Hilton Grand Vacations reports second-quarter 2019 results

August 1, 2019

ORLANDO, Fla. (Aug. 1, 2019) – Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” or “the Company”) today reports its second-quarter 2019 results. Highlights include:


KEY HIGHLIGHTS


Second-Quarter 2019 Results1

  • Total revenues for the second quarter were $454 million compared to $563 million for the same period in 2018.
    • Affected by a deferral of $34 million in the current period and a recognition of $91 million in the same period in 2018.
  • Net income for the second quarter was $39 million compared to $107 million for the same period in 2018.
    • Affected by a net deferral of $18 million in the current period and a net recognition of $60 million in the same period in 2018.
  • Diluted EPS for the second quarter was $0.43 compared to $1.10 for the same period in 2018.
    • Affected by a net deferral of $18 million or $0.20 per share in the current period and a net recognition of $60 million or $0.61 per share in the same period in 2018.
  • Adjusted EBITDA for the second quarter was $90 million compared to $175 million for the same period in 2018.
    • Affected by a net deferral of $18 million in the current period and a net recognition of $60 million in the same period in 2018.
  • Tours were up 7.9% compared to the same period in 2018.
  • Contract sales in the second quarter were $363 million, an increase of 1.7% from the same period in 2018.
  • Net Owner Growth (NOG) for the 12 months ended June 30, 2019, was 6.1%.
  • Repurchased 5.9 million shares in the second quarter for $174 million.

 

 Outlook1

  • Net income is now projected to be between $182 million and $197 million, reflecting lower anticipated contract sales for the second half of the year.
    • Affected by a net deferral of $36 million.
  • Diluted EPS is now projected to be between $2.04 and $2.21.
    • Affected by a net deferral of $36 million or $0.40 per share.
  • Adjusted EBITDA is projected to be between $379 million and $399 million, reflecting lower contract sales.
    • Affected by a net deferral of $36 million.
  • Full-year 2019 contract sales are expected to be flat to down 3% due to softer than anticipated contract sales growth in the second quarter and flat to down contract sales in the second half of the year due to available inventory challenges, which is expected to continue into the second half of the year.
  • Adjusted free cash flow is projected to be between $50 and $110 million.
  • The revised 2019 outlook does not reflect any additional share repurchases.

 

[1] The Company’s current year results, prior year results and outlook include impacts related to deferrals of revenues and direct expenses related to the Sales of VOIs under construction that are recognized when construction is complete.  These impacts are reflected in the sub-bullets.

 

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Media Contact

L‍auren George
Senior Manager, External Communications
Hilton Grand Vacations

P: 1-407-613-8431 
E: [email protected]

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