HGV Reports Full Year and Fourth Quarter 2020 Results

Hilton Grand Vacations

Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” or “the Company”) today reports its full year and fourth quarter 2020 results.

Fourth Quarter 2020 Results

Contract sales in the fourth quarter were $132 million.
Net Owner Growth (NOG) for the 12 months ended Dec. 31, 2020, was 0.7%.
Total revenues for the fourth quarter were $212 million compared to $468 million for the same period in 2019.
- Total revenues were affected by deferrals of $21 million and $35 million in the current period and the same period in 2019, respectively.
Net loss for the fourth quarter was ($154) million compared to $72 million net income for the same period in 2019.
- Net (loss) income was affected by net deferrals of $11 million and $19 million for the current period and the same period in 2019, respectively.
- Net loss for the fourth quarter was impacted by a non-cash impairment expense of $209 million primarily due to the commencement of a sale process for certain unused parcels of excess land, and the associated mark-to-market impact.
Diluted EPS for the fourth quarter was ($1.81) compared to $0.83 for the same period in 2019.
- Diluted EPS was affected by net deferrals of $11 million and $19 million, or $0.13 and $0.22 per share in the current period and the same period in 2019, respectively.
- Net loss for the fourth quarter was impacted by a non-cash impairment expense of $2.46 per share primarily due to the commencement of a sale process for certain unused parcels of excess land, and the associated mark-to-market impact.
Adjusted EBITDA for the fourth quarter was $24 million compared to $105 million for the same period in 2019.
- Adjusted EBITDA was affected by net deferrals of $11 million and $19 million in the current period and the same period in 2019, respectively.
In addition to the adverse impact from the closure of HGV sales centers and resort operations, the COVID-19 pandemic had the following impacts on total revenues, net loss, diluted EPS and Adjusted EBITDA for the fourth quarter:
- $3 million or $0.04 per share benefit from an employee retention credit granted primarily under the CARES Act, primarily related to payments made to employees as a result of operational closures caused by the COVID-19 pandemic.