Q3 2021 Marriott Vacations Worldwide Corp Earnings Call
Greetings and welcome to Marriott vacations worldwide third 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.
If anyone should require operator assistance during the conference. Please press star zero from your telephone keypad.
Please note this conference is being recorded.
At this time I'll turn the conference over to Neal Goldner with Investor Relations Neal you May now begin.
Thank you, Rob and welcome to the Marriott Vacations worldwide 2021 third quarter earnings call Conference call.
I am joined today by Steve White, Chief Executive Officer, our President John Geller, and Toni Terry our new Executive Vice President and Chief Financial Officer.
Need to remind everyone that many of our comments today are not historical facts and are considered forward looking statements under federal Securities laws. These statements are.
Subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed in or implied by our comments.
Forward looking statements in the press release that we issued this morning as well as the presentation, we added to our website and our comments on this call are effective only onemain and will not be updated as actual events unfold.
Throughout the call, we will make references to non-GAAP financial information.
You can find a reconciliation of non-GAAP financial measures referred to in our remarks.
In the schedules attached to our press release as well as in the Investor Relations page of our website at IR Dot M. B W. C Dot com.
It's now my pleasure to turn the call over to CEO, Steve lives. Thanks, Neil Good morning, everyone and thank you for joining our third quarter earnings call before we start I want to welcome Tony carry our newly announced Chief Financial Officer with 25 years of experience at MPW to our earnings call.
Most of the time, we are joining you from Sunny, Florida today is particularly exciting is we're at the New York stock exchange to celebrate an important milestone for Marriott vacations worldwide, our 10th year anniversary as an independent publicly traded company.
10 years ago, we were a pure play vacation ownership company with three brands 64 resorts and approximately $420000.
Today or about vacation experiences with seven brands 120 resorts and 700000 loyal owners on our vacation ownership business and we also have 3200 resources at one 3 million members in our exchange business and more than 150, other resorts and lodging properties and our third party.
Management does.
Our large portfolio of offerings allows our owners and members to access virtually any time the vacation experience they can ever walk.
We've built a business characterized by strong organic growth and recurring cash flow driven in part by our capital efficient inventory approach.
This is providing fuel to enable us to expand our resort footprint and presumed and pursue M&A activities, including the acquisitions of IRG and welk resorts, while simultaneously returning excess cash to shareholders.
We built an incredible team of talented associates throughout the world I am sincerely appreciated appreciative of their dedication and contributions to our success.
Equally grateful for the millions of loyal owners members and guests.
Their trust in us to deliver remarkable vacation experiences time and time again to help fuel this growth.
And there is much more to come including new products, new digital tools to delight, our existing customers, while also attracting new ones.
I've been with various indications for 25 years I can honestly say that our best days are still ahead of us.
Before I turn the call over to John I'd like to share what I think are some of the highlights of the quarter.
Starting with our vacation ownership.
Occupancy in our North American resorts were very strong during the quarter. Despite softness in a few markets due to the delta varying and the fires in the Lake Tahoe Basin.
For example, we ran nearly 95% occupancy in Hawaii for the quarter, though when the governor asked as travelers to stay away for a few months, we did see off of occupancy soften a few point late in the quarter.
Orlando another large market for occupancy dip during August and September due to the various while occupancies at our Florida Beach resorts were well above 2019 levels illustrating travelers' desire if you get back on vacation.
Our urban locations continued to improve nicely during the quarter, the San Diego running over 85% occupancy and Boston running nearly 95%.
And encouragingly, we saw a nice sequential improvement in our European locations as the quarter progressed.
With the strong domestic occupancy we delivered $380 million in contract sales, which was it was within 3% of 2019 levels.
First time buyers represented more than 30% of contract sales improving sequentially from the second quarter and this is important for the health of the system as first time buyers have historically doubled their revenue contribution within their first five years of ownership.
And with the products, we sell are resonating with customers now more than ever.
P J exploiting well was almost $4500 nearly 30% higher than the third quarter of 2019 with both first time buyer and owner BTG up double digits.
Moving to our exchange and third party management business interval signed a contract with Al said resorts, leading all inclusive developer in Mexico. This resort group will transition its members to interval on January one leveraging our technology to ensure a seamless customer experience.
And with the acquisition of Welk resorts earlier. This year, we are now working to transition wealth owners to interval effective January one one year earlier than originally planned.
This will not only add new members through the interval network, but also a highly desirable inventory in key leisure destinations such as San Diego, Los Cabos Breckenridge and lifestyle.
In total these agreements will bring nearly 50000, new members through the interval system beginning on January one.
Companywide, we also continue to make good progress on our technology initiatives to drive growth and expand margins for.
For example, our vacation ownership business recently launched new digital reservation technology, which we expect to increase our marketing efficiency and improve customer service.
Interval is continuing to work and significantly expand its addressable market beyond this timeshare and we look forward to sharing our progress on this initiative with next year.
And we're making good progress linking our Marriott Westin and Sheraton brands into a single points based product greatly improving owner access across our Marriott branded portfolio of products in the first half of next year.
So let's talk about the balance of the year, we continue to be very encouraged with the improvement of our business Occupancies remained very strong in October with particular strength seen in breach and mountain properties.
The integration of wells into our Hyatt vacation ownership business continues to go well and we're working diligently to transition a welcoming her to interval a year earlier than originally planned.
We sold more tour packages in the third quarter than we did in the second.
And in September with more than 214000 tours in our package pipeline.
And with the strong ramp up in package sales. This year, we ended the quarter roughly in line with 2019, despite pausing most marketing activities for much of last year.
Owner and preview reservations for the first half of next year are up 10% compared to the same time in 2019.
In a recent survey, 71% of our owners said that theyre likely to travel within the next three months with 90% likely to travel in the next 12 months.
With the change in government restrictions are cancun in Cabos resorts I'll once again allowed to operate at full capacity in Hawaii Governor has once again welcoming vacationers to the islands.
And we're looking forward to welcoming our international gas back through our U S. Resorts. This month now that the restrictions have been relaxed.
All of this puts us in a position to close the year on a high note and setting us up for a strong 2022.
With that I'll turn the call over to John.
Thanks, Steve and good morning, everyone.
But before I start I want to congratulate Tony for his recent promotion I've had the pleasure of working closely with Tony since I joined Marriott vacations, nearly 13 years ago, and I couldnt be happier for.
Today, I'm going to review our third quarter results.
Light the continued strong recovery across our businesses and discuss the strength of our balance sheet and liquidity position as well as our expectations for the fourth quarter.
Starting with our vacation ownership business the value of our leisure focused business model was evident again this quarter. Despite the delta variant Occupancies continue to hold strong in the quarter with owner Occupancies above 2019 levels, though this was partially offset by some softness in transient and previewed.
Bookings.
As a result, we grew contract sales by 5% sequentially in the third quarter to $380 million, which was almost back to 2019 levels BTG was largely unchanged compared to the second quarter and remained well above pre pandemic levels illustrating how well our product continues to resonate.
With customers as well as the benefits of our channel optimization initiatives.
Adjusted development profit increased 19% sequentially to $98 million.
Adjusted development profit margin expanded sequentially by 335 basis points to 30% the highest margin in our 10 years since becoming a public company highlighting the benefits of more efficient marketing and sales spending lower inventory cost and synergy savings.
Turning to our rental business as I mentioned last quarter in order to get more of our owners back on vacation, we decided early in the pandemic to allocate more of our rental keys to owners as demand recovers.
This did impact our transient keys rented during the third quarter, but with average revenue per key increasing 9% sequentially rental revenues increased 11% and profit grew 73%.
The stickier revenue businesses within our vacation ownership segment also performed well in the quarter.
<unk> management revenue increased 2% compared to the second quarter and margin was approximately 56%.
And financing profit increased 16% from the prior year due to the inclusion of well.
With our contract sales growing 5% sequentially in the third quarter and financing propensity improving to 60% our notes receivable balance increased sequentially.
Based on these trends and the acquisition of well, we expect our 2022 financing profit to be well above 2019 levels.
Our portfolio also continues to perform well with the delinquency and default activity in line or even below pre pandemic levels for each of our brands and we expect to complete our next securitization this quarter in terms remained very favorable.
Turning to the acquisition of well, while we're not providing detailed results for the wealth business given its relative size. Our vacation ownership results did include $30 million of contract sales and $18 million of adjusted EBITDA better than we anticipated.
As a result total adjusted EBITDA in our vacation ownership segment increased 18% sequentially to $215 million the quarter benefited from strong growth in development and rental profit and the impact of our business transformation initiatives, enabling us to deliver margins that were nearly 360 <unk>.
<unk> points higher than two years ago.
Turning to the exchange and third party management segment active members at interval declined slightly on a sequential basis and average revenue per member declined 7% due to lower exchange volumes, which I mentioned last quarter as a result, adjusted EBITDA at our change in third Party management segment declined two.
$2 million sequentially, However, margins expanded by 70 70 basis points on cost saving initiatives.
I'm also very excited about all the new resort affiliations, Steve talked about which will bring nearly 50000, new interval members to the system by early next year.
Finally, corporate G&A expense declined 20% sequentially in the third quarter, primarily related to lower bonus expense.
As a result total company adjusted EBITDA increased 25% in the quarter on a sequential basis to $205 million and margin improved to over 27% more than 300 basis points above the third quarter of 2019, demonstrating the strength of our leisure focused biz.
This model and the benefits of our synergy and transformation initiatives.
Moving to our balance sheet as I mentioned last quarter, we've been preparing to return to a balanced capital allocation approach. So with so with the recovery in the business. We felt that now was the right time to reduce our corporate debt by the $500 million. We borrowed last may at the onset of the pandemic.
Begin to return cash to shareholders again.
In September we paid off the remaining $250 million of our six 5% notes due 2026, we followed that in October by repaying $250 million of the six 8% notes we issued last may.
With our current corporate debt at $2 $5 billion and the strong recovery in the business. We are on track to get back to debt to adjusted EBITDA of three times or less and more importantly by taking advantage of the favorable rate environment and healthy capital markets, We expect our cash interest.
Expense next year to be around $20 million lower than our 2019 cash interest expense.
We ended the quarter with $448 million of cash gross notes receivable eligible for securitization of $278 million and almost $600 million of available capacity under our revolver.
Pro forma for the debt repayment in October we had $4.1 billion of debt outstanding, including $1 $6 billion of nonrecourse debt related to our securitized notes receivable as well as total liquidity of more than $1 billion.
Finally, our board of directors reinstated our quarterly dividend and authorized a $250 million share repurchase program effective September 10.
Enabling us to repurchase $4 $5 million of our own shares in the last couple of weeks in September.
We also paid a dividend in October our first since before the pandemic.
Looking ahead, while we're not giving guidance I do want to help you think through what the balance of the year could look like.
Fourth quarter has started off well with contract sales above 2019 levels with.
With Occupancies at pre pandemic levels in most of our North America resorts and international travelers now able to visit the United States again, we expect tours to grow sequentially in the fourth quarter, while <unk> will remain well above pre pandemic levels. As a result, we expect contract sales to grow.
Between $385 and $405 million in the fourth quarter, just above the fourth quarter 2019 at the midpoint.
Similar to prior years, we expect to report ability to be positive in the fourth quarter for those trying to compare our fourth quarter results to the fourth quarter of 2019 remember that report ability that year positively impacted our adjusted EBITDA by $22 million and this year, we only expect.
The benefit to be in the $10 million to $12 million range.
Finally, while we're not providing free cash flow guidance today with more than $640 million of excess inventory I would expect our adjusted EBITDA to adjusted free cash flow conversion to be well above our normal 55% range for a number of years, enabling us to return to our historic capital allocation strategy.
With that we'll be happy to answer your questions Rob.
Thank you well now be conducting a question and answer session. If you'd like to ask a question at this time. Please press star one from your telephone keypad and a confirmation tone will indicate your line is in the question queue.
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One moment, please pull for questions.
Thank you and our first question is from the line of Patrick Scholes with Truest. Please proceed with your questions.
Hi, Good morning, everyone. Good morning, Patrick Alright, Thank you.
Speaking of international gas I'm wondering if you can give us an update on your thoughts on the return of the.
Japanese guests to Hawaii.
And also just an update now that you've purchased well what.
Youre, Hawaii exposure is.
For your overall company. Thank you and then I have a follow up question.
Sure.
<unk>.
I mean clearly.
As the world Reopens and travel resumes.
Going to be positive for for virtually everywhere I mean, the interesting thing we find in Hawaii, when we earned 95% occupancy.
At least in the short term.
Not a lot of room to be had so.
It will take a while for that to adjust.
We're very encouraged by that and regarding well wealth does not have any presence in Hawaii.
Alright so.
And to be honest.
Don't know what the percentage is.
Japanese buyers in the World system, I would think it would be relatively small but.
So I'd have to ensure that thats all that material there.
Oh, Okay, I was wondering with the acquisition of well caffeine.
Few if any.
Few Japanese exposure, what does your Hawaii exposure dropped down to now roughly yes.
Yes.
Yes, it was pre pandemic it was roughly 15% of our contract sales, Patrick so apparel dropped down a little bit lower than that.
Okay, excuse me, 25% of our total contract sales I misspoke, so feel pie dropdown relatively a couple percentage points, but not meaningfully.
Okay. Thank you and then.
Steve last quarter.
In the press release you had.
Noted.
Been able to turn your focus back towards the digitally enabled our growth initiatives.
To transform your business drive long term growth and improve margins I Wonder if you could just give us a little bit more color on that and how that is progressing. Thank you.
Sure.
It really is both external and also internal.
So external as I think I just mentioned, obviously, we've got a new a new marketing initiative, which allows our owners to not only earn.
Our prospects Denali book, a preview vacation package, but also.
Book It at a specific location normally before that it was a two step process.
So you had to book the package and then we contacted you and reached out to a call center and we found availability will hear people will be able to do that simultaneously based on the availability of where they want to go. So that's number one.
<unk> up all of our efforts in terms of the paid social media stuff in terms of customer acquisition.
And again those are some of the things that we paused in 2020, because quite frankly, we didn't think it was money well spent and we didn't think it was going to yield the kind of results. We're looking for.
On the call transfer side of things.
We are back on the same cadence we were pre pandemic with Marriott and we hope to begin call transfer with Hyatt.
Internally, we have done all sorts of things not only with.
Some of our artificial intelligence.
Some of our data mining.
We're using chat bots and a number of locations both with the internal system and the expert apparel system with customers all with the goal of trying to get to more of a self service environment for our owners and for our associates. So that they don't have to have people as intermediaries to get to the information or perform.
The kind of activity that one month's performance. So we're very encouraged by where we find ourselves.
And and I would say.
We're back on the plan that we were on before the pandemic hit.
Okay. Thank you for the update.
Thank you and thanks Patrick.
Thank you. Our next question comes from the line of David Katz with Jefferies. Please proceed with your questions.
Hi, good morning, everyone.
Okay, great good to talk to.
Can we just talk about the capital allocation.
Hi.
<unk> that you've discussed here number one.
The share repurchase is a very positive gesture.
If you could shed any light around sort of the size of it.
<unk>.
The degree to which we might expect that it would be kind of an ongoing.
Part of it and just put all of that in the context that there might be other acquisitions that we should sort of keep our thoughts.
On that.
That would be in the mix as well.
Sure.
High level.
We're always focused on getting our leverage.
Get back into that less than three times, two and a half to three times and Thats, where we were at when we acquired.
<unk> gives us a lot of dry powder. If you will if we wanted to do an acquisition David as we've talked about there.
Theres not a lot of.
Large upper upscale acquisition opportunities out there in terms of dollar amount. So clearly something were going to continue to look at given the success, we've had with the <unk>.
<unk> and <unk> and then more recently here with well so.
It allows us to take our unbranded as we've talked about rebranded and really leverage that new owner group and grow our existing platforms and drive synergies. So that's always going to be where we're going to look first and foremost with our excess capital and we feel like we're in a good spot there and then after that notwithstanding.
The first approval here from the board was $250 million in terms of repurchase authorization.
We're going to we're going to look to return excess capital to <unk>.
Balance of dividends and repurchasing shares so.
Given our cash flow set up like I talked about we're going to have.
A disproportionate amount of excess cash flow given the inventory we have on our balance sheet. So we've got a lot of opportunity to return capital to shareholders unless there's other acquisition opportunities that we end up taking.
Look at and David I would just add that.
Obviously once once you get to a point, where you run through the $2 50, I would assume that our board room.
It gives us further authorization to continue to buyback shares all within the context of trying to balance it with making sure that we paid the dividend repurchase shares as well as trying to make sure that we get that.
Debt to EBITDA calculation down three envelope.
Understood and John you touched on the follow up that I had in mind, which is I think you mentioned that.
Cash conversion from EBITDA would be well above the 55% normal.
I think you said for a number of years.
Any further perspective on how high is high.
And.
And how long is a number of years would that be more than two.
Yes.
Yes, we are.
<unk> always looked at and we buy back inventory existing inventory on the secondary market. So there is always going to be that level of spend.
That historically has been about $100 million a year, if youre doing a $1 $5 billion six and sales at a 20% product cost right. The delta between the product costs coming off your books in the $100 million give or take you're buying that's your opportunity, but I do want to say, we are always going to look to add new <unk>.
Flags were going to try and do those capital efficiently. So it's never necessarily a straight line, we're going to do what's right to grow the top line in the business and add new resorts I would expect that we'll continue to do a lot of those deals more capital efficient, which would mean, we would be building them with a third party and taking that inventory down.
Three or four years out when we would start meeting inventory again right. So that's kind of the math, but I would say three years to four years, we've got $600 million plus I'm not sure it's going to be a straight line of $150 million a year some years it'll be better some years, depending on what we have going on it could be a little bit less.
Awesome awesome. Thank you very much.
Thank you.
Our next question comes from the line of Chris <unk> with Deutsche Bank. Please proceed with your question.
Hey, good morning, guys, Hey, good morning.
Congratulations to Tony.
Thank you.
Yes.
I was just hoping maybe you guys talk a little bit about.
International in terms of to the U S that is in terms of there.
Their level of profitability or how much of a contribution.
They make too.
Contract sales, we just get a little bit of color on.
On the profile that international visitor thanks.
Yes, so pre COVID-19.
Which is obviously the reference point that we would.
I think most people would look at.
International contract sales were about 12% of our total and the breakdown of that was.
All at 5% five points up to 12.
We're inbounds in North America from both Asia, Latin America, and some Europe.
And about seven points or 7% of that was from.
International contract sales that were originated in the region and our sale centers, either in Asia Pacific or in Europe.
So that's kind of what it was I think you can expect that.
While travel has reopened.
Come available the reopening back to the United States et cetera.
It'll be it'll be Hello, Herky-jerky, I think in terms of how quickly it comes back.
You kind of lay that against the fact that.
Yes.
So rather than an 85% occupancy system wide.
In North America in particular.
Not an overwhelming amount of activity available.
Occupancy available to us, but we think it will come back.
My personal opinion is.
Latin America, and they come back faster than.
In Europe and that would be in turn faster than what you see in Asia Pacific Ex Japan, I think Japan, Whats, Japan opens up I think.
Have to travel a lot and I think you could see more of that eastbound.
Okay. Thanks, Thanks, Steve very helpful. And then the follow up is.
We hear a lot in the broader hospitality industry right about about rising labor costs and availability of labor and obviously you guys are on a different kind of a different structure with this with the commission for most of your Big Chunkier Youre base. So are you seeing any challenges on the labor front availability or any kind of cost.
Pressure outside of that.
Well I mean, clearly I wish I could tell you we were insulated from the industry experience I think the number I saw our.
$1 6 million hospitality jobs were open.
<unk> count.
<unk>, obviously, just with us but across the industry, we do have and we see it particularly in our resort operations group.
We struggle at times to fill positions.
Maybe to a slightly lesser degree even in our sales and marketing team I think we're about 85%.
Our kind of typical pre COVID-19 sales executives now the good news is that our tour our tour volumes down because we have.
Away from the OTC activities and the linkage stuff is down.
We think next year or maybe 50% of what we typically run in language.
None of that is particularly bad news, it's just a matter of as.
As the Covid effect things caused us to go back and look at where we want to put our resources in terms of toward generation et cetera, but and.
Fairly clearly there are some cost pressures I mean wage rates are up now.
Now.
The resort environment in their operations.
Costs are passed on to owners by virtue of their maintenance fee.
And the good news is while in the short term.
You might say well that's that's.
Obviously, causing maintenance fee go up they do have some excess capacity because of some of the lower cost that those resorts ran during low occupancy in 2020.
Gain on their balance sheet. So they can absorb that for a while and our sales and marketing side. We cover that dollar per dollar and again, we have to make sure that we are finding the right kind of efficiencies to offset those.
And get some sort of additional pass through in terms of our cost per point et cetera.
I mean, it's not a not a great situation.
Anybody in the hospitality business and says that it is I think they're they're misleading.
We're working our way through it and the Great news is that our other satisfaction levels.
We've been measuring our.
Very high and continued to go up on a month over month basis. So I think most people understand it and they're content with the job that we're doing.
Okay Super helpful. Appreciate all the details thanks guys. Thank.
Thank you thanks.
Thank you. That's a reminder to ask a question you May press Star one.
The next question is from the line of Brent <unk> with J P. Morgan. Please proceed with your question.
Hey, good morning, everybody. Thanks for taking my questions.
Morning.
Yes.
So just quickly and I apologize if you said this or if I could and haven't heard this from what at least.
You have been above <unk> 19, EBITDA this quarter, excluding wealth was that in there.
Yes, I talked to the numbers I think.
We would have been maybe $2 million below $3 million below 19, if you exclude the $18 million from wealth.
Got it essentially okay, that's great and then essentially central follow up.
I'm sorry, yes, essentially on 19, just a couple of million below.
Got it got it great. Thanks, and then.
Steve, Steve or John or anyone.
Just wondering if you had any updated thoughts on.
<unk> into next year, I know youre not going to give guidance, but I was hoping we could just talk about it more quantitatively breaking <unk> part into the two major components in and.
And how you see <unk>.
<unk> or at least.
The underlying trends for those two drivers going I mean, we're all trying to figure out sort of.
What the how sustainable.
The consumer spend at these levels is but with TPG specifically is there anything structurally.
That makes you think that you will settle longer term above 19 levels in PPG.
Yes.
I actually think we will end, particularly in 20% to 30% on a comparative 2019, but a little bit difficult, but continue to hold back.
What happens is your first time buyer VP at first time buyer percentage of tours goes up which we would expect to see some in 2022.
Youre going to see some because they typically have a lower <unk> number then your owners have.
Just the arithmetic would tell you that <unk> number will come down however.
I mean, we have we have made a strategic decision that we stepped away from anything thats.
At least not except for arena, Hawaii anything OTC, so we won't be going back there.
Where the garage.
Radically change.
As I mentioned I think linkage tours will probably be yes.
50% of what we saw in 2019, typically linkage tours have a tendency to carry a lower <unk> as well.
So I would expect that for next year and for probably several years are accurate. The PPE number will continue to remain very strong percentage increase number may change over time, but I think I don't think I don't think were going to see going back to the 2019 numbers in the foreseeable future.
Excellent. Thanks again.
Thank you.
Thank you.
We have reached the end of the question and answer session I will turn the call over to Steve Weiss for closing remarks.
Thank you Rob and thank you everyone for joining our call today.
Despite the Delta Varian, we delivered another strong quarter validating the resiliency of our leisure focused business model.
Contract sales in the third quarter are nearly back to pre pandemic levels, new owners are coming into the system and <unk> is holding well above 2019 levels, enabling us to deliver our highest adjusted EBITDA margin since we became a standalone public company.
Our exchange and third party management segment interval in are assigned a number of new customers, including Al said resorts that in total will add nearly 50000 new members in 2022.
We're investing in technology initiatives to drive growth and expand margins, while also deleveraging the balance sheet in the past in the past few months and our board of directors authorized a new share repurchase program and reinstated our quarterly dividend, enabling us to again return excess cash to shareholders.
It's been an amazing 10 years with new businesses brands customers and associates, all contributing with today's milestone and yet I believe our best days are still in front of us in fact, the past 18 months have proven anything.
<unk> always wanted to go on vacation and that's the only business we're in.
As always thank you for your interest take care of yourself and finally to everyone on the call and your families safe day.
And enjoy your next vacation.
Thank you.
This will conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.
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Greetings and welcome to Marriott vacations worldwide third quarter 2021 earnings call.
At this time all participants are in a listen only mode.
A brief question answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero from your telephone keypad. Please note. This conference is being recorded.
At this time I'll turn the conference over to Neal Goldner with Investor Relations Neal you May now begin.
Thank you, Rob and welcome to the Marriott Vacations worldwide 2021 third quarter earnings call Conference call.
I am joined today by Steve White, Chief Executive Officer, our President John Geller, and Toni Terry our new Executive Vice President and Chief.