Marriott Vacations Worldwide Corporation (NYSE:VAC) (the "Company") reported financial results for the fourth quarter and full year 2022 and provided guidance for full year 2023.

Fourth Quarter 2022 Highlights:

Consolidated Vacation Ownership contract sales were $454 million, a 12% increase compared to the fourth quarter of 2021, and VPG was $4,088. The Company estimates that hurricanes negatively impacted contract sales by approximately $13 million in the fourth quarter of 2022.
Net income attributable to common shareholders was $88 million, or $2.08 fully diluted earnings per share.
Adjusted net income attributable to common shareholders was $115 million, or $2.74 Adjusted fully diluted earnings per share. The Company estimates that hurricanes negatively impacted Adjusted net income attributable to common shareholders by $5 million, or $0.12 per Adjusted fully diluted earnings per share.
Adjusted EBITDA was $239 million; excluding the impact of the Alignment (as defined below), Adjusted EBITDA increased 6% compared to the prior year fourth quarter to $232 million. The Company estimates that hurricanes negatively impacted Adjusted EBITDA by approximately $7 million in the fourth quarter of 2022.
The Company repurchased 1.2 million shares of its common stock for $173 million during the quarter at an average price per share of $139.90.

Full Year 2022 Highlights and 2023 Outlook:

Consolidated Vacation Ownership contract sales were $1.84 billion, a 34% increase compared to 2021, and VPG increased 1% to $4,421. The Company estimates that hurricanes negatively impacted contract sales by approximately $14 million in 2022.
Net income attributable to common shareholders was $391 million, or $8.77 fully diluted earnings per share.
Adjusted net income attributable to common shareholders was $458 million, or $10.26 Adjusted fully diluted earnings per share.
Adjusted EBITDA was $966 million; excluding the impact of the Alignment (as defined below), Adjusted EBITDA was $915 million, an increase of 39% compared to the prior year. The Company estimates that hurricanes negatively impacted Adjusted EBITDA by approximately $8 million in 2022.
During 2022, the Company repurchased 5.1 million shares of its common stock for $701 million at an average price of $137.83 and paid $99 million in dividends.
The Company expects contract sales in 2023 to grow 5% to 9% compared to the prior year and for Net income attributable to common shareholders to be $405 million to $440 million, or $9.51 to $10.30 fully diluted earnings per share.
Excluding the impact of the Alignment (as defined below) in 2022, the Company expects Adjusted EBITDA to grow 4% to 9% in 2023 and Adjusted earnings per share - diluted to increase 14% to 23%.

"2022 was a great year for Marriott Vacations Worldwide. We generated over $1.8 billion of contract sales, a new high for our Company, and returned more than $800 million in cash to shareholders. We also launched Abound by Marriott Vacations, added over 20,000 new owners in our Vacation Ownership business and grew active Interval International members by 21%," said John Geller, president & chief executive officer. "Looking forward, we expect occupancies in North America and Europe to remain strong this year and for Asia-Pacific to continue to improve. We also expect to grow contract sales this year by 5% to 9% compared to the prior year and for Adjusted Free Cash Flow to be between $600 million and $670 million, illustrating the continued demand for leisure travel and the strength of our business model."

Fourth Quarter 2022 Results:

In the third quarter of 2022, in connection with the unification of the Company's Marriott-, Westin-, and Sheraton-branded vacation ownership products under the Abound by Marriott Vacations program, the Company aligned its contract terms for the sale of vacation ownership products, resulting in the acceleration of revenue from the sale of Marriott-branded vacation ownership interests. In addition, the Company aligned its reserve methodology for these brands, resulting in an adjustment to its notes receivable reserve in the third quarter. Together, these changes are herein referred to as the "Alignment." As a result of the Alignment, the Company reported an additional $5 million of Net income attributable to common shareholders and an additional $7 million of Adjusted EBITDA during the fourth quarter. The tables and financial schedules below illustrate the impact of the Alignment on the Company's reported results.

In the tables below "*" 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.

Consolidated

	Three Months Ended December 31, 2022							Three Months Ended December 31, 2021		Change
	As Reported		Impact of Alignment			As Adjusted*				As Reported				As Adjusted*
($ in millions)	As Reported		Impact of Alignment			As Adjusted*				$		%		$		%
Net income attributable to common shareholders	$	88	$	(5	)	$	83	$	61	$	27	45	%	$	22	35	%
Adjusted net income attributable to common shareholders*	$	115	$	(5	)	$	110	$	103	$	12	12	%	$	7	6	%
Adjusted EBITDA*	$	239	$	(7	)	$	232	$	219	$	20	10	%	$	13	6	%
Adjusted EBITDA margin*	28.7%					28.2%		27.4%		1.3 pts				0.8 pts

Vacation Ownership

	Three Months Ended December 31, 2022							Three Months Ended December 31, 2021		Change
	As Reported		Impact of Alignment			As Adjusted*				As Reported				As Adjusted*
($ in millions)	As Reported		Impact of Alignment			As Adjusted*				$		%		$		%
Sale of vacation ownership products	$	439	$	(12	)	$	427	$	364	$	75	21	%	$	63	18	%
Development profit	$	162	$	(7	)	$	155	$	114	$	48	42	%	$	41	36	%
Segment financial results attributable to common shareholders	$	241	$	(5	)	$	236	$	205	$	36	17	%	$	31	14	%
Segment margin	31.9%					31.7%		29.3%		2.6 pts				2.4 pts
Segment Adjusted EBITDA*	$	261	$	(7	)	$	254	$	234	$	27	12	%	$	20	8	%
Segment Adjusted EBITDA margin*	34.6%					34.2%		33.4%		1.2 pts				0.8 pts

Exchange & Third-Party Management

Revenues excluding cost reimbursements decreased 7% in the fourth quarter of 2022 compared to the prior year and increased 4% excluding the results of VRI Americas, which was sold in April of 2022. Interval International active members increased 21% to 1.6 million and Average revenue per member decreased 17% compared to the prior year as the new accounts at Interval International that were added at the beginning of the year continued to ramp up.

Segment financial results attributable to common shareholders were $24 million in the fourth quarter of 2022, Segment margin was 41% and Segment Adjusted EBITDA was $31 million. Excluding the VRI Americas business, Segment Adjusted EBITDA increased 11% compared to the prior year and Segment Adjusted EBITDA margin increased to 55%.

Corporate and Other

General and administrative costs were largely unchanged in the fourth quarter of 2022 compared to the prior year.

Balance Sheet and Liquidity

The Company ended the quarter with approximately $1.3 billion in liquidity, including $524 million of cash and cash equivalents, $72 million of gross notes receivable that were eligible for securitization, and $749 million of available capacity under its revolving corporate credit facility.

In December 2022, the Company issued $575 million of 3.25% convertible notes due 2027 with an initial conversion price of $189.65. The Company used the proceeds from the offering to redeem $250 million of 6.125% secured notes due 2025 (which was paid in January), repurchase $55 million of its own shares, repay the outstanding balance on its revolving credit facility (which was used to redeem $230 million of convertible notes that matured in September 2022) and pay transaction expenses and other fees. In addition, to reduce the potential economic dilution to the Company's earnings per share upon conversion of the notes, the Company used a portion of the proceeds to enter into privately negotiated bond hedge and warrant transactions, with such warrant transactions at an initial strike price of $286.26 per share, which represented a premium of 100% over the last reported sale price of the Company's common stock on December 5, 2022.

At the end of the fourth quarter of 2022, pro-forma for the repayment of the 2025 secured senior notes, the Company had $2.8 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.

The Company completed its second timeshare receivable securitization of 2022 in the fourth quarter, issuing $280 million of notes backed by a pool of $286 million of vacation ownership notes receivable from all of the Company's timeshare brands. The overall weighted average interest rate of the notes was 6.58%, without giving effect to the Company's retention of the Class D Notes, and the transaction had a gross advance rate of 98%.

Full Year 2023 Outlook (in millions, except per share amounts)

The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company.

The Company is providing guidance for the full year 2023. In the table below "*" 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.

(In millions, except per share amounts)	2023 Guidance
Contract sales	$1,930	to	$2,000
Net income attributable to common shareholders	$405	to	$440
Earnings per share - diluted	$9.51	to	$10.30
Net cash, cash equivalents, and restricted cash provided by operating activities	$365	to	$415
Adjusted EBITDA*	$950	to	$1,000
Adjusted earnings per share - diluted*	$10.75	to	$11.54
Adjusted free cash flow*	$600	to	$670

In calculating diluted earnings per share and Adjusted diluted earnings per share, shares issuable upon conversion of our convertible notes are assumed to be converted into common stock, to the extent dilutive, and net interest expense associated with the convertible notes is added back to the numerator of the diluted earnings per share and Adjusted diluted earnings per share calculations.

Non-GAAP Financial Information

Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see "Non-GAAP Financial Measures" for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission.

Fourth Quarter 2022 Financial Results Conference Call

The Company will hold a conference call on February 23, 2023 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 over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates exchange networks and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to 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 an affiliate of 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 future growth and projections for full year 2023. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could" or the negative of these terms or similar expressions. 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 continuing effects of the COVID-19 pandemic or future health crises, including quarantines or other government-imposed travel or health-related restrictions; the length and severity of the COVID-19 pandemic or future health crises, including short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following the COVID-19 pandemic or future health crises or as effective treatments or vaccines against variants of the COVID-19 pandemic or future health crises become widely available; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price and wage inflation; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the COVID-19 pandemic or future health crises and the ongoing conflict between Russia and Ukraine and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of rising interest rates; political or social strife, difficulties associated with implementing new or maintaining existing technology; changes in privacy laws and other matters referred to under the heading "Risk Factors" in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release 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, except as required by law. 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. Any such risks could cause our results to differ materially from those we express in forward-looking statements.

Financial Schedules Follow

MARRIOTT VACATIONS WORLDWIDE CORPORATION FINANCIAL SCHEDULES QUARTER 4, 2022 TABLE OF CONTENTS
Summary Financial Information	A-1
Adjusted EBITDA by Segment	A-2
Consolidated Statements of Income	A-3
Revenues and Profit by Segment	A-5
Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted	A-9
Adjusted EBITDA	A-10
Consolidated Contract Sales to Adjusted Development Profit	A-11
Vacation Ownership and Exchange & Third-Party Management Segment Adjusted EBITDA	A-13
Cash Flow and Adjusted Free Cash Flow	A-14
Consolidated Balance Sheets	A-15
Consolidated Statements of Cash Flows	A-16
2023 Outlook
Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share - Diluted and Adjusted EBITDA	A-18
Adjusted Free Cash Flow	A-19
Quarterly Operating Metrics	A-20
Non-GAAP Financial Measures	A-21

A-1 MARRIOTT VACATIONS WORLDWIDE CORPORATION SUMMARY FINANCIAL INFORMATION (In millions, except VPG, tours, total active members, average revenue per member and per share amounts) (Unaudited)
	Quarter Ended				Change %	Fiscal Year Ended				Change %
	December 31, 2022		December 31, 2021		Change %	December 31, 2022		December 31, 2021		Change %
Key Measures
Total consolidated contract sales	$	454	$	406	12%	$	1,837	$	1,374	34%
VPG	$	4,088	$	4,305	(5%)	$	4,421	$	4,356	1%
Tours		105,231		89,495	18%		390,593		299,364	30%
Total active members (000's)⁽¹⁾		1,566		1,296	21%		1,566		1,296	21%
Average revenue per member⁽¹⁾	$	35.60	$	42.93	(17%)	$	157.97	$	179.48	(12%)

GAAP Measures
Revenues	$	1,188	$	1,100	8%	$	4,656	$	3,890	20%
Income before income taxes and noncontrolling interests	$	145	$	70	108%	$	582	$	127	NM
Net income attributable to common shareholders	$	88	$	61	45%	$	391	$	49	NM
Earnings per share - diluted	$	2.08	$	1.39	50%	$	8.77	$	1.13	NM

Non-GAAP Measures*
Adjusted EBITDA	$	239	$	219	10%	$	966	$	657	47%
Adjusted pretax income	$	169	$	131	30%	$	677	$	296	128%
Adjusted net income attributable to common shareholders	$	115	$	103	12%	$	458	$	190	140%
Adjusted earnings per share - diluted	$	2.74	$	2.38	15%	$	10.26	$	4.40	133%

Financial Measures, Excluding the Impact of Alignment*
Revenues	$	1,176	$	1,100	7%	$	4,617	$	3,890	19%
Income before income taxes and noncontrolling interests	$	138	$	70	97%	$	531	$	127	NM
Net income attributable to common shareholders	$	83	$	61	35%	$	353	$	49	NM
Earnings per share - diluted	$	1.94	$	1.39	40%	$	7.94	$	1.13	NM
Adjusted EBITDA	$	232	$	219	6%	$	915	$	657	39%
Adjusted pretax income	$	162	$	131	24%	$	626	$	296	111%
Adjusted net income attributable to common shareholders	$	110	$	103	6%	$	420	$	190	121%
Adjusted earnings per share - diluted	$	2.60	$	2.38	9%	$	9.42	$	4.40	114%

⁽¹⁾ Includes members at the end of each period for the Interval International exchange network only.
* 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.
NM = Not meaningful.

A-2

MARRIOTT VACATIONS WORLDWIDE CORPORATION

ADJUSTED EBITDA BY SEGMENT

(In millions)

(Unaudited)

Quarter Ended December 31, 2022

Marriott Vacations Worldwide ("MVW") Reports Fourth Quarter and Full Year 2022 Financial Results and Provides 2023 Outlook