Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Marriott Vacations Worldwide Reports Third Quarter 2023 Financial Results By: Marriott Vacations Worldwide Corporation via Business Wire November 01, 2023 at 16:30 PM EDT Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW” or the “Company”) reported third quarter 2023 financial results. Third Quarter 2023 Highlights Consolidated Vacation Ownership contract sales were $438 million and volume per guest (“VPG”) increased $87 sequentially from the second quarter, or 2%, to $4,055. The Company estimates the Maui wildfires negatively impacted contract sales by $28 million and VPG by approximately $66, or 2%, in the quarter. Net income attributable to common shareholders was $42 million compared to $109 million in the prior year, and fully diluted earnings per share was $1.09. The Company recorded a $59 million charge to its loan loss provision in the third quarter resulting in a $36 million negative impact to Net income attributable to common shareholders and a $49 million negative impact to Adjusted EBITDA. Adjusted net income attributable to common shareholders was $48 million and adjusted fully diluted earnings per share was $1.20. Adjusted EBITDA was $150 million. The Company estimates the Maui wildfires negatively impacted Adjusted EBITDA by $24 million in the quarter and the increased loan loss provision impacted Adjusted EBITDA by $49 million. The Company repurchased 793,300 shares of its common stock for $86 million during the quarter and declared a $0.72 per share quarterly dividend, which was paid in October. The Company updated its full year outlook. “We had a difficult quarter between the devastating wildfires in Maui and default rates on our loan portfolio remaining above our recent experience. However, our loan delinquencies are stabilizing and with Maui reopen for tourism we have started to see our resort occupancies recover,” said John Geller, president and chief executive officer. “We've also been working hard educating consumers about the benefits of Abound by Marriott Vacations and our salespeople are getting more comfortable selling the new product, which was evident in our results this quarter, with VPG growing sequentially from the prior quarter.” Third Quarter 2023 Results On August 8, 2023, a wildfire devastated the area of West Maui. While the Company operates four vacation ownership resorts and sales centers in the area, it did not sustain any physical damage to these resorts and sales centers. However, the Company estimates the Maui wildfires negatively impacted its third quarter contract sales by approximately $28 million, its third quarter Net income attributable to common shareholders by $18 million and its Adjusted EBITDA by $24 million. In the third quarter of 2022, the Company aligned its contract terms for the sale of its Marriott-, Westin-, and Sheraton-branded vacation ownership products, resulting in the acceleration of revenue from the sale of Marriott-branded vacation ownership interests. In addition, the Company aligned its reserve methodology for vacation ownership notes receivable for these brands, resulting in a decrease in the reserve for the acquired notes offset by an increase in the reserve for the originated notes. Together, these changes were referred to as the “Alignment.” The tables below illustrate the comparison of the reported results from the third quarter of 2023, as well as adjusted results that reflect the estimated impact of the Maui fires, to the results from the third quarter of 2022, including the impact of the Alignment on the Company’s reported results for that time period. In the tables below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. Consolidated Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Net income attributable to common shareholders $ 42 $ 18 $ 60 $ 109 $ (33 ) $ 76 Adjusted net income attributable to common shareholders* $ 48 $ 18 $ 66 $ 131 $ (33 ) $ 98 Adjusted EBITDA* $ 150 $ 24 $ 174 $ 284 $ (44 ) $ 240 Vacation Ownership Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Sale of vacation ownership products $ 319 $ 19 $ 338 $ 444 $ (27 ) $ 417 Development profit $ 67 $ 13 $ 80 $ 161 $ (25 ) $ 136 Management and exchange profit $ 74 $ 3 $ 77 $ 72 $ — $ 72 Rental profit $ 6 $ 5 $ 11 $ 24 $ — $ 24 Financing profit $ 51 $ — $ 51 $ 69 $ (19 ) $ 50 Other $ (1 ) $ 1 $ — $ (1 ) $ — $ (1 ) Segment financial results attributable to common shareholders $ 149 $ 22 $ 171 $ 270 $ (33 ) $ 237 Segment margin 22.3% 24.5% 33.5% 30.6% Segment Adjusted EBITDA* $ 173 $ 22 $ 195 $ 299 $ (44 ) $ 255 Segment Adjusted EBITDA margin* 25.8% 27.9% 37.1% 32.7% Three Months Ended September 30, 2023 September 30, 2022 (Contract sales $ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 438 $ 28 $ 466 $ 483 $ — $ 483 VPG $ 4,055 $ 66 $ 4,121 $ 4,353 $ — $ 4,353 Tours 100,609 5,101 105,710 104,000 — 104,000 Revenues excluding cost reimbursements decreased 17% in the third quarter of 2023 compared to the prior year. The decline was driven by a 9% year-over-year reduction in consolidated contract sales resulting from 7% lower VPG and a 3% decline in tours, and a $59 million increase in its loan loss provision. Adjusted for the estimated $28 million impact of the Maui wildfires, consolidated contract sales would have declined 4% year-over-year, tours would have increased 2% and VPG would have declined 5%. Segment financial results attributable to common shareholders declined $121 million to $149 million in the third quarter of 2023. Adjusting for the estimated impact from the Maui wildfires and the prior year Alignment benefit: Segment Adjusted EBITDA declined $60 million year-over-year primarily due to lower development and rental profit and a $49 million net loan loss impact in the current year. Development profit declined $56 million year-over-year primarily due to a $49 million net loan loss impact in the current year and 4% lower contract sales. Rental profit declined $13 million year-over-year primarily due to lower ADR and higher inventory costs. Management and exchange profit increased $5 million year-over-year due to higher revenue from management fees and club dues. Exchange & Third-Party Management Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Management and exchange profit $ 19 $ 1 $ 20 $ 27 $ — $ 27 Segment financial results attributable to common shareholders $ 23 $ 1 $ 24 $ 29 $ — $ 29 Segment margin 37.4% 38.1% 44.4% 44.4% Segment Adjusted EBITDA* $ 30 $ 1 $ 31 $ 39 $ — $ 39 Segment Adjusted EBITDA margin* 49.8% 50.3% 57.6% 57.6% Revenues excluding cost reimbursements decreased 7% in the third quarter of 2023 compared to the prior year driven primarily by lower exchange and Getaway volumes. Interval International active members decreased 1% compared to the prior year to 1.6 million and Average revenue per member increased 1% year-over-year. Segment financial results attributable to common shareholders were $23 million in the third quarter of 2023 and Segment margin was 37%. Adjusted for the estimated $1 million negative impact from the Maui wildfires, Segment Adjusted EBITDA decreased to $31 million and Segment Adjusted EBITDA Margin was 50%. Corporate and Other General and administrative costs decreased $5 million in the third quarter of 2023 compared to the prior year primarily as a result of lower variable compensation costs. Balance Sheet and Liquidity The Company ended the quarter with $1.0 billion in liquidity, including $265 million of cash and cash equivalents, $70 million of gross notes receivable that were eligible for securitization, and $659 million of available capacity under its revolving corporate credit facility. At the end of the third quarter of 2023, the Company had $3.0 billion of corporate debt and $2.0 billion of non-recourse debt related to its securitized notes receivable. Full Year 2023 Outlook While the Company's resorts in West Maui have reopened, it expects the wildfires to negatively impact its fourth quarter contract sales by approximately $32 to $37 million, its Net income attributable to common shareholders by approximately $19 to $22 million and its Adjusted EBITDA by approximately $26 to $31 million. The Company updated its full year 2023 guidance as reflected in the chart below. The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company. In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. (in millions, except per share amounts) 2023 Guidance Full Year Estimated Impact of Maui Wildfires Contract sales $1,750 to $1,770 $60 to $65 Net income attributable to common shareholders $268 to $278 $37 to $40 Earnings per share - diluted $6.59 to $6.82 $0.85 to $0.94 Net cash, cash equivalents and restricted cash provided by operating activities $271 to $307 $50 to $55 Adjusted EBITDA* $745 to $765 $50 to $55 Adjusted earnings per share - diluted* $7.44 to $7.78 $0.85 to $0.94 Adjusted free cash flow* $430 to $460 $50 to $55 Note: 2023 guidance includes the estimated impact of the Maui wildfires on the Company’s results. Non-GAAP Financial Information Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. Third Quarter 2023 Financial Results Conference Call The Company will hold a conference call on November 2, 2023 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com. Note on forward-looking statements This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for contract sales, results of operations, cash flows, future growth and projections for full year 2023. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: the effects of a future health crisis, including its short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price and wage inflation; global supply chain disruptions; volatility in the international and national economy and credit markets; the impact of the current or a future banking crisis; wars involving Russia, Ukraine, Israel and Gaza and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of rising interest rates; political or social strife; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws; the effects of steps that we or our affiliates have taken and may continue to take to reduce operating costs; impacts from natural or man-made disasters and wildfires, including the Maui wildfires; and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements. Financial Schedules Follow MARRIOTT VACATIONS WORLDWIDE CORPORATION FINANCIAL SCHEDULES QUARTER 3, 2023 TABLE OF CONTENTS Summary Financial Information A-1 Adjusted EBITDA by Segment A-2 Interim Consolidated Statements of Income A-3 to A-4 Revenues and Profit by Segment A-5 to A-8 Consolidated Contract Sales to Adjusted Development Profit A-9 to A-10 Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted A-11 Adjusted EBITDA A-12 Segment Adjusted EBITDA A-13 Vacation Ownership Exchange & Third-Party Management Interim Consolidated Balance Sheets A-14 Interim Consolidated Statements of Cash Flows A-15 to A-16 2023 Outlook Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share - Diluted and Adjusted EBITDA A-17 Adjusted Free Cash Flow A-18 Quarterly Operating Metrics A-19 Non-GAAP Financial Measures A-20 to A-21 A-1 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except VPG, tours, total active Interval International members, average revenue per member, and per share amounts) (Unaudited) SUMMARY FINANCIAL INFORMATION Three Months Ended Change % Nine Months Ended Change % September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Key Measures Total consolidated contract sales $ 438 $ 483 (9%) $ 1,325 $ 1,383 (4%) VPG $ 4,055 $ 4,353 (7%) $ 4,118 $ 4,544 (9%) Tours 100,609 104,000 (3%) 300,245 285,362 5% Total active Interval International members (000's)(1) 1,571 1,591 (1%) 1,571 1,591 (1%) Average revenue per Interval International member $ 39.15 $ 38.91 1% $ 120.48 $ 122.30 (1%) GAAP Measures Revenues $ 1,186 $ 1,252 (5%) $ 3,533 $ 3,468 2% Income before income taxes and noncontrolling interests $ 66 $ 169 (61%) $ 334 $ 437 (24%) Net income attributable to common shareholders $ 42 $ 109 (61%) $ 219 $ 303 28% Diluted shares 43.3 43.4 —% 43.8 45.9 (5%) Earnings per share - diluted $ 1.09 $ 2.53 (57%) $ 5.33 $ 6.68 (20%) Non-GAAP Measures* Adjusted EBITDA $ 150 $ 284 (47%) $ 575 $ 727 (21%) Adjusted pretax income $ 75 $ 207 (64%) $ 345 $ 508 (32%) Adjusted net income attributable to common shareholders $ 48 $ 131 (64%) $ 247 $ 343 (28%) Adjusted earnings per share - diluted $ 1.20 $ 3.02 (60%) $ 5.95 $ 7.53 (21%) (1) Includes members at the end of each period. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-2 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA BY SEGMENT (In millions) (Unaudited) Three Months Ended September 30, 2022 September 30, 2023 As Reported Impact of Alignment As Adjusted* Vacation Ownership $ 173 $ 299 $ (44 ) $ 255 Exchange & Third-Party Management 30 39 — 39 Segment Adjusted EBITDA* 203 338 (44 ) 294 General and administrative (57 ) (62 ) — (62 ) Other 4 8 — 8 Adjusted EBITDA* $ 150 $ 284 $ (44 ) $ 240 Nine Months Ended September 30, 2022 September 30, 2023 As Reported Impact of Alignment As Adjusted* Vacation Ownership $ 647 $ 772 $ (44 ) $ 728 Exchange & Third-Party Management 99 117 — 117 Segment Adjusted EBITDA* 746 889 (44 ) 845 General and administrative (189 ) (187 ) — (187 ) Other 18 25 — 25 Adjusted EBITDA* $ 575 $ 727 $ (44 ) $ 683 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-3 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Three Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* REVENUES Sale of vacation ownership products $ 319 $ 444 $ (27 ) $ 417 Management and exchange 205 198 — 198 Rental 138 165 — 165 Financing 81 74 — 74 Cost reimbursements 443 371 — 371 TOTAL REVENUES 1,186 1,252 (27 ) 1,225 EXPENSES Cost of vacation ownership products 50 76 (2 ) 74 Marketing and sales 202 207 — 207 Management and exchange 115 101 — 101 Rental 119 126 — 126 Financing 30 5 19 24 General and administrative 57 62 — 62 Depreciation and amortization 33 33 — 33 Litigation charges 2 2 — 2 Royalty fee 30 28 — 28 Impairment — 1 — 1 Cost reimbursements 443 371 — 371 TOTAL EXPENSES 1,081 1,012 17 1,029 Gains (losses) and other income (expense), net 3 (2 ) — (2 ) Interest expense, net (36 ) (34 ) — (34 ) Transaction and integration costs (5 ) (34 ) — (34 ) Other (1 ) (1 ) — (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 66 169 (44 ) 125 Provision for income taxes (24 ) (59 ) 11 (48 ) NET INCOME (LOSS) 42 110 (33 ) 77 Net income attributable to noncontrolling interests — (1 ) — (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 42 $ 109 $ (33 ) $ 76 EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic shares 36.4 39.5 39.5 Basic $ 1.16 $ 2.76 $ (0.80 ) $ 1.96 Diluted shares 43.3 43.4 43.4 Diluted $ 1.09 $ 2.53 $ (0.74 ) $ 1.79 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-4 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* REVENUES Sale of vacation ownership products $ 1,085 $ 1,179 $ (27 ) $ 1,152 Management and exchange 611 623 — 623 Rental 435 438 — 438 Financing 239 217 — 217 Cost reimbursements 1,163 1,011 — 1,011 TOTAL REVENUES 3,533 3,468 (27 ) 3,441 EXPENSES Cost of vacation ownership products 174 216 (2 ) 214 Marketing and sales 618 603 — 603 Management and exchange 332 330 — 330 Rental 344 294 — 294 Financing 81 49 19 68 General and administrative 189 187 — 187 Depreciation and amortization 99 98 — 98 Litigation charges 7 7 — 7 Royalty fee 88 84 — 84 Impairment 4 1 — 1 Cost reimbursements 1,163 1,011 — 1,011 TOTAL EXPENSES 3,099 2,880 17 2,897 Gains and other income, net 34 39 — 39 Interest expense, net (106 ) (91 ) — (91 ) Transaction and integration costs (28 ) (99 ) — (99 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 334 437 (44 ) 393 Provision for income taxes (115 ) (134 ) 11 (123 ) NET INCOME (LOSS) 219 303 (33 ) 270 Net income attributable to noncontrolling interests — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 219 $ 303 $ (33 ) $ 270 EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic shares 36.9 41.1 41.1 Basic $ 5.96 $ 7.39 $ (0.78 ) $ 6.61 Diluted shares 43.8 45.9 45.9 Diluted $ 5.33 $ 6.68 $ (0.69 ) $ 5.99 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-5 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2023 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management REVENUES Sales of vacation ownership products $ 319 $ — $ — $ 319 Management and exchange(1) Ancillary revenues 62 1 — 63 Management fee revenues 44 5 — 49 Exchange and other services revenues 37 44 12 93 Management and exchange 143 50 12 205 Rental 128 10 — 138 Financing 81 — — 81 Cost reimbursements(1) 455 4 (16 ) 443 TOTAL REVENUES $ 1,126 $ 64 $ (4 ) $ 1,186 PROFIT Development $ 67 $ — $ — $ 67 Management and exchange(1) 74 19 (3 ) 90 Rental(1) 6 10 3 19 Financing 51 — — 51 TOTAL PROFIT 198 29 — 227 OTHER General and administrative — — (57 ) (57 ) Depreciation and amortization (23 ) (7 ) (3 ) (33 ) Litigation charges (2 ) — — (2 ) Royalty fee (30 ) — — (30 ) Gains (losses) and other income (expense), net 7 1 (5 ) 3 Interest expense, net — — (36 ) (36 ) Transaction and integration costs — — (5 ) (5 ) Other (1 ) — — (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 149 23 (106 ) 66 Provision for income taxes — — (24 ) (24 ) NET INCOME (LOSS) 149 23 (130 ) 42 Net income attributable to noncontrolling interests(1) — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 149 $ 23 $ (130 ) $ 42 SEGMENT MARGIN(2) 22% 37% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. A-6 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2022 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management As Reported As Adjusted* As Reported Impact of Alignment As Adjusted* REVENUES Sales of vacation ownership products $ 444 $ (27 ) $ 417 $ — $ — $ 444 $ 417 Management and exchange(1) Ancillary revenues 63 — 63 1 — 64 64 Management fee revenues 41 — 41 7 (1 ) 47 47 Exchange and other services revenues 32 — 32 47 8 87 87 Management and exchange 136 — 136 55 7 198 198 Rental 154 — 154 11 — 165 165 Financing 74 — 74 — — 74 74 Cost reimbursements(1) 374 — 374 5 (8 ) 371 371 TOTAL REVENUES $ 1,182 $ (27 ) $ 1,155 $ 71 $ (1 ) $ 1,252 $ 1,225 PROFIT Development $ 161 $ (25 ) $ 136 $ — $ — $ 161 $ 136 Management and exchange(1) 72 — 72 27 (2 ) 97 97 Rental(1) 24 — 24 11 4 39 39 Financing 69 (19 ) 50 — — 69 50 TOTAL PROFIT 326 (44 ) 282 38 2 366 322 OTHER General and administrative — — — — (62 ) (62 ) (62 ) Depreciation and amortization (23 ) — (23 ) (8 ) (2 ) (33 ) (33 ) Litigation charges (2 ) — (2 ) — — (2 ) (2 ) Royalty fee (28 ) — (28 ) — — (28 ) (28 ) Impairment (1 ) — (1 ) — — (1 ) (1 ) Gains (losses) and other income (expense), net 1 — 1 (1 ) (2 ) (2 ) (2 ) Interest expense, net — — — — (34 ) (34 ) (34 ) Transaction and integration costs (2 ) — (2 ) — (32 ) (34 ) (34 ) Other (1 ) — (1 ) — — (1 ) (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 270 (44 ) 226 29 (130 ) 169 125 Provision for income taxes — 11 11 — (59 ) (59 ) (48 ) NET INCOME (LOSS) 270 (33 ) 237 29 (189 ) 110 77 Net income attributable to noncontrolling interests(1) — — — — (1 ) (1 ) (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 270 $ (33 ) $ 237 $ 29 $ (190 ) $ 109 $ 76 SEGMENT MARGIN(2) 34% 31% 44% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-7 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2023 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management REVENUES Sales of vacation ownership products $ 1,085 $ — $ — $ 1,085 Management and exchange(1) Ancillary revenues 193 3 — 196 Management fee revenues 134 18 (2 ) 150 Exchange and other services revenues 98 136 31 265 Management and exchange 425 157 29 611 Rental 404 31 — 435 Financing 239 — — 239 Cost reimbursements(1) 1,182 12 (31 ) 1,163 TOTAL REVENUES $ 3,335 $ 200 $ (2 ) $ 3,533 PROFIT Development $ 293 $ — $ — $ 293 Management and exchange(1) 223 66 (10 ) 279 Rental(1) 50 31 10 91 Financing 158 — — 158 TOTAL PROFIT 724 97 — 821 OTHER General and administrative — — (189 ) (189 ) Depreciation and amortization (69 ) (23 ) (7 ) (99 ) Litigation charges (8 ) — 1 (7 ) Royalty fee (88 ) — — (88 ) Impairment (4 ) — — (4 ) Gains and other income, net 23 1 10 34 Interest expense, net — — (106 ) (106 ) Transaction and integration costs — — (28 ) (28 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 578 75 (319 ) 334 Provision for income taxes — — (115 ) (115 ) NET INCOME (LOSS) 578 75 (434 ) 219 Net income attributable to noncontrolling interests(1) — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 578 $ 75 $ (434 ) $ 219 SEGMENT MARGIN(2) 27% 40% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. A-8 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2022 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management As Reported As Adjusted* As Reported Impact of Alignment As Adjusted* REVENUES Sales of vacation ownership products $ 1,179 $ (27 ) $ 1,152 $ — $ — $ 1,179 $ 1,152 Management and exchange(1) Ancillary revenues 183 — 183 3 — 186 186 Management fee revenues 124 — 124 28 (5 ) 147 147 Exchange and other services revenues 95 — 95 146 49 290 290 Management and exchange 402 — 402 177 44 623 623 Rental 405 — 405 33 — 438 438 Financing 217 — 217 — — 217 217 Cost reimbursements(1) 1,026 — 1,026 19 (34 ) 1,011 1,011 TOTAL REVENUES $ 3,229 $ (27 ) $ 3,202 $ 229 $ 10 $ 3,468 $ 3,441 PROFIT Development $ 360 $ (25 ) $ 335 $ — $ — $ 360 $ 335 Management and exchange(1) 224 — 224 84 (15 ) 293 293 Rental(1) 94 — 94 33 17 144 144 Financing 168 (19 ) 149 — — 168 149 TOTAL PROFIT 846 (44 ) 802 117 2 965 921 OTHER General and administrative — — — — (187 ) (187 ) (187 ) Depreciation and amortization (67 ) — (67 ) (24 ) (7 ) (98 ) (98 ) Litigation charges (7 ) — (7 ) — — (7 ) (7 ) Royalty fee (84 ) — (84 ) — — (84 ) (84 ) Impairment (1 ) — (1 ) — — (1 ) (1 ) Gains (losses) and other income (expense), net 36 — 36 15 (12 ) 39 39 Interest expense, net — — — — (91 ) (91 ) (91 ) Transaction and integration costs (3 ) — (3 ) — (96 ) (99 ) (99 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 720 (44 ) 676 108 (391 ) 437 393 Provision for income taxes — 11 11 — (134 ) (134 ) (123 ) NET INCOME (LOSS) 720 (33 ) 687 108 (525 ) 303 270 Net income attributable to noncontrolling interests(1) — — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 720 $ (33 ) $ 687 $ 108 $ (525 ) $ 303 $ 270 SEGMENT MARGIN(2) 33% 32% 52% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-9 MARRIOTT VACATIONS WORLDWIDE CORPORATION CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited) Three Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 438 $ 483 $ — $ 483 Less resales contract sales (11 ) (10 ) — (10 ) Consolidated contract sales, net of resales 427 473 — 473 Plus: Settlement revenue 12 10 — 10 Resales revenue 6 5 — 5 Revenue recognition adjustments: Reportability — 54 (46 ) 8 Sales reserve (102 ) (64 ) 19 (45 ) Other(1) (24 ) (34 ) — (34 ) Sale of vacation ownership products 319 444 (27 ) 417 Less: Cost of vacation ownership products (50 ) (76 ) 2 (74 ) Marketing and sales (202 ) (207 ) — (207 ) Development Profit 67 161 (25 ) 136 Revenue recognition reportability adjustment — (43 ) 39 (4 ) Purchase accounting adjustments 2 5 — 5 Other — (5 ) — (5 ) Adjusted development profit* $ 69 $ 118 $ 14 $ 132 Development profit margin 20.7% 36.1% 32.6% Adjusted development profit margin* 21.5% 29.9% 32.0% (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-10 MARRIOTT VACATIONS WORLDWIDE CORPORATION CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 1,325 $ 1,383 $ — $ 1,383 Less resales contract sales (32 ) (30 ) — (30 ) Consolidated contract sales, net of resales 1,293 1,353 — 1,353 Plus: Settlement revenue 29 26 — 26 Resales revenue 18 13 — 13 Revenue recognition adjustments: Reportability 5 7 (46 ) (39 ) Sales reserve (185 ) (130 ) 19 (111 ) Other(1) (75 ) (90 ) — (90 ) Sale of vacation ownership products 1,085 1,179 (27 ) 1,152 Less: Cost of vacation ownership products (174 ) (216 ) 2 (214 ) Marketing and sales (618 ) (603 ) — (603 ) Development Profit 293 360 (25 ) 335 Revenue recognition reportability adjustment (3 ) (8 ) 39 31 Purchase accounting adjustments 6 14 — 14 Other — (5 ) — (5 ) Adjusted development profit* $ 296 $ 361 $ 14 $ 375 Development profit margin 27.0% 30.5% 29.1% Adjusted development profit margin* 27.4% 30.8% 31.6% (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-11 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED (In millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net income attributable to common shareholders $ 42 $ 109 $ 219 $ 303 Provision for income taxes 24 59 115 134 Income before income taxes attributable to common shareholders 66 168 334 437 Certain items: ILG integration — 22 $ 15 $ 80 Welk acquisition and integration 5 5 13 10 Other transformation initiatives — 6 — 6 Other transaction costs — 1 — 3 Transaction and integration costs 5 34 28 99 Early redemption of senior secured notes — — 10 — Gain on disposition of hotel, land and other (1 ) — (8 ) (33 ) Gain on disposition of VRI Americas — (1 ) — (17 ) Foreign currency translation 5 3 1 10 Insurance proceeds (1 ) — (3 ) (5 ) Change in indemnification asset (6 ) (1 ) (30 ) 2 Other — 1 (4 ) 4 (Gains) losses and other (income) expense, net (3 ) 2 (34 ) (39 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 7 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Early termination of VRI management contract — — — (2 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 2 3 — 3 Adjusted pretax income* 75 207 345 508 Provision for income taxes (27 ) (76 ) (98 ) (165 ) Adjusted net income attributable to common shareholders* $ 48 $ 131 $ 247 $ 343 Diluted shares 43.3 43.4 43.8 45.9 Adjusted earnings per share - Diluted* $ 1.20 $ 3.02 $ 5.95 $ 7.53 Excluding the Impact of Alignment: Adjusted net income attributable to common shareholders* $ 48 $ 98 $ 247 $ 310 Adjusted earnings per share - Diluted* $ 1.20 $ 2.28 $ 5.95 $ 6.83 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-12 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA (In millions) (Unaudited) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 42 $ 109 $ 219 $ 303 Interest expense, net 36 34 106 91 Provision for income taxes 24 59 115 134 Depreciation and amortization 33 33 99 98 Share-based compensation 6 10 25 30 Certain items: ILG integration — 22 15 80 Welk acquisition and integration 5 5 13 10 Other transformation initiatives — 6 — 6 Other transaction costs — 1 — 3 Transaction and integration costs 5 34 28 99 Early redemption of senior secured notes — — 10 — Gain on disposition of hotel, land and other (1 ) — (8 ) (33 ) Gain on disposition of VRI Americas — (1 ) — (17 ) Foreign currency translation 5 3 1 10 Insurance proceeds (1 ) — (3 ) (5 ) Change in indemnification asset (6 ) (1 ) (30 ) 2 Other — 1 (4 ) 4 (Gains) losses and other (income) expense, net (3 ) 2 (34 ) (39 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 7 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Early termination of VRI management contract — — — (2 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 2 3 — 3 ADJUSTED EBITDA* $ 150 $ 284 $ 575 $ 727 ADJUSTED EBITDA MARGIN* 20% 32% 24% 30% Excluding the Impact of Alignment ADJUSTED EBITDA* $ 150 $ 240 $ 575 $ 683 ADJUSTED EBITDA MARGIN* 20% 28% 24% 28% * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-13 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited) VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 149 $ 270 $ 578 $ 720 Depreciation and amortization 23 23 69 67 Share-based compensation 2 2 6 5 Certain items: Transaction and integration costs — 2 — 3 Gain on disposition of hotel, land and other — — (7 ) (33 ) Foreign currency translation — (1 ) — — Insurance proceeds (1 ) — (3 ) (3 ) Change in indemnification asset (6 ) — (9 ) — Other — — (4 ) — Gains and other income, net (7 ) (1 ) (23 ) (36 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 8 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 1 3 (1 ) 3 SEGMENT ADJUSTED EBITDA* $ 173 $ 299 $ 647 $ 772 SEGMENT ADJUSTED EBITDA MARGIN* 26% 37% 30% 35% Excluding the Impact of Alignment SEGMENT ADJUSTED EBITDA* $ 173 $ 255 $ 647 $ 728 SEGMENT ADJUSTED EBITDA MARGIN* 26% 33% 30% 34% EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 23 $ 29 $ 75 $ 108 Depreciation and amortization 7 8 23 24 Share-based compensation — 1 1 2 Certain items: Gain on disposition of hotel, land and other (1 ) — (1 ) — Gain on disposition of VRI Americas — (1 ) — (17 ) Early termination of VRI management contract — — — (2 ) Foreign currency translation — 2 — 2 Other 1 — 1 — SEGMENT ADJUSTED EBITDA* $ 30 $ 39 $ 99 $ 117 SEGMENT ADJUSTED EBITDA MARGIN* 50% 58% 53% 55% * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-14 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED BALANCE SHEETS (In millions, except share and per share data) Unaudited September 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 265 $ 524 Restricted cash (including $84 and $85 from VIEs, respectively) 238 330 Accounts receivable, net (including $14 and $13 from VIEs, respectively) 298 292 Vacation ownership notes receivable, net (including $1,885 and $1,792 from VIEs, respectively) 2,291 2,198 Inventory 642 660 Property and equipment, net 1,250 1,139 Goodwill 3,117 3,117 Intangibles, net 868 911 Other (including $88 and $76 from VIEs, respectively) 484 468 TOTAL ASSETS $ 9,453 $ 9,639 LIABILITIES AND EQUITY Accounts payable $ 238 $ 356 Advance deposits 169 158 Accrued liabilities (including $3 and $5 from VIEs, respectively) 359 369 Deferred revenue 371 344 Payroll and benefits liability 193 251 Deferred compensation liability 156 139 Securitized debt, net (including $2,048 and $1,982 from VIEs, respectively) 2,026 1,938 Debt, net 3,031 3,088 Other 165 167 Deferred taxes 335 331 TOTAL LIABILITIES 7,043 7,141 Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding — — Common stock — $0.01 par value; 100,000,000 shares authorized; 75,807,873 and 75,744,524 shares issued, respectively 1 1 Treasury stock — at cost; 40,122,822 and 38,263,442 shares, respectively (2,298 ) (2,054 ) Additional paid-in capital 3,953 3,941 Accumulated other comprehensive income 18 15 Retained earnings 734 593 TOTAL MVW SHAREHOLDERS' EQUITY 2,408 2,496 Noncontrolling interests 2 2 TOTAL EQUITY 2,410 2,498 TOTAL LIABILITIES AND EQUITY $ 9,453 $ 9,639 The abbreviation VIEs above means Variable Interest Entities. A-15 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 OPERATING ACTIVITIES Net income $ 219 $ 303 Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: Depreciation and amortization of intangibles 99 98 Amortization of debt discount and issuance costs 17 20 Vacation ownership notes receivable reserve 182 130 Share-based compensation 25 30 Impairment charges 2 1 Gains and other income, net (8 ) (48 ) Deferred income taxes 2 64 Net change in assets and liabilities: Accounts and contracts receivable (16 ) 6 Vacation ownership notes receivable originations (749 ) (728 ) Vacation ownership notes receivable collections 461 469 Inventory 80 74 Other assets (10 ) (21 ) Accounts payable, advance deposits and accrued liabilities (103 ) (28 ) Deferred revenue 24 (5 ) Payroll and benefit liabilities (58 ) 52 Deferred compensation liability 12 8 Other liabilities (2 ) 7 Deconsolidation of certain Consolidated Property Owners' Associations — (48 ) Purchase of property for future transfer to inventory (27 ) (12 ) Other, net (1 ) 8 Net cash, cash equivalents and restricted cash provided by operating activities 149 380 INVESTING ACTIVITIES Proceeds from disposition of subsidiaries, net of cash and restricted cash transferred — 94 Capital expenditures for property and equipment (excluding inventory) (92 ) (36 ) Issuance of note receivable to VIE — (47 ) Proceeds from collection of note receivable from VIE — 47 Purchase of company owned life insurance (8 ) (14 ) Other dispositions, net 15 5 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (85 ) 49 Continued A-16 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 FINANCING ACTIVITIES Borrowings from securitization transactions 916 609 Repayment of debt related to securitization transactions (828 ) (655 ) Proceeds from debt 790 505 Repayments of debt (956 ) (505 ) Finance lease incentive 10 — Finance lease payment (2 ) (3 ) Payment of debt issuance costs (6 ) (10 ) Repurchase of common stock (248 ) (528 ) Payment of dividends (80 ) (75 ) Payment of withholding taxes on vesting of restricted stock units (10 ) (23 ) Net cash, cash equivalents and restricted cash used in financing activities (414 ) (685 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash (1 ) (4 ) Change in cash, cash equivalents and restricted cash (351 ) (260 ) Cash, cash equivalents and restricted cash, beginning of period 854 803 Cash, cash equivalents and restricted cash, end of period $ 503 $ 543 A-17 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except per share amounts) 2023 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net income attributable to common shareholders $ 268 $ 278 Provision for income taxes 141 146 Income before income taxes attributable to common shareholders 409 424 Certain items(1) 23 28 Adjusted pretax income* 432 452 Provision for income taxes (127 ) (132 ) Adjusted net income attributable to common shareholders* $ 305 $ 320 Earnings per share - Diluted(2) $ 6.59 $ 6.82 Adjusted earnings per share - Diluted(2)* $ 7.44 $ 7.78 Diluted shares(2) 43.5 43.5 2023 ADJUSTED EBITDA OUTLOOK Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net income attributable to common shareholders $ 268 $ 278 Interest expense 145 145 Provision for income taxes 141 146 Depreciation and amortization 135 135 Share-based compensation 33 33 Certain items(1) 23 28 Adjusted EBITDA* $ 745 $ 765 (1) Certain items adjustment includes $40 million of anticipated transaction and integration costs, $10 million of anticipated litigation charges, $9 million of anticipated purchase accounting adjustments, and $4 million of impairments, partially offset by $34 million of gains and other income, net, and $1 million of other adjustments. (2) We expect 6.5 million shares to be included in diluted shares, reflecting the assumed conversion of our convertible notes and an add back of $18 million for interest expense to the numerator of the diluted earnings per share calculation. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-18 MARRIOTT VACATIONS WORLDWIDE CORPORATION 2023 ADJUSTED FREE CASH FLOW OUTLOOK (In millions) Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net cash, cash equivalents and restricted cash provided by operating activities $ 271 $ 307 Capital expenditures for property and equipment (excluding inventory) (110 ) (125 ) Borrowings from securitizations, net of repayments (30 ) (25 ) Securitized debt issuance costs (12 ) (12 ) Free cash flow* 119 145 Adjustments: Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1) 230 230 Certain items(2) 81 85 Change in restricted cash — — Adjusted free cash flow* $ 430 $ 460 (1) Represents the anticipated net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2022 and 2023 year ends. (2) Certain items adjustment consists primarily of the after-tax impact of anticipated transaction and integration costs. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-19 MARRIOTT VACATIONS WORLDWIDE CORPORATION QUARTERLY OPERATING METRICS (Contract sales in millions) Year Quarter Ended Full Year March 31 June 30 September 30 December 31 Vacation Ownership Consolidated contract sales 2023 $ 434 $ 453 $ 438 2022 $ 394 $ 506 $ 483 $ 454 $ 1,837 2021 $ 226 $ 362 $ 380 $ 406 $ 1,374 VPG 2023 $ 4,358 $ 3,968 $ 4,055 2022 $ 4,706 $ 4,613 $ 4,353 $ 4,088 $ 4,421 2021 $ 4,644 $ 4,304 $ 4,300 $ 4,305 $ 4,356 Tours 2023 92,890 106,746 100,609 2022 78,505 102,857 104,000 105,231 390,593 2021 45,871 79,900 84,098 89,495 299,364 Exchange & Third-Party Management Total active Interval International members (000's)(1) 2023 1,568 1,566 1,571 2022 1,606 1,596 1,591 1,566 1,566 2021 1,479 1,321 1,313 1,296 1,296 Average revenue per Interval International member 2023 $ 42.07 $ 39.30 $ 39.15 2022 $ 44.33 $ 38.79 $ 38.91 $ 35.60 $ 157.97 2021 $ 47.13 $ 46.36 $ 42.95 $ 42.93 $ 179.48 (1) Includes members at the end of each period. A-20 MARRIOTT VACATIONS WORLDWIDE CORPORATION NON-GAAP FINANCIAL MEASURES In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common shareholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures. Certain Items Excluded from Non-GAAP Financial Measures We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies. Adjusted Development Profit and Adjusted Development Profit Margin We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin. Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common shareholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to shareholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted A-21 EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies. Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations. Free Cash Flow and Adjusted Free Cash Flow We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results. Results As Adjusted for the Estimated Impact of the Maui Fires In our press release and schedules we provide As Adjusted results for the three- and nine-months ended September 30, 2023 for comparison purposes. The As Adjusted results reflect the estimated impact of the Maui fires on the Company’s reported results on a GAAP basis, as well as to the Company’s non-GAAP financial measures. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the estimated impact of the Maui fires. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any estimated impact from the Maui fires. Results As Adjusted for the Impact of the Alignment In our press release and schedules we provide As Adjusted results for the three- and nine-months ended September 30, 2022 for comparison purposes. The As Adjusted results exclude any impacts to the Company’s reported results on a GAAP basis, as well as to the Company’s non-GAAP financial measures, due to the Alignment. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the impact of the Alignment. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any impact from the Alignment. View source version on businesswire.com: https://www.businesswire.com/news/home/20231101621753/en/Contacts Neal Goldner Investor Relations 407-206-6149 neal.goldner@mvwc.com Cameron Klaus Global Communications 407-513-6066 cameron.klaus@mvwc.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Marriott Vacations Worldwide Reports Third Quarter 2023 Financial Results By: Marriott Vacations Worldwide Corporation via Business Wire November 01, 2023 at 16:30 PM EDT Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW” or the “Company”) reported third quarter 2023 financial results. Third Quarter 2023 Highlights Consolidated Vacation Ownership contract sales were $438 million and volume per guest (“VPG”) increased $87 sequentially from the second quarter, or 2%, to $4,055. The Company estimates the Maui wildfires negatively impacted contract sales by $28 million and VPG by approximately $66, or 2%, in the quarter. Net income attributable to common shareholders was $42 million compared to $109 million in the prior year, and fully diluted earnings per share was $1.09. The Company recorded a $59 million charge to its loan loss provision in the third quarter resulting in a $36 million negative impact to Net income attributable to common shareholders and a $49 million negative impact to Adjusted EBITDA. Adjusted net income attributable to common shareholders was $48 million and adjusted fully diluted earnings per share was $1.20. Adjusted EBITDA was $150 million. The Company estimates the Maui wildfires negatively impacted Adjusted EBITDA by $24 million in the quarter and the increased loan loss provision impacted Adjusted EBITDA by $49 million. The Company repurchased 793,300 shares of its common stock for $86 million during the quarter and declared a $0.72 per share quarterly dividend, which was paid in October. The Company updated its full year outlook. “We had a difficult quarter between the devastating wildfires in Maui and default rates on our loan portfolio remaining above our recent experience. However, our loan delinquencies are stabilizing and with Maui reopen for tourism we have started to see our resort occupancies recover,” said John Geller, president and chief executive officer. “We've also been working hard educating consumers about the benefits of Abound by Marriott Vacations and our salespeople are getting more comfortable selling the new product, which was evident in our results this quarter, with VPG growing sequentially from the prior quarter.” Third Quarter 2023 Results On August 8, 2023, a wildfire devastated the area of West Maui. While the Company operates four vacation ownership resorts and sales centers in the area, it did not sustain any physical damage to these resorts and sales centers. However, the Company estimates the Maui wildfires negatively impacted its third quarter contract sales by approximately $28 million, its third quarter Net income attributable to common shareholders by $18 million and its Adjusted EBITDA by $24 million. In the third quarter of 2022, the Company aligned its contract terms for the sale of its Marriott-, Westin-, and Sheraton-branded vacation ownership products, resulting in the acceleration of revenue from the sale of Marriott-branded vacation ownership interests. In addition, the Company aligned its reserve methodology for vacation ownership notes receivable for these brands, resulting in a decrease in the reserve for the acquired notes offset by an increase in the reserve for the originated notes. Together, these changes were referred to as the “Alignment.” The tables below illustrate the comparison of the reported results from the third quarter of 2023, as well as adjusted results that reflect the estimated impact of the Maui fires, to the results from the third quarter of 2022, including the impact of the Alignment on the Company’s reported results for that time period. In the tables below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. Consolidated Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Net income attributable to common shareholders $ 42 $ 18 $ 60 $ 109 $ (33 ) $ 76 Adjusted net income attributable to common shareholders* $ 48 $ 18 $ 66 $ 131 $ (33 ) $ 98 Adjusted EBITDA* $ 150 $ 24 $ 174 $ 284 $ (44 ) $ 240 Vacation Ownership Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Sale of vacation ownership products $ 319 $ 19 $ 338 $ 444 $ (27 ) $ 417 Development profit $ 67 $ 13 $ 80 $ 161 $ (25 ) $ 136 Management and exchange profit $ 74 $ 3 $ 77 $ 72 $ — $ 72 Rental profit $ 6 $ 5 $ 11 $ 24 $ — $ 24 Financing profit $ 51 $ — $ 51 $ 69 $ (19 ) $ 50 Other $ (1 ) $ 1 $ — $ (1 ) $ — $ (1 ) Segment financial results attributable to common shareholders $ 149 $ 22 $ 171 $ 270 $ (33 ) $ 237 Segment margin 22.3% 24.5% 33.5% 30.6% Segment Adjusted EBITDA* $ 173 $ 22 $ 195 $ 299 $ (44 ) $ 255 Segment Adjusted EBITDA margin* 25.8% 27.9% 37.1% 32.7% Three Months Ended September 30, 2023 September 30, 2022 (Contract sales $ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 438 $ 28 $ 466 $ 483 $ — $ 483 VPG $ 4,055 $ 66 $ 4,121 $ 4,353 $ — $ 4,353 Tours 100,609 5,101 105,710 104,000 — 104,000 Revenues excluding cost reimbursements decreased 17% in the third quarter of 2023 compared to the prior year. The decline was driven by a 9% year-over-year reduction in consolidated contract sales resulting from 7% lower VPG and a 3% decline in tours, and a $59 million increase in its loan loss provision. Adjusted for the estimated $28 million impact of the Maui wildfires, consolidated contract sales would have declined 4% year-over-year, tours would have increased 2% and VPG would have declined 5%. Segment financial results attributable to common shareholders declined $121 million to $149 million in the third quarter of 2023. Adjusting for the estimated impact from the Maui wildfires and the prior year Alignment benefit: Segment Adjusted EBITDA declined $60 million year-over-year primarily due to lower development and rental profit and a $49 million net loan loss impact in the current year. Development profit declined $56 million year-over-year primarily due to a $49 million net loan loss impact in the current year and 4% lower contract sales. Rental profit declined $13 million year-over-year primarily due to lower ADR and higher inventory costs. Management and exchange profit increased $5 million year-over-year due to higher revenue from management fees and club dues. Exchange & Third-Party Management Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Management and exchange profit $ 19 $ 1 $ 20 $ 27 $ — $ 27 Segment financial results attributable to common shareholders $ 23 $ 1 $ 24 $ 29 $ — $ 29 Segment margin 37.4% 38.1% 44.4% 44.4% Segment Adjusted EBITDA* $ 30 $ 1 $ 31 $ 39 $ — $ 39 Segment Adjusted EBITDA margin* 49.8% 50.3% 57.6% 57.6% Revenues excluding cost reimbursements decreased 7% in the third quarter of 2023 compared to the prior year driven primarily by lower exchange and Getaway volumes. Interval International active members decreased 1% compared to the prior year to 1.6 million and Average revenue per member increased 1% year-over-year. Segment financial results attributable to common shareholders were $23 million in the third quarter of 2023 and Segment margin was 37%. Adjusted for the estimated $1 million negative impact from the Maui wildfires, Segment Adjusted EBITDA decreased to $31 million and Segment Adjusted EBITDA Margin was 50%. Corporate and Other General and administrative costs decreased $5 million in the third quarter of 2023 compared to the prior year primarily as a result of lower variable compensation costs. Balance Sheet and Liquidity The Company ended the quarter with $1.0 billion in liquidity, including $265 million of cash and cash equivalents, $70 million of gross notes receivable that were eligible for securitization, and $659 million of available capacity under its revolving corporate credit facility. At the end of the third quarter of 2023, the Company had $3.0 billion of corporate debt and $2.0 billion of non-recourse debt related to its securitized notes receivable. Full Year 2023 Outlook While the Company's resorts in West Maui have reopened, it expects the wildfires to negatively impact its fourth quarter contract sales by approximately $32 to $37 million, its Net income attributable to common shareholders by approximately $19 to $22 million and its Adjusted EBITDA by approximately $26 to $31 million. The Company updated its full year 2023 guidance as reflected in the chart below. The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company. In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. (in millions, except per share amounts) 2023 Guidance Full Year Estimated Impact of Maui Wildfires Contract sales $1,750 to $1,770 $60 to $65 Net income attributable to common shareholders $268 to $278 $37 to $40 Earnings per share - diluted $6.59 to $6.82 $0.85 to $0.94 Net cash, cash equivalents and restricted cash provided by operating activities $271 to $307 $50 to $55 Adjusted EBITDA* $745 to $765 $50 to $55 Adjusted earnings per share - diluted* $7.44 to $7.78 $0.85 to $0.94 Adjusted free cash flow* $430 to $460 $50 to $55 Note: 2023 guidance includes the estimated impact of the Maui wildfires on the Company’s results. Non-GAAP Financial Information Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. Third Quarter 2023 Financial Results Conference Call The Company will hold a conference call on November 2, 2023 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com. Note on forward-looking statements This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for contract sales, results of operations, cash flows, future growth and projections for full year 2023. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: the effects of a future health crisis, including its short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price and wage inflation; global supply chain disruptions; volatility in the international and national economy and credit markets; the impact of the current or a future banking crisis; wars involving Russia, Ukraine, Israel and Gaza and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of rising interest rates; political or social strife; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws; the effects of steps that we or our affiliates have taken and may continue to take to reduce operating costs; impacts from natural or man-made disasters and wildfires, including the Maui wildfires; and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements. Financial Schedules Follow MARRIOTT VACATIONS WORLDWIDE CORPORATION FINANCIAL SCHEDULES QUARTER 3, 2023 TABLE OF CONTENTS Summary Financial Information A-1 Adjusted EBITDA by Segment A-2 Interim Consolidated Statements of Income A-3 to A-4 Revenues and Profit by Segment A-5 to A-8 Consolidated Contract Sales to Adjusted Development Profit A-9 to A-10 Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted A-11 Adjusted EBITDA A-12 Segment Adjusted EBITDA A-13 Vacation Ownership Exchange & Third-Party Management Interim Consolidated Balance Sheets A-14 Interim Consolidated Statements of Cash Flows A-15 to A-16 2023 Outlook Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share - Diluted and Adjusted EBITDA A-17 Adjusted Free Cash Flow A-18 Quarterly Operating Metrics A-19 Non-GAAP Financial Measures A-20 to A-21 A-1 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except VPG, tours, total active Interval International members, average revenue per member, and per share amounts) (Unaudited) SUMMARY FINANCIAL INFORMATION Three Months Ended Change % Nine Months Ended Change % September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Key Measures Total consolidated contract sales $ 438 $ 483 (9%) $ 1,325 $ 1,383 (4%) VPG $ 4,055 $ 4,353 (7%) $ 4,118 $ 4,544 (9%) Tours 100,609 104,000 (3%) 300,245 285,362 5% Total active Interval International members (000's)(1) 1,571 1,591 (1%) 1,571 1,591 (1%) Average revenue per Interval International member $ 39.15 $ 38.91 1% $ 120.48 $ 122.30 (1%) GAAP Measures Revenues $ 1,186 $ 1,252 (5%) $ 3,533 $ 3,468 2% Income before income taxes and noncontrolling interests $ 66 $ 169 (61%) $ 334 $ 437 (24%) Net income attributable to common shareholders $ 42 $ 109 (61%) $ 219 $ 303 28% Diluted shares 43.3 43.4 —% 43.8 45.9 (5%) Earnings per share - diluted $ 1.09 $ 2.53 (57%) $ 5.33 $ 6.68 (20%) Non-GAAP Measures* Adjusted EBITDA $ 150 $ 284 (47%) $ 575 $ 727 (21%) Adjusted pretax income $ 75 $ 207 (64%) $ 345 $ 508 (32%) Adjusted net income attributable to common shareholders $ 48 $ 131 (64%) $ 247 $ 343 (28%) Adjusted earnings per share - diluted $ 1.20 $ 3.02 (60%) $ 5.95 $ 7.53 (21%) (1) Includes members at the end of each period. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-2 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA BY SEGMENT (In millions) (Unaudited) Three Months Ended September 30, 2022 September 30, 2023 As Reported Impact of Alignment As Adjusted* Vacation Ownership $ 173 $ 299 $ (44 ) $ 255 Exchange & Third-Party Management 30 39 — 39 Segment Adjusted EBITDA* 203 338 (44 ) 294 General and administrative (57 ) (62 ) — (62 ) Other 4 8 — 8 Adjusted EBITDA* $ 150 $ 284 $ (44 ) $ 240 Nine Months Ended September 30, 2022 September 30, 2023 As Reported Impact of Alignment As Adjusted* Vacation Ownership $ 647 $ 772 $ (44 ) $ 728 Exchange & Third-Party Management 99 117 — 117 Segment Adjusted EBITDA* 746 889 (44 ) 845 General and administrative (189 ) (187 ) — (187 ) Other 18 25 — 25 Adjusted EBITDA* $ 575 $ 727 $ (44 ) $ 683 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-3 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Three Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* REVENUES Sale of vacation ownership products $ 319 $ 444 $ (27 ) $ 417 Management and exchange 205 198 — 198 Rental 138 165 — 165 Financing 81 74 — 74 Cost reimbursements 443 371 — 371 TOTAL REVENUES 1,186 1,252 (27 ) 1,225 EXPENSES Cost of vacation ownership products 50 76 (2 ) 74 Marketing and sales 202 207 — 207 Management and exchange 115 101 — 101 Rental 119 126 — 126 Financing 30 5 19 24 General and administrative 57 62 — 62 Depreciation and amortization 33 33 — 33 Litigation charges 2 2 — 2 Royalty fee 30 28 — 28 Impairment — 1 — 1 Cost reimbursements 443 371 — 371 TOTAL EXPENSES 1,081 1,012 17 1,029 Gains (losses) and other income (expense), net 3 (2 ) — (2 ) Interest expense, net (36 ) (34 ) — (34 ) Transaction and integration costs (5 ) (34 ) — (34 ) Other (1 ) (1 ) — (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 66 169 (44 ) 125 Provision for income taxes (24 ) (59 ) 11 (48 ) NET INCOME (LOSS) 42 110 (33 ) 77 Net income attributable to noncontrolling interests — (1 ) — (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 42 $ 109 $ (33 ) $ 76 EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic shares 36.4 39.5 39.5 Basic $ 1.16 $ 2.76 $ (0.80 ) $ 1.96 Diluted shares 43.3 43.4 43.4 Diluted $ 1.09 $ 2.53 $ (0.74 ) $ 1.79 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-4 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* REVENUES Sale of vacation ownership products $ 1,085 $ 1,179 $ (27 ) $ 1,152 Management and exchange 611 623 — 623 Rental 435 438 — 438 Financing 239 217 — 217 Cost reimbursements 1,163 1,011 — 1,011 TOTAL REVENUES 3,533 3,468 (27 ) 3,441 EXPENSES Cost of vacation ownership products 174 216 (2 ) 214 Marketing and sales 618 603 — 603 Management and exchange 332 330 — 330 Rental 344 294 — 294 Financing 81 49 19 68 General and administrative 189 187 — 187 Depreciation and amortization 99 98 — 98 Litigation charges 7 7 — 7 Royalty fee 88 84 — 84 Impairment 4 1 — 1 Cost reimbursements 1,163 1,011 — 1,011 TOTAL EXPENSES 3,099 2,880 17 2,897 Gains and other income, net 34 39 — 39 Interest expense, net (106 ) (91 ) — (91 ) Transaction and integration costs (28 ) (99 ) — (99 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 334 437 (44 ) 393 Provision for income taxes (115 ) (134 ) 11 (123 ) NET INCOME (LOSS) 219 303 (33 ) 270 Net income attributable to noncontrolling interests — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 219 $ 303 $ (33 ) $ 270 EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic shares 36.9 41.1 41.1 Basic $ 5.96 $ 7.39 $ (0.78 ) $ 6.61 Diluted shares 43.8 45.9 45.9 Diluted $ 5.33 $ 6.68 $ (0.69 ) $ 5.99 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-5 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2023 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management REVENUES Sales of vacation ownership products $ 319 $ — $ — $ 319 Management and exchange(1) Ancillary revenues 62 1 — 63 Management fee revenues 44 5 — 49 Exchange and other services revenues 37 44 12 93 Management and exchange 143 50 12 205 Rental 128 10 — 138 Financing 81 — — 81 Cost reimbursements(1) 455 4 (16 ) 443 TOTAL REVENUES $ 1,126 $ 64 $ (4 ) $ 1,186 PROFIT Development $ 67 $ — $ — $ 67 Management and exchange(1) 74 19 (3 ) 90 Rental(1) 6 10 3 19 Financing 51 — — 51 TOTAL PROFIT 198 29 — 227 OTHER General and administrative — — (57 ) (57 ) Depreciation and amortization (23 ) (7 ) (3 ) (33 ) Litigation charges (2 ) — — (2 ) Royalty fee (30 ) — — (30 ) Gains (losses) and other income (expense), net 7 1 (5 ) 3 Interest expense, net — — (36 ) (36 ) Transaction and integration costs — — (5 ) (5 ) Other (1 ) — — (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 149 23 (106 ) 66 Provision for income taxes — — (24 ) (24 ) NET INCOME (LOSS) 149 23 (130 ) 42 Net income attributable to noncontrolling interests(1) — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 149 $ 23 $ (130 ) $ 42 SEGMENT MARGIN(2) 22% 37% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. A-6 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2022 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management As Reported As Adjusted* As Reported Impact of Alignment As Adjusted* REVENUES Sales of vacation ownership products $ 444 $ (27 ) $ 417 $ — $ — $ 444 $ 417 Management and exchange(1) Ancillary revenues 63 — 63 1 — 64 64 Management fee revenues 41 — 41 7 (1 ) 47 47 Exchange and other services revenues 32 — 32 47 8 87 87 Management and exchange 136 — 136 55 7 198 198 Rental 154 — 154 11 — 165 165 Financing 74 — 74 — — 74 74 Cost reimbursements(1) 374 — 374 5 (8 ) 371 371 TOTAL REVENUES $ 1,182 $ (27 ) $ 1,155 $ 71 $ (1 ) $ 1,252 $ 1,225 PROFIT Development $ 161 $ (25 ) $ 136 $ — $ — $ 161 $ 136 Management and exchange(1) 72 — 72 27 (2 ) 97 97 Rental(1) 24 — 24 11 4 39 39 Financing 69 (19 ) 50 — — 69 50 TOTAL PROFIT 326 (44 ) 282 38 2 366 322 OTHER General and administrative — — — — (62 ) (62 ) (62 ) Depreciation and amortization (23 ) — (23 ) (8 ) (2 ) (33 ) (33 ) Litigation charges (2 ) — (2 ) — — (2 ) (2 ) Royalty fee (28 ) — (28 ) — — (28 ) (28 ) Impairment (1 ) — (1 ) — — (1 ) (1 ) Gains (losses) and other income (expense), net 1 — 1 (1 ) (2 ) (2 ) (2 ) Interest expense, net — — — — (34 ) (34 ) (34 ) Transaction and integration costs (2 ) — (2 ) — (32 ) (34 ) (34 ) Other (1 ) — (1 ) — — (1 ) (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 270 (44 ) 226 29 (130 ) 169 125 Provision for income taxes — 11 11 — (59 ) (59 ) (48 ) NET INCOME (LOSS) 270 (33 ) 237 29 (189 ) 110 77 Net income attributable to noncontrolling interests(1) — — — — (1 ) (1 ) (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 270 $ (33 ) $ 237 $ 29 $ (190 ) $ 109 $ 76 SEGMENT MARGIN(2) 34% 31% 44% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-7 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2023 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management REVENUES Sales of vacation ownership products $ 1,085 $ — $ — $ 1,085 Management and exchange(1) Ancillary revenues 193 3 — 196 Management fee revenues 134 18 (2 ) 150 Exchange and other services revenues 98 136 31 265 Management and exchange 425 157 29 611 Rental 404 31 — 435 Financing 239 — — 239 Cost reimbursements(1) 1,182 12 (31 ) 1,163 TOTAL REVENUES $ 3,335 $ 200 $ (2 ) $ 3,533 PROFIT Development $ 293 $ — $ — $ 293 Management and exchange(1) 223 66 (10 ) 279 Rental(1) 50 31 10 91 Financing 158 — — 158 TOTAL PROFIT 724 97 — 821 OTHER General and administrative — — (189 ) (189 ) Depreciation and amortization (69 ) (23 ) (7 ) (99 ) Litigation charges (8 ) — 1 (7 ) Royalty fee (88 ) — — (88 ) Impairment (4 ) — — (4 ) Gains and other income, net 23 1 10 34 Interest expense, net — — (106 ) (106 ) Transaction and integration costs — — (28 ) (28 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 578 75 (319 ) 334 Provision for income taxes — — (115 ) (115 ) NET INCOME (LOSS) 578 75 (434 ) 219 Net income attributable to noncontrolling interests(1) — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 578 $ 75 $ (434 ) $ 219 SEGMENT MARGIN(2) 27% 40% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. A-8 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2022 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management As Reported As Adjusted* As Reported Impact of Alignment As Adjusted* REVENUES Sales of vacation ownership products $ 1,179 $ (27 ) $ 1,152 $ — $ — $ 1,179 $ 1,152 Management and exchange(1) Ancillary revenues 183 — 183 3 — 186 186 Management fee revenues 124 — 124 28 (5 ) 147 147 Exchange and other services revenues 95 — 95 146 49 290 290 Management and exchange 402 — 402 177 44 623 623 Rental 405 — 405 33 — 438 438 Financing 217 — 217 — — 217 217 Cost reimbursements(1) 1,026 — 1,026 19 (34 ) 1,011 1,011 TOTAL REVENUES $ 3,229 $ (27 ) $ 3,202 $ 229 $ 10 $ 3,468 $ 3,441 PROFIT Development $ 360 $ (25 ) $ 335 $ — $ — $ 360 $ 335 Management and exchange(1) 224 — 224 84 (15 ) 293 293 Rental(1) 94 — 94 33 17 144 144 Financing 168 (19 ) 149 — — 168 149 TOTAL PROFIT 846 (44 ) 802 117 2 965 921 OTHER General and administrative — — — — (187 ) (187 ) (187 ) Depreciation and amortization (67 ) — (67 ) (24 ) (7 ) (98 ) (98 ) Litigation charges (7 ) — (7 ) — — (7 ) (7 ) Royalty fee (84 ) — (84 ) — — (84 ) (84 ) Impairment (1 ) — (1 ) — — (1 ) (1 ) Gains (losses) and other income (expense), net 36 — 36 15 (12 ) 39 39 Interest expense, net — — — — (91 ) (91 ) (91 ) Transaction and integration costs (3 ) — (3 ) — (96 ) (99 ) (99 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 720 (44 ) 676 108 (391 ) 437 393 Provision for income taxes — 11 11 — (134 ) (134 ) (123 ) NET INCOME (LOSS) 720 (33 ) 687 108 (525 ) 303 270 Net income attributable to noncontrolling interests(1) — — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 720 $ (33 ) $ 687 $ 108 $ (525 ) $ 303 $ 270 SEGMENT MARGIN(2) 33% 32% 52% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-9 MARRIOTT VACATIONS WORLDWIDE CORPORATION CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited) Three Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 438 $ 483 $ — $ 483 Less resales contract sales (11 ) (10 ) — (10 ) Consolidated contract sales, net of resales 427 473 — 473 Plus: Settlement revenue 12 10 — 10 Resales revenue 6 5 — 5 Revenue recognition adjustments: Reportability — 54 (46 ) 8 Sales reserve (102 ) (64 ) 19 (45 ) Other(1) (24 ) (34 ) — (34 ) Sale of vacation ownership products 319 444 (27 ) 417 Less: Cost of vacation ownership products (50 ) (76 ) 2 (74 ) Marketing and sales (202 ) (207 ) — (207 ) Development Profit 67 161 (25 ) 136 Revenue recognition reportability adjustment — (43 ) 39 (4 ) Purchase accounting adjustments 2 5 — 5 Other — (5 ) — (5 ) Adjusted development profit* $ 69 $ 118 $ 14 $ 132 Development profit margin 20.7% 36.1% 32.6% Adjusted development profit margin* 21.5% 29.9% 32.0% (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-10 MARRIOTT VACATIONS WORLDWIDE CORPORATION CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 1,325 $ 1,383 $ — $ 1,383 Less resales contract sales (32 ) (30 ) — (30 ) Consolidated contract sales, net of resales 1,293 1,353 — 1,353 Plus: Settlement revenue 29 26 — 26 Resales revenue 18 13 — 13 Revenue recognition adjustments: Reportability 5 7 (46 ) (39 ) Sales reserve (185 ) (130 ) 19 (111 ) Other(1) (75 ) (90 ) — (90 ) Sale of vacation ownership products 1,085 1,179 (27 ) 1,152 Less: Cost of vacation ownership products (174 ) (216 ) 2 (214 ) Marketing and sales (618 ) (603 ) — (603 ) Development Profit 293 360 (25 ) 335 Revenue recognition reportability adjustment (3 ) (8 ) 39 31 Purchase accounting adjustments 6 14 — 14 Other — (5 ) — (5 ) Adjusted development profit* $ 296 $ 361 $ 14 $ 375 Development profit margin 27.0% 30.5% 29.1% Adjusted development profit margin* 27.4% 30.8% 31.6% (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-11 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED (In millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net income attributable to common shareholders $ 42 $ 109 $ 219 $ 303 Provision for income taxes 24 59 115 134 Income before income taxes attributable to common shareholders 66 168 334 437 Certain items: ILG integration — 22 $ 15 $ 80 Welk acquisition and integration 5 5 13 10 Other transformation initiatives — 6 — 6 Other transaction costs — 1 — 3 Transaction and integration costs 5 34 28 99 Early redemption of senior secured notes — — 10 — Gain on disposition of hotel, land and other (1 ) — (8 ) (33 ) Gain on disposition of VRI Americas — (1 ) — (17 ) Foreign currency translation 5 3 1 10 Insurance proceeds (1 ) — (3 ) (5 ) Change in indemnification asset (6 ) (1 ) (30 ) 2 Other — 1 (4 ) 4 (Gains) losses and other (income) expense, net (3 ) 2 (34 ) (39 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 7 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Early termination of VRI management contract — — — (2 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 2 3 — 3 Adjusted pretax income* 75 207 345 508 Provision for income taxes (27 ) (76 ) (98 ) (165 ) Adjusted net income attributable to common shareholders* $ 48 $ 131 $ 247 $ 343 Diluted shares 43.3 43.4 43.8 45.9 Adjusted earnings per share - Diluted* $ 1.20 $ 3.02 $ 5.95 $ 7.53 Excluding the Impact of Alignment: Adjusted net income attributable to common shareholders* $ 48 $ 98 $ 247 $ 310 Adjusted earnings per share - Diluted* $ 1.20 $ 2.28 $ 5.95 $ 6.83 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-12 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA (In millions) (Unaudited) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 42 $ 109 $ 219 $ 303 Interest expense, net 36 34 106 91 Provision for income taxes 24 59 115 134 Depreciation and amortization 33 33 99 98 Share-based compensation 6 10 25 30 Certain items: ILG integration — 22 15 80 Welk acquisition and integration 5 5 13 10 Other transformation initiatives — 6 — 6 Other transaction costs — 1 — 3 Transaction and integration costs 5 34 28 99 Early redemption of senior secured notes — — 10 — Gain on disposition of hotel, land and other (1 ) — (8 ) (33 ) Gain on disposition of VRI Americas — (1 ) — (17 ) Foreign currency translation 5 3 1 10 Insurance proceeds (1 ) — (3 ) (5 ) Change in indemnification asset (6 ) (1 ) (30 ) 2 Other — 1 (4 ) 4 (Gains) losses and other (income) expense, net (3 ) 2 (34 ) (39 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 7 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Early termination of VRI management contract — — — (2 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 2 3 — 3 ADJUSTED EBITDA* $ 150 $ 284 $ 575 $ 727 ADJUSTED EBITDA MARGIN* 20% 32% 24% 30% Excluding the Impact of Alignment ADJUSTED EBITDA* $ 150 $ 240 $ 575 $ 683 ADJUSTED EBITDA MARGIN* 20% 28% 24% 28% * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-13 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited) VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 149 $ 270 $ 578 $ 720 Depreciation and amortization 23 23 69 67 Share-based compensation 2 2 6 5 Certain items: Transaction and integration costs — 2 — 3 Gain on disposition of hotel, land and other — — (7 ) (33 ) Foreign currency translation — (1 ) — — Insurance proceeds (1 ) — (3 ) (3 ) Change in indemnification asset (6 ) — (9 ) — Other — — (4 ) — Gains and other income, net (7 ) (1 ) (23 ) (36 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 8 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 1 3 (1 ) 3 SEGMENT ADJUSTED EBITDA* $ 173 $ 299 $ 647 $ 772 SEGMENT ADJUSTED EBITDA MARGIN* 26% 37% 30% 35% Excluding the Impact of Alignment SEGMENT ADJUSTED EBITDA* $ 173 $ 255 $ 647 $ 728 SEGMENT ADJUSTED EBITDA MARGIN* 26% 33% 30% 34% EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 23 $ 29 $ 75 $ 108 Depreciation and amortization 7 8 23 24 Share-based compensation — 1 1 2 Certain items: Gain on disposition of hotel, land and other (1 ) — (1 ) — Gain on disposition of VRI Americas — (1 ) — (17 ) Early termination of VRI management contract — — — (2 ) Foreign currency translation — 2 — 2 Other 1 — 1 — SEGMENT ADJUSTED EBITDA* $ 30 $ 39 $ 99 $ 117 SEGMENT ADJUSTED EBITDA MARGIN* 50% 58% 53% 55% * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-14 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED BALANCE SHEETS (In millions, except share and per share data) Unaudited September 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 265 $ 524 Restricted cash (including $84 and $85 from VIEs, respectively) 238 330 Accounts receivable, net (including $14 and $13 from VIEs, respectively) 298 292 Vacation ownership notes receivable, net (including $1,885 and $1,792 from VIEs, respectively) 2,291 2,198 Inventory 642 660 Property and equipment, net 1,250 1,139 Goodwill 3,117 3,117 Intangibles, net 868 911 Other (including $88 and $76 from VIEs, respectively) 484 468 TOTAL ASSETS $ 9,453 $ 9,639 LIABILITIES AND EQUITY Accounts payable $ 238 $ 356 Advance deposits 169 158 Accrued liabilities (including $3 and $5 from VIEs, respectively) 359 369 Deferred revenue 371 344 Payroll and benefits liability 193 251 Deferred compensation liability 156 139 Securitized debt, net (including $2,048 and $1,982 from VIEs, respectively) 2,026 1,938 Debt, net 3,031 3,088 Other 165 167 Deferred taxes 335 331 TOTAL LIABILITIES 7,043 7,141 Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding — — Common stock — $0.01 par value; 100,000,000 shares authorized; 75,807,873 and 75,744,524 shares issued, respectively 1 1 Treasury stock — at cost; 40,122,822 and 38,263,442 shares, respectively (2,298 ) (2,054 ) Additional paid-in capital 3,953 3,941 Accumulated other comprehensive income 18 15 Retained earnings 734 593 TOTAL MVW SHAREHOLDERS' EQUITY 2,408 2,496 Noncontrolling interests 2 2 TOTAL EQUITY 2,410 2,498 TOTAL LIABILITIES AND EQUITY $ 9,453 $ 9,639 The abbreviation VIEs above means Variable Interest Entities. A-15 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 OPERATING ACTIVITIES Net income $ 219 $ 303 Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: Depreciation and amortization of intangibles 99 98 Amortization of debt discount and issuance costs 17 20 Vacation ownership notes receivable reserve 182 130 Share-based compensation 25 30 Impairment charges 2 1 Gains and other income, net (8 ) (48 ) Deferred income taxes 2 64 Net change in assets and liabilities: Accounts and contracts receivable (16 ) 6 Vacation ownership notes receivable originations (749 ) (728 ) Vacation ownership notes receivable collections 461 469 Inventory 80 74 Other assets (10 ) (21 ) Accounts payable, advance deposits and accrued liabilities (103 ) (28 ) Deferred revenue 24 (5 ) Payroll and benefit liabilities (58 ) 52 Deferred compensation liability 12 8 Other liabilities (2 ) 7 Deconsolidation of certain Consolidated Property Owners' Associations — (48 ) Purchase of property for future transfer to inventory (27 ) (12 ) Other, net (1 ) 8 Net cash, cash equivalents and restricted cash provided by operating activities 149 380 INVESTING ACTIVITIES Proceeds from disposition of subsidiaries, net of cash and restricted cash transferred — 94 Capital expenditures for property and equipment (excluding inventory) (92 ) (36 ) Issuance of note receivable to VIE — (47 ) Proceeds from collection of note receivable from VIE — 47 Purchase of company owned life insurance (8 ) (14 ) Other dispositions, net 15 5 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (85 ) 49 Continued A-16 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 FINANCING ACTIVITIES Borrowings from securitization transactions 916 609 Repayment of debt related to securitization transactions (828 ) (655 ) Proceeds from debt 790 505 Repayments of debt (956 ) (505 ) Finance lease incentive 10 — Finance lease payment (2 ) (3 ) Payment of debt issuance costs (6 ) (10 ) Repurchase of common stock (248 ) (528 ) Payment of dividends (80 ) (75 ) Payment of withholding taxes on vesting of restricted stock units (10 ) (23 ) Net cash, cash equivalents and restricted cash used in financing activities (414 ) (685 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash (1 ) (4 ) Change in cash, cash equivalents and restricted cash (351 ) (260 ) Cash, cash equivalents and restricted cash, beginning of period 854 803 Cash, cash equivalents and restricted cash, end of period $ 503 $ 543 A-17 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except per share amounts) 2023 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net income attributable to common shareholders $ 268 $ 278 Provision for income taxes 141 146 Income before income taxes attributable to common shareholders 409 424 Certain items(1) 23 28 Adjusted pretax income* 432 452 Provision for income taxes (127 ) (132 ) Adjusted net income attributable to common shareholders* $ 305 $ 320 Earnings per share - Diluted(2) $ 6.59 $ 6.82 Adjusted earnings per share - Diluted(2)* $ 7.44 $ 7.78 Diluted shares(2) 43.5 43.5 2023 ADJUSTED EBITDA OUTLOOK Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net income attributable to common shareholders $ 268 $ 278 Interest expense 145 145 Provision for income taxes 141 146 Depreciation and amortization 135 135 Share-based compensation 33 33 Certain items(1) 23 28 Adjusted EBITDA* $ 745 $ 765 (1) Certain items adjustment includes $40 million of anticipated transaction and integration costs, $10 million of anticipated litigation charges, $9 million of anticipated purchase accounting adjustments, and $4 million of impairments, partially offset by $34 million of gains and other income, net, and $1 million of other adjustments. (2) We expect 6.5 million shares to be included in diluted shares, reflecting the assumed conversion of our convertible notes and an add back of $18 million for interest expense to the numerator of the diluted earnings per share calculation. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-18 MARRIOTT VACATIONS WORLDWIDE CORPORATION 2023 ADJUSTED FREE CASH FLOW OUTLOOK (In millions) Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net cash, cash equivalents and restricted cash provided by operating activities $ 271 $ 307 Capital expenditures for property and equipment (excluding inventory) (110 ) (125 ) Borrowings from securitizations, net of repayments (30 ) (25 ) Securitized debt issuance costs (12 ) (12 ) Free cash flow* 119 145 Adjustments: Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1) 230 230 Certain items(2) 81 85 Change in restricted cash — — Adjusted free cash flow* $ 430 $ 460 (1) Represents the anticipated net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2022 and 2023 year ends. (2) Certain items adjustment consists primarily of the after-tax impact of anticipated transaction and integration costs. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-19 MARRIOTT VACATIONS WORLDWIDE CORPORATION QUARTERLY OPERATING METRICS (Contract sales in millions) Year Quarter Ended Full Year March 31 June 30 September 30 December 31 Vacation Ownership Consolidated contract sales 2023 $ 434 $ 453 $ 438 2022 $ 394 $ 506 $ 483 $ 454 $ 1,837 2021 $ 226 $ 362 $ 380 $ 406 $ 1,374 VPG 2023 $ 4,358 $ 3,968 $ 4,055 2022 $ 4,706 $ 4,613 $ 4,353 $ 4,088 $ 4,421 2021 $ 4,644 $ 4,304 $ 4,300 $ 4,305 $ 4,356 Tours 2023 92,890 106,746 100,609 2022 78,505 102,857 104,000 105,231 390,593 2021 45,871 79,900 84,098 89,495 299,364 Exchange & Third-Party Management Total active Interval International members (000's)(1) 2023 1,568 1,566 1,571 2022 1,606 1,596 1,591 1,566 1,566 2021 1,479 1,321 1,313 1,296 1,296 Average revenue per Interval International member 2023 $ 42.07 $ 39.30 $ 39.15 2022 $ 44.33 $ 38.79 $ 38.91 $ 35.60 $ 157.97 2021 $ 47.13 $ 46.36 $ 42.95 $ 42.93 $ 179.48 (1) Includes members at the end of each period. A-20 MARRIOTT VACATIONS WORLDWIDE CORPORATION NON-GAAP FINANCIAL MEASURES In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common shareholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures. Certain Items Excluded from Non-GAAP Financial Measures We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies. Adjusted Development Profit and Adjusted Development Profit Margin We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin. Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common shareholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to shareholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted A-21 EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies. Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations. Free Cash Flow and Adjusted Free Cash Flow We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results. Results As Adjusted for the Estimated Impact of the Maui Fires In our press release and schedules we provide As Adjusted results for the three- and nine-months ended September 30, 2023 for comparison purposes. The As Adjusted results reflect the estimated impact of the Maui fires on the Company’s reported results on a GAAP basis, as well as to the Company’s non-GAAP financial measures. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the estimated impact of the Maui fires. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any estimated impact from the Maui fires. Results As Adjusted for the Impact of the Alignment In our press release and schedules we provide As Adjusted results for the three- and nine-months ended September 30, 2022 for comparison purposes. The As Adjusted results exclude any impacts to the Company’s reported results on a GAAP basis, as well as to the Company’s non-GAAP financial measures, due to the Alignment. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the impact of the Alignment. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any impact from the Alignment. View source version on businesswire.com: https://www.businesswire.com/news/home/20231101621753/en/Contacts Neal Goldner Investor Relations 407-206-6149 neal.goldner@mvwc.com Cameron Klaus Global Communications 407-513-6066 cameron.klaus@mvwc.com
Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW” or the “Company”) reported third quarter 2023 financial results. Third Quarter 2023 Highlights Consolidated Vacation Ownership contract sales were $438 million and volume per guest (“VPG”) increased $87 sequentially from the second quarter, or 2%, to $4,055. The Company estimates the Maui wildfires negatively impacted contract sales by $28 million and VPG by approximately $66, or 2%, in the quarter. Net income attributable to common shareholders was $42 million compared to $109 million in the prior year, and fully diluted earnings per share was $1.09. The Company recorded a $59 million charge to its loan loss provision in the third quarter resulting in a $36 million negative impact to Net income attributable to common shareholders and a $49 million negative impact to Adjusted EBITDA. Adjusted net income attributable to common shareholders was $48 million and adjusted fully diluted earnings per share was $1.20. Adjusted EBITDA was $150 million. The Company estimates the Maui wildfires negatively impacted Adjusted EBITDA by $24 million in the quarter and the increased loan loss provision impacted Adjusted EBITDA by $49 million. The Company repurchased 793,300 shares of its common stock for $86 million during the quarter and declared a $0.72 per share quarterly dividend, which was paid in October. The Company updated its full year outlook. “We had a difficult quarter between the devastating wildfires in Maui and default rates on our loan portfolio remaining above our recent experience. However, our loan delinquencies are stabilizing and with Maui reopen for tourism we have started to see our resort occupancies recover,” said John Geller, president and chief executive officer. “We've also been working hard educating consumers about the benefits of Abound by Marriott Vacations and our salespeople are getting more comfortable selling the new product, which was evident in our results this quarter, with VPG growing sequentially from the prior quarter.” Third Quarter 2023 Results On August 8, 2023, a wildfire devastated the area of West Maui. While the Company operates four vacation ownership resorts and sales centers in the area, it did not sustain any physical damage to these resorts and sales centers. However, the Company estimates the Maui wildfires negatively impacted its third quarter contract sales by approximately $28 million, its third quarter Net income attributable to common shareholders by $18 million and its Adjusted EBITDA by $24 million. In the third quarter of 2022, the Company aligned its contract terms for the sale of its Marriott-, Westin-, and Sheraton-branded vacation ownership products, resulting in the acceleration of revenue from the sale of Marriott-branded vacation ownership interests. In addition, the Company aligned its reserve methodology for vacation ownership notes receivable for these brands, resulting in a decrease in the reserve for the acquired notes offset by an increase in the reserve for the originated notes. Together, these changes were referred to as the “Alignment.” The tables below illustrate the comparison of the reported results from the third quarter of 2023, as well as adjusted results that reflect the estimated impact of the Maui fires, to the results from the third quarter of 2022, including the impact of the Alignment on the Company’s reported results for that time period. In the tables below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. Consolidated Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Net income attributable to common shareholders $ 42 $ 18 $ 60 $ 109 $ (33 ) $ 76 Adjusted net income attributable to common shareholders* $ 48 $ 18 $ 66 $ 131 $ (33 ) $ 98 Adjusted EBITDA* $ 150 $ 24 $ 174 $ 284 $ (44 ) $ 240 Vacation Ownership Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Sale of vacation ownership products $ 319 $ 19 $ 338 $ 444 $ (27 ) $ 417 Development profit $ 67 $ 13 $ 80 $ 161 $ (25 ) $ 136 Management and exchange profit $ 74 $ 3 $ 77 $ 72 $ — $ 72 Rental profit $ 6 $ 5 $ 11 $ 24 $ — $ 24 Financing profit $ 51 $ — $ 51 $ 69 $ (19 ) $ 50 Other $ (1 ) $ 1 $ — $ (1 ) $ — $ (1 ) Segment financial results attributable to common shareholders $ 149 $ 22 $ 171 $ 270 $ (33 ) $ 237 Segment margin 22.3% 24.5% 33.5% 30.6% Segment Adjusted EBITDA* $ 173 $ 22 $ 195 $ 299 $ (44 ) $ 255 Segment Adjusted EBITDA margin* 25.8% 27.9% 37.1% 32.7% Three Months Ended September 30, 2023 September 30, 2022 (Contract sales $ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 438 $ 28 $ 466 $ 483 $ — $ 483 VPG $ 4,055 $ 66 $ 4,121 $ 4,353 $ — $ 4,353 Tours 100,609 5,101 105,710 104,000 — 104,000 Revenues excluding cost reimbursements decreased 17% in the third quarter of 2023 compared to the prior year. The decline was driven by a 9% year-over-year reduction in consolidated contract sales resulting from 7% lower VPG and a 3% decline in tours, and a $59 million increase in its loan loss provision. Adjusted for the estimated $28 million impact of the Maui wildfires, consolidated contract sales would have declined 4% year-over-year, tours would have increased 2% and VPG would have declined 5%. Segment financial results attributable to common shareholders declined $121 million to $149 million in the third quarter of 2023. Adjusting for the estimated impact from the Maui wildfires and the prior year Alignment benefit: Segment Adjusted EBITDA declined $60 million year-over-year primarily due to lower development and rental profit and a $49 million net loan loss impact in the current year. Development profit declined $56 million year-over-year primarily due to a $49 million net loan loss impact in the current year and 4% lower contract sales. Rental profit declined $13 million year-over-year primarily due to lower ADR and higher inventory costs. Management and exchange profit increased $5 million year-over-year due to higher revenue from management fees and club dues. Exchange & Third-Party Management Three Months Ended September 30, 2023 September 30, 2022 ($ in millions) As Reported Estimated Impact of Maui Fires As Adjusted* As Reported Impact of Alignment As Adjusted* Management and exchange profit $ 19 $ 1 $ 20 $ 27 $ — $ 27 Segment financial results attributable to common shareholders $ 23 $ 1 $ 24 $ 29 $ — $ 29 Segment margin 37.4% 38.1% 44.4% 44.4% Segment Adjusted EBITDA* $ 30 $ 1 $ 31 $ 39 $ — $ 39 Segment Adjusted EBITDA margin* 49.8% 50.3% 57.6% 57.6% Revenues excluding cost reimbursements decreased 7% in the third quarter of 2023 compared to the prior year driven primarily by lower exchange and Getaway volumes. Interval International active members decreased 1% compared to the prior year to 1.6 million and Average revenue per member increased 1% year-over-year. Segment financial results attributable to common shareholders were $23 million in the third quarter of 2023 and Segment margin was 37%. Adjusted for the estimated $1 million negative impact from the Maui wildfires, Segment Adjusted EBITDA decreased to $31 million and Segment Adjusted EBITDA Margin was 50%. Corporate and Other General and administrative costs decreased $5 million in the third quarter of 2023 compared to the prior year primarily as a result of lower variable compensation costs. Balance Sheet and Liquidity The Company ended the quarter with $1.0 billion in liquidity, including $265 million of cash and cash equivalents, $70 million of gross notes receivable that were eligible for securitization, and $659 million of available capacity under its revolving corporate credit facility. At the end of the third quarter of 2023, the Company had $3.0 billion of corporate debt and $2.0 billion of non-recourse debt related to its securitized notes receivable. Full Year 2023 Outlook While the Company's resorts in West Maui have reopened, it expects the wildfires to negatively impact its fourth quarter contract sales by approximately $32 to $37 million, its Net income attributable to common shareholders by approximately $19 to $22 million and its Adjusted EBITDA by approximately $26 to $31 million. The Company updated its full year 2023 guidance as reflected in the chart below. The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company. In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. (in millions, except per share amounts) 2023 Guidance Full Year Estimated Impact of Maui Wildfires Contract sales $1,750 to $1,770 $60 to $65 Net income attributable to common shareholders $268 to $278 $37 to $40 Earnings per share - diluted $6.59 to $6.82 $0.85 to $0.94 Net cash, cash equivalents and restricted cash provided by operating activities $271 to $307 $50 to $55 Adjusted EBITDA* $745 to $765 $50 to $55 Adjusted earnings per share - diluted* $7.44 to $7.78 $0.85 to $0.94 Adjusted free cash flow* $430 to $460 $50 to $55 Note: 2023 guidance includes the estimated impact of the Maui wildfires on the Company’s results. Non-GAAP Financial Information Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. Third Quarter 2023 Financial Results Conference Call The Company will hold a conference call on November 2, 2023 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com. Note on forward-looking statements This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for contract sales, results of operations, cash flows, future growth and projections for full year 2023. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: the effects of a future health crisis, including its short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following a health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price and wage inflation; global supply chain disruptions; volatility in the international and national economy and credit markets; the impact of the current or a future banking crisis; wars involving Russia, Ukraine, Israel and Gaza and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of rising interest rates; political or social strife; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws; the effects of steps that we or our affiliates have taken and may continue to take to reduce operating costs; impacts from natural or man-made disasters and wildfires, including the Maui wildfires; and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements. Financial Schedules Follow MARRIOTT VACATIONS WORLDWIDE CORPORATION FINANCIAL SCHEDULES QUARTER 3, 2023 TABLE OF CONTENTS Summary Financial Information A-1 Adjusted EBITDA by Segment A-2 Interim Consolidated Statements of Income A-3 to A-4 Revenues and Profit by Segment A-5 to A-8 Consolidated Contract Sales to Adjusted Development Profit A-9 to A-10 Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted A-11 Adjusted EBITDA A-12 Segment Adjusted EBITDA A-13 Vacation Ownership Exchange & Third-Party Management Interim Consolidated Balance Sheets A-14 Interim Consolidated Statements of Cash Flows A-15 to A-16 2023 Outlook Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share - Diluted and Adjusted EBITDA A-17 Adjusted Free Cash Flow A-18 Quarterly Operating Metrics A-19 Non-GAAP Financial Measures A-20 to A-21 A-1 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except VPG, tours, total active Interval International members, average revenue per member, and per share amounts) (Unaudited) SUMMARY FINANCIAL INFORMATION Three Months Ended Change % Nine Months Ended Change % September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Key Measures Total consolidated contract sales $ 438 $ 483 (9%) $ 1,325 $ 1,383 (4%) VPG $ 4,055 $ 4,353 (7%) $ 4,118 $ 4,544 (9%) Tours 100,609 104,000 (3%) 300,245 285,362 5% Total active Interval International members (000's)(1) 1,571 1,591 (1%) 1,571 1,591 (1%) Average revenue per Interval International member $ 39.15 $ 38.91 1% $ 120.48 $ 122.30 (1%) GAAP Measures Revenues $ 1,186 $ 1,252 (5%) $ 3,533 $ 3,468 2% Income before income taxes and noncontrolling interests $ 66 $ 169 (61%) $ 334 $ 437 (24%) Net income attributable to common shareholders $ 42 $ 109 (61%) $ 219 $ 303 28% Diluted shares 43.3 43.4 —% 43.8 45.9 (5%) Earnings per share - diluted $ 1.09 $ 2.53 (57%) $ 5.33 $ 6.68 (20%) Non-GAAP Measures* Adjusted EBITDA $ 150 $ 284 (47%) $ 575 $ 727 (21%) Adjusted pretax income $ 75 $ 207 (64%) $ 345 $ 508 (32%) Adjusted net income attributable to common shareholders $ 48 $ 131 (64%) $ 247 $ 343 (28%) Adjusted earnings per share - diluted $ 1.20 $ 3.02 (60%) $ 5.95 $ 7.53 (21%) (1) Includes members at the end of each period. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-2 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA BY SEGMENT (In millions) (Unaudited) Three Months Ended September 30, 2022 September 30, 2023 As Reported Impact of Alignment As Adjusted* Vacation Ownership $ 173 $ 299 $ (44 ) $ 255 Exchange & Third-Party Management 30 39 — 39 Segment Adjusted EBITDA* 203 338 (44 ) 294 General and administrative (57 ) (62 ) — (62 ) Other 4 8 — 8 Adjusted EBITDA* $ 150 $ 284 $ (44 ) $ 240 Nine Months Ended September 30, 2022 September 30, 2023 As Reported Impact of Alignment As Adjusted* Vacation Ownership $ 647 $ 772 $ (44 ) $ 728 Exchange & Third-Party Management 99 117 — 117 Segment Adjusted EBITDA* 746 889 (44 ) 845 General and administrative (189 ) (187 ) — (187 ) Other 18 25 — 25 Adjusted EBITDA* $ 575 $ 727 $ (44 ) $ 683 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-3 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Three Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* REVENUES Sale of vacation ownership products $ 319 $ 444 $ (27 ) $ 417 Management and exchange 205 198 — 198 Rental 138 165 — 165 Financing 81 74 — 74 Cost reimbursements 443 371 — 371 TOTAL REVENUES 1,186 1,252 (27 ) 1,225 EXPENSES Cost of vacation ownership products 50 76 (2 ) 74 Marketing and sales 202 207 — 207 Management and exchange 115 101 — 101 Rental 119 126 — 126 Financing 30 5 19 24 General and administrative 57 62 — 62 Depreciation and amortization 33 33 — 33 Litigation charges 2 2 — 2 Royalty fee 30 28 — 28 Impairment — 1 — 1 Cost reimbursements 443 371 — 371 TOTAL EXPENSES 1,081 1,012 17 1,029 Gains (losses) and other income (expense), net 3 (2 ) — (2 ) Interest expense, net (36 ) (34 ) — (34 ) Transaction and integration costs (5 ) (34 ) — (34 ) Other (1 ) (1 ) — (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 66 169 (44 ) 125 Provision for income taxes (24 ) (59 ) 11 (48 ) NET INCOME (LOSS) 42 110 (33 ) 77 Net income attributable to noncontrolling interests — (1 ) — (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 42 $ 109 $ (33 ) $ 76 EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic shares 36.4 39.5 39.5 Basic $ 1.16 $ 2.76 $ (0.80 ) $ 1.96 Diluted shares 43.3 43.4 43.4 Diluted $ 1.09 $ 2.53 $ (0.74 ) $ 1.79 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-4 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* REVENUES Sale of vacation ownership products $ 1,085 $ 1,179 $ (27 ) $ 1,152 Management and exchange 611 623 — 623 Rental 435 438 — 438 Financing 239 217 — 217 Cost reimbursements 1,163 1,011 — 1,011 TOTAL REVENUES 3,533 3,468 (27 ) 3,441 EXPENSES Cost of vacation ownership products 174 216 (2 ) 214 Marketing and sales 618 603 — 603 Management and exchange 332 330 — 330 Rental 344 294 — 294 Financing 81 49 19 68 General and administrative 189 187 — 187 Depreciation and amortization 99 98 — 98 Litigation charges 7 7 — 7 Royalty fee 88 84 — 84 Impairment 4 1 — 1 Cost reimbursements 1,163 1,011 — 1,011 TOTAL EXPENSES 3,099 2,880 17 2,897 Gains and other income, net 34 39 — 39 Interest expense, net (106 ) (91 ) — (91 ) Transaction and integration costs (28 ) (99 ) — (99 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 334 437 (44 ) 393 Provision for income taxes (115 ) (134 ) 11 (123 ) NET INCOME (LOSS) 219 303 (33 ) 270 Net income attributable to noncontrolling interests — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 219 $ 303 $ (33 ) $ 270 EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic shares 36.9 41.1 41.1 Basic $ 5.96 $ 7.39 $ (0.78 ) $ 6.61 Diluted shares 43.8 45.9 45.9 Diluted $ 5.33 $ 6.68 $ (0.69 ) $ 5.99 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-5 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2023 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management REVENUES Sales of vacation ownership products $ 319 $ — $ — $ 319 Management and exchange(1) Ancillary revenues 62 1 — 63 Management fee revenues 44 5 — 49 Exchange and other services revenues 37 44 12 93 Management and exchange 143 50 12 205 Rental 128 10 — 138 Financing 81 — — 81 Cost reimbursements(1) 455 4 (16 ) 443 TOTAL REVENUES $ 1,126 $ 64 $ (4 ) $ 1,186 PROFIT Development $ 67 $ — $ — $ 67 Management and exchange(1) 74 19 (3 ) 90 Rental(1) 6 10 3 19 Financing 51 — — 51 TOTAL PROFIT 198 29 — 227 OTHER General and administrative — — (57 ) (57 ) Depreciation and amortization (23 ) (7 ) (3 ) (33 ) Litigation charges (2 ) — — (2 ) Royalty fee (30 ) — — (30 ) Gains (losses) and other income (expense), net 7 1 (5 ) 3 Interest expense, net — — (36 ) (36 ) Transaction and integration costs — — (5 ) (5 ) Other (1 ) — — (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 149 23 (106 ) 66 Provision for income taxes — — (24 ) (24 ) NET INCOME (LOSS) 149 23 (130 ) 42 Net income attributable to noncontrolling interests(1) — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 149 $ 23 $ (130 ) $ 42 SEGMENT MARGIN(2) 22% 37% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. A-6 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2022 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management As Reported As Adjusted* As Reported Impact of Alignment As Adjusted* REVENUES Sales of vacation ownership products $ 444 $ (27 ) $ 417 $ — $ — $ 444 $ 417 Management and exchange(1) Ancillary revenues 63 — 63 1 — 64 64 Management fee revenues 41 — 41 7 (1 ) 47 47 Exchange and other services revenues 32 — 32 47 8 87 87 Management and exchange 136 — 136 55 7 198 198 Rental 154 — 154 11 — 165 165 Financing 74 — 74 — — 74 74 Cost reimbursements(1) 374 — 374 5 (8 ) 371 371 TOTAL REVENUES $ 1,182 $ (27 ) $ 1,155 $ 71 $ (1 ) $ 1,252 $ 1,225 PROFIT Development $ 161 $ (25 ) $ 136 $ — $ — $ 161 $ 136 Management and exchange(1) 72 — 72 27 (2 ) 97 97 Rental(1) 24 — 24 11 4 39 39 Financing 69 (19 ) 50 — — 69 50 TOTAL PROFIT 326 (44 ) 282 38 2 366 322 OTHER General and administrative — — — — (62 ) (62 ) (62 ) Depreciation and amortization (23 ) — (23 ) (8 ) (2 ) (33 ) (33 ) Litigation charges (2 ) — (2 ) — — (2 ) (2 ) Royalty fee (28 ) — (28 ) — — (28 ) (28 ) Impairment (1 ) — (1 ) — — (1 ) (1 ) Gains (losses) and other income (expense), net 1 — 1 (1 ) (2 ) (2 ) (2 ) Interest expense, net — — — — (34 ) (34 ) (34 ) Transaction and integration costs (2 ) — (2 ) — (32 ) (34 ) (34 ) Other (1 ) — (1 ) — — (1 ) (1 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 270 (44 ) 226 29 (130 ) 169 125 Provision for income taxes — 11 11 — (59 ) (59 ) (48 ) NET INCOME (LOSS) 270 (33 ) 237 29 (189 ) 110 77 Net income attributable to noncontrolling interests(1) — — — — (1 ) (1 ) (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 270 $ (33 ) $ 237 $ 29 $ (190 ) $ 109 $ 76 SEGMENT MARGIN(2) 34% 31% 44% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-7 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2023 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management REVENUES Sales of vacation ownership products $ 1,085 $ — $ — $ 1,085 Management and exchange(1) Ancillary revenues 193 3 — 196 Management fee revenues 134 18 (2 ) 150 Exchange and other services revenues 98 136 31 265 Management and exchange 425 157 29 611 Rental 404 31 — 435 Financing 239 — — 239 Cost reimbursements(1) 1,182 12 (31 ) 1,163 TOTAL REVENUES $ 3,335 $ 200 $ (2 ) $ 3,533 PROFIT Development $ 293 $ — $ — $ 293 Management and exchange(1) 223 66 (10 ) 279 Rental(1) 50 31 10 91 Financing 158 — — 158 TOTAL PROFIT 724 97 — 821 OTHER General and administrative — — (189 ) (189 ) Depreciation and amortization (69 ) (23 ) (7 ) (99 ) Litigation charges (8 ) — 1 (7 ) Royalty fee (88 ) — — (88 ) Impairment (4 ) — — (4 ) Gains and other income, net 23 1 10 34 Interest expense, net — — (106 ) (106 ) Transaction and integration costs — — (28 ) (28 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 578 75 (319 ) 334 Provision for income taxes — — (115 ) (115 ) NET INCOME (LOSS) 578 75 (434 ) 219 Net income attributable to noncontrolling interests(1) — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 578 $ 75 $ (434 ) $ 219 SEGMENT MARGIN(2) 27% 40% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. A-8 MARRIOTT VACATIONS WORLDWIDE CORPORATION REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2022 (In millions) (Unaudited) Reportable Segment Corporate and Other Total Vacation Ownership Exchange & Third-Party Management As Reported As Adjusted* As Reported Impact of Alignment As Adjusted* REVENUES Sales of vacation ownership products $ 1,179 $ (27 ) $ 1,152 $ — $ — $ 1,179 $ 1,152 Management and exchange(1) Ancillary revenues 183 — 183 3 — 186 186 Management fee revenues 124 — 124 28 (5 ) 147 147 Exchange and other services revenues 95 — 95 146 49 290 290 Management and exchange 402 — 402 177 44 623 623 Rental 405 — 405 33 — 438 438 Financing 217 — 217 — — 217 217 Cost reimbursements(1) 1,026 — 1,026 19 (34 ) 1,011 1,011 TOTAL REVENUES $ 3,229 $ (27 ) $ 3,202 $ 229 $ 10 $ 3,468 $ 3,441 PROFIT Development $ 360 $ (25 ) $ 335 $ — $ — $ 360 $ 335 Management and exchange(1) 224 — 224 84 (15 ) 293 293 Rental(1) 94 — 94 33 17 144 144 Financing 168 (19 ) 149 — — 168 149 TOTAL PROFIT 846 (44 ) 802 117 2 965 921 OTHER General and administrative — — — — (187 ) (187 ) (187 ) Depreciation and amortization (67 ) — (67 ) (24 ) (7 ) (98 ) (98 ) Litigation charges (7 ) — (7 ) — — (7 ) (7 ) Royalty fee (84 ) — (84 ) — — (84 ) (84 ) Impairment (1 ) — (1 ) — — (1 ) (1 ) Gains (losses) and other income (expense), net 36 — 36 15 (12 ) 39 39 Interest expense, net — — — — (91 ) (91 ) (91 ) Transaction and integration costs (3 ) — (3 ) — (96 ) (99 ) (99 ) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS 720 (44 ) 676 108 (391 ) 437 393 Provision for income taxes — 11 11 — (134 ) (134 ) (123 ) NET INCOME (LOSS) 720 (33 ) 687 108 (525 ) 303 270 Net income attributable to noncontrolling interests(1) — — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 720 $ (33 ) $ 687 $ 108 $ (525 ) $ 303 $ 270 SEGMENT MARGIN(2) 33% 32% 52% (1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners. (2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-9 MARRIOTT VACATIONS WORLDWIDE CORPORATION CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited) Three Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 438 $ 483 $ — $ 483 Less resales contract sales (11 ) (10 ) — (10 ) Consolidated contract sales, net of resales 427 473 — 473 Plus: Settlement revenue 12 10 — 10 Resales revenue 6 5 — 5 Revenue recognition adjustments: Reportability — 54 (46 ) 8 Sales reserve (102 ) (64 ) 19 (45 ) Other(1) (24 ) (34 ) — (34 ) Sale of vacation ownership products 319 444 (27 ) 417 Less: Cost of vacation ownership products (50 ) (76 ) 2 (74 ) Marketing and sales (202 ) (207 ) — (207 ) Development Profit 67 161 (25 ) 136 Revenue recognition reportability adjustment — (43 ) 39 (4 ) Purchase accounting adjustments 2 5 — 5 Other — (5 ) — (5 ) Adjusted development profit* $ 69 $ 118 $ 14 $ 132 Development profit margin 20.7% 36.1% 32.6% Adjusted development profit margin* 21.5% 29.9% 32.0% (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-10 MARRIOTT VACATIONS WORLDWIDE CORPORATION CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 As Reported Impact of Alignment As Adjusted* Consolidated contract sales $ 1,325 $ 1,383 $ — $ 1,383 Less resales contract sales (32 ) (30 ) — (30 ) Consolidated contract sales, net of resales 1,293 1,353 — 1,353 Plus: Settlement revenue 29 26 — 26 Resales revenue 18 13 — 13 Revenue recognition adjustments: Reportability 5 7 (46 ) (39 ) Sales reserve (185 ) (130 ) 19 (111 ) Other(1) (75 ) (90 ) — (90 ) Sale of vacation ownership products 1,085 1,179 (27 ) 1,152 Less: Cost of vacation ownership products (174 ) (216 ) 2 (214 ) Marketing and sales (618 ) (603 ) — (603 ) Development Profit 293 360 (25 ) 335 Revenue recognition reportability adjustment (3 ) (8 ) 39 31 Purchase accounting adjustments 6 14 — 14 Other — (5 ) — (5 ) Adjusted development profit* $ 296 $ 361 $ 14 $ 375 Development profit margin 27.0% 30.5% 29.1% Adjusted development profit margin* 27.4% 30.8% 31.6% (1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-11 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED (In millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net income attributable to common shareholders $ 42 $ 109 $ 219 $ 303 Provision for income taxes 24 59 115 134 Income before income taxes attributable to common shareholders 66 168 334 437 Certain items: ILG integration — 22 $ 15 $ 80 Welk acquisition and integration 5 5 13 10 Other transformation initiatives — 6 — 6 Other transaction costs — 1 — 3 Transaction and integration costs 5 34 28 99 Early redemption of senior secured notes — — 10 — Gain on disposition of hotel, land and other (1 ) — (8 ) (33 ) Gain on disposition of VRI Americas — (1 ) — (17 ) Foreign currency translation 5 3 1 10 Insurance proceeds (1 ) — (3 ) (5 ) Change in indemnification asset (6 ) (1 ) (30 ) 2 Other — 1 (4 ) 4 (Gains) losses and other (income) expense, net (3 ) 2 (34 ) (39 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 7 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Early termination of VRI management contract — — — (2 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 2 3 — 3 Adjusted pretax income* 75 207 345 508 Provision for income taxes (27 ) (76 ) (98 ) (165 ) Adjusted net income attributable to common shareholders* $ 48 $ 131 $ 247 $ 343 Diluted shares 43.3 43.4 43.8 45.9 Adjusted earnings per share - Diluted* $ 1.20 $ 3.02 $ 5.95 $ 7.53 Excluding the Impact of Alignment: Adjusted net income attributable to common shareholders* $ 48 $ 98 $ 247 $ 310 Adjusted earnings per share - Diluted* $ 1.20 $ 2.28 $ 5.95 $ 6.83 * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-12 MARRIOTT VACATIONS WORLDWIDE CORPORATION ADJUSTED EBITDA (In millions) (Unaudited) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 42 $ 109 $ 219 $ 303 Interest expense, net 36 34 106 91 Provision for income taxes 24 59 115 134 Depreciation and amortization 33 33 99 98 Share-based compensation 6 10 25 30 Certain items: ILG integration — 22 15 80 Welk acquisition and integration 5 5 13 10 Other transformation initiatives — 6 — 6 Other transaction costs — 1 — 3 Transaction and integration costs 5 34 28 99 Early redemption of senior secured notes — — 10 — Gain on disposition of hotel, land and other (1 ) — (8 ) (33 ) Gain on disposition of VRI Americas — (1 ) — (17 ) Foreign currency translation 5 3 1 10 Insurance proceeds (1 ) — (3 ) (5 ) Change in indemnification asset (6 ) (1 ) (30 ) 2 Other — 1 (4 ) 4 (Gains) losses and other (income) expense, net (3 ) 2 (34 ) (39 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 7 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Early termination of VRI management contract — — — (2 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 2 3 — 3 ADJUSTED EBITDA* $ 150 $ 284 $ 575 $ 727 ADJUSTED EBITDA MARGIN* 20% 32% 24% 30% Excluding the Impact of Alignment ADJUSTED EBITDA* $ 150 $ 240 $ 575 $ 683 ADJUSTED EBITDA MARGIN* 20% 28% 24% 28% * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-13 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions) (Unaudited) VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 149 $ 270 $ 578 $ 720 Depreciation and amortization 23 23 69 67 Share-based compensation 2 2 6 5 Certain items: Transaction and integration costs — 2 — 3 Gain on disposition of hotel, land and other — — (7 ) (33 ) Foreign currency translation — (1 ) — — Insurance proceeds (1 ) — (3 ) (3 ) Change in indemnification asset (6 ) — (9 ) — Other — — (4 ) — Gains and other income, net (7 ) (1 ) (23 ) (36 ) Purchase accounting adjustments 3 5 6 13 Litigation charges 2 2 8 7 Impairment — 1 4 1 Expiration/forfeiture of deposits on pre-acquisition preview packages — (6 ) — (6 ) Change in estimate relating to pre-acquisition contingencies — (2 ) — (5 ) Other 1 3 (1 ) 3 SEGMENT ADJUSTED EBITDA* $ 173 $ 299 $ 647 $ 772 SEGMENT ADJUSTED EBITDA MARGIN* 26% 37% 30% 35% Excluding the Impact of Alignment SEGMENT ADJUSTED EBITDA* $ 173 $ 255 $ 647 $ 728 SEGMENT ADJUSTED EBITDA MARGIN* 26% 33% 30% 34% EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 23 $ 29 $ 75 $ 108 Depreciation and amortization 7 8 23 24 Share-based compensation — 1 1 2 Certain items: Gain on disposition of hotel, land and other (1 ) — (1 ) — Gain on disposition of VRI Americas — (1 ) — (17 ) Early termination of VRI management contract — — — (2 ) Foreign currency translation — 2 — 2 Other 1 — 1 — SEGMENT ADJUSTED EBITDA* $ 30 $ 39 $ 99 $ 117 SEGMENT ADJUSTED EBITDA MARGIN* 50% 58% 53% 55% * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-14 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED BALANCE SHEETS (In millions, except share and per share data) Unaudited September 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 265 $ 524 Restricted cash (including $84 and $85 from VIEs, respectively) 238 330 Accounts receivable, net (including $14 and $13 from VIEs, respectively) 298 292 Vacation ownership notes receivable, net (including $1,885 and $1,792 from VIEs, respectively) 2,291 2,198 Inventory 642 660 Property and equipment, net 1,250 1,139 Goodwill 3,117 3,117 Intangibles, net 868 911 Other (including $88 and $76 from VIEs, respectively) 484 468 TOTAL ASSETS $ 9,453 $ 9,639 LIABILITIES AND EQUITY Accounts payable $ 238 $ 356 Advance deposits 169 158 Accrued liabilities (including $3 and $5 from VIEs, respectively) 359 369 Deferred revenue 371 344 Payroll and benefits liability 193 251 Deferred compensation liability 156 139 Securitized debt, net (including $2,048 and $1,982 from VIEs, respectively) 2,026 1,938 Debt, net 3,031 3,088 Other 165 167 Deferred taxes 335 331 TOTAL LIABILITIES 7,043 7,141 Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding — — Common stock — $0.01 par value; 100,000,000 shares authorized; 75,807,873 and 75,744,524 shares issued, respectively 1 1 Treasury stock — at cost; 40,122,822 and 38,263,442 shares, respectively (2,298 ) (2,054 ) Additional paid-in capital 3,953 3,941 Accumulated other comprehensive income 18 15 Retained earnings 734 593 TOTAL MVW SHAREHOLDERS' EQUITY 2,408 2,496 Noncontrolling interests 2 2 TOTAL EQUITY 2,410 2,498 TOTAL LIABILITIES AND EQUITY $ 9,453 $ 9,639 The abbreviation VIEs above means Variable Interest Entities. A-15 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 OPERATING ACTIVITIES Net income $ 219 $ 303 Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: Depreciation and amortization of intangibles 99 98 Amortization of debt discount and issuance costs 17 20 Vacation ownership notes receivable reserve 182 130 Share-based compensation 25 30 Impairment charges 2 1 Gains and other income, net (8 ) (48 ) Deferred income taxes 2 64 Net change in assets and liabilities: Accounts and contracts receivable (16 ) 6 Vacation ownership notes receivable originations (749 ) (728 ) Vacation ownership notes receivable collections 461 469 Inventory 80 74 Other assets (10 ) (21 ) Accounts payable, advance deposits and accrued liabilities (103 ) (28 ) Deferred revenue 24 (5 ) Payroll and benefit liabilities (58 ) 52 Deferred compensation liability 12 8 Other liabilities (2 ) 7 Deconsolidation of certain Consolidated Property Owners' Associations — (48 ) Purchase of property for future transfer to inventory (27 ) (12 ) Other, net (1 ) 8 Net cash, cash equivalents and restricted cash provided by operating activities 149 380 INVESTING ACTIVITIES Proceeds from disposition of subsidiaries, net of cash and restricted cash transferred — 94 Capital expenditures for property and equipment (excluding inventory) (92 ) (36 ) Issuance of note receivable to VIE — (47 ) Proceeds from collection of note receivable from VIE — 47 Purchase of company owned life insurance (8 ) (14 ) Other dispositions, net 15 5 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (85 ) 49 Continued A-16 MARRIOTT VACATIONS WORLDWIDE CORPORATION INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In millions) (Unaudited) Nine Months Ended September 30, 2023 September 30, 2022 FINANCING ACTIVITIES Borrowings from securitization transactions 916 609 Repayment of debt related to securitization transactions (828 ) (655 ) Proceeds from debt 790 505 Repayments of debt (956 ) (505 ) Finance lease incentive 10 — Finance lease payment (2 ) (3 ) Payment of debt issuance costs (6 ) (10 ) Repurchase of common stock (248 ) (528 ) Payment of dividends (80 ) (75 ) Payment of withholding taxes on vesting of restricted stock units (10 ) (23 ) Net cash, cash equivalents and restricted cash used in financing activities (414 ) (685 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash (1 ) (4 ) Change in cash, cash equivalents and restricted cash (351 ) (260 ) Cash, cash equivalents and restricted cash, beginning of period 854 803 Cash, cash equivalents and restricted cash, end of period $ 503 $ 543 A-17 MARRIOTT VACATIONS WORLDWIDE CORPORATION (In millions, except per share amounts) 2023 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net income attributable to common shareholders $ 268 $ 278 Provision for income taxes 141 146 Income before income taxes attributable to common shareholders 409 424 Certain items(1) 23 28 Adjusted pretax income* 432 452 Provision for income taxes (127 ) (132 ) Adjusted net income attributable to common shareholders* $ 305 $ 320 Earnings per share - Diluted(2) $ 6.59 $ 6.82 Adjusted earnings per share - Diluted(2)* $ 7.44 $ 7.78 Diluted shares(2) 43.5 43.5 2023 ADJUSTED EBITDA OUTLOOK Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net income attributable to common shareholders $ 268 $ 278 Interest expense 145 145 Provision for income taxes 141 146 Depreciation and amortization 135 135 Share-based compensation 33 33 Certain items(1) 23 28 Adjusted EBITDA* $ 745 $ 765 (1) Certain items adjustment includes $40 million of anticipated transaction and integration costs, $10 million of anticipated litigation charges, $9 million of anticipated purchase accounting adjustments, and $4 million of impairments, partially offset by $34 million of gains and other income, net, and $1 million of other adjustments. (2) We expect 6.5 million shares to be included in diluted shares, reflecting the assumed conversion of our convertible notes and an add back of $18 million for interest expense to the numerator of the diluted earnings per share calculation. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-18 MARRIOTT VACATIONS WORLDWIDE CORPORATION 2023 ADJUSTED FREE CASH FLOW OUTLOOK (In millions) Fiscal Year 2023 (Low) Fiscal Year 2023 (High) Net cash, cash equivalents and restricted cash provided by operating activities $ 271 $ 307 Capital expenditures for property and equipment (excluding inventory) (110 ) (125 ) Borrowings from securitizations, net of repayments (30 ) (25 ) Securitized debt issuance costs (12 ) (12 ) Free cash flow* 119 145 Adjustments: Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1) 230 230 Certain items(2) 81 85 Change in restricted cash — — Adjusted free cash flow* $ 430 $ 460 (1) Represents the anticipated net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2022 and 2023 year ends. (2) Certain items adjustment consists primarily of the after-tax impact of anticipated transaction and integration costs. * Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. A-19 MARRIOTT VACATIONS WORLDWIDE CORPORATION QUARTERLY OPERATING METRICS (Contract sales in millions) Year Quarter Ended Full Year March 31 June 30 September 30 December 31 Vacation Ownership Consolidated contract sales 2023 $ 434 $ 453 $ 438 2022 $ 394 $ 506 $ 483 $ 454 $ 1,837 2021 $ 226 $ 362 $ 380 $ 406 $ 1,374 VPG 2023 $ 4,358 $ 3,968 $ 4,055 2022 $ 4,706 $ 4,613 $ 4,353 $ 4,088 $ 4,421 2021 $ 4,644 $ 4,304 $ 4,300 $ 4,305 $ 4,356 Tours 2023 92,890 106,746 100,609 2022 78,505 102,857 104,000 105,231 390,593 2021 45,871 79,900 84,098 89,495 299,364 Exchange & Third-Party Management Total active Interval International members (000's)(1) 2023 1,568 1,566 1,571 2022 1,606 1,596 1,591 1,566 1,566 2021 1,479 1,321 1,313 1,296 1,296 Average revenue per Interval International member 2023 $ 42.07 $ 39.30 $ 39.15 2022 $ 44.33 $ 38.79 $ 38.91 $ 35.60 $ 157.97 2021 $ 47.13 $ 46.36 $ 42.95 $ 42.93 $ 179.48 (1) Includes members at the end of each period. A-20 MARRIOTT VACATIONS WORLDWIDE CORPORATION NON-GAAP FINANCIAL MEASURES In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common shareholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures. Certain Items Excluded from Non-GAAP Financial Measures We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies. Adjusted Development Profit and Adjusted Development Profit Margin We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin. Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common shareholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to shareholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted A-21 EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies. Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations. Free Cash Flow and Adjusted Free Cash Flow We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results. Results As Adjusted for the Estimated Impact of the Maui Fires In our press release and schedules we provide As Adjusted results for the three- and nine-months ended September 30, 2023 for comparison purposes. The As Adjusted results reflect the estimated impact of the Maui fires on the Company’s reported results on a GAAP basis, as well as to the Company’s non-GAAP financial measures. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the estimated impact of the Maui fires. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any estimated impact from the Maui fires. Results As Adjusted for the Impact of the Alignment In our press release and schedules we provide As Adjusted results for the three- and nine-months ended September 30, 2022 for comparison purposes. The As Adjusted results exclude any impacts to the Company’s reported results on a GAAP basis, as well as to the Company’s non-GAAP financial measures, due to the Alignment. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the impact of the Alignment. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any impact from the Alignment. View source version on businesswire.com: https://www.businesswire.com/news/home/20231101621753/en/
Neal Goldner Investor Relations 407-206-6149 neal.goldner@mvwc.com Cameron Klaus Global Communications 407-513-6066 cameron.klaus@mvwc.com