Marriott Vacations Worldwide Corp (VAC) Q3 2024 Earnings Call Highlights: Strong Contract Sales ...

GuruFocus.com11-08

Contract Sales Growth: Increased 5% in the quarter compared to last year; nearly 2% excluding Maui. Tour Growth: Increased 10% year over year. VPG (Volume Per Guest): Decreased 4% overall; increased ...

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nearly 2% excluding Maui.\nTour Growth: Increased 10% year over year.\nVPG (Volume Per Guest): Decreased 4% overall; increased ...</p>\n\n<a href=\"https://finance.yahoo.com/news/marriott-vacations-worldwide-corp-vac-071238703.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VAC","symbol_name":"万豪度假环球","start_time":0,"source_url":"https://finance.yahoo.com/news/marriott-vacations-worldwide-corp-vac-071238703.html","article_id":"2481110422","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/iFS81A5e5cqFIfD3OgTVlQ--~B/aD0yNDU7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/6db71e269288914960c18860c9fe781c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481110422","pubTimestamp":1731049958,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Contract Sales Growth: Increased 5% in the quarter compared to last year; nearly 2% excluding Maui.VPG : Decreased 4% overall; increased in Asia Pacific.Development Profit: Increased to $105 million year over year.Occupancy Rate: Increased 700 basis points year over year.Revenue Growth: 9% increase in the vacation ownership segment.Rental Profit: Increased by $14 million compared to the prior year.Adjusted EBITDA: Total company adjusted EBITDA increased to $198 million.Liquidity: More than $900 million in liquidity at the end of the quarter.Securitization: Raised $445 million at a blended interest rate of 4.5%.Adjusted Free Cash Flow: Expected to be in the $300 to $340 million range.G&A Expenses: Expected to be down around $20 million for the year.GuruFocus has detected 2 Warning Sign with VAC.Marriott Vacations Worldwide Corp  reported a 5% increase in contract sales in the vacation ownership segment compared to last year.Q: The full-year guidance was raised modestly. Can you explain ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"VAC":"万豪度假环球"},"translate_title":"万豪度假全球公司(VAC)2024年第三季度收益看涨期权亮点：强劲的合同销售……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VAC":1},"content_text":"Contract Sales Growth: Increased 5% in the quarter compared to last year; nearly 2% excluding Maui.\nTour Growth: Increased 10% year over year.\nVPG (Volume Per Guest): Decreased 4% overall; increased in Asia Pacific.\nDevelopment Profit: Increased to $105 million year over year.\nOccupancy Rate: Increased 700 basis points year over year.\nRevenue Growth: 9% increase in the vacation ownership segment.\nRental Profit: Increased by $14 million compared to the prior year.\nAdjusted EBITDA: Total company adjusted EBITDA increased to $198 million.\nLiquidity: More than $900 million in liquidity at the end of the quarter.\nLeverage Ratio: Declined to 3.9 times.\nSecuritization: Raised $445 million at a blended interest rate of 4.5%.\nAdjusted Free Cash Flow: Expected to be in the $300 to $340 million range.\nG&A Expenses: Expected to be down around $20 million for the year.\n\n\nWarning! GuruFocus has detected 2 Warning Sign with VAC.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nMarriott Vacations Worldwide Corp (NYSE:VAC) reported a 5% increase in contract sales in the vacation ownership segment compared to last year.\nOccupancy rates are running above 90%, indicating strong demand and recovery post-Maui wildfires.\nThe company has successfully implemented the Bound by Marriott Vacation program, enhancing ease of booking and expanding choices for owners.\nMarriott Vacations Worldwide Corp (NYSE:VAC) has added nearly 1,600 first-time buyers this year, with a significant portion expected to purchase additional points.\nThe company is making strategic investments in technology and talent to personalize and simplify the guest experience, positioning for future growth.\n\n Negative Points \n\nThe macroeconomic environment remains dynamic, with pressures from rising interest rates and higher inflation impacting operations.\nAdjusted EBITDA in the exchange and third-party management segment declined by $7 million year over year.\nSales and marketing expenses have increased year over year, impacting overall profitability.\nThe company faced a loss of selling days due to Hurricane Milton, costing approximately $8 million in contract sales.\nHigher financing interest expenses are expected to continue impacting margins over the next few years.\n\n Q & A Highlights \nQ: Can you elaborate on the first-time buyer financing strategy and its impact on loan loss provisions? A: John Geller, President and CEO, clarified that there were no changes to underwriting standards, such as FICO scores, so there should be no impact on loan loss provisions.\nQ: The full-year guidance was raised modestly. Can you explain the reasons behind this and the expected savings from the $50 to $100 million efficiency initiatives? A: John Geller explained that the guidance increase was due to better-than-expected third-quarter results in areas other than contract sales. The efficiency initiatives are planned for 2025, with more details to be shared in February. Jason Marino, CFO, added that the guide-up was due to better performance in parts of the business other than contract sales.\nQ: Are there any additional factors to consider regarding contract sales and marketing expenses as we compare year-over-year results? A: John Geller noted that higher sales reserves impacted marketing and sales costs as a percentage of revenue. The focus remains on efficient marketing and driving higher VPGs to improve these costs.\nQ: Can you provide more color on the Strategic Business Operations Office and its objectives? A: John Geller explained that the office aims to accelerate growth opportunities and cost efficiencies with detailed execution plans. It focuses on internal growth in core vacation ownership and exchange businesses, while also exploring new products and potential acquisitions.\nQ: Is the cost-saving initiative related to Marriott Corporation's recent initiative? A: John Geller clarified that the initiatives are unrelated, as Marriott Vacations Worldwide Corp has been independent since 2011, and the initiatives are specific to their business needs.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"2","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481110422"}