VAC Q1 2022 Earnings

Call Details

• Call Title: Marriott Vacations Q1 2022 Earnings Call
• Date: May 6, 2022 at 12:30 PM UTC
• Management Team:
  • Stephen Weisz (Chief Executive Officer)
  • John Geller (President)
  • Tony Terry (Chief Financial Officer)

Call Summary

Financial Performance

• Total company adjusted EBITDA for Q1 2022 was $188M for the quarter.
• Contract sales for the quarter were $394M, representing a 75% year-over-year increase.
• Total company adjusted EBITDA was 13% higher than Q1 2019 with margin nearly 25%, an improvement of over 300 basis points versus Q1 2019.
• Vacation ownership segment delivered $199M of adjusted EBITDA with an adjusted EBITDA margin of approximately 32%, nearly 360 basis points higher than Q1 2019.
• Development profit for the quarter was $68M, and after adjusting for approximately $24M of negative reportability, adjusted development profit margin expanded to 28.3%, up 780 basis points versus Q1 2021.
• Resort management revenue increased 34% year-over-year and resort management profit increased 22% to $72M.
• Financing profit increased 31% in total year-over-year and grew 7% organically excluding WELK contributions.

Segment Trends

• Total vacation ownership occupancy levels were 88% for the quarter, in line with pre-COVID-19 results.
• VPGs/BPGs showed pricing strength with BPGs reported as over $4,700 and VPGs specifically at $4,706, up 9% sequentially.
• First-time buyers represented 29% of contract sales, a 300 basis point improvement year-over-year.
• Tours increased 71% year-over-year, and the package pipeline stood at nearly 200,000 tours with 40% of those packages already activated for future arrivals.
• Total rental profit remained in line with Q4 2021 while domestic rental occupancies averaged 90% for the quarter.
• Interval active members increased 9% year-over-year while average revenue per member declined 6% year-over-year.