ORLANDO, Fla. (July 30, 2020) – Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” or “the Company”) today reports its second quarter 2020 results.
- Established HGV Enhanced Care Guidelines to provide owners, guests, and team members with the highest level of cleaning protocols and safety standards.
- Began welcoming back guests, with approximately two-thirds of HGV resorts opening during the second quarter.
- Successfully completed a $300 million term securitization along with amendments to the Company’s credit facility and warehouse facility to strengthen near-term liquidity and long-term financial flexibility.
“Over the past several months we’ve acted decisively to respond to the global pandemic, with an emphasis on protecting our owners, guests, and team members, along with making critical decisions to support our business model,” said Mark Wang, president and CEO of Hilton Grand Vacations. “As we resumed operations in June, we saw our owners and guests quickly return where conditions permitted, signaling their continued desire to travel. We’re prepared to open the remainder of our properties and sales centers over the coming months and have made a number of process and organizational changes to further enhance our industry-leading efficiency as we resume full operations. While a return to truly unrestricted travel will take time, our flexible model will continue to allow us to manage our cost structure and take necessary actions to preserve our liquidity in the near term.”
Second Quarter 2020 Results
- Contract sales in the second quarter were $35 million.
- Net Owner Growth (NOG) for the 12 months ended June 30, 2020, was 3.2%.
- Total revenues for the second quarter were $123 million compared to $454 million for the same period in 2019.
- Total revenues were affected by deferrals of $4 million and $34 million in the current period and the same period in 2019, respectively.
- Net loss for the second quarter was ($48) million compared to $39 million net income for the same period in 2019.
- Net income (loss) was affected by net deferrals of $3 million and $18 million in the current period and the same period in 2019, respectively.
- Diluted EPS for the second quarter was ($0.56) compared to $0.43 for the same period in 2019.
- Diluted EPS was affected by net deferrals of $3 million, or $0.04 per share, and $18 million, or $0.20 per share, in the current period and the same period in 2019, respectively.
- Adjusted EBITDA for the second quarter was ($19) million compared to $90 million for the same period in 2019.
- Adjusted EBITDA was affected by net deferrals of $3 million and $18 million in the current period and the same period in 2019, respective
- In addition to the adverse impact from the closure of HGV sales centers and resort operations, the COVID-19 pandemic had the following impacts on total revenues, net income, diluted EPS and Adjusted EBITDA:
- $8 million or $0.10 per share of one-time payroll related expenses incurred primarily related to payments made to team members as a result of operational closures caused by the COVID-19 pandemic.
- $6 million or ($0.07) per share employee retention credit granted under the CARES Act, primarily related to payments made to employees as a result of operational closures caused by the COVID-19 pandemic.
- $1 million or $0.02 per share related to the refunding of club transaction fees to accommodate guests impacted by the COVID-19 pandemic.