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Mar 31, 2020

Hilton Grand Vacations Q1 2020 Earnings Report

Hilton Grand Vacations reported first quarter results, reducing fixed costs and strengthening balance sheet in response to COVID-19.

Key Takeaways

Hilton Grand Vacations' first quarter results were significantly impacted by the COVID-19 pandemic, with total revenues decreasing to $351 million compared to $450 million in the same period of 2019, and net income dropping to $8 million from $55 million. The company implemented measures to mitigate the challenges, including cost structure adjustments and spending plan revisions. Contract sales decreased by 24% year-over-year, while net owner growth for the 12 months ended March 31, 2020, was 5.3%.

Total revenues for the first quarter were $351 million, compared to $450 million for the same period in 2019, affected by a $47 million deferral.

Net income for the first quarter was $8 million, compared to $55 million for the same period in 2019, affected by a net deferral of $27 million.

Diluted EPS for the first quarter was $0.09, compared to $0.58 for the same period in 2019, affected by a net deferral of $27 million or $0.31 per share.

Adjusted EBITDA for the first quarter was $33 million, compared to $102 million for the same period in 2019, affected by a net deferral of $27 million.

Total Revenue
$351M
Previous year: $450M
-22.0%
EPS
$0.4
Previous year: $0.58
-31.0%
VPG
$3.51K
Previous year: $3.68K
-4.7%
Tour flow
66.97K
Previous year: 82.64K
-19.0%
Gross Profit
$69M
Previous year: $143M
-51.7%
Cash and Equivalents
$669M
Previous year: $158M
+323.4%
Free Cash Flow
$45M
Previous year: $8M
+462.5%
Total Assets
$3.7B
Previous year: $2.96B
+25.1%

Hilton Grand Vacations

Hilton Grand Vacations

Hilton Grand Vacations Revenue by Segment

Forward Guidance

The Company has withdrawn its prior Full Year 2020 Guidance due to the increased uncertainty created by the impact of COVID-19. The Company continues to be impacted by the pandemic and the various government mandates in nearly all of the locations in which it operates. It is unknown how long these adverse conditions and restrictions will continue.

Revenue & Expenses

Visualization of income flow from segment revenue to net income