Hilton Grand Vacations reports first-quarter 2019 results

May 1, 2019

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


KEY HIGHLIGHTS


First-Quarter 2019 Results


  • Total revenues for the first quarter were $450 million compared to $367 million for the same period in 2018.
  • Net income for the first quarter was $55 million compared to $30 million for the same period in 2018.
  • Diluted EPS for the first quarter was $0.58 compared to $0.30 for the same period in 2018.
  • Adjusted EBITDA for the first quarter was $102 million compared to $62 million for the same period in 2018.
  • Contract sales in the first quarter were $322 million, a decrease of 2.1% from the same period in 2018.
  • Net Owner Growth (NOG) for the 12 months ended March 31, 2019, was 6.7%.
  • Completed the initial $200 million share repurchase authorization announced in November 2018, repurchasing 3.0 million shares in the first quarter for $97 million and an additional 0.9 million shares for $30 million through April 30, 2019.
  • Comparability of first quarter 2019 and 2018 results is affected by net construction-related deferrals of $37 million in the first quarter of 2018.

Outlook


  • Net income is now projected to be between $240 million and $255 million, reflecting lower Adjusted EBITDA, higher interest expense primarily driven by borrowings used to fund share repurchases and an increase in share-based compensation expense.
  • Diluted EPS is now projected to be between $2.61 and $2.77.
  • Full-year 2019 contract sales are expected to increase from 5.0% to 8.0% due to softer than anticipated contract sales growth in the first quarter and a project timing shift.
  • Adjusted EBITDA is projected to be between $445 million and $465 million reflecting current inventory mix and a project timing shift.
  • Adjusted free cash flow is projected to be between $60 and $120 million, unchanged from prior outlook.
  • The revised 2019 outlook does not reflect any additional share repurchases or construction-related deferrals or recognitions.

 

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