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Jun 30, 2022

Marriott Vacations Q2 2022 Earnings Report

Reported strong second-quarter financial results with significant growth in contract sales and adjusted EBITDA.

Key Takeaways

Marriott Vacations Worldwide reported a strong second quarter in 2022, with a 40% increase in consolidated vacation ownership contract sales, a 55% increase in adjusted EBITDA, and significant returns to shareholders. The company also introduced Abound by Marriott Vacations, a new program providing more options and access for Owners.

Consolidated Vacation Ownership contract sales were $506 million, a 40% increase compared to the second quarter of 2021, and VPG increased 7% to $4,613.

Net income attributable to common shareholders was $136 million, or $2.97 fully diluted earnings per share.

Adjusted EBITDA was $255 million, a 55% increase compared to the second quarter of 2021, as the Company continues to see a strong recovery in the business.

The Company returned $219 million to shareholders, repurchasing more than 1.4 million shares of its common stock for $193 million and paying a quarterly dividend of $26 million.

Total Revenue
$1.16B
Previous year: $979M
+18.9%
EPS
$2.87
Previous year: $0.85
+237.6%
VPG
$4.61K
Previous year: $4.3K
+7.2%
Total Active Members
1.6M
Previous year: 1.32M
+20.8%
ARPM
$38.8
Previous year: $46.4
-16.3%
Gross Profit
$519M
Previous year: $383M
+35.5%
Cash and Equivalents
$324M
Previous year: $1.3B
-75.1%
Free Cash Flow
$75M
Previous year: $204M
-63.2%
Total Assets
$9.34B
Previous year: $10.4B
-10.3%

Marriott Vacations

Marriott Vacations

Forward Guidance

The company is providing guidance for the full year 2022. Income before income taxes attributable to common shareholders is expected to be between $511 million and $551 million. Adjusted EBITDA is expected to be between $880 million and $930 million.

Positive Outlook

  • Net income attributable to common shareholders is expected to be between $365 million and $395 million.
  • Earnings per share - diluted is expected to be between $8.15 and $8.81.
  • Adjusted net income attributable to common shareholders is expected to be between $425 million and $465 million.
  • Adjusted earnings per share - diluted is expected to be between $9.47 and $10.35.
  • Adjusted free cash flow is expected to be between $650 million and $730 million.