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Golden Globes homeland homeland Miss America 2013 Aaron Swartz Gangster Squad school shooting
San Francisco-based ValueAct, which manages more than $10 billion for clients, owned 33 million Microsoft shares as of March, which is 0.4 percent of total shares outstanding, but it is believed to be buying more. The fund, co-founded by finance industry veteran Jeff Ubben in 2000, has made a reputation for building stakes in companies and working with management in private to change fundamental strategy. ValueAct's other major holdings include Adobe Systems Inc, Motorola Solutions Inc and Valeant Pharmaceuticals International Inc. In recent months a number of Microsoft's top institutional investors have contacted ValueAct, expressing concern over management execution and strategy, the sources said.
High among the issues in the talks, which the sources described as ongoing, is the apparent lack of succession planning at the top of the company. Steve Ballmer has held the chief executive job since 2000
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ORLANDO, FL ?(July 19, 2013) ??Marriott Vacations Worldwide Corporation?(NYSE: VAC) yesterday reported second quarter 2013 financial results and updated certain guidance for the full year 2013.
Second Quarter 2013 highlights include:
Second quarter 2013 net income totaled?$30 million, or?$0.85?per diluted share, compared to net income of?$5 million, or?$0.15?per diluted share, in the second quarter of 2012. Development margin increased to 23.1 percent in the second quarter of 2013 from 9.3 percent in the second quarter of 2012.
Second quarter 2013 adjusted net income totaled?$27 million, a?$16 million?increase from?$11 million?of adjusted net income in the second quarter of 2012. Second quarter 2013 adjusted net income reflects a reduction of?$5 million?of pre-tax income that resulted from the exclusion of?$9 million?of pre-tax income related to the impact of extended rescission periods in the company?s?Europe?segment, partially offset by the exclusion of$2 million?of organizational and separation related costs,?$2 million?of severance costs and an impairment charge in the company?s?Europe?segment and a nominal net impact related to a joint venture project that was previously included in the company?s former Luxury segment. Second quarter 2012 adjusted net income reflects an increase of?$8 million?of pre-tax income that resulted from the exclusion of?$4 million?of charges related to organizational and separation related costs, a?$3 million?decrease in pre-tax income related to the impact of extended rescission periods in the company?s?Europe?segment, charges of?$2 million?in connection with litigation settlements related to the company?s project in?San Francisco?and?$1 million?of severance costs, partially offset by?$2 million?of impairment reversal related to a joint venture project that was previously included in the company?s former Luxury segment. In addition, adjusted development margin for both periods is adjusted, as appropriate, for the impact of revenue reportability.
Non-GAAP financial measures, such as adjusted EBITDA, as adjusted, adjusted net income and adjusted development margin are reconciled in the Press Release Schedules that follow. Adjustments, including those relating to the impact of extended rescission periods in the company?s?Europesegment, are shown and described in further detail on schedules A-1 through A-20.
?Our second quarter continued our trend of strong adjusted EBITDA growth, driven by improved adjusted development margin and better results in our rental and resort management businesses,? said?Stephen P. Weisz, president and chief executive officer. ?More efficient marketing and sales spending was integral to our improvement as we continue to leverage our fixed costs and drive higher development margin. We have increased our adjusted free cash flow guidance by?$65 million, driven primarily by lower projected cash income taxes, and, given the positive trends in our business year-to-date, we now expect our adjusted EBITDA to be at the high end of our full year guidance range for 2013.?
Second Quarter 2013 Results
Total company contract sales were?$157 million, an?$11 million, or 7 percent, decrease from?$168 million?in the second quarter of 2012, driven mainly by?$10 million?of lower contract sales in the company?s?Europe?and?Asia Pacific?segments.
For the second quarter ended?June 14, 2013, total revenues from the sale of vacation ownership products, excluding?$17 million?related to the impact of extended rescission periods in the company?s?Europe?segment, were?$152 million.
Development margin, excluding?$9 million?related to the impact of extended rescission periods in the company?s?Europe?segment, was?$29 million, a?$13 million?increase from the second quarter of 2012.? This increase was driven by higher reportability year-over-year and lower cost of vacation ownership products and marketing and sales expenses. Reported development margin was?$38 million, a?$25 million?increase from the second quarter of 2012.
Adjusted development margin percentage increased 4.3 percentage points to 17.1 percent in the second quarter of 2013 from 12.8 percent in the second quarter of 2012. The impact of these adjustments is illustrated on schedules A-10?through A-13. Reported development margin increased 13.8 percentage points to 23.1 percent in the second quarter of 2013 from 9.3 percent in the second quarter of 2012.
Rental revenues totaled?$65 million, an?$11 million, or 18 percent, increase from the second quarter of 2012, reflecting an 11 percent increase in transient keys rented as well as a 7 percent increase in average transient rate driven by stronger consumer demand and a favorable mix of available inventory. Rental revenues net of expenses, were?$9 million,?$7 million?higher than the second quarter of 2012.
Resort management and other services revenues totaled?$61 million, a decrease of less than?$1 million?from the second quarter of 2012. Revenues were impacted by the disposition of a golf course and related assets at one of the company?s?Ritz-Carlton?branded projects late in 2012. Resort management and other services revenues, net of expenses improved?$3 million, a 23 percent increase over the second quarter of 2012. Results reflected higher annual fees in connection with the company?s?Marriott Vacation Club Destinations?program and improvements in ancillary operations driven by the disposition of a golf course and related assets at one of the company?s?Ritz-Carlton?branded projects late in 2012.
Adjusted EBITDA, as adjusted for the impact of extended rescission periods in the company?s?Europe?segment, organizational and separation related costs, and other adjustments, was?$48 million?in the second quarter of 2013, a?$20 million?increase from Adjusted EBITDA, as adjusted, of$28 million?in the second quarter of 2012.
Segment Results
Effective?December 29, 2012, the company combined the reporting of the financial results of its former Luxury segment with the?North Americasegment based upon its decision to scale back separate development activity and to aggregate future marketing and sales of inventory in the upscale and luxury tiers. Existing service standards and on-site management remain unaffected by these reporting changes. Prior year amounts have been recast for consistency with current year?s presentation.
North America
VPG increased 8 percent to?$3,211?in the second quarter of 2013 from?$2,968?in the second quarter of 2012, driven by higher pricing and improved closing efficiency. Total?North America?contract sales were?$142 million?in the second quarter of 2013, roughly flat to the prior year, due to fewer sales tours quarter over quarter.
Second quarter 2013 North America segment financial results increased 25 percent, or?$17 million, to?$84 million. The increase was driven by?$10 million?of higher development margin,?$7 million?of higher rental revenues net of expenses,?$3 million?of higher resort management and other services revenues net of expenses and?$1 million?of higher other revenues net of expenses. These increases were partially offset by?$3 million?of lower financing revenues and?$1 million?of higher royalty fees.
Revenues from the sale of vacation ownership products increased?$13 million?to?$136 million?in the second quarter, driven mainly by?$11 million?of higher year-over-year revenue reportability. Development margin was?$28 million, a?$10 million?increase from the second quarter of 2012. This increase was driven by higher revenue reportability year-over-year and lower cost of vacation ownership products and marketing and sales expenses, offset partially by the slightly lower contract sales.
Development margin percentage increased to 20.8 percent in the second quarter of 2013 as compared to 14.7 percent in the prior year quarter. Excluding the impact of revenue reportability, adjusted development margin percentage increased to 19.5 percent in the second quarter of 2013 from 16.8 percent in the second quarter of 2012. The impact of revenue reportability is illustrated on schedule A-12.
Asia Pacific
Asia Pacific?contract sales declined?$7 million?to?$8 million?in the second quarter of 2013 and total revenues declined?$5 million?to?$16 million, both reflecting the impact of the closure of two under-performing off-site sales centers in the fourth quarter of 2012. Segment financial results were?$2 million, remaining flat when compared to the second quarter of 2012.
Europe
As the?Europe?segment continues to sell through its remaining inventory, second quarter 2013 contract sales declined?$3 million?to?$7 million.Europe?segment financial results, excluding?$9 million?related to the impact of extended rescission periods, were?$2 million, up?$2 million?from break-even results in the second quarter of 2012, after adjusting for the?$3 million?impact related to extended rescission periods in the prior year comparable period. These results reflect?$2 million?of higher development margin and?$1 million?of higher rental revenues net of expenses, offset partially by a?$1 million?impairment charge related to a leased golf course at one of the company?s projects in?Spain. Reported segment financial results were?$11 million, up?$14 million?from a loss of?$3 million?in the second quarter of 2012.
Organizational and Separation Plan
During the second quarter of 2013, the company incurred?$3 million?of costs in connection with its continued organizational and separation related efforts, of which approximately?$1 million?was capitalized during the quarter. Total future spending for these efforts is expected to be approximately?$16 million?to?$21 million, with costs being incurred through 2014.
These costs primarily relate to establishing the company?s own information technology systems and services, independent accounts payable functions and reorganization of existing human resources and information technology organizations to support the company?s standalone public company needs. Once completed, these efforts are expected to generate approximately?$15 million?to?$20 million?of annualized savings, of which approximately?$2 million?are reflected in the company?s year-to-date 2013 financial results.
Balance Sheet and Liquidity
On?June 14, 2013, cash and cash equivalents totaled?$104 million. Since the end of 2012, real estate inventory balances declined?$19 million?to$862 million, including?$425 million?of finished goods,?$168 million?of work-in-process and?$269 million?of land and infrastructure. The company had?$687 million?in debt outstanding at the end of the second quarter of 2013, a decrease of?$31 million?from year-end 2012, including?$643 million?in non-recourse securitized notes, of which?$104 million?has been drawn down under the company?s warehouse credit facility, and?$40 million?of mandatorily redeemable preferred stock of a subsidiary. As of?June 14, 2013, the company had?$196 million?in available capacity under its revolving credit facility after taking into account outstanding letters of credit and had?$124 million?of vacation ownership notes receivable eligible for securitization.
Outlook
For the full year 2013, the Company is increasing its adjusted free cash flow, as adjusted, guidance as a result of lower projected cash income taxes and improved consumer financing activity. In addition, as a result of lower effective income tax rates, primarily in international tax jurisdictions, the Company is increasing its adjusted net income and adjusted fully diluted earnings per share guidance for the full year.
| Current Guidance | Previous Guidance | |
| Adjusted free cash flow, as adjusted | $120 million?to?$135 million | $55 million?to?$70 million |
| Adjusted net income, as adjusted | $72 million?to?$78 million | $69 million?to?$75 million |
| Adjusted fully diluted earnings per share | $1.94?to?$2.10 | $1.87?to?$2.03 |
The Company is also reaffirming the following guidance for full year 2013 as previously provided on?April 25, 2013:
| Gross contract sales growth | 0 percent to 5 percent |
| North America?contract sales growth | 5 percent to 10 percent |
| Adjusted EBITDA, as adjusted | $155 million?to?$165 million |
| Adjusted company development margin | 17.0 percent to 18.0 percent |
Schedules A-1 through A-20 reconcile the non-GAAP financial measures set forth above to the company?s expected full year 2013 net income of$71 million?to?$77 million?and development margin of 17.5 percent to 18.5 percent, in each case on an as reported basis.
Second Quarter 2013 Earnings Conference Call
The company will hold a conference call at?10:00 a.m. EDT?today to discuss these results. Participants may access the call by dialing (877) 941-0844 or (480) 629-9835 for international callers. A live webcast of the call will also be available in the Investor Relations section of the company?s website at?www.marriottvacationsworldwide.com.
An audio replay of the conference call will be available for seven days and can be accessed at (800) 406-7325 or (303) 590-3030 for international callers.?The replay passcode is 4625312.?The webcast will also be available on the company?s website.
About?Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation?is a leading global pure-play vacation ownership company. In late 2011,?Marriott Vacations Worldwide?was established as an independent, public company focusing primarily on vacation ownership experiences. Since entering the industry in 1984 as part of Marriott International, Inc., the company earned its position as a leader and innovator in vacation ownership products. The company preserves high standards of excellence in serving its customers, investors and associates while maintaining a long-term relationship with Marriott International.Marriott Vacations Worldwide?offers a diverse portfolio of quality products, programs and management expertise with more than 60 resorts and more than 420,000 Owners and Members. Its brands include:?Marriott Vacation Club,?The Ritz-Carlton Destination Club?and Grand Residences by Marriott. 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 earnings trends, organizational and separation related efforts, estimates, and assumptions, and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including volatility in the economy and the credit markets, supply and demand changes for vacation ownership and residential products, competitive conditions; the availability of capital to finance growth, and other matters referred to under the heading ?Risk Factors? contained in our most recent Annual Report on Form 10-K filed with the U.S Securities and Exchange Commission?(the ?SEC?) and in subsequent?SEC?filings, any of which could cause actual results to differ materially from those expressed in or implied in this presentation. These statements are made as of?July 18, 2013?and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE: Marriott Vacations Worldwide
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Updated: June 30, 2013, 1:59 AM ET
By Jack Shinar | Bloodhorse| Post | Horse | Win | Place | Show |
|---|---|---|---|---|
| 4 | Debt Ceiling | $12.40 | $5.40 | $4.20 |
| 3 | Hollywood Talent | ? | $4.00 | $3.20 |
| 2 | My Corinthian | ? | ? | $5.20 |
Debt Ceiling improved his career to a perfect 3-for-3 by taking the $111,400 Bashford Manor Stakes at Churchill Downs in a commanding fashion June 29.
The Kentucky-bred son of Discreet Cat Top Marks, by Marquetry, is trained by John Robb, who celebrated his first win at Churchill. The 2-year-old colt is owned by Tim O'Donohue and was bred by Brandywine Farm. Heavy rain and lightning delayed the start of the six-furlong Bashford Manor, the year's first open stakes for 2-year-olds, for approximately 14 minutes. Horses circled the paddock until the severe weather pass through the area. Seven horses went to the post on a soupy main track. While the initial break was good, Sandbar, with the spring meet's leading rider Shaun Bridgmohan aboard, stumbled about two jumps out of the gate and was out of contention. My Corinthian grabbed the early lead and took the field through a blistering :20.93 opening quarter-mile and a half-mile in :44.57. Hollywood Talent stalked the leader while Debt Ceiling fell back to a couple of lengths off the leaders down the backstretch. Approaching the turn, jockey Eric Camacho hit the accelerator and Debt Ceiling roared passed the frontrunners, taking what would be an uncontested and widening lead. Debt Ceiling ran five furlongs in :56.79 to open up by six lengths and stopped the timer at 1:10.66. He won by 2 3/4 lengths. "We've always known this horse has had talent," Camacho said. "The plan today was to let the two speed horses (My Corinthian and Hollywood Talent) go and sit off them. So I just sat back and took my time. When it was time to go, he told me when to go. I passed them so fast. I was a little worried that I moved too early, but I had so much horse that when it was time to go I had to go." Hollywood Talent , with John Velazquez, wore down My Corinthian, ridden by Luis Garcia, in deep stretch and took second by 2 1/2 lengths. Runkle, D'cajun Cat, Gun Roar, and Sandbar rounded out the order of finish. O'Donohue described the win as priceless. "This is my second stakes horse, but I have a feeling this is going to be the best horse I've ever owned, said the 50 year old businessman from Parkland, Fla. He has owned racehorses for 30 years. Debt Ceiling paid $12.40, $5.40, and $4.20 as the third choice in the field of seven juveniles. Hollywood Talent paid $4 and $3.20, while My Corinthian paid $5.20. The $2 exacta paid $48.80, and the $2 trifecta paid $80.75. Only Debt Ceiling had stakes experience heading into the Bashford Manor. The colt broke his maiden by 4 1/2 lengths March 30 at Laurel Park, then won the Rollicking Stakes by 2 1/2 lengths May 18. Camacho has ridden him both times. "The first race, I didn't expect him to win," said Robb, who is based in Maryland. "He did it on raw talent. The last two races, we went in feeling very confident. There were really no other races on the East Coast for him. This was the closest around and I'm glad we came." Robb said he expects to ship Debt Ceiling to Saratoga Race Course for his next start.Source: http://espn.go.com/horse-racing/story/_/id/9438094/2013-bashford-manor-recap
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Milwaukee Brewers catcher Martin Maldonado, right, reaches for the throw as Pittsburgh Pirates' Gaby Sanchez, left, scores from third on a pinch-hit by Russell Martin in the fourteenth inning of the baseball game on Sunday, June 30, 2013, in Pittsburgh. The Pirates won 2-1, in 14 innings. (AP Photo/Keith Srakocic)
Milwaukee Brewers catcher Martin Maldonado, right, reaches for the throw as Pittsburgh Pirates' Gaby Sanchez, left, scores from third on a pinch-hit by Russell Martin in the fourteenth inning of the baseball game on Sunday, June 30, 2013, in Pittsburgh. The Pirates won 2-1, in 14 innings. (AP Photo/Keith Srakocic)
Pittsburgh Pirates starting pitcher Charlie Morton throws against the Milwaukee Brewers in the first inning of the baseball game on Sunday, June 30, 2013, in Pittsburgh. (AP Photo/Keith Srakocic)
Milwaukee Brewers starting pitcher Kyle Lohse throws against the Pittsburgh Pirates in the first inning of the baseball game on Sunday, June 30, 2013, in Pittsburgh. (AP Photo/Keith Srakocic)
Pittsburgh Pirates shortstop Clint Barmes, top, hops as the ball gets away while Milwaukee Brewers' Carlos Gomez steal second base in the first inning of the baseball game on Sunday, June 30, 2013, in Pittsburgh. (AP Photo/Keith Srakocic)
A young baseball fan wears a yellow poncho as he waits out a rain delay in the baseball game between the Pittsburgh Pirates and the Milwaukee Brewers on Sunday, June 30, 2013, in Pittsburgh. (AP Photo/Keith Srakocic)
PITTSBURGH (AP) ? Pinch-hitter Russell Martin singled home the winning run in the 14th inning and the Pittsburgh Pirates earned their ninth straight victory, defeating the Milwaukee Brewers 2-1 Sunday.
The Pirates extended their longest winning streak since 2004, when they took 10 in a row. Pittsburgh reached the midpoint of its season with the best record in the majors at 51-30.
Gaby Sanchez led off the 14th with an infield single. With one out, he stole second for his first steal in more than a year. After a walk, Martin hit a soft liner to center off Francisco Rodriguez (1-1).
Sanchez chugged around third and slid home ahead of the throw by Carlos Gomez.
Vin Mazzaro pitched five perfect innings. He was among six Pirates relievers who combined for 11 scoreless innings after Charlie Morton was pulled following a rain delay of 2 hours, 20 minutes.
Justin Wilson, Bryan Morris, Jason Grilli and Mark Melancon each pitched a scoreless inning following Mazzaro ? allowing a total of two hits and no walks.
Tony Watson (2-1) struck out four in three hitless innings.
Andrew McCutchen hit a tying single in the Pittsburgh eighth.
Bidding for the franchise's first winning season or playoff berth in 21 years, surprising Pittsburgh enters July with the most wins in the majors. The crowd of 35,351 was about three 3,000 shy of capacity, snapping the PNC Park-record sellout streak of five games.
The vast majority of those on hand waited out a downpour not long after Milwaukee scored an unearned run in the second inning off of Morton, making his fourth start since returning from 2012 elbow surgery.
The Pirates trailed for roughly the next four hours ? after the delay, Tyler Thornburg and Mazzaro traded shutout innings ? until tying it in the eighth against Jim Henderson. Marte walked with one out, advanced on a groundout and came home on McCutchen's single.
The Pirates almost won it in the ninth, loading the bases against former Pittsburgh pitcher Michael Gonzalez. But pinch-hitter Brandon Inge struck out swinging to end the inning.
Pittsburgh loaded the bases again in the 13th with one out, but Rodriguez got Pedro Alvarez to ground into a 3-6-3 double play. Milwaukee manager Ron Roenicke utilized five infielders ? all playing in ? for the sequence.
Martin Maldonado had three hits for Milwaukee, which got its only run when Yuniesky Betancourt came home on Logan Schafer's bunt in the second.
NOTES: LF Schafer robbed Sanchez of a home run by reaching over the left-center field wall for a catch in the seventh. ... After a team off-day Monday, Pirates LHP Jeff Locke (7-1, 2.06) carries a personal seven-game winning streak into Tuesday's series opener against Philadelphia. The visiting Phillies counter with rookie RHP Jonathan Pettibone (3-3, 4.17). ... After the Brewers begin a four-game series in Washington on Monday, the lone NL team they will have yet to face will be the New York Mets.
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