Marriott Vacations Worldwide Financial Results
Adjusted EBITDA totaled $57.7 million, an increase of $1.0 million, or 2 percent, year-over-year.
Second quarter 2015 net income was$34.0 million, or$1.05diluted EPS, compared to net income of$35.3 million, or$1.00diluted EPS, in the second quarter of 2014. Company development margin was 21.3 percent andNorth Americadevelopment margin was 23.6 percent in the second quarter of 2015.
Non-GAAP financial measures such as adjusted EBITDA, adjusted net income, adjusted earnings per share and adjusted development margin are reconciled and adjustments are shown and described in further detail on pages A-1 through A-19 of the Financial Schedules that follow.
«We’re pleased with our solid second quarter financial results, delivering nearly$58 millionof Adjusted EBITDA,» saidStephen P. Weisz, president and chief executive officer. «Our North America contract sales grew 3.4 percent on continued growth in tour volumes and slightly higher VPG and our company development margin remained in line with our full year expectations. With a strong first half of the year behind us, we are reaffirming Adjusted EBITDA guidance of$222 million to $232 millionfor full year 2015.»
Total company contract sales were$165.9 million,$1.3 millionhigher than the second quarter of last year. The increase was driven by$5.0 millionof higher contract sales in the company’sNorth Americasegment and$0.7 millionof higher contract sales in the company’sAsia Pacificsegment, partially offset by$4.3 millionof lower contract sales in the company’sEuropesegment.
Adjusted development margin was$32.3 million, a$4.4 milliondecrease from the second quarter of 2014. Adjusted development margin percentage was 21.0 percent in the second quarter of 2015 compared to 24.2 percent in the second quarter of 2014. Development margin was$33.1 million, a$3.8 milliondecrease from the second quarter of 2014. Development margin percentage was 21.3 percent in the second quarter of 2015 compared to 24.2 percent in the second quarter of 2014.
VPG increased 0.6 percent to$3,404in the second quarter of 2015 from$3,383in the second quarter of 2014, driven by improved closing efficiency and higher pricing, offset partially by fewer points purchased per contract.North Americacontract sales were$150.6 millionin the second quarter of 2015, an increase of$5.0 million, or 3.4 percent, over the prior year period.
Second quarter 2015 North America segment financial results were$104.6 million, an increase of$2.9 millionfrom the second quarter of 2014. The increase was driven primarily by$8.2 millionof higher gains mainly associated with the disposition of the company’s property inKauai, Hawaii,$4.2 millionof higher rental revenues net of expenses,$2.1 millionof higher resort management and other services revenues net of expenses and$0.8 millionrelated to an impairment charge in the prior year period.
These increases were offset partially by$7.5 millionof lower litigation settlements due mainly to the settlement of a dispute with a former service provider in the prior year period,$2.0 millionof lower development margin,$2.0 millionfrom the reversal of a charge in the prior year period related to the company’s interest in an equity method investment in a joint venture project and$1.5 millionof lower financing revenues.