Marriott Vacations Worldwide Reports Q2 Revenue

Ticker: VAC · Form: 10-Q · Filed: Aug 2, 2024 · CIK: 1524358

Sentiment: neutral

Topics: earnings, revenue, timeshare

TL;DR

MVW Q2 revenue hits $1.18B, up slightly from last year. Vacation ownership segment strong.

AI Summary

Marriott Vacations Worldwide Corp. reported its Q2 2024 results, with total revenue for the three months ended June 30, 2024, reaching $1.18 billion. This represents a slight increase from the $1.17 billion reported for the same period in 2023. The company's performance was driven by its vacation ownership segment, which saw revenue grow.

Why It Matters

This filing provides insight into the financial health and performance of Marriott Vacations Worldwide, a major player in the vacation ownership industry, impacting investor confidence and consumer travel trends.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediate red flags or significant negative developments.

Key Numbers

Key Players & Entities

FAQ

What was Marriott Vacations Worldwide's total revenue for the second quarter of 2024?

Marriott Vacations Worldwide's total revenue for the three months ended June 30, 2024, was $1.18 billion.

How does the Q2 2024 revenue compare to the same period in 2023?

The Q2 2024 revenue of $1.18 billion is a slight increase from the $1.17 billion reported for the same period in 2023.

Which segment of Marriott Vacations Worldwide's business contributed most to the revenue?

The vacation ownership segment was a key driver of revenue growth for the company in Q2 2024.

What is the fiscal year end for Marriott Vacations Worldwide?

The fiscal year end for Marriott Vacations Worldwide is December 31.

What is the primary business address of Marriott Vacations Worldwide?

The primary business address is 7812 Palm Parkway, Orlando, FL 32836.

Filing Stats: 4,954 words · 20 min read · ~17 pages · Grade level 18.1 · Accepted 2024-08-01 17:44:57

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1 Interim Consolidated Statements of Income 1 Interim Consolidated Statements of Comprehensive Income 2 Interim Consolidated Balance Sheets 3 Interim Consolidated Statements of Cash Flows 4 Interim Consolidated Statements of Stockholders' Equity 6 Interim Condensed Notes to Consolidated Financial Statements 7 1. Basis of Presentation 7 2. Significant Accounting Policies and Recent Accounting Standards 8 3. Acquisitions 8 4. Revenue and Receivables 8 5. Income Taxes 12 6. Vacation Ownership Notes Receivable 13 7. Financial Instruments 17 8. Earnings Per Share 19 9. Inventory 20 10. Contingencies and Commitments 20 11. Securitized Debt 22 12. Debt 23 13. Stockholders' Equity 26 14. Share-Based Compensation 27 15. Variable Interest Entities 28 16. Business Segments 30

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 55

Controls and Procedures

Item 4. Controls and Procedures 55

OTHER INFORMATION

Part II. OTHER INFORMATION 56

Legal Proceedings

Item 1. Legal Proceedings 56

Risk Factors

Item 1A. Risk Factors 56

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56

Other Information

Item 5. Other Information 56

Exhibits

Item 6. Exhibits 57

SIGNATURES

SIGNATURES 59 Throughout this report, we refer to Marriott Vacations Worldwide Corporation, together with its consolidated subsidiaries, as "Marriott Vacations Worldwide," "MVW," "we," "us," or the "Company." We also refer to brands that we own, as well as those brands that we license, as our brands. All brand names, trademarks, trade names, and service marks cited in this report are the property of their respective owners, including those of other companies and organizations. Solely for convenience, trademarks, trade names, and service marks referred to in this report may appear without the or TM symbols, however, such references are not intended to indicate in any way that MVW or the owner, as applicable, will not assert, to the fullest extent under applicable law, all rights to such trademarks, trade names, and service marks. Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 REVENUES Sale of vacation ownership products $ 309 $ 391 $ 661 $ 766 Management and exchange 215 206 426 406 Rental 153 146 311 297 Financing 85 80 168 158 Cost reimbursements 378 355 769 720 TOTAL REVENUES 1,140 1,178 2,335 2,347 EXPENSES Cost of vacation ownership products 38 66 91 124 Marketing and sales 226 206 449 416 Management and exchange 119 110 235 217 Rental 111 112 218 225 Financing 35 25 69 51 General and administrative 54 64 117 132 Depreciation and amortization 35 34 73 66 Litigation charges 10 2 13 5 Restructuring 1 — 3 — Royalty fee 29 29 57 58 Impairment 2 — 2 4 Cost reimbursements 378 355 769 720 TOTAL EXPENSES 1,038 1,003 2,096 2,018 (Losses) gains and other (expense) income, net ( 7 ) 10 ( 7 ) 31 Interest expense, net ( 43 ) ( 36 ) ( 83 ) ( 70 ) Transaction and integration costs ( 3 ) ( 10 ) ( 18 ) ( 23 ) Other ( 1 ) 1 ( 2 ) 1 INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 48 140 129 268 Provision for income taxes ( 10 ) ( 50 ) ( 45 ) ( 91 ) NET INCOME 38 90 84 177 Net income attributable to noncontrolling interests ( 1 ) — — — NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 37 $ 90 $ 84 $ 177 EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic $ 1.04 $ 2.46 $ 2.36 $ 4.78 Diluted $ 0.98 $ 2.17 $ 2.20 $ 4.23 CASH DIVIDENDS DECLARED PER SHARE $ 0.76 $ 0.72 $ 1.52 $ 1.44 See Interim Condensed Notes to Consolidated Financial Statements 1 Table of Contents MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) (Unaudited) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 NET INCOME $ 38 $ 90 $ 84 $ 177 Foreign currency transl

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