2024 Q1 Form 10-K Financial Statement

#000152435824000006 Filed on February 27, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $1.195B $1.194B $4.727B
YoY Change 2.22% 0.51% 1.52%
Cost Of Revenue $594.0M $590.0M $2.340B
YoY Change 6.83% 3.69% 7.59%
Gross Profit $601.0M $604.0M $2.387B
YoY Change -1.96% -2.42% -3.79%
Gross Profit Margin 50.29% 50.59% 50.5%
Selling, General & Admin $286.0M $426.0M $1.096B
YoY Change 2.88% 10.94% 3.79%
% of Gross Profit 47.59% 70.53% 45.92%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $38.00M $36.00M $135.0M
YoY Change 18.75% 5.88% 2.27%
% of Gross Profit 6.32% 5.96% 5.66%
Operating Expenses $286.0M $462.0M $1.096B
YoY Change 2.88% 10.53% 3.79%
Operating Profit $315.0M $142.0M $1.291B
YoY Change -5.97% -29.35% -9.4%
Interest Expense -$40.00M -$39.00M -$145.0M
YoY Change 17.65% 44.44% 22.88%
% of Operating Profit -12.7% -27.46% -11.23%
Other Income/Expense, Net -$1.000M $10.00M -$3.000M
YoY Change -104.76% 400.0% -400.0%
Pretax Income $81.00M $64.00M $398.0M
YoY Change -36.72% -55.86% -31.62%
Income Tax $35.00M $31.00M $146.0M
% Of Pretax Income 43.21% 48.44% 36.68%
Net Earnings $47.00M $35.00M $254.0M
YoY Change -45.98% -60.23% -35.04%
Net Earnings / Revenue 3.93% 2.93% 5.37%
Basic Earnings Per Share $1.32 $6.96
Diluted Earnings Per Share $1.22 $0.82 $6.28
COMMON SHARES
Basic Shares Outstanding 35.18M shares 35.52M shares 36.50M shares
Diluted Shares Outstanding 42.20M shares 43.50M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $237.0M $248.0M $248.0M
YoY Change -22.55% -52.67% -52.67%
Cash & Equivalents $237.0M $248.0M $248.0M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $637.0M $634.0M $634.0M
Prepaid Expenses
Receivables $314.0M $299.0M $299.0M
Other Receivables $90.00M $68.00M $68.00M
Total Short-Term Assets $1.278B $1.249B $1.249B
YoY Change 0.87% -15.38% -15.38%
LONG-TERM ASSETS
Property, Plant & Equipment $1.299B $1.260B $1.337B
YoY Change 6.91% 10.62% 17.38%
Goodwill $3.117B $3.117B
YoY Change 0.0% 0.0%
Intangibles $839.0M $854.0M
YoY Change -6.57% -6.26%
Long-Term Investments
YoY Change
Other Assets $313.0M $326.0M $326.0M
YoY Change 16.79% -1.21% -1.21%
Total Long-Term Assets $8.589B $8.431B $8.431B
YoY Change 3.05% 3.28% 3.28%
TOTAL ASSETS
Total Short-Term Assets $1.278B $1.249B $1.249B
Total Long-Term Assets $8.589B $8.431B $8.431B
Total Assets $9.867B $9.680B $9.680B
YoY Change 2.76% 0.43% 0.43%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $221.0M $362.0M $362.0M
YoY Change -0.45% 1.69% 1.69%
Accrued Expenses $593.0M $548.0M $548.0M
YoY Change 9.81% -11.61% -11.61%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $814.0M $910.0M $910.0M
YoY Change 6.82% -19.75% -19.75%
LONG-TERM LIABILITIES
Long-Term Debt $5.289B $5.145B $5.145B
YoY Change 4.42% 2.37% 2.37%
Other Long-Term Liabilities $1.058B $963.0M $963.0M
YoY Change 10.67% 48.15% 48.15%
Total Long-Term Liabilities $6.347B $6.108B $6.108B
YoY Change 5.41% 7.61% 7.61%
TOTAL LIABILITIES
Total Short-Term Liabilities $814.0M $910.0M $910.0M
Total Long-Term Liabilities $6.347B $6.108B $6.108B
Total Liabilities $7.489B $7.298B $7.298B
YoY Change 5.15% 2.2% 2.17%
SHAREHOLDERS EQUITY
Retained Earnings $763.0M $742.0M
YoY Change 16.67% 25.13%
Common Stock $3.952B $3.956B
YoY Change 0.36% 0.36%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.379B $2.382B $2.382B
YoY Change
Total Liabilities & Shareholders Equity $9.867B $9.680B $9.680B
YoY Change 2.76% 0.43% 0.43%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $47.00M $35.00M $254.0M
YoY Change -45.98% -60.23% -35.04%
Depreciation, Depletion And Amortization $38.00M $36.00M $135.0M
YoY Change 18.75% 5.88% 2.27%
Cash From Operating Activities $3.000M $83.00M $232.0M
YoY Change -106.0% -41.55% -55.56%
INVESTING ACTIVITIES
Capital Expenditures $16.00M $26.00M $118.0M
YoY Change -56.76% -10.34% 81.54%
Acquisitions
YoY Change
Other Investing Activities -$4.000M -$1.000M $0.00
YoY Change -75.0% -100.0%
Cash From Investing Activities -$69.00M -$27.00M -$112.0M
YoY Change 86.49% -18.18% -800.0%
FINANCING ACTIVITIES
Cash Dividend Paid $54.00M $106.0M
YoY Change 0.0% 7.07%
Common Stock Issuance & Retirement, Net $286.0M
YoY Change -59.2%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $43.00M 13.00M -$401.0M
YoY Change -122.16% -93.47% -17.49%
NET CHANGE
Cash From Operating Activities $3.000M 83.00M $232.0M
Cash From Investing Activities -$69.00M -27.00M -$112.0M
Cash From Financing Activities $43.00M 13.00M -$401.0M
Net Change In Cash -$24.00M 69.00M -$280.0M
YoY Change -91.43% -77.6% -649.02%
FREE CASH FLOW
Cash From Operating Activities $3.000M $83.00M $232.0M
Capital Expenditures $16.00M $26.00M $118.0M
Free Cash Flow -$13.00M $57.00M $114.0M
YoY Change -85.06% -49.56% -75.05%

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BASIS OF PRESENTATION <div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Consolidated Financial Statements present the results of operations, financial position and cash flows of Marriott Vacations Worldwide Corporation (referred to in this report as (i) “we,” “us,” “Marriott Vacations Worldwide,” “MVW,” or the “Company,” which includes our consolidated subsidiaries except where the context of the reference is to a single corporate entity, or (ii) “MVWC,” which shall refer only to Marriott Vacations Worldwide Corporation, without its consolidated subsidiaries). In order to make this report easier to read, we refer throughout to (i) our Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Income as our “Income Statements,” (iii) our Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Consolidated Statements of Cash Flows as our “Cash Flows.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Consolidated Financial Statements, unless otherwise noted. We also refer to Marriott International, Inc. as “Marriott International” and Marriott International’s Marriott Bonvoy customer loyalty program as “Marriott Bonvoy.” We use certain other terms that are defined within these Financial Statements.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Financial Statements presented herein and discussed below include 100% of the assets, liabilities, revenues, expenses, and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and those variable interest entities (“VIEs”) for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. References in these Financial Statements to net income or loss attributable to common stockholders and MVW stockholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entities and are reported separately. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation. </span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These Financial Statements reflect our financial position, results of operations, and cash flows as prepared in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, allocations of the purchase price paid in business combinations, cost of vacation ownership products, inventory valuation, goodwill and intangibles valuation, accounting for acquired vacation ownership notes receivable, vacation ownership notes receivable reserves, income taxes, and loss contingencies. Actual results could differ from our estimates, and such differences may be material.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have reclassified certain prior year amounts to conform with our current year presentation.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Acquisition of Welk</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On April 1, 2021 (the “Welk Acquisition Date”), we completed the acquisition of Welk Hospitality Group, Inc. (“Welk”) through a series of transactions (the “Welk Acquisition”), after which Welk became our indirect wholly-owned subsidiary. We refer to the business and brand that we acquired in the Welk Acquisition as “Legacy-Welk.” The Financial Statements in this report for fiscal year 2021 include Welk’s results of operations for the last three quarters of 2021. During 2023, we rebranded all Legacy-Welk resorts as Hyatt Vacation Club resorts. See Footnote 3 “Acquisitions and Dispositions” for more information on the Welk Acquisition.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Acquisition of ILG and Disposition of VRI America</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On September 1, 2018 we completed the acquisition of ILG, LLC, formerly known as ILG, Inc. (“ILG”), through a series of transactions (the “ILG Acquisition”), after which ILG became our indirect wholly-owned subsidiary. We refer to our business associated with brands that existed prior to the ILG Acquisition as “Legacy-MVW” and to ILG’s business and brands that we acquired as “Legacy-ILG.” The businesses acquired from ILG that we currently operate as part of our Vacation Ownership business include Vistana Signature Experiences, which includes vacation ownership products branded as Sheraton or Westin, and Hyatt Vacation Ownership. The businesses acquired from ILG that we currently operate as part of our Exchange &amp; Third-Party Management business include Interval International and Aqua-Aston Hospitality. As part of the ILG Acquisition, we also acquired the Vacation Resorts International (“VRI”) and Trading Places International (“TPI”) businesses (together, the “VRI Americas” business). Our Financial Statements reflect the disposition of the VRI Americas business on April 29, 2022. See Footnote 3 “Acquisitions and Dispositions” for more information on the disposition of VRI Americas.</span></div>
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