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Jun 30, 2023

Marriott Vacations Q2 2023 Earnings Report

Reported second quarter 2023 financial results, showing a decrease in contract sales and adjusted EBITDA, but highlighting strong occupancy rates and strategic program transitions.

Key Takeaways

Marriott Vacations Worldwide reported a decrease in net income and adjusted EBITDA for Q2 2023, primarily due to a decline in consolidated vacation ownership contract sales. The company is focusing on the transition to the Abound by Marriott Vacations program and the integration of Hyatt and legacy-Welk businesses.

Consolidated Vacation Ownership contract sales decreased by 10% to $453 million.

Net income attributable to common shareholders was $90 million, with a fully diluted earnings per share of $2.17.

Adjusted EBITDA decreased by 13% to $222 million.

The company repurchased 621,000 shares for $82 million and increased share repurchase authorization to $600 million.

Total Revenue
$1.18B
Previous year: $1.16B
+1.2%
EPS
$2.19
Previous year: $2.87
-23.7%
VPG
$3.97K
Previous year: $4.61K
-14.0%
Total Active Members
1.57M
Previous year: 1.6M
-1.9%
ARPM
$39.3
Previous year: $38.8
+1.3%
Gross Profit
$481M
Previous year: $519M
-7.3%
Cash and Equivalents
$242M
Previous year: $324M
-25.3%
Free Cash Flow
$51M
Previous year: $75M
-32.0%
Total Assets
$9.48B
Previous year: $9.34B
+1.5%

Marriott Vacations

Marriott Vacations

Forward Guidance

The Company is updating its full year 2023 outlook.

Positive Outlook

  • Contract sales are expected to be between $1,840 million and $1,900 million.
  • Net income attributable to common shareholders is projected to be between $355 million and $375 million.
  • Diluted earnings per share are estimated to be between $8.51 and $8.96.
  • Adjusted EBITDA is expected to be between $880 million and $910 million.
  • Adjusted earnings per share - diluted are projected to be between $9.76 and $10.22.