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     113  0 Kommentare Marriott Vacations Worldwide Reports Fourth Quarter and Full Year 2023 Financial Results

    Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW” or the “Company”) reported financial results for the fourth quarter and full year 2023 and provided guidance for full year 2024.

    “After a challenging year, we ended the year on a very positive note, growing contract sales by 4% in the fourth quarter on a year-over-year basis with VPG in-line with the prior year, after adjusting for the estimated impact of the Maui wildfires,” said John Geller, President and Chief Executive Officer. “The transition to Abound by Marriott Vacations is behind us. Moving forward, we continue to look for ways to leverage technology to grow our revenues while driving efficiencies and cost savings across the organization.”

    Fourth Quarter 2023 Highlights

    • Consolidated Vacation Ownership contract sales declined 2% year-over-year to $447 million driven by 2% lower volume per guest (“VPG”). The Company estimates that excluding the impact of the Maui wildfires, contract sales would have grown 4%, tours would have increased 4% and VPG would have been unchanged compared to the prior year.
    • Net income attributable to common stockholders was $35 million and fully diluted earnings per share was $0.93.
    • Adjusted net income attributable to common stockholders was $75 million and adjusted fully diluted earnings per share was $1.88.
    • Adjusted EBITDA was $186 million.
    • The Company repurchased 431,000 shares of its common stock for $38 million during the quarter and increased its quarterly dividend to $0.76 per share, which was paid in January. For the year, the Company repurchased 6% of its shares outstanding for $286 million and paid $106 million in dividends.

    Fourth Quarter 2023 Results
    On August 8, 2023, a wildfire devastated the area of West Maui. While the Company operates four vacation ownership resorts and sales centers in the area, it did not sustain any physical damage to these resorts and sales centers. However, the Company estimates the Maui wildfires negatively impacted its fourth quarter contract sales by approximately $25 million, Net income attributable to common stockholders by $17 million and Adjusted EBITDA by $24 million.

    In the third quarter of 2022, the Company aligned its contract terms for the sale of its Marriott-, Westin-, and Sheraton-branded vacation ownership products, resulting in the acceleration of revenue from the sale of Marriott-branded vacation ownership interests. In addition, the Company aligned its reserve methodology for vacation ownership notes receivable for these brands, resulting in a decrease in the reserve for the acquired notes offset by an increase in the reserve for the originated notes. Together, these changes are referred to as the “Alignment.”

    The tables below illustrate the comparison of the reported results from the fourth quarter of 2023, as well as adjusted results that reflect the estimated impact of the Maui fires, to the results from the fourth quarter of 2022, including the impact of the Alignment on the Company’s reported results for that time period. In the tables below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    Consolidated

     

    Three Months Ended

     

    December 31, 2023

     

    December 31, 2022

    ($ in millions)

    As
    Reported

     

    Estimated
    Impact of
    Maui Fires

     

    As
    Adjusted*

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

    Net income attributable to common stockholders

    $

    35

     

    $

    17

     

    $

    52

     

    $

    88

     

    $

    (5

    )

     

    $

    83

    Adjusted net income attributable to common stockholders*

    $

    75

     

    $

    17

     

    $

    92

     

    $

    115

     

    $

    (5

    )

     

    $

    110

    Adjusted EBITDA*

    $

    186

     

    $

    24

     

    $

    210

     

    $

    239

     

    $

    (7

    )

     

    $

    232

    Vacation Ownership

    Selected Items

     

    Three Months Ended

     

    December 31, 2023

     

    December 31, 2022

    ($ in millions, except VPG)

    As
    Reported

     

    Estimated
    Impact of
    Maui Fires

     

    As
    Adjusted*

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

    Consolidated contract sales

    $

    447

     

     

    $

    25

     

    $

    472

     

     

    $

    454

     

     

    $

     

     

    $

    454

     

    VPG

    $

    4,002

     

     

    $

    88

     

    $

    4,090

     

     

    $

    4,088

     

     

    $

     

     

    $

    4,088

     

    Tours

     

    105,580

     

     

     

    4,028

     

     

    109,608

     

     

     

    105,231

     

     

     

     

     

     

    105,231

     

    Sale of vacation ownership products

    $

    375

     

     

    $

    24

     

    $

    399

     

     

    $

    439

     

     

    $

    (12

    )

     

    $

    427

     

    Development profit

    $

    120

     

     

    $

    18

     

    $

    138

     

     

    $

    162

     

     

    $

    (7

    )

     

    $

    155

     

    Management and exchange profit

    $

    75

     

     

    $

    2

     

    $

    77

     

     

    $

    70

     

     

    $

     

     

    $

    70

     

    Rental profit

    $

    15

     

     

    $

    2

     

    $

    17

     

     

    $

    15

     

     

    $

     

     

    $

    15

     

    Financing profit

    $

    51

     

     

    $

     

    $

    51

     

     

    $

    50

     

     

    $

     

     

    $

    50

     

    Other

    $

    (3

    )

     

    $

    3

     

    $

     

     

    $

    1

     

     

    $

     

     

    $

    1

     

    Segment financial results attributable to common stockholders

    $

    199

     

     

    $

    25

     

    $

    224

     

     

    $

    241

     

     

    $

    (5

    )

     

    $

    236

     

    Segment margin

     

    27.3%

     

     

     

     

    29.7%

     

     

    31.9%

     

     

     

     

    31.7%

    Segment Adjusted EBITDA*

    $

    236

     

     

    $

    25

     

    $

    261

     

     

    $

    261

     

     

    $

    (7

    )

     

    $

    254

     

    Segment Adjusted EBITDA margin*

     

    32.5%

     

     

     

     

    34.7%

     

     

    34.6%

     

     

     

     

    34.2%

    Revenues excluding cost reimbursements decreased 3% in the fourth quarter of 2023 compared to the prior year. The decline was driven by a 2% year-over-year reduction in consolidated contract sales resulting from the Maui wildfires, as well as a $24 million prior year reportability benefit. Adjusted for the estimated $25 million impact of the Maui wildfires, consolidated contract sales would have increased 4% year-over-year.

    Segment financial results attributable to common stockholders declined $42 million to $199 million in the fourth quarter of 2023 and Segment Adjusted EBITDA declined $25 million to $236 million. Adjusting for the $25 million estimated impact from the Maui wildfires in the current year and $7 million Alignment benefit in the prior year, Segment Adjusted EBITDA would have increased 3% to $261 million.

    Exchange & Third-Party Management

    Selected Items

     

    Three Months Ended

     

    December 31, 2023

     

    December 31, 2022

    ($ in millions)

    As
    Reported

     

    Estimated
    Impact of
    Maui Fires

     

    As
    Adjusted*

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

    Management and exchange profit

    $

    22

     

     

    $

    (1

    )

     

    $

    21

     

     

    $

    22

     

     

    $

     

    $

    22

     

    Segment financial results attributable to common stockholders

    $

    18

     

     

    $

    (1

    )

     

    $

    17

     

     

    $

    24

     

     

    $

     

    $

    24

     

    Segment margin

     

    31.1%

     

     

     

     

    28.3%

     

     

    41.3%

     

     

     

     

    41.3%

    Segment Adjusted EBITDA*

    $

    31

     

     

    $

    (1

    )

     

    $

    30

     

     

    $

    31

     

     

    $

     

    $

    31

     

    Segment Adjusted EBITDA margin*

     

    52.2%

     

     

     

     

    49.3%

     

     

    54.9%

     

     

     

     

    54.9%

    Revenues excluding cost reimbursements decreased 2% in the fourth quarter of 2023 compared to the prior year driven by lower member transactions. Interval International ended the year with 1.6 million active members, in-line with the prior year, and Average revenue per member increased 2% year-over-year in the fourth quarter.

    Segment financial results attributable to common stockholders were $18 million in the fourth quarter of 2023, Segment margin was 31% and Segment Adjusted EBITDA was $31 million. Adjusted for the estimated impact from the Maui wildfires, Segment Adjusted EBITDA would have decreased $1 million to $30 million.

    Corporate and Other
    General and administrative costs increased $22 million in the fourth quarter of 2023 compared to the prior year primarily due to higher IT spending to drive our digital and data initiatives.

    Balance Sheet and Liquidity
    The Company ended the year with $929 million in liquidity, including $248 million of cash and cash equivalents, $60 million of gross notes receivable that were eligible for securitization, and $621 million of available capacity under its revolving corporate credit facility.

    At the end of 2023, the Company had $3.0 billion of corporate debt and $2.1 billion of non-recourse debt related to its securitized notes receivable.

    Full Year 2024 Outlook
    The Company is providing guidance for the full year 2024 as reflected in the chart below. The Financial Schedules that follow reconcile the following full year 2024 expected GAAP results for the Company to the non-GAAP financial measures set forth below.

    In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    (in millions, except per share amounts)

    2024 Guidance

    Contract sales

    $1,880

    to

    $1,930

    Net income attributable to common stockholders

    $285

    to

    $320

    Earnings per share - diluted

    $7.17

    to

    $8.00

    Net cash, cash equivalents, and restricted cash provided by operating activities

    $265

    to

    $295

    Adjusted EBITDA*

    $760

    to

    $800

    Adjusted earnings per share - diluted*

    $7.65

    to

    $8.35

    Adjusted free cash flow*

    $400

    to

    $450

    Non-GAAP Financial Information
    Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission.

    Fourth Quarter 2023 Financial Results Conference Call
    The Company will hold a conference call on February 22, 2024 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.

    About Marriott Vacations Worldwide Corporation
    Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has approximately 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.

    Note on forward-looking statements
    This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about leveraging technology to enhance core operations and other benefits to the organization and full year 2024 outlook for contract sales, results of operations and cash flows. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: a future health crisis and responses to a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price inflation; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws; the impact of a future banking crisis; impacts from natural or man-made disasters and wildfires, including the Maui wildfires; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the ongoing conflicts between Russia and Ukraine, Israel and Gaza, and elsewhere in the world and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of changes in interest rates; the effects of steps we have taken and may continue to take to reduce operating costs; political or social strife; and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.

    Financial Schedules Follow

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    FINANCIAL SCHEDULES

    QUARTER 4, 2023

     

    TABLE OF CONTENTS

     

    Summary Financial Information

    A-1

    Adjusted EBITDA by Segment

    A-2

    Consolidated Statements of Income

    A-3

    to

    A-4

    Revenues and Profit by Segment

    A-5

    to

    A-6

    Consolidated Contract Sales to Adjusted Development Profit

    A-7

    to

    A-8

    Adjusted Net Income Attributable to Common Stockholders and Adjusted Earnings Per Share - Diluted

    A-9

    Adjusted EBITDA

    A-10

    Segment Adjusted EBITDA

     

    Vacation Ownership

    A-11

    Exchange & Third-Party Management

    Balance Sheet Items and Summary Cash Flow

    A-12

    2024 Outlook

     

     

     

    Adjusted Net Income Attributable to Common Stockholders, Adjusted Earnings Per Share - Diluted and Adjusted EBITDA

    A-13

    Adjusted Free Cash Flow

    A-14

    Quarterly Operating Metrics

    A-15

    Non-GAAP Financial Measures

    A-16

    to

    A-17

    A-1

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    (In millions, except VPG, tours, total active Interval International members, average revenue per member, and per share amounts)

    (Unaudited)

    SUMMARY FINANCIAL INFORMATION

     

     

    Quarter Ended

     

    Change %

     

    Fiscal Year Ended

     

    Change %

     

    December
    31, 2023

     

    December
    31, 2022

     

     

    December
    31, 2023

     

    December
    31, 2022

     

    Key Measures

     

     

     

     

     

     

     

     

     

     

     

    Total consolidated contract sales

    $

    447

     

    $

    454

     

    (2%)

     

    $

    1,772

     

    $

    1,837

     

    (4%)

    VPG

    $

    4,002

     

    $

    4,088

     

    (2%)

     

    $

    4,088

     

    $

    4,421

     

    (8%)

    Tours

     

    105,580

     

     

    105,231

     

    0%

     

     

    405,825

     

     

    390,593

     

    4%

    Total active Interval International members (000's)(1)

     

    1,564

     

     

    1,566

     

    0%

     

     

    1,564

     

     

    1,566

     

    0%

    Average revenue per Interval International member

    $

    36.16

     

    $

    35.60

     

    2%

     

    $

    156.65

     

    $

    157.97

     

    (1%)

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP Measures

     

     

     

     

     

     

     

     

     

     

     

    Revenues

    $

    1,194

     

    $

    1,188

     

    0%

     

    $

    4,727

     

    $

    4,656

     

    2%

    Income before income taxes and noncontrolling interests

    $

    64

     

    $

    145

     

    (55%)

     

    $

    398

     

    $

    582

     

    (31%)

    Net income attributable to common stockholders

    $

    35

     

    $

    88

     

    (60%)

     

    $

    254

     

    $

    391

     

    (35%)

    Diluted shares

     

    42.5

     

     

    43.0

     

    (1%)

     

     

    43.5

     

     

    45.2

     

    (4%)

    Earnings per share - diluted

    $

    0.93

     

    $

    2.08

     

    (55%)

     

    $

    6.28

     

    $

    8.77

     

    (28%)

     

     

     

     

     

     

     

     

     

     

     

     

    Non-GAAP Measures*

     

     

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA

    $

    186

     

    $

    239

     

    (22%)

     

    $

    761

     

    $

    966

     

    (21%)

    Adjusted pretax income

    $

    105

     

    $

    169

     

    (38%)

     

    $

    450

     

    $

    677

     

    (34%)

    Adjusted net income attributable to common stockholders

    $

    75

     

    $

    115

     

    (35%)

     

    $

    322

     

    $

    458

     

    (30%)

    Adjusted earnings per share - diluted

    $

    1.88

     

    $

    2.74

     

    (31%)

     

    $

    7.83

     

    $

    10.26

     

    (24%)

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Includes members at the end of each period.

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

     

     

     

     

     

     

     

     

     

     

     

     

    A-2

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    ADJUSTED EBITDA BY SEGMENT

    (In millions)

    (Unaudited)

     

     

    Three Months Ended

     

    December 31,
    2023

     

    December 31, 2022

     

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

     

     

     

     

    Vacation Ownership

    $

    236

     

     

    $

    261

     

     

    $

    (7

    )

     

    $

    254

     

    Exchange & Third-Party Management

     

    31

     

     

     

    31

     

     

     

     

     

     

    31

     

    Segment Adjusted EBITDA*

     

    267

     

     

     

    292

     

     

     

    (7

    )

     

     

    285

     

    General and administrative

     

    (84

    )

     

     

    (62

    )

     

     

     

     

     

    (62

    )

    Other

     

    3

     

     

     

    9

     

     

     

     

     

     

    9

     

    Adjusted EBITDA*

    $

    186

     

     

    $

    239

     

     

    $

    (7

    )

     

    $

    232

     

     

    Twelve Months Ended

     

    December 31,
    2023

     

    December 31, 2022

     

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

     

     

     

     

    Vacation Ownership

    $

    883

     

     

    $

    1,033

     

     

    $

    (51

    )

     

    $

    982

     

    Exchange & Third-Party Management

     

    130

     

     

     

    148

     

     

     

     

     

     

    148

     

    Segment Adjusted EBITDA*

     

    1,013

     

     

     

    1,181

     

     

     

    (51

    )

     

     

    1,130

     

    General and administrative

     

    (273

    )

     

     

    (249

    )

     

     

     

     

     

    (249

    )

    Other

     

    21

     

     

     

    34

     

     

     

     

     

     

    34

     

    Adjusted EBITDA*

    $

    761

     

     

    $

    966

     

     

    $

    (51

    )

     

    $

    915

     

     

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

     

    A-3

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    CONSOLIDATED STATEMENTS OF INCOME

    (In millions, except per share amounts)

     

     

    Three Months Ended

     

    December
    31, 2023

     

    December 31, 2022

     

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

    REVENUES

     

     

     

     

     

     

     

    Sale of vacation ownership products

    $

    375

     

     

    $

    439

     

     

    $

    (12

    )

     

    $

    427

     

    Management and exchange

     

    202

     

     

     

    204

     

     

     

     

     

     

    204

     

    Rental

     

    136

     

     

     

    113

     

     

     

     

     

     

    113

     

    Financing

     

    83

     

     

     

    76

     

     

     

     

     

     

    76

     

    Cost reimbursements

     

    398

     

     

     

    356

     

     

     

     

     

     

    356

     

    TOTAL REVENUES

     

    1,194

     

     

     

    1,188

     

     

     

    (12

    )

     

     

    1,176

     

    EXPENSES

     

     

     

     

     

     

     

    Cost of vacation ownership products

     

    50

     

     

     

    73

     

     

     

    (5

    )

     

     

    68

     

    Marketing and sales

     

    205

     

     

     

    204

     

     

     

     

     

     

    204

     

    Management and exchange

     

    110

     

     

     

    114

     

     

     

     

     

     

    114

     

    Rental

     

    108

     

     

     

    88

     

     

     

     

     

     

    88

     

    Financing

     

    32

     

     

     

    26

     

     

     

     

     

     

    26

     

    General and administrative

     

    84

     

     

     

    62

     

     

     

     

     

     

    62

     

    Depreciation and amortization

     

    36

     

     

     

    34

     

     

     

     

     

     

    34

     

    Litigation charges

     

    6

     

     

     

    4

     

     

     

     

     

     

    4

     

    Restructuring

     

    6

     

     

     

     

     

     

     

     

     

     

    Royalty fee

     

    29

     

     

     

    30

     

     

     

     

     

     

    30

     

    Impairment

     

    28

     

     

     

    1

     

     

     

     

     

     

    1

     

    Cost reimbursements

     

    398

     

     

     

    356

     

     

     

     

     

     

    356

     

    TOTAL EXPENSES

     

    1,092

     

     

     

    992

     

     

     

    (5

    )

     

     

    987

     

    Gains and other income, net

     

    13

     

     

     

    1

     

     

     

     

     

     

    1

     

    Interest expense, net

     

    (39

    )

     

     

    (27

    )

     

     

     

     

     

    (27

    )

    Transaction and integration costs

     

    (9

    )

     

     

    (26

    )

     

     

     

     

     

    (26

    )

    Other

     

    (3

    )

     

     

    1

     

     

     

     

     

     

    1

     

    INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS

     

    64

     

     

     

    145

     

     

     

    (7

    )

     

     

    138

     

    (Provision for) benefit from income taxes

     

    (31

    )

     

     

    (57

    )

     

     

    2

     

     

     

    (55

    )

    NET INCOME (LOSS)

     

    33

     

     

     

    88

     

     

     

    (5

    )

     

     

    83

     

    Net income attributable to noncontrolling interests

     

    2

     

     

     

     

     

     

     

     

     

     

    NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

    $

    35

     

     

    $

    88

     

     

    $

    (5

    )

     

    $

    83

     

     

     

     

     

     

     

     

     

    EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

     

     

     

     

     

     

     

    Basic shares

     

    35.6

     

     

     

    38.2

     

     

     

     

     

     

    38.2

     

    Basic

    $

    0.98

     

     

    $

    2.30

     

     

    $

    (0.16

    )

     

    $

    2.14

     

    Diluted shares

     

    42.5

     

     

     

    43.0

     

     

     

     

     

     

    43.0

     

    Diluted

    $

    0.93

     

     

    $

    2.08

     

     

    $

    (0.14

    )

     

    $

    1.94

     

     

     

     

     

     

     

     

     

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    A-4

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    CONSOLIDATED STATEMENTS OF INCOME

    (In millions, except per share amounts)

     

     

    Twelve Months Ended

     

    December
    31, 2023

     

    December 31, 2022

     

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

    REVENUES

     

     

     

     

     

     

     

    Sale of vacation ownership products

    $

    1,460

     

     

    $

    1,618

     

     

    $

    (39

    )

     

    $

    1,579

     

    Management and exchange

     

    813

     

     

     

    827

     

     

     

     

     

     

    827

     

    Rental

     

    571

     

     

     

    551

     

     

     

     

     

     

    551

     

    Financing

     

    322

     

     

     

    293

     

     

     

     

     

     

    293

     

    Cost reimbursements

     

    1,561

     

     

     

    1,367

     

     

     

     

     

     

    1,367

     

    TOTAL REVENUES

     

    4,727

     

     

     

    4,656

     

     

     

    (39

    )

     

     

    4,617

     

    EXPENSES

     

     

     

     

     

     

     

    Cost of vacation ownership products

     

    224

     

     

     

    289

     

     

     

    (7

    )

     

     

    282

     

    Marketing and sales

     

    823

     

     

     

    807

     

     

     

     

     

     

    807

     

    Management and exchange

     

    442

     

     

     

    444

     

     

     

     

     

     

    444

     

    Rental

     

    452

     

     

     

    382

     

     

     

     

     

     

    382

     

    Financing

     

    113

     

     

     

    75

     

     

     

    19

     

     

     

    94

     

    General and administrative

     

    273

     

     

     

    249

     

     

     

     

     

     

    249

     

    Depreciation and amortization

     

    135

     

     

     

    132

     

     

     

     

     

     

    132

     

    Litigation charges

     

    13

     

     

     

    11

     

     

     

     

     

     

    11

     

    Restructuring

     

    6

     

     

     

     

     

     

     

     

     

     

    Royalty fee

     

    117

     

     

     

    114

     

     

     

     

     

     

    114

     

    Impairment

     

    32

     

     

     

    2

     

     

     

     

     

     

    2

     

    Cost reimbursements

     

    1,561

     

     

     

    1,367

     

     

     

     

     

     

    1,367

     

    TOTAL EXPENSES

     

    4,191

     

     

     

    3,872

     

     

     

    12

     

     

     

    3,884

     

    Gains and other income, net

     

    47

     

     

     

    40

     

     

     

     

     

     

    40

     

    Interest expense, net

     

    (145

    )

     

     

    (118

    )

     

     

     

     

     

    (118

    )

    Transaction and integration costs

     

    (37

    )

     

     

    (125

    )

     

     

     

     

     

    (125

    )

    Other

     

    (3

    )

     

     

    1

     

     

     

     

     

     

    1

     

    INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS

     

    398

     

     

     

    582

     

     

     

    (51

    )

     

     

    531

     

    (Provision for) benefit from income taxes

     

    (146

    )

     

     

    (191

    )

     

     

    13

     

     

     

    (178

    )

    NET INCOME (LOSS)

     

    252

     

     

     

    391

     

     

     

    (38

    )

     

     

    353

     

    Net loss attributable to noncontrolling interests

     

    2

     

     

     

     

     

     

     

     

     

     

    NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

    $

    254

     

     

    $

    391

     

     

    $

    (38

    )

     

    $

    353

     

     

     

     

     

     

     

     

     

    EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

     

     

     

     

     

     

     

    Basic shares

     

    36.5

     

     

     

    40.4

     

     

     

     

     

     

    40.4

     

    Basic

    $

    6.96

     

     

    $

    9.69

     

     

    $

    (0.93

    )

     

    $

    8.76

     

    Diluted shares

     

    43.5

     

     

     

    45.2

     

     

     

     

     

     

    45.2

     

    Diluted

    $

    6.28

     

     

    $

    8.77

     

     

    $

    (0.83

    )

     

    $

    7.94

     

     

     

     

     

     

     

     

     

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    A-5

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    REVENUES AND PROFIT BY SEGMENT

    for the three months ended December 31, 2023

    (In millions)

     

     

    Reportable Segment

     

    Corporate
    and Other

     

    Total

     

    Vacation
    Ownership

     

    Exchange &
    Third-Party
    Management

     

     

    REVENUES

     

     

     

     

     

     

     

    Sales of vacation ownership products

    $

    375

     

     

    $

     

     

    $

     

     

    $

    375

     

    Management and exchange(1)

     

     

     

     

     

     

     

    Ancillary

     

    59

     

     

     

    2

     

     

     

     

     

     

    61

     

    Management fee

     

    46

     

     

     

    6

     

     

     

    (1

    )

     

     

    51

     

    Exchange and other services

     

    38

     

     

     

    41

     

     

     

    11

     

     

     

    90

     

    Management and exchange

     

    143

     

     

     

    49

     

     

     

    10

     

     

     

    202

     

    Rental

     

    127

     

     

     

    9

     

     

     

     

     

     

    136

     

    Financing

     

    83

     

     

     

     

     

     

     

     

     

    83

     

    Cost reimbursements(1)

     

    405

     

     

     

    4

     

     

     

    (11

    )

     

     

    398

     

    TOTAL REVENUES

    $

    1,133

     

     

    $

    62

     

     

    $

    (1

    )

     

    $

    1,194

     

     

     

     

     

     

     

     

     

    PROFIT

     

     

     

     

     

     

     

    Development

    $

    120

     

     

    $

     

     

    $

     

     

    $

    120

     

    Management and exchange(1)

     

    75

     

     

     

    22

     

     

     

    (5

    )

     

     

    92

     

    Rental(1)

     

    15

     

     

     

    9

     

     

     

    4

     

     

     

    28

     

    Financing

     

    51

     

     

     

     

     

     

     

     

     

    51

     

    TOTAL PROFIT

     

    261

     

     

     

    31

     

     

     

    (1

    )

     

     

    291

     

     

     

     

     

     

     

     

     

    OTHER

     

     

     

     

     

     

     

    General and administrative

     

     

     

     

     

     

     

    (84

    )

     

     

    (84

    )

    Depreciation and amortization

     

    (24

    )

     

     

    (8

    )

     

     

    (4

    )

     

     

    (36

    )

    Litigation charges

     

    (4

    )

     

     

    (1

    )

     

     

    (1

    )

     

     

    (6

    )

    Restructuring

     

     

     

     

     

     

     

    (6

    )

     

     

    (6

    )

    Royalty fee

     

    (29

    )

     

     

     

     

     

     

     

     

    (29

    )

    Impairment

     

    (8

    )

     

     

    (4

    )

     

     

    (16

    )

     

     

    (28

    )

    Gains and other income, net

     

    6

     

     

     

     

     

     

    7

     

     

     

    13

     

    Interest expense, net

     

     

     

     

     

     

     

    (39

    )

     

     

    (39

    )

    Transaction and integration costs

     

     

     

     

     

     

     

    (9

    )

     

     

    (9

    )

    Other

     

    (3

    )

     

     

     

     

     

     

     

     

    (3

    )

    INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS

     

    199

     

     

     

    18

     

     

     

    (153

    )

     

     

    64

     

    Provision for income taxes

     

     

     

     

     

     

     

    (31

    )

     

     

    (31

    )

    NET INCOME (LOSS)

     

    199

     

     

     

    18

     

     

     

    (184

    )

     

     

    33

     

    Net income attributable to noncontrolling interests(1)

     

     

     

     

     

     

     

    2

     

     

     

    2

     

    NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

    $

    199

     

     

    $

    18

     

     

    $

    (182

    )

     

    $

    35

     

    SEGMENT MARGIN(2)

     

    27%

     

     

    31%

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.

    (2) Segment margin represents the applicable segment’s net income or loss attributable to common stockholders divided by the applicable segment’s total revenues less cost reimbursement revenues.

    A-6

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    REVENUES AND PROFIT BY SEGMENT

    for the three months ended December 31, 2022

    (In millions)

     

     

    Reportable Segment

     

    Corporate
    and
    Other

     

    Total

     

    Vacation Ownership

     

    Exchange &
    Third-Party
    Management

     

     

    As
    Reported

     

    As
    Adjusted*

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

     

     

     

     

    REVENUES

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sales of vacation ownership products

    $

    439

     

     

    $

    (12

    )

     

    $

    427

     

     

    $

     

     

    $

     

     

    $

    439

     

     

    $

    427

     

    Management and exchange(1)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Ancillary

     

    58

     

     

     

     

     

     

    58

     

     

     

    1

     

     

     

     

     

     

    59

     

     

     

    59

     

    Management fee

     

    42

     

     

     

     

     

     

    42

     

     

     

    6

     

     

     

     

     

     

    48

     

     

     

    48

     

    Exchange and other services

     

    32

     

     

     

     

     

     

    32

     

     

     

    42

     

     

     

    23

     

     

     

    97

     

     

     

    97

     

    Management and exchange

     

    132

     

     

     

     

     

     

    132

     

     

     

    49

     

     

     

    23

     

     

     

    204

     

     

     

    204

     

    Rental

     

    104

     

     

     

     

     

     

    104

     

     

     

    9

     

     

     

     

     

     

    113

     

     

     

    113

     

    Financing

     

    76

     

     

     

     

     

     

    76

     

     

     

     

     

     

     

     

     

    76

     

     

     

    76

     

    Cost reimbursements(1)

     

    362

     

     

     

     

     

     

    362

     

     

     

    4

     

     

     

    (10

    )

     

     

    356

     

     

     

    356

     

    TOTAL REVENUES

    $

    1,113

     

     

    $

    (12

    )

     

    $

    1,101

     

     

    $

    62

     

     

    $

    13

     

     

    $

    1,188

     

     

    $

    1,176

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    PROFIT

     

     

     

     

     

     

     

     

     

     

     

     

     

    Development

    $

    162

     

     

    $

    (7

    )

     

    $

    155

     

     

    $

     

     

    $

     

     

    $

    162

     

     

    $

    155

     

    Management and exchange(1)

     

    70

     

     

     

     

     

     

    70

     

     

     

    22

     

     

     

    (2

    )

     

     

    90

     

     

     

    90

     

    Rental(1)

     

    15

     

     

     

     

     

     

    15

     

     

     

    9

     

     

     

    1

     

     

     

    25

     

     

     

    25

     

    Financing

     

    50

     

     

     

     

     

     

    50

     

     

     

     

     

     

     

     

     

    50

     

     

     

    50

     

    TOTAL PROFIT

     

    297

     

     

     

    (7

    )

     

     

    290

     

     

     

    31

     

     

     

    (1

    )

     

     

    327

     

     

     

    320

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    OTHER

     

     

     

     

     

     

     

     

     

     

     

     

     

    General and administrative

     

     

     

     

     

     

     

     

     

     

     

     

     

    (62

    )

     

     

    (62

    )

     

     

    (62

    )

    Depreciation and amortization

     

    (25

    )

     

     

     

     

     

    (25

    )

     

     

    (7

    )

     

     

    (2

    )

     

     

    (34

    )

     

     

    (34

    )

    Litigation charges

     

    (2

    )

     

     

     

     

     

    (2

    )

     

     

     

     

     

    (2

    )

     

     

    (4

    )

     

     

    (4

    )

    Royalty fee

     

    (30

    )

     

     

     

     

     

    (30

    )

     

     

     

     

     

     

     

     

    (30

    )

     

     

    (30

    )

    Impairment

     

    (1

    )

     

     

     

     

     

    (1

    )

     

     

     

     

     

     

     

     

    (1

    )

     

     

    (1

    )

    Gains and other income, net

     

    1

     

     

     

     

     

     

    1

     

     

     

     

     

     

     

     

     

    1

     

     

     

    1

     

    Interest expense, net

     

     

     

     

     

     

     

     

     

     

     

     

     

    (27

    )

     

     

    (27

    )

     

     

    (27

    )

    Transaction and integration costs

     

     

     

     

     

     

     

     

     

     

     

     

     

    (26

    )

     

     

    (26

    )

     

     

    (26

    )

    Other

     

    1

     

     

     

     

     

     

    1

     

     

     

     

     

     

     

     

     

    1

     

     

     

    1

     

    INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS

     

    241

     

     

     

    (7

    )

     

     

    234

     

     

     

    24

     

     

     

    (120

    )

     

     

    145

     

     

     

    138

     

    Benefit from (provision for) income taxes

     

     

     

     

    2

     

     

     

    2

     

     

     

     

     

     

    (57

    )

     

     

    (57

    )

     

     

    (55

    )

    NET INCOME (LOSS)

     

    241

     

     

     

    (5

    )

     

     

    236

     

     

     

    24

     

     

     

    (177

    )

     

     

    88

     

     

     

    83

     

    Net income attributable to noncontrolling interests(1)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

    $

    241

     

     

    $

    (5

    )

     

    $

    236

     

     

    $

    24

     

     

    $

    (177

    )

     

    $

    88

     

     

    $

    83

     

    SEGMENT MARGIN(2)

     

    32%

     

     

     

     

    32%

     

     

    41%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.

    (2) Segment margin represents the applicable segment’s net income or loss attributable to common stockholders divided by the applicable segment’s total revenues less cost reimbursement revenues.

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    A-7

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT

    (In millions)

    (Unaudited)

     

     

    Three Months Ended

     

    December
    31, 2023

     

    December 31, 2022

     

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

    Consolidated contract sales

    $

    447

     

     

    $

    454

     

     

    $

     

     

    $

    454

     

    Less resales contract sales

     

    (10

    )

     

     

    (10

    )

     

     

     

     

     

    (10

    )

    Consolidated contract sales, net of resales

     

    437

     

     

     

    444

     

     

     

     

     

     

    444

     

    Plus:

     

     

     

     

     

     

     

    Settlement revenue

     

    10

     

     

     

    10

     

     

     

     

     

     

    10

     

    Resales revenue

     

    4

     

     

     

    7

     

     

     

     

     

     

    7

     

    Revenue recognition adjustments:

     

     

     

     

     

     

     

    Reportability

     

    (2

    )

     

     

    36

     

     

     

    (12

    )

     

     

    24

     

    Sales reserve

     

    (47

    )

     

     

    (40

    )

     

     

     

     

     

    (40

    )

    Other(1)

     

    (27

    )

     

     

    (18

    )

     

     

     

     

     

    (18

    )

    Sale of vacation ownership products

     

    375

     

     

     

    439

     

     

     

    (12

    )

     

     

    427

     

    Less:

     

     

     

     

     

     

     

    Cost of vacation ownership products

     

    (50

    )

     

     

    (73

    )

     

     

    5

     

     

     

    (68

    )

    Marketing and sales

     

    (205

    )

     

     

    (204

    )

     

     

     

     

     

    (204

    )

    Development Profit

     

    120

     

     

     

    162

     

     

     

    (7

    )

     

     

    155

     

    Revenue recognition reportability adjustment

     

    1

     

     

     

    (27

    )

     

     

    7

     

     

     

    (20

    )

    Purchase accounting adjustments

     

    3

     

     

     

    (1

    )

     

     

     

     

     

    (1

    )

    Other

     

     

     

     

    (8

    )

     

     

     

     

     

    (8

    )

    Adjusted development profit*

    $

    124

     

     

    $

    126

     

     

    $

     

     

    $

    126

     

    Development profit margin

     

    32.0%

     

     

    36.8%

     

     

     

     

    36.2%

    Adjusted development profit margin*

     

    33.1%

     

     

    31.5%

     

     

     

     

    31.5%

     

     

     

     

     

     

     

     

    (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    A-8

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT

    (In millions)

    (Unaudited)

     

     

    Twelve Months Ended

     

    December
    31, 2023

     

    December 31, 2022

     

     

    As
    Reported

     

    Impact of
    Alignment

     

    As
    Adjusted*

    Consolidated contract sales

    $

    1,772

     

     

    $

    1,837

     

     

    $

     

     

    $

    1,837

     

    Less resales contract sales

     

    (42

    )

     

     

    (40

    )

     

     

     

     

     

    (40

    )

    Consolidated contract sales, net of resales

     

    1,730

     

     

     

    1,797

     

     

     

     

     

     

    1,797

     

    Plus:

     

     

     

     

     

     

     

    Settlement revenue

     

    39

     

     

     

    36

     

     

     

     

     

     

    36

     

    Resales revenue

     

    22

     

     

     

    20

     

     

     

     

     

     

    20

     

    Revenue recognition adjustments:

     

     

     

     

     

     

     

    Reportability

     

    3

     

     

     

    43

     

     

     

    (58

    )

     

     

    (15

    )

    Sales reserve

     

    (232

    )

     

     

    (170

    )

     

     

    19

     

     

     

    (151

    )

    Other(1)

     

    (102

    )

     

     

    (108

    )

     

     

     

     

     

    (108

    )

    Sale of vacation ownership products

     

    1,460

     

     

     

    1,618

     

     

     

    (39

    )

     

     

    1,579

     

    Less:

     

     

     

     

     

     

     

    Cost of vacation ownership products

     

    (224

    )

     

     

    (289

    )

     

     

    7

     

     

     

    (282

    )

    Marketing and sales

     

    (823

    )

     

     

    (807

    )

     

     

     

     

     

    (807

    )

    Development Profit

     

    413

     

     

     

    522

     

     

     

    (32

    )

     

     

    490

     

    Revenue recognition reportability adjustment

     

    (2

    )

     

     

    (35

    )

     

     

    46

     

     

     

    11

     

    Purchase accounting adjustments

     

    9

     

     

     

    13

     

     

     

     

     

     

    13

     

    Other

     

     

     

     

    (13

    )

     

     

     

     

     

    (13

    )

    Adjusted development profit*

    $

    420

     

     

    $

    487

     

     

    $

    14

     

     

    $

    501

     

    Development profit margin

     

    28.3%

     

     

    32.2%

     

     

     

     

    31.0%

    Adjusted development profit margin*

     

    28.8%

     

     

    31.0%

     

     

     

     

    31.5%

     

     

     

     

     

     

     

     

    (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    A-9

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND

    ADJUSTED EARNINGS PER SHARE - DILUTED

    (In millions, except per share amounts)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

    December 31,
    2023

     

    December 31,
    2022

     

    December 31,
    2023

     

    December 31,
    2022

    Net income attributable to common stockholders

    $

    35

     

     

    $

    88

     

     

    $

    254

     

     

    $

    391

     

    Provision for income taxes

     

    31

     

     

     

    57

     

     

     

    146

     

     

     

    191

     

    Income before income taxes attributable to common stockholders

     

    66

     

     

     

    145

     

     

     

    400

     

     

     

    582

     

    Certain items:

     

     

     

     

     

     

     

    ILG integration

     

     

     

     

    18

     

     

     

    15

     

     

     

    98

     

    Welk acquisition and integration

     

    9

     

     

     

    4

     

     

     

    22

     

     

     

    14

     

    Other transformation initiatives

     

     

     

     

    4

     

     

     

     

     

     

    10

     

    Other transaction costs

     

     

     

     

     

     

     

     

     

     

    3

     

    Transaction and integration costs

     

    9

     

     

     

    26

     

     

     

    37

     

     

     

    125

     

    Early redemption of senior secured notes

     

     

     

     

     

     

     

    10

     

     

     

     

    Gain on disposition of hotel, land, and other

     

     

     

     

     

     

     

    (8

    )

     

     

    (33

    )

    Gain on disposition of VRI Americas

     

     

     

     

     

     

     

     

     

     

    (17

    )

    Foreign currency translation

     

    (7

    )

     

     

     

     

     

    (6

    )

     

     

    10

     

    Insurance proceeds

     

    (6

    )

     

     

    (1

    )

     

     

    (9

    )

     

     

    (6

    )

    Change in indemnification asset

     

    (1

    )

     

     

    1

     

     

     

    (31

    )

     

     

    3

     

    Other

     

    1

     

     

     

    (1

    )

     

     

    (3

    )

     

     

    3

     

    Gains and other income, net

     

    (13

    )

     

     

    (1

    )

     

     

    (47

    )

     

     

    (40

    )

    Purchase accounting adjustments

     

    2

     

     

     

    (2

    )

     

     

    8

     

     

     

    11

     

    Litigation charges

     

    6

     

     

     

    4

     

     

     

    13

     

     

     

    11

     

    Restructuring charges

     

    6

     

     

     

     

     

     

    6

     

     

     

     

    Impairment charges

     

    28

     

     

     

    1

     

     

     

    32

     

     

     

    2

     

    Expiration/forfeiture of deposits on pre-acquisition preview packages

     

     

     

     

     

     

     

     

     

     

    (6

    )

    Early termination of VRI management contract

     

     

     

     

     

     

     

     

     

     

    (2

    )

    Change in estimate relating to pre-acquisition contingencies

     

     

     

     

    (7

    )

     

     

     

     

     

    (12

    )

    Other

     

    1

     

     

     

    3

     

     

     

    1

     

     

     

    6

     

    Adjusted pretax income*

     

    105

     

     

     

    169

     

     

     

    450

     

     

     

    677

     

    Provision for income taxes

     

    (30

    )

     

     

    (54

    )

     

     

    (128

    )

     

     

    (219

    )

    Adjusted net income attributable to common stockholders*

    $

    75

     

     

    $

    115

     

     

    $

    322

     

     

    $

    458

     

     

     

     

     

     

     

     

     

    Diluted shares

     

    42.5

     

     

     

    43.0

     

     

     

    43.5

     

     

     

    45.2

     

    Adjusted earnings per share - Diluted*

    $

    1.88

     

     

    $

    2.74

     

     

    $

    7.83

     

     

    $

    10.26

     

     

     

     

     

     

     

     

     

    Excluding the Impact of Alignment:

     

     

     

     

     

     

     

    Adjusted net income attributable to common stockholders*

    $

    75

     

     

    $

    110

     

     

    $

    322

     

     

    $

    420

     

    Adjusted earnings per share - Diluted*

    $

    1.88

     

     

    $

    2.60

     

     

    $

    7.83

     

     

    $

    9.42

     

     

     

     

     

     

     

     

     

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    A-10

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    ADJUSTED EBITDA

    (In millions)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

    December 31,
    2023

     

    December 31,
    2022

     

    December 31,
    2023

     

    December 31,
    2022

    NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

    $

    35

     

     

    $

    88

     

     

    $

    254

     

     

    $

    391

     

    Interest expense, net

     

    39

     

     

     

    27

     

     

     

    145

     

     

     

    118

     

    Provision for income taxes

     

    31

     

     

     

    57

     

     

     

    146

     

     

     

    191

     

    Depreciation and amortization

     

    36

     

     

     

    34

     

     

     

    135

     

     

     

    132

     

    Share-based compensation

     

    6

     

     

     

    9

     

     

     

    31

     

     

     

    39

     

    Certain items:

     

     

     

     

     

     

     

    ILG integration

     

     

     

     

    18

     

     

     

    15

     

     

     

    98

     

    Welk acquisition and integration

     

    9

     

     

     

    4

     

     

     

    22

     

     

     

    14

     

    Other transformation initiatives

     

     

     

     

    4

     

     

     

     

     

     

    10

     

    Other transaction costs

     

     

     

     

     

     

     

     

     

     

    3

     

    Transaction and integration costs

     

    9

     

     

     

    26

     

     

     

    37

     

     

     

    125

     

    Early redemption of senior secured notes

     

     

     

     

     

     

     

    10

     

     

     

     

    Gain on disposition of hotel, land, and other

     

     

     

     

     

     

     

    (8

    )

     

     

    (33

    )

    Gain on disposition of VRI Americas

     

     

     

     

     

     

     

     

     

     

    (17

    )

    Foreign currency translation

     

    (7

    )

     

     

     

     

     

    (6

    )

     

     

    10

     

    Insurance proceeds

     

    (6

    )

     

     

    (1

    )

     

     

    (9

    )

     

     

    (6

    )

    Change in indemnification asset

     

    (1

    )

     

     

    1

     

     

     

    (31

    )

     

     

    3

     

    Other

     

    1

     

     

     

    (1

    )

     

     

    (3

    )

     

     

    3

     

    Gains and other income, net

     

    (13

    )

     

     

    (1

    )

     

     

    (47

    )

     

     

    (40

    )

    Purchase accounting adjustments

     

    2

     

     

     

    (2

    )

     

     

    8

     

     

     

    11

     

    Litigation charges

     

    6

     

     

     

    4

     

     

     

    13

     

     

     

    11

     

    Restructuring charges

    6

    6

     

    Impairment charges

     

    28

     

     

     

    1

     

     

     

    32

     

     

     

    2

     

    Expiration/forfeiture of deposits on pre-acquisition preview packages

     

     

     

     

     

     

     

     

     

     

    (6

    )

    Early termination of VRI management contract

     

     

     

     

     

     

     

     

     

     

    (2

    )

    Change in estimate relating to pre-acquisition contingencies

     

     

     

     

    (7

    )

     

     

     

     

     

    (12

    )

    Other

     

    1

     

     

     

    3

     

     

     

    1

     

     

     

    6

     

    ADJUSTED EBITDA*

    $

    186

     

     

    $

    239

     

     

    $

    761

     

     

    $

    966

     

    ADJUSTED EBITDA MARGIN*

     

    23%

     

     

    29%

     

     

    24%

     

     

    29%

     

     

     

     

     

     

     

     

    Excluding the Impact of Alignment

     

     

     

     

     

     

     

    ADJUSTED EBITDA*

    $

    186

     

     

    $

    232

     

     

    $

    761

     

     

    $

    915

     

    ADJUSTED EBITDA MARGIN*

     

    23%

     

     

    28%

     

     

    24%

     

     

    28%

     

     

     

     

     

     

     

     

    * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

    A-11

     

    MARRIOTT VACATIONS WORLDWIDE CORPORATION

    (In millions)

    (Unaudited)

    VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA

     

     

    Three Months Ended

     

    Twelve Months Ended

     

    December 31,
    2023

     

    December 31,
    2022

     

    December 31,
    2023

     

    December 31,
    2022

    SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS

    $

    199

     

     

    $

    241

     

     

    $

    777

     

     

    $

    961

     

    Depreciation and amortization

     

    24

     

     

     

    25

     

     

     

    93

     

     

     

    92

     

    Share-based compensation

     

    2

     

     

     

    2

     

     

     

    8

     

     

     

    7

     

    Certain items:

     

     

     

     

     

     

     

    Transaction and integration costs

     

     

     

     

     

     

     

     

     

     

    3

     

    Gain on disposition of hotel, land, and other

     

     

     

     

     

     

     

    (7

    )

     

     

    (33

    )

    Insurance proceeds

     

    (6

    )

     

     

    (1

    )

     

     

    (9

    )

     

     

    (4

    )

    Change in indemnification asset

     

     

     

     

     

     

     

    (9

    )

     

     

     

    Other

     

     

     

     

     

     

     

    (4

    )

     

     

     

    Gains and other income, net

     

    (6

    )

     

     

    (1

    )

     

     

    (29

    )

     

     

    (37

    )

    Purchase accounting adjustments

     

    2

     

     

     

    (2

    )

     

     

    8

     

     

     

    11

     

    Litigation charges

     

    4

     

     

     

    2

     

     

     

    12

     

     

     

    9

     

    Impairment charges