Q3 2024 Hilton Grand Vacations Inc Earnings Call Transcript
Key Points
- Hilton Grand Vacations Inc (HGV) reported contract sales of $777 million and adjusted EBITDA of $276 million, with margins of 22%, aligning with expectations.
- The company is ahead of schedule on cost synergies from the Bluegreen acquisition, with a run rate of $72 million annualized towards a target of $100 million.
- Occupancy rates improved by 2 points to 83%, with strong rental demand and a growing marketing package pipeline.
- The introduction of HGV Max to Bluegreen members is expected to attract new buyers and motivate existing owners to upgrade their membership.
- Hilton Grand Vacations Inc (HGV) is on track to produce a record amount of cash flow and return a record amount of cash to shareholders through repurchases.
- The company experienced tour volume impacts due to hurricanes, with expectations of further impact in the fourth quarter.
- There are ongoing challenges in reaching optimum staffing levels in sales and marketing teams.
- The macroeconomic environment presents headwinds for some consumers, affecting tour flow and sales.
- The launch of HGV Max for Bluegreen was delayed, impacting expected performance.
- Orlando market showed softening in arrivals and rental rates, impacting overall performance.
Good morning, and welcome to the Hilton Grand Vacations third quarter 2024 earnings conference call. (Operator Instructions) I would now like to turn the call over to Mark Melnyk, Senior Vice President of Investor Relations. Please go ahead, sir.
Thank you, operator, and welcome to the Hilton Grand Vacations third quarter 2024 earnings call. As a reminder, our discussions this morning will include forward-looking statements.
Actual results could differ materially from those indicated by these forward-looking statements, and these statements are effective only as of today. We undertake no obligation to publicly update or revise these statements. For a discussion of some of the factors that could cause actual results to differ, please see the Risk Factors section of our SEC filings.
We'll also be referring to certain non-GAAP financial measures. You can find definitions of components of such non-GAAP measures as well as reconciliations of non-GAAP and GAAP
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