NOTES
The following tables present "as reported" historical quarterly results of Hilton Grand Vacations Inc. (the "Company," "we," "us," and "our") since 2015 in conjunction with certain supplemental information illustrating the impact of net construction deferral and recognition activity on such historical results.
The purpose of this financial presentation is to provide the information needed by the users of our financial statements to assess the impact of the Company's construction activity on our reported quarterly results, including net income, Adjusted EBITDA, segment Adjusted EBITDA, real estate sales and finance segment Adjusted EBITDA, and real estate margin, under both the current and prior accounting approaches.
The financial results will be updated quarterly and posted concurrently with our quarterly earnings release on our investor relations website: https://investors.hgv.com.
Basis of Presentation
On January 1, 2018, Hilton Grand Vacations Inc. (the "Company," "we," or "our") adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, commonly referred to as, Accounting Standards Codification Topic 606 ("ASC 606"). We adopted ASC 606 using the modified retrospective method, whereby the cumulative effect of applying the new standard was recognized at the date of initial application, with a corresponding adjustment to our opening balance of retained earnings. This approach applies to all contracts as of January 1, 2018. The new standard replaces all current U.S. Generally Accepted Accounting Principle guidance and eliminates all industry-specific guidance on this topic.
For reporting periods after January 1, 2018, the financial results of the Company reflect the application of the current accounting guidance under ASC 606. Conversely, the financial results for all periods prior to January 1, 2018, as reported in the Company's financial statements, were prepared under the previous accounting guidance of ASC 605, Revenue Recognition ("ASC 605") and ASC 978-605, Real Estate - Time-Sharing Activities, Revenue Recognition.
For certain tables in this presentation, we provided supplemental information depicting the impact of net deferral and recognition activity related to the Company's projects under construction. For the calendar years 2015-2017, these impacts reflect revenues and direct expenses recognized or deferred under the previous accounting guidance using the percentage of completion method. For periods commencing in and after 2018, these impacts reflect revenues and direct expenses recognized or deferred under ASC 606. In assessing any impact to net income, we do not believe that these net deferrals would affect our effective tax rate.
In this presentation, we reclassified certain prior period figures in the consolidated financial statements, as necessary to conform to the current period presentation. In connection with the adoption of ASC 606, we began to defer all revenues and direct expenses relating to sales of vacation ownership interests in properties under construction until construction is completed. In addition, we also reversed recognition of revenues and expenses related to one of our properties, The Residences, with respect to sales that occurred prior to 2018, which had been recognized on a percentage of completion basis under the previous accounting guidance, as the project was not complete as of the implementation of ASC 606. In the second quarter of 2018, upon completion of The Residences, the Company recognized all deferred revenues and expenses related to: (i) sales made to-date in 2018, (ii) sales made prior to 2018, where the revenues and expenses had been previously recognized under percentage of completion and reversed upon adoption of ASC 606, and (iii) sales made prior to 2018, where the revenues and expenses had not yet been recognized under percentage of completion or ASC 606. In 2019, certain Sales of VOIs and the related direct costs of projects under construction were deferred, leading to a contraction of profit margins, as the indirect marketing and selling costs associated with these sales were recognized as incurred in the current period. This contrasts with 2018 where net recognitions of certain Sales of VOIs occurred, leading to margin expansion during that period, with the indirect costs having been recognized in prior periods.
Basis of Presentation - update for period ended June 30, 2023
For certain tables in this presentation, we have modified the presentation in an effort to increase clarity over Sales and marketing expense, net. During the quarter ended June 30, 2023, the Company made a change to the definition and subsequently the calculation of Sales and marketing expense, net which is shown within the Real Estate business unit, specifically Table T-8 of our earnings release. This adjustment was implemented in the quarter ended June 30, 2023 effective for all future periods, including updated associated prior-year period disclosures. Within this presentation, we have applied the adjustment starting in the third quarter of fiscal year 2021, the first reporting period post the close of the Diamond Acquisition. When combined with additional reconciliation tables provided in our 10-Q filing and earnings release, this change will enable investors to utilize the "Profit (loss)" metric of the four business units reported in the Company's press release to reconcile the Company's consolidated metrics, including EBITDA and Net Income. This change does not impact any of the metrics reported on the Company's condensed consolidated Income Statement, Balance Sheet or Statement of Cash Flows. This change only affects the supplemental Real Estate business unit disclosures provided in Table T-8 of the Company's earnings press release. Specifically, Sales and marketing expense, net, Real estate expense, Real estate profit (loss), and Real estate profit margin lines of Table T-8.
These tables should be viewed in conjunction with our Quarterly and Annual Report on Form 10-Q and Form 10-K filed with the Securities and Exchange Commission as they provide additional financial results, transaction details and other terms used.
Guidance
HILTON GRAND VACATIONS INC.
GUIDANCE
Q1-2024 Outlook
The Company is reiterating its guidance for the full year 2024 Adjusted EBITDA excluding deferrals and recognitions to a range of $1.2 billion to $1.26 billion.
Income Statement
HILTON GRAND VACATIONS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
2015 2016 * SPIN-OFF FROM HILTON WORLDWIDE* * SPIN-OFF FROM HILTON WORLDWIDE* 2017 2018 2019 2020 2021 *DIAMOND ACQUISITION * *DIAMOND ACQUISITION * 2021(3) 2022 2023 *BLUEGREEN ACQUISITION * *BLUEGREEN ACQUISITION * 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED
Revenues
Sales of VOIs, net $ 94 $ 136 $ 125 $ 137 $ 492 $ 115 $ 114 $ 130 $ 149 $ 508 $ 118 $ 143 $ 145 $ 142 $ 548 $ 78 $ 250 $ 99 $ 307 $ 734 $ 125 $ 120 $ 138 $ 126 $ 509 $ 56 $ - $ 24 $ 28 $ 108 $ 33 $ 76 $ 488 $ 286 $ 883 $ 269 $ 361 $ 500 $ 361 $ 1,491 $ 318 $ 355 $ 367 $ 376 $ 1,416 $ 438 $ - $ - $ - $ 438
Sales, marketing, brand and other fees 140 94 118 105 457 118 128 136 117 499 130 144 127 143 544 125 146 152 147 570 141 145 143 144 573 106 13 52 50 221 53 81 118 133 385 119 161 177 163 620 158 173 170 133 634 145 - - - 145
Financing 31 31 33 32 127 32 34 34 34 134 35 36 38 38 147 38 39 40 41 158 41 43 43 43 170 44 43 40 38 165 37 37 53 56 183 64 64 68 71 267 74 76 75 82 307 104 - - - 104
Resort and club management 27 27 31 40 125 31 34 33 45 143 36 35 37 50 158 39 37 40 56 172 42 43 45 61 191 44 39 39 44 166 45 48 99 148 340 125 124 130 155 534 131 133 138 167 569 166 - - - 166
Rental and ancillary services 42 44 39 39 164 45 49 41 38 173 46 47 45 41 179 51 53 60 54 218 59 60 54 54 227 52 5 20 20 97 32 54 112 144 342 136 171 159 160 626 158 173 171 164 666 181 - - - 181
Cost reimbursements 27 28 27 28 110 29 32 33 32 126 34 34 34 33 135 36 38 36 37 147 42 43 43 40 168 49 23 33 32 137 35 38 58 71 202 66 67 82 82 297 95 97 97 97 386 122 - - - 122
Total revenues 361 360 373 381 1,475 370 391 407 415 1,583 399 439 426 447 1,711 367 563 427 642 1,999 450 454 466 468 1,838 351 123 208 212 894 235 334 928 838 2,335 779 948 1,116 992 3,835 934 1,007 1,018 1,019 3,978 1,156 - - - 1,156
Expenses
Cost of VOI sales 61 43 40 29 173 38 28 44 42 152 33 34 40 41 148 19 61 29 101 210 36 32 24 35 127 14 (1) 8 7 28 3 21 130 59 213 40 65 102 67 274 50 48 43 53 194 48 - - - 48
Sales and marketing 132 128 135 146 541 135 151 157 162 605 152 169 171 171 663 161 193 174 200 728 170 186 188 175 719 157 61 79 84 381 82 116 234 221 653 243 284 322 297 1,146 301 336 334 310 1,281 401 - - - 401
Financing 8 8 8 8 32 8 8 8 8 32 10 11 11 11 43 11 12 12 14 49 13 12 14 14 53 13 13 13 14 53 13 11 19 22 65 19 22 25 37 103 24 24 25 26 99 39 - - - 39
Resort and club management 7 8 8 9 32 8 8 9 11 36 10 10 12 11 43 11 11 11 14 47 11 12 11 12 46 12 6 9 9 36 8 11 26 35 80 36 37 45 43 161 42 44 43 48 177 54 - - - 54
Rental and ancillary services 27 28 28 30 113 26 30 30 27 113 27 31 30 34 122 28 30 37 38 133 35 37 36 39 147 37 24 24 22 107 31 36 84 116 267 132 150 144 153 579 152 154 154 152 612 173 - - - 173
General and administrative 11 19 11 16 57 16 21 24 31 92 23 29 23 29 104 24 30 32 34 120 27 30 30 31 118 21 22 22 27 92 21 31 41 59 151 42 66 50 54 212 42 48 40 64 194 45 - - - 45
Acquisition and integration-related expense - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 15 13 54 23 106 13 17 19 18 67 17 13 12 26 68 109 - - - 109
Depreciation and amortization 5 6 5 6 22 5 6 6 7 24 7 7 7 8 29 7 8 8 10 33 8 12 12 12 44 12 11 11 11 45 11 12 48 55 126 60 64 57 63 244 51 52 53 57 213 62 - - - 62
License fee expense 18 18 19 19 74 19 20 22 19 80 20 23 22 22 87 23 25 25 25 98 23 26 26 26 101 22 6 11 12 51 14 19 24 23 80 25 32 33 34 124 30 34 37 37 138 35 - - - 35
Impairment (reversal) expense - - - - - - - - - - - - - - - - - - - - - - - - - - - - 209 209 1 - 1 - 2 3 (3) - 17 17 - 3 - - 3 2 - - - 2
Cost reimbursements 27 28 27 28 110 29 32 33 32 126 34 34 34 33 135 36 38 36 37 147 42 43 43 40 168 49 23 33 32 137 35 38 58 71 202 66 67 82 82 297 95 97 97 97 386 122 - - - 122
Total operating expenses 296 286 281 291 1,154 284 304 333 339 1,260 316 348 350 360 1,374 320 408 364 473 1,565 365 390 384 384 1,523 337 165 210 427 1,139 234 308 719 684 1,945 679 801 879 865 3,224 804 853 838 870 3,365 1,090 - - - 1,090
Allocated parent interest expense (8) (7) (7) (7) (29) (6) (7) (7) (6) (26) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Interest expense - - - - - - - - (3) (3) (7) (7) (7) (6) (27) (7) (8) (7) (8) (30) (10) (11) (12) (10) (43) (10) (12) (10) (11) (43) (15) (17) (42) (31) (105) (33) (35) (37) (37) (142) (44) (44) (45) (45) (178) (79) - - - (79)
Equity in earnings (losses) from unconsolidated affiliates - - - - - - - - - - - - 1 - 1 1 (2) 1 - - 1 2 1 - 4 3 1 (1) 2 5 2 4 1 3 10 3 4 2 4 13 3 2 2 5 12 5 - - - 5
Other gain (loss), net (1) - - - - - - - 1 (2) (1) - - 1 (1) - (1) 1 (1) - (1) (1) (1) (1) - (3) 2 (3) 1 3 3 (1) (1) (20) (4) (26) 1 (2) 2 (2) (1) 1 3 (1) (1) 2 (5) - - - (5)
Income (loss) before income taxes 57 67 85 83 292 80 80 68 65 293 76 84 71 80 311 40 146 56 161 403 75 54 70 74 273 9 (56) (12) (221) (280) (13) 12 148 122 269 71 114 204 92 481 90 115 136 108 449 (13) - - - (13)
Income tax (expense) benefit (23) (27) (34) (34) (118) (32) (33) (33) (27) (125) (26) (33) (28) 103 16 (10) (39) (15) (41) (105) (20) (15) (20) (2) (57) (1) 8 5 67 79 6 (3) (49) (47) (93) (20) (41) (54) (14) (129) (17) (35) (44) (40) (136) 11 - - - 11
Net income (loss) $ 34 $ 40 $ 51 $ 49 $ 174 $ 48 $ 47 $ 35 $ 38 $ 168 $ 50 $ 51 $ 43 $ 183 $ 327 $ 30 $ 107 $ 41 $ 120 $ 298 $ 55 $ 39 $ 50 $ 72 $ 216 $ 8 $ (48) $ (7) $ (154) $ (201) $ (7) $ 9 $ 99 $ 75 $ 176 $ 51 $ 73 $ 150 $ 78 $ 352 73 80 92 68 313 (2) - - - (2)
Net income attributable to noncontrolling interest - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 - - - 2
Net income attributable to stockholders $ 34 $ 40 $ 51 $ 49 $ 174 $ 48 $ 47 $ 35 $ 38 $ 168 $ 50 $ 51 $ 43 $ 183 $ 327 $ 30 $ 107 $ 41 $ 120 $ 298 $ 55 $ 39 $ 50 $ 72 $ 216 $ 8 $ (48) $ (7) $ (154) $ (201) $ (7) $ 9 $ 99 $ 75 $ 176 $ 51 $ 73 $ 150 $ 78 $ 352 $ 73 $ 80 $ 92 $ 68 $ 313 $ (4) $ - $ - $ - $ (4)
Earnings (loss) per share:(2)
Basic $ 0.34 $ 0.40 $ 0.52 $ 0.49 $ 1.75 $ 0.48 $ 0.48 $ 0.35 $ 0.38 $ 1.69 $ 0.51 $ 0.51 $ 0.43 $ 1.85 $ 3.30 $ 0.31 $ 1.10 $ 0.42 $ 1.25 $ 3.08 $ 0.59 $ 0.43 $ 0.59 $ 0.83 $ 2.44 $ 0.09 $ (0.56) $ (0.08) $ (1.81) $ (2.36) $ (0.08) $ 0.10 $ 0.92 $ 0.63 $ 1.77 $ 0.42 $ 0.60 $ 1.25 $ 0.68 $ 2.98 $ 0.65 $ 0.72 $ 0.84 $ 0.63 $ 2.84 $ (0.04) $ - $ - $ - $ -
Diluted $ 0.34 $ 0.40 $ 0.52 $ 0.49 $ 1.75 $ 0.48 $ 0.48 $ 0.35 $ 0.38 $ 1.69 $ 0.51 $ 0.51 $ 0.43 $ 1.83 $ 3.28 $ 0.30 $ 1.10 $ 0.42 $ 1.24 $ 3.06 $ 0.58 $ 0.43 $ 0.59 $ 0.83 $ 2.43 $ 0.09 $ (0.56) $ (0.08) $ (1.81) $ (2.36) $ (0.08) $ 0.10 $ 0.90 $ 0.62 $ 1.75 $ 0.42 $ 0.60 $ 1.24 $ 0.67 $ 2.93 $ 0.64 $ 0.71 $ 0.83 $ 0.62 $ 2.80 $ (0.04) $ - $ - $ - $ -
NET CONSTRUCTION DEFERRAL ACTIVITY 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Sales of VOIs, net $ (12) $ (7) $ 6 $ 8 $ (5) $ 10 $ (11) $ - $ (4) $ (5) $ (1) $ - $ (3) $ (1) $ (5) $ (66) $ 91 $ (45) $ 153 $ 133 $ - $ (34) $ (15) $ (35) $ (84) $ (47) $ (4) $ (13) $ (21) $ (85) $ (32) $ (42) $ 241 $ (34) $ 133 $ (42) $ (10) $ 86 $ (3) $ 31 $ 4 $ (6) $ (12) $ (21) $ (35) $ 2 $ - $ - $ - $ 2
Cost of VOI sales (4) (1) 1 3 (1) 3 (4) 1 (1) (1) (1) - (1) - (2) (21) 20 (13) 50 36 - (11) (5) (11) (27) (13) - (4) (6) (23) (10) (13) 73 (12) 38 (13) (5) 30 (1) 11 1 (1) (3) (6) (9) (1) - - - (1)
Sales, marketing, general and administrative expense (2) (1) 1 1 (1) 2 (1) - - 1 - - - - - (8) 11 (7) 22 18 - (5) (2) (5) (12) (7) (1) (1) (4) (13) (4) (7) 35 (5) 19 (7) (1) 13 (1) 4 1 (1) (2) (3) (5) - - - - -
Net construction recognitions (deferrals) included in net income $ (6) $ (5) $ 4 $ 4 (3) $ 5 $ (6) $ (1) $ (3) (5) $ - $ - $ (2) $ (1) (3) $ (37) $ 60 $ (25) $ 81 79 $ - $ (18) $ (8) $ (19) (45) $ (27) $ (3) $ (8) $ (11) (49) $ (18) $ (22) $ 133 $ (17) 76 $ (22) $ (4) $ 43 $ (1) 16 $ 2 $ (4) $ (7) $ (12) (21) $ 3 $ - $ - $ - 3
_______________________
(1) Includes gain (loss) on foreign currency transactions.
(2) The weighted average shares outstanding for the quarters and years ended December 31, 2016 and 2015 reflect 98,802,597 shares distributed on January 3, 2017, the spin-off date.
(3) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
Net Income-to-Adj EBITDA
HILTON GRAND VACATIONS INC.
NET INCOME TO ADJUSTED EBITDA RECONCILIATIONS
(in millions)
2015 2016 * SPIN-OFF FROM HILTON WORLDWIDE* 2017 2018 2019 2020 2021 * DIAMOND ACQUISITION* 2021(3) 2022 2023 *BLUEGREEN ACQUISITION* 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED
Net income attributable to stockholders $ 34 $ 40 $ 51 $ 49 $ 174 $ 48 $ 47 $ 35 $ 38 $ 168 $ 50 $ 51 $ 43 $ 183 $ 327 $ 30 $ 107 $ 41 $ 120 $ 298 $ 55 $ 39 $ 50 $ 72 $ 216 $ 8 $ (48) $ (7) $ (154) $ (201) $ (7) $ 9 $ 99 $ 75 $ 176 $ 51 $ 73 $ 150 $ 78 $ 352 $ 73 $ 80 $ 92 $ 68 $ 313 $ (4) $ (4)
Net income attributable to NCI - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 2
Net income (loss) $ 34 $ 40 $ 51 $ 49 $ 174 $ 48 $ 47 $ 35 $ 38 $ 168 $ 50 $ 51 $ 43 $ 183 $ 327 $ 30 $ 107 $ 41 $ 120 $ 298 $ 55 $ 39 $ 50 $ 72 $ 216 $ 8 $ (48) $ (7) $ (154) $ (201) $ (7) $ 9 $ 99 $ 75 $ 176 $ 51 $ 73 $ 150 $ 78 $ 352 73 80 92 68 313 (2) - - - (2)
Allocated Parent interest expense(1) 8 7 7 7 29 6 7 7 6 26 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Interest expense - - - - - - - - 3 3 7 7 7 6 27 7 8 7 8 30 10 11 12 10 43 10 12 10 11 43 15 17 42 31 105 33 35 37 37 142 44 44 45 45 178 79 - - - 79
Income tax expense (benefit) 23 27 34 34 118 32 33 33 27 125 26 33 28 (103) (16) 10 39 15 41 105 20 15 20 2 57 1 (8) (5) (67) (79) (6) 3 49 47 93 20 41 54 14 129 17 35 44 40 136 (11) - - - (11)
Depreciation and amortization 5 6 5 6 22 5 6 6 7 24 7 7 7 8 29 7 8 8 10 33 8 12 12 12 44 12 11 11 11 45 11 12 48 55 126 60 64 57 63 244 51 52 53 57 213 62 - - - 62
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates - - - - - - - - - - - - 2 1 3 1 1 1 1 4 1 1 - 1 3 1 - 1 - 2 1 - - - 1 - - 2 - 2 - 1 - 1 2 1 - - - 1
EBITDA(2) 70 80 97 96 343 91 93 81 81 346 90 98 87 95 370 55 163 72 180 470 94 78 94 97 363 32 (33) 10 (199) (190) 14 41 238 208 501 164 213 300 192 869 185 212 234 211 842 129 - - - 129
Other (gain) loss, net(3) - - - - - - - (1) 2 1 - - (1) 1 - 1 (1) 1 - 1 1 1 1 - 3 (2) 3 (1) (3) (3) 1 1 20 4 26 (1) 2 (2) 2 1 (1) (3) 1 1 (2) 5 - - - 5
Share-based compensation expense 2 7 2 2 13 2 3 2 1 8 3 5 5 2 15 3 5 5 3 16 5 7 6 4 22 (2) 6 6 5 15 4 14 14 16 48 11 15 14 6 46 10 16 12 2 40 9 - - - 9
Impairment expense - - - - - - - - - - - - - - - - - - - - - - - - - - - - 209 209 1 - 1 - 2 3 (3) - 17 17 - 3 - - 3 2 - - - 2
Acquisition and integration-related expense - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 15 13 54 23 106 13 17 19 18 67 17 13 12 26 68 109 - - - 109
Other adjustment items(4) - 3 (1) 2 4 3 7 11 14 35 1 3 3 3 10 3 8 2 3 16 2 4 10 4 20 5 5 4 12 26 7 1 13 13 33 12 29 7 17 65 7 7 10 30 54 22 - - - 22
Adjusted EBITDA $ 72 $ 90 $ 98 $ 100 $ 360 $ 96 $ 103 $ 93 $ 98 $ 390 $ 94 $ 106 $ 94 $ 101 $ 395 $ 62 $ 175 $ 80 $ 186 $ 503 $ 102 $ 90 $ 111 $ 105 $ 408 $ 33 $ (19) $ 19 $ 24 $ 57 $ 42 $ 70 $ 340 $ 264 $ 716 $ 202 $ 273 $ 338 $ 252 $ 1,065 218 248 269 270 1,005 276 - - - 276
Less: Adjusted EBITDA attributable to noncontrolling interest - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 3
Total Adjusted EBITDA attributable to stockholders $ 72 $ 90 $ 98 $ 100 $ 360 $ 96 $ 103 $ 93 $ 98 $ 390 $ 94 $ 106 $ 94 $ 101 $ 395 $ 62 $ 175 $ 80 $ 186 $ 503 $ 102 $ 90 $ 111 $ 105 $ 408 $ 33 $ (19) $ 19 $ 24 $ 57 $ 42 $ 70 $ 340 $ 264 $ 716 $ 202 $ 273 $ 338 $ 252 $ 1,065 $ 218 $ 248 $ 269 $ 270 $ 1,005 $ 273 $ - $ - $ - $ 273
NET CONSTRUCTION DEFERRAL ACTIVITY 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Sales of VOIs, net $ (12) $ (7) $ 6 $ 8 $ (5) $ 10 $ (11) $ - $ (4) $ (5) $ (1) $ - $ (3) $ (1) $ (5) $ (66) $ 91 $ (45) $ 153 $ 133 $ - $ (34) $ (15) $ (35) $ (84) $ (47) $ (4) $ (13) $ (21) $ (85) $ (32) $ (42) $ 241 $ (34) $ 133 $ (42) $ (10) $ 86 $ (3) $ 31 $ 4 $ (6) $ (12) $ (21) $ (35) $ 2 $ - $ - $ - $ 2
Cost of VOI sales (4) (1) 1 3 (1) 3 (4) 1 (1) (1) (1) - (1) - (2) (21) 20 (13) 50 36 - (11) (5) (11) (27) (13) - (4) (6) (23) (10) (13) 73 (12) 38 (13) (5) 30 (1) 11 1 (1) (3) (6) (9) (1) - - - (1)
Sales, marketing, general and administrative expense (2) (1) 1 1 (1) 2 (1) - - 1 - - - - - (8) 11 (7) 22 18 - (5) (2) (5) (12) (7) (1) (1) (4) (13) (4) (7) 35 (5) 19 (7) (1) 13 (1) 4 1 (1) (2) (3) (5) - - - - -
Net construction recognitions (deferrals) included in net income/ EBITDA /Adjusted EBITDA $ (6) $ (5) $ 4 $ 4 $ (3) $ 5 $ (6) $ (1) $ (3) $ (5) $ - $ - $ (2) $ (1) $ (3) $ (37) $ 60 $ (25) $ 81 $ 79 $ - $ (18) $ (8) $ (19) $ (45) $ (27) $ (3) $ (8) $ (11) $ (49) $ (18) $ (22) $ 133 $ (17) $ 76 $ (22) $ (4) $ 43 $ (1) $ 16 $ 2 $ (4) $ (7) $ (12) $ (21) $ 3 $ - $ - $ - $ 3
_____________________
(1) In November 2016, we were released from the unconditional obligation to guarantee certain Hilton Worldwide allocated debt.
(2) During the first quarter of 2017, we revised the definition of EBITDA to exclude the adjustment of interest expense relating to our non-recourse debt as a reconciling item to arrive at net income. The revised definition conforms with industry practice and was applied to prior periods to conform with current presentation.
(3) Includes (gain) loss on foreign currency transactions.
(4) Include costs associated with restructuring, one-time charges and other non-cash items. For the periods subsequent to the Diamond acquisition, these amounts also include the amortization of premiums and discounts resulting from purchase accounting.
(5) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
Segment EBITDA
HILTON GRAND VACATIONS INC.
SEGMENT EBITDA TO ADJUSTED EBITDA RECONCILIATIONS
(in millions)
2015 2016 * SPIN-OFF FROM HILTON WORLDWIDE* 2017 2018 2019 2020 2021 * DIAMOND ACQUISITION* 2021(3) 2022 2023 *BLUEGREEN ACQUISITION* 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED
Segment Adjusted EBITDA:
Real estate sales and financing (1) $ 60 $ 78 $ 88 $ 90 $ 316 $ 81 $ 84 $ 85 $ 86 $ 336 $ 83 $ 99 $ 81 $ 96 $ 359 $ 44 $ 163 $ 67 $ 173 $ 447 $ 80 $ 69 $ 94 $ 82 $ 325 $ 15 $ (14) $ 15 $ 17 $ 33 $ 27 $ 45 $ 280 $ 185 $ 537 $ 153 $ 218 $ 295 $ 199 $ 865 $ 169 $ 189 $ 205 $ 191 $ 754 $ 206 $ - $ - $ - $ 206
Resort operations and club management (1) 39 40 40 43 162 46 51 42 50 189 51 52 50 51 204 59 58 62 66 245 65 66 62 72 265 55 15 30 36 136 42 61 109 141 353 101 119 112 131 463 109 123 126 146 504 134 - - - 134
Adjustments:
Adjusted EBITDA from unconsolidated affiliates - - - - - - - - - - - - 3 1 4 2 (1) 2 1 4 2 3 1 1 7 4 1 - 2 7 3 4 1 3 11 3 4 5 3 15 3 3 2 6 14 6 - - - 6
License fee expense (18) (18) (19) (19) (74) (19) (20) (22) (19) (80) (20) (23) (22) (22) (87) (23) (25) (25) (25) (98) (23) (26) (26) (26) (101) (22) (6) (11) (12) (51) (14) (19) (24) (23) (80) (25) (32) (33) (34) (124) (30) (34) (37) (37) (138) (35) - - - (35)
General and administrative (2) (9) (10) (11) (14) (44) (12) (12) (12) (19) (55) (20) (22) (18) (25) (85) (20) (20) (26) (29) (95) (22) (22) (20) (24) (88) (19) (15) (15) (19) (68) (16) (21) (26) (42) (105) (30) (36) (41) (47) (154) (33) (33) (27) (36) (129) (35) - - - (35)
Adjusted EBITDA $ 72 $ 90 $ 98 $ 100 $ 360 $ 96 $ 103 $ 93 $ 98 $ 390 $ 94 $ 106 $ 94 $ 101 $ 395 $ 62 $ 175 $ 80 $ 186 $ 503 $ 102 $ 90 $ 111 $ 105 $ 408 $ 33 $ (19) $ 19 $ 24 $ 57 $ 42 $ 70 $ 340 $ 264 $ 716 $ 202 $ 273 $ 338 $ 252 $ 1,065 218 248 269 270 1,005 276 - - - 276
Less: Adjusted EBITDA attributable to noncontrolling interest - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3
Total Adjusted EBITDA attributable to stockholders $ 72 $ 90 $ 98 $ 100 $ 360 $ 96 $ 103 $ 93 $ 98 $ 390 $ 94 $ 106 $ 94 $ 101 $ 395 $ 62 $ 175 $ 80 $ 186 $ 503 $ 102 $ 90 $ 111 $ 105 $ 408 $ 33 $ (19) $ 19 $ 24 $ 57 $ 42 $ 70 $ 340 $ 264 $ 716 $ 202 $ 273 $ 338 $ 252 $ 1,065 $ 218 $ 248 $ 269 $ 270 $ 1,005 $ 273 $ - $ - $ - $ 276
NET CONSTRUCTION DEFERRAL ACTIVITY 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Sales of VOIs, net $ (12) $ (7) $ 6 $ 8 $ (5) $ 10 $ (11) $ - $ (4) $ (5) $ (1) $ - $ (3) $ (1) $ (5) $ (66) $ 91 $ (45) $ 153 $ 133 $ - $ (34) $ (15) $ (35) $ (84) $ (47) $ (4) $ (13) $ (21) $ (85) $ (32) $ (42) $ 241 $ (34) $ 133 $ (42) $ (10) $ 86 $ (3) $ 31 $ 4 $ (6) $ (12) $ (21) $ (35) $ 2 $ - $ - $ - $ 2
Cost of VOI sales (4) (1) 1 3 (1) 3 (4) 1 (1) (1) (1) - (1) - (2) (21) 20 (13) 50 36 - (11) (5) (11) (27) (13) - (4) (6) (23) (10) (13) 73 (12) 38 (13) (5) 30 (1) 11 1 (1) (3) (6) (9) (1) - - - (1)
Sales, marketing, general and administrative expense (2) (1) 1 1 (1) 2 (1) - - 1 - - - - - (8) 11 (7) 22 18 - (5) (2) (5) (12) (7) (1) (1) (4) (13) (4) (7) 35 (5) 19 (7) (1) 13 (1) 4 1 (1) (2) (3) (5) - - - - -
Net construction recognitions (deferrals) included in real estate sales and financing segment Adjusted EBITDA/ segment Adjusted EBITDA/Adjusted EBITDA $ (6) $ (5) $ 4 $ 4 $ (3) $ 5 $ (6) $ (1) $ (3) $ (5) $ - $ - $ (2) $ (1) $ (3) $ (37) $ 60 $ (25) $ 81 $ 79 $ - $ (18) $ (8) $ (19) $ (45) $ (27) $ (3) $ (8) $ (11) $ (49) $ (18) $ (22) $ 133 $ (17) $ 76 $ (22) $ (4) $ 43 $ (1) $ 16 $ 2 $ (4) $ (7) $ (12) $ (21) $ 3 $ - $ - $ - $ 3
_______________
(1) Includes intersegment transactions, share-based compensation, depreciation and other adjustments attributable to the segments.
(2) Excludes segment related share-based compensation, depreciation and other adjustment items.
(3) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
Real Estate Profit
HILTON GRAND VACATIONS INC.
REAL ESTATE SALES MARGIN DETAIL SCHEDULE
(in millions, except Tour Flow and VPG)
2015 2016 * SPIN-OFF FROM HILTON WORLDWIDE * * SPIN-OFF FROM HILTON WORLDWIDE * 2017 2018 2019 2020 2021 *DIAMOND ACQUISITION * *DIAMOND ACQUISITION * 2021(5)(8) 2022 2023 BLUEGREEN ACQUISITION * *BLUEGREEN ACQUISITION * 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED(1)
Tour flow 64,897 74,252 75,573 73,133 287,855 70,988 79,557 79,817 75,779 306,141 72,405 87,114 87,346 83,910 330,775 77,700 94,269 94,816 91,076 357,861 82,644 101,712 102,911 95,841 383,108 66,965 5,810 25,488 28,822 127,085 27,948 56,345 97,628 116,123 98,601 134,259 142,647 141,610 517,117 130,268 162,444 163,699 151,956 608,367 174,138 - - - 174,138
VPG $ 3,866 $ 3,321 $ 3,348 $ 3,548 $ 3,508 $ 3,457 $ 3,447 $ 3,602 $ 3,875 $ 3,596 $ 3,737 $ 3,503 $ 3,555 $ 3,854 $ 3,657 $ 3,997 $ 3,597 $ 3,648 $ 3,775 $ 3,743 $ 3,677 $ 3,393 $ 3,363 $ 3,681 $ 3,518 $ 3,506 $ 4,786 $ 4,205 $ 4,319 $ 3,889 $ 4,647 $ 4,385 $ 4,255 $ 4,294 $ 4,849 $ 4,452 $ 4,229 $ 4,350 $ 4,432 $ 3,969 $ 3,728 $ 3,656 $ 3,730 $ 3,760 $ 3,593 $ - $ - $ - $ 3,593
Owned contract sales mix 23.3 % 55.0 % 43.7 % 49.3 % 42.8 % 38.9 % 41.2 % 40.8 % 53.7 % 43.9 % 39.7 % 48.6 % 48.2 % 45.1 % 45.6 % 48.3 % 45.9 % 42.0 % 43.9 % 45.0 % 41.0 % 49.0 % 46.1 % 47.7 % 46.1 % 46.7 % 45.7 % 42.7 % 55.3 % 47.9 % 59.7 % 57.9 % 71.4 % 74.1 % 74.7 % 70.2 % 70.2 % 67.7 % 70.9 % 66.7 % 70.6 % 71.1 % 79.7 % 72.1 % 84.2 % - % - % - % 84.2 %
Fee-for-service contract sales mix 76.7 % 45.0 % 56.3 % 50.7 % 57.2 % 61.1 % 58.8 % 59.2 % 46.3 % 56.1 % 60.3 % 51.4 % 51.8 % 54.9 % 54.4 % 51.7 % 54.1 % 58.0 % 56.1 % 55.0 % 59.0 % 51.0 % 53.9 % 52.3 % 53.9 % 53.3 % 54.3 % 57.3 % 44.7 % 52.1 % 40.3 % 42.1 % 28.6 % 25.9 % 25.3 % 29.8 % 29.8 % 32.3 % 29.1 % 33.3 % 29.4 % 28.9 % 20.3 % 27.9 % 15.8 % - % - % - % 15.8 %
Contract sales $ 266 $ 260 $ 268 $ 274 $ 1,068 $ 262 $ 291 $ 306 $ 313 $ 1,172 $ 287 $ 323 $ 326 $ 339 $ 1,275 $ 329 $ 357 $ 364 $ 360 $ 1,410 $ 322 $ 363 $ 360 $ 365 $ 1,410 $ 244 $ 35 $ 117 $ 132 $ 528 $ 139 $ 259 $ 433 $ 521 $ 509 $ 617 $ 621 $ 634 $ 2,381 $ 523 $ 612 $ 603 $ 572 $ 2,310 $ 631 $ - $ - $ - $ 631
Adjustments:
Fee-for-service sales (2) (204) (117) (151) (139) (611) (160) (171) (181) (145) (657) (173) (166) (169) (186) (694) (170) (193) (211) (202) (776) (190) (185) (194) (191) (760) (130) (19) (67) (59) (275) (56) (109) (124) (135) (129) (184) (175) (205) (693) (174) (180) (174) (116) (644) (100) - - - (100)
Provision for financing receivables losses (7) (10) (12) (10) (39) (10) (13) (14) (12) (49) (11) (15) (19) (13) (58) (12) (18) (20) (19) (69) (14) (24) (22) (14) (74) (37) (8) (12) (18) (75) (16) (12) (49) (44) (31) (40) (32) (39) (142) (30) (41) (46) (54) (171) (64) - - - (64)
Reportability and other:
Net deferral (recognition) of sales of VOIs under construction (12) (7) 6 8 (5) 10 (11) - (4) (5) (1) - (3) (1) (5) (66) 91 (45) 153 133 - (34) (15) (35) (84) (47) (4) (13) (21) (85) (32) (42) 241 (34) (42) (10) 86 (3) 31 4 (6) (12) (21) (35) 2 - - - 2
Fee-for-service sale upgrades, net 47 14 22 13 96 18 23 25 8 74 16 10 13 13 52 8 11 21 23 63 14 10 15 13 52 8 1 4 3 16 2 3 3 6 4 5 5 4 18 5 7 6 1 19 - - - - -
Other (3) 4 (4) (8) (9) (17) (5) (5) (6) (11) (27) - (9) (3) (10) (22) (11) 2 (10) (8) (27) (7) (10) (6) (12) (35) 18 (5) (5) (9) (1) (4) (23) (16) (28) (42) (27) (5) (30) (104) (10) (37) (10) (6) (63) (31) - - - (31)
Sales of VOIs, net $ 94 $ 136 $ 125 $ 137 $ 492 $ 115 $ 114 $ 130 $ 149 $ 508 $ 118 $ 143 $ 145 $ 142 $ 548 $ 78 $ 250 $ 99 $ 307 $ 734 $ 125 $ 120 $ 138 $ 126 $ 509 $ 56 $ - $ 24 $ 28 $ 108 $ 33 $ 76 $ 488 $ 286 $ 269 $ 361 $ 500 $ 361 $ 1,491 $ 318 $ 355 $ 367 $ 376 $ 1,416 $ 438 $ - $ - $ - $ 438
Fee-for-service commissions and brand fees 115 66 92 76 349 91 100 104 82 377 98 101 93 107 399 98 113 121 115 447 111 107 109 110 437 81 9 41 33 164 32 57 73 74 69 99 125 119 412 107 111 107 68 393 64 - - - 64
Sales revenue 209 202 217 213 841 206 214 234 231 885 216 244 238 249 947 176 363 220 422 1,181 236 227 247 236 946 137 9 65 61 272 65 133 561 360 338 460 625 480 1,903 425 466 474 444 1,809 502 - - - 502
Cost of VOI sales 61 43 40 29 173 38 28 44 42 152 33 34 40 41 148 19 61 29 101 210 36 32 24 35 127 14 (1) 8 7 28 3 21 130 59 40 65 102 67 274 50 48 43 53 194 48 - - - 48
Sales and marketing expense, net(4)(6) 97 92 100 108 397 100 112 117 118 447 112 120 132 128 492 126 152 135 162 575 131 139 145 134 549 125 56 66 66 313 59 83 189 162 193 222 270 253 938 250 274 271 245 1,040 320 - - - 320
Real estate expense $ 158 $ 135 $ 140 $ 137 $ 570 $ 138 $ 140 $ 161 $ 160 $ 599 $ 145 $ 154 $ 172 $ 169 $ 640 $ 145 $ 213 $ 164 $ 263 $ 785 $ 167 $ 171 $ 169 $ 169 $ 676 $ 139 $ 55 $ 74 $ 73 $ 341 $ 62 $ 104 $ 319 $ 221 $ 233 $ 287 $ 372 $ 320 $ 1,212 $ 300 $ 322 $ 314 $ 298 $ 1,234 $ 368 $ - $ - $ - $ 368
Real estate profit (loss) $ 51 $ 67 $ 77 $ 76 $ 271 $ 68 $ 74 $ 73 $ 71 $ 286 $ 71 $ 90 $ 66 $ 80 $ 307 $ 31 $ 150 $ 56 $ 159 $ 396 $ 69 $ 56 $ 78 $ 67 $ 270 $ (2) $ (46) $ (9) $ (12) $ (69) $ 3 $ 29 $ 242 $ 139 $ 105 $ 173 $ 253 $ 160 $ 691 $ 125 $ 144 $ 160 $ 146 $ 575 $ 134 $ - $ - $ - $ 134
Real estate profit margin(7) 24.4 % 33.2 % 35.5 % 35.7 % 32.2 % 33.0 % 34.6 % 31.2 % 30.7 % 32.3 % 32.9 % 36.9 % 27.7 % 32.1 % 32.4 % 17.6 % 41.3 % 25.5 % 37.7 % 33.5 % 29.2 % 24.7 % 31.6 % 28.4 % 28.5 % (1.5)% N/M(5) (13.8)% (19.7)% (25.4)% 4.6 % 21.8 % 43.1 % 38.6 % 31.1 % 37.6 % 40.5 % 33.3 % 36.3 % 29.4 % 30.9 % 33.8 % 32.9 % 31.8 % 26.7 % - % - % - % 26.7 %
Reconciliation of fee-for-service commissions:
Sales, marketing, brand and other fees 140 94 118 105 457 118 128 136 117 499 130 144 127 143 544 125 146 152 147 570 141 145 143 144 573 106 13 52 50 221 $ 53 $ 81 $ 118 $ 133 $ 119 $ 161 $ 177 $ 163 $ 620 $ 158 $ 173 $ 170 $ 133 $ 634 $ 145 $ - $ - $ - $ 145
Less: Marketing revenue and other fees (25) (28) (26) (29) (108) (27) (28) (32) (35) (122) (32) (43) (34) (36) (145) (27) (33) (31) (32) (123) (30) (38) (34) (34) (136) (25) (4) (11) (17) (57) (21) (24) (45) (59) (50) (62) (52) (44) (208) (51) (62) (63) (65) (241) (81) - - - (81)
Fee-for-service commissions and brand fees $ 115 $ 66 $ 92 $ 76 $ 349 $ 91 $ 100 $ 104 $ 82 $ 377 $ 98 $ 101 $ 93 $ 107 $ 399 $ 98 $ 113 $ 121 $ 115 $ 447 $ 111 $ 107 $ 109 $ 110 $ 437 $ 81 $ 9 $ 41 $ 33 $ 164 $ 32 $ 57 $ 73 $ 74 $ 69 $ 99 $ 125 $ 119 $ 412 $ 107 $ 111 $ 107 $ 68 $ 393 $ 64 $ - $ - $ - $ 64
Reconciliation of sales and marketing expense:
Sales and marketing expense $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 234 $ 221 $ 243 $ 284 $ 322 $ 297 $ 1,146 $ 301 $ 336 $ 334 $ 310 $ 1,281 $ 401 $ - $ - $ - $ 401
Less: Marketing revenue and other fees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (45) (59) (50) (62) (52) (44) (208) (51) (62) (63) (65) (241) (81) - - - (81)
Sales and marketing expense, net(6) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 189 $ 162 $ 193 $ 222 $ 270 $ 253 $ 938 $ 250 $ 274 $ 271 $ 245 $ 1,040 $ 320 $ - $ - $ - $ 320
NET CONSTRUCTION DEFERRAL ACTIVITY 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Sales of VOIs, net $ (12) $ (7) $ 6 $ 8 $ (5) $ 10 $ (11) $ - $ (4) $ (5) $ (1) $ - $ (3) $ (1) $ (5) $ (66) $ 91 $ (45) $ 153 $ 133 $ - $ (34) $ (15) $ (35) $ (84) $ (47) $ (4) $ (13) $ (21) $ (85) $ (32) $ (42) $ 241 $ (34) $ (42) $ (10) $ 86 $ (3) $ 31 $ 4 $ (6) $ (12) $ (21) $ (35) $ 2 $ - $ - $ - $ 2
Cost of VOI sales (4) (1) 1 3 (1) 3 (4) 1 (1) (1) (1) - (1) - (2) (21) 20 (13) 50 36 - (11) (5) (11) (27) (13) - (4) (6) (23) (10) (13) 73 (12) (13) (5) 30 (1) 11 1 (1) (3) (6) (9) (1) - - - (1)
Sales, marketing, general and administrative expense (2) (1) 1 1 (1) 2 (1) - - 1 - - - - - (8) 11 (7) 22 18 - (5) (2) (5) (12) (7) (1) (1) (4) (13) (4) (7) 35 (5) (7) (1) 13 (1) 4 1 (1) (2) (3) (5) - - - - -
Net construction recognitions (deferrals) included in real estate profit $ (6) $ (5) $ 4 $ 4 $ (3) $ 5 $ (6) $ (1) $ (3) $ (5) $ - $ - $ (2) $ (1) $ (3) $ (37) $ 60 $ (25) $ 81 $ 79 $ - $ (18) $ (8) $ (19) $ (45) $ (27) $ (3) $ (8) $ (11) $ (49) $ (18) $ (22) $ 133 $ (17) $ (22) $ (4) $ 43 $ (1) $ 16 $ 2 $ (4) $ (7) $ (12) $ (21) $ 3 $ - $ - $ - $ 3
_______________
(1) Amounts disclosed within this presentation starting with the third quarter of 2021 do not reflect currently available filings, with the excepiton of the second quarter in 2022 and 2023 quarter to date information and 2023 year to date information.
(2) Represents contract sales from fee-for-service properties on which the company earns commissions and brand fees.
(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. For the year ended December 31, 2017, we revised our definition of Sales and marketing expense, net to include revenues associated with sales incentives, title service and document compliance revenue to better align with how we evaluate the results of our real estate operations. This adjustment was applied to prior period(s) up to fiscal year 2020.
(5) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
(6) For the period ended June 30, 2023, we revised our definition of Sales and marketing expense, net to represent sales and marketing expense, which corresponds to the applicable line item from our condensed consolidated statements of operations, adjusted by marketing revenue and other fees earned primarily from discounted marketing related packages which encompass a sales tour to prospective owners. This change in definition is effective for all future periods, including updated associated prior-year period disclosures. Within this presentation, we have applied the adjustment starting in the third quarter of fiscal year 2021, the first reporting period post the close of the Diamond Acquisition.
(7) Real estate profit margin calculation for the second quarter of 2022 and 2023 are calculated based on the values determined from the revised definition of Sales and marketing expense, net. This change in calculation is effective for all future periods, including updated associated prior-year period disclosures. Within this presentation, we have applied the adjustment starting in the third quarter of fiscal year 2021, the first reporting period post the close of the Diamond Acquisition.
(8) Year-to-date amounts have been intentionally removed for fiscal year 2021, due to the change in definition and calculation for Sales and marketing expense, net that has been impleted in the table above starting in the third quarter of 2021.
Finance Profit
HILTON GRAND VACATIONS INC.
FINANCING MARGIN DETAIL SCHEDULE
(in millions)
2015 2016 * SPIN-OFF FROM HILTON* 2017 2018 2019 2020 2021 * DIAMOND ACQUISITION* 2021(1) 2022 2023 *BLUEGREEN ACQUISITION* 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED
Interest income(2) $ 28 $ 29 $ 30 $ 30 $ 117 $ 30 $ 30 $ 31 $ 31 $ 122 $ 32 $ 32 $ 33 $ 35 $ 132 $ 34 $ 34 $ 35 $ 37 $ 140 $ 36 $ 36 $ 37 $ 38 $ 147 $ 38 $ 36 $ 34 $ 33 $ 141 $ 31 $ 31 $ 46 $ 49 $ 157 $ 55 $ 54 $ 61 $ 65 $ 235 $ 66 $ 65 $ 68 $ 74 $ 273 $ 96 $ - $ - $ - $ 96
Other financing revenue 3 2 3 2 10 2 4 3 3 12 3 4 5 3 15 4 5 5 4 18 5 7 6 5 23 6 7 6 5 24 6 6 7 7 26 9 10 7 6 32 8 11 7 8 34 8 - - - 8
Financing revenue 31 31 33 32 127 32 34 34 34 134 35 36 38 38 147 38 39 40 41 158 41 43 43 43 170 44 43 40 38 165 37 37 53 56 183 64 64 68 71 267 74 76 75 82 307 104 - - - 104
Consumer financing interest expense(3) 4 3 3 3 13 3 3 3 3 12 4 6 6 4 20 4 6 6 8 24 7 7 8 7 29 7 7 9 8 31 7 7 8 8 30 7 8 11 21 47 11 11 12 14 48 25 - - - 25
Other financing expense 4 5 5 5 19 5 5 5 5 20 6 5 5 7 23 7 6 6 6 25 6 5 6 7 24 6 6 4 6 22 6 4 11 14 35 12 14 14 16 56 13 13 13 12 51 14 - - - 14
Financing expense 8 8 8 8 32 8 8 8 8 32 10 11 11 11 43 11 12 12 14 49 13 12 14 14 53 13 13 13 14 53 13 11 19 22 65 19 22 25 37 103 24 24 25 26 99 39 - - - 39
Financing profit $ 23 $ 23 $ 25 $ 24 $ 95 $ 24 $ 26 $ 26 $ 26 $ 102 $ 25 $ 25 $ 27 $ 27 $ 104 $ 27 $ 27 $ 28 $ 27 $ 109 $ 28 $ 31 $ 29 $ 29 $ 117 $ 31 $ 30 $ 27 $ 24 $ 112 $ 24 $ 26 $ 34 $ 34 $ 118 $ 45 $ 42 $ 43 $ 34 $ 164 $ 50 $ 52 $ 50 $ 56 $ 208 $ 65 $ - $ - $ - $ 65
Financing profit margin 74.2 % 74.2 % 75.8 % 75.0 % 74.8 % 75.0 % 76.5 % 76.5 % 76.5 % 76.1 % 71.4 % 69.4 % 71.1 % 71.1 % 70.7 % 71.1 % 69.2 % 70.0 % 65.9 % 69.0 % 68.3 % 72.1 % 67.4 % 67.4 % 68.8 % 70.5 % 69.8 % 67.5 % 63.2 % 67.9 % 64.9 % 70.3 % 64.2 % 60.7 % 64.5 % 70.3 % 65.6 % 63.2 % 47.9 % 61.4 % 67.6 % 68.4 % 66.7 % 68.3 % 67.8 % 62.5 % - % - % - % 62.5 %
_______________
(1) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
(2) This amount includes amortization of the premium related to the acquired timeshare financing receivables resulting from the Diamond Acquisition.
(3) This amount includes amortization of the premium related to the acquired non-recourse debt resulting from the Diamond Acquisition.
Resort & Rental Profit
HILTON GRAND VACATIONS INC.
RESORT AND CLUB MARGIN DETAIL SCHEDULE
(in millions, except for Members and Net Owner Growth)
2015 2016 * SPIN-OFF FROM HILTON WORLDWIDE * * SPIN-OFF FROM HILTON WORLDWIDE * 2017 2018 2019 2020 2021 * DIAMOND ACQUISITION * * DIAMOND ACQUISITION * 2021(2) 2022 2023 * BLUEGREEN ACQUISITION * * BLUEGREEN ACQUISITION * 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED
HGV Total Members 234,808 240,118 245,140 249,900 249,900 254,590 259,612 264,675 269,119 269,119 272,869 278,368 283,519 288,391 288,391 292,120 298,383 304,392 308,637 308,637 311,614 316,615 321,539 325,519 325,519 328,217 326,810 327,558 327,760 327,760 327,880 328,441 331,485 499,067 499,067 502,304 507,952 514,942 518,602 518,602 518,925 522,156 525,915 528,789 528,789 717,831 - - - -
HGV Net Owner Growth (NOG) (1)(3) 18,534 18,854 19,935 20,249 20,249 19,782 19,494 19,535 19,219 19,219 18,279 18,756 18,844 19,272 19,272 19,251 20,015 20,873 20,246 20,246 19,494 18,232 17,147 16,882 16,882 16,603 10,195 6,019 2,241 2,241 (337) 1,631 3,927 5,180 5,180 6,728 10,412 12,433 19,535 19,535 16,621 14,204 10,973 10,187 10,187 10,204 - - - -
HGV Net Owner Growth % (NOG %) 8.6 % 8.5 % 8.9 % 8.8 % 8.8 % 8.4 % 8.1 % 8.0 % 7.7 % 7.7 % 7.2 % 7.2 % 7.1 % 7.2 % 7.2 % 7.1 % 7.2 % 7.4 % 7.0 % 7.0 % 6.7 % 6.1 % 5.6 % 5.5 % 5.5 % 5.3 % 3.2 % 1.9 % 0.7 % 0.7 % (0.1)% 0.5 % 1.2 % 1.0 % 1.0 % 2.1 % 3.2 % 3.8 % 3.9 % 3.9 % 3.3 % 2.8 % 2.1 % 2.0 % 2.0 % 2.0 % - % - % - % - %
Club management revenue $ 16 $ 16 $ 18 $ 28 $ 78 $ 18 $ 21 $ 21 $ 32 $ 92 $ 21 $ 20 $ 22 $ 36 $ 99 $ 23 $ 23 $ 25 $ 41 $ 112 $ 26 $ 26 $ 28 $ 45 $ 125 $ 25 $ 22 $ 23 $ 26 $ 96 $ 27 $ 29 $ 42 $ 70 $ 168 $ 51 $ 51 $ 48 $ 77 $ 227 $ 51 $ 53 $ 56 $ 80 $ 240 $ 63 $ - $ - $ - $ 63
Resort management revenue 11 11 13 12 47 13 13 12 13 51 15 15 15 14 59 16 14 15 15 60 16 17 17 16 66 19 17 16 18 70 18 19 57 78 172 74 73 82 78 307 80 80 82 87 329 103 - - - 103
Resort and club management revenues 27 27 31 40 125 31 34 33 45 143 36 35 37 50 158 39 37 40 56 172 42 43 45 61 191 44 39 39 44 166 45 48 99 148 340 125 124 130 155 534 131 133 138 167 569 166 - - - 166
Club management expense 5 4 5 6 20 5 5 5 8 23 5 6 7 7 25 6 7 6 10 29 7 7 6 7 27 7 5 6 6 24 5 5 8 10 28 10 10 11 11 42 15 15 14 16 60 20 - - - 20
Resort management expense 2 4 3 3 12 3 3 4 3 13 5 4 5 4 18 5 4 5 4 18 4 5 5 5 19 5 1 3 3 12 3 6 18 25 52 26 27 34 32 119 27 29 29 32 117 34 - - - 34
Resort and club management expenses 7 8 8 9 32 8 8 9 11 36 10 10 12 11 43 11 11 11 14 47 11 12 11 12 46 12 6 9 9 36 8 11 26 35 80 36 37 45 43 161 42 44 43 48 177 54 - - - 54
Resort and club management profit $ 20 $ 19 $ 23 $ 31 $ 93 $ 23 $ 26 $ 24 $ 34 $ 107 $ 26 $ 25 $ 25 $ 39 $ 115 $ 28 $ 26 $ 29 $ 42 $ 125 $ 31 $ 31 $ 34 $ 49 $ 145 $ 32 $ 33 $ 30 $ 35 $ 130 $ 37 $ 37 $ 73 $ 113 $ 260 $ 89 $ 87 $ 85 $ 112 $ 373 $ 89 $ 89 $ 95 $ 119 $ 392 $ 112 $ - $ - $ - $ 112
Resort and club management profit margin 74.1% 70.4% 74.2% 77.5% 74.4% 74.2% 76.5% 72.7% 75.6% 74.8% 72.2% 71.4% 67.6% 78.0% 72.8% 71.8% 70.3% 72.5% 75.0% 72.7% 73.8% 72.1% 75.6% 80.3% 75.9% 72.7% 84.6% 76.9% 79.5% 78.3% 82.2% 77.1% 73.7% 76.4% 76.5% 71.2% 70.2% 65.4% 72.3% 69.9% 67.9% 66.9% 68.8% 71.3% 68.9% 67.5% -% -% -% 67.5%
HILTON GRAND VACATIONS INC.
RENTAL AND ANCILLARY MARGIN DETAIL SCHEDULE
(in millions)
2015 2016 2017 2018 2019 2020 2021 2021(2) 2022 2023 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED
Rental revenues $ 37 $ 37 $ 33 $ 33 $ 140 $ 39 $ 42 $ 35 $ 33 $ 149 $ 41 $ 40 $ 39 $ 36 $ 156 $ 45 $ 46 $ 53 $ 47 $ 191 $ 52 $ 53 $ 48 $ 48 $ 201 $ 47 $ 5 $ 19 $ 19 $ 90 $ 30 $ 50 $ 104 $ 131 $ 315 $ 124 $ 155 $ 157 $ 150 $ 586 $ 147 $ 162 $ 160 $ 154 $ 623 $ 169 $ - $ - $ - $ 169
Ancillary services revenues 5 7 6 6 24 6 7 6 5 24 5 7 6 5 23 6 7 7 7 27 7 7 6 6 26 5 - 1 1 7 2 4 8 13 27 12 16 2 10 40 11 11 11 10 43 12 - - - 12
Rental and ancillary services revenues 42 44 39 39 164 45 49 41 38 173 46 47 45 41 179 51 53 60 54 218 59 60 54 54 227 52 5 20 20 97 32 54 112 144 342 136 171 159 160 626 158 173 171 164 666 181 - - - 181
Rental expenses 22 22 22 25 91 21 23 23 23 90 23 25 25 30 103 23 25 30 32 110 29 30 30 34 123 32 22 23 21 98 29 32 77 104 242 122 138 141 143 544 143 144 144 142 573 163 - - - 163
Ancillary services expense 5 6 6 5 22 5 7 7 4 23 4 6 5 4 19 5 5 7 6 23 6 7 6 5 24 5 2 1 1 9 2 4 7 12 25 10 12 3 10 35 9 10 10 10 39 10 - - - 10
Rental and ancillary services expenses 27 28 28 30 113 26 30 30 27 113 27 31 30 34 122 28 30 37 38 133 35 37 36 39 147 37 24 24 22 107 31 36 84 116 267 132 150 144 153 579 152 154 154 152 612 173 - - - 173
Rental and ancillary services profit (loss) $ 15 $ 16 $ 11 $ 9 $ 51 $ 19 $ 19 $ 11 $ 11 $ 60 $ 19 $ 16 $ 15 $ 7 $ 57 $ 23 $ 23 $ 23 $ 16 $ 85 $ 24 $ 23 $ 18 $ 15 $ 80 $ 15 $ (19) $ (4) $ (2) $ (10) $ 1 $ 18 $ 28 $ 28 $ 75 $ 4 $ 21 $ 15 $ 7 $ 47 $ 6 $ 19 $ 17 $ 12 $ 54 $ 8 $ - $ - $ - $ 8
Rental and ancillary services profit margin 35.7% 36.4% 28.2% 23.1% 31.1% 42.2% 38.8% 26.8% 28.9% 34.7% 41.3% 34.0% 33.3% 17.1% 31.8% 45.1% 43.4% 38.3% 29.6% 39.0% 40.7% 38.3% 33.3% 27.8% 35.2% 28.8% -380.0% -20.0% -10.0% -10.3% 3.1% 33.3% 25.0% 19.4% 21.9% 2.9% 12.3% 9.4% 4.4% 7.5% 3.8% 11.0% 9.9% 7.3% 8.1% 4.4% -% -% -% 4.4%
_______________
(1) Net Owner Growth over the last twelve months.
(2) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
(1)Commencing in fiscal year 2024, Net Owner Growth over the last twelve months includes member count for HGV Max and legacy HGV-DRI members only on a consolidated basis.
RE & Fin Seg Adj EBITDA
HILTON GRAND VACATIONS INC.
REAL ESTATE AND FINANCING SEGMENT ADJUSTED EBITDA
(in millions)
2015 2016 * SPIN-OFF FROM HILTON WORLDWIDE * 2017 2018 2019 2020 2021 * DIAMOND ACQUISITION * 2021(1) 2022 2023 * BLUEGREEN ACQUISITION * 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
AS REPORTED
Sales of VOIs, net $ 94 $ 136 $ 125 $ 137 $ 492 $ 115 $ 114 $ 130 $ 149 $ 508 $ 118 $ 143 $ 145 $ 142 $ 548 $ 78 $ 250 $ 99 $ 307 $ 734 $ 125 $ 120 $ 138 $ 126 $ 509 $ 56 $ - $ 24 $ 28 $ 108 $ 33 $ 76 $ 488 $ 286 $ 883 $ 269 $ 361 $ 500 $ 361 $ 1,491 $ 318 $ 355 $ 367 $ 376 $ 1,416 $ 438 $ - $ - $ - $ 438
Sales, marketing, brand and other fees 140 94 118 105 457 118 128 136 117 499 130 144 127 143 544 125 146 152 147 570 141 145 143 144 573 106 13 52 50 221 53 81 118 133 385 119 161 177 163 620 158 173 170 133 634 145 - - - 145
Financing 31 31 33 32 127 32 34 34 34 134 35 36 38 38 147 38 39 40 41 158 41 43 43 43 170 44 43 40 38 165 37 37 53 56 183 64 64 68 71 267 74 76 75 82 307 104 - - - 104
HOA services - - 1 1 2 1 - 1 - 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Real estate sales and financing segment revenues 265 261 277 275 1,078 266 276 301 300 1,143 283 323 310 323 1,239 241 435 291 495 1,462 307 308 324 313 1,252 206 56 116 116 494 123 194 659 475 1,451 452 586 745 595 2,378 550 604 612 591 2,357 687 - - - 687
Cost of VOI sales (61) (43) (40) (29) (173) (38) (28) (44) (42) (152) (33) (34) (40) (41) (148) (19) (61) (29) (101) (210) (36) (32) (24) (35) (127) (14) 1 (8) (7) (28) (3) (21) (130) (59) (213) (40) (65) (102) (67) (274) (50) (48) (43) (53) (194) (48) - - - (48)
Sales and marketing (132) (128) (135) (146) (541) (135) (151) (157) (162) (605) (152) (169) (171) (171) (663) (161) (193) (174) (200) (728) (170) (186) (188) (175) (719) (157) (61) (79) (84) (381) (82) (116) (234) (221) (653) (243) (284) (322) (297) (1,146) (301) (336) (334) (310) (1,281) (401) - - - (401)
Financing (8) (8) (8) (8) (32) (8) (8) (8) (8) (32) (10) (11) (11) (11) (43) (11) (12) (12) (14) (49) (13) (12) (14) (14) (53) (13) (13) (13) (14) (53) (13) (11) (19) (22) (65) (19) (22) (25) (37) (103) (24) (24) (25) (26) (99) (39) - - - (39)
Marketing package stays (5) (5) (5) (2) (17) (5) (6) (7) (5) (23) (6) (10) (7) (6) (29) (8) (8) (8) (7) (31) (9) (11) (9) (6) (35) (8) - (2) (3) (13) (3) (5) (5) (5) (18) (7) (8) (10) (12) (37) (13) (14) (13) (16) (56) (13) - - - (13)
Model unit rental - - - (1) (1) - - - - - - - (1) - (1) - - - (1) (1) - - - (1) (1) - - - - - - - - - - - - - - - - - - - - - - - - -
Share-based compensation 1 1 - - 2 1 1 - - 2 1 - 1 - 2 1 1 - 1 3 1 1 2 1 5 1 2 1 2 6 2 2 3 2 9 3 3 3 2 11 3 3 4 2 12 3 - - - 3
Other adjustment items - - - - - - - - 3 3 - - - 2 2 1 1 (1) - 1 - 1 3 (1) 3 - 1 - 7 8 3 2 6 15 26 7 8 6 15 36 4 4 4 3 15 17 - - - 17
Real estate sales and financing segment Adjusted EBITDA $ 60 $ 78 $ 89 $ 89 $ 316 $ 81 $ 84 $ 85 $ 86 $ 336 $ 83 $ 99 $ 81 $ 96 $ 359 $ 44 $ 163 $ 67 $ 173 $ 447 $ 80 $ 69 $ 94 $ 82 $ 325 $ 15 $ (14) $ 15 $ 17 $ 33 $ 27 $ 45 $ 280 $ 185 $ 537 $ 153 $ 218 $ 295 $ 199 $ 865 $ 169 $ 189 $ 205 $ 191 $ 754 $ 206 $ - $ - $ - $ 206
Real estate sales and financing segment Adjusted EBITDA profit margin 22.6 % 29.9 % 32.1 % 32.4 % 29.3 % 30.5 % 30.4 % 28.2 % 28.7 % 29.4 % 29.3 % 30.7 % 26.1 % 29.7 % 29.0 % 18.3 % 37.5 % 23.0 % 34.9 % 30.6 % 26.1 % 22.4 % 29.0 % 26.2 % 26.0 % 7.3 % (25.0)% 12.9 % 14.7 % 6.7 % 22.0 % 23.2 % 42.5 % 38.9 % 37.0 % 33.8 % 37.2 % 39.6 % 33.4 % 36.4 % 30.7 % 31.3 % 33.5 % 32.3 % 32.0 % 30.0 % - % - % - % 30.0 %
2015 2016 2017 2018 2019 2020 2021 2021(1) 2022 2023 2024
NET CONSTRUCTION DEFERRAL ACTIVITY 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Sales of VOI, net $ (12) $ (7) $ 6 $ 8 $ (5) $ 10 $ (11) $ - $ (4) $ (5) $ (1) $ - $ (3) $ (1) $ (5) $ (66) $ 91 $ (45) $ 153 $ 133 $ - $ (34) $ (15) $ (35) $ (84) $ (47) $ (4) $ (13) $ (21) $ (85) $ (32) $ (42) $ 241 $ (34) $ 133 $ (42) $ (10) $ 86 $ (3) $ 31 $ 4 $ (6) $ (12) $ (21) $ (35) $ 2 $ - $ - $ - $ 2
Cost of VOI sales (4) (1) 1 3 (1) 3 (4) 1 (1) (1) (1) - (1) - (2) (21) 20 (13) 50 36 - (11) (5) (11) (27) (13) - (4) (6) (23) (10) (13) 73 (12) 38 (13) (5) 30 (1) 11 1 (1) (3) (6) (9) (1) - - - (1)
Sales, marketing, general and administrative expense (2) (1) 1 1 (1) 2 (1) - - 1 - - - - - (8) 11 (7) 22 18 - (5) (2) (5) (12) (7) (1) (1) (4) (13) (4) (7) 35 (5) 19 (7) (1) 13 (1) 4 1 (1) (2) (3) (5) - - - - -
Net construction recognitions (deferrals) included real estate sales and financing segment Adjusted EBITDA $ (6) $ (5) $ 4 $ 4 $ (3) $ 5 $ (6) $ (1) $ (3) $ (5) $ - $ - $ (2) $ (1) $ (3) $ (37) $ 60 $ (25) $ 81 $ 79 $ - $ (18) $ (8) $ (19) $ (45) $ (27) $ (3) $ (8) $ (11) $ (49) $ (18) $ (22) $ 133 $ (17) $ 76 $ (22) $ (4) $ 43 $ (1) $ 16 $ 2 $ (4) $ (7) $ (12) $ (21) $ 3 $ - $ - $ - $ 3
_______________
(1) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
Resort & Club Seg Adj EBITDA
HILTON GRAND VACATIONS INC.
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA
(in millions)
2015 2016 * SPIN-OFF FROM HILTON WORLDWIDE* 2017 2018 2019 2020 2021 *DIAMOND ACQUISITION* 2021(1) 2022 2023 *BLUEGREEN ACQUISITION* 2024
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
RESORT AND CLUB SEGMENT
Resort and club management $ 27 $ 27 $ 31 $ 40 $ 125 $ 31 $ 34 $ 33 $ 45 $ 143 $ 36 $ 35 $ 37 $ 50 $ 158 $ 39 $ 37 $ 40 $ 56 $ 172 $ 42 $ 43 $ 45 $ 61 $ 191 $ 44 $ 39 $ 39 $ 44 $ 166 $ 45 $ 48 $ 99 $ 148 $ 340 $ 125 $ 124 $ 130 $ 155 $ 534 $ 131 $ 133 $ 138 $ 167 $ 569 $ 166 $ - $ - $ - $ 166
Rental and ancillary services 42 44 39 39 164 45 49 41 38 173 46 47 45 41 179 51 53 60 54 218 59 60 54 54 227 52 5 20 20 97 32 54 112 144 342 136 171 159 160 626 158 173 171 164 666 181 - - - 181
Marketing package stays 5 5 5 2 17 5 6 7 5 23 6 10 7 6 29 8 8 8 7 31 9 11 9 6 35 8 - 2 3 13 3 5 5 5 18 7 8 10 12 37 13 14 13 16 56 13 - - - 13
Model unit rental - - - 1 1 - - - - - - - 1 - 1 - - - 1 1 - - - 1 1 - - - - - - - - - - - - - - - - - - - - - - - - -
Resort and club management segment revenues 74 76 75 82 307 81 89 81 88 339 88 92 90 97 367 98 98 108 118 422 110 114 108 122 454 104 44 61 67 276 80 107 216 297 700 268 303 299 327 1,197 302 320 322 347 1,291 360 - - - 360
Resort and club management (7) (8) (8) (9) (32) (8) (8) (9) (11) (36) (10) (10) (12) (11) (43) (11) (11) (11) (14) (47) (11) (12) (11) (12) (46) (12) (6) (9) (9) (36) (8) (11) (26) (35) (80) (36) (37) (45) (43) (161) (42) (44) (43) (48) (177) (54) - - - (54)
Rental and ancillary services (27) (28) (28) (30) (113) (26) (30) (30) (27) (113) (27) (31) (30) (34) (122) (28) (30) (37) (38) (133) (35) (37) (36) (39) (147) (37) (24) (24) (22) (107) (31) (36) (84) (116) (267) (132) (150) (144) (153) (579) (152) (154) (154) (152) (612) (173) - - - (173)
Share-based compensation - - 1 - 1 - - 1 - 1 - 1 2 (1) 2 - 1 1 - 2 1 - 1 - 2 - - 1 - 1 - 2 1 2 5 1 2 2 - 5 1 1 1 - 3 1 - - - 1
HOA services (1) - - (1) (2) (1) - (1) - (2) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Other adjustment items - - - 1 1 - - - - - - - - - - - - 1 - 1 - 1 - 1 2 - 1 1 - 2 1 (1) 2 (7) (5) - 1 - - 1 - - - (1) (1) - - - - -
Resort and club segment adjusted EBITDA $ 39 $ 40 $ 40 $ 43 $ 162 $ 46 $ 51 $ 42 $ 50 $ 189 $ 51 $ 52 $ 50 $ 51 $ 204 $ 59 $ 58 $ 62 $ 66 $ 245 $ 65 $ 66 $ 62 $ 72 $ 265 $ 55 $ 15 $ 30 $ 36 $ 136 $ 42 $ 61 $ 109 $ 141 $ 353 $ 101 $ 119 $ 112 $ 131 $ 463 $ 109 $ 123 $ 126 $ 146 $ 504 $ 134 $ - $ - $ - $ 134
Resort and club management segment adjusted EBITDA profit margin 52.7% 52.6% 53.3% 52.4% 52.8% 56.8% 57.3% 51.9% 56.8% 55.8% 58.0% 56.5% 55.6% 52.6% 55.6% 60.2% 59.2% 57.4% 55.9% 58.1% 59.1% 57.9% 57.4% 59.0% 58.4% 52.9% 34.1% 49.2% 53.7% 49.3% 52.5% 57.0% 50.5% 47.5% 50.4% 37.7% 39.3% 37.5% 40.1% 38.7% 36.1% 38.4% 39.1% 42.1% 39.0% 37.2% -% -% -% 37.2%
(1) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
52.884615384615394% 52.5% 37.6865671641791%
Reconciliation of Real Estate M
HILTON GRAND VACATIONS INC.
RECONCILIATION OF NON-GAAP PROFIT MEASURES TO GAAP MEASURE
(in millions)
*DIAMOND ACQUISITION* 2021(1)(2) 2022 2023 *BLUEGREEN ACQUISITION* 2024
3Q 4Q 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Net income attributable to stockholders 75 176 51 73 150 78 352 73 80 92 68 313 (4) - - - (4)
Noncontrolling interest - - - - - - - - - - - - 2 - - - 2
Net income $ 99 $ 75 $ 51 $ 73 $ 150 $ 78 $ 352 73 80 92 68 313 (2) - - - (2)
Interest expense 42 31 33 35 37 37 142 44 44 45 45 178 79 - - - 79
Income tax expense 49 47 20 41 54 14 129 17 35 44 40 136 (11) - - - (11)
Depreciation and amortization 48 55 60 64 57 63 244 51 52 53 57 213 62 - - - 62
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates - - - - 2 - 2 - 1 - 1 2 1 - - - 1
EBITDA 238 208 164 213 300 192 869 185 212 234 211 842 129 - - - 129
Other (gain) loss, net 20 4 (1) 2 (2) 2 1 (1) (3) 1 1 (2) 5 - - - 5
Equity in earnings from unconsolidated affiliates(3) (1) (3) (3) (4) (4) (4) (15) (3) (3) (2) (6) (14) (6) - - - (6)
Impairment expense (reversal) 1 - 3 (3) - 17 17 - 3 - - 3 2 - - - 2
License fee expense 24 23 25 32 33 34 124 30 34 37 37 138 35 - - - 35
Acquisition and integration-related expense 54 23 13 17 19 18 67 17 13 12 26 68 109 - - - 109
General and administrative 41 59 42 66 50 54 212 42 48 40 64 194 45 - - - 45
Profit $ 377 $ 314 $ 243 $ 323 $ 396 $ 313 $ 1,275 $ 270 $ 304 $ 322 $ 333 $ 1,229 $ 319 $ - $ - $ - $ 319
Real estate profit $ 242 $ 139 $ 105 $ 173 $ 253 $ 160 691 $ 125 $ 144 $ 160 $ 146 575 $ 134 $ - $ - $ - 134
Financing profit 34 34 45 42 43 34 164 50 52 50 56 208 65 - - - 65
Resort and club management profit 73 113 89 87 85 112 373 89 89 95 119 392 112 - - - 112
Rental and ancillary services profit 28 28 4 21 15 7 47 6 19 17 12 54 8 - - - 8
Profit $ 377 $ 314 $ 243 $ 323 $ 396 $ 313 $ 1,275 $ 270 $ 304 $ 322 $ 333 $ 1,229 $ 319 $ - $ - $ - $ 319
_______________
(1) On August 2, 2021, we completed the Diamond Acquisition. Accordingly, the three months ended September 30, 2021, includes 59 days of Diamond's results and the twelve months ended December 31, 2021 includes 151 days of Diamond results.
(2) Year-to-date amounts have been intentionally removed for fiscal year 2021, due to the change in definition and calculation for Sales and marketing expense, net that has been impleted starting in the third quarter of 2021.
(3) Excludes impact of interest expense, depreciation and amortization included in quity in earnings from unconsolidated affiliates.

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Hilton Grand Vacations Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 13:55:05 UTC.