |
79,900 |
84,098 |
89,495 |
299,364 |
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|
2020 |
79,131 |
6,216 |
33,170 |
44,161 |
162,678 |
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|
Trade & Third-Occasion Administration |
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|
Complete lively members (000’s)(1) |
||||||||||||
|
2022 |
1,606 |
1,596 |
1,591 |
|||||||||
|
2021 |
1,479 |
1,321 |
1,313 |
1,296 |
1,296 |
|||||||
|
2020 |
1,636 |
1,571 |
1,536 |
1,518 |
1,518 |
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Common income per member(1) |
||||||||||||
|
2022 |
$ 44.33 |
$ 38.79 |
$ 38.91 |
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|
2021 |
$ 47.13 |
$ 46.36 |
$ 42.95 |
$ 42.93 |
$ 179.48 |
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|
2020 |
$ 41.37 |
$ 30.17 |
$ 36.76 |
$ 36.62 |
$ 144.97 |
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|
(1) Contains members on the finish of every interval for the Interval Worldwide alternate community solely. |
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A-20
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press launch and schedules, and on the associated convention name, we report sure monetary measures that aren’t prescribed by GAAP. We focus on our causes for reporting these non-GAAP monetary measures beneath, and the monetary schedules included herein reconcile probably the most immediately comparable GAAP monetary measure to every non-GAAP monetary measure that we report (recognized by an asterisk (“*”) on the previous pages). Though we consider and current these non-GAAP monetary measures for the explanations described beneath, please bear in mind that these non-GAAP monetary measures have limitations and shouldn’t be thought of in isolation or as an alternative choice to revenues, internet earnings or loss attributable to frequent shareholders, earnings or loss per share or some other comparable working measure prescribed by GAAP. As well as, different firms in our business could calculate these non-GAAP monetary measures in another way than we do or could not calculate them in any respect, limiting their usefulness as comparative measures.
Sure Gadgets Excluded from Non-GAAP Monetary Measures
We consider non-GAAP monetary measures, together with these recognized by an asterisk (“*”) on the previous pages, that exclude sure gadgets as additional described within the monetary schedules included herein, and consider these measures present helpful data to buyers as a result of these non-GAAP monetary measures enable for period-over-period comparisons of our on-going core operations earlier than the affect of this stuff. These non-GAAP monetary measures additionally facilitate the comparability of outcomes from our on-going core operations earlier than this stuff with outcomes from different trip possession firms.
Adjusted Growth Revenue and Adjusted Growth Revenue Margin
We consider Adjusted growth revenue (Adjusted sale of trip possession merchandise, internet of bills) and Adjusted growth revenue margin as indicators of working efficiency. Adjusted growth revenue margin is calculated by dividing Adjusted growth revenue by revenues from the Sale of trip possession merchandise. Adjusted growth revenue and Adjusted growth revenue margin alter Sale of trip possession merchandise revenues for the affect of income reportability, embrace corresponding changes to Value of trip possession merchandise related to the change in revenues from the Sale of trip possession merchandise, and will embrace changes for sure gadgets as obligatory. We consider Adjusted growth revenue and Adjusted growth revenue margin and consider they supply helpful data to buyers as a result of they permit for period-over-period comparisons of our on-going core operations earlier than the affect of income reportability and sure gadgets to our Growth revenue and Growth revenue margin.
Earnings Earlier than Curiosity Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
EBITDA, a monetary measure that isn’t prescribed by GAAP, is outlined as earnings, or internet earnings or loss attributable to frequent shareholders, earlier than curiosity expense (excluding shopper financing curiosity expense related to time period mortgage securitization transactions), earnings taxes, depreciation and amortization. Adjusted EBITDA displays extra changes for sure gadgets, as itemized within the dialogue of Adjusted EBITDA within the previous pages, and excludes share-based compensation expense to deal with appreciable variability amongst firms in recording compensation expense as a result of firms use share-based cost awards in another way, each within the kind and amount of awards granted. For functions of our EBITDA and Adjusted EBITDA calculations, we don’t alter for shopper financing curiosity expense related to time period mortgage securitization transactions as a result of we take into account it to be an working expense of our enterprise. We take into account Adjusted EBITDA to be an indicator of working efficiency, which we use to measure our skill to service debt, fund capital expenditures, broaden our enterprise, and return money to shareholders. We additionally use Adjusted EBITDA, as do analysts, lenders, buyers and others, as a result of this measure excludes sure gadgets that may fluctuate extensively throughout totally different industries or amongst firms throughout the identical business. For instance, curiosity expense may be depending on an organization’s capital construction, debt ranges and credit score rankings. Accordingly, the affect of curiosity expense on earnings can fluctuate considerably amongst firms. The tax positions of firms may fluctuate due to their differing talents to benefit from tax advantages and due to the tax insurance policies of the jurisdictions by which they function. Because of this, efficient tax charges and provisions for earnings taxes can fluctuate significantly amongst firms. EBITDA and Adjusted EBITDA additionally exclude depreciation and amortization as a result of firms make the most of productive belongings of various ages and use totally different strategies of each buying and depreciating productive belongings. These variations can lead to appreciable variability within the relative prices of productive belongings and the depreciation and amortization expense amongst firms. We consider Adjusted EBITDA is beneficial as an indicator of working efficiency as a result of it permits for period-over-period comparisons of our on-going core operations earlier than the affect of the excluded gadgets. Adjusted EBITDA additionally facilitates comparability by us, analysts, buyers, and others, of outcomes from our on-going core operations earlier than the affect of this stuff with outcomes from different firms.
Adjusted EBITDA Margin and Phase Adjusted EBITDA Margin
We consider Adjusted EBITDA margin and Phase Adjusted EBITDA margin as indicators of working efficiency. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Firm’s complete revenues much less price reimbursement revenues. Phase Adjusted EBITDA margin represents Phase Adjusted EBITDA divided by the relevant section’s complete revenues much less price reimbursement revenues. We consider Adjusted EBITDA margin and Phase Adjusted EBITDA margin and consider it supplies helpful data to buyers as a result of it permits for period-over-period comparisons of our on-going core operations.
Free Money Circulate and Adjusted Free Money Circulate
We consider Free Money Circulate and Adjusted Free Money Circulate as liquidity measures that present helpful data to administration and buyers about the amount of money supplied by working actions after capital expenditures for property and tools and the borrowing and compensation exercise associated to our time period mortgage securitizations, which money can be utilized for, amongst different functions, strategic alternatives, together with acquisitions and strengthening the steadiness sheet. Adjusted Free Money Circulate, which displays extra changes to Free Money Circulate for the affect of transaction and integration expenses, affect of borrowings out there from the securitization of eligible trip possession notes receivable, and modifications in restricted money, permits for period-over-period comparisons of the money generated by our enterprise earlier than the affect of this stuff. Evaluation of Free Money Circulate and Adjusted Free Money Circulate additionally facilitates administration’s comparability of our outcomes with our opponents’ outcomes.
Outcomes As Adjusted
In our press launch and schedules we offer As Adjusted outcomes for comparability. The As Adjusted outcomes exclude any impacts to the Firm’s reported outcomes on a GAAP foundation because of the Alignment. We offer this As Adjusted data as a result of we consider that it facilitates the comparability of outcomes from our on-going core operations earlier than the affect of the Alignment. We consider that the As Adjusted outcomes present helpful data to help with period-over-period comparisons of our on-going operations excluding any affect from the Alignment.
SOURCE Marriott Holidays Worldwide Company
