2025 Q1 HGV Earnings Report

[dayooper]

Previous Investor Calls/Reports

2024 Q4/Annual Earnings Call
2024 Q3 Earnings Call
2024 Q2 Earnings Call
2024 Q1 Investor Call
2023 Q4/Annual Earnings Call
2023 Q3 Earnings Call
2023 Q2 Earnings Call
2023 Q1 Earnings Call
2022 Q3 Earnings Call
2022 Q1 Earnings Call
2021 Q3 Earnings Call


First Quarter of 2025 highlights[1]

• Total contract sales were $721 million, an increase of 14% compared to the first quarter of 2024, or 10% on a pro forma basis.
• Member count was 725,000. Consolidated Net Owner Growth (NOG) for the 12 months ended March 31, 2025, was 0.9%.
• Total revenues for the first quarter of 2025 were $1.148 billion compared to $1.156 billion for the same period in 2024.
  
  • Total revenues were affected by a net deferral of $126 million in the current period compared to a net recognition of $2 million in the same period in 2024.
• Net loss attributable to stockholders for the first quarter was $(17) million compared to $(4) million net loss attributable to stockholders for the same period in 2024.
  
  • Adjusted net income attributable to stockholders for the first quarter was $9 million compared to $99 million for the same period in 2024.
  • Net income attributable to stockholders and adjusted net income attributable to stockholders were affected by a net deferral of $68 million in the current period compared to a net recognition of $3 million in the same period in 2024.
• Diluted EPS for the first quarter was $(0.17) compared to $(0.04) for the same period in 2024.
  
  • Adjusted diluted EPS for the first quarter was $0.09 compared to $0.95 for the same period in 2024.
  • Diluted EPS and adjusted diluted EPS were affected by a net deferral of $68 million in the current period compared to a net recognition of $3 million in the same period in 2024, or $(0.71) and $0.03 per share in the current period and the same period in 2024, respectively.
• Adjusted EBITDA attributable to stockholders for the first quarter was $180 million compared to $273 million for the same period in 2024.
  
  • Adjusted EBITDA attributable to stockholders was affected by a net deferral of $68 million in the current period compared to a net recognition of $3 million in the same period in 2024.
• During the first quarter, the Company repurchased 3.9 million shares of common stock for $150 million.
  
  • From April 1 through April 24, 2025, the Company repurchased approximately 1.8 million shares for $60 million and currently has $218 million of remaining availability under the share repurchase program.
• The Company is reiterating its prior guidance for the full year 2025 Adjusted EBITDA, excluding deferrals and recognitions, of $1.125 billion to $1.165 billion

Owner Oriented News -

• 725,000 total members (up 0.9%) with 215,000 Max members,13,000 of those coming from BlueGreen
• Average of 77% occupancy with Hawaii, NYC and East Coast having the highest occupancy areas
• Average booking timeframe is 177 days out for owners, 95 days for packages and 40 days for rentals
• Plan on rebranding 10-12 BlueGreen properties a year for the next three years.
• Added 9 new Great Wolf Lodge, 79 Bass Pro Shops and many Choice Hotel sales centers.
• Trying to be choosier on who takes tours, looking at credit scores and such more often.

Finance Related -

• $721 Million in contract sales (up 10% from last year)
• $378 Million in VOI sales (down 13.8% from last year)
• $4100 VPG (sales per tours given)
• 175,000 Tours (down 4% from last year)
• Financing revenue for the quarter was $125 Million
• Total revenue $1.15 Billion (missed the expected revenue by $10 million)
• Deferred revenue of $126 Million due to sales on properties still under construction
• Adjusted Diluted EPS of $0.09 (down 90% from the $0.95 last year), last year they gained from deferrals from previous years - Diluted EPS is how much profit per share after assuming all convertible securities have been taken out.
• Through April 24th, HGV has repurchased 5.7 million shares for $210 Million.

My Thoughts - Like last quarter, there's not much info for us owners as far as new resorts and info on the programs. The talk was all why their numbers were down and the spin on why we should still be investing in them. It's still a mixed bag, but there were some misses. The decrease in EPS is a red flag. They didn't have the deferred revenue last year. That would have brought it up a fair amount. Then again, their sales included unfinished resorts like Ka Haku. They missed the total revenue, but not by much. This is the 2nd quarter in a row they missed expected total revenue. Not normal. They planning for changes in the Macroeconomics. HGV is still integrating BlueGreen and hopes to be complete by the end of the year. They didn't say much about how they were rebranding BlueGreen, but said up 36 properties in the next 3 years will go through with it.

https://seekingalpha.com/article/4780804-hilton-grand-vacations-inc-hgv-q1-2025-earnings-call-transcript

Hilton Grand Vacations Inc. - Investor Relations

investors.hgv.com

 

[Chris-ATX]

Thanks @dayooper for posting. Always interesting to catch up on the business side of things.

 

[Reddart]

Interesting that the stock went up even after missing expectations. Though I would never be long on HGV stock, it does have a decent beta, and I have done some short term trading with the market dips. I’ve covered all my W57th short term stay fees and bit into some of my maintenance fees with the proceeds

 

[dayooper]

I’m learning about this stuff by looking at these. I always knew I didn’t know a lot, but I really have a long way to go.

 

[mountainboy]

Owner Oriented News -

• 725,000 total members (up 0.9%) with 215,000 Max members,13,000 of those coming from BlueGreen
• Average of 77% occupancy with Hawaii, NYC and East Coast having the highest occupancy areas
• Average booking timeframe is 177 days out for owners, 95 days for packages and 40 days for rentals
• Trying to be choosier on who takes tours, looking at credit scores and such more often.

Finance Related -

• $721 Million in contract sales (up 10% from last year)
• $378 Million in VOI sales (down 13.8% from last year)
• $4100 VPG (sales per tours given)
• 175,000 Tours (down 4% from last year)
• Financing revenue for the quarter was $125 Million

Very nice summary! Thx for sharing @dayooper !
Interesting DPs...
Despite the worries about economy, they are doing brisk sales with contracts...
Gurus, what's the difference between the contract sales & VOI sales?
How does VPG compare to Marriott, WynDumb & the like?
TY!

 

[dioxide45]

Very nice summary! Thx for sharing @dayooper !
Interesting DPs...
Despite the worries about economy, they are doing brisk sales with contracts...
Gurus, what's the difference between the contract sales & VOI sales?
How does VPG compare to Marriott, WynDumb & the like?
TY!

Marriott Vacations VPG was $3979 (down 4%)
Travel & Leisure VPG was $3212 (up 6%)
HGV VPG was up 14.4%

 

[bizaro86]

what's the difference between the contract sales & VOI sales?

I'd be interested in knowing that as well - I suspect "VOI Sales" only includes the sales of timeshares, whereas "contract sales" includes everything, with the difference being bounceback type sales.

 

[dioxide45]

I'm not exactly sure what to make of that, but I think contract sales may be a total of all sales and VOI sales is just HGV developed inventory. Just-in-time indicates sale of interests that were developed by a third party (like Strand in South Carolina).