VAC Q1 2023 Earnings

Call Details

• Call Title: Marriott Vacations Q1 2023 Earnings Call
• Date: May 4, 2023 at 12:30 PM UTC
• Management Team:
  • John Geller (Chief Executive Officer)
  • Tony Terry (Chief Financial Officer)

Call Summary

Financial Performance

• The company ran nearly 90% occupancy in the vacation ownership segment for Q1 2023.
• Contract sales in the vacation ownership segment grew by 10% year over year in Q1 2023.
• The company reported that VPG was held 30% above pre-pandemic levels for the quarter.
• First-time buyers represented more than 30% of contract sales in the quarter, which was up roughly 200 basis points versus the prior year.
• Adjusted EBITDA grew by 8% year over year in Q1 2023.
• The company returned $134 million to shareholders during the quarter.

Guidance

• The company stated that the full-year VPG outlook has not changed and that full-year VPG may be down a couple of points year over year.
• The company expects Q2 VPG to be flattish to Q1 due to seasonality and a tough prior-year comp for the quarter.
• Executives characterized 2024 as likely to be smoother from a rental and booking comp perspective compared to 2023.
• The company described the rentals weakness in 1Q and expected 2Q rentals to be down due to a prior-year COVID point-driven comp.
• Executives emphasized that forward booking metrics and pipelines are currently looking good across domestic and international travel demand indicators.
• Management flagged that strong tour growth in the quarter may not be repeatable every quarter and that tour growth will be a driver to meet sales targets.