- Joined
- Apr 14, 2018
- Messages
- 4,148
- Reaction score
- 3,619
- Location
- The Land of Ice and Snow
- Resorts Owned
- HGVC: The Flamingo, The Boulevard
HGV Investor Call 8-9-2024
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
Here is the highlights from the HGV 2024 Investor call
My take - This was a hard read. The deflection was evident in reasons why they underperformed this quarter. From lower consumer spending to the reorg and centralization of their sales department and underperforming resorts, they had an excuse for everything. The finance guy even did a figure taking away the sales of Ocean Tower and Maui. While it’s not as bad as other systems, it was a bad quarter. Hopefully this is just one time thing and they will rebound. One thing they did say was the strengthening Yen was going to help and they were already seeing some improvement in the Japanese market. Their new Japanese resort is completely booked and they predict they will see an increase in Japanese travel to Hawaii soon.
Last question was on the new appointed board member. The question was if they were qualified for the spot. Both Mark Wang and the finance person spoke of the new board member and said it was an Apollo hire, bit they were confident that she’s up to speed (she was in the first board meeting). She was involved in the DRI deal and knows the business.
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
Here is the highlights from the HGV 2024 Investor call
- Contract Sales was $757 Million with Bluegreen accounting for $189 million of that
- New buyers were 31% of total sales
- EBITDA of $270 Million (below expectations)
- April and May were on target, but June was very slow
- Saw slower sales in all brands in June
- Slower consumer discretionary spending (it really slowed in June)
- Maui and Ocean Tower did not meet sales expectations
- Had major restructuring of sales department with Bluegreen integration
- Wants a more centralized approach with large market
- Give tools to smaller markets to bring in more localized tours
- They have fixed or are fixing the sales issues, but may take time to move through the business model
- Tour and VPG (volume per guest) was down from last year
- 228,000 total tours with Bluegreen just under 66,000 of them
- Current owner sales say a mid single digit increase in each month of the quarter
- Current owner sales are up 15% from the same time in 2019
- New buyer tours are down
- VPG was $3,300 and that 10% up from 2019 levels
- Legacy HGV and Bluegreen VPG was down single digit percentages from last year
- Bad debt provisions was at 15% (actual rate was 9.68%)
- Real estate sales and marketing expense was $375 million (49%)
- Revenue was $171 million for the quarter and segment profit was $123 million
- Rental and ancillary revenues were $195 million in the quarter
- Revenue growth was driven by higher available room nights offset by slightly lower RevPAR (revenue per available room), expenses on low legacy business continued to be elevated due to the impact of additional inventory and developer maintenance fee expense, along with inclusion of Bluegreen's, much lower margins, rental business.
- Occupancy was 83%, a very acceptable level. They just need to sell to those travelers
- $370 million in free-cash flow, bought back 2.3 million shares ($100 million)
- Rebranded 40 resorts (9800 keys) and plan to rebrand 7 more (1300 keys)
- Combined the Legacy HGVC and Diamond member websites
- Members are using Great Wolf Lodge trips
- Hope to roll out Max to Bluegreen soon, but no timeline
- 702,000 combined members
- Asked about MF increases and referenced a competitor and the 15% - 20% increase. Said they are projected to be mid single digit increases
My take - This was a hard read. The deflection was evident in reasons why they underperformed this quarter. From lower consumer spending to the reorg and centralization of their sales department and underperforming resorts, they had an excuse for everything. The finance guy even did a figure taking away the sales of Ocean Tower and Maui. While it’s not as bad as other systems, it was a bad quarter. Hopefully this is just one time thing and they will rebound. One thing they did say was the strengthening Yen was going to help and they were already seeing some improvement in the Japanese market. Their new Japanese resort is completely booked and they predict they will see an increase in Japanese travel to Hawaii soon.
Last question was on the new appointed board member. The question was if they were qualified for the spot. Both Mark Wang and the finance person spoke of the new board member and said it was an Apollo hire, bit they were confident that she’s up to speed (she was in the first board meeting). She was involved in the DRI deal and knows the business.
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