Marriott Vacations sees negative impact of $7M-$8M from Hurricane Matthew in Q4
During its third quarter 2016 earnings conference call on October 13, Marriott Vacations Worldwide Corporation indicated that mandatory evacuations, shutdowns and cancellations of reservations and scheduled tours resulting from Hurricane Matthew had impacted sales operations at several of its locations, primarily those located in Hilton Head and Myrtle Beach, South Carolina. Currently, all of the company's sales centers that were impacted by Hurricane Matthew are fully operational. The company said in a regulatory filing that it estimates that the negative impact to contract sales in the fourth quarter as a result of Hurricane Matthew was approximately $7M-$8M. Even with this negative impact, the company is reiterating its contract sales growth guidance of mid-teens for the fourth quarter and roughly four percent for the full year given the performance at its other sales centers. The company expects to mitigate a portion of the negative impact to net income from lost contract sales, as well as from lost rental and ancillary revenues, through business interruption insurance. The company expects to provide any available updates regarding Hurricane Matthew and its impact on the company's financial results during the fourth quarter 2016 earnings conference call.