Marriott Vacations Worldwide (“MVW”) Reports Fourth Quarter and Full Year 2021 Financial Results and Provides 2022 Outlook
ORLANDO, Fla. – February 23, 2022 – Marriott Vacations Worldwide Corporation (NYSE: VAC) (the
“Company”) reported financial results for the fourth quarter and full year 2021 and provided guidance for full
year 2022.
“We ended the year on a strong note, growing contract sales by 7% sequentially in the fourth quarter to $406
million, exceeding 2019 levels for the first time since the pandemic started,” said Stephen P. Weisz, chief
executive officer. “If the past two years have proven anything, it’s that people appreciate their time with family
and friends and want to go on vacations. As a company whose sole purpose is providing travelers great vacation
experiences, we couldn’t be in a better position. Despite the softness we experienced in January and early
February due to Omicron, we expect 2022 full-year contract sales to be 13% higher than 2019 levels and 2022
Adjusted EBITDA to be 17% above 2019 levels, both at the midpoint of the guidance ranges, illustrating the
recovery of the business and our synergy efforts.”
Fourth Quarter 2021
• Consolidated Vacation Ownership contract sales increased 7% sequentially to $406 million in the fourth
quarter of 2021.
• Net income attributable to common shareholders was $61 million, or $1.39 per fully diluted earnings per
share.
• Adjusted net income attributable to common shareholders was $103 million and adjusted fully diluted
earnings per share was $2.38.
• Adjusted EBITDA increased 6% on a sequential basis to $219 million in the fourth quarter of 2021.
• The Company repurchased 463 thousand shares of its common stock for $74 million at an average price per
share of $157.96 and paid a $23 million cash dividend in October, its first since the pandemic began.
• The Company completed its second securitization of 2021, issuing $425 million of vacation ownership loan
backed notes at an average weighted interest rate of 1.64% and a 98% gross advance rate.
Full Year 2021 and 2022 Outlook
• Consolidated Vacation Ownership contract sales totaled nearly $1.4 billion for full year 2021.
• Net income attributable to common shareholders was $49 million, or $1.13 per fully diluted earnings per
share.
• Adjusted net income attributable to common shareholders was $190 million and adjusted fully diluted
earnings per share was $4.40.
• Adjusted EBITDA totaled $657 million for the full year 2021.
• The Company ended 2021 with approximately $1.1 billion of liquidity, including $342 million in cash and
cash equivalents.
• The Company generated net cash provided by operating activities of $343 million and Adjusted free cash
flow of $417 million.
• The Company expects contract sales in 2022 to be between $1,675 and $1,775 million and Adjusted EBITDA
to be between $860 to $920 million, a 35% increase at the midpoint.
Fourth Quarter 2021 Segment Results
Vacation Ownership
Revenues excluding cost reimbursements increased 102% in the fourth quarter of 2021 compared to the prior year
and increased 8% sequentially as occupancies continued to improve. Sale of vacation ownership products was
$364 million in the quarter, a 10% improvement over the third quarter of 2021, and rental revenue increased 13%
compared to the third quarter of 2021.
Vacation Ownership segment financial results were $205 million in the fourth quarter of 2021, and segment
Adjusted EBITDA increased 8% on a sequential basis to $234 million, with segment Adjusted EBITDA margin
expanding approximately 130 basis points compared to 2019.
Exchange & Third-Party Management
Revenues excluding cost reimbursements increased 8% in the fourth quarter of 2021 compared to the prior year
and decreased 6% sequentially. Interval International active members declined 1% compared to the third quarter
of 2021 to 1.3 million and Average revenue per member was largely unchanged on a sequential basis.
Exchange & Third-Party Management segment financial results were $22 million in the fourth quarter of 2021,
and segment Adjusted EBITDA was $31 million.
Corporate and Other
General and administrative costs increased $19 million in the fourth quarter of 2021 compared to the prior year as
a result of higher salary and wages costs, higher bonus expense, higher legal spending, and a decrease in credits
related to incentives under the CARES Act. On a sequential basis, Corporate and Other remained relatively
unchanged.
Balance Sheet and Liquidity
The Company ended the year with approximately $1.1 billion in liquidity, including $342 million of cash and
cash equivalents, $113 million of gross notes receivable that were eligible for securitization, and $598 million of
available capacity under its revolving credit facility.
The Company had $4.5 billion in debt outstanding, net of unamortized debt issuance costs, at the end of the fourth
quarter of 2021, an increase of $219 million from year-end 2020. This debt included $2.6 billion of corporate debt
and $1.9 billion of non-recourse debt related to its securitized notes receivable.
The Company completed its second securitization of 2021, issuing $425 million of vacation ownership loan
backed notes at an average weighted interest rate of 1.64% and a 98% gross advance rate. Of the $425 million in
total proceeds from the transaction, approximately $107 million was used to repay all outstanding amounts
previously drawn under its Warehouse Credit Facility, approximately $8 million was used to pay transaction
expenses and fund required reserves, and the remaining proceeds are being used for general corporate purposes.
2022 Outlook (in millions)
The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following
full year 2022 expected GAAP results for the Company. The Company’s 2022 guidance does not include any
additional impact from the pandemic, potential new variants of COVID-19 or any actions taken in response to the
pandemic that could have a material impact on demand for the Company’s products and services.
| Income before income taxes attributable to common shareholders | $443 | to | $483 |
| Net income attributable to common shareholders | $317 | to | $347 |
| Fully diluted EPS | $6.52 | to | $7.14 |
| Net cash, cash equivalents and restricted cash provided by operating activities | $300 | to | $309 |
| The Company is providing guidance as reflected in the chart below for the full year 2022: | |||
| Contract sales | $1,675 | to | $1,775 |
| Adjusted EBITDA | $860 | to | $920 |
| Adjusted pretax net income | $585 | to | $645 |
| Adjusted net income attributable to common shareholders | $424 | to | $469 |
| Adjusted fully diluted EPS | $8.72 | to | $9.65 |
| Adjusted free cash flow | $560 | to | $640 |
Non-GAAP Financial Information
Non-GAAP financial measures, such as Adjusted net income or loss attributable to common shareholders,
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted pretax net income, Adjusted fully diluted earnings per
share, Adjusted development profit, Adjusted development profit margin, Adjusted free cash flow, and other
adjusted financial measures, are reconciled and adjustments are shown and described in further detail in the
Financial Schedules that follow.
Fourth Quarter 2021 Financial Results Conference Call
The Company will hold a conference call on February 24, 2022 at 8:30 a.m. ET to discuss these financial results
and provide an update on business conditions. 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 ir.mvwc.com. An audio replay of the conference call will be available for 30
days on the Company’s website.
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership,
exchange, rental and resort and property management, along with related businesses, products and services. The
Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse
portfolio that includes some of the most iconic vacation ownership brands. The Company also operates exchange
networks and membership programs comprised of nearly 3,200 affiliated resorts in over 90 nations, as well as
provides management services to over 150 other resorts and lodging properties. As a leader and innovator in the
vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors
and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and Hyatt
Hotels Corporation for the development, sales and marketing of vacation ownership products and services. 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 guidance for fiscal 2022, that are not historical facts. The
Company cautions you that these statements are not guarantees of future performance and are subject to numerous
Marriott Vacations Worldwide Reports Fourth Quarter and Full Year 2021 Financial Results / 3
and evolving risks and uncertainties that we may not be able to predict or assess, such as: the effects of the
COVID-19 pandemic, including reduced demand for vacation ownership and exchange products and services,
volatility in the international and national economy and credit markets, worker absenteeism, quarantines or other
government-imposed travel or health-related restrictions; the length and severity of the COVID-19 pandemic,
including its short and longer-term impact on the demand for travel and on consumer confidence; the impact of
the availability and distribution of effective vaccines on the demand for travel and consumer confidence; the
effectiveness of available vaccines against variants of the virus, including the Delta and Omicron variants; the
pace of recovery following the COVID-19 pandemic or as effective treatments or vaccines become widely
available; competitive conditions; the availability of capital to finance growth; the effects of steps we have taken
and may continue to take to reduce operating costs and/or enhance health and cleanliness protocols at our resorts
due to the COVID-19 pandemic; political or social strife, and other matters referred to under the heading “Risk
Factors” contained in our most recent Annual Report on Form 10-K, and which may be discussed in our periodic
filings 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 or implied herein. These statements are
made as of the date of this press release 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.
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