Hilton Grand Vacations (NYSE: HGV) reported Q1 EPS of $0.58, $0.03 worse than the analyst estimate of $0.61. Revenue for the quarter came in at $450 million versus the consensus estimate of $456.57 million.

• Total revenues for the first quarter were $450 million compared to $367 million for the same period in 2018.
• Net income for the first quarter was $55 million compared to $30 million for the same period in 2018.
• Diluted EPS for the first quarter was $0.58 compared to $0.30 for the same period in 2018.
• Adjusted EBITDA for the first quarter was $102 million compared to $62 million for the same period in 2018.
• Contract sales in the first quarter were $322 million, a decrease of 2.1% from the same period in 2018.
• Net Owner Growth (NOG) for the 12 months ended March 31, 2019, was 6.7%.
• Completed the initial $200 million share repurchase authorization announced in November 2018, repurchasing 3.0 million shares in the first quarter for $97 million and an additional 0.9 million shares for $30 million through April 30, 2019.
• Comparability of first quarter 2019 and 2018 results is affected by net construction-related deferrals of $37 million in the first quarter of 2018.

“HGV delivered strong Adjusted EBITDA and Net Owner Growth in the first quarter,” says Mark Wang, president and CEO of Hilton Grand Vacations. “Our performance is a direct result of the significant value we have embedded in the business by putting our owners on great vacations in desirable properties every day. Underscoring our ongoing focus on delivering shareholder value, we completed the initial $200 million of the share repurchase program we announced in November and have authorized an additional $200 million of capacity.”

GUIDANCE:

Hilton Grand Vacations sees FY2019 EPS of $2.61-$2.77, versus the consensus of $2.84.

• Net income is now projected to be between $240 million and $255 million, reflecting lower Adjusted EBITDA, higher interest expense primarily driven by borrowings used to fund share repurchases and an increase in share-based compensation expense.
• Diluted EPS is now projected to be between $2.61 and $2.77.
• Full-year 2019 contract sales are expected to increase from 5.0% to 8.0% due to softer than anticipated contract sales growth in the first quarter and a project timing shift.
• Adjusted EBITDA is projected to be between $445 million and $465 million reflecting current inventory mix and a project timing shift.
• Adjusted free cash flow is projected to be between $60 and $120 million, unchanged from prior outlook.
• The revised 2019 outlook does not reflect any additional share repurchases or construction-related deferrals or recognitions.

For earnings history and earnings-related data on Hilton Grand Vacations (HGV) click here.