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Marriott Vacations Worldwide (VAC)

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 a diverse portfolio that includes seven vacation ownership brands. It also includes exchange networks and membership programs, as well as management of 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.

Company profile

Ticker
VAC
Exchange
CEO
Stephen Weisz
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Champagne Resorts, Inc • Flex Collection, LLC • HPC Developer, LLC • ILG, LLC • Interval International, Inc. • Marriott Ownership Resorts, Inc. • Marriott Vacation Club International • Marriott Resorts Hospitality Corporation • Marriott Vacation Club International Corp. • Marriott Resorts, Travel Company, Inc. ...
IRS number
452598330

VAC stock data

Analyst ratings and price targets

Last 3 months

Calendar

8 Aug 22
15 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 606M 606M 606M 606M 606M
Cash burn (monthly) 14.67M 89.5M (no burn) (no burn) (no burn)
Cash used (since last report) 22.59M 137.88M n/a n/a n/a
Cash remaining 583.41M 468.12M n/a n/a n/a
Runway (months of cash) 39.8 5.2 n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
10 Aug 22 Dwight D. Smith Common Stock Sell Dispose S No Yes 148 2,700 399.6K 17,112
21 Jun 22 Jonice Gray Tucker Common Stock Grant Acquire A No No 116.91 225 26.3K 1,543
21 Jun 22 Gellein Raymond L JR Common Stock Grant Acquire A No No 116.91 225 26.3K 26,100
9 Jun 22 Martinez Melquiades R. Common Stock Grant Acquire A No No 0 1 0 17,858
9 Jun 22 Martinez Melquiades R. Common Stock Grant Acquire A No No 0 1 0 17,857
9 Jun 22 Martinez Melquiades R. Common Stock Grant Acquire A No No 0 1 0 17,856
9 Jun 22 Martinez Melquiades R. Common Stock Grant Acquire A No No 0 2 0 17,855
9 Jun 22 Shaw William Joseph Common Stock Grant Acquire A No No 0 10 0 174,816
13F holders Current Prev Q Change
Total holders 374 375 -0.3%
Opened positions 49 65 -24.6%
Closed positions 50 54 -7.4%
Increased positions 108 105 +2.9%
Reduced positions 111 100 +11.0%
13F shares Current Prev Q Change
Total value 5.38B 5.79B -7.1%
Total shares 38.38M 39.02M -1.7%
Total puts 292.8K 132.4K +121.1%
Total calls 375.8K 241.81K +55.4%
Total put/call ratio 0.8 0.5 +42.3%
Largest owners Shares Value Change
Vanguard 3.71M $585.27M +0.5%
BLK Blackrock 3.46M $545.54M -2.2%
Bamco 2.89M $455.26M -1.9%
QRTEA Qurate Retail Inc - Series A 2.75M $0 0.0%
Juliana B. Marriott Marital Trust 2.01M $0 0.0%
PFG Principal Financial Group Inc - Registered Shares 1.86M $292.77M +3.3%
Senvest Management 1.56M $245.71M +14.1%
Dimensional Fund Advisors 1.17M $184.59M -6.7%
STT State Street 1.12M $176.97M +4.0%
TROW T. Rowe Price 1.12M $176.14M +25.5%
Largest transactions Shares Bought/sold Change
Norges Bank 0 -386.17K EXIT
TROW T. Rowe Price 1.12M +226.87K +25.5%
Senvest Management 1.56M +192.99K +14.1%
Citadel Advisors 410.4K -192.41K -31.9%
TimesSquare Capital Management 397K -143.1K -26.5%
Point72 Asset Management 49K -139.2K -74.0%
Millennium Management 413.9K +127.2K +44.4%
GS Goldman Sachs 383.68K -104.01K -21.3%
Stony Point Capital 0 -98.63K EXIT
Charles Schwab Investment Management 444.88K +96.03K +27.5%

Financial report summary

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Risks
  • The COVID-19 pandemic has had, and may continue to have, serious adverse effects on our business, financial condition, and results of operations for an unknown period of time.
  • The economic disruption caused by the COVID-19 pandemic has adversely affected our ability to generate cash to support our continuing operations and debt service, implement our growth plans and make other payments.
  • Our business may be adversely affected by factors that disrupt or deter travel.
  • Our results of operations can be adversely affected by labor shortages, turnover and labor cost increases.
  • Significant inflation, higher interest rates or deflation could adversely affect our business and financial results.
  • Our business is extensively regulated, and any failure to comply with applicable laws could materially adversely affect our business.
  • Changes in privacy laws could adversely affect our ability to market our products effectively.
  • Failure to maintain the integrity of internal or customer data or to protect our systems from cyber-attacks could disrupt our business, damage our reputation, and subject us to costs, fines or lawsuits.
  • Our international operations expose us to risks that could lower our profits or disrupt our business.
  • Inadequate or failed technologies could lead to interruptions in our operations and materially adversely affect our business, financial position, results of operations or cash flows.
  • Spanish court rulings voiding certain timeshare contracts have increased our exposure to litigation that may materially adversely affect our business and financial condition.
  • The industries in which our businesses operate are competitive, which may impact our ability to compete successfully.
  • Negative public perception regarding our industry could have an adverse effect on our operations.
  • Changes in tax regulations or their interpretation could reduce our profits or increase our costs.
  • Concentration of some of our resorts, sales centers and exchange destinations in particular geographic areas exposes our business to the effects of severe weather and other regional events in these areas.
  • If we are not able to successfully identify, finance, integrate and/or manage costs related to acquisitions, our business operations and financial position could be adversely affected.
  • Our use of different estimates and assumptions in the application of our accounting policies could result in material changes to our reported financial condition and results of operations, and changes in accounting standards or their interpretation could significantly impact our reported results of operations.
  • The growth of our business and execution of our business strategies depend on the services of our senior management and our associates.
  • Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.
  • The termination of our license agreements with Marriott International or Hyatt, or our rights to use their trademarks at our existing or future properties, could materially harm our business.
  • Deterioration in the quality or reputation of the brands associated with our portfolio could adversely affect our market share, reputation, business, financial condition and results of operations.
  • Marriott International could compete with our vacation ownership business in the future.
  • If a branded hotel property co-located with one of our resorts ceases to be affiliated with the same brand as our resort or a related brand, our business could be harmed.
  • We may not have inventory available for sale when needed or we may have excess inventory.
  • The sale of vacation ownership interests in the secondary market by existing owners could cause our sales revenues and profits to decline.
  • Purchaser defaults on the vacation ownership notes receivable our business generates could reduce our revenues, cash flows and profits.
  • Our points-based product forms expose us to an increased risk of temporary inventory depletion.
  • Our development activities expose us to project cost and completion risks.
  • Our resort management business may be adversely affected by the loss of management contracts, failure of resorts to comply with brand standards, increased maintenance fees and disagreements with owners.
  • Damage to, or other potential losses involving, properties that we own or manage may not be covered by insurance.
  • Our Exchange & Third-Party Management business depends on relationships with developers, members and others, and any adverse changes in these relationships could adversely affect our business, financial condition, and results of operations.
  • Insufficient availability of exchange inventory may adversely affect our profits.
  • Our indebtedness may restrict our operations.
  • If we are unable to comply with our debt agreements, or to raise additional capital when needed, our business, cash flow, liquidity, and results of operations could be harmed.
  • We may incur substantially more debt, which could exacerbate further the risks associated with our leverage.
  • If the default rates or other credit metrics underlying our vacation ownership notes receivable deteriorate, our vacation ownership notes receivable securitization program and VOI financing program could be adversely affected.
  • We are subject to risks relating to our convertible notes.
  • We are subject to risks relating to the convertible note hedges and warrants.
  • We may be adversely affected by changes in LIBOR reporting practices.
  • Our share repurchase program may not enhance long-term shareholder value and could increase the volatility of the market price of our common stock and diminish our cash.
  • Our ability to pay dividends on our stock is limited.
  • Anti-takeover provisions in our organizational documents, Delaware law and in certain of our agreements could delay or prevent a change in control.
  • The ILG Acquisition could result in material liability if it causes the Vistana Spin-Off to be taxable.
Management Discussion
  • Sale of vacation ownership products increased $607 million due primarily to $706 million of higher consolidated contract sales volumes, net of resales, $28 million of lower sales reserve activity, $14 million of higher settlement revenue, and $5 million of higher resales activity, partially offset by a $102 million unfavorable change in revenue reportability and $44 million of higher sales incentives issued (higher settlement revenue and higher sales incentives issued were driven by the higher contract sales volumes year-over-year).
  • The higher contract sales performance reflects the continued ramp-up of the business following the initial impact of the COVID-19 pandemic which commenced late in the prior year first quarter and resulted in the closure of all of our sales centers, as well as the inclusion of the Welk business beginning in the second quarter of 2021. As a result of reopening our sales centers throughout 2020 and 2021, as well as the Welk Acquisition, our contract sales volumes have improved on a sequential basis each quarter and we expect that sequential improvement to continue in 2022.
  • The lower sales reserve reflects the prior year increase to the sales reserve to take into account higher expected default activity as a result of the COVID-19 pandemic.

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