Hilton Grand Vacations (HGV) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose to $1.31 billion, up 28% year-over-year, driven by the Bluegreen acquisition and higher contract sales.

• Net income attributable to stockholders was $29 million, down from $92 million in Q3 2023, impacted by acquisition and integration costs.

• Adjusted EBITDA for Q3 2024 was $307 million, up 14% year-over-year; contract sales reached $777 million, up 29%.

• Bluegreen integration and rebranding are progressing, with cost synergies ahead of plan and new regional sales structure deployed.

• Member count reached 722,000, with Net Owner Growth of 1.2% for the legacy business.

Financial highlights

• Diluted EPS was $0.28, down from $0.83 in Q3 2023; adjusted diluted EPS was $0.67, down from $0.98.

• Adjusted net income attributable to stockholders was $68 million, compared to $109 million in Q3 2023.

• Free cash flow for the quarter was $59 million, down from $70 million; adjusted free cash flow was $(42) million, down from $257 million.

• Corporate debt was $5.0 billion (6.70% avg. rate); non-recourse debt was $1.6 billion (5.07% avg. rate).

• Total cash and cash equivalents stood at $297 million, with $244 million in restricted cash as of September 30, 2024.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance, excluding deferrals and recognitions, reiterated at $1.075–$1.135 billion, with Q4 expected to see greater hurricane-related disruption.

• Management expects further improvement from strategic regionalization, staffing changes, and the HGV Max rollout to Bluegreen.

• Rebranding of Bluegreen properties to Hilton Grand Vacations brands expected to begin in 2025.