Marriott Vacations Worldwide Q1 Profit Flat; Lifts 2014 Adj. EPS View

(RTTNews) - Marriott Vacations Worldwide Corp. (VAC) said that its first quarter 2014 net income totaled $19 million or $0.54 per share, compared to net income of $19 million or $0.51 per share, in the first quarter of 2013.

First quarter 2014 adjusted net income totaled $20 million, a $1 million increase compared to the first quarter of 2013.

First quarter 2014 adjusted net income reflects the exclusion of a $2 million charge in connection with the company's interest in an equity method investment in a joint venture project in its North America segment, $1 million of organizational and separation related costs and $1 million related to a gain from the sale of a golf course and adjacent undeveloped land. First quarter 2013 adjusted net income reflects the exclusion of $1 million of organizational and separation related costs, $1 million of severance in the company's Europe segment, $1 million for a litigation settlement accrual reversal and $1 million related to the impact of extended rescission periods in the company's Europe segment.

In addition, adjusted development margin for both periods is adjusted for the impact of revenue reportability.

Total company contract sales were $162 million, a $6 million increase from $156 million in the first quarter of 2013, driven mainly by $5 million of higher contract sales in the company's Europe segment, and $3 million of higher contract sales in the company's North America segment, offset by $2 million of lower contract sales in the company's Asia Pacific segment.

Total revenue for the quarter was $402 million, up from $390 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.57 per share and revenues of $408.81 million for the quarter. Analysts' estimates typically exclude special items.

The company raised its fiscal 2014 adjusted earnings guidance to a range of $2.42 to $2.68 per share from the prior estimate of $2.41 to $2.67 per share. Analysts project annual earnings per share of $2.61.

The company reaffirmed its fiscal 2014 adjusted EBITDA guidance in a range of $185 million to $200 million, and adjusted net income of $87 million to $96 million.