Marriott Vacations Worldwide ("MVW") Reports Second Quarter 2021 Financial Results

Financial Schedules Follow

MARRIOTT VACATIONS WORLDWIDE CORPORATION

FINANCIAL SCHEDULES

QUARTER 2, 2021

TABLE OF CONTENTS

Summary Financial Information and Adjusted EBITDA by Segment

A-1

Consolidated Statements of Income

A-2

Revenues and Profit by Segment

A-3

Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted

A-7

Adjusted EBITDA

A-8

Consolidated Contract Sales to Adjusted Development Profit

A-9

Vacation Ownership and Exchange & Third-Party Management Segment Adjusted EBITDA

A-10

Quarterly Operating Metrics

A-11

Non-GAAP Financial Measures

A-12

A-1

MARRIOTT VACATIONS WORLDWIDE CORPORATION

(In millions, except VPG, tours, total active members, average revenue per member and per share amounts)

(Unaudited)

SUMMARY FINANCIAL INFORMATION

Three Months Ended

Change %

Six Months Ended

Change %

June 30,
2021

June 30,
2020

June 30,
2021

June 30,
2020

Key Measures

Total consolidated contract sales

$

362

$

30

N/M

$

588

$

336

75%

VPG

$

4,304

$

3,717

16%

$

4,428

$

3,683

20%

Tours

79,900

6,216

N/M

125,771

85,347

47%

Total active members (000's)⁽¹⁾

1,321

1,571

(16%)

1,321

1,571

(16%)

Average revenue per member⁽¹⁾

$

46.36

$

30.17

54%

$

93.77

$

71.74

31%

GAAP Measures

Revenues

$

979

$

480

N/M

$

1,738

$

1,490

17%

Income (loss) before income taxes and
noncontrolling interests

$

35

$

(81)

N/M

$

(1)

$

(244)

N/M

Net income (loss) attributable to common
shareholders

$

6

$

(70)

N/M

$

(22)

$

(176)

88%

Earnings (loss) per share - diluted

$

0.15

$

(1.68)

N/M

$

(0.52)

$

(4.25)

88%

Non-GAAP Measures **

Adjusted EBITDA

$

164

$

(10)

N/M

$

233

$

128

82%

Adjusted pretax income (loss)

$

70

$

(78)

N/M

$

47

$

5

N/M

Adjusted net income (loss) attributable to
common shareholders

$

37

$

(72)

N/M

$

17

$

17

2%

Adjusted earnings (loss) per share - diluted

$

0.85

$

(1.76)

N/M

$

0.40

$

0.40

—%

ADJUSTED EBITDA BY SEGMENT

Three Months Ended

Change %

Six Months Ended

Change %

June 30,
2021

June 30,
2020

June 30,
2021

June 30,
2020

Vacation Ownership

$

182

$

N/M

$

250

$

128

94%

Exchange & Third-Party Management

37

19

94%

78

60

31%

Segment adjusted EBITDA**

219

—

N/M

328

188

74%

General and administrative

(56)

(13)

N/M

(95)

(64)

(49%)

Consolidated property owners' associations

1

3

N/M

—

4

N/M

Adjusted EBITDA**

$

$

(10)

N/M

$

233

$

128

82%

** Denotes non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-2

MARRIOTT VACATIONS WORLDWIDE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

REVENUES

Sale of vacation ownership products

$

296

$

53

$

459

$

311

Management and exchange

220

145

413

372

Rental

121

18

210

153

Financing

68

70

127

142

Cost reimbursements

274

194

529

512

TOTAL REVENUES

979

480

1,738

1,490

EXPENSES

Cost of vacation ownership products

67

23

107

83

Marketing and sales

164

49

273

219

Management and exchange

126

85

243

236

Rental

81

73

163

171

Financing

21

23

42

61

General and administrative

66

19

112

89

Depreciation and amortization

36

31

77

63

Litigation charges

3

—

6

2

Royalty fee

27

23

52

49

Impairment

5

1

5

96

Cost reimbursements

274

194

529

512

TOTAL EXPENSES

870

521

1,609

1,581

(Losses) gains and other (expense) income, net

(2)

14

4

(42)

Interest expense

(44)

(42)

(87)

(75)

Transaction and integration costs

(29)

(12)

(48)

(36)

Other

1

—

1

—

INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTERESTS

35

(81)

(1)

(244)

(Provision for) benefit from income taxes

(27)

19

(16)

77

NET INCOME (LOSS)

8

(62)

(17)

(167)

Net income attributable to noncontrolling interests

(2)

(8)

(5)

(9)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
SHAREHOLDERS

$

$

(70)

$

(22)

$

(176)

EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO
COMMON SHAREHOLDERS

Basic

$

0.15

$

(1.68)

$

(0.52)

$

(4.25)

Diluted

$

0.15

$

(1.68)

$

(0.52)

$

(4.25)

NOTE: Earnings (loss) per share - Basic and Earnings (loss) per share - Diluted are calculated using whole dollars.

A-3

MARRIOTT VACATIONS WORLDWIDE CORPORATION

REVENUES AND PROFIT BY SEGMENT

for the three months ended June 30, 2021

(In millions)

(Unaudited)

Reportable Segment

Corporate and
Other

Total

Vacation
Ownership

Exchange &
Third-Party
Management

REVENUES

Sales of vacation ownership products

$

296

$

—

$

—

$

296

Management and exchange⁽¹⁾

Ancillary revenues

52

1

—

53

Management fee revenues

39

9

(5)

43

Exchange and other services revenues

32

50

42

124

Management and exchange

123

60

37

220

Rental

110

11

—

121

Financing

68

—

—

68

Cost reimbursements⁽¹⁾

286

15

(27)

274

TOTAL REVENUES

$

883

$

86

$

10

$

979

PROFIT

Development⁽²⁾

$

65

$

—

$

—

$

65

Management and exchange⁽¹⁾

77

25

(8)

94

Rental⁽¹⁾

15

11

14

40

Financing

47

—

—

47

TOTAL PROFIT

204

36

6

246

OTHER

General and administrative

—

—

(66)

(66)

Depreciation and amortization

(23)

(9)

(4)

(36)

Litigation charges

(3)

—

—

(3)

Royalty fee

(27)

—

—

(27)

Impairment

—

—

(5)

(5)

Losses and other expense, net

—

—

(2)

(2)

Interest expense

—

—

(44)

(44)

Transaction and integration costs

(1)

—

(28)

(29)

Other

1

—

—

1

INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTERESTS

151

27

(143)

35

Provision for income taxes

—

—

(27)

(27)

NET INCOME (LOSS)

151

27

(170)

8

Net income attributable to noncontrolling interests⁽¹⁾

—

—

(2)

(2)

NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON SHAREHOLDERS

$

151

$

27

$

(172)

$

6

⁽¹⁾ Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the relevant accounting guidance, which represents the portion related to individual or third-party vacation ownership interest ("VOI") owners.

⁽²⁾ The Company previously used the term Development margin to refer to revenues from the Sale of vacation ownership products less the Cost of vacation ownership products and marketing and sales costs. Beginning in the first quarter of 2021, the Company now refers to this financial measure as Development profit. While the calculation remains unchanged, the Company believes the revised term better depicts the financial results being presented.

A-4

MARRIOTT VACATIONS WORLDWIDE CORPORATION

REVENUES AND PROFIT BY SEGMENT

for the three months ended June 30, 2020

(In millions)

(Unaudited)

Reportable Segment

Corporate
and Other

Total

Vacation
Ownership

Exchange &
Third-Party
Management

REVENUES

Sales of vacation ownership products

$

53

$

—

$

—

$

53

Management and exchange⁽¹⁾

Ancillary revenues

6

—

—

6

Management fee revenues

38

—

(5)

33

Exchange and other services revenues

29

39

38

106

Management and exchange

73

39

33

145

Rental

12

6

—

18

Financing

69

1

—

70

Cost reimbursements⁽¹⁾

198

12

(16)

194

TOTAL REVENUES

$

405

$

58

$

17

$

480

PROFIT

Development⁽²⁾

$

(19)

$

—

$

—

$

(19)

Management and exchange⁽¹⁾

51

13

(4)

60

Rental⁽¹⁾

(75)

5

15

(55)

Financing

46

1

—

47

TOTAL PROFIT

3

19

11

33

OTHER

General and administrative

—

—

(19)

(19)

Depreciation and amortization

(20)

(7)

(4)

(31)

Royalty fee

(23)

—

—

(23)

Impairment

(1)

—

—

(1)

Gains (losses) and other income (expense), net

5

(1)

10

14

Interest expense

—

—

(42)

(42)

Transaction and integration costs

—

—

(12)

(12)

(LOSS) INCOME BEFORE INCOME TAXES AND
NONCONTROLLING INTERESTS

(36)

11

(56)

(81)

Benefit from income taxes

—

—

19

19

NET (LOSS) INCOME

(36)

11

(37)

(62)

Net income attributable to noncontrolling interests⁽¹⁾

—

—

(8)

(8)

NET (LOSS) INCOME ATTRIBUTABLE TO
COMMON SHAREHOLDERS

$

(36)

$

11

$

(45)

$

(70)

⁽¹⁾ Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the relevant accounting guidance, which represents the portion related to individual or third-party vacation ownership interest ("VOI") owners.

⁽²⁾ The Company previously used the term Development margin to refer to revenues from the Sale of vacation ownership products less the Cost of vacation ownership products and marketing and sales costs. Beginning in the first quarter of 2021, the Company now refers to this financial measure as Development profit. While the calculation remains unchanged, the Company believes the revised term better depicts the financial results being presented.

A-5

MARRIOTT VACATIONS WORLDWIDE CORPORATION

REVENUES AND PROFIT BY SEGMENT

for the six months ended June 30, 2021

(In millions)

(Unaudited)

Reportable Segment

Corporate and
Other

Total

Vacation
Ownership

Exchange &
Third-Party
Management

REVENUES

Sales of vacation ownership products

$

459

$

—

$

—

$

459

Management and exchange⁽¹⁾

Ancillary revenues

80

1

—

81

Management fee revenues

77

14

(11)

80

Exchange and other services revenues

60

105

87

252

Management and exchange

217

120

76

413

Rental

187

23

—

210

Financing

127

—

—

127

Cost reimbursements⁽¹⁾

554

29

(54)

529

TOTAL REVENUES

$

1,544

$

172

$

22

$

1,738

PROFIT

Development⁽²⁾

$

79

$

—

$

—

$

79

Management and exchange⁽¹⁾

136

54

(20)

170

Rental⁽¹⁾

(4)

23

28

47

Financing

85

—

—

85

TOTAL PROFIT

296

77

8

381

OTHER

General and administrative

—

—

(112)

(112)

Depreciation and amortization

(42)

(29)

(6)

(77)

Litigation charges

(6)

—

—

(6)

Restructuring

(1)

—

1

—

Royalty fee

(52)

—

—

(52)

Gains and other income, net

—

—

4

4

Interest expense

—

—

(87)

(87)

Transaction and integration costs

(1)

—

(47)

(48)

Other

1

—

—

1

INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTERESTS

195

48

(244)

(1)

Benefit from income taxes

—

—

(16)

(16)

NET INCOME (LOSS)

195

48

(260)

(17)

Net income attributable to noncontrolling interests⁽¹⁾

—

—

(5)

(5)

NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON SHAREHOLDERS

$

195

$

48

$

(265)

$

(22)

⁽¹⁾ Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the relevant accounting guidance, which represents the portion related to individual or third-party vacation ownership interest ("VOI") owners.

⁽²⁾ The Company previously used the term Development margin to refer to revenues from the Sale of vacation ownership products less the Cost of vacation ownership products and marketing and sales costs. Beginning in the first quarter of 2021, the Company now refers to this financial measure as Development profit. While the calculation remains unchanged, the Company believes the revised term better depicts the financial results being presented.

A-6

MARRIOTT VACATIONS WORLDWIDE CORPORATION

REVENUES AND PROFIT BY SEGMENT

for the six months ended June 30, 2020

(In millions)

(Unaudited)

Reportable Segment

Corporate and
Other

Total

Vacation
Ownership

Exchange &
Third-Party
Management

REVENUES

Sales of vacation ownership products

$

311

$

—

$

—

$

311

Management and exchange⁽¹⁾

Ancillary revenues

52

1

—

53

Management fee revenues

76

10

(9)

77

Exchange and other services revenues

57

100

85

242

Management and exchange

185

111

76

372

Rental

134

19

—

153

Financing

140

2

—

142

Cost reimbursements⁽¹⁾

543

33

(64)

512

TOTAL REVENUES

$

1,313

$

165

$

12

$

1,490

PROFIT

Development⁽²⁾

$

9

$

—

$

—

$

9

Management and exchange⁽¹⁾

107

45

(16)

136

Rental⁽¹⁾

(60)

13

29

(18)

Financing⁽³⁾

80

1

—

81

TOTAL PROFIT

136

59

13

208

OTHER

General and administrative

—

—

(89)

(89)

Depreciation and amortization

(41)

(16)

(6)

(63)

Litigation charges

(2)

—

—

(2)

Royalty fee

(49)

—

—

(49)

Impairment

(5)

(91)

—

(96)

Gains and other income, net

6

—

(48)

(42)

Interest expense

—

—

(75)

(75)

Transaction and integration costs

(3)

—

(33)

(36)

INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTERESTS

42

(48)

(238)

(244)

Benefit from income taxes

—

—

77

77

NET INCOME (LOSS)

42

(48)

(161)

(167)

Net income attributable to noncontrolling interests⁽¹⁾

—

—

(9)

(9)

NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON SHAREHOLDERS

$

42

$

(48)

$

(170)

$

(176)

⁽¹⁾ Amounts included in Corporate and other represent the impact of the consolidation of certain owners' associations under the relevant accounting guidance, which represents the portion related to individual or third-party vacation ownership interest ("VOI") owners.

⁽²⁾ The Company previously used the term Development margin to refer to revenues from the Sale of vacation ownership products less the Cost of vacation ownership products and marketing and sales costs. Beginning in the first quarter of 2021, the Company now refers to this financial measure as Development profit. While the calculation remains unchanged, the Company believes the revised term better depicts the financial results being presented.

⁽³⁾ Includes a $10 million impact related to increased bad debt expense recorded in the six months ended June 30, 2020 related to the COVID-19 pandemic.

A-7

MARRIOTT VACATIONS WORLDWIDE CORPORATION

ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND

ADJUSTED EARNINGS PER SHARE - DILUTED

(In millions, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Net income (loss) attributable to common shareholders

$

6

$

(70)

$

(22)

$

(176)

Provision for (benefit from) income taxes

27

(19)

16

(77)

Income (loss) before income taxes attributable to common
shareholders

33

(89)

(6)

(253)

Certain items:⁽¹⁾

Litigation charges

3

—

6

2

Losses (gains) and other expense (income), net

2

(14)

(4)

42

Transaction and integration costs

29

12

48

36

Impairment charges

5

1

5

96

Purchase price adjustments⁽²⁾ 

2

14

2

30

Other⁽³⁾

(4)

(2)

(4)

52

Adjusted pretax income (loss) **

70

(78)

47

5

(Provision for) benefit from income taxes

(33)

6

(30)

12

Adjusted net income (loss) attributable to common
shareholders**

$

37

$

(72)

$

17

$

17

Diluted shares

43.8

41.2

43.0

41.4

Adjusted earnings (loss) per share - Diluted **

$

0.85

$

(1.76)

$

0.40

$

0.40

** Denotes non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information about our reasons for providing these alternative financial measures and limitations on their use.

⁽¹⁾ See further details on A-8.

⁽²⁾ Includes certain items included in depreciation and amortization.

⁽³⁾ 2021 amounts include eliminating the impact of consolidating property owners' associations.

A-8

MARRIOTT VACATIONS WORLDWIDE CORPORATION

ADJUSTED EBITDA

(In millions)

(Unaudited)

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
SHAREHOLDERS

$

6

$

(70)

$

(22)

$

(176)

Interest expense

44

42

87

75

Provision for (benefit from) income taxes

27