NYSE$HGV

Hilton Grand Vacations Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Hilton Grand Vacations executed on key initiatives within its strategic priorities.

Hilton Grand Vacations focused on streamlining spending, protecting recurring revenue streams, growing demand, and safeguarding its liquidity position. The company implemented enhanced care guidelines, executed a term securitization, expanded virtual sales, and reopened properties. They also amended credit agreements and launched targeted offers to members.

  • Implemented HGV Enhanced Care Guidelines to protect owners, guests, and team members.
  • Executed a $300 million term securitization at favorable terms to bolster liquidity.
  • Expanded virtual sales and work-from-home capabilities.
  • Launched sales of new Maui Bay Villas project.

Headline financials

Total Revenue

$123M

Previous: $454M-72.9%
EPS (adj)

-$0.56

Previous: $0.43-230.2%
Capital Expenditures

-$4M

Previous: -$17M+76.5%
Free Cash Flow

-$51.8M

Previous: $21.6M-339.3%
Net Income

-$47.8M

Previous: $38.6M-223.6%
Operating Income

$101M

Previous: $425M-76.2%
Gross Profit

$123M

Previous: $454M-72.9%
Cash & Equivalents

$733M

Previous: $120M+510.8%
Total Assets

$3.64B

Previous: $2.99B+21.6%
Stock-Based Comp

$6M

Previous: $7M-14.3%

Revenue & EPS history

Hilton Grand Vacations · Revenue · Quarterly

$123M

Q2 2020-72.9%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Future bookings continue to show a desire to travel, with club and owner arrivals, marketing and sampler package arrivals, and rental arrivals showing positive trends.

Tailwinds

  • 6 month forward arrivals at 91% of prior year levels
  • Q1 ‘21 trend shows improvement, up 31% vs. prior year
  • Strong and steady 400k+ package pipeline
  • 92% of packages have not yet booked
  • Demand for vacation packages has continued through pandemic

Headwinds

  • More than 50% of Q4 bookings change due to NY and HI adjustments
  • 6mo forward arrivals at 70% of prior year levels
  • Requests Per Week Cumulative Deferral Requests
  • High-touch surfaces were constantly being cleaned everywhere, including pool gates and pool entry ladders.
  • Pool chairs and tables were sprayed and disinfected between each guest.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-0.1%

Avg return

30 days after

46%

19 / 41 earnings

Positive

+18.1%

Q3 2018

Best reaction

-19.1%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.2%+7.1%+19.9%
Q4 2025-3.7%-8.8%-22.1%
Q3 2025-6.7%-8.1%-3.0%
Q1 2025+9.3%+12.4%+13.5%
Q4 2024+4.9%+1.2%-7.8%
Q3 2024+5.9%+7.5%+4.1%
Q2 2024-10.2%-8.5%-5.3%
Q1 2024-2.9%-2.3%-6.8%
Q4 2023-7.2%-8.9%-2.9%
Q3 2023-6.9%-9.7%-0.8%
Q2 2023-2.8%+1.5%-2.3%
Q1 2023-2.8%-0.2%+2.5%
Q4 2022+0.3%+5.2%-6.9%
Q3 2022+17.9%+14.5%+9.8%
Q2 2022+1.6%+4.6%-7.1%
Q1 2022+2.0%+1.5%+9.1%
Q4 2021-1.4%-6.5%+0.3%
Q3 2021-3.3%-5.5%-6.1%
Q2 2021+0.5%-1.2%+6.8%
Q1 2021+0.1%+0.8%+2.7%
Q4 2020+2.4%+2.6%-5.1%
Q3 2020-0.4%+12.2%+37.8%
Q2 2020-0.8%+1.6%+13.9%
Q1 2020-9.2%-16.2%+2.9%
Q4 2019-2.1%-5.3%-36.5%
Q3 2019+2.4%+4.0%+0.4%
Q2 2019-19.1%-19.4%+3.3%
Q1 2019-6.4%-6.4%-20.7%
Q4 2018-1.9%+2.8%-4.8%
Q3 2018+18.1%+12.7%+19.2%
Q2 2018-0.2%-1.9%-5.6%
Q1 2018-4.1%-7.0%-6.0%
Q4 2015+3.0%+5.3%-0.3%
Q4 2017+0.7%+3.2%+0.0%
Q3 2016-0.7%+2.2%-3.3%
Q3 2017-0.8%-0.5%-3.1%
Q2 2016+0.0%-1.2%+1.0%
Q2 2017+0.7%-1.0%-0.1%
Q1 2016+5.9%+6.4%+5.8%
Q1 2017+3.4%+1.9%+3.7%
Q4 2016+1.4%-0.8%-4.3%
Q3 2015
Q2 2015
Q1 2015

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