MARRIOTT VACATIONS WORLDWIDE CORPORATION ORLANDO, Fla., July 21, 2016 /PRNewswire/ -- Marriott Vacations Worldwide Corporation (NYSE: VAC) today reported second quarter financial results and reaffirmed its guidance for the full year 2016.
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"Our second quarter results, including contract sales, were solid and in line with our expectations," said Stephen P. Weisz, president and chief executive officer. "And even more importantly, contract sales growth gained momentum as we moved through the second half of the quarter. Additionally, tour activations for the second half of 2016 are substantially ahead of this time last year, and four of our six new sales centers are open and gaining momentum, giving us confidence that we will achieve our 2016 goals and are well positioned for solid growth in the years to come."
Second quarter 2016 highlights:
-- Net income was $36.3 million, or $1.26 fully diluted earnings per share
(EPS), compared to net income of $34.0 million, or $1.05 fully diluted
EPS, in the second quarter of 2015, an increase of 6.7 percent and 20.0
percent, respectively.
-- Adjusted EBITDA totaled $64.2 million, an increase of $2.5 million
year-over-year, or 4.1 percent.
-- Adjusted fully diluted EPS was $1.08 compared to $0.91 in the second
quarter of 2015, an increase of 18.7 percent.
-- Company vacation ownership contract sales (which exclude residential
sales) were $166.0 million, slightly ahead of prior year.
-- Company development margin percentage was 23.1 percent compared to 21.3
percent in the second quarter of 2015. Company adjusted development
margin percentage was 22.8 percent compared to 21.0 percent in the
second quarter of 2015.
-- During the second quarter of 2016, the company repurchased nearly 1.5
million shares of its common stock for $90.1 million.
-- The company completed the disposition of the non-timeshare portion of
its Surfers Paradise, Australia property for approximately $50.9 million
in gross cash proceeds.
-- The company completed a bulk sale of the remaining 19 residential units
at its San Francisco property for $19.5 million in gross cash proceeds.
Non-GAAP financial measures, such as adjusted EBITDA, adjusted net income, adjusted fully diluted earnings per share, and adjusted development margin are reconciled and adjustments are shown and described in further detail on pages A-10 and A-11 of the Financial Schedules that follow.
Second quarter 2016 Results
Company Results
Second quarter 2016 company net income was $36.3 million, a $2.3 million increase from the second quarter of 2015. These results were driven mainly by a $10.5 million gain on the bulk sale of the remaining 19 units at the San Francisco property, $3.0 million of higher resort management and other services revenues net of expenses, $1.7 million of higher financing revenues net of expenses, a $1.7 million reversal of a liability associated with the disposition of a golf course and related assets in Kauai, Hawaii, and $0.7 million of higher development margin. These increases were partially offset by an $8.7 million gain associated with the sale of undeveloped land in Kauai, Hawaii in the prior year, $1.8 million of lower rental revenues net of expenses, $1.7 million of higher general and administrative costs, a $1.5 million loss on the disposition of the non-timeshare portion of the Surfers Paradise, Australia property, $0.7 million of higher acquisition related transaction costs, and $0.6 million of higher royalty fees.
Total company vacation ownership contract sales were $166.0 million, $0.1 million higher than the second quarter of last year. These results reflect increased contract sales of $2.6 million and $2.5 million, respectively, from the company's Europe and Asia Pacific segments, partially offset by $5.0 million of lower contract sales in the company's North America segment, as the first half of the prior year second quarter benefited from enhancements the company made to owner recognition levels. Also contributing to the decrease, the company's Latin America sales channels were down roughly $2.1 million compared to the second quarter of last year, as the company continued to be impacted by a stronger U.S. dollar.
Development margin was $33.8 million, a $0.7 million increase from the second quarter of 2015. Development margin percentage was 23.1 percent compared to 21.3 percent in the prior year quarter, reflecting $9.1 million of lower product costs driven primarily by $6.9 million of favorable product cost true-up activity year-over-year, offset partially by $3.2 million related to higher usage of Plus Points for sales incentives, $3.0 million from higher sales reserve activity mainly associated with a 30 percent, or 12.5 percentage point, increase in financing propensity, and $2.2 million of higher marketing and sales costs driven primarily from start-up costs associated with the company's new sales distributions. Adjusted development margin percentage, which excludes the impact of revenue reportability year-over-year, was 22.8 percent in the second quarter of 2016 compared to 21.0 percent in the second quarter of 2015.
Rental revenues totaled $75.1 million, a $2.4 million increase from the second quarter of 2015. Results were driven mainly by $1.9 million of revenue from the non-timeshare portion of the Surfers Paradise, Australia property the company sold at the end of the second quarter and $1.8 million from a 3 percent increase in transient keys rented, partially offset by $1.6 million from a 3 percent decrease in average transient rate resulting from the mix of inventory available to rent. Rental revenues net of expenses were $9.0 million, a $1.8 million decrease from the second quarter of 2015, primarily reflecting a $0.7 million loss from the portion of the Australia property sold in the quarter as well as higher operating expenses primarily on increased transient keys rented in the quarter.
Resort management and other services revenues totaled $80.9 million, a $6.9 million increase from the second quarter of 2015. Resort management and other services revenues, net of expenses, totaled $31.6 million, a $3.0 million increase, or 10.6 percent, from the second quarter of 2015.
Financing revenues totaled $28.7 million, a $0.4 million increase from the second quarter of 2015. Financing revenues, net of expenses and consumer financing interest expense, were $18.7 million, a $1.7 million increase, or 10.1 percent, from the second quarter of 2015.
General and administrative expenses were $24.6 million in the second quarter of 2016, a $1.7 million increase from the second quarter of 2015, driven by higher spending related to enhancements to the company's owner facing technology as well as inflationary cost increases.
Net income was $36.3 million, compared to net income of $34.0 million in the second quarter of 2015, an increase of $2.3 million, or 6.7 percent. Adjusted EBITDA was $64.2 million in the second quarter of 2016, a $2.5 million, or 4.1 percent, increase from $61.7 million in the second quarter of 2015.
Segment Results
North America
North America vacation ownership contract sales were $145.6 million in the second quarter of 2016, a decrease of $5.0 million, or 3.3 percent, from the prior year period, as the first half of the prior year second quarter benefited from enhancements the company made to owner recognition levels. Also contributing to the decrease, the company's Latin America sales channels were down roughly $2.1 million compared to the second quarter of last year, as the company continued to be impacted by a stronger U.S. dollar.
Total tours in the second quarter of 2016 increased 0.3 percent, driven by a 4 percent increase in first time buyer tours, partially offset by a 2 percent decline in owner tours driven in part by the impact of the enhancements to the owner recognition levels in the first half of last year's second quarter. VPG decreased $20 to $3,384 in the second quarter of 2016 from the second quarter of 2015.
Second quarter 2016 North America segment financial results were $111.7 million, an increase of $7.1 million from the second quarter of 2015. The increase was driven primarily by the $10.5 million gain on the bulk sale at the San Francisco property, $3.0 million of higher development margin, $2.9 million of higher resort management and other services revenues net of expenses, the $1.7 million reversal of a liability associated with the disposition in Kauai, Hawaii, and $0.5 million of higher financing revenues. These increases were partially offset by the $8.7 million gain in the prior year, $1.8 million of acquisition related transaction costs, $0.6 million of higher royalty fees, and $0.6 million of lower rental revenues net of expenses. North America adjusted segment financial results, which exclude the transaction costs in the current year and the gains and other income in both years, were $101.2 million in the second quarter of 2016, a $5.3 million increase from $96.0 million of adjusted segment results in the second quarter of 2015.
Development margin was $36.5 million, a $3.0 million increase from the second quarter of 2015. Development margin percentage was 27.5 percent compared to 23.6 percent in the prior year quarter, reflecting $9.0 million of lower product costs driven primarily by $6.5 million of favorable product cost true-up activity year-over-year, offset partially by $3.2 million related to higher usage of Plus Points for sales incentives, $1.6 million from higher sales reserve activity mainly associated with a 30 percent, or 12.1 percentage point, increase in financing propensity, and $1.3 million of higher marketing and sales costs driven primarily from start-up costs associated with the company's new sales distributions. Adjusted development margin, which excludes the impact of revenue reportability year-over-year, was $34.1 million, a $1.8 million increase from the prior year quarter. Adjusted development margin percentage was 26.5 percent in the second quarter of 2016 compared to 23.0 percent in the second quarter of 2015.
Asia Pacific
Total vacation ownership contract sales in the segment were $10.5 million, an increase of $2.5 million, or roughly 31 percent, from the second quarter of 2015. Segment financial results were a loss of $2.5 million, a $2.4 million decrease from the second quarter of 2015, driven by a $1.5 million loss on the sale of the non-timeshare portion of the Surfers Paradise property, $1.5 million of lower development margin, and $0.6 million of lower rental revenues net of expenses, partially offset by $1.3 million of transaction related costs in the prior year. The lower development margin reflected the impact of start-up costs in the current year associated with the company's new sales distribution in Surfers Paradise, Australia, partially offset by the increase in contract sales. The lower rental revenues net of expenses were driven by losses from operating the Surfers Paradise property.
Europe
Second quarter 2016 contract sales were $9.9 million, an increase of $2.6 million, or more than 35 percent, from the second quarter of 2015. Segment financial results were $2.2 million, an $0.8 million decrease from the second quarter of 2015, driven by $0.5 million of lower rental revenues net of expenses.
Share Repurchase Program and Dividends
During the second quarter of 2016, the company repurchased nearly 1.5 million shares of its common stock for a total of $90.1 million under its share repurchase program, of which nearly 1.2 million shares were purchased under an accelerated share repurchase agreement. In addition, the company paid a quarterly cash dividend of $8.5 million. Through the end of the second quarter, the company returned nearly $190 million to its shareholders through the repurchase of 2.8 million shares for $163.4 million and more than $26 million in dividends paid.
Balance Sheet and Liquidity
On June 17, 2016, cash and cash equivalents totaled $97.4 million. Since the beginning of the year, real estate inventory balances increased $33.9 million to $697.9 million, including $296.5 million of finished goods, $76.6 million of work-in-progress, and $324.8 million of land and infrastructure. The company had $746.3 million in gross debt outstanding at the end of the second quarter, an increase of $58.2 million from year-end 2015, consisting primarily of $691.8 million in gross non-recourse securitized notes and $45.0 million in gross debt outstanding under the company's revolving corporate credit facility. In addition, $40.0 million of gross mandatorily redeemable preferred stock of a subsidiary of the company was outstanding at the end of the second quarter of 2016.
As of June 17, 2016, the company had approximately $151.7 million in available capacity under its revolving credit facility after taking into account outstanding letters of credit and approximately $104.8 million of gross vacation ownership notes receivable eligible for securitization in its warehouse credit facility.
Outlook
Pages A-1 through A-11 of the Financial Schedules reconcile the non-GAAP financial measures set forth below to the following full year 2016 expected GAAP results:
Net Income $130 million to $140 million
Fully diluted EPS $4.57 to $4.92
Net cash provided by
operating activities $136 million to $146 million
The company is reaffirming the following guidance for
the full year 2016:
Adjusted net income $126 million to $136 million
Adjusted fully diluted
EPS $4.43 to $4.78
Adjusted EBITDA $261 million to $276 million
Adjusted free cash flow $135 million to $155 million
Contract sales 4 percent to 8 percent
Adjusted fully diluted EPS increased from the previous guidance of $4.31 to $4.66 due entirely to a reduction in shares outstanding.
Second quarter 2016 Earnings Conference Call
The company will hold a conference call at 10:00 a.m. ET today to discuss these results and its guidance for full year 2016. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the company's website at www.marriottvacationsworldwide.com.
An audio replay of the conference call will be available for seven days and can be accessed at (877) 660-6853 or (201) 612-7415 for international callers. The conference ID for the recording is 13640097. The webcast will also be available on the company's website.
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global pure-play vacation ownership company, offering a diverse portfolio of quality products, programs and management expertise with over 60 resorts. Its brands include Marriott Vacation Club, The Ritz-Carlton Destination Club and Grand Residences by Marriott. Since entering the industry in 1984 as part of Marriott International, Inc., the company earned its position as a leader and innovator in vacation ownership products. The company preserves high standards of excellence in serving its customers, investors and associates while maintaining a long-term relationship with Marriott International. For more information, please visit www.marriottvacationsworldwide.com.
Note on forward-looking statements: This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements about future operating results, estimates, and assumptions, and similar statements concerning anticipated future events and expectations that are not historical facts. The company cautions you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including volatility in the economy and the credit markets, supply and demand changes for vacation ownership and residential products, competitive conditions, the availability of capital to finance growth, and other matters referred to under the heading "Risk Factors" contained in the company's most recent Annual Report on Form 10-K filed with the U.S Securities and Exchange Commission (the "SEC") and in subsequent SEC filings, any of which could cause actual results to differ materially from those expressed in or implied in this press release. These statements are made as of July 21, 2016 and the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Financial Schedules Follow
MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 2, 2016
TABLE OF CONTENTS
Consolidated Statements of Income - 12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015 A-1
Adjusted Net Income, Adjusted Earnings Per Share -Diluted, EBITDA and Adjusted EBITDA -12 Weeks and 24 Weeks Ended June 17, 2016 and June 19,
2015 A-2
North America Segment Financial Results - 12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015 A-3
Asia Pacific Segment Financial Results - 12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015 A-4
Europe Segment Financial Results - 12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015 A-5
Corporate and Other Segment Financial Results - 12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015 A-6
Consolidated Contract Sales to Sale of Vacation Ownership Products and Adjusted Development Margin
(Adjusted Sale of Vacation Ownership Products Net of Expenses) - 12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015 A-7
North America Contract Sales to Sale of Vacation Ownership Products and Adjusted Development Margin
(Adjusted Sale of Vacation Ownership Products Net of Expenses) - 12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015 A-8
2016 Outlook - Adjusted Net Income, Adjusted Earnings Per Share - Diluted, Adjusted EBITDA and Adjusted Free Cash Flow A-9
Non-GAAP Financial Measures A-10
Consolidated Balance Sheets A-12
Consolidated Statements of Cash Flows A-13
A-1
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015
(In thousands, except per share amounts)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Revenues
Sale of vacation
ownership products $146,450 $155,370 $284,819 $339,276
Resort management and
other services 80,930 74,063 150,559 138,480
Financing 28,654 28,294 57,878 57,346
Rental 75,069 72,642 155,357 148,841
Cost reimbursements 98,842 92,458 206,375 193,764
Total
revenues 429,945 422,827 854,988 877,707
------- ------- ------- -------
Expenses
Cost of vacation
ownership products 33,753 45,119 69,370 110,081
Marketing and sales 78,919 77,137 157,331 157,132
Resort management and
other services 49,311 45,480 95,108 87,889
Financing 4,864 6,085 9,493 10,990
Rental 66,028 61,835 130,688 121,993
General and
administrative 24,588 22,892 49,885 45,669
Organizational and
separation related - 101 - 293
Litigation settlement - 26 (303) (236)
Consumer financing
interest 5,117 5,248 10,479 11,269
Royalty fee 14,026 13,431 27,383 26,431
Cost reimbursements 98,842 92,458 206,375 193,764
Total
expenses 375,448 369,812 755,809 765,275
------- ------- ------- -------
Gains and other income 10,668 8,625 10,675 9,512
Interest expense (2,087) (3,009) (4,069) (5,983)
Other (1,911) (1,187) (4,453) (1,174)
Income
before
income
taxes 61,167 57,444 101,332 114,787
Provision for income taxes (24,858) (23,403) (40,615) (46,692)
Net income $36,309 $34,041 $60,717 $68,095
======= ======= ======= =======
Earnings per share - Basic $1.28 $1.07 $2.11 $2.12
===== ===== ===== =====
Earnings per share - Diluted $1.26 $1.05 $2.08 $2.08
===== ===== ===== =====
Basic Shares 28,345 31,858 28,734 32,078
Diluted Shares 28,834 32,517 29,244 32,760
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Contract Sales
Vacation ownership $165,992 $165,938 $319,486 $335,888
Residential products - - - 28,420
--- --- --- ------
Total
contract
sales $165,992 $165,938 $319,486 $364,308
======== ======== ======== ========
NOTE: Earnings per share -
Basic and Earnings per
share -Diluted are
calculated using whole
dollars.
A-2
MARRIOTT VACATIONS WORLDWIDE CORPORATION
12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015
(In thousands, except per share amounts)
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE - DILUTED
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Net income $36,309 $34,041 $60,717 $68,095
Less certain items:
Transaction costs 2,005 1,272 4,575 1,272
Operating results from the sold
portion of the Surfers Paradise,
Australia property 190 - (275) -
Litigation settlement - 26 (303) (236)
Gains and other income (10,668) (8,625) (10,675) (9,512)
Asia Pacific bulk sale - - - (5,915)
Organizational and separation related - 101 - 293
--- --- --- ---
Certain items before
depreciation and
provision for income
taxes (1) (8,473) (7,226) (6,678) (14,098)
Depreciation on the sold portion of
the Surfers Paradise, Australia
property 188 - 469 -
Provision for income taxes on certain
items 3,261 2,804 2,482 3,779
Adjusted net income ** $31,285 $29,619 $56,990 $57,776
======= ======= ======= =======
Earnings per share - Diluted $1.26 $1.05 $2.08 $2.08
===== ===== ===== =====
Adjusted earnings per share - Diluted ** $1.08 $0.91 $1.95 $1.76
===== ===== ===== =====
Diluted Shares 28,834 32,517 29,244 32,760
EBITDA AND ADJUSTED EBITDA
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Net income $36,309 $34,041 $60,717 $68,095
Interest expense (2) 2,087 3,009 4,069 5,983
Tax provision 24,858 23,403 40,615 46,692
Depreciation and amortization 5,052 4,493 10,177 8,558
EBITDA ** 68,306 64,946 115,578 129,328
------ ------ ------- -------
Non-cash share-based compensation (3) 4,332 3,945 6,856 6,588
Certain items before depreciation and provision for income taxes (1) (8,473) (7,226) (6,678) (14,098)
Adjusted EBITDA ** $64,165 $61,665 $115,756 $121,818
======= ======= ======== ========
** Denotes non-GAAP financial
measures. Please see pages A-10
and A-11 for additional
information about our reasons for
providing these alternative
financial measures and limitations
on their use.
(1) Please see pages A-10 and A-
11 for additional information
regarding these items. The certain
items adjustment for the Adjusted
EBITDA reconciliation excludes
depreciation and the provision for
income taxes on certain items
included in the Adjusted Net
Income reconciliation.
2 Interest expense excludes
consumer financing interest
expense.
(3) Beginning with the first
quarter of 2016, non-cash share-
based compensation expense is
excluded from our Adjusted EBITDA,
and prior period presentation has
been recast for consistency.
Please see pages A-10 and A-11
for additional information.
A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA SEGMENT
12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Revenues
Sale of vacation ownership
products $132,473 $142,148 $257,157 $283,876
Resort management and other
services 69,357 66,194 131,022 124,769
Financing 26,853 26,354 54,261 53,410
Rental 65,629 65,756 138,137 137,471
Cost reimbursements 90,174 84,037 189,356 176,891
Total revenues 384,486 384,489 769,933 776,417
------- ------- ------- -------
Expenses
Cost of vacation ownership
products 29,080 40,834 59,742 81,335
Marketing and sales 66,911 67,837 135,226 136,854
Resort management and other
services 39,337 39,101 77,489 76,069
Rental 55,593 55,128 111,549 109,739
Organizational and
separation related - 115 - 254
Reversal of litigation
expense - (108) (303) (370)
Royalty fee 2,254 1,686 3,940 2,946
Cost reimbursements 90,174 84,037 189,356 176,891
Total expenses 283,349 288,630 576,999 583,718
------- ------- ------- -------
Gains and other income 12,317 8,658 12,324 9,538
Other (1,733) 86 (4,013) 102
Segment
financial
results $111,721 $104,603 $201,245 $202,339
======== ======== ======== ========
Segment financial results $111,721 $104,603 $201,245 $202,339
Less certain items:
Transaction costs 1,829 - 4,137 -
Reversal of litigation
expense - (108) (303) (370)
Gains and other income (12,317) (8,658) (12,324) (9,538)
Organizational and
separation related - 115 - 254
Certain items (10,488) (8,651) (8,490) (9,654)
Adjusted
segment
financial
results ** $101,233 $95,952 $192,755 $192,685
======== ======= ======== ========
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Contract Sales
Vacation ownership $145,600 $150,605 $285,250 $306,598
-------- -------- -------- --------
Total contract
sales $145,600 $150,605 $285,250 $306,598
======== ======== ======== ========
** Denotes non-GAAP
financial measures. Please
see pages A-10 and A-11
for additional information
about our reasons for
providing these alternative
financial measures and
limitations on their use.
A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ASIA PACIFIC SEGMENT
12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Revenues
Sale of vacation ownership products $8,110 $7,575 $16,635 $43,853
Resort management and other services 4,573 964 8,070 1,827
Financing 1,007 1,043 1,988 2,049
Rental 4,828 1,503 10,449 3,855
Cost reimbursements 685 632 1,558 1,498
Total revenues 19,203 11,717 38,700 53,082
------ ------ ------ ------
Expenses
Cost of vacation ownership products 1,597 1,803 3,306 23,799
Marketing and sales 6,695 4,432 12,906 9,989
Resort management and other services 4,226 655 7,778 1,505
Rental 6,766 2,794 12,554 5,290
Royalty fee 179 150 325 307
Cost reimbursements 685 632 1,558 1,498
Total expenses 20,148 10,466 38,427 42,388
------ ------ ------ ------
Losses and other expense (1,498) (33) (1,498) (30)
Other (21) (1,273) (229) (1,276)
Segment
financial
results $(2,464) $(55) $(1,454) $9,388
======= ==== ======= ======
Segment financial results $(2,464) $(55) $(1,454) $9,388
Less certain items:
Transaction costs 19 1,272 227 1,272
Operating results from the sold
portion of the Surfers Paradise,
Australia property 378 - 194 -
Losses and other expense 1,498 33 1,498 30
Asia Pacific bulk sale - - - (5,915)
Certain items 1,895 1,305 1,919 (4,613)
----- ----- ----- ------
Adjusted
segment
financial
results ** $(569) $1,250 $465 $4,775
===== ====== ==== ======
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Contract Sales
Vacation ownership $10,454 $7,992 $19,880 $16,651
Residential products - - - 28,420
--- --- --- ------
Total contract sales $10,454 $7,992 $19,880 $45,071
======= ====== ======= =======
** Denotes non-GAAP
financial measures. Please
see pages A-10 and A-11
for additional information
about our reasons for
providing these alternative
financial measures and
limitations on their use.
A-5
MARRIOTT VACATIONS WORLDWIDE CORPORATION
EUROPE SEGMENT
12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Revenues
Sale of vacation ownership
products $5,867 $5,647 $11,027 $11,547
Resort management and other
services 7,000 6,905 11,467 11,884
Financing 794 897 1,629 1,887
Rental 4,612 5,383 6,771 7,515
Cost reimbursements 7,983 7,789 15,461 15,375
Total revenues 26,256 26,621 46,355 48,208
------ ------ ------ ------
Expenses
Cost of vacation ownership
products 1,268 1,233 2,559 2,085
Marketing and sales 5,313 4,868 9,199 10,289
Resort management and other
services 5,748 5,724 9,841 10,315
Rental 3,669 3,913 6,585 6,964
Royalty fee 118 88 167 164
Cost reimbursements 7,983 7,789 15,461 15,375
Total expenses 24,099 23,615 43,812 45,192
------ ------ ------ ------
Gains and other income - - - 4
Segment
financial
results $2,157 $3,006 $2,543 $3,020
====== ====== ====== ======
Segment financial results $2,157 $3,006 $2,543 $3,020
Less certain items:
Gains and other income - - - (4)
Certain items - - - (4)
--- --- --- ---
Adjusted
segment
financial
results ** $2,157 $3,006 $2,543 $3,016
====== ====== ====== ======
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Contract Sales
Vacation ownership $9,938 $7,341 $14,356 $12,639
------ ------ ------- -------
Total contract
sales $9,938 $7,341 $14,356 $12,639
====== ====== ======= =======
** Denotes non-GAAP
financial measures. Please
see pages A-10 and A-11
for additional information
about our reasons for
providing these alternative
financial measures and
limitations on their use.
A-6
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CORPORATE AND OTHER
12 Weeks and 24 Weeks Ended June 17, 2016 and June 19, 2015
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Expenses
Cost of vacation ownership
products $1,808 $1,249 $3,763 $2,862
Financing 4,864 6,085 9,493 10,990
General and administrative 24,588 22,892 49,885 45,669
Organizational and separation
related - (14) - 39
Litigation settlement - 134 - 134
Consumer financing interest 5,117 5,248 10,479 11,269
Royalty fee 11,475 11,507 22,951 23,014
Total expenses 47,852 47,101 96,571 93,977
------ ------ ------ ------
Losses and other expense (151) - (151) -
Interest expense (2,087) (3,009) (4,069) (5,983)
Other (157) - (211) -
Financial
results $(50,247) $(50,110) $(101,002) $(99,960)
======== ======== ========= ========
Financial results $(50,247) $(50,110) $(101,002) $(99,960)
Less certain items:
Transaction costs 157 - 211 -
Litigation settlement - 134 - 134
Losses and other expense 151 - 151 -
Organizational and separation
related - (14) - 39
Certain items 308 120 362 173
--- --- --- ---
Adjusted
financial
results ** $(49,939) $(49,990) $(100,640) $(99,787)
======== ======== ========= ========
** Denotes non-GAAP
financial measures. Please
see pages A-10 and A-11
for additional information
about our reasons for
providing these alternative
financial measures and
limitations on their use.
A-7
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO SALE OF VACATION OWNERSHIP PRODUCTS
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Contract sales
Vacation ownership $165,992 $165,938 $319,486 $335,888
Residential products - - - 28,420
Total contract
sales 165,992 165,938 319,486 364,308
------- ------- ------- -------
Revenue recognition adjustments:
Reportability(1) 1,179 1,440 1,965 (73)
Sales Reserve (2) (11,352) (7,179) (19,575) (15,546)
Other (3) (9,369) (4,829) (17,057) (9,413)
Sale of vacation ownership products $146,450 $155,370 $284,819 $339,276
======== ======== ======== ========
(1) Adjustment for lack of
required downpayment or contract
sales in rescission period.
(2) Represents allowance for bad
debts for our financed vacation
ownership product sales, which we
also refer to as sales reserve.
(3) Adjustment for sales
incentives that will not be
recognized as Sale of vacation
ownership products revenue.
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED ADJUSTED DEVELOPMENT MARGIN (ADJUSTED SALE OF VACATION OWNERSHIP PRODUCTS NET OF EXPENSES)
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Sale of vacation ownership products $146,450 $155,370 $284,819 $339,276
Less:
Cost of vacation ownership products 33,753 45,119 69,370 110,081
Marketing and sales 78,919 77,137 157,331 157,132
Development margin 33,778 33,114 58,118 72,063
Certain items (1) - - - (5,915)
Revenue recognition reportability adjustment (726) (819) (1,326) 27
---- ---- ------ ---
Adjusted development margin** $33,052 $32,295 $56,792 $66,175
======= ======= ======= =======
Development margin percentage (2) 23.1% 21.3% 20.4% 21.2%
Adjusted development margin percentage 22.8% 21.0% 20.1% 21.3%
** Denotes non-GAAP financial
measures. Please see pages A-
10 and A-11 for additional
information about our reasons
for providing these alternative
financial measures and
limitations on their use.
1 Certain items adjustment in
the 24 weeks ended June 19,
2015, represents $5.9 million
of development margin from the
disposition of units in Macau
as whole ownership residential
units rather than through our
Marriott Vacation Club, Asia
Pacific points program.
(2) Development margin
percentage represents
Development margin divided by
Sale of vacation ownership
products. Development margin
percentage is calculated using
whole dollars.
A-8
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA CONTRACT SALES TO SALE OF VACATION OWNERSHIP PRODUCTS
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Contract sales
Vacation
ownership $145,600 $150,605 $285,250 $306,598
Total
contract
sales 145,600 150,605 285,250 306,598
------- ------- ------- -------
Revenue recognition adjustments:
Reportability(1) 3,783 1,942 3,871 (1,502)
Sales Reserve
(2) (7,631) (5,651) (15,037) (11,985)
Other (3) (9,279) (4,748) (16,927) (9,235)
Sale of vacation ownership products $132,473 $142,148 $257,157 $283,876
======== ======== ======== ========
(1) Adjustment for lack of
required downpayment or contract
sales in rescission period.
(2) Represents allowance for bad
debts for our financed vacation
ownership product sales, which we
also refer to as sales reserve.
(3) Adjustment for sales
incentives that will not be
recognized as Sale of vacation
ownership products revenue.
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA ADJUSTED DEVELOPMENT MARGIN (ADJUSTED SALE OF VACATION OWNERSHIP PRODUCTS NET OF EXPENSES)
(In thousands)
12 Weeks Ended 24 Weeks Ended
-------------- --------------
June 17, 2016 June 19, 2015 June 17, 2016 June 19, 2015
------------- ------------- ------------- -------------
Sale of vacation ownership products $132,473 $142,148 $257,157 $283,876
Less:
Cost of vacation
ownership products 29,080 40,834 59,742 81,335
Marketing and sales 66,911 67,837 135,226 136,854
Development margin 36,482 33,477 62,189 65,687
Certain items - - - -
Revenue recognition
reportability adjustment (2,417) (1,207) (2,473) 933
Adjusted development margin** $34,065 $32,270 $59,716 66,620
======= ======= ======= ======
Development margin
percentage(1) 27.5% 23.6% 24.2% 23.1%
Adjusted development
margin percentage 26.5% 23.0% 23.6% 23.3%
** Denotes non-GAAP financial
measures. Please see pages A-
10 and A-11 for additional
information about our reasons
for providing these alternative
financial measures and
limitations on their use.
(1) Development margin
percentage represents
Development margin divided by
Sale of vacation ownership
products. Development margin
percentage is calculated using
whole dollars.
A-9
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions, except per share amounts)
2016 ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK
Fiscal Year Fiscal Year
2016 (low) 2016 (high)
--------- ----------
Net income $130 $140
Adjustments to reconcile Net
income to Adjusted net
income
Certain items(1) 5 5
Gain on dispositions
(2) (11) (11)
Provision for income taxes
on adjustments to net
income 2 2
--- ---
Adjusted net income** $126 $136
==== ====
Earnings per share -Diluted
(3) $4.57 $4.92
Adjusted earnings per share
-Diluted**, 3 $4.43 $4.78
Diluted shares(3) 28.5 28.5
(1) Certain items adjustment primarily includes approximately $5 million of non-capitalizable
transaction costs.
2 Gain on dispositions adjustment includes the net impact to pre-tax income associated with
dispositions in the North America segment and Asia Pacific segment.
3 Earnings per share -Diluted, Adjusted earnings per share -Diluted, and Diluted shares
outlook includes the impact of share repurchase activity only through July 21, 2016.
2016 ADJUSTED EBITDA OUTLOOK
Fiscal Year Fiscal Year
2016 (low) 2016 (high)
--------- ----------
Net income $130 $140
Interest expense(1) 9 9
Tax provision 91 96
Depreciation and amortization 22 22
--- ---
EBITDA ** 252 267
Non-cash share-based compensation (2) 15 15
Certain items (3)and Gain on dispositions4 (6) (6)
Adjusted EBITDA** $261 $276
(1) Interest expense excludes
consumer financing interest
expense.
(2) Beginning with the first
quarter of 2016, non-cash share-
based compensation expense is
excluded from our Adjusted
EBITDA, and prior period
presentation has been recast for
consistency. Please see pages A-
10 and A-11 for additional
information.
3 Certain items adjustment
primarily includes approximately
$5 million of non-capitalizable
transaction costs.
4 Gain on dispositions
adjustment includes the net
impact to pre-tax income
associated with dispositions in
the North America segment and
Asia Pacific segment.
--------------------------------
2016 ADJUSTED FREE CASH FLOW OUTLOOK
Fiscal Year Fiscal Year
2016 (low) 2016 (high)
--------- ----------
Net cash provided by operating activities $136 $146
Capital expenditures for property
and equipment (excluding
inventory):
New sales centers (1) (20) (18)
Other (24) (22)
Decrease in restricted cash (5) (5)
Borrowings from securitization
transactions 375 377
Repayment of debt related to
securitizations (320) (318)
-----
Free cash flow** 142 160
Adjustments:
Net change in borrowings available
from the securitization of
eligible vacation ownership notes
receivable through the warehouse
credit facility (2) (7) (5)
Adjusted free cash flow** $135 $155
==== ====
(1) Represents the incremental
investment in new sales centers.
(2) Represents the net change in
borrowings available from the
securitization of eligible
vacation ownership notes
receivable through the warehouse
credit facility between the 2015
and 2016 year ends.
** Denotes non-GAAP financial
measures. Please see pages A-
10 and A-11 for additional
information about our reasons
for providing these alternative
financial measures and
limitations on their use.
A-10
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we report
certain financial measures that are not prescribed or authorized by United States
generally accepted accounting principles ("GAAP"). We discuss our reasons for
reporting these non-GAAP financial measures below, and the financial schedules
reconcile the most directly comparable GAAP financial measure to each non-GAAP
financial measure that we report (identified by a double asterisk ("**") on the
preceding pages). Although we evaluate and present these non-GAAP financial
measures for the reasons described below, please be aware that these non-GAAP
financial measures have limitations and should not be considered in isolation or as
a substitute for revenues, net income, earnings per share or any other comparable
operating measure prescribed by GAAP. In addition, these non-GAAP financial
Adjusted Net Income. We evaluate non-GAAP financial measures, including Adjusted
Net Income, Adjusted EBITDA, and Adjusted Development Margin, that exclude certain
items in the 12 weeks and 24 weeks ended June 17, 2016 and June 19, 2015 because
these non-GAAP financial measures allow for period-over-period comparisons of our
on-going core operations before the impact of these items. These non-GAAP
financial measures also facilitate our comparison of results from our on-going core
operations before these items with results from other vacation ownership companies.
Certain items - 12 weeks and 24 weeks ended June 17, 2016. In our Statement of
Income for the 12 weeks ended June 17, 2016, we recorded $8.3 million of net pre-
tax charges, which included $10.7 million of gains and other income, $2.0 million of
transaction costs associated with acquisitions, and $0.4 million of losses
(including $0.2 million of depreciation) from the operations of the property we
acquired in Australia in 2015 that we sold in the second quarter of 2016. In our
Statement of Income for the 24 weeks ended June 17, 2016, we recorded $6.2 million
of net pre-tax charges, which included $10.7 million of gains and other income,
$4.6 million of transaction costs associated with acquisitions, $0.2 million of
losses (including $0.5 million of depreciation) from the operations of the property
we acquired in Australia in 2015 that we sold in the second quarter of 2016, and a
Certain items - 12 weeks and 24 weeks ended June 19, 2015. In our Statement of
Income for the 12 weeks ended June 19, 2015, we recorded $7.2 million of net pre-
tax items, which included $8.6 million of gains and other income, $1.3 million of
transaction costs associated with acquisitions, $0.1 million of organizational and
separation related costs and less than $0.1 million of litigation expense. In our
Statement of Income for the 24 weeks ended June 19, 2015, we recorded $14.1 million
of net pre-tax items, which included $9.5 million of gains and other income, $5.9
million of development profit from the disposition of units in Macau as whole
ownership residential units rather than through our Marriott Vacation Club, Asia
Pacific points program, $1.3 million of transaction costs associated with
acquisitions, $0.3 million of organizational and separation related costs, and a
Adjusted Development Margin (Adjusted Sale of Vacation Ownership Products Net of
Expenses). We evaluate Adjusted Development Margin (Adjusted Sale of Vacation
Ownership Products Net of Expenses) as an indicator of operating performance.
Adjusted Development Margin adjusts Sale of vacation ownership products revenues for
the impact of revenue reportability, includes corresponding adjustments to Cost of
vacation ownership products expense and Marketing and sales expense associated with
the change in revenues from the Sale of vacation ownership products, and includes
adjustments for certain items as itemized in the discussion of Adjusted Net Income
above. We evaluate Adjusted Development Margin because it allows for period-over-
period comparisons of our on-going core operations before the impact of revenue
reportability and certain items to our Development Margin.
A-11
MARRIOTT VACATIONS WORLDWIDE
CORPORATION
NON-GAAP FINANCIAL MEASURES
Earnings Before Interest Expense,
Taxes, Depreciation and Amortization
("EBITDA") and Adjusted EBITDA.
EBITDA is defined as earnings, or net
income, before interest expense
(excluding consumer financing interest
expense), provision for income taxes,
depreciation and amortization. For
purposes of our EBITDA and Adjusted
EBITDA calculations, we do not adjust
for consumer financing interest
expense because the associated debt is
secured by vacation ownership notes
receivable that have been sold to
bankruptcy remote special purpose
entities and is generally non-
recourse to us. Further, we consider
consumer financing interest expense to
be an operating expense of our
business. We consider EBITDA and
Adjusted EBITDA to be indicators of
operating performance, which we use to
measure our ability to service debt,
fund capital expenditures and expand
our business. We also use EBITDA and
Adjusted EBITDA, as do analysts,
lenders, investors and others, because
these measures exclude certain items
that can vary widely across different
industries or among companies within
the same industry. For example,
interest expense can be dependent on a
company's capital structure, debt
levels and credit ratings.
Accordingly, the impact of interest
expense on earnings can vary
significantly among companies. The
tax positions of companies can also
vary because of their differing
abilities to take advantage of tax
benefits and because of the tax
policies of the jurisdictions in which
they operate. As a result, effective
tax rates and provision for income
taxes can vary considerably among
companies. EBITDA and Adjusted EBITDA
also exclude depreciation and
amortization because companies utilize
productive assets of different ages
and use different methods of both
acquiring and depreciating productive
assets. These differences can result
in considerable variability in the
relative costs of productive assets
and the depreciation and amortization
expense among companies. Adjusted
EBITDA reflects additional adjustments
for certain items, as itemized in the
discussion of Adjusted Net Income
above, including, beginning with the
first quarter of 2016, the exclusion
of non-cash share-based compensation
expense to address considerable
variability among companies in
recording compensation expense because
companies use share-based payment
awards differently, both in the type
and quantity of awards granted. Prior
period presentation has been recast
for consistency. We evaluate Adjusted
EBITDA as an indicator of operating
performance because it allows for
period-over-period comparisons of
our on-going core operations before
the impact of the excluded items.
Together, EBITDA and Adjusted EBITDA
facilitate our comparison of results
from our on-going core operations
before the impact of these items with
results from other vacation ownership
companies.
Free Cash Flow and Adjusted Free Cash
Flow. We evaluate Free Cash Flow and
Adjusted Free Cash Flow as liquidity
measures that provide useful
information to management and
investors about the amount of cash
provided by operating activities after
capital expenditures for property and
equipment, changes in restricted cash,
and the borrowing and repayment
activity related to our
securitizations, which cash can be
used for strategic opportunities,
including acquisitions and
strengthening the balance sheet.
Adjusted Free Cash Flow, which
reflects additional adjustments to
Free Cash Flow for the impact of
organizational and separation related,
litigation, and other cash charges,
allows for period-over-period
comparisons of the cash generated by
our business before the impact of
these items. Analysis of Free Cash
Flow and Adjusted Free Cash Flow also
facilitates management's comparison of
our results with our competitors'
results.
A-12
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(unaudited)
June 17, 2016 January 1, 2016
------------- ---------------
ASSETS
Cash and cash
equivalents $97,418 $177,061
Restricted cash
(including $39,395
and $26,884 from
VIEs, respectively) 68,340 71,451
Accounts and contracts
receivable, net
(including $4,112 and
$4,893 from VIEs,
respectively) 142,864 131,850
Vacation ownership
notes receivable, net
(including $679,185
and $669,179 from
VIEs, respectively) 903,747 920,631
Inventory 702,377 669,243
Property and equipment 228,848 288,803
Other 109,960 140,679
Total Assets $2,253,554 $2,399,718
========== ==========
LIABILITIES AND EQUITY
Accounts payable $74,484 $139,120
Advance deposits 80,876 69,064
Accrued liabilities
(including $1,401 and
$669 from VIEs,
respectively) 132,733 164,791
Deferred revenue 30,600 35,276
Payroll and benefits
liability 75,309 104,331
Liability for Marriott
Rewards customer
loyalty program - 35
Deferred compensation
liability 57,567 51,031
Mandatorily redeemable
preferred stock of
consolidated
subsidiary, net 39,068 38,989
Debt, net (including
$691,845 and $684,604
from VIEs,
respectively) 733,828 678,793
Other 56,248 32,945
Deferred taxes 126,093 109,076
------- -------
Total Liabilities 1,406,806 1,423,451
--------- ---------
Preferred stock -$.01
par value; 2,000,000
shares authorized;
none issued or
outstanding - -
Common stock -$.01 par value; 100,000,000 shares
authorized; 36,620,686 and 36,393,800 shares issued,
respectively
366 364
Treasury stock -at
cost; 9,640,473 and
6,844,256 shares,
respectively (593,052) (429,990)
Additional paid-in
capital 1,139,366 1,150,731
Accumulated other
comprehensive income 12,735 11,381
Retained earnings 287,333 243,781
------- -------
Total Equity 846,748 976,267
Total Liabilities and
Equity $2,253,554 $2,399,718
========== ==========
The abbreviation VIEs above means Variable Interest Entities
A-13
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
24 weeks ended
--------------
June 17, 2016 June 19, 2015
------------- -------------
OPERATING ACTIVITIES
Net income $60,717 $68,095
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 10,177 8,558
Amortization of debt issuance costs 2,559 2,506
Provision for loan losses 19,591 15,662
Share-based compensation 6,856 6,588
Employee stock purchase plan 307 -
Deferred income taxes 15,792 17,850
Gain on disposal of property and
equipment, net (10,675) (9,512)
Non-cash reversal of litigation expense (303) (262)
Net change in assets and liabilities:
Accounts and contracts receivable (11,084) (6,068)
Notes receivable originations (124,318) (112,060)
Notes receivable collections 120,548 132,397
Inventory (13,924) 68,629
Purchase of operating hotels for future
conversion to inventory - (46,614)
Other assets 26,111 8,154
Accounts payable, advance deposits and
accrued liabilities (78,190) (66,223)
Deferred revenue (4,805) (5,955)
Payroll and benefit liabilities (27,313) (18,382)
Liability for Marriott Rewards customer
loyalty program (36) (9,345)
Deferred compensation liability 6,536 4,858
Other liabilities 20,348 18,013
Other, net 2,184 1,776
Net cash provided by operating activities 21,078 78,665
------ ------
INVESTING ACTIVITIES
Capital expenditures for property and
equipment (excluding inventory) (15,142) (15,718)
Decrease in restricted cash 2,969 43,758
Dispositions, net 69,738 20,346
Net cash provided by investing activities 57,565 48,386
FINANCING ACTIVITIES
Borrowings from securitization
transactions 91,281 -
Repayment of debt related to
securitization transactions (84,040) (143,374)
Borrowings on Revolving Corporate Credit
Facility 85,000 -
Repayment of Revolving Corporate Credit
Facility (40,000) -
Proceeds from vacation ownership
inventory arrangement - 5,375
Debt issuance costs (231) (30)
Repurchase of common stock (163,359) (66,237)
Accelerated stock repurchase forward
contract (14,470) -
Payment of dividends (26,067) (8,085)
Payment of withholding taxes on vesting
of restricted stock units (3,876) (9,353)
Other 572 201
Net cash used in financing activities (155,190) (221,503)
-------- --------
Effect of changes in exchange rates on
cash and cash equivalents (3,096) (1,157)
DECREASE IN CASH AND CASH EQUIVALENTS (79,643) (95,609)
CASH AND CASH EQUIVALENTS, beginning of
period 177,061 346,515
------- -------
CASH AND CASH EQUIVALENTS, end of period $97,418 $250,906
======= ========
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SOURCE Marriott Vacations Worldwide
