Marriott Vacations Worldwide (VAC) 24 Feb 222021 Q4 Earnings call transcript

Greetings, welcome to Marriott Vacations Worldwide Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. At this time, I'll turn the conference over to Neal Goldner, Vice President of Investor Relations. begin. now may you Neal,

Geller; numerous statements risks historical results under Thank are need you, quarter today those uncertainties, Vacations could comments fourth of Chief not facts President, to Steve are Executive our by and Vice President remind implied and subject considered earnings conference everyone which statements welcome and today John our XXXX Officer; joined Officer. Chief comments. in Marriott expressed Tony in to securities federal to described forward-looking and call. Terry, laws. as from Weisz, filings, new our These our are I Worldwide or our Financial Executive Rob, differ and SEC to I by materially future many am that cause

only Forward-looking comments press make the the well we unfold. issued last references that morning as we actual this our financial issued on to Throughout as not call made presentation events the will information. we as statements in call, this effective and website will when to be our updated non-GAAP night and release are

release the can referred to in CEO, Weisz. my now financial the find over non-GAAP to turn Relations call schedules of as well measures to attached Steve at a our remarks our You ir.mbwc.com. It's Investor in reconciliation press page as website of our pleasure to

arguably they more years to our earnings past that's fourth more model landscape have continued shows that dedication I also going the with value and members guests But business Neal. our At thank the than imagined each associates spun COVID and Thanks, past our quarterly the enjoy resilient be ever. challenges proud and the performed focused now be continued for of start owners, It quarter this spend still leisure navigating vacation, over still time we and people call. being years. year, and us. a of our have of Good years two other the guests culminating more how morning, ago. organization I on off we proved XX everyone, two past our owners, the despite since highest with the than joining we EBITDA pandemic, have XXXX, couldn't our adjusted couldn't you

to to As long you Harvest have know, the efforts are World, Network a our happy Clean say we such of commitment history vacations and Children's very we vacation Make-A-Wish for all and philanthropic our that With their supporting and to children Hunger and Hospitals, making know those who as share destinations with we campaign. invigorating. are exciting We mind, offer I'm and to in Miracle experiences memorable fellows unique honored for other $X.XX vacation families. board week, with at deserving per capacity a how stays are our experiences quarterly authorization, restorative bringing increase And in our million our returning $XXX $XXX share, XX% stock history strong recovery our our the With pre-pandemic to long levels. most. $XX the reinstating increased dividend repurchase our we to nearly our dividend million were approximately to need shareholders returning last of standing a fourth and restart nearly share million. and able including common our business, repurchasing quarter, And excess of in to approved remaining cash

we for which and and year in cash flow strong to continued strength we free ahead, our to and come. drive expect us will see growth enable business Looking our products, years this

to despite ownership what like very of in variant illustrating are to people's again I the to quarter, Before business. with John of and strong some go the quarter think share late desire were I'll the I the the start I'd on of turn emergence vacation vacation. Omicron Tony, highlights call and over the Occupancies our

American North had our XXXX. resorts with In in fact, better line occupancies of than or many

example, nicely our time pandemic large with also our XX% Florida Orlando include our than Occupancy XX% we San and a With XX%. resorts growth and beach running ran nearly levels exceeding urban couple for resorts contract ran averaging us Phoenix, come Hawaii locations which of the the Boston over market running in for delivered XX% quarter. Diego XXXX and years nearly sales tour quarter, XX%. began. in in and Desert back XX% strong Desert another exceeded ago, million since VPG domestic For in the the for $XXX occupancy over we first Scottsdale occupancy higher XX% and occupancy sequential Palm have two

of last from XXX First-time was contract XX% buyers which a year's fourth quarter. improvement sales, represented basis point

our As their mentioned of in is a first part contribution double five they of as overall ownership. key buyers historically the I've past, revenue years within strategy, first-time the growing

So I'm see we're making in to area. excited the progress this

growth. now sales enables live welcomed our In Interval progress preview impacting vacation effective and owners high as making to positively members cases business. that and also addition, our X. package many into guests buy tool digital their book successfully booking We're good International integrating Welk packages Welk in ownership is our dates, vacation online, January

are hyatt.com. a to list rebrand our plan to product. added quarter In System, the to Hyatt second Reservation Hyatt branded is Hyatt to quarter, points in the the giving second former expected enable sales be on to will progressing. program also ability the centers Our start us the vacation rental inventory Welk our resorts This Welk's selling ownership to

rebranding resorts plan next year. enabling new Welk their owner the year, owners Hyatt benefits, We and of trade including we for World ability the individual complete will this which to points implement to later points, expect also to we begin

and is very to exciting year be for business. exciting busy XXXX but our looking Hyatt So

after premier exciting Interval of Management members, the as this agreement new company Third-Party Interval's ownership one in exchange December, we is vacation Disney the Club and agreement XXX,XXX an members resorts. agreement industry, Cid than business. welcome as the Club largest Exchange the in Los announced and Interval our also more their business, some this later Residences with January, also names in Vacation to Interval Disney RCD solidifies of quality entered year. in new El nearly Moving brands most Nobu nearly business. resorts open with XX,XXX to to a Hotels which the members affiliating Cabos, into long-term from Welk highest project XX,XXX Vacation is the affiliate newest further in position as with expected well sought And new representing

So let's the year. about coming talk

our ended a the with In vacation. money in drive want they're tours family and plan position XXXX. any said next a was the the two recent a XX% they years year. likely survey, with roughly to owner stood job us end continues team sales separate five in pipeline, to our three a time the that friends said to great vacation anything take year on This appreciate members and at travel X% to and this tour and they pipeline, years. this survey where have two-thirds CNBC in quarter, the Expedia of at to have their XXXX leisure go of and survey, months. marketing XXX,XXX past third do package people in tours is family on spend we nearly travel of in proven with we of year The past than they in Our of people one least with which our great than to line higher said year-end plan more travelers puts In XX% growing

a great in purpose we As a experiences, sole vacation couldn't better is company whose providing travelers position. be

products during a detail we lot on June branded our our We will Sheraton more personalized business. data Day. launching been further investing new one to and to also Investor Marriott we've our into offering, business exciting in long-term, ways have things and to to discuss of using a From in Westin, unified which enhance our experiences provide for new combining product more working grow to new new customer, our XX analytics

and position We company grow that, many to turn are to to With over come. year call John. a I'll in the years for our great this

fourth the the very position well Thanks, a Starting despite to excuse with recovery remained review and grew tour Thanks, resorts of discuss business, good over seen balance fourth our continuing averaging me. and quarter, the Omicron of everyone. With and tourists strength ownership to Today, basis XXXX VPG sequential despite expectations. for resonate optimization liquidity in XX% quarter, and on that, occupancies sheet discuss increased highlight I'll turn quarter our and businesses. pre-pandemic lower product results the call nearly morning, Asian continued our strong, with very and remained emergence our above the going variant our our European customers Tony levels. slightly I'm across our the our sequentially. channel and strong After work, we've vacation Steve well the to at occupancies and to

exceeding the $XXX points to margin years note sales started. strong efficient savings. the our more a synergy becoming for since a the quarter and expanded the highest sequentially XX%, sequentially benefits As by XXXX our fourth a development sales company, $XXX basis by to on pandemic grew marketing Adjusted we result, public by profit XX ended to XXX spending, of contract our profit million. first margin the costs million, in the X% time development XX% since and sequentially lower highlighting in inventory adjusted year levels We growing

$X make allocate businesses we few quarter, our keys to as in we in management vacation progressed our rental quarter. compared recovered pandemic arrangement $XX that, despite capital segment of revenue revenue get ownership XX% they had grew sure stickier third by Resort $X profit with to million profit return, declined from per and however, one revenue off San within average not But we management and to to to rental our that receivables previously, as of fully vacation leisure well increased mentioned related efficient wrote increasing rental also million I've key, as the ample on The Turning sequentially. began COVID. in business our XX% locations to to of quarter our opportunity the fee owners X% ownership performed the travel Francisco, chose to more vacation. has million the

and financing the have would prior would increased profit management primarily resort to XX% year, XX%. that compared third relatively flat from due wealth. margin roughly Excluding been And inclusion profit have the of been to the quarter

deliver rental profit, vacation sequentially $XXX to the development that The to years wealth, contract from margins, additional sales million. total As points increased and enabling of the from quarter. basis our fourth of adjusted EBITDA initiatives, X% our than EBITDA and higher XXX $XX adjusted segment growth of million quarter The business benefited contributed in sales quarter strong in the impact which million contract a were transformation ownership adjusted also margins higher two benefited ago. $XX us a result, and

slightly segment, exchange management members and was integral Turning that basis party member active unchanged. third average sequential in to per the a declined largely revenue on

third-party in $X million segment exchange our at EBITDA adjusted management declined result, a As sequentially. roughly

Looking in Welk, forward with members Disney, El addition join and Cid of that the enroll January.

our We expect this growth third-party and in solid to year. segment exchange see management

G&A line corporate to our continue in expense quarter third our we with the as expenses. Finally, relatively closely remained manage

our For XXX call basis basis nearly the our million the turn the of Tony adjusted the in quarter transformation synergy benefits company Demonstrating leisure points our of I'll discuss and of the compared initiatives. business fourth Tony? EBITDA increased X% to model and quarter sheet, and XXXX XXXX. to focused on over cash and $XXX guidance. a flow to balance With that, the strength improved sequential margin total to

the billion Thanks, year available million too $X.X with very securitization million happy results capacity John. cash, notes I for Starting $XXX And this our with our of revolver. ended quarter. good a $XXX including million eligible our am $XXX of under almost gross strong receivable liquidity, sheet. balance of with in nearly morning, We and everyone.

debt including of securitized debt non-recourse of billion also We receivable. billion outstanding, $X.X our notes related $X.X to had

Given notes our repaid strong our performance XXXX. in of $XXX million October, in due we XXX%

quarter, of We million and first pandemic repurchase in to million shares our $XX dividends fourth cash in returned of also the started. so and $XXX paying shareholders our nearly the including

million we efficient -- commitment arrangement. San cash capital our addition, of units In $XX to use this Francisco fulfill for acquire remaining the

to Now turn our XXXX guidance. let's

in experienced in saw night, last due we the you press February As and despite to early January Omicron. release our softness

sales With XX% year adjusted I development levels this our fixed XXXX XX% We and ability that to a remain contract leverage grow and above growth coming to XXXX growth year. to work to combination expect of VPG. marketing our our with tours optimization margin to from higher and channel expect this would well strong sales full-year costs, compared continued

in business, keys rental This environment, travel to our our to rented transient increase demand Moving to profit. rental be strong drive average leisure given expect and per revenue should up year-over-year the key last we a compared year.

to balance expect to use balance increased approaching do sales In than XX% flat contract last exchange year. opportunity them book a Financing Club, Vacation our beginning compared management notes inventory segment, last year, year. compared new and to where us provide increase member vacation. over than to Cid to business, their similar expected However, and average With should owner with rental profit XXXX. and allocate more for average this brought more this our at Welk in third-party XX% to a for last double-digits year, per El portion the grow the ended to we note In our financing we of of by our with our XXXX Disney currently to year. expected members addition relatively remain increase interval compared XXX,XXX revenue to of

that we adjusted growth to to million expected from XX% growth XX% adjusted to than of post improve come XXX segment margins at total, of XXXX. and as our rental the range, basis last this more $XXX $XXX generate expect to our just year, the compared expect midpoint biggest to and importantly roughly than million to higher We EBITDA businesses. or development year-over-year increases In With management adjusted and at EBITDA expect the year midpoint, exchange mid-teens year. the third-party with points EBITDA we this

also Our achieve savings incremental roughly our $XX is million today. rate million in obviously work guidance savings. run news $XXX the Inflation million of synergy includes year EBITDA the as total adjusted in to we to $XX

our on speaking, inflation Generally higher the me the can talking it good a let consumer as about inflation economy few minutes power. of the is or not whole, business. So purchasing for since impact a spend decrease

However, mitigates our business inflation. against has some natural

income benefits, and self-reported property Wages wages less is a the their at level For of income by $X.X other the example, sorry, annual borne our $XXX,XXX of around target and worth and around million, typically associations. customer net median has disposable a are I'm so expenses impacted. homeowners

sales oriented production. and marketing our positions are incentive of commissioned and many While based on

allowing the We ancillary cost higher well point, drive to our a margins per environment. in to to the in as offset us have businesses, higher rental price ability pricing impact as potential our and

our of addition, to business a better value higher in proposition pricing customer to often cost the products. rental translates In alternative given the increased

ample inventory, have the underway. We on cost the no sheet, ability to reacquire construction inventory and balance low material

expense business future corporate XX% from And inflation to the is development debt is over the and few perspective, of would next on ABS roughly So funding increases of fixed issuances. side our limited the years. exposure an cost our interest in impact only

exposure we're higher not our while manageable. So completely from inflation, immune is

It's negatively first quarterly we While due sales not of our important quarters beginning that quarter quarter the do we impact results. the Omicron we our are expect given to reportability. remember contract seasonality by the softness revenue normal are growth, the providing to also and and to first second typically towards guidance, saw impacted

first for first our $XX was this quarter in And be by EBITDA year's expect reportability. it range. to of in For similar example, I XXXX quarter, a negatively million adjusted impacted would

timing quarter. this and in as As go the the get through we only I like a will being reported with out diluted to guidance share. our includes our requiring convertible accounting of standard a earnings change adoption the point impacting new of and regarding us the calculation notes to per convertible accounting that for of deferral revenue is profit most year recovered would as a the reminder, also debt, fourth

diluted shares the in excess of interest on X, result, earnings expense. the diluted million This assumes common stock includes calculation no convertible lower approximately common on notes share were converted interest XXXX. of in $XXX of per share X stock shares the of to and longer per a earnings and As million addition notes, $XX and into results million the imputed January

we're strong With inventory, expect substantial expecting low the should on excess $XXX XXXX nearly $XXX we than this cash EBITDA adjusted generate with year, We ended this year. growth and inventory free spend more reacquired flow. to of million cost we million

of reported $XX be outstanding previously interest XXXX. our XXXX around we given than our down million lower to expect expense addition, In pay cash debt,

capital this our years. As we to Consistent $XXX the our the and to growing we million, free acquisitions. the highlighting we absence be XX% the of in acquisitions, $XXX the flow development benefit through strategic potential cash cash year, working cash flow shareholders of next past strong range free generate million finished XX% result, repurchases. expect to company. business cash flow, conversion capital returning cash normal growth our approach, over of remains couple continued will we to free to share and model in that dividends In cash efficient million a of flow of excess $XXX real be best for expect a between year to and free we're benefits roughly the flow have of to our inventory. and the to organically of adjusted look compelling of our In to our $XXX invest non-strategic use Outside through year proceeds and strong from XXXX of still with assets estate use or we dispose excess free the we expect summary, million

appreciate As in Vacations interest happy With your always, Marriott to questions. Operator? that, we your will answer Worldwide. we be

Thank you.

conducting We Instructions] be will question-and-answer [Operator now you. session. Thank a

will be with proceed our with your Securities. Now question. coming question Scholes Truist the of Please Patrick from line first

morning. Hi, Pat. Good

the Several trajectory should morning. how going over you. you trajectory here. past several VPG Thank questions the the that know Good next years. that still the folks down. think forward, I here going case talked we in of have about about Is

this very in first VPG. of way, VPG, traditionally half I into buyer as Arithmetically, to mix a a even you and first-time the a have owners. And our with which have second I existing year. happened. it you has all the lower to you reduction you will we existing grown that of as early the say even robust turn assume one been that have very owners, materialize grown. VPG though that mean, expecting as of actually when that nicely, still VPG would we number our first-time that buyers, maintain has increase year not their first-time get the last part buyer sales by And the together,

however, two buyers we mix not more go higher it get that a some is and of the percentage those that expect, we as see I further, dropped. between first-time through would So decline. things, you'll as

for VPG fully outpace the we expect we XXXX. materially still did say full-year will that However, and what

you. thank Okay,

share convertibles. The relates about Just counts share into a question is XX.X year implied it to as the the this count backing regarding it million. for

You do this XXXX year be expire would those there. XXs it's you 'XX think be what implied the roll-off have modeling, EPS, have a count some XXXXs, convertibles because to that or -- say the if left 'XX the we're expire what would I that is still once share going in

Yes, think X.X is the impact the million of I XXs shares. about

about million the 'XX, our accounting the just zero, of existing and notes, always the there's is the into get notwithstanding due shares take the the of $XXX XXX expense, to right, imputed right, you the through in to little at go to rules a we on total, million So history, interest right. up on the notes end million was X of million is a in that right X.X% so right. discount, interest up $XXX X% bit And the X diluted, change to accounting remainder

was for cetera. impact. I of the a the only the new that's only the changes, but the discount was away, So been was right. it And dilution shares think accounting XXX,XXX in it Under rules, then million goes GAAP convert impact the money, at about dilution $XXX the times And couple et GAAP. the in was hits if whole money, had what

GAAP So will, getting have if it's that through you higher income, income. the net you're net cash essentially right, your runs benefit,

the converted in of you the first have I shares to as it right. However, that million assume say why year, the you X And outstanding. that there, debt That's rule the of right. was put

debt it right for million right, $XXX that about it or you're a right, because got capital from think corporate less [indiscernible], stack, well if assuming and less my I've also our be you $XXX debt, perspective, wouldn't the higher but of count, million debt. less, capital $XXX,XXX, convertible share So

little a bit for where January of But X. just convertible accounting. So on that's different kind debt take accounting everybody the rules

go update, the Thank the appreciate you. I'm adjust and back all Understood, set. accordingly. models

Yes, thanks, Patrick.

you. Thank

line Our Chris next of with from Please your proceed the question Bank. Woronka question. Deutsche with is

Good morning.

Hey, good morning, guys.

Good morning.

attractiveness like going talked hotel timeshare increased with little in Have where resorts guys of like a bit the you more prepared of know you yet even rates, So that about the formulas convincing? math the comments able to those I people? changed marketing, to formally through been you of you argument they especially are? run make kind formally kind to Have change the with

when becoming I marketing, assume you're prospect about Is a talking you're say talking about that you owner. to When right? an

walk process, the right. yes Kind that's Yes, formal of we that, the through math.

discovery I I based there's every use with very Sure, with we not do. kind things mean conversation accentuate And owner we and or an have on typically. is much process a we mean, owner no, that of that

is no things time two spending speaking, But talk no over we of a relative the type vacation. of are So one similar rooms in time hotel about versus timeshare one, on presentations owning identical. generally value the

spend to and some minus. one had are, have day, Orlando, would and on occupied that's rooms, $XX,XXX which So accommodations, credit a you it family some of the a inflationary arguably you have. $XXX call bought, here all Then but in examples based maybe our Well, used end maybe of a Grande your with your card, and a trends with in and Lakes, your the stay currently, at night here walk now if and square you to points that were the the copy here of cost the away $XXX us, you or or on contrast of $XXX just a of so $XXX night of it if on $X,XXX doing X,XXX plus couple -- Marriott points receipt JW at we'd just week night, the and going about you're and we've which everything staying end that else, there, you and the footage you're units. a arithmetic, less a at in spending for past was the says at than going from you're

So going do maintenance And off. of you to every include the Orlando, year the goes that and and system, to just pay seven staying arithmetic then not quick say fee your staying here your year, limited you paid but the or in timeframe, six when in fee. system you're really with in maintenance on of cost your what the cost is you're annual

So are about, sensitive payback honest, be for to we've I the talked skew I to higher looking get? mental not, a of to obviously, -- mean, many customers toward end. people for some going that people our more gymnastics the has demo tendency are are far how the as am through discussion going year our Other to

alternative there question stays the cost continue of go is someplace no ways to to but or So when vacation alternative up.

I argument think interest, it timeshare makes about compelling. the more a buying

mentioned pre-COVID, spending maybe a relative recoveries the the kind question you apples-to-apples. compare higher relative as spending seeing more I more steam, the existing what you three And or to the Okay, returning the seen, are comments, to owners tough maybe some above VPG follow-up, buyers will you've it's the I gain from think question back know, what they past VPG flow, spent? months do are 'XX be you order for guess that, is, the based on you then Steve. I in still as six are first-time appreciate of to 'XX by building to

question, very think actually good Chris. a it's I

can a statistic in me question point front right got because So I very that to. good of I

contrast. versus So what's a in of quarter let XXXX. What's give fourth and our of VPGs the just fourth me happened contrast of happened the XXXX you with quarter

in up VPGs time were are XXXX. fourth XXXX. they over for where Our what $XXX in to $XXX for owners first quarter our up compared are they VPGs And were buyers of the

are which gone at improvement VPG to go buyers, time optimization, first of continued of through looking So both through part is hey, channel we owners else. and on everything that and seeing we've

least economic to prior the backdrop, I even yesterday's adventure little think to team better, sales our from at obviously, be continues Putin.

I to increasingly has backdrop good. economic think the continued be

potentially very we for for that. think is and out, we 'XX how beyond So bullish very, reasons, all play those to are going VPG the years at least about into

Steve note, XX% first that owners. VPG the the on Chris and increase number buyers for a increase the time XX% And for mentioning, was in it's

So as those time faster for VPG, which well. first buyers is interesting a rate increasing are at pretty

Okay, yes, terrific. Very guys. that's Thanks, helpful.

you. Thank

question from Please the is with The Instructions]. line Farshid Javar with of proceed Jefferies. question. your next [Operator

morning. you it guys Hyatt. maybe Maybe on long-term Are touch EBITDA terms or going? Welk, relative Hey to How revenue of opportunity for able of just or on is of company? the expand the the size in

the Hyatt. at essentially XX,XXX effectively you mean, foot all I and when we a are Well, rebadged of level, our increased as properties size when forward fast all rebranded

-- Obviously, the into we've We centers size in sales additional that so of with XX%. in And end case of will the come by recollection. my high previously the center. will which I owners XX% Welk you've have increased got portfolio, the portfolio number by think it's or that is will XX%

in are optimization are those not yield we process making with some and and sales We to sales unsimilar of play centers high Vistana trying the we the be the channel that in centers and of the continuing terms been what have and are cost did sure getting to low they to that out channels like. channels of reposition of in those

to in. If I'll for jump ask looking number, a dollar you're John specific

Yes.

leveraging an talked So we could better little basis $XX on we and What by the development brand in of background, kind where Welk, roughly all and rental contract Hyatt there bit sales million numbers underwrote margin bought of just improvement, we a drive EBITDA. was are pre-COVID XX apples-to-apples about right grow when profits, that.

call year with it want remarks, few basis, his Welk. though million, take stuff a there. to to we're that to get the it prepared great walked a $XX we this on would Now Steve comparable million in through And $XX get launching years all to

high sales Welk brand As really to quarter, we rebrand over benefits the now the Welk And the branded unlock program, the and together And to rebranding sell start legacy then then Hyatt to Club be, and one the In existing that resorts. the with start then get get. the rebranding be at then the all second the as today. highest to all and will centers start the a at is right we're product owners wealth first all that those time, have seem the well. bring points through the Hyatt goal product mean, move rebranded process, to the I still year, selling then you

the three I for can the million versus about So we want million of delivered it to $XX we a pro-form by we to EBITDA of report to haven't lot quarter, quarters. benefit first But what yet. the year for million roughly $XX we But was the $XX if we underwrote. that where business in really last on own we seen 'XX get

on So blocking cetera. et the really way, we're lot a unlocked more tackling, of business, right and we the stuff, haven't well our and integrating

it's it But $XX 'XX very benefits million well. double-digits Welk start the just we it get, the that the going million the able down to X%. margin the as we'll in saw more was roughly road. Hopefully, in than So report when call to it more was to numbers, something be development $XX we were

able then once in rental that time. be So income flow over through the some hyatt.com, we cetera expect you're properties here these And to drive the quarter we second getting there. et on get to of

we at this ahead So of we're be where we'd thought a probably I little think point. bit

the right? with of rebranding the necessarily timing that'll to haven't going that's any see results, that all and here Because just yet, the the that start that on we of we're second started to terms some of quarter. track of it's in In benefit

maybe I environment? securitization if see also are market guys given then rate ABS today to the expect rising And you. to can just or the thank seeing with just deals, what respect you ask, Great, for

ABS talking we already we're well, day Yes, banks monitoring economic in changes an We Rates higher, to now. the they're environment right a of versus the now. see. in right slightly two doing have what expectation handle this still still that couple deals range the year. But every are

is plan going And so in that our forward.

as conversely, well. do have warehouse that we we will available using or could be So we a that use

ever remember the is, Tony's those benchmark I'd the Yes, best year, the done. to are X.X% X.X% did to deals one we've deals I last in we think add the

to put have weighted our So XX%, roughly end interest was average the rate at of rates XX% securitization year, increased. it right. in perspective, But the

generally So is points, we're rates seeing right over XXX now. a even if basis which go up, what

still it a you're if do net-net your off comparable weighted average how XX% in was terms deals. X% not in excess sheet, something the very on You're the deal replacing still about XX%, X%, spread high you these your you range think -- of coming what's balance

that, is excess how that's the necessarily excess guess it depending today, I last year into on thing we So right rates cut outperform shouldn't nice where or about see we spread.

for Thanks time. it. Appreciate the

you. Thank

call Thank to you. of the At this Weisz Steve time, for session. end the the we've I'll over remarks. turn question-and-answer reached closing

to Welk, the started in be year Thanks, Rob. tours puts sales year customers $XXX new shareholders levels investing approved XXXX add our for first a our pandemics XXXX. members dividend accomplishments, new increase the Despite business, sequentially to this XXXX and by to Omicron time more total today. a billion In share ended variant pipeline, joining experiences Vacation the on the more we than is proved and in and returned sales, fourth of our than for We segment, third-party in We're contract vacation our great in grew new We're buyers, then in position we XXX,XXX the and initiatives in us Among for again. XXXX. to personalized of started. fourth a exchange shareholders million a substantially our And drive strategy, And in contract quarterly And time in sales Board Club, ownership management to sign growth quarter. our also our a margins, call acquired including just more part our also nearly thanks last repurchase to to the to number invested company. and strong quite we'll nearly the future, drive customers. everyone week, emergence XXX,XXX since $X.X authorization. the increased cash of quarter, in year. XX% which provide tours Disney cash key first In new which have an for our and X% many return eventful adding in improved our we our digital our exceeding note. delivered in

for more and ways Sorry, love personalized our in investing provide experiences I further got to analytics We're also you business. exciting an enhance and customers, apologize. data Apple our to new using watch, to

We two years the be past want company great to providing a go position. couldn't As people have whose is purpose better travelers proven It's and anything. in a the vacation on vacations sole experiences. as

care stay everyone your Take interest. vacation. call the your families next for you and yourselves finally thank and of to always, on enjoy your and safe As

conclude Thank you. today's This conference.

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