Marriott Vacations Worldwide ("MVW") Reports Third Quarter 2022 Financial Results
In the third quarter of 2022, in connection with the unification of the Company's Marriott-, Westin-, and Sheraton-branded vacation ownership products under the Abound by
Third Quarter 2022 Highlights:
- Consolidated Vacation Ownership contract sales were
$483 million , a 27% increase compared to the third quarter of 2021, and VPG increased 1% to$4,353 .
- Net income attributable to common shareholders was
$109 million , or$2.53 fully diluted earnings per share; excluding the impact of the Alignment, net income attributable to common shareholders was$76 million , or$1.79 fully diluted earnings per share.
- Adjusted net income attributable to common shareholders was
$131 million , or$3.02 adjusted fully diluted earnings per share; excluding the impact of the Alignment, adjusted net income attributable to common shareholders was$98 million , or$2.28 adjusted fully diluted earnings per share.
- Adjusted EBITDA was
$284 million ; excluding the impact of the Alignment, Adjusted EBITDA was$240 million , an increase of 17% compared to the prior year.
- The Company repurchased nearly 1.7 million shares of its common stock for
$216 million during the quarter at an average price per share of$129 .
"Despite the challenging macroeconomic backdrop, we had a very strong third quarter, growing contract sales by 27% compared to the prior year driven by strong tour growth," said
Third Quarter 2022 Results
The tables below illustrate the impact of the Alignment on the Company's reported results. In the tables below "*" denotes non-GAAP financial measures and "NM" is not meaningful. Please see "Non-GAAP Financial Measures" for additional information about our reasons for providing these alternative financial measures and limitations on their use.
Consolidated
Three Months Ended |
Three Months Ended 2021 |
Change |
|||||||||||||||||||
As Reported |
Impact of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
|||||||||||||||||
($ in millions) |
Revenue |
Reserve |
Combined |
$ |
% |
$ |
% |
||||||||||||||
Net income attributable to common shareholders |
$ 109 |
$ (29) |
$ (4) |
$ (33) |
$ 76 |
$ 10 |
|
NM |
|
NM |
|||||||||||
Adjusted net income attributable to common shareholders* |
$ 131 |
$ (29) |
$ (4) |
$ (33) |
$ 98 |
$ 70 |
|
87 % |
|
41 % |
|||||||||||
Adjusted EBITDA* |
$ 284 |
$ (39) |
$ (5) |
$ (44) |
$ 240 |
$ 205 |
|
38 % |
|
17 % |
Vacation Ownership
Three Months Ended |
Three Months Ended 2021 |
Change |
||||||||||||||||||
As Reported |
Impact of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
||||||||||||||||
($ in millions) |
Revenue |
Reserve |
Combined |
$ |
% |
$ |
% |
|||||||||||||
Sale of vacation ownership products |
$ 444 |
$ (46) |
$ 19 |
$ (27) |
$ 417 |
$ 330 |
$ 114 |
34 % |
$ 87 |
26 % |
||||||||||
Development profit |
$ 161 |
$ (39) |
$ 14 |
$ (25) |
$ 136 |
$ 93 |
$ 68 |
73 % |
$ 43 |
47 % |
||||||||||
Financing profit |
$ 69 |
$ — |
$ (19) |
$ (19) |
$ 50 |
$ 47 |
$ 22 |
47 % |
$ 3 |
6 % |
||||||||||
Segment financial results attributable to common shareholders |
$ 270 |
$ (29) |
$ (4) |
$ (33) |
$ 237 |
$ 185 |
$ 85 |
46 % |
$ 52 |
29 % |
||||||||||
Segment margin |
33.5 % |
30.6 % |
28.6 % |
4.9 pts |
2.0 pts |
|||||||||||||||
Segment Adjusted EBITDA* |
$ 299 |
$ (39) |
$ (5) |
$ (44) |
$ 255 |
$ 215 |
$ 84 |
39 % |
$ 40 |
19 % |
||||||||||
Segment Adjusted EBITDA margin* |
37.1 % |
32.7 % |
33.2 % |
3.9 pts |
(0.5 pts) |
Exchange & Third-Party Management
Revenues excluding cost reimbursements decreased 3% in the third quarter of 2022 compared to the prior year and increased 11% excluding the sale of VRI Americas in April of 2022.
Segment financial results attributable to common shareholders were
Corporate and Other
General and administrative costs increased
Balance Sheet and Liquidity
The Company ended the quarter with approximately
At the end of the third quarter of 2022, the Company had
Full Year 2022 Outlook (in millions, except per share amounts)
The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2022 expected GAAP results for the Company.
The Company is providing updated guidance, which includes the impact of the Alignment as reflected in the chart below, for the full year 2022. 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) |
2022 Guidance |
Impact of |
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Income before income taxes attributable to common shareholders |
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to |
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Net income attributable to common shareholders |
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to |
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Earnings per share - diluted |
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to |
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Net cash, cash equivalents and restricted cash provided |
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by operating activities |
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to |
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$— |
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Contract sales |
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to |
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$— |
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Adjusted EBITDA* |
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to |
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Adjusted pretax net income* |
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to |
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Adjusted net income attributable to common shareholders* |
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to |
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Adjusted earnings per share - diluted* |
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to |
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Adjusted free cash flow* |
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to |
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$— |
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
Third Quarter 2022 Financial Results Conference Call
The Company will hold a conference call on
About
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 expectations for future growth and projections for full year 2022. 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: the continuing effects of the COVID-19 pandemic or future health crises, including quarantines or other government-imposed travel or health-related restrictions; the length and severity of the COVID-19 pandemic or future health crises, including short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following the COVID-19 pandemic or future health crises or as effective treatments or vaccines against variants of the COVID-19 virus or future health crises become widely available; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price inflation; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the COVID-19 pandemic and the ongoing conflict between
Financial Schedules Follow
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FINANCIAL SCHEDULES |
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QUARTER 3, 2022 |
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TABLE OF CONTENTS |
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Summary Financial Information |
A-1 |
||
Adjusted EBITDA by Segment |
A-2 |
||
Consolidated Statements of Income |
A-3 |
||
Revenues and Profit by Segment |
A-5 |
||
Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted |
A-9 |
||
Adjusted EBITDA |
A-10 |
||
Consolidated Contract Sales to Adjusted Development Profit |
A-11 |
||
Vacation Ownership and Exchange & Third-Party Management Segment Adjusted EBITDA |
A-13 |
||
Consolidated Balance Sheets |
A-14 |
||
Consolidated Statements of Cash Flows |
A-15 |
||
2022 Outlook |
|||
Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share - Diluted |
|||
and Adjusted EBITDA |
A-17 |
||
Adjusted Free Cash Flow |
A-18 |
||
Quarterly Operating Metrics |
A-19 |
||
Non-GAAP Financial Measures |
A-20 |
A-1 |
||||||||||||
|
||||||||||||
SUMMARY FINANCIAL INFORMATION |
||||||||||||
(In millions, except VPG, tours, total active members, average revenue per member and per share amounts) |
||||||||||||
(Unaudited) |
||||||||||||
Three Months Ended |
Change % |
Nine Months Ended |
Change % |
|||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
|
||||||||||||
Total consolidated contract sales |
$ 483 |
$ 380 |
27 % |
$ 1,383 |
$ 968 |
43 % |
||||||
VPG |
$ 4,353 |
$ 4,300 |
1 % |
$ 4,544 |
$ 4,377 |
4 % |
||||||
Tours |
104,000 |
84,098 |
24 % |
285,362 |
209,869 |
36 % |
||||||
Total active members (000's)(1) |
1,591 |
1,313 |
21 % |
1,591 |
1,313 |
21 % |
||||||
Average revenue 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 % |
||||||
Income before income taxes and noncontrolling interests |
$ 169 |
$ 58 |
NM |
$ 437 |
$ 57 |
NM |
||||||
Net income (loss) attributable to common 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 income |
$ 207 |
$ 118 |
74 % |
$ 508 |
$ 165 |
NM |
||||||
Adjusted net income attributable to common shareholders |
$ 131 |
$ 70 |
87 % |
$ 343 |
$ 87 |
NM |
||||||
Adjusted earnings per share - diluted |
$ 3.02 |
$ 1.60 |
89 % |
$ 7.53 |
$ 2.01 |
NM |
||||||
Financial Measures, Excluding the Impact of Alignment* |
||||||||||||
Revenues |
$ 1,225 |
$ 1,052 |
16 % |
$ 3,441 |
$ 2,790 |
23 % |
||||||
Income before income taxes and noncontrolling interests |
$ 125 |
$ 58 |
NM |
$ 393 |
$ 57 |
NM |
||||||
Net income (loss) attributable to common 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 income |
$ 163 |
$ 118 |
38 % |
$ 464 |
$ 165 |
NM |
||||||
Adjusted net income attributable to common shareholders |
$ 98 |
$ 70 |
41 % |
$ 310 |
$ 87 |
NM |
||||||
Adjusted earnings per share - diluted |
$ 2.28 |
$ 1.60 |
43 % |
$ 6.83 |
$ 2.01 |
NM |
(1)Includes members at the end of each period for the |
|||||||||||
* Denotes non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information about our reasons for providing these alternative financial |
|||||||||||
NM = Not meaningful. |
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A-2 |
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|
||||||||||||||||
ADJUSTED EBITDA BY SEGMENT |
||||||||||||||||
(In millions) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Three Months Ended 2021 |
Change |
||||||||||||||
As |
Impact of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
||||||||||||
Revenue |
Reserve |
Combined |
||||||||||||||
Vacation Ownership |
$ 299 |
$ (39) |
$ (5) |
$ (44) |
$ 255 |
$ 215 |
39 % |
19 % |
||||||||
Exchange & Third-Party Management |
39 |
— |
— |
— |
39 |
35 |
7 % |
7 % |
||||||||
Segment Adjusted EBITDA* |
338 |
(39) |
(5) |
(44) |
294 |
250 |
35 % |
17 % |
||||||||
General and administrative |
(54) |
— |
— |
— |
(54) |
(45) |
(17 %) |
(17 %) |
||||||||
Adjusted EBITDA* |
$ 284 |
$ (39) |
$ (5) |
$ (44) |
$ 240 |
$ 205 |
38 % |
17 % |
||||||||
Nine Months Ended |
Nine Months Ended 2021 |
Change |
||||||||||||||
As Reported |
Impact of Alignment |
As Adjusted* |
As Reported |
As Adjusted* |
||||||||||||
Revenue |
Reserve |
Combined |
||||||||||||||
Vacation Ownership |
$ 772 |
$ (39) |
$ (5) |
$ (44) |
$ 728 |
$ 465 |
66 % |
57 % |
||||||||
Exchange & Third-Party Management |
117 |
— |
— |
— |
117 |
113 |
2 % |
2 % |
||||||||
Segment Adjusted EBITDA* |
889 |
(39) |
(5) |
(44) |
845 |
578 |
54 % |
46 % |
||||||||
General and administrative |
(162) |
— |
— |
— |
(162) |
(140) |
(15 %) |
(15 %) |
||||||||
Adjusted EBITDA* |
$ 727 |
$ (39) |
$ (5) |
$ (44) |
$ 683 |
$ 438 |
66 % |
56 % |
* Denotes non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information about our reasons for providing these alternative financial |
A-3 |
||||||||
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(In millions, except per share amounts) |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
||||||||
|
2021 |
|||||||
As Reported |
Impact of Alignment |
As Adjusted* |
||||||
REVENUES |
||||||||
Sale of vacation ownership products |
$ 444 |
$ (27) |
$ 417 |
$ 330 |
||||
Management and exchange |
198 |
— |
198 |
225 |
||||
Rental |
165 |
— |
165 |
130 |
||||
Financing |
74 |
— |
74 |
69 |
||||
Cost reimbursements |
371 |
— |
371 |
298 |
||||
TOTAL REVENUES |
1,252 |
(27) |
1,225 |
1,052 |
||||
EXPENSES |
||||||||
Cost of vacation ownership products |
76 |
(2) |
74 |
71 |
||||
Marketing and sales |
207 |
— |
207 |
166 |
||||
Management and exchange |
101 |
— |
101 |
138 |
||||
Rental |
126 |
— |
126 |
84 |
||||
Financing |
5 |
19 |
24 |
22 |
||||
General and administrative |
62 |
— |
62 |
54 |
||||
Depreciation and amortization |
33 |
— |
33 |
35 |
||||
Litigation charges |
2 |
— |
2 |
2 |
||||
Royalty fee |
28 |
— |
28 |
26 |
||||
Impairment |
1 |
— |
1 |
— |
||||
Cost reimbursements |
371 |
— |
371 |
298 |
||||
TOTAL EXPENSES |
1,012 |
17 |
1,029 |
896 |
||||
Losses and other expense, net |
(2) |
— |
(2) |
(31) |
||||
Interest expense |
(34) |
— |
(34) |
(41) |
||||
Transaction and integration costs |
(34) |
— |
(34) |
(27) |
||||
Other |
(1) |
— |
(1) |
1 |
||||
INCOME BEFORE INCOME TAXES AND |
||||||||
NONCONTROLLING INTERESTS |
169 |
(44) |
125 |
58 |
||||
Provision for income taxes |
(59) |
11 |
(48) |
(47) |
||||
NET INCOME (LOSS) |
110 |
(33) |
77 |
11 |
||||
Net income attributable to noncontrolling interests |
(1) |
— |
(1) |
(1) |
||||
NET INCOME (LOSS) ATTRIBUTABLE TO |
||||||||
COMMON SHAREHOLDERS |
$ 109 |
$ (33) |
$ 76 |
$ 10 |
||||
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO |
||||||||
COMMON SHAREHOLDERS |
||||||||
Basic |
$ 2.76 |
$ (0.80) |
$ 1.96 |
$ 0.24 |
||||
Diluted |
$ 2.53 |
$ (0.74) |
$ 1.79 |
$ 0.23 |
* Denotes non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information about our reasons |
|||||||
NOTE: Earnings (loss) per share - Basic and Earnings (loss) per share - Diluted are calculated using whole dollars. |
A-4 |
||||||||
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(In millions, except per share amounts) |
||||||||
(Unaudited) |
||||||||
Nine Months Ended |
||||||||
|
2021 |
|||||||
As Reported |
Impact of Alignment |
As Adjusted* |
||||||
REVENUES |
||||||||
Sale of vacation ownership products |
$ 1,179 |
$ (27) |
$ 1,152 |
$ 789 |
||||
Management and exchange |
623 |
— |
623 |
638 |
||||
Rental |
438 |
— |
438 |
340 |
||||
Financing |
217 |
— |
217 |
196 |
||||
Cost reimbursements |
1,011 |
— |
1,011 |
827 |
||||
TOTAL REVENUES |
3,468 |
(27) |
3,441 |
2,790 |
||||
EXPENSES |
||||||||
Cost of vacation ownership products |
216 |
(2) |
214 |
178 |
||||
Marketing and sales |
603 |
— |
603 |
439 |
||||
Management and exchange |
330 |
— |
330 |
381 |
||||
Rental |
294 |
— |
294 |
247 |
||||
Financing |
49 |
19 |
68 |
64 |
||||
General and administrative |
187 |
— |
187 |
166 |
||||
Depreciation and amortization |
98 |
— |
98 |
112 |
||||
Litigation charges |
7 |
— |
7 |
8 |
||||
Royalty fee |
84 |
— |
84 |
78 |
||||
Impairment |
1 |
— |
1 |
5 |
||||
Cost reimbursements |
1,011 |
— |
1,011 |
827 |
||||
TOTAL EXPENSES |
2,880 |
17 |
2,897 |
2,505 |
||||
Gains (losses) and other income (expense), net |
39 |
— |
39 |
(27) |
||||
Interest expense |
(91) |
— |
(91) |
(128) |
||||
Transaction and integration costs |
(99) |
— |
(99) |
(75) |
||||
Other |
— |
— |
— |
2 |
||||
INCOME BEFORE INCOME TAXES AND |
||||||||
NONCONTROLLING INTERESTS |
437 |
(44) |
393 |
57 |
||||
Provision for income taxes |
(134) |
11 |
(123) |
(63) |
||||
NET INCOME (LOSS) |
303 |
(33) |
270 |
(6) |
||||
Net income attributable to noncontrolling interests |
— |
— |
— |
(6) |
||||
NET INCOME (LOSS) ATTRIBUTABLE TO |
||||||||
COMMON SHAREHOLDERS |
$ 303 |
$ (33) |
$ 270 |
$ (12) |
||||
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO |
||||||||
COMMON SHAREHOLDERS |
||||||||
Basic |
$ 7.39 |
$ (0.78) |
$ 6.61 |
$ (0.28) |
||||
Diluted |
$ 6.68 |
$ (0.69) |
$ 5.99 |
$ (0.28) |
* Denotes non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information about our reasons |
|||||||
NOTE: Earnings (loss) per share - Basic and Earnings (loss) per share - Diluted are calculated using whole dollars. |
A-5 |
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|
||||||||||||||
REVENUES AND PROFIT BY SEGMENT |
||||||||||||||
for the three months ended |
||||||||||||||
(In millions) |
||||||||||||||
(Unaudited) |
||||||||||||||
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 |
$ 444 |
$ (27) |
$ 417 |
$ — |
$ — |
$ 444 |
$ 417 |
|||||||
Management and exchange(1) |
||||||||||||||
Ancillary revenues |
63 |
— |
63 |
1 |
— |
64 |
64 |
|||||||
Management fee revenues |
41 |
— |
41 |
7 |
(1) |
47 |
47 |
|||||||
Exchange and other services revenues |
32 |
— |
32 |
47 |
8 |
87 |
87 |
|||||||
Management and exchange |
136 |
— |
136 |
55 |
7 |
198 |
198 |
|||||||
Rental |
154 |
— |
154 |
11 |
— |
165 |
165 |
|||||||
Financing |
74 |
— |
74 |
— |
— |
74 |
74 |
|||||||
Cost reimbursements(1) |
374 |
— |
374 |
5 |
(8) |
371 |
371 |
|||||||
TOTAL REVENUES |
$ 1,182 |
$ (27) |
$ 1,155 |
$ 71 |
$ (1) |
$ 1,252 |
$ 1,225 |
|||||||
PROFIT |
||||||||||||||
Development |
$ 161 |
$ (25) |
$ 136 |
$ — |
$ — |
$ 161 |
$ 136 |
|||||||
Management and exchange(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 |
||||||||||||||
General and administrative |
— |
— |
— |
— |
(62) |
(62) |
(62) |
|||||||
Depreciation and amortization |
(23) |
— |
(23) |
(8) |
(2) |
(33) |
(33) |
|||||||
Litigation charges |
(2) |
— |
(2) |
— |
— |
(2) |
(2) |
|||||||
Royalty fee |
(28) |
— |
(28) |
— |
— |
(28) |
(28) |
|||||||
Impairment |
(1) |
— |
(1) |
— |
— |
(1) |
(1) |
|||||||
Gains (losses) and other income (expense), net |
1 |
— |
1 |
(1) |
(2) |
(2) |
(2) |
|||||||
Interest expense |
— |
— |
— |
— |
(34) |
(34) |
(34) |
|||||||
Transaction and integration costs |
(2) |
— |
(2) |
— |
(32) |
(34) |
(34) |
|||||||
Other |
(1) |
— |
(1) |
— |
— |
(1) |
(1) |
|||||||
INCOME (LOSS) BEFORE INCOME |
||||||||||||||
TAXES AND NONCONTROLLING |
||||||||||||||
INTERESTS |
270 |
(44) |
226 |
29 |
(130) |
169 |
125 |
|||||||
Provision for income taxes |
— |
11 |
11 |
— |
(59) |
(59) |
(48) |
|||||||
NET INCOME (LOSS) |
270 |
(33) |
237 |
29 |
(189) |
110 |
77 |
|||||||
Net income attributable to noncontrolling interests(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) Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the relevant accounting guidance, and |
|||||||||||||
(2) Segment margin represents the applicable segment's net income or loss attributable to common shareholders divided by the applicable segment's total revenues |
|||||||||||||
* Denotes non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information about our reasons for providing these alternative |
A-6 |
||||||||
|
||||||||
REVENUES AND PROFIT BY SEGMENT |
||||||||
for the three months ended |
||||||||
(In millions) |
||||||||
(Unaudited) |
||||||||
Reportable Segment |
Corporate and Other |
Total |
||||||
Vacation Ownership |
Exchange & Third-Party Management |
|||||||
REVENUES |
||||||||
Sales of vacation ownership products |
$ 330 |
$ — |
$ — |
$ 330 |
||||
Management and exchange(1) |
||||||||
Ancillary revenues |
55 |
1 |
— |
56 |
||||
Management fee revenues |
40 |
10 |
(4) |
46 |
||||
Exchange and other services revenues |
31 |
48 |
44 |
123 |
||||
Management and exchange |
126 |
59 |
40 |
225 |
||||
Rental |
121 |
9 |
— |
130 |
||||
Financing |
69 |
— |
— |
69 |
||||
Cost reimbursements(1) |
328 |
9 |
(39) |
298 |
||||
TOTAL REVENUES |
$ 974 |
$ 77 |
$ 1 |
$ 1,052 |
||||
PROFIT |
||||||||
Development |
$ 93 |
$ — |
$ — |
$ 93 |
||||
Management and exchange(1) |
71 |
26 |
(10) |
87 |
||||
Rental(1) |
24 |
9 |
13 |
46 |
||||
Financing |
47 |
— |
— |
47 |
||||
TOTAL PROFIT |
235 |
35 |
3 |
273 |
||||
OTHER |
||||||||
General and administrative |
— |
— |
(54) |
(54) |
||||
Depreciation and amortization |
(24) |
(11) |
— |
(35) |
||||
Litigation charges |
(1) |
— |
(1) |
(2) |
||||
Restructuring |
1 |
(1) |
— |
— |
||||
Royalty fee |
(26) |
— |
— |
(26) |
||||
Losses and other expense, net |
— |
— |
(31) |
(31) |
||||
Interest expense |
— |
— |
(41) |
(41) |
||||
Transaction and integration costs |
(1) |
— |
(26) |
(27) |
||||
Other |
1 |
— |
— |
1 |
||||
INCOME (LOSS) BEFORE INCOME TAXES AND |
||||||||
NONCONTROLLING INTERESTS |
185 |
23 |
(150) |
58 |
||||
Provision for income taxes |
— |
— |
(47) |
(47) |
||||
NET INCOME (LOSS) |
185 |
23 |
(197) |
11 |
||||
Net income attributable to noncontrolling interests(1) |
— |
— |
(1) |
(1) |
||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON |
||||||||
SHAREHOLDERS |
$ 185 |
$ 23 |
$ (198) |
$ 10 |
||||
SEGMENT MARGIN(2) |
29 % |
35 % |
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the relevant |
|||||||
(2) Segment margin represents the applicable segment's net income or loss attributable to common shareholders divided by the applicable |
A-7 |
||||||||||||||
|
||||||||||||||
REVENUES AND PROFIT BY SEGMENT |
||||||||||||||
for the nine months ended |
||||||||||||||
(In millions) |
||||||||||||||
(Unaudited) |
||||||||||||||
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 |
$ 1,179 |
$ (27) |
$ 1,152 |
$ — |
$ — |
$ 1,179 |
$ 1,152 |
|||||||
Management and exchange(1) |
||||||||||||||
Ancillary revenues |
183 |
— |
183 |
3 |
— |
186 |
186 |
|||||||
Management fee revenues |
124 |
— |
124 |
28 |
(5) |
147 |
147 |
|||||||
Exchange and other services revenues |
95 |
— |
95 |
146 |
49 |
290 |
290 |
|||||||
Management and exchange |
402 |
— |
402 |
177 |
44 |
623 |
623 |
|||||||
Rental |
405 |
— |
405 |
33 |
— |
438 |
438 |
|||||||
Financing |
217 |
— |
217 |
— |
— |
217 |
217 |
|||||||
Cost reimbursements(1) |
1,026 |