Marriott Vacations Worldwide Corporation

and a decline of 2% through the end of February and revenue per member was roughly flat. But with roughly 1300 of Intervals Exchange Resorts either closed or not taking reservations in the short term due to COVID-19, transaction activity was adversely impacted in March, resulting in a decline in average revenue per member. As a result, adjusted EBITDA for the segment was down $13 million in the quarter. After adjusting for one-time costs, including those related to COVID-19, G&A expense declined $10 million in the quarter, reflecting the continued benefit from our synergy initiatives. We realized $17 million of synergies in the first quarter, bringing our total run rate savings to roughly $70 million. However, as we talked about in March, we've decided to defer most of our investment spending for the time being. As a result, it may take us a little longer to achieve our $125 million goal, but we remain committed to generating at least this amount of synergies by the time we're done. So with the first quarter behind us, I want to spend the rest of my time talking about the actions we've taken to manage through the current environment. As I mentioned earlier, our resort management and financing businesses generate a substantial amount of high margin recurring revenue. These two businesses represent nearly 45% of our annual adjusted EBITDA contribution. Diving in a little deeper, about 36% of our adjusted EBITDA contribution comes from our management and exchange businesses, with about 80% of this revenue coming from stickier recurring sources, including the revenue we generate for managing the resorts. And our financing business represents nearly 20% of our adjusted EBITDA contribution, Nearly 85% of which comes from notes we originated in prior years. The remaining 55% of our adjusted EBITDA contribution comes from more transactional and economically sensitive businesses. In order to manage through the current environment and come through the other end in a strong competitive position, we've had to make some very tough decisions. for example, we furloughed 65% of our associates and reduced work weeks for the remainder by 25% on average. We've deferred merit increases, instituted a hiring freeze for all the critical positions and deferred our 2019 401 match contributions. We've also eliminated all travel and all site meetings and curtailed all discretionary spending. These were hard choices, but we think we can manage at this level until business starts to return. On top of these cost reduction actions, we're also minimizing all CapEx inventory and integration project spending that will allow us to defer up to $260 million of investments this year. And we are suspending all share repurchase activity and dividend payments for the foreseeable future. As a result of these actions, combined with the revenue and cash flow generated from our management and financing businesses, We believe our monthly cash burn will be roughly $10 million per month for May through December, even if sales and rentals don't resume this year. Moving to our balance sheet and liquidity, we ended the quarter with $650 million of unrestricted cash and $98 million of gross notes receivable that are eligible for securitization. We increased our warehouse facility to $531 million at the beginning of April to make sure we have enough capacity in case the securitization market isn't available on reasonable terms. At the end of April, we had only used about half the total amount so we have enough warehouse capacity to support another $375 million of new sales assuming 50% financing propensity. We have no corporate debt maturities until September 2022, which is our convertible note, and that's only $230 million. With the credit markets open and rates relatively attractive given the environment, we decided to raise an additional $500 million of senior secured notes, which will take our available liquidity through at least 2021 if occupancies remain at current levels and our sales centers remain closed for an extended period of time. Our leverage for covenant purposes stood at only 1.3 times our March 31st number compared to the three times first lien leverage ratio limit in our credit agreement. Depending on the length of the shutdown, we could be above the three times by the end of the third quarter. As a result, we are pursuing an amendment to our credit facility to suspend this covenant through the first quarter of 2021. So as difficult as the current situation is, Operator? Operator? Operator?

Melissa, are you there?

Can you hear me now?