Marriott Vacations Worldwide Corp (VAC) Reports Q3 2023 Earnings: Net Income Drops to $42 Million
Marriott Vacations Worldwide Corp (NYSE:VAC) reported Q3 2023 net income of $42 million, down from $109 million in the prior year.
Consolidated Vacation Ownership contract sales were $438 million, with an estimated $28 million impact from the Maui wildfires.
The company repurchased 793,300 shares of its common stock for $86 million during the quarter.
Marriott Vacations Worldwide Corp (NYSE:VAC) updated its full year outlook.
Marriott Vacations Worldwide Corp (NYSE:VAC) released its third quarter 2023 financial results on November 1, 2023. The company reported a net income attributable to common shareholders of $42 million, compared to $109 million in the prior year. The decrease in net income was primarily due to a $59 million charge to its loan loss provision in the third quarter, resulting in a $36 million negative impact to net income.
Financial Performance
Consolidated Vacation Ownership contract sales were $438 million, and volume per guest (VPG) increased $87 sequentially from the second quarter, or 2%, to $4,055. The company estimates that the Maui wildfires negatively impacted contract sales by $28 million and VPG by approximately $66, or 2%, in the quarter.
Adjusted net income attributable to common shareholders was $48 million and adjusted fully diluted earnings per share was $1.20. Adjusted EBITDA was $150 million. The company estimates the Maui wildfires negatively impacted Adjusted EBITDA by $24 million in the quarter and the increased loan loss provision impacted Adjusted EBITDA by $49 million.
Share Repurchase and Dividend
The company repurchased 793,300 shares of its common stock for $86 million during the quarter and declared a $0.72 per share quarterly dividend, which was paid in October.
Outlook
Marriott Vacations Worldwide Corp (NYSE:VAC) updated its full year outlook, expecting the wildfires to negatively impact its fourth quarter contract sales by approximately $32 to $37 million, its Net income attributable to common shareholders by approximately $19 to $22 million and its Adjusted EBITDA by approximately $26 to $31 million.
Company Commentary
John Geller, president and chief executive officer, commented on the company's performance, stating
We had a difficult quarter between the devastating wildfires in Maui and default rates on our loan portfolio remaining above our recent experience. However, our loan delinquencies are stabilizing and with Maui reopen for tourism we have started to see our resort occupancies recover."
Explore the complete 8-K earnings release (here) from Marriott Vacations Worldwide Corp for further details.
This article first appeared on GuruFocus.
