Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.1
Segment Reporting
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting 12. Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker in assessing performance and deciding how to allocate resources. Reportable segments consist of one or more operating segments with similar economic characteristics, products and services, production processes, type of customer, distribution system or regulatory environment.

We report our results of operations through two reportable segments: (i) sales of VOIs and financing; and (ii) resort operations and club management.

Our sales of VOIs and financing segment includes our marketing and sales activities related to the VOIs that we own, our VOIs we acquire under just-in-time and secondary market inventory arrangements, our sales of VOIs through fee-for-service arrangements with third-party developers, our consumer financing activities in connection with sales of VOIs that we own, and our title services operations through a wholly owned subsidiary.

Our resort operations and club management segment includes our provision of management services activities for our Vacation Club and for a majority of the HOAs of the resorts within our Vacation Club. In connection with those services, we also provide club reservation services, services to owners and billing and collections services to our Vacation Club and certain HOAs. Additionally, we generate revenue within our resort operations and club management segment from our Traveler Plus program, food and beverage and other retail operations, rental services activities, and management of construction activities for certain of our fee-based developer clients.

The information provided for segment reporting is obtained from internal reports utilized by management. The presentation and allocation of results of operations may not reflect the actual economic costs of the segments as standalone businesses. Due to the nature of our business, assets are not allocated to a particular segment, and therefore management does not evaluate the balance sheet by segment. If a different basis of allocation were utilized, the relative contributions of the segments might differ but the relative trends in the segments’ operating results would, in management’s view, likely not be materially impacted.

The table below sets forth our segment information for the three months ended March 31, 2020 (in thousands):

Revenue:

Sales of
VOIs and
financing

Resort
operations
and club
management

Corporate
and other

Elimination


Total

Sales of VOIs

$

45,128

$

$

$

$

45,128

Fee-based sales commission revenue

41,365

41,365

Other fee-based services revenue

2,723

26,591

29,314

Cost reimbursements

19,120

19,120

Mortgage servicing revenue

1,595

(1,595)

Interest income

20,148

1,718

21,866

Other income, net

133

133

Total revenue

110,959

45,711

1,851

(1,595)

156,926

Costs and expenses:

Cost of VOIs sold

4,099

4,099

Net carrying cost of VOI inventory

7,914

(7,914)

Cost of other fee-based services

1,470

13,327

7,914

22,711

Cost reimbursements

19,120

19,120

Selling, general and administrative expenses

82,138

19,234

(175)

101,197

Mortgage servicing expense

1,420

(1,420)

Interest expense

4,664

4,154

8,818

Total costs and expenses

101,705

32,447

23,388

(1,595)

155,945

Income (loss) before non-controlling

interest and provision for income taxes

$

9,254

$

13,264

$

(21,537)

$

$

981

Add: Depreciation and amortization

1,559

190

Add: Severance

2,563

1,134

Segment Adjusted EBITDA (1)

$

13,376

$

14,588

(1)See Management’s Discussion and Analysis of Financial Condition and Results of Operations for information regarding Adjusted EBITDA, including how we define Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income.

The table below sets forth our segment information for the three months ended March 31, 2019 (in thousands):

Revenue:

Sales of
VOIs and
financing

Resort
operations
and club
management

Corporate
and other

Elimination


Total

Sales of VOIs

$

51,731

$

$

$

$

51,731

Fee-based sales commission revenue

45,212

45,212

Other fee-based services revenue

2,728

26,840

29,568

Cost reimbursements

17,044

17,044

Mortgage servicing revenue

1,490

(1,490)

Interest income

20,017

1,991

22,008

Other income, net

89

89

Total revenue

121,178

43,884

2,080

(1,490)

165,652

Costs and expenses:

Cost of VOIs sold

3,848

3,848

Net carrying cost of VOI inventory

7,687

(7,687)

Cost of other fee-based services

1,210

13,971

7,687

22,868

Cost reimbursements

17,044

17,044

Selling, general and administrative expenses

72,196

18,128

(110)

90,214

Mortgage servicing expense

1,380

(1,380)

Interest expense

5,262

4,244

9,506

Total costs and expenses

91,583

31,015

22,372

(1,490)

143,480

Income (loss) before non-controlling

interest and provision for income taxes

$

29,595

$

12,869

$

(20,292)

$

$

22,172

Add: Depreciation and amortization

1,536

365

Segment Adjusted EBITDA (1)

$

31,131

$

13,234

 

(1) See Management’s Discussion and Analysis of Financial Condition and Results of Operations for information regarding Adjusted EBITDA including, how we define Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income.