On 06 Dec 18, Marriott Vacations Worldwide Corporation’s (NYSE: VAC) oscillated between $73.70 and $76.14 before concluding trading period lower/higher -3.16% at $75.38. The stock recorded total trading quantity of 771,895 shares as compared to its average volume of 692,771 shares. The firm has a total market worth of $3.546B and $47.34 million shares remain outstanding.
Marriott Vacations Worldwide Corporation (VAC) recently stated third quarter financial results and provided updated guidance for the full year 2018.
Third Quarter 2018 Highlights:
- Total revenues were $750M, an raise of $220M, or 42 percent.
- Net loss attributable to ordinary shareholders was $58M, or $1.75fully diluted loss per share, contrast to net income attributable to ordinary shareholders of $40M, or $1.45 fully diluted earnings per share (“EPS”), in the third quarter of 2017.
- Adjusted net income attributable to ordinary shareholders was $48Mcontrast to adjusted net income attributable to ordinary shareholders of $38M in the third quarter of 2017. Adjusted fully diluted EPS was $1.42, contrast to adjusted fully diluted EPS of $1.39 in the third quarter of 2017.
- Adjusted EBITDA totaled $100M, an raise of $26M, or 36 percent.
- Consolidated vacation ownership contract sales were $279M, an raise of $75M, or 36 percent.
- Total Interval Network active members at the end of the third quarter of 2018 were 1.8M, consistent with the previous year quarter.
- Subsequent to the end of the third quarter and through November 6, 2018, the company repurchased 188 thousand shares of its ordinary stock for $17.5M.
- Subsequent to the end of the third quarter, the company stepped down $122Mof its Senior Unsecured Notes assumed as part of the acquisition of ILG, using cash on hand.
“We are thrilled to have completed the acquisition of ILG on September 1st, and offer a warm welcome to all of ILG’s over 11,000 associates about the world. Considering all of the activity we have had surrounding the closing, I couldn’t be happier with our financial results in the third quarter, which included results from ILG for the month of September. Our Legacy-MVW performance remained very strong, with contract sales growth of 18 percent and adjusted EBITDA growth of $8M,” stated Stephen P. Weisz, president and chief executive officer. “Having spent more time on the integration after the closing, we believe that this transaction could produce over $100M in cost synergies. And, as one company, we are continuing the hard work of integrating ILG into our business and realizing these synergies as quickly as possible. I am truly excited about the growth opportunities this transformational acquisition will provide well into the future.”
Third Quarter 2018 Section Results
Vacation Ownership section financial results were $96M, an raise of $5M, or 5 percent. Vacation Ownership section adjusted EBITDA was $123M, an raise of $28M, or 29 percent.
Consolidated vacation ownership contract sales were $279M, an raise of $75M, or 36 percent. Legacy-MVW contract sales were $242M, an raise of $38M, or 18 percent. Legacy-MVW North America contract sales were $215M, an raise of $30M, or 16 percent. Legacy-MVW North America VPG was $3,781, an raise of nearly 9 percent.
Development margin was $57M contrast to $43M in the third quarter of 2017 and development margin percentage was 22.5 percent contrast to 23.8 percent in the previous year quarter. Adjusted development margin percentage, which excludes the impact of revenue re-portability and other charges, was 23.0 percent in the third quarter of 2018 contrast to 24.5 percent in the third quarter of 2017. Legacy-MVW development margin and development margin percentage was $51M and 23.7 percent, respectively. Legacy-MVW adjusted development margin percentage was 23.9 percent in the third quarter of 2018 as contrast to 24.5 percent in the previous year quarter.
Rental revenues totaled $86M, a $20M, or 30 percent, raise from the third quarter of 2017. Rental revenues net of expenses were $12M, a $3M, or 34 percent, raise from the third quarter of 2017. Legacy-MVW rental revenues totaled $71M, a $5M, or 8 percent, raise from the third quarter of 2017. Legacy-MVW rental revenues net of expenses were $12M, a $3M, or 31 percent, raise from the third quarter of 2017.
Balance Sheet and Liquidity
On September 30, 2018, cash and cash equivalents totaled $441M. Since the starting of the year, real estate inventory balances raised $423M to $816M, including $488M related to the ILG acquisition. The inventory balance at the end of the third quarter included $761M of finished goods and $55M of work-in-progress. Legacy-MVW inventory balances have reduced $65M since the starting of 2018. The company had $3.9B in debt outstanding, net of unamortized debt issuance costs, at the end of the third quarter, an raise of $2.8B from year-end 2017. This debt included $2.2B of corporate debt and $1.7B of debt related to its securitized notes receivable. As of September 30, 2018, the company’s pro forma debt to adjusted EBITDA ratio was 2.6x, as described further on page A-13 of the Financial Schedules that follow.
As of September 30, 2018, the company had about $594M in accessible capacity under its revolving credit facility after taking into account outstanding letters of credit, and about $61M of gross vacation ownership notes receivable eligible for securitization under the company’s warehouse facility.
The P/E ratio was recorded at 49.92.The volatility in the previous week has experienced by 4.46% and observed of 4.40% in the previous month.80.20% ownership is held by institutional investors while insiders hold ownership of 0.80%.