Travel + Leisure Co. Reports First Quarter 2021 Results
Travel + Leisure Co. (NYSE:TNL) announced its Q1 2021 financial results, reporting a net income of $29 million on revenues of $628 million. Adjusted EBITDA was $129 million with diluted EPS at $0.33. The company generated $78 million in cash from operations and reported $500 million in term securitization, achieving the best terms in its history. Management expects Q2 adjusted EBITDA between $160 million and $170 million and plans to recommend a $0.30 per share dividend. Increased bookings and leisure travel demand signal a recovery.
- Net income increased to $29 million from a loss of $97 million year-over-year.
- Adjusted EBITDA improved to $129 million, contrasting with a loss of $75 million in the prior year.
- Revenue from Vacation Ownership rose by 11% to $449 million.
- The company fully paid down its revolving credit facility and secured notes, enhancing financial strength.
- Management expects strong adjusted EBITDA in Q2 of $160 million to $170 million.
- Gross vacation ownership interest (VOI) sales were down 43% year-over-year at $236 million.
- Tours decreased by 53% compared to the previous year.
Travel + Leisure Co. (NYSE:TNL), the world’s leading membership and leisure travel company, today reported first quarter 2021 financial results for the three months ended March 31, 2021. Highlights and outlook include:
-
Net income of
$29 million and diluted earnings per share of$0.33 on net revenue of$628 million -
Adjusted EBITDA of
$129 million and adjusted diluted earnings per share of$0.39 (1) -
Net cash provided by operating activities of
$78 million and adjusted free cash flow of$20 million for the first three months of 2021 -
Fully paid down revolving credit facility and
$250 million of secured notes -
Executed
$500 million term securitization with best terms in Company history -
Expects second quarter adjusted EBITDA from
$160 million to$170 million -
Management will recommend a second quarter dividend of
$0.30 per share for approval by the Board of Directors
"Our operating performance strengthened significantly in March, with a robust sequential improvement in our key metrics," commented Michael D. Brown, president and CEO of Travel + Leisure Co. "Increased consumer confidence, reduced travel restrictions, and the vaccine roll-out have all helped to accelerate bookings and leisure travel demand."
"We are encouraged by the strength of booking trends in March and into April in both the Vacation Ownership and Travel and Membership segments. In March, North American bookings for 2021-arrivals at both our businesses were up double-digits versus 2019, after double-digit declines in January and February. We are clearly seeing an inflection in travel sentiment which we believe points to a strong recovery in leisure travel heading into the summer," said Brown.
(1) This press release includes adjusted EBITDA, adjusted diluted EPS, adjusted free cash flow, gross VOI sales and adjusted net income/(loss), which are metrics that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”). See "Presentation of Financial Information" and the tables for the definitions and reconciliations of these non-GAAP measures in accordance with GAAP.
Business Segment Results
The results of operations during the first quarter of 2021 and 2020 include impacts related to the COVID-19 global pandemic, which have been significantly negative to the travel industry, the Company, its customers and employees. Refer to Table 8 for a breakout of COVID-19 related impacts.
Vacation Ownership |
||||||
$ in millions |
2021 |
2020 |
% change |
|||
Revenue |
|
|
|
|
11 |
% |
Net Income/(Loss) |
|
|
( |
|
132 |
% |
Net Income Margin |
7 |
% |
(24) |
% |
|
|
Adjusted EBITDA |
|
|
( |
|
188 |
% |
Adjusted EBITDA Margin |
15 |
% |
(19) |
% |
|
|
Vacation Ownership revenue increased
First quarter adjusted EBITDA was
