PR Newswire | Nov 8, 2021 06:01AM EST

Results

11/08 05:00 CST

Marriott Vacations Worldwide ("MVW") Reports Third Quarter 2021 Financial Results ORLANDO, Fla., November 8, 2021

ORLANDO, Fla., November 8, 2021 /PRNewswire/ -- Marriott Vacations Worldwide Corporation (NYSE: VAC) today reported third quarter 2021 financial results.

"Occupancies at our resorts this quarter were very strong despite the Delta variant and contract sales were within 3% of 2019 levels, driving 25% sequential growth in Adjusted EBITDA and exceeding 2019 for the first time since the pandemic began," said Stephen P. Weisz, chief executive officer. "First time buyers represented more than 30% of contract sales in the third quarter, which is important for the long-term health of the system. The fourth quarter has started well with October contract sales above 2019 levels and reservations on the books for the first half of next year are already strong."

Third Quarter 2021 Highlights and Operational Update:

* Consolidated Vacation Ownership contract sales totaled $380 million in the third quarter of 2021, with VPG 24% higher than the third quarter of 2019. * Net income attributable to common shareholders was $10 million, or $0.23 fully diluted earnings per share. * Adjusted net income attributable to common shareholders was $70 million and adjusted fully diluted earnings per share was $1.60. * Adjusted EBITDA increased 25% on a sequential basis to $205 million in the third quarter of 2021, 8% higher than the third quarter of 2019. * Adjusted EBITDA margin (excluding cost reimbursements) was 27%, the Company's highest quarterly Adjusted EBITDA margin as a stand alone public company.

* During the quarter, the Company's Board of Directors authorized a share repurchase program of up to $250 million and declared a quarterly cash dividend of $0.54 per share of common stock, which was paid in October 2021. * In September, the Company repaid the remaining $250 million of its 6.50% Senior Unsecured Notes due 2026 and, subsequent to the end of the quarter, repaid $250 million of its 6.125% Senior Secured Notes due 2025. * With recovery in the business expected to continue, the Company projects contract sales of $385 million to $405 million in the fourth quarter of 2021.

Third Quarter 2021 Segment Results

Vacation Ownership

Revenues excluding cost reimbursements increased 123% in the third quarter of 2021 compared to the prior year and increased 8% from the second quarter of 2021 as the business continued to recover. Compared to the second quarter, revenue from the sale of vacation ownership products increased 12% and Development profit margin increased to 28%. Excluding the impact of revenue reportability, Adjusted development profit increased sequentially to $98 million, with Adjusted development profit margin increasing nearly 335 basis points to 30%.

Vacation Ownership segment financial results were $185 million in the third quarter of 2021 and segment Adjusted EBITDA increased 18% on a sequential basis to $215 million, with Adjusted EBITDA margin nearly 360 basis points higher than third quarter 2019.

Exchange & Third-Party Management

Revenues excluding cost reimbursements increased 12% in the third quarter of 2021 compared to the prior year. Interval International active members declined 1% compared to the second quarter of 2021 to 1.3 million and Average revenue per member declined 7% sequentially.

Exchange & Third-Party Management segment financial results were $23 million in the third quarter of 2021 and segment Adjusted EBITDA declined $2 million sequentially to $35 million, with Adjusted EBITDA margin approximately 240 basis points higher than 2019.

Corporate and Other

General and administrative costs increased $22 million in the third quarter of 2021 compared to the prior year as a result of higher salary and wages costs as the prior year quarter benefited from savings related to programs implemented in response to the impact of the COVID-19 pandemic, higher bonus expense, and a decrease in credits related to incentives under the CARES Act.

Balance Sheet and Liquidity

On September 30, 2021, cash and cash equivalents totaled $448 million.

The Company had $4.4 billion in debt outstanding, net of unamortized debt issuance costs, at the end of the third quarter of 2021. This included $2.8 billion of corporate debt and $1.6 billion of non-recourse debt related to its securitized notes receivable.

In September, the Company repaid the remaining $250 million of its 6.50% Senior Unsecured Notes due 2026 and, subsequent to the end of the quarter, repaid $250 million of its 6.125% Senior Secured Notes due 2025. Pro forma, the Company ended the quarter with more than $1.0 billion of liquidity.

During the quarter, the Company's Board of Directors authorized a share repurchase program of up to $250 million and declared a quarterly cash dividend of $0.54 per share of common stock, which was paid in October 2021.

Non-GAAP Financial Information

Non-GAAP financial measures, such as Adjusted net income or loss attributable to common shareholders, Adjusted EBITDA, Adjusted fully diluted earnings or loss per share, Adjusted development profit, Adjusted development profit margin, and other adjusted financial measures, are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow.

Third Quarter 2021 Financial Results Conference Call

The Company will hold a conference call on November 8, 2021 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company's website.

###

About Marriott Vacations Worldwide Corporation

Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services. The Company has nearly 120 resorts and approximately 700,000 Owners and Members in a diverse portfolio that includes seven vacation ownership brands. It also includes exchange networks and membership programs comprised of 3,200 resorts in over 90 nations, as well as management of more than 150 other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.

Note on forward-looking statements

This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements about expectations for business recovery and contract sales in the fourth quarter, that are not historical facts. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: the effects of the COVID-19 pandemic, including reduced demand for vacation ownership and exchange products and services, volatility in the international and national economy and credit markets, worker absenteeism, quarantines or other government-imposed travel or health-related restrictions; the length and severity of the COVID-19 pandemic, including its short and longer-term impact on the demand for travel and on consumer confidence; the impact of the availability and distribution of effective vaccines on the demand for travel and consumer confidence; the effectiveness of available vaccines against variants of the virus, including the Delta variant; the pace of recovery following the COVID-19 pandemic or as effective treatments or vaccines become widely available; competitive conditions; the availability of capital to finance growth; the effects of steps we have taken and may continue to take to reduce operating costs and/or enhance health and cleanliness protocols at our resorts due to the COVID-19 pandemic; political or social strife, and other matters referred to under the heading "Risk Factors" contained herein and also in our most recent Annual Report on Form 10-K, and which may be discussed in our periodic filings with the U.S. Securities and Exchange Commission (the "SEC"), any of which could cause actual results to differ materially from those expressed or implied herein. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. These statements are made as of the date of issuance and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Financial Schedules Follow

MARRIOTT VACATIONS WORLDWIDE CORPORATION FINANCIAL SCHEDULES QUARTER 3, 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 A-7 Per Share - Diluted

Adjusted EBITDA A-8

Consolidated Contract Sales to Adjusted Development Profit A-9

Vacation Ownership and Exchange & Third-Party Management Segment Adjusted A-10EBITDA

Consolidated Balance Sheets A-11

Consolidated Statements of Cash Flows A-12

Quarterly Operating Metrics A-13

Non-GAAP Financial Measures A-14

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 ChangeNine Months Ended Change SeptemberSeptember % September September % 30, 2021 30, 2020 30, 2021 30, 2020

Key Measures

Total consolidated contract sales $ 380 $ 140 171% $ 968 $ 476 103%

VPG $ 4,300$ 3,904 10% $ 4,377 $ 3,745 17%

Tours 84,098 33,170 154% 209,869 118,517 77%

Total active members (000's)^(1) 1,313 1,536 (15%) 1,313 1,536 (15%)

Average revenue per member^(1) $ 42.95$ 36.76 17% $ 136.57 $ 108.44 26%



GAAP Measures

Revenues $ 1,052$ 649 62% $ 2,790 $ 2,139 30%

Income (loss) before income taxes and $ 58 $ (72) NM $ 57 $ (316) NM noncontrolling interests

Net income (loss) attributable to common $ 10 $ (62) NM $ (12) $ (238) NM shareholders

Earnings (loss) per share - diluted $ 0.23 $ (1.51) NM $ (0.28) $ (5.76) NM



Non-GAAP Measures **

Adjusted EBITDA $ 205 $ 35 NM $ 438 $ 163 NM

Adjusted pretax income (loss) $ 118 $ (28) NM $ 165 $ (23) NM

Adjusted net income (loss) attributable to $ 70 $ (33) NM $ 87 $ (16) NM common shareholders

Adjusted earnings (loss) per share - diluted$ 1.60 $ (0.81) NM $ 2.01 $ (0.40) NM



^(1) Includes members at the end of each period for the Interval International exchange network only.

ADJUSTED EBITDA BY SEGMENT



Three Months Ended Nine Months Ended ChangeChange SeptemberSeptember% SeptemberSeptember% 30, 2021 30, 2020 30, 2021 30, 2020

Vacation Ownership $ 215$ 28 NM $ 465$ 156NM

Exchange & Third-Party Management 35 31 13% 113 91 25%

Segment adjusted EBITDA** 250 59 NM 578 247 134%

General and administrative (45) (27) NM (140) (91) NM

Consolidated property owners' associations- 3 NM - 7 NM

Adjusted EBITDA** $ 205$ 35 NM $ 438$ 163NM



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

NM - Not meaningful

A-2



MARRIOTT VACATIONS WORLDWIDE CORPORATION



CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited)



Three Months Ended Nine Months Ended

SeptemberSeptemberSeptemberSeptember 30, 2021 30, 2020 30, 2021 30, 2020

REVENUES

Sale of vacation ownership products $ 330 $ 98 $ 789 $ 409

Management and exchange 225 176 638 548

Rental 130 56 340 209

Financing 69 64 196 206

Cost reimbursements 298 255 827 767

TOTAL REVENUES 1,052 649 2,790 2,139

EXPENSES

Cost of vacation ownership products 71 27 178 110

Marketing and sales 166 78 439 297

Management and exchange 138 106 381 342

Rental 84 74 247 245

Financing 22 24 64 85

General and administrative 54 32 166 121

Depreciation and amortization 35 30 112 93

Litigation charges 2 2 8 4

Restructuring - 20 - 20

Royalty fee 26 23 78 72

Impairment - 2 5 98

Cost reimbursements 298 255 827 767

TOTAL EXPENSES 896 673 2,505 2,254

Losses and other expense, net (31) - (27) (42)

Interest expense (41) (37) (128) (112)

Transaction and integration costs (27) (11) (75) (47)

Other 1 - 2 -

INCOME (LOSS) BEFORE INCOME TAXES AND 58 (72) 57 (316) NONCONTROLLING INTERESTS

(Provision for) benefit from income taxes (47) 14 (63) 91

NET INCOME (LOSS) 11 (58) (6) (225)

Net income attributable to noncontrolling interests(1) (4) (6) (13)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON $ 10 $ (62) $ (12) $ (238) SHAREHOLDERS



EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS

Basic $ 0.24$ (1.51)$ (0.28)$ (5.76)

Diluted $ 0.23$ (1.51)$ (0.28)$ (5.76)



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

A-3



MARRIOTT VACATIONS WORLDWIDE CORPORATION



REVENUES AND PROFIT BY SEGMENT for the three months ended September 30, 2021 (In millions) (Unaudited)



Reportable Segment Corporate and Vacation Exchange & Other Total OwnershipThird-Party Management

REVENUES

Sales of vacation ownership products $ 330$ - $ - $330

Management and exchange^(1)

Ancillary revenues 55 1 - 56

Management fee revenues 40 10 (4) 46

Exchange and other services revenues 31 48 44 123

Management and exchange 126 59 40 225

Rental 121 9 - 130

Financing 69 - - 69

Cost reimbursements^(1) 328 9 (39) 298

TOTAL REVENUES $ 974$ 77$ 1 $1,052



PROFIT

Development^(2) $ 93 $ - $ - $93

Management and exchange^(1) 71 26 (10) 87

Rental^(1) 24 9 13 46

Financing 47 - - 47

TOTAL PROFIT 235 35 3 273



OTHER

General and administrative - - (54) (54)

Depreciation and amortization (24) (11) - (35)

Litigation charges (1) - (1) (2)

Restructuring 1 (1) - -

Royalty fee (26) - - (26)

Losses and other expense, net - - (31) (31)

Interest expense - - (41) (41)

Transaction and integration costs (1) - (26) (27)

Other 1 - - 1

INCOME (LOSS) BEFORE INCOME TAXES AND 185 23 (150) 58 NONCONTROLLING INTERESTS

Provision for income taxes - - (47) (47)

NET INCOME (LOSS) 185 23 (197) 11

Net income attributable to noncontrolling interests^(1)- - (1) (1)

NET INCOME (LOSS) ATTRIBUTABLE TO $ 185$ 23$ (198) $10 COMMON SHAREHOLDERS

^(1) Amounts included in Corporate and other represent the impact of theconsolidation of certain owners' associations under the relevant accountingguidance, which represents the portion related to individual or third-partyvacation ownership interest ("VOI") owners.

^(2) The Company previously used the term Development margin to refer torevenues from the Sale of vacation ownership products less the Cost of vacationownership products and marketing and sales costs. Beginning in the firstquarter of 2021, the Company now refers to this financial measure asDevelopment profit. While the calculation remains unchanged, the Companybelieves 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 September 30, 2020 (In millions) (Unaudited)



Reportable Segment Corporate and Vacation Exchange & Other Total OwnershipThird-Party Management

REVENUES

Sales of vacation ownership products $ 98 $ - $ - $98

Management and exchange^(1)

Ancillary revenues 17 - - 17

Management fee revenues 37 4 (5) 36

Exchange and other services revenues 28 45 50 123

Management and exchange 82 49 45 176

Rental 46 10 - 56

Financing 64 - - 64

Cost reimbursements^(1) 281 12 (38) 255

TOTAL REVENUES $ 571$ 71$ 7 $649



PROFIT

Development^(2) $ (7)$ - $ - $(7)

Management and exchange^(1) 55 22 (7) 70

Rental^(1) (40) 8 14 (18)

Financing 40 - - 40

TOTAL PROFIT 48 30 7 85



OTHER

General and administrative - - (32) (32)

Depreciation and amortization (20) (8) (2) (30)

Litigation charges (2) - - (2)

Restructuring (11) (3) (6) (20)

Royalty fee (23) - - (23)

Impairment (1) (1) - (2)

Gains (losses) and other income (expense), net 6 (5) (1) -

Interest expense - - (37) (37)

Transaction and integration costs[ ] - - (11) (11)

(LOSS)^ INCOME BEFORE INCOME TAXES AND (3) 13 (82) (72) NONCONTROLLING INTERESTS[ ]

Benefit from income taxes[ ] - - 14 14

NET (LOSS) INCOME (3) 13 (68) (58)

Net income attributable to noncontrolling interests^(1)[ - - (4) (4) ]

NET (LOSS) INCOME^ ATTRIBUTABLE TO $ (3)$ 13$ (72) $(62)COMMON SHAREHOLDERS

^(1) Amounts included in Corporate and other represent the impact of theconsolidation of certain owners' associations under the relevant accountingguidance, which represents the portion related to individual or third-partyvacation ownership interest ("VOI") owners.

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

A-5



MARRIOTT VACATIONS WORLDWIDE CORPORATION



REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2021 (In millions) (Unaudited)



Reportable Segment Corporate and Vacation Exchange & Other Total OwnershipThird-Party Management

REVENUES

Sales of vacation ownership products $ 789 $ - $ - $789

Management and exchange^(1)

Ancillary revenues 135 2 - 137

Management fee revenues 117 24 (15) 126

Exchange and other services revenues 91 153 131 375

Management and exchange 343 179 116 638

Rental 308 32 - 340

Financing 196 - - 196

Cost reimbursements^(1) 882 38 (93) 827

TOTAL REVENUES $ 2,518$ 249$ 23 $2,790



PROFIT

Development^(2) $ 172 $ - $ - $172

Management and exchange^(1) 207 80 (30) 257

Rental^(1) 20 32 41 93

Financing 132 - - 132

TOTAL PROFIT 531 112 11 654



OTHER

General and administrative - - (166) (166)

Depreciation and amortization (66) (40) (6) (112)

Litigation charges (7) - (1) (8)

Restructuring - (1) 1 -

Royalty fee (78) - - (78)

Impairment - - (5) (5)

Gains and other income, net - - (27) (27)

Interest expense - - (128) (128)

Transaction and integration costs (2) - (73) (75)

Other[ ] 2 - - 2

INCOME (LOSS) BEFORE INCOME TAXES AND 380 71 (394) 57 NONCONTROLLING INTERESTS

Benefit from income taxes - - (63) (63)

NET INCOME (LOSS) 380 71 (457) (6)

Net income attributable to noncontrolling interests^(1)- - (6) (6)

NET INCOME (LOSS) ATTRIBUTABLE TO $ 380 $ 71 $ (463) $(12) COMMON SHAREHOLDERS

^(1) Amounts included in Corporate and other represent the impact of theconsolidation of certain owners' associations under the relevant accountingguidance, which represents the portion related to individual or third-partyvacation ownership interest ("VOI") owners.

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

A-6



MARRIOTT VACATIONS WORLDWIDE CORPORATION



REVENUES AND PROFIT BY SEGMENT for the nine months ended September 30, 2020 (In millions) (Unaudited)



Reportable Segment Corporate and Vacation Exchange & Other Total OwnershipThird-Party Management

REVENUES

Sales of vacation ownership products $ 409 $ - $ - $409

Management and exchange^(1)

Ancillary revenues 69 1 - 70

Management fee revenues 113 14 (14) 113

Exchange and other services revenues 85 145 135 365

Management and exchange 267 160 121 548

Rental 180 29 - 209

Financing 204 2 - 206

Cost reimbursements^(1) 824 45 (102) 767

TOTAL REVENUES $ 1,884$ 236 $ 19 $2,139



PROFIT

Development^(2) $ 2 $ - $ - $2

Management and exchange^(1) 162 67 (23) 206

Rental^(1) (100) 21 43 (36)

Financing^(3) 120 1 - 121

TOTAL PROFIT 184 89 20 293



OTHER

General and administrative - - (121) (121)

Depreciation and amortization (61) (24) (8) (93)

Litigation charges (4) - - (4)

Restructuring (11) (3) (6) (20)

Royalty fee (72) - - (72)

Impairment (6) (92) - (98)

Gains (losses) and other income (expense), net 12 (5) (49) (42)

Interest expense - - (112) (112)

Transaction and integration costs[ ] (3) - (44) (47)

INCOME (LOSS) BEFORE INCOME TAXES AND 39 (35) (320) (316) NONCONTROLLING INTERESTS

Benefit from income taxes - - 91 91

NET INCOME (LOSS) 39 (35) (229) (225)

Net income attributable to noncontrolling interests^(1)[ - - (13) (13) ]

NET INCOME (LOSS) ATTRIBUTABLE TO $ 39 $ (35)$ (242) $(238)COMMON SHAREHOLDERS

^(1) Amounts included in Corporate and other represent the impact of theconsolidation of certain owners' associations under the relevant accountingguidance, which represents the portion related to individual or third-partyvacation ownership interest ("VOI") owners.

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

^(3) Includes a $10 million impact related to increased bad debt expenserecorded in the nine months ended September 30, 2020 related to the COVID-19pandemic.

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 Nine Months Ended

SeptemberSeptemberSeptemberSeptember 30, 2021 30, 2020 30, 2021 30, 2020

Net income (loss) attributable to common shareholders $ 10 $ (62) $ (12)$ (238)

Provision for (benefit from) income taxes 47 (14) 63 (91)

Income (loss) before income taxes attributable to common57 (76) 51 (329) shareholders

Certain items:^(1)

Litigation charges 2 2 8 4

Losses and other expense, net 31 - 27 42

Transaction and integration costs 27 11 75 47

Impairment charges - 2 5 98

Purchase price adjustments^(2) 5 17 7 47

COVID-19 related adjustments - 16 (2) 64

Other^(3) (4) - (6) 4

Adjusted pretax income (loss) ** 118 (28) 165 (23)

(Provision for) benefit from income taxes (48) (5) (78) 7

Adjusted net income (loss) attributable to common $ 70 $ (33) $ 87 $ (16) shareholders**

Diluted shares 43.7 41.2 43.2 41.3

Adjusted earnings (loss) per share - Diluted ** $ 1.60$ (0.81)$ 2.01$ (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 for the three and nine months ended September 30, 2020.

^(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 Nine Months Ended

SeptemberSeptemberSeptemberSeptember 30, 2021 30, 2020 30, 2021 30, 2020

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON $10 $(62) $(12) $(238) SHAREHOLDERS

Interest expense 41 37 128 112

Provision for (benefit from) income taxes 47 (14) 63 (91)

Depreciation and amortization 35 30 112 93

Share-based compensation 11 11 33 24

Certain items before income taxes:

Litigation charges 2 2 8 4

Losses and other expense, net:

Dispositions - (1) - (1)

Hurricane business interruption insurance claims - - - (4)

Various tax related matters (8) - (6) 26

Redemption premium from debt repayment 36 - 36 -

Foreign currency translation 2 1 (4) 25

Other 1 - 1 (4)

Transaction and integration costs 27 11 75 47

Impairment charges - 2 5 98

Purchase price adjustments 5 2 7 4

COVID-19 related adjustments:

Sales reserve adjustment, net - - - 37

Accrual for health and welfare costs for furloughed- (4) (2) 7 associates

Restructuring - 20 - 20

Other^(1) (4) - (6) 4

ADJUSTED EBITDA** $205 $35 $438 $163

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

^(1) 2021 amounts include eliminating the impact of consolidating propertyowners' associations.

A-9



MARRIOTT VACATIONS WORLDWIDE CORPORATION



CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT (In millions) (Unaudited)



Three Months Ended Nine Months Ended

SeptemberSeptemberSeptemberSeptember 30, 2021 30, 2020 30, 2021 30, 2020

Consolidated contract sales $ 380$ 140$ 968$ 476

Less resales contract sales (7) (1) (19) (9)

Consolidated contract sales, net of resales 373 139 949 467

Plus:

Settlement revenue 8 4 21 12

Resales revenue 5 1 8 6

Revenue recognition adjustments:

Reportability 2 (18) (51) 48

Sales reserve (31) (10) (73) (90)

Other^(1) (27) (18) (65) (34)

Sale of vacation ownership products 330 98 789 409

Less:

Cost of vacation ownership products (71) (27) (178) (110)

Marketing and sales (166) (78) (439) (297)

Development Profit 93 (7) 172 2

Revenue recognition reportability adjustment(1) 12 38 (32)

Other^(2) 6 1 9 30

Adjusted development profit ** $ 98 $ 6 $ 219$ -

Development profit margin^(3) 28.0% (7.4%) 21.8% 0.5%

Adjusted development profit margin^(3) 29.5% 5.2% 26.2% (0.1%)



** 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) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacationownership products revenue.

^(2) Primarily includes purchase price adjustments for the three and nine months ended September 30, 2021, as well as a sales reserve charge related tothe COVID-19 pandemic and purchase price adjustments for the three and nine months ended September 30, 2020.

^(3) Development profit margin represents Development profit divided by Sale of vacation ownership products. Adjusted development profit margin representsAdjusted development profit divided by Sale of vacation ownership products revenue after adjusting for revenue reportability and other charges.

A-10



MARRIOTT VACATIONS WORLDWIDE CORPORATION

(In millions) (Unaudited)



VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA



Three Months Ended Nine Months Ended

SeptemberSeptemberSeptemberSeptember 30, 2021 30, 2020 30, 2021 30, 2020

SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO $ 185$ (3)$ 380$ 39 COMMON SHAREHOLDERS

Depreciation and amortization 24 20 66 61

Share-based compensation expense 1 2 4 4

Certain items:

Litigation charges 1 2 7 4

Gains and other income, net:

Dispositions - (6) - (6)

Hurricane business interruption net insurance proceeds- - - (4)

Foreign currency translation - - - (1)

Other - - - (1)

Transaction and integration costs 1 - 2 3

Impairment charges - 1 - 6

Purchase price adjustments 5 1 7 3

COVID-19 related adjustments:

Sales reserve adjustment, net - - - 37

Restructuring (1) 11 - 11

Other (1) - (1) -

SEGMENT ADJUSTED EBITDA ** $ 215$ 28 $ 465$ 156



EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA



Three Months Ended Nine Months Ended

SeptemberSeptemberSeptemberSeptember 30, 2021 30, 2020 30, 2021 30, 2020

SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO $ 23 $ 13 $ 71 $ (35)COMMON SHAREHOLDERS

Depreciation and amortization 11 8 40 24

Share-based compensation expense - - 1 1

Certain items:

Losses and other expense, net:

Dispositions - 5 - 5

Foreign currency translation - (1) - 2

Other - 1 - (2)

Impairment charges - 1 - 92

Purchase price adjustments - 1 - 1

COVID-19 related adjustments:

Restructuring 1 3 1 3

SEGMENT ADJUSTED EBITDA ** $ 35 $ 31 $ 113$ 91

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

A-11



MARRIOTT VACATIONS WORLDWIDE CORPORATION



CONSOLIDATED BALANCE SHEETS (In millions, except share and per share data)



Unaudited

September 30, 2021December 31, 2020

ASSETS

Cash and cash equivalents $ 448 $ 524

Restricted cash (including $69 and $68 from VIEs, respectively) 434 468

Accounts receivable, net (including $10 and $11 from VIEs, respectively) 223 276

Vacation ownership notes receivable, net (including $1,486 and $1,493 from 2,026 1,840 VIEs, respectively)

Inventory 741 759

Property and equipment, net 1,077 791

Goodwill 3,086 2,817

Intangibles, net 1,007 952

Other (including $70 and $54 from VIEs, respectively) 501 471

TOTAL ASSETS $ 9,543$ 8,898



LIABILITIES AND EQUITY

Accounts payable $ 190 $ 209

Advance deposits 166 147

Accrued liabilities (including $2 and $1 from VIEs, respectively) 375 349

Deferred revenue 540 488

Payroll and benefits liability 201 157

Deferred compensation liability 135 127

Securitized debt, net (including $1,611 and $1,604 from VIEs, respectively)1,594 1,588

Debt, net 2,795 2,680

Other 218 197

Deferred taxes 325 274

TOTAL LIABILITIES 6,539 6,216

Contingencies and Commitments (Note 11)

Preferred stock - $0.01 par value; 2,000,000 shares authorized; none issued- - or outstanding

Common stock - $0.01 par value; 100,000,000 shares authorized; 1 1 75,491,621 and 75,279,061 shares issued, respectively

Treasury stock - at cost; 32,776,162 and 34,184,813 shares, respectively (1,282) (1,334)

Additional paid-in capital 4,056 3,760

Accumulated other comprehensive loss (39) (48)

Retained earnings 237 272

TOTAL MVW SHAREHOLDERS' EQUITY 2,973 2,651

Noncontrolling interests 31 31

TOTAL EQUITY 3,004 2,682

TOTAL LIABILITIES AND EQUITY $ 9,543$ 8,898



The abbreviation VIEs above means Variable Interest Entities.

A-12



MARRIOTT VACATIONS WORLDWIDE CORPORATION



CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)



Nine Months Ended

September 30,September 30, 2021 2020

OPERATING ACTIVITIES

Net loss $ (6)$ (225)

Adjustments to reconcile net loss to net cash, cash equivalents and restricted cash used by operating activities:

Depreciation and amortization of intangibles 112 93

Amortization of debt discount and issuance costs 41 16

Vacation ownership notes receivable reserve 73 97

Share-based compensation 33 23

Impairment charges 5 98

Deferred income taxes 10 1

Net change in assets and liabilities:

Accounts receivable 54 24

Vacation ownership notes receivable originations (545) (265)

Vacation ownership notes receivable collections 532 487

Inventory 59 (4)

Other assets (29) 57

Accounts payable, advance deposits and accrued liabilities (44) (231)

Deferred revenue 119 57

Payroll and benefit liabilities 35 -

Deferred compensation liability 14 8

Other liabilities 23 (11)

Deconsolidation of certain Consolidated Property Owners' Associations (87) -

Purchase of vacation ownership units for future transfer to inventory (99) (61)

Other, net 3 (6)

Net cash, cash equivalents and restricted cash provided by operating activities 303 158

INVESTING ACTIVITIES

Acquisition of a business, net of cash and restricted cash acquired (157) -

Capital expenditures for property and equipment (excluding inventory) (19) (36)

Purchase of company owned life insurance (11) (3)

Dispositions, net - 15

Net cash, cash equivalents and restricted cash used in investing activities (187) (24)

FINANCING ACTIVITIES

Borrowings from securitization transactions 425 690

Repayment of debt related to securitization transactions (602) (793)

Proceeds from debt 1,061 1,166

Repayments of debt (1,039) (703)

Purchase of convertible note hedges (100) -

Proceeds from issuance of warrants 70 -

Finance lease payment (2) (10)

Payment of debt issuance costs (17) (14)

Repurchase of common stock (4) (82)

Payment of dividends - (45)

Payment of withholding taxes on vesting of restricted stock units (17) (14)

Net cash, cash equivalents and restricted cash (used in) provided by financing (225) 195 activities

Effect of changes in exchange rates on cash, cash equivalents and restricted (1) (2) cash

Change in cash, cash equivalents and restricted cash (110) 327

Cash, cash equivalents and restricted cash, beginning of period 992 701

Cash, cash equivalents and restricted cash, end of period $ 882$ 1,028

A-13



MARRIOTT VACATIONS WORLDWIDE CORPORATION



QUARTERLY OPERATING METRICS (Contract sales in millions)



Quarter Ended YearFull Year March 31June 30September 30December 31

Vacation Ownership

Consolidated Contract Sales

2021$ 226 $362 $ 380

2020$ 306 $30 $ 140 $ 178 $ 654

2019$ 354 $386 $ 390 $ 394 $ 1,524



VPG

2021$ 4,644$4,304$ 4,300

2020$ 3,680$3,717$ 3,904$ 3,826$ 3,767

2019$ 3,350$3,299$ 3,461$ 3,499$ 3,403



Tours

202145,871 79,900 84,098

202079,131 6,216 33,170 44,161 162,678

201999,957 111,241107,401 108,272 426,871



Exchange & Third-Party Management

Total active members (000's)^(1)20211,479 1,321 1,313

20201,636 1,571 1,536 1,518 1,518

20191,694 1,691 1,701 1,670 1,670



Average revenue per member^(1) 2021$ 47.13$46.36$ 42.95

2020$ 41.37$30.17$ 36.76$ 36.62$ 144.97

2019$ 46.24$43.23$ 40.89$ 38.38$ 168.73

^(1) Includes members at the end of each period for the Interval Internationalexchange network only.

A-14

MARRIOTT VACATIONS WORLDWIDE CORPORATION

NON-GAAP FINANCIAL MEASURES

In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by a double asterisk ("**") on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common shareholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.

Certain Items Excluded from Adjusted Net Income or Loss Attributable to Common Shareholders, Adjusted EBITDA, Adjusted Development Profit and Adjusted Development Profit Margin.

We evaluate non-GAAP financial measures, including Adjusted pretax income or loss, Adjusted net income or loss attributable to common shareholders, Adjusted EBITDA, Adjusted development profit and Adjusted development profit margin, that exclude certain items in the three and nine months ended September 30, 2021 and September 30, 2020, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other vacation ownership companies.

Adjusted Development Profit (Adjusted Sale of Vacation Ownership Products Net of Expenses) and Adjusted Development Profit Margin.

We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, includes corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as itemized on A-8, as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin.

Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA

EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common shareholders, before interest expense (excluding consumer financing interest expense associated with term loan securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items, as itemized in the discussion of Adjusted EBITDA in the preceding pages, and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term loan securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures and expand our business. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other vacation companies.

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SOURCE Marriott Vacations Worldwide Corporation