Marriott Vacations Worldwide Corporation. (NYSE:VAC) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET

Company Participants

Neal Goldner - VP-IR
John Geller - President and CEO
Jason Marino - EVP and CFO

Conference Call Participants

Benjamin Chaiken - Mizuho
David Katz - Jefferies
Patrick Scholes - Truist Securities
Brandt Montour - Barclays
Chris Woronka - Deutsche Bank
Shaun Kelley - Bank of America

Operator

Greetings, and welcome to the Marriott Vacations Worldwide Second Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Neal Goldner, Vice President, Investor Relations. Thank you, Neal. You may begin.

Neal Goldner

Thank you, Paul, and welcome to the Marriott Vacations Worldwide Second Quarter Earnings Conference Call. I am joined today by John Geller, our President and Chief Executive Officer; and Jason Marino, our Executive Vice President and Chief Financial Officer.

I 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, which could cause future results to differ materially from those expressed in or implied by our comments.

Forward-looking statements in the press release as well as comments on this call are effective only when made. They 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 and the schedules attached to our press release and on our website.

With that, it's now my pleasure to turn the call over to John Geller.

John Geller

Thanks, Neal. Good morning, everyone, and thank you for joining our second quarter earnings call. We had a mixed second quarter with rentals exceeding our expectations and lower VPGs negatively impacting our contract sales. In addition, we have not seen the necessary improvement in our loan delinquencies, so we increased our sales reserve to reflect higher expected defaults, which Jason will provide more color on later in the call.

So let's start with contract sales. As we look back at the cadence of the quarter, April VPG was soft, but May was in line with the prior year, which gave us confidence for the rest of the quarter. However, June VPG declined on a year-over-year basis and contract sales declined 1% for the quarter as we were successful growing tours, offset by a decline in VPG.