Marriott Vacations Worldwide Corporation reported fourth quarter and full year 2015 results.
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Total company contract sales, excluding residential sales, were $204.2 million, $7.4 million lower than the fourth quarter of last year.
The decrease was driven by $3.7 million of lower contract sales in the company's North America segment, $2.1 million of lower contract sales in the company's Europe segment and $1.6 million of lower contract sales in the company's Asia Pacific segment.
Adjusted development margin was $38.1 million, a $5.2 million decrease from the fourth quarter of 2014. Adjusted development margin percentage was 20.1 percent in the fourth quarter of 2015 compared to 21.4 percent in the fourth quarter of 2014.
Development margin was $44 million, a $5.4 million increase from the fourth quarter of 2014, reflecting the turnaround of unfavorable revenue reportability from the third quarter of 2015. Development margin percentage was 22.1 percent in the fourth quarter of 2015 compared to 19.8 percent in the fourth quarter of 2014.
Excluding the results of operations for the portion of the Surfers Paradise, Australia hotel that the company intends to sell, adjusted rental revenues totaled $83.5 million, a $10.2 million increase from the fourth quarter of 2014.
Adjusted rental revenues, net of expenses, were $13.6 million, an $11.8 million increase from the fourth quarter of 2014, of which $5.9 million relates to lower costs year-over-year associated with the company's pre-spin Marriott Rewards liability. Rental revenues net of expenses were $12.9 million, an $11.1 million increase from the fourth quarter of 2014.
Excluding the results of operations for the portion of the Surfers Paradise, Australia hotel that the company intends to sell, adjusted resort management and other services revenues totaled $95 million, a $6.1 million increase from the fourth quarter of 2014.
Adjusted resort management and other services revenues, net of expenses, were $34.4 million, a $3.7 million increase over the fourth quarter of 2014. Resort management and other services revenues net of expenses totaled $35.3 million, a $4.6 million increase from the fourth quarter of 2014.
Financing revenues totaled $38.4 million, a $0.5 million decrease from the fourth quarter of 2014. Financing revenues, net of expenses and consumer financing interest expense, were $22.6 million, a $0.3 million increase from the fourth quarter of 2014.
Adjusted EBITDA was $69 million in the fourth quarter of 2015, a $20.3 million, or 41.8 percent, increase from $48.7 million in the fourth quarter of 2014.
For the full year, total company contract sales, excluding residential sales, were $699.9 million, up $1.1 million, or 0.2 percent, from $698.8 million in 2014, driven by $11.7 million of higher contract sales in the company's North America segment, and $0.2 million of higher contract sales in the company's Asia Pacific segment. These increases were partially offset by $10.8 million of lower contract sales in the company's Europe segment.
North America contract sales, excluding residential sales, were $631.4 million, 1.9 percent higher than 2014. Excluding contract sales in the company's Latin American channels, North America contract sales were $585 million, up $24.9 million, or 4.4 percent, from 2014. Full year 2015 total company adjusted development margin decreased to 20.9 percent in 2015 from 22 percent in 2014.
Adjusted EBITDA in 2015 totaled $235.9 million, $36.2 million, or 18.1 percent, higher than 2014. Full year 2015 adjusted free cash flow was $228.9 million. Adjusted net income in 2015 totaled $118.9 million, an increase of $17.4 million over 2014. Full year 2015 adjusted fully diluted EPS was $3.70, $0.77 higher than 2014. ■