Hilton Grand Vacations (NYSE: HGV) reported Q4 EPS of $0.83, $0.27 better than the analyst estimate of $0.56. Revenue for the quarter came in at $468 million versus the consensus estimate of $476.38 million.

Fourth Quarter 2019 Results1

• Total revenues for the fourth quarter were $468 million compared to $642 million for the same period in 2018.
  • Total revenues were affected by a deferral of $35 million in the current period compared to a recognition of $153 million in the same period in 2018.
• Net income for the fourth quarter was $72 million compared to $120 million for the same period in 2018.
  • Net income was affected by a net deferral of $19 million in the current year compared to a net recognition of $81 million in the same period in 2018.
• Diluted EPS for the fourth quarter was $0.83 compared to $1.24 for the same period in 2018.
  • Diluted EPS was affected by a net deferral of $19 million or $0.22 per share in the current year compared to a net recognition of $81 million or $0.84 per share in the same period in 2018.
• Adjusted EBITDA for the fourth quarter was $105 million compared to $186 million for the same period in 2018.
  • Adjusted EBITDA was affected by a net deferral of $19 million in the current period compared to a net recognition of $81 million in the same period in 2018.
• Tours were up 5.2% compared to 2018.
• Contract sales in the fourth quarter were $365 million, an increase of 1.4% from the same period in 2018.
• Net Owner Growth (NOG) for the 12 months ended Dec. 31, 2019, was 5.5%.

“We had solid execution in the fourth quarter, returning to contract sales growth through an improvement in tours and a gain in our close rate,” said Mark Wang, president and CEO of Hilton Grand Vacations. “This topline growth combined with our efficiency initiatives allowed us to produce solid Adjusted EBITDA growth for the quarter. We have the right brand and the right team in place to execute as we move through this year and ramp up sales of our new inventory.”

GUIDANCE:

Hilton Grand Vacations sees FY2020 EPS of $2.28-$2.39, versus the consensus of $2.85.

• Net income is projected to be between $198 and $208 million.
  • Net income is expected to be affected by a net deferral of $55 to $60 million.
• Diluted EPS is projected to be between $2.28 and $2.39.
  • Diluted EPS is expected to be affected by a net deferral of $55 to $60 million or $0.63 to $0.69 per share.
• Adjusted EBITDA is projected to be between $400 and $415 million.
  • Adjusted EBITDA is expected to be affected by a net deferral of $55 to $60 million.
• Contract sales growth is expected to be 3% to 7%.
• Adjusted free cash flow is projected to be between $50 and $110 million.
• The 2020 outlook does not reflect any additional share repurchases.

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