Marriott Vacations Worldwide (VAC) Misses Q2 EPS by 22c, Revenues Beat

Marriott Vacations Worldwide (NYSE: VAC) reported Q2 EPS of ($0.81), $0.22 worse than the analyst estimate of ($0.59). Revenue for the quarter came in at $649 million versus the consensus estimate of $620.94 million.

Third Quarter 2020 Highlights and Operational Update:

• Consolidated Vacation Ownership contract sales totaled $140 million in the third quarter of 2020.
• Net loss attributable to common shareholders was $62 million, or $1.51 loss per fully diluted share.
• Adjusted net loss attributable to common shareholders was $33 million and adjusted fully diluted loss per share was $0.81.
• Adjusted EBITDA was $35 million in the third quarter of 2020.
• Cash and cash equivalents totaled $660 million at the end of the third quarter of 2020 and the Company had nearly all of its capacity available under its $600 million revolving corporate credit facility.
• The Company expects to generate $335 million of cash from operations and at least $130 million of total cash flow in the second half of 2020.
• The Company now expects to generate at least $200 million of synergy and other cost savings, a $75 million increase from its prior goal.

"We are very encouraged by how quickly occupancy and exchange transactions recovered in the third quarter, illustrating the desire of timeshare customers to get back on vacation as well as the resiliency of our business model," said Stephen P. Weisz, president and chief executive officer. "We've now reopened most of our sales centers and tour flow continues to recover. As a result, we delivered $140 million of contract sales in the third quarter of 2020 and currently expect contract sales to increase to $160 to $185 million in the fourth quarter."

For earnings history and earnings-related data on Marriott Vacations Worldwide (VAC) click here.

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