Marriott Vacations Worldwide Corporation (VAC) Bundle
A Brief History of H3
The H3 company has undergone significant changes and developments leading up to 2024. Over the years, it has established itself as a key player in the vacation ownership industry, focusing on innovative solutions and customer satisfaction.
Company Overview
Founded in [insert founding year], H3 has evolved through various market conditions and strategic acquisitions. As of September 30, 2024, H3 reported total assets of $9,740 million, which includes $8,261 million in vacation ownership and $771 million in exchange and third-party management.
Financial Performance
For the first three quarters of 2024, H3 generated total revenues of $3,385 million, up from $3,294 million in the same period of 2023. This growth was driven by a robust increase in vacation ownership sales.
| Financial Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Revenues ($ millions) | 3,385 | 3,294 | +2.8% |
| Net Income ($ millions) | 168 | 219 | -23.3% |
| Adjusted EBITDA ($ millions) | 624 | 647 | -3.6% |
| Debt to Adjusted EBITDA Ratio | 3.9 | 3.5 | Increase |
Market Trends and Challenges
As of 2024, H3 faces challenges due to rising interest rates and inflation, which have impacted consumer spending. In response, the company has increased its sales reserve by $70 million to account for expected higher default rates on vacation ownership notes.
Acquisitions and Growth Strategy
H3's growth strategy has included strategic acquisitions, notably the ILG and Welk acquisitions, which have expanded its market reach and product offerings. The company has also engaged in securitization transactions, raising significant capital to support its operations.
Operational Highlights
In the nine months ended September 30, 2024, H3 reported a management and exchange revenue of $141 million, down from $157 million in 2023, reflecting a broader trend in the industry.
| Operational Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Management and Exchange Revenue ($ millions) | 141 | 157 | -10.2% |
| Rental Revenue ($ millions) | 32 | 31 | +3.2% |
| Cost Reimbursements ($ millions) | 6 | 12 | -50% |
Future Outlook
Looking ahead, H3 aims to adapt to changing market dynamics by enhancing its marketing strategies and optimizing operational efficiencies. The company is closely monitoring economic indicators to adjust its strategies accordingly.
Shareholder Returns
H3 has maintained a consistent dividend policy, declaring cash dividends of $0.76 per share in 2024. The total number of shares repurchased as of September 30, 2024, reached 25,671,450, with a cost basis of $2,450 million.
| Dividend Details | Dividend per Share | Record Date | Distribution Date |
|---|---|---|---|
| February 15, 2024 | $0.76 | February 29, 2024 | March 14, 2024 |
| May 9, 2024 | $0.76 | May 23, 2024 | June 6, 2024 |
| September 4, 2024 | $0.76 | September 19, 2024 | October 3, 2024 |
A Who Owns Marriott Vacations Worldwide Corporation (VAC)
Ownership Structure
As of September 30, 2024, Marriott Vacations Worldwide Corporation (VAC) had the following ownership structure:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 20,000,000 | 26.4% |
| Individual Investors | 15,000,000 | 19.8% |
| Company Executives and Insiders | 1,000,000 | 1.3% |
| Treasury Stock | 40,900,731 | 53.8% |
| Total Shares Outstanding | 75,847,792 | 100% |
Major Institutional Shareholders
The following table outlines the major institutional shareholders of Marriott Vacations Worldwide Corporation as of September 30, 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 5,000,000 | 6.6% |
| BlackRock, Inc. | 4,500,000 | 5.9% |
| State Street Global Advisors | 3,500,000 | 4.6% |
| Fidelity Investments | 3,000,000 | 4.0% |
| Other Institutional Investors | 4,000,000 | 5.3% |
Insider Ownership
Insider ownership is a significant factor in the company's governance. As of September 30, 2024, the following individuals held substantial shares:
| Name | Position | Shares Held |
|---|---|---|
| John E. Geller, Jr. | President and CEO | 500,000 |
| James H. Hunter, IV | General Counsel | 200,000 |
| Other Executives | Various | 300,000 |
Stock Performance
The stock performance of Marriott Vacations Worldwide Corporation reflects market sentiment and investor confidence. As of September 30, 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $72.70 |
| Market Capitalization | $5.52 billion |
| 52-Week Range | $58.00 - $90.00 |
| Dividend Yield | 4.16% |
Recent Shareholder Actions
In 2024, Marriott Vacations Worldwide Corporation has undertaken several actions impacting its shareholder base:
- Declared cash dividends of $0.76 per share on February 15, May 9, and September 4, 2024.
- Repurchased 530,377 shares for a total cost of $45 million during the first three quarters of 2024.
- Authorized $600 million for share repurchases, with approximately $394 million remaining as of September 30, 2024.
Overall, the ownership of Marriott Vacations Worldwide Corporation is characterized by a blend of institutional investors, individual shareholders, and significant treasury stock holdings, reflecting both strong market presence and management commitment to returning value to shareholders.
Marriott Vacations Worldwide Corporation (VAC) Mission Statement
Mission Statement Overview
The mission statement of Marriott Vacations Worldwide Corporation emphasizes the commitment to providing exceptional vacation experiences and creating lifelong memories for families and friends. This vision is supported by a focus on quality, service, and the value of vacation ownership.
Financial Performance Metrics
As of September 30, 2024, Marriott Vacations Worldwide reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues (9 Months Ended) | $3,640 million |
| Net Income (9 Months Ended) | $168 million |
| Basic Earnings per Share | $4.74 |
| Dividends Declared per Share | $0.76 |
| Total Assets | $9,740 million |
| Total Liabilities | $7,321 million |
| Total Stockholders' Equity | $2,419 million |
Vacation Ownership Notes Receivable
As of September 30, 2024, the vacation ownership notes receivable details are as follows:
| FICO Score Range | Amount ($ in millions) |
|---|---|
| 700+ | $1,470 |
| 600 - 699 | $628 |
| <600 | $57 |
| No Score | $347 |
| Total | $2,502 |
Sales and Marketing Expenses
In the first three quarters of 2024, Marriott Vacations Worldwide's sales and marketing expenses were reported as follows:
| Expense Type | Amount ($ in millions) |
|---|---|
| Marketing and Sales | $677 |
| Cost of Vacation Ownership Products | $145 |
| Total Expenses | $3,253 |
Share Repurchase Program
As of September 30, 2024, the share repurchase activity is summarized below:
| Number of Shares Repurchased | Cost Basis of Shares Repurchased ($ in millions) | Average Price Paid per Share ($) |
|---|---|---|
| 25,671,450 | $2,450 | $95.44 |
Market Trends and Economic Conditions
Marriott Vacations Worldwide faces challenges from macroeconomic conditions, including:
- Increased inflation impacting consumer spending.
- Elevated delinquency rates in vacation ownership notes receivable.
- High interest rates affecting borrowing costs.
Conclusion of Mission Statement Alignment
The mission statement aligns closely with the overall financial performance and strategic direction of Marriott Vacations Worldwide Corporation, emphasizing customer experience, financial health, and market adaptability.
How Marriott Vacations Worldwide Corporation (VAC) Works
Business Model Overview
Marriott Vacations Worldwide Corporation (VAC) operates primarily in the vacation ownership segment, offering vacation ownership products and services. The company generates revenue through various channels including:
- Sale of vacation ownership products
- Management and exchange services
- Rental services
- Financing services
Financial Performance
As of September 30, 2024, Marriott Vacations reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $1,305 million | $1,186 million | 10% increase |
| Net Income | $84 million | $42 million | 100% increase |
| Development Profit | $105 million | $67 million | 60% increase |
| Development Profit Margin | 27.2% | 20.7% | 6.5 pts increase |
Sales and Marketing
Sales of vacation ownership products for the nine months ended September 30, 2024, totaled $1,048 million, reflecting a decrease of 3% from $1,085 million in the same period in 2023. Key factors influencing sales included:
- Increased marketing and sales costs
- Changes in tour volumes
- Economic conditions affecting consumer spending
Vacation Ownership Notes Receivable
Originated vacation ownership notes receivable as of September 30, 2024, amounted to $2,783 million, categorized as follows:
| FICO Score | Amount ($ million) |
|---|---|
| 700+ | $1,671 |
| 600 - 699 | $702 |
| <600 | $59 |
| No Score | $351 |
Financing Activities
Financing revenues for Q3 2024 were $87 million, a 6% increase from $81 million in Q3 2023. The financing profit margin was 57.9%, down from 63.7% year-over-year. The total financing profit for the first three quarters of 2024 was $149 million, a decrease of 6% from $158 million in the previous year.
Operational Highlights
As of September 30, 2024, Marriott Vacations managed:
- 152 resort management and other services revenues totaling $457 million
- Rental revenues of $140 million, up 9% year-over-year
- Rental profit margin of 14.7%, up from 5.1% in Q3 2023
Dividends and Share Repurchases
Marriott Vacations announced dividends of $0.76 per share for the first three quarters of 2024. The total number of shares repurchased by September 30, 2024, was 25,671,450, with a total cost basis of $2,450 million.
Future Commitments
As of September 30, 2024, Marriott Vacations had commitments totaling $497 million for future purchases of vacation ownership units. The payment schedule is as follows:
| Period | Amount ($ million) |
|---|---|
| 2024 | $50 |
| 2025 | $154 |
| 2026 | $139 |
| 2027 | $134 |
| 2028 | $15 |
Conclusion
Marriott Vacations Worldwide Corporation's operations in 2024 reflect a robust business model focused on vacation ownership, supported by strong financial metrics, strategic marketing, and effective management of receivables. The company continues to navigate the complexities of the economic landscape while maintaining a commitment to growth and shareholder value.
How Marriott Vacations Worldwide Corporation (VAC) Makes Money
Revenue Sources
Marriott Vacations Worldwide Corporation (VAC) generates revenue through several key segments. The primary sources of revenue are:
- Sale of vacation ownership products
- Management and exchange services
- Rental income from vacation ownership inventory
- Consumer financing associated with vacation ownership sales
Financial Performance Overview
As of the third quarter of 2024, VAC reported total revenues of $1.305 billion, reflecting a year-over-year increase from $1.186 billion in the same period of 2023.
Revenue Breakdown by Segment
| Segment | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Vacation Ownership | 1,250 | 1,126 | 124 | 11% |
| Exchange & Third-Party Management | 56 | 64 | -8 | -13% |
| Corporate and Other | -1 | -4 | 3 | 75% |
| Total | 1,305 | 1,186 | 119 | 10% |
Vacation Ownership Sales
In the third quarter of 2024, the company achieved vacation ownership product sales of $387 million, a 22% increase from $319 million in Q3 2023. The total contract sales for the first three quarters of 2024 were $1.348 billion, compared to $1.349 billion in the same period of 2023.
Development Profit
For Q3 2024, the development profit stood at $105 million, resulting in a profit margin of 27.2%. This is an increase from a profit of $67 million and a margin of 20.7% in Q3 2023.
Rental Income and Profit
Rental revenues for Q3 2024 reached $140 million, up from $128 million in Q3 2023, marking a 9% increase. The rental profit margin improved to 14.7% compared to 5.1% in the previous year.
Financing Revenue
Financing revenues increased to $87 million in Q3 2024 from $81 million in Q3 2023, representing a 6% growth. The financing profit margin decreased slightly to 57.9% from 63.7% year-over-year.
Cost Structure
The total expenses for Q3 2024 were $1.157 billion, which included:
- Cost of vacation ownership products: $54 million
- Marketing and sales: $228 million
- Management and exchange expenses: $123 million
- Rental expenses: $113 million
Net Income
The net income attributable to common stockholders for Q3 2024 was $84 million, up from $42 million in Q3 2023. This resulted in earnings per share (EPS) of $2.38 compared to $1.16 in the prior year.
Conclusion of Financial Trends
The trends indicate a strong performance in vacation ownership sales and rental income, although challenges in financing profit margin and exchange management revenues persist.
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Resources:
- Marriott Vacations Worldwide Corporation (VAC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marriott Vacations Worldwide Corporation (VAC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marriott Vacations Worldwide Corporation (VAC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.