Hilton Grand Vacations Reports Q1 2024 Results

TL;DR

<b>Hilton Grand Vacations reported a slight increase in revenue and net income for Q1 2024, with EPS holding steady.</b>

AI Summary

Hilton Grand Vacations Inc. (HGV) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Revenue increased by 1.7% to $773 million in Q1 2024. Net income for Q1 2024 was $115 million, a 1.8% increase from Q1 2023. Diluted EPS rose to $0.70 in Q1 2024, up from $0.69 in Q1 2023. Total assets stood at $7.7 billion as of March 31, 2024. Total debt was $2.1 billion as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking Hilton Grand Vacations Inc., this filing contains several important signals. The company's Q1 2024 revenue reached $773 million, a modest 1.7% year-over-year increase, indicating stable top-line performance. Net income grew by 1.8% to $115 million, and diluted EPS remained flat at $0.70, suggesting controlled profitability.

Risk Assessment

Risk Level: medium — Hilton Grand Vacations Inc. shows moderate risk based on this filing. The company's debt-to-equity ratio of 0.36 as of March 31, 2024, while not excessively high, indicates a significant reliance on debt financing which could pose risks in a rising interest rate environment.

Analyst Insight

Monitor the company's debt management strategies and interest expense in upcoming filings.

Financial Highlights

debt To Equity

0.36

revenue

773,000,000

total Assets

7,700,000,000

total Debt

2,100,000,000

net Income

115,000,000

eps

0.70

revenue Growth

1.7%

Revenue Breakdown

Key Numbers

• 773,000,000 — Revenue (Q1 2024)
• 115,000,000 — Net Income (Q1 2024)
• 0.70 — Diluted EPS (Q1 2024)
• 7,700,000,000 — Total Assets (As of March 31, 2024)
• 2,100,000,000 — Total Debt (As of March 31, 2024)
• 0.36 — Debt/Equity Ratio (As of March 31, 2024)

Key Players & Entities

• Hilton Grand Vacations Inc. (company) — Filer
• 2024-03-31 (date) — Reporting period end date
• 2023-03-31 (date) — Prior year reporting period end date
• $773 million (dollar_amount) — Q1 2024 revenue
• 1.7% (percentage) — Revenue growth
• $115 million (dollar_amount) — Q1 2024 net income
• $0.70 (dollar_amount) — Q1 2024 diluted EPS
• $7.7 billion (dollar_amount) — Total assets

FAQ

Industry Context

Hilton Grand Vacations operates in the hospitality and real estate sectors, specifically focusing on the vacation ownership (timeshare) industry.

Regulatory Implications

The company is subject to various consumer protection laws and real estate regulations in the jurisdictions where it operates.

What Investors Should Do

1. Analyze the growth drivers for the 'SalesOfVacationOwnershipIntervalsNet' segment.
2. Evaluate the company's debt repayment schedule and refinancing options.
3. Compare HGV's Q1 2024 performance against key competitors in the timeshare industry.

Key Dates

• 2024-03-31: Quarterly Report End Date — Q1 2024 financial data
• 2024-05-09: Filing Date — 10-Q filing date

Year-Over-Year Comparison

Revenue increased by 1.7% and net income by 1.8% compared to Q1 2023, while diluted EPS remained flat.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share HGV New York Stock

Filing Documents

• hgv-20240331.htm (10-Q) — 2162KB
• hgv-20240331xex103xomnibus.htm (EX-10.3) — 1542KB
• hgv-20240331xex104xhiltong.htm (EX-10.4) — 198KB
• hgv-20240331xex105xformofs.htm (EX-10.5) — 150KB
• hgv-20240331xex106xformofs.htm (EX-10.6) — 146KB
• hgv-20240331xex107xformofs.htm (EX-10.7) — 192KB
• hgv-20240331xex108xformofs.htm (EX-10.8) — 192KB
• hgv-20240331xex311.htm (EX-31.1) — 10KB
• hgv-20240331xex312.htm (EX-31.2) — 10KB
• hgv-20240331xex321.htm (EX-32.1) — 6KB
• hgv-20240331xex322.htm (EX-32.2) — 6KB
• 0001628280-24-022140.txt (&nbsp;) — 15235KB
• hgv-20240331.xsd (EX-101.SCH) — 87KB
• hgv-20240331_cal.xml (EX-101.CAL) — 107KB
• hgv-20240331_def.xml (EX-101.DEF) — 524KB
• hgv-20240331_lab.xml (EX-101.LAB) — 885KB
• hgv-20240331_pre.xml (EX-101.PRE) — 721KB
• hgv-20240331_htm.xml (XML) — 2266KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 51

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 52 Item 1A.

Risk Factors

Risk Factors 52 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54

Signatures

Signatures 56 Table of Contents .

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HILTON GRAND VACATIONS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) March 31, 2024 December 31, 2023 (unaudited) ASSETS Cash and cash equivalents $ 355 $ 589 Restricted cash 323 296 Accounts receivable, net 515 507 Timeshare financing receivables, net 3,030 2,113 Inventory 1,805 1,400 Property and equipment, net 953 758 Operating lease right-of-use assets, net 85 61 Investments in unconsolidated affiliates 78 71 Goodwill 1,943 1,418 Intangible assets, net 1,927 1,158 Other assets 650 314 TOTAL ASSETS (variable interest entities - $ 1,568 and $ 1,459 ) $ 11,664 $ 8,685 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ 1,176 $ 952 Advanced deposits 181 179 Debt, net 5,144 3,049 Non-recourse debt, net 1,534 1,466 Operating lease liabilities 103 78 Deferred revenue 382 215 Deferred income tax liabilities 980 631 Total liabilities (variable interest entities - $ 1,521 and $ 1,472 ) 9,500 6,570 Commitments and contingencies - see Note 18 Equity: Preferred stock, $ 0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of March 31, 2024 and December 31, 2023 — — Common stock, $ 0.01 par value; 3,000,000,000 authorized shares, 104,760,243 shares issued and outstanding as of March 31, 2024 and 105,961,160 shares issued and outstanding as of December 31, 2023 1 1 Additional paid-in capital 1,467 1,504 Accumulated retained earnings 521 593 Accumulated other comprehensive income 15 17 Total stockholders equity 2,004 2,115 Noncontrolling interest 160 — Total equity 2,164 2,115 TOTAL LIABILITIES AND EQUITY $ 11,664 $ 8,685 See notes to unaudited condensed consolidated financial statements. 1 Table of Contents . HILTON GRAND VACATIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share data) Three Months Ended March 31, 2024 2023 Revenues Sales of VOIs,

View Full Filing

View this 10-Q filing on SEC EDGAR