Hilton Grand Vacations Reports Record First Quarter Results, Raises Full Year Outlook and Cost Synergy Target, and Announces Share Repurchase Program

Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” or “the Company”) today reports its first-quarter 2022 results.

First Quarter 2022 Results1

  • Total contract sales in the first quarter were $509 million, 96% of Pro-forma combined Q1 2019 contract sales.
  • Member count increased for the seventh straight quarter. Net Owner Growth (NOG) for the Legacy-HGV business for the 12 months ended March 31, 2022, was 2.1%, and Diamond added nearly 1,600 net new members in the quarter.
  • Total revenues for the first quarter were $779 million compared to $235 million for the same period in 2021.
    • Total revenues were affected by a deferral of $42 million in the current period compared to a deferral of $32 million in the same period in 2021.
  • Net income for the first quarter was $51 million compared to ($7) million net loss for the same period in 2021.
    • Net income was affected by a net deferral of $22 million in the current period compared to a net deferral of $18 million in the same period in 2021.
  • Diluted EPS for the first quarter was $0.42 compared to ($0.08) for the same period in 2021.
    • Diluted EPS was affected by a net deferral of $22 million in the current period compared to a net deferral of $18 million in the same period in 2021, or $0.18 and $0.21 per share in the current period and the same period in 2021, respectively.
  • Adjusted EBITDA for the first quarter was $202 million compared to $42 million for the same period in 2021.
    • Adjusted EBITDA was affected by a net deferral of $22 million in the current period compared to a net deferral of $18 million in the same period in 2021.
  • Now expecting to achieve cost synergies of $150 million within the 24-month period following the August 2021 close of the Diamond transaction, up from the prior target of greater than $125 million of cost synergies within 24 months of close.
  • HGV’s Board of Directors approved a two-year share repurchase program authorizing the Company to repurchase up to an aggregate of $500 million of its outstanding shares of common stock.

Full Year 2022 Outlook

  • The Company is raising its Deferral Adjusted EBITDA range to $960 million to $990 million, from the prior range of $915 million to $935 million.

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