Q1 2024 Marriott Vacations Worldwide Corp Earnings Call Transcript
Key Points
- System-wide occupancy reached 90% in Q1, demonstrating strong demand for Marriott Vacations Worldwide Corp's properties.
- Contract sales grew by 3% year-over-year, excluding Maui, with first-time buyer tours increasing by 9%.
- International contract sales saw a significant increase of over 25% year-over-year, driven by robust growth in the Asia Pacific region.
- The new Marriott Vacation Club Resort in Waikiki has received strong reservations, indicating positive consumer response and potential future revenue growth.
- Marriott Vacations Worldwide Corp successfully completed its first securitization of the year, raising $430 million at a favorable blended interest rate of 5.5%.
- Contract sales overall declined by 1% due to challenges in Maui and a tough VPG comparison from the previous year.
- Development margin declined year-over-year due to lower VPGs, higher marketing and sales costs, and a higher sales reserve.
- Delinquencies and defaults continue to run higher than historical averages, indicating potential risks in loan performance.
- Adjusted EBITDA in the Vacation Ownership segment declined by 7% year-over-year, primarily driven by lower development profit.
- Total company adjusted EBITDA declined by 8%, with challenges in the exchange and third-party management business contributing to the decrease.
Greetings, and welcome to the Marriott Vacations Worldwide First Quarter 2024 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Neal Goldner, Vice President, Investor Relations for Marriott Vacations Worldwide. Thank you. You may begin.
Thank you, Melissa, and welcome to the Marriott Vacations Worldwide First Quarter Earnings Conference Call. I'm joined today by John Geller, our President and Chief Executive Officer; and Jason Marino, our Executive Vice President and Chief Financial Officer.
I need to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties, which could cause future results to differ materially from those expressed in or implied by our comments. Forward-looking statements in the press release that we issued last
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