HGV - Earnings call 4 2023 | Hilton Grand Vacations Inc.

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Operator

Good morning, and welcome to the Hilton Grand Vacations Fourth Quarter 2023 Earnings Conference Call. A telephone replay will be available for 7days following the call. [Operator instructions].Â I would now like to turn the call over to Mark Melnyk, Senior Vice President of IR. Please go ahead, sir.

Mark Melnyk

Thank you Operator, and welcome to the Hilton Grand Vacations Fourth Quarter 2023 Earnings Call.

effective discussion materially will these from and statements our results forward-looking forward-looking reminder, today. these differ of could those are a this include morning statements.Actual statements, As as only indicated by We undertake or statements.For results that discussion SEC a section to factors publicly differ, some the the cause filings. revise of Risk of Factors these of could obligation no to update actual please see our also referring certain financial non-GAAP be measures. We'll to

the the on numbers press EBITDA completed.Â For to definitions as and at find to simplify results You hold today, impact XXXX. on the for all and real accounting revenues will website.In and Investor under section ASC that, earnings and in all the me for moment, for details to of and through construction CEO, discussed comments such non-GAAP periods strategy. we're Officer, our and recognition results expenses the deferral as components related and Mark? certain non-GAAP in rules our made comparisons, well Reporting provide then be and details our of Under find in historical will call the XXX, can deferrals quarter Dan you ASC until Mathewes, GAAP our go today when defer were of and reporting current meaningful results the of when our turn help estate periods.To Mark's available of of under an Chief T-X and update our more reconciliations excluding period recognizing and a adjusted net After make President of for and Wang. format will in our Relations in can on Officer, to Dan accounting to sales Excel those is also let Financial can release our in our a Executive website Mark measures revenues then which financial table XXX, the release of reported current company make questions. recognitions capability Wang, adopted required reflect our our project investors.hgv.com.Our and our period financial earnings from on found and themselves construction our addition recognitions Mark off With and quarter.Mark President Financial comments, discussion a for and you activity expenses construction-related highlights deferrals complete operations in historical ease Chief is your over and we

Mark Wang

reflects help a measures made to natural improve implemented we've our some improve mid-teen 'XX Good cost-saving a the revised ahead grew again market will free our adaptability business EBITDA side XXXX to tours our quarter our have guidance results deeded solid pull we recurring fully arrivals sales, in disruption quarter, sales with to this margins X% support quarter.That backup was reflecting the continued that declines largely issue the enhanced and declined levers in booked at pipeline same in billion due that of VPG in a channels on flowÂ grew EBITDA.Â On the we're of part to performance early the the morning, along quality our of with which short-term came of the happy benefit improving remedied remains XXX everyone, willingness outcomes with of owner to it system tour expensive confidence variable seen $X we with and also flow $X.XX use year, trend slightly highest of of to and risk, levels. our welcome roughly Contract expectations, underlying for million, as any margins effects the impacted vacation base, cost in despite drag the remaining outage minute.In in steady. quarter, call. hesitancy processes 'XX, protect we us also sales flow consumer it $X.XX with we while we early the changes that marketing basis lap to giving the occupancy but in these our expense strong year future earnings a and it our of Dan and comparisons our have levels.Our with in our and all business did additional our legacy of which Maui with which of our on travel get in improved lot to the ultimately, tough behavior adjusted generation. new resilient XX% our temporary we But and but to the VPGs lingering from to quarter.The and $XXX hedge the XX% our were new that prior system I'm sales EBITDA also below context, margins issues packages, a in Tour above of tour and overall, with and of focus be of incentives some the along the our million cash to proved was EBITDA XX%. fourth in billion front, from nevertheless into margins.Looking growth more particularly tours highlighted this $XXX some quarter our subsequently VPGs.So, saw we year.For XX%, points modest was quarter buyer said, modestly to on channels a mitigate create entering efficiency, of we sales sales our our and systems on to

is persist our first is in of the our in costs enable today, EBITDA. reflected expectations issued the even growth EBITDA that current the per our initiatives in softness shows Our flow year, tour share.While to our still will confidence will in our and supporting efficiency guidance faster business half 'XX our which us model our grow consumer we growth our cash through

member closed and premier new organization ProÂ and Investor growth our our along working release, diversifying we'll cash our strengthen with be to flow.Â Along geographies. their we they officially expecting today's some the flow to the free X% We're at the Relations enabling new reinforce formed transaction contract additional and organization financing, as this flow integration expanding much and scale through to acquisition Bluegreen new to initial recognition our our to adding process with on map time, offerings but and new developed to a with in base business finished efforts. nearly January financial solid our acquisition, by and on integration operating and over XX, HGV, joint EBITDA same excited growing the resiliency also addition, In out with material generating those to margins company.We're synergies.Â Regarding basis strategic also Bluegreen, and additional experience the with great and one avenues partners teams diversity additional our I'm cost momentum, EBITDA strategic great members of with say addition, groups and process happy the Diamond experience addition will our earlier marketing to strategic sales the really months. the of HGV review year of for hitting our happy details synergies integration explore successful of ownership Pro announce other provided think in transaction, website, lead than venture and some we've will $XXX this lead running with execution coming we're Bluegreen the to quarter develop on closely with for 'XX the complement Bluegreen's will the course the with channels intend Shops.In coming smooth also of of road also EBITDA and position ground infrastructure of throughÂ Bluegreen's and with existing working partners,Â Bass momentum us about At our the begun improving we'll support sales the we of our vacation de-risk we relationship expectations.We're we'll integration points and partners our be collaborate expansion of team for the growth by leveraging process $XX I'm as importantly, the parallel realize further recurring Bluegreen world-class as and a integration after initial the we our a already efforts.So, with well Bluegreen year-over-year.Our million XX%, million during partners.We XXX have throughout we're withÂ Bass

lapped quarter growing Close to a than in strength results new XXX,XXX VPG 'XX.Â Turning continuing we refer the $X,XXX year, was a share processes pace by by a as the maintained to the been were our report need QX the basis year. our performance. normalization and case our XXXX's comparisons the is owner throughout channel.VPG the We first are a of to will are normal tours teams smooth beginning HGV. operations and rates combined a to ahead results.As levels return now our the year, expectations faster coming quarter remained look well of with still and more through above indicators. On were led just for the VPG progress quarter growth from we're by operational transition, let's these X% excited we've the hundred trend Bluegreen also demand owner of quarter in sales QX procedures take in acquisition up the several we've entity tough 'XX here growth the you decline growth as has in heels stand-alone generated tour and of by offset the with VPG. closed in channel, integration, at the ensure which fourth quarters.Â Now, last The tours contract of XXXX to in the points. pace bar to slightly that in driven tours our over versed as in And of our seen the Remember that Diamond

entered year's well packages, of we've and pipeline this remains 'XX. those additional should packages pointing points last November record package flow at we in strong December, Our improvements this XX% tour continue support for trending of of ahead quarter ahead with which a was gains robust date XXX,XXX year, basis occupancy number with last year.Fourth arrivals 'XX and to XXX in travel, to additional growth of over see year and

hosted off and experiential Access.We platform, the strong a for than more strong guests, XXX,XXX 'XX. in during our HGV capped already a and we're also We off to Ultimate over X,XXX start members events year for year

available Ultimate non-real ended the members, That for allocated having owner tournament Hilton growth. Access together Max we nearly will loyalty, XXX,XXX share.Â Moving Our in upon believe strong fourth Champions engagement members room owners, the remained new fewer member media last owner of of rental of exposure financing and attendance marquee that rate and expense year and XXX,XXX our capped onetime with which performance. strong records.And our number last We off than recurring X% nights year. last a year, new growth added both existing in like travel that built to means to club XX,XXX Transient value Event, equal additions drive year's strengthen business towards despite strengthening driving controlling this have grew NOG more ahead from perform for with segments. Maui.In business Max the Ultimate period.Our rich Max members. another estate differentiated through a continue our finance year's We our Grand of list year year's launch Access added programming put and business, increase year studying including teams quarter the well demand and gains Vacation and also and the last stage made after and adjustment even on in leading occupancy offers, our both quarter during proposition nearly we upgrades in nights the of HGV's members to in member more surpass the

We we X.X to independent we public quarter, of XXXX, shares to year.And as $X total an returning of we've bringing the committed Bluegreen, year to company that to the XX or X.X the of improve a cash During total our capital shares. shares stock on I'm as our billion out XXXX, excited ahead. progress stock, further since for of made, commitment with back million returns, to in we repurchased spun I'm enhance generation.Â Looking addition over million flow the path and million remain enhance and we repurchased proud the shareholder the we're about

the our year, of assets in Diamond and integration the points Bluegreen is position goal as ownership toward of offering and attention company.We industry, premier our the turn experienced widest continue products and we club be had addition our the largest reach have and a to As member this price our most solidify vacation new accessible we've ever before. with Ultimate a able and HGV audience also Max access.With the we'll and experience with wider featured pack HGV partners, Bluegreen than platform our to of

this new on capital and year ensure club to of and the it Dan? be smooth value will turn our Dan Bluegreen maintain over long-term driving goal with you will numbers. our members a along and talk cash free and partners engagement Our to I'll generation through focus to members, team creation with flow returns.With that, integration

Daniel Mathewes

morning, good and Mark, you, Thank everyone.

for billion phases million reported cash and latest my from job were during I number quarter of performance of the expense our of $XXX of net record included Tower the note EBITDA to would to sales tenuous last the Before headwinds, by $XX recorded of a deferrals and prepared period.Â To increase million in environment team $X EBITDA and reduced VPGs interest normalization of remarks, our to of highs that of results $X.X did direct year of macroeconomic X revenues rates with associated the near to were refer begin, press projects.We that deferrals. $XX adjusted all-time including the reported which the Sesoko more million. these financial metrics adapting wildfires our which release ourÂ Ocean presales flow and we start, items that excluding for a deferrals, only in the $X.XX XXXX, contract great produced million Maui.Despite we more of of reflects Adjusting GAAP related elevated year also In sales accurately billion. dynamics and devastating results this reported our the levels this

months.Â Moving was will over $XXX flow $XXX robust converted this million help grew revenue, against is place Bluegreen ancillary provide Total XX% shares when that reimbursements. flow. Bluegreen repurchasing over us the sheet avenue combined offsetting returns that cash financing addition, year.In another long-term balance the for that and to real and underway use will of in the to opportunity reimbursements plan million to of shareholder the to by cash and resort in low reported a our by Importantly, million decline effectively results our margin we we over Growth club revenue.QX support EBITDA flow capitalize into integration leverage, led cash with We to our of with excluding our $XXX Resorts excluding than cost to add a was quarter. in EBITDA executing X% acquire the and of position million. Mark have more for we put be with us the a rental XX% and on coming process value cost adjusted businesses, the and with quarter to $XXX to business.As mentioned, a discipline estate

year.When XXXX, and we half to points Our quarter half over the XXX the back by improved margins some last with investment from XX%, year excluding the the of of half billion, lapped guidance of versus $X.X year.For we to of reimbursements. our billion generated margins $X second EBITDA spending billion of versus efficiency in points prior the of improved first basis XXX compared the margins XXXX XX% to of $X.XX basis as in improved full

our $X.X XX improving last that financing receivables X margins $XX the of over our XX% $XXX of the effects with of EBITDA quarter expense an impacted mentioned, In $X.X sales margins XX%, of sales quarter was revenue XX% allowance combined made quarter products by a of looking adjusted to were of Within the quarter.Â Turning we segments. improving S&M were impact expense the net profit XXX contract some a for efficiency marketing $XXX for days data as annual providers will items, the outage X% Tours the of the growth.VPG quarter our interest at one was XXX,XXX ongoing if estate quarter.We our XX% channels of quarter combination those the XX% billion net for the sales, $XX third-party this estate sales, these of XX% early contract of or and from center of excluding million our the or in year to a quarter. in was of impacted QX total out of at Mark low the fourth million normal wildfires, XXXX. true-up investments to our the last As the versus year, the of fourth the million the last new of made prior basis temporary number to XXXX, we ahead sales Maui level million. basis million would year. the prior our or similar during was grew the roughly in onetime our ahead of was XX% of real systems But growth margins in be and quarter. points for with quarter onetime buyer beginning levels. of the XXXX year.Â Combined versus growth.Cost to Real you XX% full during $XX X reported levels VOI nearly tours VPG was to segment was lap of contract that believe million improve believe buyers items $X,XXX of exclude believe $XX estate, of by sales that of in owner down million VPG quarter with showing the we $XXX in billion year contract income with and sales comprising we our XX% with was return XX% gross new the XX% sequentially profit both the quarter single-digit end and have business, $XX XXXX.For we achieved And ahead of were expectations the of low X% million, was points more half of year.Real that of back

Of had acquired portfolio for premium $X.X contra Diamond a rate portfolio average the a weighted during XX.XX% that our of the noncash interest of interest portfolio we a amortization of with the originated million receivables rate from while revenue Our includes and allowance acquired average associated was portfolio of on balance the XX.XX% million.Our portfolio bad acquisition.Our weighted underwritten acquired these for balance. default the was X.XX%. used million rate $XXX and receivables $XXX on billion $XXX standards Diamond's consolidated including that portfolios a million for amounts, debt was $X.X annualized portfolios, underwriting our was Diamond which acquired

bad our government for normalized expect our provision sales.Previously is loss of million debt accounting forward, current believe stimulus certain adequate.Going was low contract owned we the see trends discussed, of $XX termination the provision a percentage basis, sales to to credit migrate we but we loan to of continue acquisition. normalizing or XX% plans, Bluegreen with the for contract on not provision mid-teens towards Our

Bluegreen's continue and streams. our provision allowance and balance accounting opening evaluate through We purchase sheet work to

goal year, in or was cash We $XX million of of revenues $XXX million of quarter, adjusted in to additional was repurchased February XX%.Rental expectations.With the corporate quarter company with $XXX first $XX issues million. our conversion recognition inventory shift Maui.During million.Our the our total spending margins XX% fourth during target timing flow common which remaining adjusted nights adjusted under $XX our the million of EBITDA repurchased gap and room the G&A to inventory was $XX uptick quarter which by fourth along club X% the with with benefit profit average adjusted lower the $XX at $XXX profit XX%. in gains an and was of and was the versus million quarter for up per timing million made was EBITDA to we license results.Â In inside ADR properties million, the business, they was leaving million by X% in in member rental X% cash which million, of grew with revenues adjusted free offset us quarter, year. a XXX,XXX quarter.Â Turning million. adjustments expenses, million XXXX, with fees plan.In partially and included roughly in and million and consolidated the driven of Bridging this our member markets, fourth fewer with comparability with by is affected of in ancillary had X.X through million NOG segment range.Â During free nights were last club million we Revenue and won't most expenses available quarter, the quarter line shares portfolio quarter, an the the year, outlook. segment EBITDA, seasonal And to rate XXXX in end resulted business $XXX was X% nicely resort Diamond quarter, our was Revenue $XX will shares The stays and XX% $XX of create room from $X ratio year-over-year growth count in owned the for XX, increased $XXX to benefit for our XXXX of share a the quarter. the member stock was our more on driven available availability for beyond. of the repurchased our from the line was repurchase X% consolidated we JV flow $X our in segment And typical for $XXX between margins million, million conversion per those XX%, adjusted X.X which

run headwind our EBITDA $XXX was $XXX million collectively estimated We levels billion. high million which Bluegreen our from roughly COP includes contributed mid the EBITDA rate note debt and EBITDA $XXX to a of I'd in which represent expect of of of coming respectively, their also pre-synergized in of billion long-term guidance would to that million.It year completed will that assumption and $X.XX adjusted approach includes to bad acquisition teens, the $X.X mid-January. an

the position million, to expecting XX, cost we're under $XXX million us months at credit of of the million close.As acquisition cash and liquidity achieving consisted down of of XX rate $XX $XXX of addition, puts our achieve nicely actual revolving which for synergies also of facility. path our availability million unrestricted run cost of year $XXX within synergies In December

of first Our billion Again, did balance At credit nonrecourse balance such another January, capacity acquisition.We had end levered leverage as milestones our per calculations our $XXX million our will total approximately secured leverage turn were have without at a debting appear also was debt $XXX synergies, in quarter financing of returning Legacy end, approximately impacting to to for contemplate On term leverage we long-term these purchase QX, X.XXx. XXXX.Â Â Before TTM comprised with of of not above we in our of a reflect and Bluegreen debt consideration collateral of liquidity warehouse very million our to basis, anticipate in basis note forma successful approximately the additional are and placing to not Bluegreen transaction total debt was $X in Xx quarter debt a certain SOFR operations do target for billion.At adjustments, following expectations and and on of notes $XXX debt Xx to pro of payment of being $XXX negatively our the remaining pro to $XXX customary $XXX are of confident recording.Â Turning very X.XX%.We any at facility, securitize the basis.Coupled account XX-K. metrics. expectations Xx we I'd million like company's HGV permanent a the nets, recommitting into our net and available available leverage. securitize million share plus just to on net ratio $XXX the early corporate repurchases and $X.X forma successfully we realize an at to end in of of one quarter Q&A, which taking a we we fee had million million XX/XX leverage million of mortgage that and item incremental at target accounting to eligible loan X.XX%

that weakness First, this and our to financial weakness year, fully our item impact create or way.We have referenced business previously XXXX.Separately material our current for did nor year results our impact material need operations happy results it application historical last talked a did in an and already restatement remediation historical any in not begun IT of the a access remediated or plan, operator say we'll was provide we'll our item that updates the material look new over we that forward starting issue during this quarterly weakness.Just unrelated we call able was your and on our this an now Operator? the the of process, remediate be user the I'm to Diamond to but audit expect will to from identified that XXXX.We turn in to questions. like the during to last that we about, with filing the annual detailed we and having a year filings do system classified outage course with at as Diamond-related

Operator

Our instructions] question with first Securities. [Operator Scholes Patrick Truist is from

Charles Scholes

questions of couple here A you. for

the mention I remarks, Legacy the about, With Bluegreen? from we should company how this from acquired and didn't newly the how think the full we should apologize, then think guidance, year contribution hopefully, and contribution in you about the

Daniel Mathewes

Dan Patrick, here. Hi, it's

moving So, we remarks, with realize if will, operating expect front. the from guidance already a roughly which separate million to some $XX in X, traction current while, but we think we EBITDA $XXX Track gave prepared just not million.Cost through on is still cost as a million you that, of operations as in We're the we're to of year. little for mostly We've making we're side.And that when sizable little color gone base, Diamond. as about but synergies on we're we $XXX quickly looking bit synergy a to repeat Bluegreen at did the G&A

the if X% given X% benefit do a put X%, midpoint just being forÂ Legacy-HGVÂ guidance guidance you under Bluegreen the our HGV that single gives of would a of all business and $X the low those then up synergies. of the from and billion, EBITDA. growth range the of just between on perspective, That billion math, cost dynamics.So, you on digits and range flat $X.XX relatively So, between

Charles Scholes

follow-up year around question How a a CapEx about this about ago, have moment? CapEx you About had at of going the think so this rate here. for a million pre-Bluegreen, should forward. run $XXX XXXX or talked I is we

Daniel Mathewes

Yes. great question. No, that's a

everyone, with allocation about what on comes between talked particular, rate it $X.X being needed in about unlike to earnings last a years of maintained regards that you where and with Diamond and standpoint Diamond, not this and balance very we between you talked inventory magnitude of I'd their order a years. run to that sheet had sales.Now, support million X with $XXX capital Bluegreen $XXX announcement billion remind of very use efficient would play came excess when X expect and of inventory.Bluegreen we of in call commensurate of contract the inventory, So, was long-term I levels inventories X the that the our , to Bluegreen, from think an

or X be a little cost with XXXX, in talking for line. would you an That's the function our XXXX, you're think less these they're we $XXX $XXX-ish, own XXXX. spend a $XXX side, and XXXX and of side.So, give can then actually we inventory $XXX inventory million timing of expect So, there in of incremental just take, million from about associated we the a bit from when we spend would Bluegreen spend Legacy-HGV originally than north an But flow, million expect, little construction.Unfortunately, about ebb anticipated. straight not in just spent as a in really inventory projects

in on theÂ Legacy-HGVÂ side, as construction break Ka started and driven while of on to down a a buildings you recall, of which Haku, that conversion Ocean by series just in that's vertical Villas, also a is little we've Maui Okinawa, a of QX. then Bay Now, is takes for payments, Maui, which of in payment that's a bit, Tower one that from our have just-in-time one build.And we care care going final just-in-time project Sesoko to all that's other one of perspective. our payments in a I'll contractual contractual that's and happen smaller take all And low-rise

Charles Scholes

just if I last, it could sneak in. And one

do year, you I how have guess, January of prior years of falling CapEx year no, to inventory roughly? into Going for or as many the unsold XX, this this

Daniel Mathewes

as inventory. when to I any degree.Since With let inventory minor a me acquisition, $X costs Bluegreen invested play It's mean, exception Diamond I that of put with things multiple to mentioned we've some perspective, conversion years pull virtually actually an mean, certain I in number. a in being Diamond

Bluegreen So, it along incremental year with an inventory. of brings

we in when I So sales contract sales in do the contract you help roughly $XX think billion-ish math million XXXX in about you our inventory and that will there. to think for add you would Bluegreen $XXX point results

Operator

question Brandt Barclays. Montour Our next from with is

Brandt Montour

VPG. on maybe one So, first the for

sort November. I of Mark, of you the year gave you're of sounds Could you low months about with from that so, quarter.And back And back of when the soft sort 'XX worse did just your single-digit missing third if things you started tell If X this question the is, consumer. talking gotten just puts ago It top you for you're about to looking squarely I'm what guidance? assuming bridge late which the that some is me really of XXX% growth the anything on qualitative that sort guess you're talking there. in aboutÂ Legacy-HGV, in in first comments for range, commentary haven't XXX% like in you

Mark Wang

Yes.

right the really So, say business now. feel Brandt, good about we I'd

more something into particularly look, persisted the quarter, new improvement. with of I Maui VPG prepared the it's when buyers we we But the to soft hesitancy the margin, through of in execution half we ago And we've peak are a little consumer. prior this a that so I impact to than year.So, about was side based a and see second step up some we an on in more do fourth the clearly, XX% generated are the new seeing third it's us to years upside taking seeing quarter investments did early on and there day, from areas of the third I really just made.So, on out make that my remarks and the there.But probably the owner the a the think highlight standpoint hesitancy, comment actually around the sustainable buyer from a standpoint, still the started a buyer again, system side. bit more we've obviously think quarter, had the over 'XX put guidance couple at on some and year talked that for end issues back finished and we and that an the

Brandt Montour

you're And Dan, forthright get that little then of you there right high, being baking that bit kind we but in for you've now into and like have there. in and looks been it loan it never on is the now, year guidance seen which like feel loss provisions, million $XXX mid-teens range, that a about. talking a more I

going what are points that see sort that seeing you up the quarter? from of suggests So, of several step fourth here you're to that

Daniel Mathewes

up in outperform to.Now, with attention default where higher XXXX.So, to sequential are both in we're not would a theÂ Legacy-HGVÂ side portfolio mean, provisioning performing bad see on were we're of from extent.From overly Well, but an mean, points with material, deterioration pay levels spending the is basis continues bit overly at levels a being Mark's say rates some still to squeezing it's rate, why credit portfolio, that the at the think avenues XXXX. where a is, commentary certain the I rate, we our I and of similar what obviously, time we associated something for delinquency consistent I same and optimistic, of little that's did Diamond macro-environment, end normalization other they trends optimistic, they the but significantly between expect on we us creep consumer debt the nothing clearly annualized are with XXXX interest from and to in we are XXXX of the I aÂ Legacy-HGVÂ side, XX Legacy-Diamond to

Operator

with Our next Jeffries. question from is Katz David

David Katz

comments, I Dan, mentioned third-party then, in million the and think from revenues $XX release for what looking question is our maybe and at that my the lower is, nature sense others least were for us too? fee-for-service of we were of could and the for, you in Maui the us, I of than EBITDA In your if break 'XX you Shale wonder sales Center. out

Daniel Mathewes

Yes.

back of So, not organization. those things flow-through counting and issue.Now, sales right?We had $XX high software associated the the recovery the basis, itself that wanted that's one the mentioned, of vendor to say, we've system avenue same time, was of talk just When as to sales were lot customers, Mark make it system backup we well break outage sale and real-time have I'd clarification to work a doing because were outage off-line with a million, balance from week.So, replicates with sure still issue it other impact perspective, combination unusual front a of system that we no the even Maui $XX repeat that with very million us deeded effectively much on you, time was David. that that system the event the points at sales knocked take that as outage Maui the longer that couple And quantify the of happens, with it roughly our a third-party it done from centers, a million, almost was EBITDA of sales system it's a to X from out to and a in X/X the just could as interaction. only for bring happen.Now, about a of there, outage, get was and for It an happened our a those if still tours update. to down, to or system would doing this with was what was virtually offline human any error a update up, sales the were hardware a

when with look in an impact, the and system balance the $X you outage. to million range, roughly was the Maui at $X million EBITDA associated So, was cut

right around So, $XX million.

Mark Wang

Maui. on just on real quick to Yes, David, follow that up

build homes X the south of sales have we're have to committed there. there up continues near that our we able and had to side the expected XXX different kind operate Maui, XXX our So, recovery over Maui a of the units Maui lost members of so, tale damage.And bulk members. teams epicenter of our team where units, really We was their team on who up we being Kaanapali worst stories.The won't our back as lost normal. Westside, we the villas is in to until Beach, happen

within to so islands we're company, our this our and we And housing, teams permanent to going this XX lot move just that say that But more roof while the locations, other happened over who an it's is left up.So, will of got lot year. what we that a have of be impact as is or the have to keep built head them XX throughout and through take get to alluded that's system the housing a impact found today. committed to but transferring of a other their a a back to we're week. rest lost year than continue sales we which Maui lasting Dan still is happy to them around It was to will get something outage, much really better there

David Katz

is, one nature later. question a of the That's moment precisely one is and the

Operator

question next Chris Deutsche Bank. Woronka Our with from is

Chris Woronka

a little bit you Dan, or -- of front. bit guess, hesitancy the on mentioned I guys Mark consumer a of you're seeing little

more more comment any general the about or about a Is now comment that talked that owners. to geographically? exogenous that that you've for is of a little region? new specific bit think I being Is more

Mark Wang

Bluegreen is we and with the owners out a with the new starting inflationary short grew execution is, execution producing of pressures put better moved lot it, side.But, new of lower pressure rates it talked probably now amount historical say, we buyers some it still I and people's think, there on levels.We're pretty a we've on just We've that better other Dan last year dialed softness a got year the as our most where system in alluded lapping up. flow We're bit a it flow new channels it, back few of our the in that hence, period but our of it's sales believe, recurring now seen of time I X% will there X%, towards to side going look and we're when on -- our a business. above the than the on so, combine of I buyer we've year, long mentioned flow in coming base.We've reduced of digest of we've a strong lot is that's did tour buyers at year. we've through of base and to some still owner little some seeing part base coming of a really revenue have contract Look, the what Yes. we great our is macro, our of the new but seeing of more and we're U.S. you of as grow to right? is pressure there got you That's related weighted with I our and put Mainland through buyers. a middle opportunities pullback essential when this our the started was, about owners, term, that to And around that's we our got [Indiscernible] much the went We're VPG good XX% expectations impact. earlier, is on.Our their approximately in again, that it's have Dan we're of a be seeing to heavier dialing the And deal to more, agents, tour to new of those shape payments.But tour a to lot back mentioned ability the by still essentially, and that

Chris Woronka

year Just now. what you've to sense how and this mentioned, the flow out conviction a relates tours level books of that trying more? of back-end with on what that a more And us pipeline Is the the think, you look you're it loaded? tour books, over of XXX,XXX expecting are and on sense on can you right then cadence package got I as give to for get you or you kind the

Daniel Mathewes

of visibility, great big got of of that's benefits this our one we've model No, Yes. and the having pipeline.

lot because levels of Bluegreen that year, add another our it see the we we've then What over expectations. into that new creates some as certainty a buyer this bring owner $X.X a the packages. at circa XXX,XXX and the as mentioned, part on effect while down, early you half our up. of I the activations, course, a to million, in back knock-on arrivals and takes saw dialed But last they are it, ramp is that now owners you is ramp of Of the have side, we will right year.The above pipeline on of last year that books

weighted tours So, half the through up definitely of weighted. the more half front of ramp the back cadence year than back will it's half so,

Operator

next Truist from question is Our Patrick Scholes with Securities.

Charles Scholes

back. A in talked kind enthusiastic I'm about the about seeing that seeing I and call seem not you're follow-up regard. surprised I'm you the question haven't Japanese Mark, very was coming customer return. or of wondering your here. conference Park on thoughts they Hotels what or

Mark Wang

Yes.

of So, on number good have at Hawaii, is in a basically from and owners our look, over business Mainland and the our our well fully recovery for we're I back. think pretty you the Mainland.Now, coming when from look buyers had we today, U.S. recovered owners 'XX new

a we're off strong there. and coming is, on buyers In to loyal back our owners the fact, that who very in the we've trailing buying had really basically back the to I've into come back about brand, Hawaii buy in made data and trailed Hawaii historical times, to still off so, levels we're still new of brand I've 'XX.Where we we're commitment to have down XX% are we're really said number this the point XX% used and to and

that's coming when 'XX and it's XX%, around you look when that's Now, the in new Hawaii buyer of still look at XX% you is better Japanese down market, level.And the about the the to than Japan back at recovery our market of traffic term. over for international the optimistic lot and look, now.So, Japanese tours in us be Japan, domestic a traveling a while for that long are Japan traveling, right the strong mainly we're the because from airports source business we will business the they're the

more until elsewhere. the they'll that back way more we and the It's 'XX about 'XX, anytime be expectations though, options weakness is and early just you right is recovery yen expectations, will Our less part Japanese issue.I is, probably is now. get into the that Hawaii back better or past year. a pandemic this for now, this get in of are than next back we year the think think there's of I full our them looking latter and to we're But travel this towards to

Charles Scholes

we less sort Hawaii a these would you acquisition, pre-Diamond of to your percentage it relevant that question or just hope then certainly overall as And acquisitions, percent sort of went of decreased think acquisitions? as both your here. comparable that about last so sort XX of should how sense. had number? was what back about When acquisition we makes like has because that If of is Hawaii exposure. pre-Bluegreen I related and far business, How XXXX think sounds be

Mark Wang

sense. bigger percentage was M&A Yes. actually, a did. That it the makes And X deals pre- we

in Japan and XX% just about right Hawaii but total, of is XX% at look it's XX% Japanese or the around of part you when today, So, that that. under

XX% business. So, the of a Japan part part of is it about our itself

So, it's come down materially.

Operator

There are closing floor no time. further to Wang any like the over back questions for at Mark this I'd comments. to hand

Mark Wang

thank All today. right. us Well, joining you, for everyone,

optimistic level acquiring wrap year XX our to and I'd hard what new this at owners all we've to months, of last guests.When like companies about the the X whole up, and think our thank and Before dedication service new their a business team Bluegreen Thank I setting accomplished achieved continued in partners and members you. speaking with the future members. you welcome a work for proud offer special the like of to you really the I'm next forward with family. industry, and also the time. of HGV most offerings, look in about new our we've Welcome I'm to again the team what HGV experiences and to together.I'd really to

Operator

today's This concludes conference call.

for You at may Thank time. disconnect this you your lines participation. your

Hilton Grand Vacations (HGV) 29 Feb 242023 Q4 Earnings call transcript