Latest news with #MarriottVacationsWorldwideCorporation
Business Wire
04-08-2025
- Business
- Business Wire
Marriott Vacations Worldwide Reports Second Quarter 2025 Financial Results
ORLANDO, Fla.--(BUSINESS WIRE)--Marriott Vacations Worldwide Corporation (NYSE: VAC) ('MVW,' the 'Company,' 'we' or 'our') reported financial results for the second quarter of 2025. Second Quarter 2025 Highlights Consolidated contract sales were $445 million in the quarter. Net income attributable to common stockholders was $69 million and diluted earnings per share was $1.77. Adjusted net income attributable to common stockholders was $77 million and adjusted diluted earnings per share was $1.96. Adjusted EBITDA was $203 million. The Company reiterates its full-year outlook. 'We delivered strong results in the quarter driving higher year-over-year first time buyer sales and reiterating our full year guidance, reflecting the resilience of our business model and the hard work of our associates,' said John Geller, president and chief executive officer. 'Exiting the first half of the year, our business is well positioned. Leisure consumers continue to prioritize travel and timeshare remains a great value for many of them, and we remain on track to deliver $150 million to $200 million in annualized Adjusted EBITDA benefits from our modernization program by the end of next year.' In the tables below '*' denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. Consolidated contract sales declined less than 1% year-over-year with higher tours offset by lower VPG, with about a third of the VPG decline due to a higher mix of first time buyer sales. Segment Adjusted EBITDA increased 28% compared to the prior year driven primarily by last year's sales reserve adjustment, which reduced development profit by $57 million. Revenues excluding cost reimbursements and Segment Adjusted EBITDA decreased year-over-year primarily due to lower revenue at Interval International. Corporate and Other General and administrative costs increased 12% in the second quarter compared to the prior year due to lower prior year variable compensation related to the sales reserve adjustment. Balance Sheet and Liquidity The Company ended the quarter with $799 million in liquidity, including $205 million of cash and cash equivalents and $539 million of available capacity under its revolving corporate credit facility. The Company also had $1 billion of total inventory at the end of the quarter, including $323 million classified as a component of Property and equipment. The Company had $3 billion of corporate debt and $2 billion of non-recourse debt related to its securitized vacation ownership notes receivable at the end of the second quarter. The guidance provided above excludes impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, each of which the Company cannot forecast with sufficient accuracy to factor them into the guidance provided above and without unreasonable efforts, and which may be significant. As a result, the full year 2025 outlook is presented only on a non-GAAP basis and is not reconciled to the most comparable GAAP measures. Where one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results. Non-GAAP Financial Information Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. Second Quarter 2025 Financial Results Conference Call The Company will hold a conference call on August 5, 2025 at 10:00 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at An audio replay of the conference call will be available for 30 days on the Company's website. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has approximately 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit The Company routinely posts important information, including news releases, announcements and other statements about its business and results of operations, that may be deemed material to investors on the Investor Relations section of the Company's website, The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company's disclosure obligations under Regulation FD. Investors should monitor the Investor Relations section of the Company's website in addition to following the Company's press releases, filings with the SEC, public conference calls and webcasts. Note on forward-looking statements This press release and accompanying schedules contain 'forward-looking statements' within the meaning of federal securities laws, including statements about opportunities for accelerated growth, enhanced operational efficiencies and cost savings, expected annualized benefits of the Company's initiatives that the Company expects to realize by the end of 2026, full year 2025 outlook for contract sales, results of operations and cash flows and the Company's beliefs regarding the power of its business model. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words 'believe,' 'expect,' 'plan,' 'intend,' 'anticipate,' 'estimate,' 'predict,' 'potential,' 'continue,' 'may,' 'might,' 'should,' 'could' or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: uncertainty in the current global macroeconomic environment created by rapid governmental policy and regulatory changes, including those affecting international trade; a future health crisis and responses to a health crisis, including possible quarantines or other government imposed travel or health-related restrictions and the effects of a health crisis, including the short and longer-term impact on consumer confidence and demand for travel and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; failure of vendors and other third parties to timely comply with their contractual obligations; worker absenteeism; price inflation; difficulties associated with implementing new or maintaining existing technology; the ability to use artificial intelligence ('AI') technologies successfully and potential business, compliance, or reputational risks associated with the use of AI technologies; changes in privacy laws; the impact of a future banking crisis; impacts from natural or man-made disasters and wildfires, including the Maui and Los Angeles area wildfires; delinquency and default rates; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the ongoing conflicts between Russia and Ukraine, Israel and Gaza, Israel and Iran, and elsewhere in the world and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of changes in interest rates; the effects of steps we have taken and may continue to take to reduce operating costs and accelerate growth and profitability; political or social strife; and other matters referred to under the heading 'Risk Factors' in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements. Financial Schedules Follow A-1 MARRIOTT VACATIONS WORLDWIDE CORPORATION SUMMARY FINANCIAL INFORMATION (In millions, except per share amounts) (Unaudited) Three Months Ended Change % Six Months Ended Change % June 30, 2025 June 30, 2024** June 30, 2025 June 30, 2024** GAAP Measures Revenues $1,246 $1,140 9% $2,446 $2,335 5% Revenues excluding cost reimbursements $839 $762 10% $1,666 $1,566 6% Income before income taxes and noncontrolling interests $94 $48 98% $196 $129 52% Net income attributable to common stockholders $69 $37 89% $125 $84 50% Diluted shares 41.7 42.2 (1%) 41.9 42.2 (1%) Earnings per share - diluted $1.77 $0.98 81% $3.23 $2.20 47% Non-GAAP Measures* Adjusted EBITDA $203 $158 29% $395 $345 15% Adjusted pretax income $110 $70 57% $216 $172 25% Adjusted net income attributable to common stockholders $77 $42 84% $142 $113 25% Adjusted earnings per share - diluted $1.96 $1.10 78% $3.62 $2.91 24% * Denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. ** Prior year amounts have been reclassified to conform with our current year presentation. Please see 'Non-GAAP Financial Measures' for additional information. Expand A-2 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 REVENUES Sale of vacation ownership products $ 370 $ 309 $ 725 $ 661 Management and exchange 219 215 434 426 Rental 160 153 329 311 Financing 90 85 178 168 Cost reimbursements 407 378 780 769 TOTAL REVENUES 1,246 1,140 2,446 2,335 EXPENSES Cost of vacation ownership products 41 38 83 91 Marketing and sales 237 226 471 449 Management and exchange 121 119 238 235 Rental 125 111 248 218 Financing 37 35 73 69 General and administrative 61 54 122 117 Depreciation and amortization 38 35 76 73 Litigation charges 5 10 12 13 Restructuring 34 1 46 3 Royalty fee 28 29 56 57 Impairment — 2 — 2 Cost reimbursements 407 378 780 769 TOTAL EXPENSES 1,134 1,038 2,205 2,096 Gains (losses) and other income (expense), net 24 (7 ) 37 (7 ) Interest expense, net (42 ) (43 ) (82 ) (83 ) Transaction and integration costs — (3 ) — (18 ) Other — (1 ) — (2 ) INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 94 48 196 129 Provision for income taxes (25 ) (10 ) (70 ) (45 ) NET INCOME 69 38 126 84 Net income attributable to noncontrolling interests — (1 ) (1 ) — NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 69 $ 37 $ 125 $ 84 EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic shares 34.9 35.4 35.0 35.5 Basic $ 1.98 $ 1.04 $ 3.59 $ 2.36 Diluted shares 41.7 42.2 41.9 42.2 Diluted $ 1.77 $ 0.98 $ 3.23 $ 2.20 Expand A-3 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income attributable to common stockholders $ 69 $ 37 $ 125 $ 84 Provision for income taxes 25 10 70 45 Income before income taxes attributable to common stockholders 94 47 195 129 Certain items: Gain on disposition of hotel, land, and other — (1 ) — (1 ) Foreign currency translation (18 ) 4 (21 ) 6 Insurance proceeds (1 ) — (8 ) — Change in indemnification asset (3 ) 4 (3 ) 2 Change in estimates relating to pre-acquisition contingencies — — (2 ) — Other (2 ) — (3 ) — (Gains) losses and other (income) expense, net (24 ) 7 (37 ) 7 Transaction and integration costs — 3 — 18 Purchase accounting adjustments — — — 1 Litigation charges 5 10 12 13 Restructuring charges 34 1 46 3 Impairment charges — 2 — 2 Other 1 — — (1 ) Adjusted pretax income* 110 70 216 172 Provision for income taxes (33 ) (28 ) (74 ) (59 ) Adjusted net income attributable to common stockholders* $ 77 $ 42 $ 142 $ 113 Diluted shares 41.7 42.2 41.9 42.2 Adjusted earnings per share - Diluted* $ 1.96 $ 1.10 $ 3.62 $ 2.91 * Denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. Expand A-4 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA (In millions) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024** June 30, 2025 June 30, 2024** Net income attributable to common stockholders $ 69 $ 37 $ 125 $ 84 Interest expense, net 42 43 82 83 Provision for income taxes 25 10 70 45 Depreciation and amortization 38 35 76 73 Share-based compensation 12 9 19 16 Amortization of cloud computing software implementation costs 1 1 2 1 Certain items: Gain on disposition of hotel, land, and other — (1 ) — (1 ) Foreign currency translation (18 ) 4 (21 ) 6 Insurance proceeds (1 ) — (8 ) — Change in indemnification asset (3 ) 4 (3 ) 2 Change in estimates relating to pre-acquisition contingencies — — (2 ) — Other (2 ) — (3 ) — (Gains) losses and other (income) expense, net (24 ) 7 (37 ) 7 Transaction and integration costs — 3 — 18 Purchase accounting adjustments — — — 1 Litigation charges 5 10 12 13 Restructuring charges 34 1 46 3 Impairment charges — 2 — 2 Other 1 — — (1 ) Adjusted EBITDA* $ 203 $ 158 $ 395 $ 345 Adjusted EBITDA Margin* 24.3% 20.7% 23.7% 22.0% * Denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. ** Prior year amounts have been reclassified to conform with our current year presentation. Please see 'Non-GAAP Financial Measures' for additional information. Expand A-5 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited) VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA Three Months Ended Six Months Ended June 30, 2025 June 30, 2024** June 30, 2025 June 30, 2024** Segment financial results attributable to common stockholders $ 196 $ 144 $ 394 $ 326 Depreciation and amortization 28 25 54 50 Share-based compensation 3 2 4 4 Amortization of cloud computing software implementation costs 1 1 2 1 Certain items: Gain on disposition of hotel, land, and other — (1 ) — (1 ) Insurance proceeds — — (7 ) — Change in estimates relating to pre-acquisition contingencies — — (2 ) — Other (1 ) — (1 ) — Gains and other income, net (1 ) (1 ) (10 ) (1 ) Purchase accounting adjustments — — — 1 Litigation charges 3 10 7 13 Restructuring charges 1 — 1 — Segment Adjusted EBITDA* $ 231 $ 181 $ 452 $ 394 Segment Adjusted EBITDA Margin* 29.8% 26.0% 29.5% 27.7% Expand EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Segment financial results attributable to common stockholders $ 16 $ 15 $ 34 $ 40 Depreciation and amortization 7 7 14 14 Share-based compensation — 1 1 1 Certain items: Restructuring charges — — 2 — Impairment charges — 2 — 2 Segment Adjusted EBITDA* $ 23 $ 25 $ 51 $ 57 Segment Adjusted EBITDA Margin* 45.9% 44.5% 47.5% 48.1% * Denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. ** Prior year amounts have been reclassified to conform with our current year presentation. Please see 'Non-GAAP Financial Measures' for additional information. Expand A-6 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Consolidated contract sales $ 445 $ 449 $ 865 $ 877 Less resales contract sales (7 ) (9 ) (16 ) (21 ) Consolidated contract sales, net of resales 438 440 849 856 Plus: Settlement revenue 11 10 20 18 Resales revenue 5 6 9 11 Revenue recognition adjustments: Reportability 2 1 7 (8 ) Sales reserve (1) (58 ) (122 ) (108 ) (168 ) Other (2) (28 ) (26 ) (52 ) (48 ) Sale of vacation ownership products 370 309 725 661 Less: Cost of vacation ownership products (3) (41 ) (38 ) (83 ) (91 ) Marketing and sales (237 ) (226 ) (471 ) (449 ) Development Profit $ 92 $ 45 171 121 Development Profit Margin 24.7% 14.7% 23.5% 18.3% (1) Reflects the increase in the Company's sales reserve of $70 million recorded in the second quarter of 2024. (2) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. (3) Reflects $13 million of lower product cost associated with the additional sales reserve recorded in the second quarter of 2024. Expand A-7 MARRIOTT VACATIONS WORLDWIDE CORPORATION SUPPLEMENTAL INFORMATION (In millions and Unaudited) Three Months Ended June 30, 2025 June 30, 2024** Change DEVELOPMENT PROFIT Sale of vacation ownership products revenue $ 370 $ 309 20% Cost of vacation ownership products expense (41 ) (38 ) (10%) Marketing and sales expense (237 ) (226 ) (5%) Development Profit 92 45 101% Development Profit Margin 24.7% 14.7% 1,000 bps MANAGEMENT AND EXCHANGE PROFIT Vacation Ownership Segment 165 157 5% Exchange & Third-Party Management Segment 41 45 (11%) Corporate and Other (1) 13 13 9% Management and Exchange Revenue 219 215 2% Vacation Ownership Segment (76 ) (73 ) (4%) Exchange & Third-Party Management Segment (29 ) (31 ) 9% Corporate and Other (1) (16 ) (15 ) (6%) Management and Exchange Expense (121 ) (119 ) (1%) Management and Exchange Profit 98 96 3% Management and Exchange Profit Margin 44.9% 44.5% 40 bps RENTAL PROFIT Vacation Ownership Segment 150 143 6% Exchange & Third-Party Management Segment 10 10 (7%) Corporate and Other (1) — — NM Rental Revenue 160 153 5% Vacation Ownership Segment (129 ) (113 ) (13%) Exchange & Third-Party Management Segment — — NM Corporate and Other (1) 4 2 38% Rental Expense (125 ) (111 ) (13%) Rental Profit 35 42 (16%) Rental Profit Margin 22.3% 27.7% (540 bps) FINANCING PROFIT Financing Revenue 90 85 5% Financing Expense (37 ) (35 ) (3%) Financing Profit 53 50 7% Financing Profit Margin 58.8% 58.0% 80 bps OTHER General and administrative (61 ) (54 ) (12%) Royalty fee (28 ) (29 ) 1% Other (2) 14 8 87% ADJUSTED EBITDA* $ 203 $ 158 29% Adjusted EBITDA Margin 24.3% 20.7% 360 bps * Denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. ** Prior year amounts have been reclassified to conform with our current year presentation. Please see 'Non-GAAP Financial Measures' for additional information. (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, ' Consolidation,' and represents the portion attributable to individual or third-party vacation ownership interest owners. (2) Includes share-based compensation, amortization of cloud computing software implementation costs, net income or loss attributable to noncontrolling interests, and other. NM = Not meaningful Expand A-8 MARRIOTT VACATIONS WORLDWIDE CORPORATION SUPPLEMENTAL INFORMATION (In millions and Unaudited) Six Months Ended DEVELOPMENT PROFIT Sale of vacation ownership products revenue $ 725 $ 661 10% Cost of vacation ownership products expense (83 ) (91 ) 8% Marketing and sales expense (471 ) (449 ) (5%) Development Profit 171 121 41% Development Profit Margin 23.5% 18.3% 520 bps MANAGEMENT AND EXCHANGE PROFIT Vacation Ownership Segment 320 305 5% Exchange & Third-Party Management Segment 87 97 (10%) Corporate and Other (1) 27 24 16% Management and Exchange Revenue 434 426 2% Vacation Ownership Segment (148 ) (144 ) (3%) Exchange & Third-Party Management Segment (58 ) (62 ) 7% Corporate and Other (1) (32 ) (29 ) (9%) Management and Exchange Expense (238 ) (235 ) (1%) Management and Exchange Profit 196 191 3% Management and Exchange Profit Margin 45.3% 44.7% 60 bps RENTAL PROFIT Vacation Ownership Segment 309 290 7% Exchange & Third-Party Management Segment 20 21 (7%) Corporate and Other (1) — — NM Rental Revenue 329 311 6% Vacation Ownership Segment (255 ) (223 ) (14%) Exchange & Third-Party Management Segment — — NM Corporate and Other (1) 7 5 24% Rental Expense (248 ) (218 ) (14%) Rental Profit 81 93 (13%) Rental Profit Margin 24.7% 30.0% (530 bps) FINANCING PROFIT Financing Revenue 178 168 6% Financing Expense (73 ) (69 ) (5%) Financing Profit 105 99 6% Financing Profit Margin 59.0% 58.7% 30 bps OTHER General and administrative (122 ) (117 ) (4%) Royalty fee (56 ) (57 ) 1% Other (2) 20 15 37% ADJUSTED EBITDA* $ 395 $ 345 15% Adjusted EBITDA Margin 23.7% 22.0% 170 bps * Denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. ** Prior year amounts have been reclassified to conform with our current year presentation. Please see 'Non-GAAP Financial Measures' for additional information. (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, ' Consolidation,' and represents the portion attributable to individual or third-party vacation ownership interest owners. (2) Includes share-based compensation, amortization of cloud computing software implementation costs, net income or loss attributable to noncontrolling interests, and other. Expand A-9 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions and Unaudited) June 30, 2024 Change ANCILLARY REVENUE Vacation Ownership Segment $ 75 $ 72 5% Exchange & Third-Party Management Segment 1 1 (5%) Corporate and Other (1) — — NM Ancillary Revenue 76 73 5% MANAGEMENT FEE REVENUE Vacation Ownership Segment 55 51 7% Exchange & Third-Party Management Segment 1 2 (58%) Corporate and Other (1) — (1 ) 19% Management Fee Revenue 56 52 4% EXCHANGE AND OTHER SERVICES REVENUE Vacation Ownership Segment 35 34 3% Exchange & Third-Party Management Segment 39 42 (8%) Corporate and Other (1) 13 14 7% Exchange and Other Services Revenue 87 90 (2%) TOTAL MANAGEMENT AND EXCHANGE REVENUE $ 219 $ 215 2% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, ' Consolidation,' and represents the portion attributable to individual or third-party vacation ownership interest owners. Expand A-10 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions and Unaudited) Six Months Ended June 30, 2025 June 30, 2024 Change ANCILLARY REVENUE Vacation Ownership Segment $ 140 $ 137 3% Exchange & Third-Party Management Segment 2 2 (21%) Corporate and Other (1) — — NM Ancillary Revenue 142 139 2% MANAGEMENT FEE REVENUE Vacation Ownership Segment 110 103 7% Exchange & Third-Party Management Segment 4 7 (41%) Corporate and Other (1) (1 ) (2 ) 21% Management Fee Revenue 113 108 4% EXCHANGE AND OTHER SERVICES REVENUE Vacation Ownership Segment 70 65 6% Exchange & Third-Party Management Segment 81 88 (8%) Corporate and Other (1) 28 26 14% Exchange and Other Services Revenue 179 179 —% TOTAL MANAGEMENT AND EXCHANGE REVENUE $ 434 $ 426 2% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the Financial Accounting Standards Board Accounting Standard Codification Topic 810, ' Consolidation,' and represents the portion attributable to individual or third-party vacation ownership interest owners. Expand A-11 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited) INTERIM BALANCE SHEET ITEMS June 30, 2025 December 31, 2024 Cash and cash equivalents $ 205 $ 197 Vacation ownership notes receivable, net $ 2,485 $ 2,440 Inventory $ 744 $ 735 Property and equipment, net (1) $ 1,284 $ 1,170 Goodwill $ 3,117 $ 3,117 Intangibles, net $ 762 $ 790 Debt, net $ 3,197 $ 3,089 Stockholders' equity $ 2,484 $ 2,442 (1) Includes $323 million and $271 million at June 30, 2025 and December 31, 2024, respectively, of completed vacation ownership units which are classified as a component of Property and equipment, net until the time at which they are available and legally registered for sale as vacation ownership products. Expand A-12 MARRIOTT VACATIONS WORLDWIDE CORPORATION 2025 ADJUSTED FREE CASH FLOW OUTLOOK (In millions) Fiscal Year 2025 Guidance Previous Fiscal Year 2025 Guidance Low High Low High Adjusted EBITDA* $ 750 $ 780 $ 750 $ 780 Cash interest (150 ) (145 ) (150 ) (145 ) Cash taxes (150 ) (155 ) (150 ) (155 ) Corporate capital expenditures (65 ) (65 ) (60 ) (60 ) Inventory (75 ) (60 ) (85 ) (70 ) Financing activity and other (40 ) (25 ) (35 ) (20 ) Adjusted free cash flow* $ 270 $ 330 $ 270 $ 330 The guidance provided above excludes impacts from asset sales, foreign currency changes, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, each of which the Company cannot forecast with sufficient accuracy to factor them into the guidance provided above and without unreasonable efforts, and which may be significant. As a result, the full year 2025 adjusted free cash flow is presented only on a non-GAAP basis and is not reconciled to the most comparable GAAP measures. Where one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results. * Denotes non-GAAP financial measures. Please see 'Non-GAAP Financial Measures' for additional information about our reasons for providing these alternative financial measures and limitations on their use. Expand A-14 MARRIOTT VACATIONS WORLDWIDE CORPORATION NON-GAAP FINANCIAL MEASURES In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk ('*') on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income attributable to common stockholders, earnings per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures. Certain Items Excluded from Non-GAAP Financial Measures We evaluate non-GAAP financial measures, including those identified by an asterisk ('*') on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies. Adjusted Development Profit and Adjusted Development Profit Margin We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin. Earnings Before Interest Expense, Taxes, Depreciation and Amortization ('EBITDA') and Adjusted EBITDA EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income attributable to common stockholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense and amortization of cloud computing software implementation costs. Share-based compensation expense is excluded to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. During the first quarter of 2025, we began excluding Amortization of cloud computing software implementation costs, which are not included in depreciation and amortization expense, from Adjusted EBITDA for comparability purposes to address the considerable variability among companies in the utilization of productive assets, and have reclassified prior year amounts to conform with our current year presentation. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to stockholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization, as well as amortization of cloud computing software implementation costs because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies. Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating profitability. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company's total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment's total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations before the impact of excluded items. Adjusted Pretax Income, Adjusted Net Income Attributable to Common Stockholders, and Adjusted Earnings per Share – Diluted We evaluate Adjusted pretax income, Adjusted net income attributable to common stockholders, and Adjusted earnings per share - diluted as indicators of operating performance. Adjusted pretax income is calculated as Adjusted EBITDA less depreciation and amortization and interest expense, net of interest income. Adjusted net income attributable to common stockholders is calculated as Adjusted pretax income less provision for income tax adjusted for certain items and Adjusted earnings per share - diluted equals adjusted net income attributable to common stockholders divided by diluted shares. We evaluate these measures because we believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of certain non-recurring items such as impacts from asset sales, restructuring costs, litigation charges, strategic modernization initiative costs, transaction and integration costs, and impairments, and also facilitate the comparison of results from our on-going core operations before these items with results from other companies. Free Cash Flow and Adjusted Free Cash Flow We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction, integration and restructuring charges, litigation charges, insurance proceeds, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash and other items, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management's comparison of our results with our competitors' results. Expand
Yahoo
27-05-2025
- Business
- Yahoo
Marriott Vacations Worldwide Appoints Christian Alejandro Asmar to Board of Directors
ORLANDO, Fla., May 27, 2025--(BUSINESS WIRE)--Marriott Vacations Worldwide Corporation (NYSE: VAC) ("MVW" or the "Company") announced the appointment of Christian Alejandro Asmar to its Board of Directors effective today. Mr. Asmar is the co-founder and Managing Partner of Impactive Capital, which owns approximately 9.5% of the outstanding shares of MVW. Following Mr. Asmar's appointment, MVW's board will consist of 12 directors, 11 of whom are independent. Also, the Company plans to establish two new ad hoc board committees. One of these committees is expected to focus on advising the Board on the Company's modernization efforts aimed at revenue growth and cost efficiencies, of which Mr. Asmar will be a member, and a second committee is expected to advise the Board on the Company's technology innovation strategy. "Impactive Capital has been a significant stockholder of the Company for over a year, and we have appreciated their ongoing engagement with management and the Board," said William J. Shaw, Chairman of the Board, Marriott Vacations Worldwide. "Christian brings a depth of expertise and stockholder perspective, and we look forward to working with him to create value for all our stockholders." Mr. Asmar said, "I am excited to join the board of MVW at this important time for the Company. Impactive has a strong track record of working constructively with the businesses we invest in, and I look forward to partnering with my fellow directors to support the Board and management in their efforts to drive operational efficiency, enhance free cash flow per share, and deliver sustainable, long-term returns for shareholders." Impactive Capital LLC is an active investment management firm based in New York that serves some of the largest pension, endowment and foundations globally. Prior to founding Impactive, Mr. Asmar was a Managing Director and Investing Partner at Blue Harbour Group, a leading activist investment firm. Prior to joining Blue Harbour, Mr. Asmar was a founding team member of Morgan Stanley Infrastructure Partners (MSIP), where he worked in infrastructure investments in the energy, transportation and social infrastructure sectors and served on the board of multi-billion-dollar private infrastructure assets. In addition, he had previous experience in the Investment Banking division at Morgan Stanley where he structured and executed project level financing in emerging markets and Latin America. Mr. Asmar served on the Board of Avid Technology, Inc. [Nasdaq: AVID] from November 2019 to November 2023. In connection with the appointment of Mr. Asmar to the Board, the Company and Impactive Capital have entered into a support agreement which contains customary standstill provisions. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit View source version on Contacts Neal GoldnerInvestor Cameron KlausGlobal
Business Wire
19-05-2025
- Business
- Business Wire
Marriott Vacations Worldwide to Participate at the Morgan Stanley Travel & Leisure Conference
ORLANDO, Fla.--(BUSINESS WIRE)--Marriott Vacations Worldwide (NYSE: VAC) announced today that John Geller, President and Chief Executive Officer, and Jason Marino, Executive Vice President and Chief Financial Officer, will participate in a fireside chat at the Morgan Stanley 3rd Annual Travel & Leisure Conference on June 3, 2025, from 12:45 – 1:20 p.m. E.T. A live webcast of the event will be available in the Investor Relations section of the Company's website at An audio replay of the conference call will be available for 30 days on the Company's website. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has approximately 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit
Miami Herald
13-05-2025
- Business
- Miami Herald
Marriott worker scheduled to work Sabbath in violation of her religion, suit says
A Marriott employee's new boss told her she had to work the Sabbath, in violation of her religion, after she had received an exemption for two years, according to a federal lawsuit filed in Florida. The Equal Employment Opportunity Commission said it failed to reach an early settlement with the Marriott Vacations Worldwide Corporation and Marriott Ownership Resorts, so it filed a religious discrimination lawsuit in the Middle District of Florida on May 5. McClatchy News reached out to Marriott for comment on the lawsuit May 13 but did not immediately receive a response. The former employee, a Seventh-Day Adventist, said she told her employer that she couldn't accept the job if she had to work Saturdays because that was the day of worship and rest in her religious practice, according to the lawsuit. 'Because her religion is central to her life, (the woman) discloses her religion to potential employers and informs potential employers that she cannot work Saturdays during interviews,' the commission's attorneys wrote in the filing. Her boss at the time granted that request, and she was hired in May 2021 selling timeshares at one of the hotel chain's properties in Orlando, the filing says. The woman said she did well at the company, and in 2022 transferred to a position that involved higher commission with the same managers, but then two new managers began to oversee her role, according to the complaint. Her new managers asked her former boss about her exemption from working Saturdays, then they informed her she was going to be placed on 'overage,' which was typically seen as a punishment in the division, and scheduled her to work Saturdays for May 2023, the lawsuit says. The employee told the manager that working the Sabbath violates her religion, but he told her she had to come in anyway, so she reported to human resources that she was being discriminated against for her religion, according to the filing. She didn't come in for her Saturday shifts in May, then she had a call with HR toward the end of the month, in which the HR representative told her she had to work Saturdays if she was scheduled, the lawsuit says. She went to her regional director, who told her the same, and she continued to be scheduled to work Saturdays, the complaint says. She resigned June 1, 2023, according to the lawsuit. Federal officials say Marriott Vacations Worldwide Corporation and Marriott Ownership Resorts failed to provide reasonable religious accommodation, retaliated against their employee and constructively discharged her by creating a condition in which she had no choice but to leave. The Equal Employment Opportunity Commission is seeking back pay and punitive damages on the former employee's behalf.
Yahoo
12-05-2025
- Business
- Yahoo
Marriott Vacations Worldwide Corporation Announces Quarterly Cash Dividend
ORLANDO, Fla., May 12, 2025--(BUSINESS WIRE)--Marriott Vacations Worldwide Corporation (NYSE: VAC) today announced its Board of Directors authorized a quarterly cash dividend of $0.79 per share of common stock. The dividend is payable on or around June 6, 2025, to stockholders of record as of the close of business on May 23, 2025. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has approximately 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit View source version on Contacts Neal GoldnerInvestor Cameron KlausGlobal Sign in to access your portfolio
