Marriott Vacations Worldwide Corporation (VAC) has reported 38.07 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $33.70 million, or $1.21 a share in the quarter, compared with $24.41 million, or $0.82 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $34 million, or $1.22 a share compared with $25.70 million or $0.87 a share, a year ago.
Revenue during the quarter grew 16.30 percent to $487.49 million from $419.17 million in the previous year period.
Cost of revenue rose 13.70 percent or $25.07 million during the quarter to $208.08 million. Gross margin for the quarter expanded 98 basis points over the previous year period to 57.32 percent.
However, the adjusted EBITDA for the quarter stood at $62.07 million compared with $51.59 million in the prior year period. At the same time, adjusted EBITDA margin improved 43 basis points in the quarter to 12.73 percent from 12.31 percent in the last year period.
Revenue from real estate activities during the quarter increased 17.72 percent or $38.75 million to $257.41 million. Revenue from sale of real estate was $172.16 million for the quarter, up 24.42 percent or $33.79 million.
Income from operating leases during the quarter rose 6.19 percent or $4.97 million to $85.26 million.
Other income during the quarter was $32.11 million, up 9.88 percent or $2.89 million from year-ago period.
"I couldn't be more pleased with our start to 2017. In the first quarter, adjusted EBITDA grew over 20 percent to over $62 million, and contract sales, on a year-over-year comparable basis, grew nearly 16 percent," said Stephen P. Weisz, president and chief executive officer.
Operating cash flow improves significantly
Marriott Vacations Worldwide Corporation has generated cash of $45.70 million from operating activities during the quarter, up 362.68 percent or $35.83 million, when compared with the last year period. The company has spent $13.25 million cash to meet investing activities during the quarter as against cash outgo of $6.32 million in the last year period. It has incurred net capital expenditure of $5.05 million on net basis during the quarter, down 20.06 percent or $1.27 million from year ago period.
The company has spent $81.23 million cash to carry out financing activities during the quarter as against cash outgo of $90.67 million in the last year period.
Real estate inventory stood at $692.76 million as on Mar. 31, 2017. Net receivables were at $1,124.77 million as on Mar. 31, 2017, up 8.14 percent or $84.64 million from year-ago. Accounts payable declined 10.35 percent or $8.34 million to $72.28 million on Mar. 31, 2017.
Total assets went up marginally by 0.66 percent or $15.39 million to $2,346.17 million on Mar. 31, 2017. On the other hand, total liabilities were almost stable over the past one year at $1,412.92 million on Mar. 31, 2017.
Return on assets moved up 34 basis points to 1.47 percent in the quarter. At the same time, return on equity moved up 96 basis points to 3.61 percent in the quarter.
Debt remains almost stable
Total debt was at $683.77 million as on Mar. 31, 2017, down 0.79 percent or $5.47 million from year-ago. Shareholders equity stood at $933.25 million as on Mar. 31, 2017, up 1.55 percent or $14.22 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.73 percent in the quarter.
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