– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
ORLANDO, Fla.--(BUSINESS WIRE)--Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” or “the Company”) today reports its first quarter 2022 results.
First Quarter 2022 Results1
Full Year 2022 Outlook
“A strong pickup in momentum through the quarter propelled us to another set of record results,” said Mark Wang, president and CEO of Hilton Grand Vacations. “We delivered EBITDA, margins, and cash flow well ahead of our 2019 pro-forma combined levels, and our diligent integration efforts enabled us to identify additional cost synergies from the Diamond acquisition. Taken together, these gave us the confidence to increase our 2022 guidance range. In addition, we unveiled our first set of rebranded Diamond properties under the Hilton Vacation Club collection, and launched HGV Max our new experiential membership program. These represent critical milestones in our integration and increase the overall value proposition of our offering through broader access and exciting new benefits."
1 The Company’s current period results and prior year results include impacts related to deferrals of revenues and direct expenses related to the Sales of VOIs under construction that are recognized when construction is complete. These impacts are reflected in the sub-bullets. |
Diamond Acquisition
On Aug. 2, 2021, HGV completed the acquisition of Dakota Holdings, Inc., the parent of Diamond Resorts International (the “Diamond Acquisition”). HGV completed the acquisition by exchanging 100% of the outstanding equity interests of Diamond for shares of HGV common stock. Pre-existing HGV shareholders owned approximately 72% of the combined company immediately after giving effect of the Diamond Acquisition, with certain funds controlled by Apollo Global Management Inc. (the "Apollo Funds" or, "Apollo") and other minority shareholders, who previously owned 100% of Diamond, holding the remaining, approximately 28% at the time the Diamond Acquisition was completed.
Diamond also operates in the hospitality and VOI industry, with a worldwide resort network of global vacation destinations. Diamond’s portfolio consists of resort properties that the Company manages, which are included in one of Diamond's single- and multi-use trusts (collectively, the "Diamond Collections" or "Collections"), or are Diamond-branded resorts in which the Company owns inventory. It also includes affiliated resorts and hotels, which the Company does not manage, and which do not carry the Diamond brand but are a part of Diamond's network and, through THE Club® and other Club offerings (the “Diamond Clubs”), are available for its members to use as vacation destinations.
Diamond’s operations primarily consist of: VOI sales and financing which includes marketing and sales of VOIs and consumer financing for purchasers of the Company's VOIs; operations related to the management of the homeowners associations (the “HOAs”) for resort properties and the Diamond Collections, operating and managing points-based vacation clubs, and operation of certain resort amenities and management services.
The financial results in this report include Diamond’s results of operations beginning on Aug. 2, 2021 (the "Acquisition Date"). The Company refers to Diamond's business and operations that were acquired as “Legacy-Diamond” or “Diamond,” and HGV's operations as “Legacy-HGV,” which is inclusive of operations that existed both prior to and following the Diamond Acquisition.
For the quarter ended March 31, 2022, diluted EPS was $0.42 compared to ($0.08) for the quarter ended March 31, 2021. Net income and Adjusted EBITDA were $51 million and $202 million, respectively, for the quarter ended March 31, 2022, compared to net loss and Adjusted EBITDA of ($7) million and $42 million, respectively, for the quarter ended March 31, 2021. Total revenues for the quarter ended March 31, 2022, were $779 million compared to $235 million for the quarter ended March 31, 2021.
Net income and Adjusted EBITDA for the quarter ended March 31, 2022, included a net deferral of $22 million relating to sales of intervals at Maui Bay Villas Phase IB and The Beach Resort Sesoko Phase II, which were under construction during the period. The Company anticipates recognizing these revenues and related expenses in 2022 when it expects to complete these projects and recognize the net deferral impacts.
Consolidated Segment Highlights – First Quarter 2022
Real Estate Sales and Financing
For the quarter ended March 31, 2022, Real Estate Sales and Financing segment revenues were $452 million, an increase of $329 million compared to the quarter ended March 31, 2021. Real Estate Sales and Financing segment Adjusted EBITDA and Adjusted EBITDA profit margin were $153 million and 33.8%, respectively, for the quarter ended March 31, 2022, compared to $27 million and 22.0%, respectively, for the quarter ended March 31, 2021. Results in the first quarter of 2022 improved due to an increase in tour flow related to an improvement in travel demand versus the prior year, as well as an increase in volume per guest.
Real Estate Sales and Financing segment adjusted EBITDA reflects a reduction of $22 million due to the deferral of sales and related expenses of VOIs under construction in the first quarter of 2022. These deferrals were related sales of intervals at Maui Bay Villas Phase IB and The Beach Resort Sesoko Phase II projects for the quarter ended March 31, 2022, and compare to $18 million net deferrals related to Ocean Tower Phase II, Maui Bay Villas Phase I and The Beach Resort Sesoko Phase I projects for the quarter ended March 31, 2021.
Contract sales for the quarter ended March 31, 2022, increased $370 million to $509 million compared to the quarter ended March 31, 2021. For the quarter ended March 31, 2022, tours increased by 253% and VPG increased by 4% compared to the quarter ended March 31, 2021. For the quarter ended March 31, 2022, fee-for-service contract sales represented 25% of contract sales compared to 40% for the quarter ended March 31, 2021.
Financing revenues for the quarter ended March 31, 2022, increased by $27 million compared to the quarter ended March 31, 2021. This was driven primarily by a $24 million increase related to interest income on the timeshare financing receivables. The Company experienced an increase in the timeshare financing receivables balance along with an increase in the weighted average interest rate for the originated portfolio of 100 basis points as of March 31, 2022 compared to March 31, 2021.
Resort Operations and Club Management
For the quarter ended March 31, 2022, Resort Operations and Club Management segment revenue was $268 million, an increase of $188 million compared to the quarter ended March 31, 2021. Resort Operations and Club Management segment Adjusted EBITDA and Adjusted EBITDA profit margin were $101 million and 37.7%, respectively, for the quarter ended March 31, 2022, compared to $42 million and 52.5%, respectively, for the quarter ended March 31, 2021. Compared to the prior-year period, results in the first quarter of 2022 increased due to the addition of Diamond's resort network and member base, along with an increase in the number of transactions compared to the same period in 2021, which more than offset the increases in segment operating expenses.
The estimated value of the Company’s total contract sales pipeline is approximately $13 billion at current pricing.
The total pipeline includes approximately $7 billion of sales relating to inventory that is currently available for sale at open or soon-to-open projects. The remaining approximately $6 billion of sales is inventory at new or existing projects that will become available for sale in the future upon registration, delivery or construction.
Owned inventory represents 83% of the Company’s total pipeline. Approximately 53% of the owned inventory pipeline is currently available for sale.
Fee-for-service inventory represents 17% of the Company’s total pipeline. Approximately 46% of the fee-for-service inventory pipeline is currently available for sale.
With 23% of the pipeline consisting of just-in-time inventory and 17% consisting of fee-for-service inventory, capital-efficient inventory represents 40% of the Company’s total contract sales pipeline.
Balance Sheet and Liquidity
Total cash and cash equivalents were $817 million as of March 31, 2022, including $303 million of restricted cash.
As of March 31, 2022, the Company had $2,913 million of corporate debt, net outstanding with a weighted average interest rate of 4.09% and $1,203 million of non-recourse debt, net outstanding with a weighted average interest rate of 2.87%.
As of March 31, 2022, the Company’s liquidity position consisted of $514 million of unrestricted cash and $699 million remaining borrowing capacity under the revolver facility.
As of March 31, 2022, HGV has $439 million remaining borrowing capacity in total under the Timeshare Facility, and conduit facilities due in 2023 and 2024. Of this amount, HGV has $154 million of mortgage notes that are available to be securitized and another $238 million of mortgage notes that the Company expects will become eligible as soon as they meet typical milestones including receipt of first payment, deeding, or recording.
Free cash flow was $256 million for the quarter ended March 31, 2022, compared to $57 million for the same period in the prior year. Adjusted free cash flow was $159 million for the quarter ended March 31, 2022, compared to $3 million for the same period in the prior year. Adjusted free cash flow for the quarter ended March 31, 2022 includes add-backs of $25 million related to the Diamond Acquisition.
As of March 31, 2022, the Company’s total net leverage on a pro-forma trailing 12-month basis was approximately 2.62x, not giving effect to anticipated synergies. Inclusive of anticipated synergies, HGV was at 2.39x total net leverage on a pro-forma trailing 12-month basis.
Subsequent Events
On April 21, 2022, HGV completed a $246 million securitization of its gross timeshare financing receivables with an overall weighted average interest rate of 4.30 percent and an overall advance rate of 95%. The proceeds were primarily used to pay down one of the Company's conduit facilities in full, which was a total of $115 million, and for general corporate purposes.
On May 3, 2022, HGV amended the terms of the Timeshare Facility to increase the borrowing capacity from $450 million to $750 million, allowing the Company to borrow up to the maximum amount until May 2024 and requiring all amounts borrowed to be repaid in 2025. The Timeshare Facility is secured by certain timeshare financing receivables in the Company's loan portfolio.
On May 4, 2022, HGV's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to an aggregate of $500 million of its outstanding shares of common stock.
Total Construction Deferrals and/or Recognitions Included in Results Reported Under Accounting Standards Codification Topic 606 (“ASC 606”)
The Company’s Adjusted EBITDA as reported under ASC 606 includes construction-related recognitions and deferrals of revenues and related expenses as detailed in Table T-1. Under ASC 606, the Company defers revenues and related expenses pertaining to sales at projects that occur during periods when that project is under construction until the period when construction is completed.
T-1 |
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NET CONSTRUCTION DEFERRAL ACTIVITY |
||||||||||||||||||||
|
|
2022 |
|
|||||||||||||||||
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
Full
|
|
|||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of VOIs (deferrals) recognitions |
|
$ |
(42 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(42 |
) |
Cost of VOI sales (deferrals) recognitions(1) |
|
|
(13 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
Sales and marketing expense (deferrals) recognitions |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
Net construction (deferrals) recognitions(2) |
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(22 |
) |
|
|
|
|
|||||||||||||||||
Net income |
|
$ |
51 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
51 |
|
Interest expense |
|
|
33 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
Income tax expense |
|
|
20 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
Depreciation and amortization |
|
|
60 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60 |
|
Interest expense and depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
EBITDA |
|
|
164 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
164 |
|
Other gain, net |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Share-based compensation expense |
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
Impairment expense |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Acquisition and integration-related expense |
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Other adjustment items(3) |
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
Adjusted EBITDA |
|
$ |
202 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
T-1 |
||||||||||||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
||||||||||||||||||||
(CONTINUED) |
||||||||||||||||||||
|
|
2021 |
|
|||||||||||||||||
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
Full
|
|
|||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of VOIs (deferrals) recognitions |
|
$ |
(32 |
) |
|
$ |
(42 |
) |
|
$ |
241 |
|
|
$ |
(34 |
) |
|
$ |
133 |
|
Cost of VOI sales (deferrals) recognitions(1) |
|
|
(10 |
) |
|
|
(13 |
) |
|
|
73 |
|
|
|
(12 |
) |
|
|
38 |
|
Sales and marketing expense (deferrals) recognitions |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
35 |
|
|
|
(5 |
) |
|
|
19 |
|
Net construction (deferrals) recognitions(2) |
|
$ |
(18 |
) |
|
$ |
(22 |
) |
|
$ |
133 |
|
|
$ |
(17 |
) |
|
$ |
76 |
|
Net (loss) income |
|
$ |
(7 |
) |
|
$ |
9 |
|
|
$ |
99 |
|
|
$ |
75 |
|
|
$ |
176 |
|
Interest expense |
|
|
15 |
|
|
|
17 |
|
|
|
42 |
|
|
|
31 |
|
|
|
105 |
|
Income tax (benefit) expense |
|
|
(6 |
) |
|
|
3 |
|
|
|
49 |
|
|
|
47 |
|
|
|
93 |
|
Depreciation and amortization |
|
|
11 |
|
|
|
12 |
|
|
|
48 |
|
|
|
55 |
|
|
|
126 |
|
Interest expense and depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
EBITDA |
|
|
14 |
|
|
|
41 |
|
|
|
238 |
|
|
|
208 |
|
|
|
501 |
|
Other loss, net |
|
|
1 |
|
|
|
1 |
|
|
|
20 |
|
|
|
4 |
|
|
|
26 |
|
Share-based compensation expense |
|
|
4 |
|
|
|
14 |
|
|
|
14 |
|
|
|
16 |
|
|
|
48 |
|
Impairment expense |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
Acquisition and integration-related expense |
|
|
15 |
|
|
|
14 |
|
|
|
54 |
|
|
|
23 |
|
|
|
106 |
|
Other adjustment items(3) |
|
|
7 |
|
|
|
— |
|
|
|
13 |
|
|
|
13 |
|
|
|
33 |
|
Adjusted EBITDA |
|
$ |
42 |
|
|
$ |
70 |
|
|
$ |
340 |
|
|
$ |
264 |
|
|
$ |
716 |
|
(1) |
Includes anticipated Costs of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired once construction is complete. |
|
(2) |
The table represents deferrals and recognitions of Sales of VOIs revenue and direct costs for properties under construction. |
|
(3)
|
Includes costs associated with restructuring, one-time charges and other non-cash items. This amount also includes the amortization of premiums resulting from purchase accounting for the periods subsequent to the Diamond acquisition. |
Conference Call
Hilton Grand Vacations will host a conference call on May 9, 2022, at 11 a.m. (ET) to discuss first quarter results.
To access the live teleconference, please dial 1-877-407-0784 in the U.S./Canada (or +1-201-689-8560 internationally) approximately 15 minutes prior to the teleconference’s start time. A live webcast will also be available by logging onto the HGV Investor Relations website at https://investors.hgv.com.
In the event of audio difficulties during the call on the toll-free number, participants are advised that accessing the call using the +1-201-689-8560 dial-in number may bypass the source of audio difficulties.
A replay will be available within 24 hours after the teleconference’s completion through May 16, 2022. To access the replay, please dial 1-844-512-2921 in the U.S. (+1-412-317-6671 internationally) using ID# 13726009. A webcast replay and transcript will also be available within 24 hours after the live event at https://investors.hgv.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management’s expectations as to the future of HGV, and are based on management’s beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time HGV makes such statements. Forward-looking statements include all statements that are not historical facts, may be identified by terminology such as the words “outlook,” “believe,” “expect,” “potential,” “goal,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” predicts,” “intends,” “plans,” “estimates,” “anticipates” “future,” “guidance,” “target,” or the negative version of these words or other comparable words, although not all forward-looking statements may contain such words. The forward-looking statements contained in this press release include statements related to HGV's revenues, earnings, taxes, cash flow and related financial and operating measures, and expectations with respect to future operating, financial and business performance and other anticipated future events and expectations that are not historical facts.
HGV cautions you that forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV’s control, that may cause its actual results, performance or achievements to be materially different from the future results. Factors that could cause HGV’s actual results to differ materially from those contemplated by its forward-looking statements include: risks that HGV may not realize the expected cost savings, synergies, growth and other benefits from the Diamond Acquisition or that the costs related to the Diamond Acquisition are greater than anticipated; risks that there may be significant costs and expenses associated with liabilities related to the Diamond business that were either unknown or are greater than those anticipated at the time of the Diamond Acquisition; risks that HGV may not be successful in integrating the Diamond business into all aspects of HGV's business and operations, including the conversion and rebranding of the Diamond properties, rooms and sales facilities into HGV-branded assets, or that the integration will take longer than anticipated; the potential magnification of HGV's operational risks as a result of the Diamond Acquisition and integration of the Diamond business; risks related to disruption of management’s attention from HGV’s ongoing business operations due to its efforts to integrate Diamond into HGV; any adverse effect of the Diamond Acquisition on HGV’s reputation, relationships, operating results and business generally; the continuing impact of the COVID-19 pandemic on HGV’s business, operating results, and financial condition; the extent and duration of the impact of the COVID-19 pandemic on global economic conditions; HGV’s ability to meet its liquidity needs; risks related to HGV’s indebtedness, especially in light of the significant amount of indebtedness HGV incurred to complete the Diamond Acquisition; inherent business risks, market trends and competition within the timeshare and hospitality industries; HGV’s ability to successfully source inventory and market, sell and finance VOIs; default rates on HGV’s financing receivables (including those financing receivables related to the Diamond business); the reputation of and HGV’s ability to access Hilton brands and programs, including the risk of a breach or termination of HGV’s license agreement with Hilton; the integration of Diamond’s operations as part of HGV’s overall brand that is governed by the terms of HGV’s license agreement with Hilton; compliance with and changes to United States and global laws and regulations, including those related to anti-corruption and privacy; risks related to HGV’s acquisitions, joint ventures, and other partnerships; HGV’s dependence on third-party development activities to secure just-in-time inventory; the performance of HGV's information technology systems and HGV’s ability to maintain data security; regulatory proceedings or litigation; adequacy of HGV’s workforce to meet its business and operation needs; HGV’s ability to attract and retain key executives and employees with skills and capacity to meet its needs; and natural disasters or adverse geo-political conditions. Any one or more of the foregoing or other factors could adversely impact HGV’s operations, revenue, operating profits and margins, key business operational metrics, financial condition and/or credit rating.
For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in HGV’s most recent Annual Report on Form 10-K filed with the SEC on March 1, 2022, which may be updated from time to time in HGV’s quarterly reports, current reports and other filings HGV makes with the SEC.
HGV’s forward-looking statements speak only as of the date of this communication or as of the date they are made. HGV disclaims any intent or obligation to update any “forward looking statement” made in this communication to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
Non-GAAP Financial Measures
The Company refers to certain non-GAAP financial measures in this press release, including EBITDA, Adjusted EBITDA, EBITDA profit margin, Adjusted EBITDA profit margin, free cash flow and adjusted free cash flow. Please see the tables in this press release and “Definitions” for additional information and reconciliations of such non-GAAP financial measures.
About Hilton Grand Vacations Inc.
Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a leading global timeshare company. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. As one of Hilton’s 18 premier brands, Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and more than 715,000 owners. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world. For more information, visit www.hiltongrandvacations.com.
HILTON GRAND VACATIONS INC. DEFINITIONS
EBITDA and Adjusted EBITDA
EBITDA, presented herein, is a financial measure that is not recognized under U.S. GAAP that reflects net income (loss), before interest expense (excluding non-recourse debt), a provision for income taxes and depreciation and amortization.
Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains, including asset dispositions and foreign currency translations; (ii) debt restructurings/retirements; (iii) non-cash impairment losses; (iv) share-based and other compensation expenses; and (v) other items, including but not limited to costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges.
EBITDA profit margin, presented herein, represents EBITDA, as previously defined, divided by total revenues. Adjusted EBITDA profit margin, presented herein, represents Adjusted EBITDA, as previously defined, divided by total revenues.
EBITDA and Adjusted EBITDA are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
HGV believes that EBITDA and Adjusted EBITDA provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA and Adjusted EBITDA are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions; and (ii) EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss), cash flow or other methods of analyzing our results as reported under U.S. GAAP. Some of these limitations are:
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations.
Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow represents cash from operating activities less non-inventory capital spending.
Adjusted Free Cash Flow represents free cash flow further adjusted to exclude net non-recourse debt activities and other one-time adjustment items including, but not limited to, costs associated with acquisitions.
We consider Free Cash Flow and Adjusted Free Cash Flow to be liquidity measures not recognized under U.S. GAAP that provides useful information to both management and investors about the amount of cash generated by operating activities that can be used for investing and financing activities, including strategic opportunities and debt service. We do not believe these non-GAAP measures to be a representation of how we will use excess cash.
Real Estate Metrics
Contract sales represents the total amount of VOI products (fee-for-service, just-in-time, developed, and points-based) under purchase agreements signed during the period where we have received a down payment of at least 10 percent of the contract price. Contract sales differ from revenues from the Sales of VOIs, net that we report in our condensed consolidated statements of operations due to the requirements for revenue recognition, as well as adjustments for incentives. We consider contract sales to be an important operating measure because it reflects the pace of sales in our business and is used to manage the performance of the sales organization. While the presentation of contract sales on a combined basis (fee-for-service, just-in-time, developed, and points-based) is most appropriate for the purpose of the operating metric, additional information regarding the split of contract sales, included in “—Real Estate” below, is useful for investors who are interested in the underlying capital structures of the Company’s projects. See Note 2: Summary of Significant Accounting Policies in our consolidated financial statements included in Item 8 in our Annual Report on form 10-K for the year ended December 31, 2021, for additional information on Sales of VOIs, net.
Developed Inventory refers to VOI inventory that is sourced from projects the Company develops.
Fee-for-Service Inventory refers to VOI inventory HGV sells and manages on behalf of third-party developers.
Just-in-Time Inventory refers to VOI inventory primarily sourced in transactions that are designed to closely correlate the timing of the acquisition with HGV’s sale of that inventory to purchasers.
Points-Based Inventory refers to VOI sales that are backed by physical real estate that is contributed to a trust.
NOG or Net Owner Growth represents the year-over-year change in membership.
Real estate profit represents sales revenue less the cost of VOI sales and sales and marketing costs, net of marketing revenue. Real estate profit margin is calculated by dividing real estate profit by sales revenue. The Company considers this to be an important operating measure because it measures the efficiency of our sales and marketing spending and management of inventory costs.
Sales revenue represents Sale of VOIs, net and fee-for-service commissions and brand fees earned from the sale of fee-for-service intervals.
Fee-for-service commissions and brand fees, net represents commissions and brand fees earned from the sale of fee-for-service intervals net of related reserves.
Tour flow represents the number of sales presentations given at HGV’s sales centers during the period.
Volume per guest (“VPG”) represents the sales attributable to tours at HGV’s sales locations and is calculated by dividing contract sales, excluding telesales, by tour flow. The Company considers VPG to be an important operating measure because it measures the effectiveness of HGV’s sales process, combining the average transaction price with closing rate.
HILTON GRAND VACATIONS INC. |
|
FINANCIAL TABLES |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
T-2 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
T-3 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
T-4 |
FREE CASH FLOWS RECONCILIATION |
T-5 |
SEGMENT REVENUE RECONCILIATION |
T-6 |
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME (LOSS) |
T-7 |
REAL ESTATE SALES PROFIT DETAIL SCHEDULE |
T-8 |
CONTRACT SALES MIX BY TYPE SCHEDULE |
T-9 |
FINANCING PROFIT DETAIL SCHEDULE |
T-10 |
RESORT AND CLUB PROFIT DETAIL SCHEDULE |
T-11 |
RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE |
T-12 |
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA |
T-13 |
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA |
T-14 |
|
|
T-2 |
||||||||
HILTON GRAND VACATIONS INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in millions, except share data) |
||||||||
|
|
March 31, |
|
|
December 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
514 |
|
|
$ |
432 |
|
Restricted cash |
|
|
303 |
|
|
|
263 |
|
Accounts receivable, net |
|
|
447 |
|
|
|
302 |
|
Timeshare financing receivables, net |
|
|
1,718 |
|
|
|
1,747 |
|
Inventory |
|
|
1,215 |
|
|
|
1,240 |
|
Property and equipment, net |
|
|
754 |
|
|
|
756 |
|
Operating lease right-of-use assets, net |
|
|
65 |
|
|
|
70 |
|
Investments in unconsolidated affiliates |
|
|
62 |
|
|
|
59 |
|
Goodwill |
|
|
1,351 |
|
|
|
1,377 |
|
Intangible assets, net |
|
|
1,400 |
|
|
|
1,441 |
|
Land and infrastructure held for sale |
|
|
41 |
|
|
|
41 |
|
Other assets |
|
|
572 |
|
|
|
280 |
|
TOTAL ASSETS |
|
$ |
8,442 |
|
|
$ |
8,008 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Accounts payable, accrued expenses and other |
|
$ |
964 |
|
|
$ |
673 |
|
Advanced deposits |
|
|
126 |
|
|
|
112 |
|
Debt, net |
|
|
2,913 |
|
|
|
2,913 |
|
Non-recourse debt, net |
|
|
1,203 |
|
|
|
1,328 |
|
Operating lease liabilities |
|
|
85 |
|
|
|
87 |
|
Deferred revenues |
|
|
395 |
|
|
|
237 |
|
Deferred income tax liabilities |
|
|
691 |
|
|
|
670 |
|
Total liabilities |
|
|
6,377 |
|
|
|
6,020 |
|
|
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of March 31, 2022 and December 31, 2021 |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 120,258,347 and 119,904,001 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
1,634 |
|
|
|
1,630 |
|
Accumulated retained earnings |
|
|
408 |
|
|
|
357 |
|
Accumulated other comprehensive income |
|
|
22 |
|
|
|
— |
|
Total equity |
|
|
2,065 |
|
|
|
1,988 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
8,442 |
|
|
$ |
8,008 |
|
T-3 |
||||||||
HILTON GRAND VACATIONS INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(in millions, except share data) |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Revenues |
|
|
|
|
|
|
||
Sales of VOIs, net |
|
$ |
269 |
|
|
$ |
33 |
|
Sales, marketing, brand and other fees |
|
|
119 |
|
|
|
53 |
|
Financing |
|
|
64 |
|
|
|
37 |
|
Resort and club management |
|
|
125 |
|
|
|
45 |
|
Rental and ancillary services |
|
|
136 |
|
|
|
32 |
|
Cost reimbursements |
|
|
66 |
|
|
|
35 |
|
Total revenues |
|
|
779 |
|
|
|
235 |
|
Expenses |
|
|
|
|
|
|
||
Cost of VOI sales |
|
|
40 |
|
|
|
3 |
|
Sales and marketing |
|
|
243 |
|
|
|
82 |
|
Financing |
|
|
19 |
|
|
|
13 |
|
Resort and club management |
|
|
36 |
|
|
|
8 |
|
Rental and ancillary services |
|
|
132 |
|
|
|
31 |
|
General and administrative |
|
|
42 |
|
|
|
21 |
|
Acquisition and integration-related expense |
|
|
13 |
|
|
|
15 |
|
Depreciation and amortization |
|
|
60 |
|
|
|
11 |
|
License fee expense |
|
|
25 |
|
|
|
14 |
|
Impairment expense |
|
|
3 |
|
|
|
1 |
|
Cost reimbursements |
|
|
66 |
|
|
|
35 |
|
Total operating expenses |
|
|
679 |
|
|
|
234 |
|
Interest expense |
|
|
(33 |
) |
|
|
(15 |
) |
Equity in earnings from unconsolidated affiliates |
|
|
3 |
|
|
|
2 |
|
Other gain (loss), net |
|
|
1 |
|
|
|
(1 |
) |
Income (loss) before income taxes |
|
|
71 |
|
|
|
(13 |
) |
Income tax (expense) benefit |
|
|
(20 |
) |
|
|
6 |
|
Net income (loss) |
|
$ |
51 |
|
|
$ |
(7 |
) |
Earnings (loss) per share(1): |
|
|
|
|
|
|
||
Basic |
|
$ |
0.42 |
|
|
$ |
(0.08 |
) |
Diluted |
|
$ |
0.42 |
|
|
$ |
(0.08 |
) |
Weighted average shares outstanding(2) |
|
|
|
|
|
|
||
Basic |
|
|
119,981 |
|
|
|
85,308 |
|
Diluted |
|
|
121,845 |
|
|
|
85,308 |
|
(1) Earnings (loss) per share is calculated based on unrounded dollars. |
||||||||
(2) Presented in thousands. |
||||||||
T-4 |
||||||||
HILTON GRAND VACATIONS INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in millions) |
||||||||
|
|
|
|
|||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Operating Activities |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
51 |
|
|
$ |
(7 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
60 |
|
|
|
11 |
|
Amortization of deferred financing costs, acquisition premiums and other |
|
|
12 |
|
|
|
6 |
|
Provision for financing receivables losses |
|
|
31 |
|
|
|
16 |
|
Impairment expense |
|
|
3 |
|
|
|
1 |
|
Other loss, net |
|
|
— |
|
|
|
1 |
|
Share-based compensation |
|
|
11 |
|
|
|
4 |
|
Deferred income tax benefit |
|
|
— |
|
|
|
(21 |
) |
Equity in earnings from unconsolidated affiliates |
|
|
(3 |
) |
|
|
(2 |
) |
Net changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(107 |
) |
|
|
8 |
|
Timeshare financing receivables, net |
|
|
(11 |
) |
|
|
19 |
|
Inventory |
|
|
26 |
|
|
|
(14 |
) |
Purchases and development of real estate for future conversion to inventory |
|
|
(1 |
) |
|
|
(6 |
) |
Other assets |
|
|
(264 |
) |
|
|
(27 |
) |
Accounts payable, accrued expenses and other |
|
|
290 |
|
|
|
2 |
|
Advanced deposits |
|
|
14 |
|
|
|
(3 |
) |
Deferred revenues |
|
|
158 |
|
|
|
74 |
|
Net cash provided by operating activities |
|
|
270 |
|
|
|
62 |
|
Investing Activities |
|
|
|
|
|
|
||
Capital expenditures for property and equipment |
|
|
(8 |
) |
|
|
(1 |
) |
Software capitalization costs |
|
|
(6 |
) |
|
|
(4 |
) |
Net cash used in investing activities |
|
|
(14 |
) |
|
|
(5 |
) |
Financing Activities |
|
|
|
|
|
|
||
Issuance of non-recourse debt |
|
|
155 |
|
|
|
— |
|
Repayment of debt |
|
|
(3 |
) |
|
|
(2 |
) |
Repayment of non-recourse debt |
|
|
(277 |
) |
|
|
(69 |
) |
Debt issuance costs and discounts |
|
|
— |
|
|
|
(3 |
) |
Payment of withholding taxes on vesting of restricted stock units |
|
|
(8 |
) |
|
|
(5 |
) |
Proceeds from stock option exercises |
|
|
1 |
|
|
|
2 |
|
Other financing activity |
|
|
(1 |
) |
|
|
(1 |
) |
Net cash used in financing activities |
|
|
(133 |
) |
|
|
(78 |
) |
Effect of changes in exchange rates on cash, cash equivalents & restricted cash |
|
|
(1 |
) |
|
|
— |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
122 |
|
|
|
(21 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
695 |
|
|
|
526 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
817 |
|
|
$ |
505 |
|
T-5 |
||||||||
HILTON GRAND VACATIONS INC. |
||||||||
FREE CASH FLOW RECONCILIATION |
||||||||
(in millions) |
||||||||
|
|
|
|
|||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net cash provided by operating activities |
|
$ |
270 |
|
|
$ |
62 |
|
Capital expenditures for property and equipment |
|
|
(8 |
) |
|
|
(1 |
) |
Software capitalization costs |
|
|
(6 |
) |
|
|
(4 |
) |
Free Cash Flow |
|
$ |
256 |
|
|
$ |
57 |
|
Non-recourse debt activity, net |
|
|
(122 |
) |
|
|
(69 |
) |
Acquisition and integration-related expense |
|
|
12 |
|
|
|
15 |
|
Other adjustment items(1) |
|
|
13 |
|
|
|
— |
|
Adjusted Free Cash Flow |
|
$ |
159 |
|
|
$ |
3 |
|
(1) Includes capitalized acquisition and integration-related costs for the three months ended March 31, 2022. |
||||||||
T-6 |
||||||||
HILTON GRAND VACATIONS INC. |
||||||||
SEGMENT REVENUE RECONCILIATION |
||||||||
(in millions) |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Revenues: |
|
|
|
|
|
|
||
Real estate sales and financing |
|
$ |
452 |
|
|
$ |
123 |
|
Resort operations and club management |
|
|
268 |
|
|
|
80 |
|
Total segment revenues |
|
|
720 |
|
|
|
203 |
|
Cost reimbursements |
|
|
66 |
|
|
|
35 |
|
Intersegment eliminations |
|
|
(7 |
) |
|
|
(3 |
) |
Total revenues |
|
$ |
779 |
|
|
$ |
235 |
|
T-7 |
|||||||
HILTON GRAND VACATIONS INC. |
|||||||
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME (LOSS) |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Net income (loss) |
$ |
51 |
|
|
$ |
(7 |
) |
Interest expense |
|
33 |
|
|
|
15 |
|
Income tax expense (benefit) |
|
20 |
|
|
|
(6 |
) |
Depreciation and amortization |
|
60 |
|
|
|
11 |
|
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
— |
|
|
|
1 |
|
EBITDA |
|
164 |
|
|
|
14 |
|
Other (gain) loss, net |
|
(1 |
) |
|
|
1 |
|
Share-based compensation expense |
|
11 |
|
|
|
4 |
|
Impairment expense |
|
3 |
|
|
|
1 |
|
Acquisition and integration-related expense |
|
13 |
|
|
|
15 |
|
Other adjustment items(1) |
|
12 |
|
|
|
7 |
|
Adjusted EBITDA |
$ |
202 |
|
|
$ |
42 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
Segment Adjusted EBITDA: |
|
|
|
|
|
||
Real estate sales and financing(2) |
$ |
153 |
|
|
$ |
27 |
|
Resort operations and club management(2) |
|
101 |
|
|
|
42 |
|
Adjustments: |
|
|
|
|
|
||
Adjusted EBITDA from unconsolidated affiliates |
|
3 |
|
|
|
3 |
|
License fee expense |
|
(25 |
) |
|
|
(14 |
) |
General and administrative(3) |
|
(30 |
) |
|
|
(16 |
) |
Adjusted EBITDA |
$ |
202 |
|
|
$ |
42 |
|
Adjusted EBITDA profit margin |
|
25.9 |
% |
|
|
17.9 |
% |
EBITDA profit margin |
|
21.1 |
% |
|
|
6.0 |
% |
(1) |
Includes costs associated with restructuring, one-time charges and other non-cash items. For the three months ended March 31, 2022, this amount also includes the amortization of premiums resulting from the Diamond Acquisition. |
|
(2) |
Includes intersegment transactions, share-based compensation, depreciation and other adjustments attributable to the segments. |
|
(3) |
Excludes segment related share-based compensation, depreciation and other adjustment items. |
T-8 |
|||||||
HILTON GRAND VACATIONS INC. |
|||||||
REAL ESTATE SALES PROFIT DETAIL SCHEDULE |
|||||||
(in millions, except Tour Flow and VPG) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Tour flow |
|
98,601 |
|
|
|
27,948 |
|
VPG |
$ |
4,849 |
|
|
$ |
4,647 |
|
Owned contract sales mix |
|
74.7 |
% |
|
|
59.7 |
% |
Fee-for-service contract sales mix |
|
25.3 |
% |
|
|
40.3 |
% |
|
|
|
|
|
|
||
Contract sales |
$ |
509 |
|
|
$ |
139 |
|
Adjustments: |
|
|
|
|
|
||
Fee-for-service sales(1) |
|
(129 |
) |
|
|
(56 |
) |
Provision for financing receivables losses |
|
(31 |
) |
|
|
(16 |
) |
Reportability and other: |
|
|
|
|
|
||
Net (deferral) recognition of sales of VOIs under construction(2) |
|
(42 |
) |
|
|
(32 |
) |
Fee-for-service sale upgrades, net |
|
4 |
|
|
|
2 |
|
Other(3) |
|
(42 |
) |
|
|
(4 |
) |
Sales of VOIs, net |
$ |
269 |
|
|
$ |
33 |
|
Plus: |
|
|
|
|
|
||
Fee-for-service commissions and brand fees, net |
|
69 |
|
|
|
32 |
|
Sales revenue |
|
338 |
|
|
|
65 |
|
Less: |
|
|
|
|
|
||
Cost of VOI sales |
|
40 |
|
|
|
3 |
|
Sales and marketing expense, net(4) |
|
186 |
|
|
|
59 |
|
Real estate profit (loss) |
$ |
112 |
|
|
$ |
3 |
|
Real estate profit margin |
|
33.1 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
||
Reconciliation of fee-for-service commissions: |
|
|
|
|
|
||
Sales, marketing, brand and other fees |
$ |
119 |
|
|
$ |
53 |
|
Less: |
|
|
|
|
|
||
Marketing revenue and other fees |
|
50 |
|
|
|
21 |
|
Fee-for-service commissions and brand fees, net |
|
69 |
|
|
|
32 |
|
(1) |
Represents contract sales from fee-for-service properties on which we earn commissions and brand fees. |
|
(2) |
Represents the net impact of deferred revenues related to the Sales of VOIs under construction that are recognized when construction is complete. |
|
(3) |
Includes adjustments for revenue recognition, including amounts in rescission and sales incentives. |
|
(4) |
Includes revenue recognized through our marketing programs for existing owners and prospective first-time buyers and revenue associated with sales incentives and document compliance. |
T-9 |
||||||||
HILTON GRAND VACATIONS INC. |
||||||||
CONTRACT SALES MIX BY TYPE SCHEDULE |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Just-In-Time Contract Sales Mix |
|
|
14 |
% |
|
|
28 |
% |
Fee-For-Service Contract Sales Mix |
|
|
25 |
% |
|
|
40 |
% |
Total Capital-Efficient Contract Sales Mix(1) |
|
|
39 |
% |
|
|
68 |
% |
(1) Diamond contract sales are related to developed properties and therefore are not included in capital efficient contract sales. |
||||||||
T-10 |
|||||||
HILTON GRAND VACATIONS INC. |
|||||||
FINANCING PROFIT DETAIL SCHEDULE |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Interest income(1) |
$ |
55 |
|
|
$ |
31 |
|
Other financing revenue |
|
9 |
|
|
|
6 |
|
Financing revenue |
|
64 |
|
|
|
37 |
|
Consumer financing interest expense(2) |
|
7 |
|
|
|
7 |
|
Other financing expense |
|
12 |
|
|
|
6 |
|
Financing expense |
|
19 |
|
|
|
13 |
|
Financing profit |
$ |
45 |
|
|
$ |
24 |
|
Financing profit margin |
|
70.3 |
% |
|
|
64.9 |
% |
(1) |
For the three months ended March 31, 2022, this amount includes $9 million of amortization of the premium related to the acquired timeshare financing receivables resulting from the Diamond Acquisition. |
|
(2) |
For the three months ended March 31, 2022, this amount includes $3 million of amortization of the premium related to the acquired non-recourse debt resulting from the Diamond Acquisition. |
T-11 |
|||||||
HILTON GRAND VACATIONS INC. |
|||||||
RESORT AND CLUB PROFIT DETAIL SCHEDULE |
|||||||
(in millions, except for Members and Net Owner Growth) |
|||||||
|
Twelve months ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Total members |
|
502,304 |
|
|
|
327,880 |
|
Legacy-HGV Net Owner Growth (NOG)(1) |
|
6,728 |
|
|
|
(337 |
) |
Legacy-HGV Net Owner Growth % (NOG%)(1) |
|
2.1 |
% |
|
|
(0.1 |
)% |
(1) NOG is a twelve-trailing-month concept and thus not calculated for Diamond under HGV's ownership. |
|
||||||
|
|
|
|
|
|
||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Club management revenue |
$ |
51 |
|
|
$ |
27 |
|
Resort management revenue |
|
74 |
|
|
|
18 |
|
Resort and club management revenues |
|
125 |
|
|
|
45 |
|
Club management expense |
|
10 |
|
|
|
5 |
|
Resort management expense |
|
26 |
|
|
|
3 |
|
Resort and club management expenses |
|
36 |
|
|
|
8 |
|
Resort and club management profit |
$ |
89 |
|
|
$ |
37 |
|
Resort and club management profit margin |
|
71.2 |
% |
|
|
82.2 |
% |
T-12 |
|||||||
HILTON GRAND VACATIONS INC. |
|||||||
RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Rental revenues |
$ |
124 |
|
|
$ |
30 |
|
Ancillary services revenues |
|
12 |
|
|
|
2 |
|
Rental and ancillary services revenues |
|
136 |
|
|
|
32 |
|
Rental expenses |
|
122 |
|
|
|
29 |
|
Ancillary services expense |
|
10 |
|
|
|
2 |
|
Rental and ancillary services expenses |
|
132 |
|
|
|
31 |
|
Rental and ancillary services profit |
$ |
4 |
|
|
$ |
1 |
|
Rental and ancillary services profit margin |
|
2.9 |
% |
|
|
3.1 |
% |
T-13 |
|||||||
HILTON GRAND VACATIONS INC. |
|||||||
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Sales of VOIs, net |
$ |
269 |
|
|
$ |
33 |
|
Sales, marketing, brand and other fees |
|
119 |
|
|
|
53 |
|
Financing revenue |
|
64 |
|
|
|
37 |
|
Real estate sales and financing segment revenues |
|
452 |
|
|
|
123 |
|
Cost of VOI sales |
|
(40 |
) |
|
|
(3 |
) |
Sales and marketing expense, net |
|
(243 |
) |
|
|
(82 |
) |
Financing expense |
|
(19 |
) |
|
|
(13 |
) |
Marketing package stays |
|
(7 |
) |
|
|
(3 |
) |
Share-based compensation |
|
3 |
|
|
|
2 |
|
Other adjustment items |
|
7 |
|
|
|
3 |
|
Real estate sales and financing segment adjusted EBITDA |
$ |
153 |
|
|
$ |
27 |
|
Real estate sales and financing segment adjusted EBITDA profit margin |
|
33.8 |
% |
|
|
22.0 |
% |
T-14 |
|||||||
HILTON GRAND VACATIONS INC. |
|||||||
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Resort and club management revenues |
$ |
125 |
|
|
$ |
45 |
|
Rental and ancillary services |
|
136 |
|
|
|
32 |
|
Marketing package stays |
|
7 |
|
|
|
3 |
|
Resort and club management segment revenue |
|
268 |
|
|
|
80 |
|
Resort and club management expenses |
|
(36 |
) |
|
|
(8 |
) |
Rental and ancillary services expenses |
|
(132 |
) |
|
|
(31 |
) |
Share-based compensation |
|
1 |
|
|
|
— |
|
Other adjustment items |
|
— |
|
|
|
1 |
|
Resort and club segment adjusted EBITDA |
$ |
101 |
|
|
$ |
42 |
|
Resort and club management segment adjusted EBITDA profit margin |
|
37.7 |
% |
|
|
52.5 |
% |
ОРЛАНДО, Флорида.--(BUSINESS WIRE)--Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” или “Компания”) сегодня сообщает о своих результатах за первый квартал 2022 года.
Результаты первого квартала 2022 Года1
Прогноз на Весь 2022 год
“Сильный рост динамики в течение квартала привел нас к очередному набору рекордных результатов”, - сказал Марк Ванг, президент и главный исполнительный директор Hilton Grand Vacations. “Мы обеспечили показатели EBITDA, рентабельности и денежного потока значительно выше наших прогнозных показателей на 2019 год, а наши тщательные усилия по интеграции позволили нам выявить дополнительную синергию затрат от приобретения Алмазов. Все это вместе взятое придало нам уверенности в том, что мы сможем увеличить дальность наведения на 2022 год. Кроме того, мы представили наш первый набор объектов недвижимости с ребрендингом Diamond в рамках коллекции Hilton Vacation Club и запустили HGV Max, нашу новую программу членства на основе опыта. Они представляют собой важнейшие этапы нашей интеграции и повышают общую ценность нашего предложения за счет более широкого доступа и новых захватывающих преимуществ".
1 The Company’s current period results and prior year results include impacts related to deferrals of revenues and direct expenses related to the Sales of VOIs under construction that are recognized when construction is complete. These impacts are reflected in the sub-bullets. |
Приобретение алмазов
2 августа 2021 года HGV завершила сделку по приобретению Dakota Holdings, Inc., материнской компании Diamond Resorts International (“Приобретение Diamond”). HGV завершила сделку по приобретению путем обмена 100% акций Diamond на обыкновенные акции HGV. Ранее существовавшие акционеры HGV владели примерно 72% объединенной компании сразу после вступления в силу сделки по приобретению Diamond, при этом определенные фонды контролировались Apollo Global Management Inc. ("Apollo Funds" или "Apollo") и другими миноритарными акционерами, которые ранее владели 100% Diamond, владеющими оставшимися, примерно 28% на момент завершения приобретения алмазов.
Diamond также работает в индустрии гостеприимства и VOI, имея всемирную сеть курортов по всему миру. Портфель Diamond состоит из курортных объектов, которыми управляет Компания, которые включены в один из одно- и многоцелевых трастов Diamond (совместно именуемых "Diamond Collections" или "Коллекции") или являются курортами под брендом Diamond, в которых Компания владеет инвентарем. В него также входят дочерние курорты и отели, которыми Компания не управляет и которые не имеют бренда Diamond, но являются частью сети Diamond и, благодаря Club® и другим клубным предложениям (“Diamond Clubs”), доступны для использования ее членами в качестве мест отдыха.
Операции Diamond в основном состоят из: продаж и финансирования VOI, которые включают маркетинг и продажи VOI и потребительское финансирование для покупателей VOI Компании; операции, связанные с управлением ассоциациями домовладельцев (“ТСЖ”) для курортной недвижимости и коллекций Diamond, управлением и управлением клубами отдыха на базе точек., а также эксплуатация определенных курортных удобств и услуг по управлению.
Финансовые результаты в этом отчете включают результаты деятельности Diamond, начиная со 2 августа 2021 года ("Дата приобретения"). Компания называет бизнес и операции Diamond, которые были приобретены, “Legacy-Diamond” или “Diamond”, а операции HGV - “Legacy-HGV”, что включает операции, которые существовали как до, так и после приобретения Diamond.
За квартал, закончившийся 31 марта 2022 года, разводненная прибыль на акцию составила $0,42 по сравнению с ($0,08) за квартал, закончившийся 31 марта 2021 года. Чистая прибыль и скорректированная EBITDA составили 51 миллион долларов США и 202 миллиона долларов США соответственно за квартал, закончившийся 31 марта 2022 года, по сравнению с чистым убытком и скорректированной EBITDA в размере (7 миллионов долларов США) и 42 миллионов долларов США соответственно за квартал, закончившийся 31 марта 2021 года. Общая выручка за квартал, закончившийся 31 марта 2022 года, составила 779 миллионов долларов по сравнению с 235 миллионами долларов за квартал, закончившийся 31 марта 2021 года.
Чистая прибыль и скорректированная EBITDA за квартал, закончившийся 31 марта 2022 года, включали чистую отсрочку в размере 22 миллионов долларов США, связанную с продажами квартир в Maui Bay Villas Phase IB и Beach Resort Sesoko Phase II, которые находились в стадии строительства в течение периода. Компания ожидает признания этих доходов и связанных с ними расходов в 2022 году, когда она планирует завершить эти проекты и признать чистые последствия отсрочки.
Основные показатели консолидированного сегмента – Первый квартал 2022 года
Продажа и финансирование недвижимости
За квартал, закончившийся 31 марта 2022 года, выручка сегмента продаж недвижимости и финансирования составила 452 миллиона долларов, увеличившись на 329 миллионов долларов по сравнению с кварталом, закончившимся 31 марта 2021 года. Скорректированный показатель EBITDA сегмента продаж недвижимости и финансирования и Скорректированная рентабельность по EBITDA составили 153 млн долларов США и 33,8% соответственно за квартал, закончившийся 31 марта 2022 года, по сравнению с 27 млн долларов США и 22,0% соответственно за квартал, закончившийся 31 марта 2021 года. Результаты в первом квартале 2022 года улучшились благодаря увеличению турпотока, связанному с улучшением спроса на поездки по сравнению с предыдущим годом, а также увеличению объема на одного гостя.
Скорректированная EBITDA сегмента продаж и финансирования недвижимости отражает сокращение на 22 миллиона долларов США из-за отсрочки продаж и связанных с ними расходов строящегося VOIs в первом квартале 2022 года. Эти отсрочки были связаны с продажами квартир в проектах Maui Bay Villas Phase IB и Beach Resort Sesoko Phase II за квартал, закончившийся 31 марта 2022 года, и сопоставимы с чистыми отсрочками в размере 18 миллионов долларов, связанными с проектами Ocean Tower Phase II, Maui Bay Villas Phase I и Beach Resort Sesoko Phase I за квартал, закончившийся 31 марта 2022 года. квартал закончился 31 марта 2021 года.
Продажи по контрактам за квартал, закончившийся 31 марта 2022 года, увеличились на 370 миллионов долларов до 509 миллионов долларов по сравнению с кварталом, закончившимся 31 марта 2021 года. За квартал, закончившийся 31 марта 2022 года, туры увеличились на 253%, а VPG увеличился на 4% по сравнению с кварталом, закончившимся 31 марта 2021 года. За квартал, закончившийся 31 марта 2022 года, продажи по контрактам с оплатой за обслуживание составили 25% от продаж по контрактам по сравнению с 40% за квартал, закончившийся 31 марта 2021 года.
Финансовые доходы за квартал, закончившийся 31 марта 2022 года, увеличились на 27 миллионов долларов по сравнению с кварталом, закончившимся 31 марта 2021 года. Это было обусловлено главным образом увеличением на 24 миллиона долларов, связанным с процентным доходом по дебиторской задолженности по финансированию таймшера. Компания столкнулась с увеличением остатка дебиторской задолженности по срочному финансированию наряду с увеличением средневзвешенной процентной ставки по созданному портфелю на 100 базисных пунктов по состоянию на 31 марта 2022 года по сравнению с 31 марта 2021 года.
Курортные операции и Управление клубами
За квартал, закончившийся 31 марта 2022 года, выручка сегмента курортных операций и управления клубами составила 268 миллионов долларов, увеличившись на 188 миллионов долларов по сравнению с кварталом, закончившимся 31 марта 2021 года. Скорректированная EBITDA сегмента курортных операций и Управления клубами и Скорректированная рентабельность по EBITDA составили $101 млн и 37,7% соответственно за квартал, закончившийся 31 марта 2022 года, по сравнению с $42 млн и 52,5% соответственно за квартал, закончившийся 31 марта 2021 года. По сравнению с предыдущим годом результаты в первом квартале 2022 года увеличились за счет добавления курортной сети Diamond и базы участников, а также увеличения количества транзакций по сравнению с аналогичным периодом 2021 года, что более чем компенсировало увеличение операционных расходов сегмента.
Оценочная стоимость общего объема продаж Компании по контрактам составляет примерно 13 миллиардов долларов по текущим ценам.
Общий объем продаж включает примерно 7 миллиардов долларов, связанных с запасами, которые в настоящее время доступны для продажи в открытых или планируемых к открытию проектах. Оставшиеся примерно 6 миллиардов долларов продаж составляют запасы в новых или существующих проектах, которые станут доступными для продажи в будущем после регистрации, сдачи или строительства.
Собственные запасы составляют 83% от общего объема поставок Компании. Примерно 53% принадлежащего инвентарного трубопровода в настоящее время доступно для продажи.
Запасы платных услуг составляют 17% от общего объема поставок Компании. Примерно 46% инвентарного конвейера с оплатой за обслуживание в настоящее время доступно для продажи.
С учетом того, что 23% конвейера составляют запасы "точно в срок" и 17% - запасы с оплатой за обслуживание, капиталоэффективные запасы составляют 40% от общего объема продаж Компании по контрактам.
Баланс и Ликвидность
Общая сумма денежных средств и их эквивалентов по состоянию на 31 марта 2022 года составила 817 миллионов долларов, включая 303 миллиона долларов ограниченных денежных средств.
По состоянию на 31 марта 2022 года у Компании было 2 913 миллионов долларов корпоративного долга, чистого непогашенного со средневзвешенной процентной ставкой 4,09%, и 1 203 миллиона долларов долга без права регресса, чистого непогашенного со средневзвешенной процентной ставкой 2,87%.
По состоянию на 31 марта 2022 года позиция ликвидности Компании состояла из 514 миллионов долларов неограниченных денежных средств и 699 миллионов долларов оставшихся заемных средств в рамках программы revolver.
По состоянию на 31 марта 2022 года у HGV в общей сложности осталось 439 миллионов долларов заемных средств в рамках Механизма таймшера, а срок погашения - в 2023 и 2024 годах. Из этой суммы у HGV есть ипотечные облигации на сумму 154 миллиона долларов, которые можно секьюритизировать, и еще 238 миллионов долларов ипотечных облигаций, которые, как ожидает Компания, станут приемлемыми, как только они достигнут типичных этапов, включая получение первого платежа, списание или запись.
Свободный денежный поток составил 256 миллионов долларов за квартал, закончившийся 31 марта 2022 года, по сравнению с 57 миллионами долларов за аналогичный период предыдущего года. Скорректированный свободный денежный поток составил 159 миллионов долларов за квартал, закончившийся 31 марта 2022 года, по сравнению с 3 миллионами долларов за аналогичный период предыдущего года. Скорректированный свободный денежный поток за квартал, закончившийся 31 марта 2022 года, включает дополнительные расходы в размере 25 миллионов долларов, связанные с приобретением Алмазов.
По состоянию на 31 марта 2022 года общий чистый левередж Компании на проформной 12-месячной основе составил примерно 2,62x, что не привело к ожидаемому синергетическому эффекту. С учетом ожидаемого синергетического эффекта общий чистый левередж HGV составил 2,39 х на 12-месячной основе для проформы.
Последующие События
21 апреля 2022 года HGV завершила секьюритизацию своей валовой дебиторской задолженности по таймшерному финансированию на сумму 246 миллионов долларов с общей средневзвешенной процентной ставкой 4,30 процента и общей ставкой аванса 95%. Вырученные средства были в основном использованы для полной оплаты одного из трубопроводных объектов Компании, что составило в общей сложности 115 миллионов долларов, а также на общекорпоративные цели.
3 мая 2022 года HGV внесла изменения в условия Соглашения о таймшере, увеличив объем заимствований с 450 миллионов долларов до 750 миллионов долларов, что позволило Компании занимать до максимальной суммы до мая 2024 года и потребовало, чтобы все заимствованные суммы были погашены в 2025 году. Механизм таймшера обеспечен определенной дебиторской задолженностью по финансированию таймшера в кредитном портфеле Компании.
4 мая 2022 года Совет директоров HGV одобрил программу обратного выкупа акций, разрешающую Компании выкупить в общей сложности до 500 миллионов долларов своих обыкновенных акций, находящихся в обращении.
Общие Отсрочки и/или Признания строительства, Включенные в Результаты, представленные В Соответствии с Разделом 606 Кодификации Стандартов бухгалтерского учета (“ASC 606”)
Скорректированный показатель EBITDA Компании, отраженный в соответствии с ASC 606, включает признание и отсрочку доходов и связанных с ними расходов, связанных со строительством, как подробно описано в таблице T-1. В соответствии с ASC 606 Компания откладывает доходы и связанные с ними расходы, связанные с продажами в проектах, которые происходят в периоды, когда этот проект находится в стадии строительства, до периода завершения строительства.
T-1 |
||||||||||||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
||||||||||||||||||||
|
|
2022 |
|
|||||||||||||||||
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
Full
|
|
|||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of VOIs (deferrals) recognitions |
|
$ |
(42 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(42 |
) |
Cost of VOI sales (deferrals) recognitions(1) |
|
|
(13 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
Sales and marketing expense (deferrals) recognitions |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
Net construction (deferrals) recognitions(2) |
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(22 |
) |
|
|
|
|
|||||||||||||||||
Net income |
|
$ |
51 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
51 |
|
Interest expense |
|
|
33 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
Income tax expense |
|
|
20 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
Depreciation and amortization |
|
|
60 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60 |
|
Interest expense and depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
EBITDA |
|
|
164 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
164 |
|
Other gain, net |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Share-based compensation expense |
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
Impairment expense |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Acquisition and integration-related expense |
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Other adjustment items(3) |
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
Adjusted EBITDA |
|
$ |
202 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
T-1 |
||||||||||||||||||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
||||||||||||||||||||
(CONTINUED) |
||||||||||||||||||||
|
|
2021 |
|
|||||||||||||||||
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
Full
|
|
|||||
NET CONSTRUCTION DEFERRAL ACTIVITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of VOIs (deferrals) recognitions |
|
$ |
(32 |
) |
|
$ |
(42 |
) |
|
$ |
241 |
|
|
$ |
(34 |
) |
|
$ |
133 |
|
Cost of VOI sales (deferrals) recognitions(1) |
|
|
(10 |
) |
|
|
(13 |
) |
|
|
73 |
|
|
|
(12 |
) |
|
|
38 |
|
Sales and marketing expense (deferrals) recognitions |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
35 |
|
|
|
(5 |
) |
|
|
19 |
|
Net construction (deferrals) recognitions(2) |
|
$ |
(18 |
) |
|
$ |
(22 |
) |
|
$ |
133 |
|
|
$ |
(17 |
) |
|
$ |
76 |
|
Net (loss) income |
|
$ |
(7 |
) |
|
$ |
9 |
|
|
$ |
99 |
|
|
$ |
75 |
|
|
$ |
176 |
|
Interest expense |
|
|
15 |
|
|
|
17 |
|
|
|
42 |
|
|
|
31 |
|
|
|
105 |
|
Income tax (benefit) expense |
|
|
(6 |
) |
|
|
3 |
|
|
|
49 |
|
|
|
47 |
|
|
|
93 |
|
Depreciation and amortization |
|
|
11 |
|
|
|
12 |
|
|
|
48 |
|
|
|
55 |
|
|
|
126 |
|
Interest expense and depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
EBITDA |
|
|
14 |
|
|
|
41 |
|
|
|
238 |
|
|
|
208 |
|
|
|
501 |
|
Other loss, net |
|
|
1 |
|
|
|
1 |
|
|
|
20 |
|
|
|
4 |
|
|
|
26 |
|
Share-based compensation expense |
|
|
4 |
|
|
|
14 |
|
|
|
14 |
|
|
|
16 |
|
|
|
48 |
|
Impairment expense |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
Acquisition and integration-related expense |
|
|
15 |
|
|
|
14 |
|
|
|
54 |
|
|
|
23 |
|
|
|
106 |
|
Other adjustment items(3) |
|
|
7 |
|
|
|
— |
|
|
|
13 |
|
|
|
13 |
|
|
|
33 |
|
Adjusted EBITDA |
|
$ |
42 |
|
|
$ |
70 |
|
|
$ |
340 |
|
|
$ |
264 |
|
|
$ |
716 |
|
(1) |
Includes anticipated Costs of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired once construction is complete. |
|
(2) |
The table represents deferrals and recognitions of Sales of VOIs revenue and direct costs for properties under construction. |
|
(3)
|
Includes costs associated with restructuring, one-time charges and other non-cash items. This amount also includes the amortization of premiums resulting from purchase accounting for the periods subsequent to the Diamond acquisition. |
Конференц-связь
9 мая 2022 года в 11 часов утра (по восточному времени) Hilton Grand Vacations проведет селекторное совещание для обсуждения результатов первого квартала.
Чтобы получить доступ к прямой телеконференции, пожалуйста, наберите 1-877-407-0784 в США/Канаде (или +1-201-689-8560 по всему миру) примерно за 15 минут до начала телеконференции. Прямая трансляция также будет доступна, зайдя на веб-сайт HGV по связям с инвесторами по адресу https://investors.hgv.com .
В случае возникновения проблем со звуком во время разговора по бесплатному номеру участникам рекомендуется, чтобы доступ к вызову с помощью набора номера +1-201-689-8560 мог обойти источник проблем со звуком.
Повтор будет доступен в течение 24 часов после завершения телеконференции до 16 мая 2022 года. Чтобы получить доступ к воспроизведению, пожалуйста, наберите 1-844-512-2921 в США (+1-412-317-6671 на международном уровне), используя идентификатор # 13726009. Повтор веб-трансляции и стенограмма также будут доступны в течение 24 часов после прямого эфира по адресу https://investors.hgv.com .
Прогнозные Заявления
Настоящий пресс-релиз содержит прогнозные заявления по смыслу Раздела 27A Закона о ценных бумагах 1933 года с внесенными в него поправками и Раздела 21E Закона о ценных бумагах и биржах 1934 года с внесенными в него поправками. Прогнозные заявления отражают ожидания руководства относительно будущего HGV и основаны на убеждениях, ожиданиях, предположениях руководства и таких планах, оценках, прогнозах и другой информации, доступной руководству на момент, когда HGV делает такие заявления. Прогнозные заявления включают все заявления, которые не являются историческими фактами, могут быть идентифицированы с помощью такой терминологии, как слова “прогноз”, “полагать”, “ожидать”, “потенциал”, “цель”, “продолжается”, “может”, “будет”, “должен”, “может, ”стремится”, “приблизительно”, “проектирует”, ”прогнозирует“, ”намеревается“, ”планирует“, ”оценивает“, ”ожидает“, ”будущее“, ”руководство“, ”цель" или отрицательный вариант этих слов или других сопоставимых слов, хотя не все из них направлены вперед-заявления о поиске могут содержать такие слова. Прогнозные заявления, содержащиеся в этом пресс-релизе, включают заявления, касающиеся доходов, прибыли, налогов, движения денежных средств HGV и соответствующих финансовых и операционных показателей, а также ожиданий в отношении будущих операционных, финансовых и деловых показателей и других ожидаемых будущих событий и ожиданий, которые не являются историческими фактами.
HGV предупреждает вас, что прогнозные заявления связаны с известными и неизвестными рисками, неопределенностями и другими факторами, в том числе находящимися вне контроля HGV, которые могут привести к тому, что ее фактические результаты, показатели или достижения будут существенно отличаться от будущих результатов. Факторы, которые могут привести ТГВ фактические результаты могут существенно отличаться от тех, что предусмотрены его прогнозные заявления включают в себя: риск того, что ТГВ не могут понять, ожидаемой экономии, синергии, роста и другие преимущества от алмазного приобретения или о том, что расходы, связанные с бриллиантом приобретения больше, чем предполагалось; риски, которые возможны значительные расходы и затраты, связанные с обязательствами, связанных с алмазным бизнесом, которые были либо неизвестны, либо больше, чем предполагалось на момент приобретения алмазов; риски, что ТГВ не может быть успешной интеграции в алмазном бизнесе во всех аспектах ТГВ коммерческой деятельности и операциях, в том числе переоборудование и ребрендинг ромба свойства, продаж номеров и услуг на ТГВ-фирменная активов, или, что интеграция будет занять больше времени, чем предполагалось; потенциал увеличения транспортного средства; операционные риски в результате Алмаз приобретения и интеграции алмазного бизнеса; риски, связанные с нарушением управления внимание от транспортного средства текущие бизнес-операции из-за ее усилия по интеграции в Даймонд транспортного средства; любое неблагоприятное воздействие алмазной приобретения транспортного средства репутацию, отношения, результаты операционной деятельности и бизнеса в целом; продолжать воздействие COVID-19 пандемией на грузовиках бизнес, результаты операционной деятельности и финансовое состояние; степень и продолжительность воздействия COVID-19 пандемией в мировых экономических условий; ТГВ возможность удовлетворить свои потребности в ликвидности; риски, связанные с ТГВ задолженности, особенно в свете значительного объема задолженности транспортного средства, связанных с алмазной приобретения; бизнес-риски, тенденции развития рынка и конкуренции в таймшеров и индустрии гостеприимства; ТГВ способность успешно описи источника и рынка, продажи и финансы ВОИС; по умолчанию ставок на грузовиках финансирование дебиторской задолженности (в том числе на финансирование дебиторской задолженности, связанной с алмазами); репутация и грузовиках возможность получить доступ к Хилтон брендов и программ, в том числе риск нарушения или прекращения транспортного средства лицензионное соглашение с Hilton; интеграция Алмаза операции в рамках транспортного средства в целом бренд, который регулируется условиями ТГВ лицензионное соглашение с Hilton; соблюдение и внесение изменений в Соединенные Штаты и международные законы и нормативные акты, включая те, которые касаются борьбы с коррупцией и конфиденциальности; риски, связанные с ТГВ поглощений, создания совместных предприятий, и других партнерства; ТГВ зависимость от сторонних разработок, чтобы обеспечить только в момент инвентаризации; производительность транспортного средства информационно-технологических систем и транспортных средств в обеспечении безопасности данных; нормативные разбирательства или судебного процесса; достаточность трудовых ресурсов транспортного средства для удовлетворения своих потребностей бизнеса и деятельности; способности транспортного средства привлечения и удержания ключевых руководителей и сотрудников, имеющих навыки и способности для удовлетворения своих потребностей; и природные катаклизмы или неблагоприятные геополитические условия. Любой один или несколько из вышеперечисленных или других факторов могут негативно повлиять на деятельность HGV, выручку, операционную прибыль и маржу, ключевые операционные показатели бизнеса, финансовое состояние и/или кредитный рейтинг.
Для более подробного обсуждения этих факторов см. информацию под заголовками “Факторы риска” и “Обсуждение и анализ руководством финансового состояния и результатов деятельности” в последнем Годовом отчете HGV по форме 10-K, поданном в SEC 1 марта 2022 года, который может быть обновлен время от времени в квартальных отчетах HGV, текущих отчетах и других заявках, которые HGV подает в SEC.
Прогнозные заявления HGV действительны только на дату настоящего сообщения или на дату их публикации. HGV отказывается от каких-либо намерений или обязательств обновлять любое “прогнозное заявление”, сделанное в этом сообщении, чтобы отразить измененные предположения, возникновение непредвиденных событий или изменения будущих операционных результатов с течением времени.
Финансовые показатели, Не относящиеся к ОПБУ
В этом пресс-релизе Компания ссылается на определенные финансовые показатели, не относящиеся к GAAP, включая показатель EBITDA, Скорректированный показатель EBITDA, рентабельность по EBITDA, Скорректированную рентабельность по EBITDA, свободный денежный поток и скорректированный свободный денежный поток. Пожалуйста, ознакомьтесь с таблицами в этом пресс-релизе и “Определениями” для получения дополнительной информации и выверки таких финансовых показателей, не относящихся к GAAP.
О компании Hilton Grand Vacations Inc.
Hilton Grand Vacations Inc. (NYSE:HGV) признана ведущей мировой таймшерной компанией. Со штаб-квартирой в Орландо, штат Флорида, Hilton Grand Vacations разрабатывает, продает и управляет системой фирменных высококачественных курортов для отдыха в избранных местах отдыха. Являясь одним из 18 ведущих брендов Hilton, Hilton Grand Vacations имеет репутацию поставщика неизменно исключительных стандартов обслуживания и незабываемых впечатлений от отдыха для гостей и более 715 000 владельцев. Членство в Компании обеспечивает лучшие в своем классе программы, эксклюзивные услуги и максимальную гибкость для наших Членов по всему миру. Для получения дополнительной информации посетите www.hiltongrandvacations.com .
Hilton Grand Vacations inc. определения
Показатель EBITDA и скорректированный показатель EBITDA
Показатель EBITDA, представленный здесь, представляет собой финансовый показатель, который не признается в соответствии с ОПБУ США и отражает чистую прибыль (убыток) до вычета процентных расходов (за исключением долга без права регресса), резерва по налогу на прибыль и амортизации.
Скорректированный показатель EBITDA, представленный здесь, рассчитывается как показатель EBITDA, как определено ранее, дополнительно скорректированный для исключения определенных статей, включая, но не ограничиваясь, прибыли, убытки и расходы в связи с: (i) прочими прибылями, включая продажу активов и пересчет иностранной валюты; (ii) реструктуризация долга/выход на пенсию; (iii) неденежные убытки от обесценения; (iv) основанные на акциях и другие компенсационные расходы; и (v) прочие статьи, включая, но не ограничиваясь ими, расходы, связанные с приобретениями, реструктуризацией, амортизацией премий и скидок, полученных в результате учета покупок, и другие неденежные и единовременные расходы.
Рентабельность по EBITDA, представленная здесь, представляет собой показатель EBITDA, определенный ранее, деленный на общую выручку. Скорректированная рентабельность по EBITDA, представленная здесь, представляет собой скорректированную EBITDA, как определено ранее, деленную на общую выручку.
Показатель EBITDA и скорректированный показатель EBITDA не признаются в соответствии с ОПБУ США и не должны рассматриваться в качестве альтернативы чистой прибыли (убытку) или другим показателям финансовых показателей или ликвидности, полученным в соответствии с ОПБУ США. Кроме того, наши определения EBITDA и Скорректированной EBITDA могут быть несопоставимы с аналогичными показателями других компаний.
HGV считает, что показатель EBITDA и скорректированный показатель EBITDA предоставляют инвесторам полезную информацию о нас, нашем финансовом состоянии и результатах деятельности по следующим причинам: (i) Показатель EBITDA и скорректированный показатель EBITDA входят в число показателей, используемых нашим руководством для оценки наших операционных показателей и принятия повседневных операционных решений; и (ii) Показатель EBITDA и скорректированный показатель EBITDA часто используются аналитиками по ценным бумагам, инвесторами и другими заинтересованными сторонами в качестве общего показателя эффективности для сравнения результатов или оценки оценок между компаниями в нашей отрасли. Показатель EBITDA и скорректированный показатель EBITDA имеют ограничения в качестве аналитических инструментов и не должны рассматриваться ни изолированно, ни в качестве замены чистой прибыли (убытка), движения денежных средств или других методов анализа наших результатов, представленных в соответствии с ОПБУ США. Некоторые из этих ограничений заключаются в следующем:
Из-за этих ограничений показатель EBITDA и скорректированный показатель EBITDA не следует рассматривать как дискреционные денежные средства, доступные нам для реинвестирования в развитие нашего бизнеса, или как показатели денежных средств, которые будут доступны нам для выполнения наших обязательств.
Свободный Денежный поток и Скорректированный Свободный Денежный поток
Свободный денежный поток представляет собой денежные средства от операционной деятельности за вычетом капитальных затрат, не связанных с запасами.
Скорректированный свободный денежный поток представляет собой свободный денежный поток, дополнительно скорректированный с целью исключения чистой задолженности без права регресса и других единовременных корректировок, включая, но не ограничиваясь, расходы, связанные с приобретениями.
Мы рассматриваем Свободный денежный поток и Скорректированный Свободный денежный поток как показатели ликвидности, не признанные в соответствии с ОПБУ США, которые предоставляют полезную информацию как руководству, так и инвесторам о сумме денежных средств, полученных в результате операционной деятельности, которые могут быть использованы для инвестиционной и финансовой деятельности, включая стратегические возможности и обслуживание долга. Мы не считаем, что эти показатели, не относящиеся к GAAP, отражают то, как мы будем использовать избыточные денежные средства.
Показатели недвижимости
Продажи по контракту представляют собой общее количество продуктов VOI (с оплатой за обслуживание, точно в срок, разработанных и основанных на баллах) по соглашениям о покупке, подписанным в течение периода, когда мы получили первоначальный взнос в размере не менее 10 процентов от цены контракта. Продажи по контракту отличаются от выручки от продаж VOIs за вычетом, которую мы отражаем в наших сокращенных консолидированных отчетах о прибылях и убытках, из-за требований к признанию выручки, а также корректировок на стимулы. Мы считаем контрактные продажи важным операционным показателем, поскольку они отражают темпы продаж в нашем бизнесе и используются для управления эффективностью торговой организации. В то время как представление продаж по контрактам на комбинированной основе (плата за обслуживание, точно в срок, разработано и на основе баллов) является наиболее подходящим для целей операционной метрики, дополнительная информация о разделении продаж по контрактам, включенная в “-Недвижимость” ниже, является полезно для инвесторов, которые заинтересованы в базовых структурах капитала проектов Компании. См. Примечание 2: Краткое изложение основных принципов учетной политики в нашей консолидированной финансовой отчетности, включенное в пункт 8 нашего Годового отчета по форме 10-K за год, закончившийся 31 декабря 2021 года, для получения дополнительной информации о продажах VOIs, нетто.
Разработанные запасы относятся к запасам VOI, полученным из проектов, которые разрабатывает Компания.
Инвентарь с оплатой за обслуживание относится к инвентарю VOI, который HGV продает и управляет от имени сторонних разработчиков.
Запасы "Точно в срок" относятся к запасам VOI, полученным в основном в результате транзакций, которые предназначены для тесной увязки сроков приобретения с продажей HGV этих запасов покупателям.
Инвентаризация на основе баллов относится к продажам VOI, которые подкреплены физической недвижимостью, внесенной в траст.
NOG или Чистый прирост владельцев представляет собой изменение членства по сравнению с предыдущим годом.
Прибыль от недвижимости представляет собой выручку от продаж за вычетом затрат на продажу VOI, а также затрат на продажу и маркетинг, за вычетом выручки от маркетинга. Маржа прибыли от недвижимости рассчитывается путем деления прибыли от недвижимости на выручку от продаж. Компания считает это важным операционным показателем, поскольку он измеряет эффективность наших расходов на продажи и маркетинг, а также управление затратами на складские запасы.
Выручка от продаж представляет собой продажу VOI, чистых комиссионных и комиссионных за обслуживание, а также комиссионных за бренд, полученных от продажи интервалов с оплатой за обслуживание.
Комиссионные за обслуживание и сборы за бренд, нетто представляют собой комиссионные и сборы за бренд, полученные от продажи интервалов с оплатой за обслуживание, за вычетом соответствующих резервов.
Турпоток представляет собой количество презентаций по продажам, проведенных в центрах продаж HGV за указанный период.
Объем продаж на одного гостя (“VPG”) представляет собой объем продаж, приходящихся на туры в местах продаж HGV, и рассчитывается путем деления продаж по контракту, исключая продажи по телефону, на турпоток. Компания считает VPG важным операционным показателем, поскольку он измеряет эффективность процесса продаж HGV, объединяя среднюю цену сделки со скоростью закрытия.
Hilton Grand Vacations INC. |
|
FINANCIAL TABLES |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
T-2 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
T-3 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
T-4 |
FREE CASH FLOWS RECONCILIATION |
T-5 |
SEGMENT REVENUE RECONCILIATION |
T-6 |
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME (LOSS) |
T-7 |
REAL ESTATE SALES PROFIT DETAIL SCHEDULE |
T-8 |
CONTRACT SALES MIX BY TYPE SCHEDULE |
T-9 |
FINANCING PROFIT DETAIL SCHEDULE |
T-10 |
RESORT AND CLUB PROFIT DETAIL SCHEDULE |
T-11 |
RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE |
T-12 |
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA |
T-13 |
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA |
T-14 |
|
|
T-2 |
||||||||
Hilton Grand Vacations INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in millions, except share data) |
||||||||
|
|
March 31, |
|
|
December 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
514 |
|
|
$ |
432 |
|
Restricted cash |
|
|
303 |
|
|
|
263 |
|
Accounts receivable, net |
|
|
447 |
|
|
|
302 |
|
Timeshare financing receivables, net |
|
|
1,718 |
|
|
|
1,747 |
|
Inventory |
|
|
1,215 |
|
|
|
1,240 |
|
Property and equipment, net |
|
|
754 |
|
|
|
756 |
|
Operating lease right-of-use assets, net |
|
|
65 |
|
|
|
70 |
|
Investments in unconsolidated affiliates |
|
|
62 |
|
|
|
59 |
|
Goodwill |
|
|
1,351 |
|
|
|
1,377 |
|
Intangible assets, net |
|
|
1,400 |
|
|
|
1,441 |
|
Land and infrastructure held for sale |
|
|
41 |
|
|
|
41 |
|
Other assets |
|
|
572 |
|
|
|
280 |
|
TOTAL ASSETS |
|
$ |
8,442 |
|
|
$ |
8,008 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Accounts payable, accrued expenses and other |
|
$ |
964 |
|
|
$ |
673 |
|
Advanced deposits |
|
|
126 |
|
|
|
112 |
|
Debt, net |
|
|
2,913 |
|
|
|
2,913 |
|
Non-recourse debt, net |
|
|
1,203 |
|
|
|
1,328 |
|
Operating lease liabilities |
|
|
85 |
|
|
|
87 |
|
Deferred revenues |
|
|
395 |
|
|
|
237 |
|
Deferred income tax liabilities |
|
|
691 |
|
|
|
670 |
|
Total liabilities |
|
|
6,377 |
|
|
|
6,020 |
|
|
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of March 31, 2022 and December 31, 2021 |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 120,258,347 and 119,904,001 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
1,634 |
|
|
|
1,630 |
|
Accumulated retained earnings |
|
|
408 |
|
|
|
357 |
|
Accumulated other comprehensive income |
|
|
22 |
|
|
|
— |
|
Total equity |
|
|
2,065 |
|
|
|
1,988 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
8,442 |
|
|
$ |
8,008 |
|
T-3 |
||||||||
Hilton Grand Vacations INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(in millions, except share data) |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Revenues |
|
|
|
|
|
|
||
Sales of VOIs, net |
|
$ |
269 |
|
|
$ |
33 |
|
Sales, marketing, brand and other fees |
|
|
119 |
|
|
|
53 |
|
Financing |
|
|
64 |
|
|
|
37 |
|
Resort and club management |
|
|
125 |
|
|
|
45 |
|
Rental and ancillary services |
|
|
136 |
|
|
|
32 |
|
Cost reimbursements |
|
|
66 |
|
|
|
35 |
|
Total revenues |
|
|
779 |
|
|
|
235 |
|
Expenses |
|
|
|
|
|
|
||
Cost of VOI sales |
|
|
40 |
|
|
|
3 |
|
Sales and marketing |
|
|
243 |
|
|
|
82 |
|
Financing |
|
|
19 |
|
|
|
13 |
|
Resort and club management |
|
|
36 |
|
|
|
8 |
|
Rental and ancillary services |
|
|
132 |
|
|
|
31 |
|
General and administrative |
|
|
42 |
|
|
|
21 |
|
Acquisition and integration-related expense |
|
|
13 |
|
|
|
15 |
|
Depreciation and amortization |
|
|
60 |
|
|
|
11 |
|
License fee expense |
|
|
25 |
|
|
|
14 |
|
Impairment expense |
|
|
3 |
|
|
|
1 |
|
Cost reimbursements |
|
|
66 |
|
|
|
35 |
|
Total operating expenses |
|
|
679 |
|
|
|
234 |
|
Interest expense |
|
|
(33 |
) |
|
|
(15 |
) |
Equity in earnings from unconsolidated affiliates |
|
|
3 |
|
|
|
2 |
|
Other gain (loss), net |
|
|
1 |
|
|
|
(1 |
) |
Income (loss) before income taxes |
|
|
71 |
|
|
|
(13 |
) |
Income tax (expense) benefit |
|
|
(20 |
) |
|
|
6 |
|
Net income (loss) |
|
$ |
51 |
|
|
$ |
(7 |
) |
Earnings (loss) per share(1): |
|
|
|
|
|
|
||
Basic |
|
$ |
0.42 |
|
|
$ |
(0.08 |
) |
Diluted |
|
$ |
0.42 |
|
|
$ |
(0.08 |
) |
Weighted average shares outstanding(2) |
|
|
|
|
|
|
||
Basic |
|
|
119,981 |
|
|
|
85,308 |
|
Diluted |
|
|
121,845 |
|
|
|
85,308 |
|
(1) Earnings (loss) per share is calculated based on unrounded dollars. |
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(2) Presented in thousands. |
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T-4 |
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Hilton Grand Vacations INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in millions) |
||||||||
|
|
|
|
|||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Operating Activities |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
51 |
|
|
$ |
(7 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
60 |
|
|
|
11 |
|
Amortization of deferred financing costs, acquisition premiums and other |
|
|
12 |
|
|
|
6 |
|
Provision for financing receivables losses |
|
|
31 |
|
|
|
16 |
|
Impairment expense |
|
|
3 |
|
|
|
1 |
|
Other loss, net |
|
|
— |
|
|
|
1 |
|
Share-based compensation |
|
|
11 |
|
|
|
4 |
|
Deferred income tax benefit |
|
|
— |
|
|
|
(21 |
) |
Equity in earnings from unconsolidated affiliates |
|
|
(3 |
) |
|
|
(2 |
) |
Net changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(107 |
) |
|
|
8 |
|
Timeshare financing receivables, net |
|
|
(11 |
) |
|
|
19 |
|
Inventory |
|
|
26 |
|
|
|
(14 |
) |
Purchases and development of real estate for future conversion to inventory |
|
|
(1 |
) |
|
|
(6 |
) |
Other assets |
|
|
(264 |
) |
|
|
(27 |
) |
Accounts payable, accrued expenses and other |
|
|
290 |
|
|
|
2 |
|
Advanced deposits |
|
|
14 |
|
|
|
(3 |
) |
Deferred revenues |
|
|
158 |
|
|
|
74 |
|
Net cash provided by operating activities |
|
|
270 |
|
|
|
62 |
|
Investing Activities |
|
|
|
|
|
|
||
Capital expenditures for property and equipment |
|
|
(8 |
) |
|
|
(1 |
) |
Software capitalization costs |
|
|
(6 |
) |
|
|
(4 |
) |
Net cash used in investing activities |
|
|
(14 |
) |
|
|
(5 |
) |
Financing Activities |
|
|
|
|
|
|
||
Issuance of non-recourse debt |
|
|
155 |
|
|
|
— |
|
Repayment of debt |
|
|
(3 |
) |
|
|
(2 |
) |
Repayment of non-recourse debt |
|
|
(277 |
) |
|
|
(69 |
) |
Debt issuance costs and discounts |
|
|
— |
|
|
|
(3 |
) |
Payment of withholding taxes on vesting of restricted stock units |
|
|
(8 |
) |
|
|
(5 |
) |
Proceeds from stock option exercises |
|
|
1 |
|
|
|
2 |
|
Other financing activity |
|
|
(1 |
) |
|
|
(1 |
) |
Net cash used in financing activities |
|
|
(133 |
) |
|
|
(78 |
) |
Effect of changes in exchange rates on cash, cash equivalents & restricted cash |
|
|
(1 |
) |
|
|
— |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
122 |
|
|
|
(21 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
695 |
|
|
|
526 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
817 |
|
|
$ |
505 |
|
T-5 |
||||||||
Hilton Grand Vacations INC. |
||||||||
FREE CASH FLOW RECONCILIATION |
||||||||
(in millions) |
||||||||
|
|
|
|
|||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net cash provided by operating activities |
|
$ |
270 |
|
|
$ |
62 |
|
Capital expenditures for property and equipment |
|
|
(8 |
) |
|
|
(1 |
) |
Software capitalization costs |
|
|
(6 |
) |
|
|
(4 |
) |
Free Cash Flow |
|
$ |
256 |
|
|
$ |
57 |
|
Non-recourse debt activity, net |
|
|
(122 |
) |
|
|
(69 |
) |
Acquisition and integration-related expense |
|
|
12 |
|
|
|
15 |
|
Other adjustment items(1) |
|
|
13 |
|
|
|
— |
|
Adjusted Free Cash Flow |
|
$ |
159 |
|
|
$ |
3 |
|
(1) Includes capitalized acquisition and integration-related costs for the three months ended March 31, 2022. |
||||||||
T-6 |
||||||||
Hilton Grand Vacations INC. |
||||||||
SEGMENT REVENUE RECONCILIATION |
||||||||
(in millions) |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Revenues: |
|
|
|
|
|
|
||
Real estate sales and financing |
|
$ |
452 |
|
|
$ |
123 |
|
Resort operations and club management |
|
|
268 |
|
|
|
80 |
|
Total segment revenues |
|
|
720 |
|
|
|
203 |
|
Cost reimbursements |
|
|
66 |
|
|
|
35 |
|
Intersegment eliminations |
|
|
(7 |
) |
|
|
(3 |
) |
Total revenues |
|
$ |
779 |
|
|
$ |
235 |
|
T-7 |
|||||||
Hilton Grand Vacations INC. |
|||||||
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME (LOSS) |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Net income (loss) |
$ |
51 |
|
|
$ |
(7 |
) |
Interest expense |
|
33 |
|
|
|
15 |
|
Income tax expense (benefit) |
|
20 |
|
|
|
(6 |
) |
Depreciation and amortization |
|
60 |
|
|
|
11 |
|
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates |
|
— |
|
|
|
1 |
|
EBITDA |
|
164 |
|
|
|
14 |
|
Other (gain) loss, net |
|
(1 |
) |
|
|
1 |
|
Share-based compensation expense |
|
11 |
|
|
|
4 |
|
Impairment expense |
|
3 |
|
|
|
1 |
|
Acquisition and integration-related expense |
|
13 |
|
|
|
15 |
|
Other adjustment items(1) |
|
12 |
|
|
|
7 |
|
Adjusted EBITDA |
$ |
202 |
|
|
$ |
42 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
Segment Adjusted EBITDA: |
|
|
|
|
|
||
Real estate sales and financing(2) |
$ |
153 |
|
|
$ |
27 |
|
Resort operations and club management(2) |
|
101 |
|
|
|
42 |
|
Adjustments: |
|
|
|
|
|
||
Adjusted EBITDA from unconsolidated affiliates |
|
3 |
|
|
|
3 |
|
License fee expense |
|
(25 |
) |
|
|
(14 |
) |
General and administrative(3) |
|
(30 |
) |
|
|
(16 |
) |
Adjusted EBITDA |
$ |
202 |
|
|
$ |
42 |
|
Adjusted EBITDA profit margin |
|
25.9 |
% |
|
|
17.9 |
% |
EBITDA profit margin |
|
21.1 |
% |
|
|
6.0 |
% |
(1) |
Includes costs associated with restructuring, one-time charges and other non-cash items. For the three months ended March 31, 2022, this amount also includes the amortization of premiums resulting from the Diamond Acquisition. |
|
(2) |
Includes intersegment transactions, share-based compensation, depreciation and other adjustments attributable to the segments. |
|
(3) |
Excludes segment related share-based compensation, depreciation and other adjustment items. |
T-8 |
|||||||
Hilton Grand Vacations INC. |
|||||||
REAL ESTATE SALES PROFIT DETAIL SCHEDULE |
|||||||
(in millions, except Tour Flow and VPG) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Tour flow |
|
98,601 |
|
|
|
27,948 |
|
VPG |
$ |
4,849 |
|
|
$ |
4,647 |
|
Owned contract sales mix |
|
74.7 |
% |
|
|
59.7 |
% |
Fee-for-service contract sales mix |
|
25.3 |
% |
|
|
40.3 |
% |
|
|
|
|
|
|
||
Contract sales |
$ |
509 |
|
|
$ |
139 |
|
Adjustments: |
|
|
|
|
|
||
Fee-for-service sales(1) |
|
(129 |
) |
|
|
(56 |
) |
Provision for financing receivables losses |
|
(31 |
) |
|
|
(16 |
) |
Reportability and other: |
|
|
|
|
|
||
Net (deferral) recognition of sales of VOIs under construction(2) |
|
(42 |
) |
|
|
(32 |
) |
Fee-for-service sale upgrades, net |
|
4 |
|
|
|
2 |
|
Other(3) |
|
(42 |
) |
|
|
(4 |
) |
Sales of VOIs, net |
$ |
269 |
|
|
$ |
33 |
|
Plus: |
|
|
|
|
|
||
Fee-for-service commissions and brand fees, net |
|
69 |
|
|
|
32 |
|
Sales revenue |
|
338 |
|
|
|
65 |
|
Less: |
|
|
|
|
|
||
Cost of VOI sales |
|
40 |
|
|
|
3 |
|
Sales and marketing expense, net(4) |
|
186 |
|
|
|
59 |
|
Real estate profit (loss) |
$ |
112 |
|
|
$ |
3 |
|
Real estate profit margin |
|
33.1 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
||
Reconciliation of fee-for-service commissions: |
|
|
|
|
|
||
Sales, marketing, brand and other fees |
$ |
119 |
|
|
$ |
53 |
|
Less: |
|
|
|
|
|
||
Marketing revenue and other fees |
|
50 |
|
|
|
21 |
|
Fee-for-service commissions and brand fees, net |
|
69 |
|
|
|
32 |
|
(1) |
Represents contract sales from fee-for-service properties on which we earn commissions and brand fees. |
|
(2) |
Represents the net impact of deferred revenues related to the Sales of VOIs under construction that are recognized when construction is complete. |
|
(3) |
Includes adjustments for revenue recognition, including amounts in rescission and sales incentives. |
|
(4) |
Includes revenue recognized through our marketing programs for existing owners and prospective first-time buyers and revenue associated with sales incentives and document compliance. |
T-9 |
||||||||
Hilton Grand Vacations INC. |
||||||||
CONTRACT SALES MIX BY TYPE SCHEDULE |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Just-In-Time Contract Sales Mix |
|
|
14 |
% |
|
|
28 |
% |
Fee-For-Service Contract Sales Mix |
|
|
25 |
% |
|
|
40 |
% |
Total Capital-Efficient Contract Sales Mix(1) |
|
|
39 |
% |
|
|
68 |
% |
(1) Diamond contract sales are related to developed properties and therefore are not included in capital efficient contract sales. |
||||||||
T-10 |
|||||||
Hilton Grand Vacations INC. |
|||||||
FINANCING PROFIT DETAIL SCHEDULE |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Interest income(1) |
$ |
55 |
|
|
$ |
31 |
|
Other financing revenue |
|
9 |
|
|
|
6 |
|
Financing revenue |
|
64 |
|
|
|
37 |
|
Consumer financing interest expense(2) |
|
7 |
|
|
|
7 |
|
Other financing expense |
|
12 |
|
|
|
6 |
|
Financing expense |
|
19 |
|
|
|
13 |
|
Financing profit |
$ |
45 |
|
|
$ |
24 |
|
Financing profit margin |
|
70.3 |
% |
|
|
64.9 |
% |
(1) |
For the three months ended March 31, 2022, this amount includes $9 million of amortization of the premium related to the acquired timeshare financing receivables resulting from the Diamond Acquisition. |
|
(2) |
For the three months ended March 31, 2022, this amount includes $3 million of amortization of the premium related to the acquired non-recourse debt resulting from the Diamond Acquisition. |
T-11 |
|||||||
Hilton Grand Vacations INC. |
|||||||
RESORT AND CLUB PROFIT DETAIL SCHEDULE |
|||||||
(in millions, except for Members and Net Owner Growth) |
|||||||
|
Twelve months ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Total members |
|
502,304 |
|
|
|
327,880 |
|
Legacy-HGV Net Owner Growth (NOG)(1) |
|
6,728 |
|
|
|
(337 |
) |
Legacy-HGV Net Owner Growth % (NOG%)(1) |
|
2.1 |
% |
|
|
(0.1 |
)% |
(1) NOG is a twelve-trailing-month concept and thus not calculated for Diamond under HGV's ownership. |
|
||||||
|
|
|
|
|
|
||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Club management revenue |
$ |
51 |
|
|
$ |
27 |
|
Resort management revenue |
|
74 |
|
|
|
18 |
|
Resort and club management revenues |
|
125 |
|
|
|
45 |
|
Club management expense |
|
10 |
|
|
|
5 |
|
Resort management expense |
|
26 |
|
|
|
3 |
|
Resort and club management expenses |
|
36 |
|
|
|
8 |
|
Resort and club management profit |
$ |
89 |
|
|
$ |
37 |
|
Resort and club management profit margin |
|
71.2 |
% |
|
|
82.2 |
% |
T-12 |
|||||||
Hilton Grand Vacations INC. |
|||||||
RENTAL AND ANCILLARY PROFIT DETAIL SCHEDULE |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Rental revenues |
$ |
124 |
|
|
$ |
30 |
|
Ancillary services revenues |
|
12 |
|
|
|
2 |
|
Rental and ancillary services revenues |
|
136 |
|
|
|
32 |
|
Rental expenses |
|
122 |
|
|
|
29 |
|
Ancillary services expense |
|
10 |
|
|
|
2 |
|
Rental and ancillary services expenses |
|
132 |
|
|
|
31 |
|
Rental and ancillary services profit |
$ |
4 |
|
|
$ |
1 |
|
Rental and ancillary services profit margin |
|
2.9 |
% |
|
|
3.1 |
% |
T-13 |
|||||||
Hilton Grand Vacations INC. |
|||||||
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Sales of VOIs, net |
$ |
269 |
|
|
$ |
33 |
|
Sales, marketing, brand and other fees |
|
119 |
|
|
|
53 |
|
Financing revenue |
|
64 |
|
|
|
37 |
|
Real estate sales and financing segment revenues |
|
452 |
|
|
|
123 |
|
Cost of VOI sales |
|
(40 |
) |
|
|
(3 |
) |
Sales and marketing expense, net |
|
(243 |
) |
|
|
(82 |
) |
Financing expense |
|
(19 |
) |
|
|
(13 |
) |
Marketing package stays |
|
(7 |
) |
|
|
(3 |
) |
Share-based compensation |
|
3 |
|
|
|
2 |
|
Other adjustment items |
|
7 |
|
|
|
3 |
|
Real estate sales and financing segment adjusted EBITDA |
$ |
153 |
|
|
$ |
27 |
|
Real estate sales and financing segment adjusted EBITDA profit margin |
|
33.8 |
% |
|
|
22.0 |
% |
T-14 |
|||||||
Hilton Grand Vacations INC. |
|||||||
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA |
|||||||
(in millions) |
|||||||
|
Three Months Ended March 31, |
|
|||||
|
2022 |
|
|
2021 |
|
||
Resort and club management revenues |
$ |
125 |
|
|
$ |
45 |
|
Rental and ancillary services |
|
136 |
|
|
|
32 |
|
Marketing package stays |
|
7 |
|
|
|
3 |
|
Resort and club management segment revenue |
|
268 |
|
|
|
80 |
|
Resort and club management expenses |
|
(36 |
) |
|
|
(8 |
) |
Rental and ancillary services expenses |
|
(132 |
) |
|
|
(31 |
) |
Share-based compensation |
|
1 |
|
|
|
— |
|
Other adjustment items |
|
— |
|
|
|
1 |
|
Resort and club segment adjusted EBITDA |
$ |
101 |
|
|
$ |
42 |
|
Resort and club management segment adjusted EBITDA profit margin |
|
37.7 |
% |
|
|
52.5 |
% |
