Hilton Grand Vacations unveils positive Q1 results

Hilton Grand Vacations (HGV) has reported positive first-quarter 2017 results, with growth in net owners, contract sales and a net income $2 million up on the same period in 2016.

For the three months ending 31 March 2017, Earnings Per Share (EPS) was $0.51 compared to $0.48 for the same period in 2016, which net income was $50 compared to $48 million the previous year. Adjusted EBITDA was $94 million compared to $96 million for the same period in 2016.

The main highlights from the results include:

• EPS was $0.51 for the first quarter, a 6.3 per cent increase on the same period in 2016.
• Net income for the first quarter was $50 million, a 4.2 per cent increase on the same period in 2016.
• Adjusted EBITDA for the first quarter declined 2.1 per cent on the same period in 2016 to $94 million.
• Contract sales for the first quarter increased 9.5 per cent on the same period in 2016.
• Net Owner Growth for the 12 months ending 31 March 2017 was 7.2 per cent.
• During the first quarter the company completed a securitization transaction for gross proceeds of $350 million.
• During the first quarter the company completed its separation from Hilton and began trading on the New York Stock Exchange under the ticker “HGV”.

Mark Wang, Hilton Grand Vacations’ president and chief executive officer, said: “Our first quarter results were driven by strong net owner growth, increased contract sales and our ability to efficiently maximise capital.

“As we continue to expand our member base and enhance member experience, while furthering additional strategic initiatives, we will continue exploring new capital deployment strategies with the goal of generating growth and maximising shareholder value.”

In terms of the outlook for 2017 as a whole, the company made a number of positive predictions, including:

• Net income is projected to be between $170 million and $186 million.
• EPS is projected to be between $1.72 and $1.88.
• Adjusted EBITDA is projected to be between $372 million and $397 million.
• Full-year contract sales are expected to increase between 5.0 per cent and 7.0 per cent.
• Fee-for-service contract sales are expected to be between 52 per cent and 57 per cent of full-year contract sales.
• Free cash flow is projected to be between $140 million and $160 million.