Jun 30, 2024

Marriott Vacations Q2 2024 Earnings Report

Reported a mixed second quarter with rentals exceeding expectations, lower VPGs impacting contract sales, and increased sales reserves due to loan delinquencies.

Key Takeaways

Marriott Vacations Worldwide reported second quarter 2024 financial results with consolidated vacation ownership contract sales declining 1% to $449 million. Net income attributable to common stockholders was $37 million, or $0.98 per share, while adjusted net income was $42 million, or $1.10 per share. Adjusted EBITDA decreased 29% to $157 million, reflecting a $57 million net increase to the company’s sales reserve.

Consolidated Vacation Ownership contract sales declined 1% compared to the second quarter of 2023 to $449 million. Excluding Maui, contract sales increased 3% compared to the prior year.

The Company recorded a $70 million increase to its sales reserve reflecting higher expected future defaults on its existing vacation ownership notes receivable portfolio.

Net income attributable to common stockholders was $37 million compared to $90 million in the prior year, and fully diluted earnings per share was $0.98.

Adjusted EBITDA decreased 29% compared to the prior year to $157 million reflecting a $57 million net increase to the Company’s sales reserve.

Total Revenue
$1.14B
Previous year: $1.18B
-3.2%
EPS
$1.1
Previous year: $2.19
-49.8%
VPG
$3.74K
Previous year: $3.97K
-5.7%
Total Active Members
1.53M
Previous year: 1.57M
-2.3%
ARPM
$38.3
Previous year: $39.3
-2.5%
Gross Profit
$198M
Previous year: $481M
-58.8%
Cash and Equivalents
$206M
Previous year: $242M
-14.9%
Free Cash Flow
$17M
Previous year: $51M
-66.7%
Total Assets
$9.61B
Previous year: $9.48B
+1.4%

Marriott Vacations

Marriott Vacations

Forward Guidance

The Company provides updated full year 2024 guidance.

Positive Outlook

  • Contract sales are expected to be between $1,790 million and $1,825 million.
  • Net income attributable to common stockholders is projected to be between $195 million and $215 million.
  • Diluted earnings per share are anticipated to be between $5.05 and $5.55.
  • Adjusted EBITDA is expected to range from $685 million to $715 million.
  • Adjusted earnings per share - diluted are projected to be between $5.90 and $6.45.