On November 6, 2023, Hilton Grand Vacations Inc (HGV, Financial) released its third quarter 2023 earnings report. The company faced several challenges this quarter, including wildfires in Maui and a softer consumer macroeconomic environment. Despite these challenges, HGV remains confident in its long-term strategy of driving tour flow and net owner growth.
Financial Highlights
For Q3 2023, HGV reported a diluted EPS of $0.83, down from $1.24 in Q3 2022. Net income and Adjusted EBITDA were $92 million and $269 million, respectively, compared to $150 million and $338 million in Q3 2022. Total revenues for Q3 2023 were $1,018 million, a decrease from $1,116 million in Q3 2022.
Segment Performance
The Real Estate Sales and Financing segment reported revenues of $612 million, a decrease of $133 million compared to Q3 2022. The Resort Operations and Club Management segment reported revenue of $322 million, an increase of $23 million compared to Q3 2022.
Balance Sheet and Liquidity
As of September 30, 2023, HGV had $227 million in total cash and cash equivalents, and $308 million in total restricted cash. The company had $2,730 million of corporate debt, net outstanding with a weighted average interest rate of 6.67%, and $1,038 million of non-recourse debt, net outstanding with a weighted average interest rate of 4.30%. HGV's liquidity position consisted of $227 million of unrestricted cash and $866 million remaining borrowing capacity under the revolver facility.
Outlook
Despite the challenges faced in Q3 2023, HGV remains confident in its long-term strategy. The company's total contract sales pipeline is valued at $11.6 billion at current pricing. The pipeline includes $6.4 billion of sales relating to inventory that is currently available for sale at open or soon-to-open projects. The remaining $5.2 billion of sales is related to inventory at new or existing projects that will become available for sale in the future.
For more detailed information, please refer to the full earnings report on the HGV Investor Relations website.
Explore the complete 8-K earnings release (here) from Hilton Grand Vacations Inc for further details.
