VAC - Earnings call transcript Q4 2018 | Marriott Vacations Worldwide Corporation

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Operator

Greetings, and welcome to Marriott Vacations Worldwide Fourth Quarter 2018 Earnings Conference Call [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to turn the conference over to your host, Mr. John Geller, Chief Financial Officer and Administrative Officer. Thank you.

begin. may You

John Geller

remind those welcome which XXXX And Weisz, federal differ and Marriott Worldwide and historical need Vacations and comments of Thank are today in described uncertainties Call. to under These I'm Quarter not to do in could I Earnings Executive future Steve that are joined Fourth many to securities Chief expressed filings, our results you. facts Officer. the cause everyone today President considered from by are statements subject implied statements materially as our laws. forward-looking our to risks or SEC numerous comments. by

XXXX, that our as updated will events statements the call, non-GAAP not unfold. only this actual Forward-looking we call, Throughout information. to this XX, morning, effective references we comments press will and on financial along make with release be are in the February issued today,

financial in now press President to well our of a call can CEO referred Relations page will at in of Web our Steve to over Worldwide. to the measures and Marriott attached on site remarks non-GAAP ir.mvwc.com. our release, the Vacations schedules Investor I You reconciliation turn as find Weisz, as the

Steve Weisz

the as We’ll for begin morning, to our we Xst. ongoing the integration to with details work the on the financial extremely walk of businesses efforts of joining I'm to over the taking I’ll Good given since and further your guidance surrounding on significant thank year, close savings then how on synergy to initiatives. business, our XXXX Today, provide before of questions. are acquisition results progress XXXX the the I’ll hand well our the especially able update we XXXX September to the call for related turn I fourth XXXX integration out everyone. John. also call. And XXXX. you were quarter earnings then Thanks, highlights financial projecting outlook. happy John our the you various I’ll through provide for as an ILG

more of of would comparable strength million, have or company million MVW. in increased EBITDA were $XX Adjusting million an Legacy of consolidated Adjusted have the EBITDA total by year including ILG X%, ILG's year, XXXX, $XXX basis, $X.X legacy billion, full the million assuming billion, $XX X% have million the business, full of increase $X.XX year MVW. $XXX $XX reflecting from contract $XXX our at true-up would we legacy the million or prior year-over-year. sales occurred strong $XX high-end combined business reflecting totaled On adjusted the from EBITDA revenue previous adjusted the a of For above beginning X% acquisition basis, of this model. reportability the totaled benefitted adjusted performance increase sales contract better EBITDA increase On diversified for guidance would $XX a the million impact, roughly combined an favorable product million, activity. and for nearly XXXX benefitted in totaled higher our from or across cost as sales from driven X%.

were our to grew or XX% MVW million Legacy $XX combined growth locations, adjusted EBITDA significant quarter-over-quarter. in year EBITDA newer million After roughly year-over-year, EBITDA benefitted up product XX% In distributions, combined MVW. this the adjusted adjusting total of how in see ramp from continue roughly in the the And $XX and We from legacy $X our from we business, activity. the late pleased at while impact, which stock in we Legacy for cost grew notwithstanding up the quarter MVW. company up outlook about for majority X% from volatility up adjusted concerns would million which XXXX, or wrapped were market $XX contract macroeconomic quarter, sales sales with quarter, sales X% very have quarter. the fourth the or X% favorable X%, legacy growth the sales sales million existing XX%. Looking including million increased $XX our of or or just in prior the ILG's grew for including million $XX came true

year Our in our to and able sales adjusted financial reflecting as of free the cash flow, adjusted the as resiliency of business both of quarter, previous contract which system were were guidance. and strength as results strong our the growth still of the our generate well overall we full above high-end EBITDA

North oncore driven growth programs, call our that X% as package including transfer XX% and The legacy distributions. flow time in linkage, pleased from tour MVW in as buyer pipeline first Tour by grew business. contributions Looking newer our buyer higher over sales just time X% at first increase America Vacation quarter. flow fourth to ownership I'm tour the quarter, the at was the tours. grew and our well also in report

with the schedule tours arrival tours, date last current activated addition, have roughly Vacation year, the time despite business fourth MVW for year the in Ownership $X,XXX, year-over-year. was line of which North quarter in first in XX% increase than more a lower the America In buyer VPG. grew legacy of CPG with

extent sales of margin being marketing point from result XXX development sold lesser generated we efficient in and addition, basis spending. to as a lower improvement the and more inventory a In cost adjusted

Now, our let with me provide continuing an integration you on efforts. update

world we savings within exchange in I million extraordinary at our annual targeting in to earnings brands call, a years. a of excess change looking as integration with As chance to Vacation make a on run we class our are way our I $XXX continue business. together the transformational the we in total view to do next and mentioned just three and lifetime of rate once opportunity that, a the are previous the as management businesses Ownership combination

the rate to our during of earnings $XX achieve last savings million I'm run than $X XXXX, are to-date, for achieved As projection end XXXX, we roughly million, to of by million of last saving over call. relates provided identified of that have quarterly year, to to years. three targeting as savings. roughly the over pleased of to $XX end it And say and the savings run of million higher achieve within the teams $XX the several initiatives in the that are year over million $XXX to projected months equating next diligently the The million annual have $XX worked have rate in savings we

We and to aren't hopefully to target. exceed additional stop opportunities above The working beyond teams planning are identify to our there.

we Vistana's Starting where XXXX. key working addition the associates, years. the and and Let the a centralized marketing our Club across focus to with take initial meaningful to Marriott we line that me expect initiatives more growth our I sales facing Sheraton programs Vacation over is few are drive highlight a some recruiting customer top I'm Remember, processes the of brands and savings centralize the in our From next when will few the Westin programs. refer brands. sales will to to with we minutes aligning perspective, about training both talking throughout in all Vistana, have be we significant and

the and providing prepared a success. year prepared With associates, education our levels Club for We're with process more Vacation working and to by will to As found legacy force profitable a and process grown them brands Marriott achieved a MVW better believe higher similar the Vistana time our channels grow that program. by the the experience Encore under last over on-boarding of sales greater better sales are have to marketing of our associates likelihood experience practices we consistent years. ensures on vacation legacy we this the we’ve business messaging efficient ownership sales the like sales Vistana during stable opportunities with how the best consistent all than umbrella, Vistana several focusing help over many turnover associates. VPG reduce MVW licensed one We last and normal have Marriot and to grow business

In good sales customer which across addition, system, our made with incentive and messaging with the helps we the progress and experience. again programs overall very aligning pricing

tour flow production, expanding and and and combining across financial platforms, expanding practices pipeline From the our build across of we a back the the program to by house reporting term, are perspective, properties and the resource on opportunity the and human the at especially short in We integrating locations. technology both package marketing businesses related from consolidating brand applications call business. best Vistana technology processes sales International, were also Marriott Encore with grow leveraging linkage relations focused and package focused utilization lodging on our tour and Marriott transfer expanding entire

of successful. and the organization might new systems, harmonizing investment require meaningful given of the you be changes As the the complexity imagine, various amount of time size these to and

won't saving be While substantially many year-end, until by begin XXXX. materialize most the will early initiatives complete to of of these

in partners' $XX in in to various late buyout partner within XXXX. company. of the also into us a expected Before we VRI want was our growth million. Europe recycle the Europe the of long EBITDA extension great International. entered of while global provide understand to agreement I majority opportunity When After connection offer, ILG Interval to with with opportunity read that December strategic we term maintaining this We million business transaction, completed while closing, a strategic didn't we former XXXX, our our determine better interest and affiliation the In for VRI the saw to businesses venture disposition $XX that had joint focus. view I turn it a approached highlights our capital, adjusted as opportunity to our a for as roughly we with a

let's turn XXXX. Now, to

highlight brand, our the Islands property John starting me St. into get reopened a online early on beautiful our with I Ownership guidance, Before in Westin our couple Vacation Virgin coming U.S. let in XXXX, in of we January. Properties

the excited contract contract from Wharf the location forward property be opening this will Located we and significant this Pulse suffered resort district, Vacation forward and As a property XXXX during believe addition deliver future season. hurricane be the running in expect brand, we're guests Marriott second our look looking center sales contributor back have to sales for up this Club was growth. for this wonderful Vacation of perspective. of a portfolio, and it to late to after our year all Fisherman's you heart our the Club what San We're sales damage significant to closed quarter. toward property Marriott very and this a our Francisco to in In may XXXX can recall, it wonderful

Now to guidance.

dollars, we $X.XX billion billion on are sales of basis targeting X% increase between and year, XX%. the For $X.X reflecting a to year-over-year contract combined a

we tap to continued expand what in marketing reflects across the programs tour the Perhaps our forward VPG receive allow marketing program the looking of mainly digital driving to volumes the to of are into we International. are Sheraton profitable brand. initiatives our current in our of significant third channel we end expect Similar mentioned, program, this attractive Westin users quarter, products, targeting While branded to Marriott.com call also most is and from to flow previously will ability improvement launch Marriott, the to marketing growth this with By I digital our growth and our offers tour environment. at many as promotions linked higher locations. transfer Marriott we

the and we newly arena in other opportunities digital we the Marriott the our see media in advertising In social expanded many see about addition I'm to platforms. also the programs, very link excited provides. similar value opportunities with business digital

it business, XXXX but as growth. we to integrate expect of year be we change significant for MVW of expect overall enhance a and to continue a also year significant be the to We

outlined, Given as to that will the we continue cadence accelerates through expect John be it we changes move processes. moments. I the to speak in few year growth the a where harmonize to we our more timing and year of as business

EBITDA. adjusted to Moving

We guidance our well growth of are as from XXXX. me guidance fourth to for further projecting almost that, our segments. John? call coming to midpoint generate or quarter $XXX of over John walk with million let XXXX With to $XXX details results the hand at the contributions as million our through XX% to over our both on

John Geller

fourth the the Steve. integration I with businesses. pleased the make in on strong you, of am as Thank as to our progress well quarter, the we continued very too performance

reminder to and we XXXX the as we own supplemental better structure the not our acquisition, As the earnings which with results businesses management. and since acquisition. These business to To Ownership year, financial performance performed manage third results how through ILG party in subsequent of have these two segments, the highlight Vacation did businesses majority release, to realigned included refer exchange MVW. ILG the ILG's XXXX the our additional in we we for legacy exclude operating

financial the of of results, meaningful to combined a have addition year-over-year acquisition we of beginning In had also if at financial ILG the XXXX. On more combined as totaled was occurred a the fourth million EBITDA in provide million year. of information or a comparison XXXX, X% provided $XXX the an adjusted or $XXX increase sales And from basis, million, million quarter X% contract prior increase. $XX $XX

increased more was million, In XX% of in the consumer financing, business a above year. up the at net EBITDA in additional million income of was development compared margin a our of percentage a being $XX spends slightly million balance. first million to revenue and offsetting or from or to sales as million, $X to marketing reflecting $XX fixed our million securitized of year. consumer $XX financing year. margin interest million, expense to our programs, debt margin from of all X% prior extent, of $X $XX and Adjusted XX.X% business. $X inventory in our reflected XX.X% this expenses the a receivable $XX million legacy interest cost and we adjusted was sold lesser and quarter increase percentage million notes mix financing continue In costs efficient Results financing funds $XX sales costs. prior higher million balance. fourth favorable lines XX% $X growing The to the MVW, incentive interest included grew the totaled benefit growing prior leverage higher and from development improvement Looking business, $XXX or contract Partially of the in increase expense in financing improvements Development or our of combination the in to quarter. million

prior of propensity and year, the higher XX% of driven XX%. higher FICO $XX rental revenues managing and In expenses. by at club MVW These point MVW in higher receivable $X in Royalty higher higher inflationary the as as in financed legacy adjusted other X% These business, with quarter, continues million, to of million rental revenues $X higher transient our million year. higher transient of than rental $X a partially fourth normal who XXXX, or and million, score expenses quarter results were or In the million million, services portfolio reflecting variable year-over-year. related were were expenses. mainly the $XX million X% in activity. driven average strong by for million XXX, from of was notes and rates $X million contract business, of fees a $XX our increase rented, increase quarter margin offset prior cost lows increase portfolio driven historic and rate the G&A financing Our $X litigation resort delinquency well keys Legacy us increase totaled increases, quarter. increase from very an $XX were resorts near fees to sales costs million remain X% results The perform well. while in net remains the increase buyers $X the plus by management by revenues, the

spend. ILG, rental Ownership adjusted in more decreased the the $X Adjusted to quarter basis, EBITDA was a higher and financing in business as G&A $X legacy legacy for generated on business well million sales ILG and were lower also $X EBITDA Contract margins, fourth comparable year-over-year. quarter. up the as the X% or million million Vacation lower Turning

true related product and $X offset by inventory costs, related the that year. other the were higher favorable $X increases up the activity of costs these of sold However, of to million benefited to $XX product which in the million million the being mix prior quarter

expected, slightly lower adjusted lower the the revenues, from costs, EBITDA down prior year, primarily was from reflecting and management membership by certain resulting the and initiatives. offset transaction party business, non-renewal synergy ILG to agreements, exchange For legacy of as third primarily G&A

of company to Moving cash end million. the cash total balance and the sheet. $XXX equivalents quarter, totaled At

MVW. roughly capacity related $XXX We $XX credit receivable million have revolving notes million gross including our approximately $XXX we million available eligible to under Vacation also had million legacy securitization, $XXX in of facility. for Ownership Further,

$X.X consisting receivable. outstanding the primarily associated $X.X most $X.X billion of year Our with resulted and total of of which roughly corporate ILG securitize was of the net at billion, non-recourse acquisition notes billion debt from end the our debt,

the During of part X.X ratio leverage the roughly of end paid senior assuming million million forma quarter, high the companies previous to unsecured guidance range be assumed $XXX From ILG X.X the we end net higher $XX flow down of our perspective, continue above as year all debt including term effectively EBITDA at In notes of as savings, times. XXXX, we development $XXX longer of free acquisition. combined for times, and X a to would million, of XXXX were pro $XXX million of of our than adjusted slightly the adjusted generated cash optimize spending. to we the our target synergy

to quarter, fourth we for quarterly share an at paid $XX million. $XX.XX $XX million we of the dividends Subsequent average share fourth of per And In per of million average Turning shares also of of or nearly price repurchased quarter the our return to stock of cents. the X.X February we shares price XXX,XXX capital. $XX million end $XX.XX. through at XXth, over common and an repurchased

take XXXX. claims our Hurricane of on business insurance the update me Maria status related a moment interruption Let from you Irma to to and

legacy received the of end subsequent settle including MVW, For to we claim. MVW million, $X XXXX $XX legacy the million to

at purchase. carriers advance accounted We it claim, work the time to reduction finalize we continue legacy price our was the interruption million to the claim. received insurance existed with since purchase which to of the our as to the claim, towards for As relates that ILG business claim of ILG $XX

second during the We settle expect quarter. the to claim

guidance reflect adjusted past, any our claims. from settling do and As these not we've insurance cash and free EBITDA the flow proceeds adjusted results done in

update will efforts We continue as progress. to you these

Now, turn to let's XXXX.

As on X% combined to Steve XX% $X.XX basis. sales billion, are of we mentioned, a of $X.X growth targeting billion contract to reflecting

contracts well year strong as growth from of tours sales coming and in at as higher VPG expect We distributions, newer our existing throughout both MVW the our from growth. a business legacy combination sales

However, this the to as vacation growth during business ownership year offset we our Vistana business. into continue first will in be half the timeshare Vistana the growth the of by integrate slower business

have In that from addition, since year benefited qualification incentive Vistana’s financing in the programs prior we discontinued. and contract tour sales certain programs

allow year us stronger to of implemented changes of exchange projected are for the levels foundation being impact to To third as exchange half active than will All expand XXXX, set second members the management Average that projected full year. the of and membership throughout certain reflecting these the non-renewal to or member growth increase higher for in the decline benefits. revenue party the result the slightly of agreements. at of slightly enhance is programs company per inflationary a segment,

XXXX our business, the to new focusing As members ownership identifying strategy we and to of network. for on and per diversifying and businesses benefits increasing resorts average course, these expanding beyond exchange to look ahead the adding properties vacation revenue traditional and includes member

projecting adjusted results. $XXX guidance to are combined of over almost our For million midpoint at we XXXX. XX% EBITDA, $XXX the growth million in We're XXXX

the X percentage this as estimate come XXXX to outsized loss Europe Partially from quarterly the will being growth of roughly from points property to will we the this ramp points a however, XXXX. also will as to X savings. through X let the X the hurricanes, Westin percentage growth, primarily late year, impact the EBITDA timing we points of call the business. with impacted continue our savings While XXXX based by X percentage St. be disposition offsetting core synergy a may the X performance adjusted that to VRI me from of occur from this and We ramp contract adjusted perspective as in of From growth, up the of of up and well improved of expect sales from growth, throughout Roughly incremental EBITDA John our will progress accumulation put it growth our growth, recover of appear sales contracts upon XXXX. half as into in to X perspective. try synergy points come incremental we

We million to million. further XXXX per to share when assuming $XXX fully And expect repurchase between earnings $X.XX income $XXX adjusted share the adjusted between and and do in diluted activity, net $X.XX. no

we results, allows and million million new of XXXX, adjusted cash highlighting provide with and development for flow. model, while between $XXX Lastly, add free our adjusted benefits are these free cash capital which projected growth, targeting contracts financial $XXX all the efficient strong significant delivering to distributions sales flow us

achieve from remains excess capital or we X.X to compelling updates very in repurchases. on flow and business XXXX. look we strategic both cash I best our of we to cash providing note our million the future ILG our enhance use EBITDA, We the proceeds X growing from to rate just adjusted receive outside the acquisitions, finished free strong look in As continue spending We will absence while not organically through our as towards I flow continues interruption for longer And identify company our as to capital to generation we term through claim, have dividends the to ahead. in pro are business in about goals ways roughly synergies extremely this $XX shareholders well remains of of we acquisitions. forward will excited to flow support related growth. look XXXX guidance million $XX should our to to leverage done settling With in to legacy past, sales XXXX, times returning share the forma expect year cost and allocation to ensuring cash acquisition. achieving to use ILG does target the same. include invest progress the that strategy debt to our lies the what our

the with in As will open And Marriott always, for Q&A. interest your we up Vacations Worldwide. we appreciate that, call Rob?

Operator

conducting be [Operator a question-and-answer you. time, At this we'll session Thank Instructions].

Nomura. question. Please question comes from with Brian first with proceed your Our Dobsun

Brian Dobsun

cash integration be questions morning, well free the you and you returned year, of Would through this shareholders any the expenses run to that be cash it puts takes this for as first to two possible have available on expect? some might for flow flow. to I So as

Steve Weisz

So obviously how don't we include items. the Brian free cash guys provide XXX onetime to flow, our we XXX,

And late puts So and $XXX One, I guess and late a came cash. then takes one-time you probably a give the the of excess XXX to year BRI have year integration in or XXX, settlements year, you costs would obviously of that couple or off, so sale settlement. you of then there of million and take midpoint and because little there. the BI the And bit add into backing into the with litigation a roughly the that. take we got

to that call in the deduct. as million $XX So probably $XX range

other still proceeds still I'm the and interruption roughly VRIE the that that upsides business one, for first remaining in through in the potential really do million here significant expect with could be from potential wouldn't we insurer. settling legacy business. upside The get to to We're going guidance. quarter we give be you while $XX see And are, number, the claim a working ILG that then not the our

cash and So $XX to million same to rate you're that additional of that shareholders. think is we a XXX could you maybe back of year, probably potentially the number return in then I assuming the takes take XXX looking for and roughly dividend our the puts

Brian Dobsun

there what will tech app or will like. of bit take in the that? something subtle form advertising, about as then little more Will marketing little to you a be a look bit And question, the follow up that could a talk

Steve Weisz

couple There's be to going things look to for. a

first reservation with this on version modifying you offer reservation, Marriott.com, will an So let the digital program. electronically or the me either you engage making a with that can or you're you're me to that to we Imagine either not. push call let start a choose of transfer you're

that's one. that So

have sheet, where We with a will generates have a put which package. we of the on companies then follow we social book that potentially already advertising out we basis on try and to and continue some lead offers an and to number media then there then we a begun work up

sense some you different two other doing. general experimenting think those the we're stuff that gives So are I is versions. but we’re what with. There of

Operator

McKnight from with question. your is Cameron Suisse. question next Credit Our proceed Please with

Cameron McKnight

quarter? you, talk mentioned volatility the that for I noticed stock as year-over-year the progress through any in the volatile about close mentioned on in rates see and you bit impact we Question And Steve, was December? close the did you market economy. rates VPG you days also quarter. you the little Can through of

Steve Weisz

I tell actually our up rate points. can the for close you quarter, was XX basis

close the of different. rate However, was a little mix bit the

So rate about was owner our basis time points, closing was XX our down to about rate first buyer up closing basis XX XX points.

So that's XX points. of basis the where you net XXth get or

got the late world markets, skittish of mouths R about think the there more started you starting it, or in word mid equity the out November, terms the the some basis. a coming out If little obviously my view market that of a on of is and were negative vibes people's frequent in marketplace, the

And mystery think so no here. I

of markets of the what's Our more exposure equity going little typical attuned our a other customer our are and And the brethren to in probably industry. on. very some has folks maybe

sanctions in So was put the or Brexit were trade when when announced not China unlike place.

get had time. in really a from our have who tendency buyer questions that Our sales much first hasn't think et terms Vacations, Great most it time customers And manifest cetera. executives would as that a track us with of during period itself to would where experience might of you be

that's saw little. it we down a So dip where

Cameron McKnight

flow. terms concerned sales? a spending relative expect statement you free use in bridge cash inventory to the is John for of source the flow that question a cash then of will or of be to far Do And the as cash cost as

John Geller

fairly the There's material maybe not a done broad we but focus we've a as bit benefit those the guidance right more we've the in on Cameron. have obviously, past, a we'll Clearly, numbers the given, to. drive not midpoint For spending of guidance. amount I top-line say, than but it's the little spending of range, amount, to in would the

our always that's so And goal.

a on flow cash and growth guidance with that And to the we've acquisition there, more the years, And over we're legacy and spend and resorts do and in to little adding NVW to certain resorts the opportunity always pockets focused right just to So, Hyatt meaning both do over Sheridan the what clearly basis, inventory. you what add excess years. couple outperform, similar every some so we're capital locations. there's with centers have where that's the on been expect there. usually last in efficient in on sales that the we've less our so we ILG gives that manage do additional But and able Western done year a color and we new

Operator

question is with with next question. Research. from Jared your proceed Please Shojaian Our Wolfe

Jared Shojaian

have So think EBITDA sticking with you combination the repeatability you that? quarter take days. to by sprinkled your that approach a Thank the guess think about what early throughout fourth know that was in the same talk what beat more mindset And drove better fourth the given relative quarter the And around What I you. about you as ILG I you really you just for better $XX guidance? conservative still you assumed P&L. did came is you of XXXX but expectation million. just I Can were implied here, thinking?

John Geller

right. You're

some I versus MVW with side. of we gave the quarter the third the real on reportability legacy think outperformance in the guidance the

So as closing. on based revenues now you're aware, report we

to better cash the and getting expectations. So end of We in closed prior did contracts the and getting quarter the year. closings versus outperformed the our

expectations. $X our legacy I So versus our little million maybe to And through, a that went expectations. on it MVW was million probably to our the as outperform really business on bit seem that was $X

did business is a And performed in in a management in better. the better, I expectations. the were business the I million place pretty much legacy probably little MVW rentals a think and The other party little a we exchange legacy or versus bit quarter in little synergy then outperformed capture was third fourth Vistana management our couple the bit as went the through dollars line. bit rental

the vacation trying ownership Vistana parts the put we This probably integration of on the occur. to the outlook, lot likely the and more moving what year In is terms business Marriott of think obviously, side. the with to -- most we're a out

update good guidance year. we as we’ll feel out move through with we performance the put the obviously we and about you So

Jared Shojaian

we when Europe, was a then VRI And I obviously, see of deal about Interval exchange the closed know, you network. that could or other are first the as lot any segments additional think about opportunity speculation monetization? there there we

So a we'd monetization any hear standpoint? updated pursue else just love to from could on thoughts we what really

John Geller

businesses these only attractive those us, have I Well, very really all profiles. think very an excellent more Aqua-Aston VRI or each TPI, whether learn I our interval to I or think it's clearly, attractive cash not or we've tried about whether nicely. it'd they mean, of it they're question. be are fill it'd be businesses, to flow very And portfolio on out helps

highest be our As understand honest can that either might immediate our consider. businesses, on we in best you there from what one to everything and we screen that I we could in tell future. of now than try with the and or what's something you obviously be cases, But use better of else. If radar use it's we’ll the not all get those of a capital owning and out see capital

Operator

Our proceed next question. instructions] from Patrick with Scholes your [Operator Robinson. Please with SunTrust question comes

Patrick Scholes

up? here, -- questions How third we A online sales had believe long that the time in Marriott think with about lag from you does I couple that'll ramp and the is How take starting to marketing begin between actually you to you noted should that? coming seeing quarter. the think really that

Steve Weisz

a through when time as in the update for do the it. But et But new that they ago, the a ability we people could by package. similar several program I to transfer place that the it's to you'll you in be tour, digital call actually side. terms experience of six years perform taking house much put the reasonably package book on comes it we'll expect which that later months there. to means Obviously, almost get XX it more we Obviously, more to as cetera, actually get us would

any think sales the package meaningful as I So not at of XXXX. coming expect we the of would that resulting terms online benefit third production in in about least until end this quarter, contract

Patrick Scholes

apologize had think you're did release. How you I looked RCI your per I Certainly, certainly member in interval the were next didn't aware, levels and the see the challenges see flat. relates members, the exchange per Did to some My as like question fourth It this if similar? revenue revenue within membership quarter. I performed?

Steve Weisz

X%... was quarter down it the about For

John Geller

for About the the X% on full year…

Steve Weisz

In the quarter it was X%. down

Patrick Scholes

What it X%, was increases? down was driving there or resistance any price

Steve Weisz

aware, in like which there from Obviously, end which wealth large different may accounts was of XXXX. moves of of that No, be come an away different as because resource, forms are one several that the from of account that revenue that. you moved were there interval, away

in you Ownership member go affecting higher the be lesser to also there number is crime the a I business, the it's of you'll affecting Mexico. not membership we Wyndham I The exchange we would et And was bit problems, with growth. transaction was may we Interval out, transitioned that number the some quarter, actually that elsewhere. a other remarks, result, a down think largely. in little only in You that revenue, than expect the is Vacation corporate ago degree. people that Business our hear it to softness to that the fourth RCI that of see impediment nothing the this to revenue that are and something revenue Resorts contract recall is and There's said years would And the over of There because that a inflation. also Shell also but structural only get typical of that up, cetera a the that per as with I as had that's there revenue thing will that comes purchased point growth it. want expect but

Patrick Scholes

Certainly, year out And free after it you then flow think questions two cash uses year. balance more this you last here. is this sheet potential for realistic How acquisition large laid made having year? will going share forward? help something about modeling us you sizeable free could that another to and repurchases flow from like be this this And certainly be think cash acquisition making that

Steve Weisz

integration I the last it woven and and tie not and to to if trying about be great a and ILG insignificant we're big about was two doing that to I serious the on study meaningfully give we think have in the of into our mean, first been great it's have businesses accretive opportunity, shareholders, terms along, be have MVW another pretty acquisition. we'd certainly to consideration. standpoint six our a the from work to taking very legitimate for together thinking to months have But hard that a understand. it to came question. that is I'll mean thing you admit I

Patrick Scholes

thoughts just And one this question. year, last quick holding Investor an timing that timing Any or on of Investor Day Day?

John Geller

the by Our call it, third end goals the do to of here, so quarter. one

calendar to So more come but shortly. everyone's goal something the on it's get definitely that to here on

Operator

we the of Steve At time, gentlemen, the this Ladies back call for closing Weisz I'd and reached to end session. to answer comments. question the like turn

Steve Weisz

your years enjoy result your our excited call Rob. excited but Thanks, the should transformational performance about for time lie execute vacation. shareholders very that the confident on for us next many I'm to to that everyone that more even business the in finally I'm families, about we've XXXX, Thank you, wrapped robust your of for plan I'm and how XXXX opportunities beyond. and and the to identified up ahead in and changes come.

Operator

conference. today's concludes This

You and at Vacations And you for your may lines disconnect participation in this we your Marriott interest Worldwide. thank time.

Marriott Vacations Worldwide (VAC) 28 Feb 192018 Q4 Earnings call transcript