Travel + Leisure Co. Reports Second Quarter 2024 Results
Travel + Leisure Co. (NYSE:TNL) reported strong second quarter 2024 results, with net income of $129 million and diluted earnings per share of $1.36 from continuing operations on net revenue of $985 million. The company achieved adjusted EBITDA of $244 million and adjusted diluted EPS of $1.52. Notable highlights include a 13% increase in tours year-over-year, with new owner tours up 22%. Based on these results, Travel + Leisure Co. is raising its full-year 2024 adjusted EBITDA guidance to $915-$935 million and expects third-quarter adjusted EBITDA of $235-$245 million. The company also returned $105 million to shareholders through dividends and share repurchases.
Travel + Leisure Co. (NYSE:TNL) ha riportato risultati positivi nel secondo trimestre del 2024, con un utile netto di 129 milioni di dollari e un utile per azione diluito di 1,36 dollari dalle operazioni continuative su un fatturato netto di 985 milioni di dollari. L'azienda ha raggiunto un EBITDA rettificato di 244 milioni di dollari e un utile per azione diluito rettificato di 1,52 dollari. Tra i risultati principali si segnala un incremento del 13% nei tour rispetto all'anno precedente, con i tour per nuovi proprietari aumentati del 22%. Sulla base di questi risultati, Travel + Leisure Co. ha alzato le previsioni di EBITDA rettificato per l'intero anno 2024 a 915-935 milioni di dollari e si aspetta un EBITDA rettificato nel terzo trimestre di 235-245 milioni di dollari. L'azienda ha anche restituito 105 milioni di dollari agli azionisti tramite dividendi e riacquisti di azioni.
Travel + Leisure Co. (NYSE:TNL) reportó sólidos resultados en el segundo trimestre de 2024, con un ingreso neto de 129 millones de dólares y ganancias diluidas por acción de 1.36 dólares de operaciones continuas sobre un ingreso neto de 985 millones de dólares. La compañía logró un EBITDA ajustado de 244 millones de dólares y EPS diluido ajustado de 1.52 dólares. Los aspectos destacados incluyen un aumento del 13% en los tours año tras año, con los tour para nuevos propietarios en aumento del 22%. Con base en estos resultados, Travel + Leisure Co. está elevando su guía de EBITDA ajustado para todo el año 2024 a 915-935 millones de dólares y espera un EBITDA ajustado en el tercer trimestre de 235-245 millones de dólares. La compañía también devolvió 105 millones de dólares a los accionistas a través de dividendos y recompra de acciones.
Travel + Leisure Co. (NYSE:TNL)는 2024년 2분기 강력한 실적을 보고했습니다. 순이익 1억 2,900만 달러와 주당 희석 이익 1.36달러를 지속적인 운영에서 순수익 9억 8,500만 달러로 기록했습니다. 이 회사는 조정 후 EBITDA 2억 4,400만 달러와 조정된 희석 EPS 1.52달러를 달성했습니다. 주목할 만한 점은 여행 상품 판매가 지난해 대비 13% 증가했고, 새로운 소유자용 여행 상품 판매가 22% 증가했다는 것입니다. 이러한 결과를 바탕으로 Travel + Leisure Co.는 2024년 전체 연도 조정 후 EBITDA 가이던스를 9억 1,500만~9억 3,500만 달러로 상향 조정하였으며, 3분기 조정 후 EBITDA는 2억 3,500만~2억 4,500만 달러로 예상하고 있습니다. 이 회사는 또한 주주에게 1억 5백만 달러를 배당금 및 자사주 매입을 통해 환원했습니다.
Travel + Leisure Co. (NYSE:TNL) a rapporté de solides résultats pour le deuxième trimestre 2024, avec un revenu net de 129 millions de dollars et un bénéfice dilué par action de 1,36 dollar provenant des opérations continues sur un chiffre d'affaires net de 985 millions de dollars. L'entreprise a atteint un EBITDA ajusté de 244 millions de dollars et un bénéfice par action dilué ajusté de 1,52 dollar. Parmi les points forts, on note une augmentation de 13 % des visites d'une année sur l'autre, avec les visites pour les nouveaux propriétaires en hausse de 22 %. Sur la base de ces résultats, Travel + Leisure Co. rehausse ses prévisions d'EBITDA ajusté pour l'ensemble de l'année 2024 à 915-935 millions de dollars et prévoit un EBITDA ajusté de 235-245 millions de dollars pour le troisième trimestre. L'entreprise a également rendu 105 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions.
Travel + Leisure Co. (NYSE:TNL) gab im zweiten Quartal 2024 starke Ergebnisse bekannt, mit einem Nettogewinn von 129 Millionen Dollar und verwässerten Gewinne pro Aktie von 1,36 Dollar aus fortgeführten Betrieben bei Nettoumsatz von 985 Millionen Dollar. Das Unternehmen erzielte ein bereinigtes EBITDA von 244 Millionen Dollar und bereinigte verwässerte EPS von 1,52 Dollar. Zu den bemerkenswerten Ergebnissen gehört ein 13%iger Anstieg der Touren im Vergleich zum Vorjahr, wobei Touren für neue Eigentümer um 22% gestiegen sind. Basierend auf diesen Ergebnissen hebt Travel + Leisure Co. die Prognose für das bereinigte EBITDA für das gesamte Jahr 2024 auf 915-935 Millionen Dollar an und erwartet ein bereinigtes EBITDA im dritten Quartal von 235-245 Millionen Dollar. Das Unternehmen gab auch 105 Millionen Dollar an die Aktionäre zurück durch Dividenden und Aktienrückkäufe.
- Net income of $129 million and diluted EPS of $1.36 from continuing operations
- Adjusted EBITDA of $244 million and adjusted diluted EPS of $1.52
- 13% increase in tours year-over-year, with new owner tours up 22%
- Raised full-year 2024 adjusted EBITDA guidance to $915-$935 million
- Returned $105 million to shareholders through dividends and share repurchases
- Volume per guest over $3,000
- Owner nights up 6% for the remainder of the year
- None.
Travel + Leisure Co. has showcased a robust performance in the second quarter of 2024. They reported a net income of
One of the key takeaways is the increase in new owner tours by
From a market research perspective, the double-digit increases in tours and new owner tours provide insight into consumer behavior and demand for leisure travel. The
The increase in owner nights by
While the article primarily focuses on financial metrics, it's important to consider the technological infrastructure supporting Travel + Leisure Co.'s growth. The ability to handle increased volumes of tours and owner nights implies a robust and scalable digital platform. Efficient customer relationship management (CRM) systems likely play a pivotal role in managing and leveraging customer data to enhance personalized travel experiences.
Moreover, advancements in data analytics and AI-driven insights could be contributing to their ability to predict consumer behavior and tailor offerings accordingly. This technological edge is important for sustaining their competitive advantage and ensuring continued growth in a dynamic travel market.
-
Net income of
,$129 million diluted earnings per share from continuing operations, on net revenue of$1.36 $985 million
-
Adjusted EBITDA of
and adjusted diluted earnings per share of$244 million (1)$1.52
- Tours increased 13 percent year-over-year, with new owner tours up 22 percent
-
Raising full year 2024 adjusted EBITDA guidance to
to$915 $935 million
-
Expects third quarter adjusted EBITDA of
to$235 million $245 million
-
Returned
to shareholders through$105 million of dividends and$35 million of share repurchases$70 million
“For the second quarter, we delivered volume per guest over
"We are increasing our full year adjusted EBITDA guidance, demonstrating that we have a resilient and value-driven business model; are executing well against our growth initiatives; and see strong consumer demand for vacation ownership."
(1) This press release includes Adjusted EBITDA, Adjusted diluted EPS, Adjusted free cash flow, Gross VOI sales and Adjusted net income, which are measures that are not calculated in accordance with Generally Accepted Accounting Principles in the
Business Segment Results
Vacation Ownership
$ in millions |
Q2 2024 |
Q2 2023 |
% change |
Revenue |
|
|
5 % |
Adjusted EBITDA |
|
|
10 % |
Vacation Ownership revenue increased
Second quarter adjusted EBITDA was
Travel and Membership
$ in millions |
Q2 2024 |
Q2 2023 |
% change |
Revenue |
|
|
(1) % |
Adjusted EBITDA |
|
|
— % |
Travel and Membership revenue decreased
Second quarter Adjusted EBITDA was
Balance Sheet and Liquidity
Net Debt — As of June 30, 2024, the Company's leverage ratio for covenant purposes was 3.5x. The Company had
Timeshare Receivables Financing — Subsequent to the end of the quarter, the Company closed on a
Cash Flow — For the six months ended June 30, 2024, net cash provided by operating activities was
Share Repurchases — During the second quarter of 2024, the Company repurchased 1.6 million shares of common stock for
Dividend — The Company paid
Other — During the second quarter, the Company released an accrual related to guarantees associated with the 2018 sale of its European vacation rentals business. These guarantees expired during the quarter resulting in the recognition of a
Outlook
The Company is updating 2024 full year guidance:
-
Adjusted EBITDA of
to$915 million (vs. prior outlook of$935 million to$910 million )$930 million
-
Gross VOI sales of
to$2.25 billion $2.35 billion
-
VPG of
to$2,950 (vs. prior outlook of$3,050 to$2,900 )$3,000
The Company is providing its third quarter 2024 guidance:
-
Adjusted EBITDA of
to$235 million $245 million
-
Gross VOI sales of
to$620 million $650 million
-
VPG of
to$2,950 $3,025
-
Travel and Membership Adjusted EBITDA of
to$55 million $60 million
This guidance is presented only on a non-GAAP basis because not all of the information necessary for a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure is available without unreasonable effort, primarily due to uncertainties relating to the occurrence or amount of these adjustments that may arise in the future. Where one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results.
Conference Call Information
Travel + Leisure Co. will hold a conference call with investors to discuss the Company’s results and outlook today at 8:30 a.m. ET. Participants may listen to a simultaneous webcast of the conference call, which may be accessed through the Company's website at travelandleisureco.com/investors, or by dialing 877-733-4794 ten minutes before the scheduled start time. For those unable to listen to the live broadcast, an archive of the webcast will be available on the Company's website for 90 days beginning at 12:00 p.m. ET today.
Presentation of Financial Information
Financial information discussed in this press release includes non-GAAP measures such as Adjusted EBITDA, Adjusted diluted EPS, Adjusted free cash flow, gross VOI sales and Adjusted net income, which include or exclude certain items, as well as non-GAAP guidance. The Company utilizes non-GAAP measures, defined in Table 5, on a regular basis to assess performance of its reportable segments and allocate resources. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors when considered with GAAP measures as an additional tool for further understanding and assessing the Company’s ongoing operating performance by adjusting for items which in our view do not necessarily reflect ongoing performance. Management also internally uses these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. Exclusion of items in the Company’s non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures for the reported periods appear in the financial tables section of the press release.
The Company may use its website as a means of disclosing information concerning its operations, results and prospects, including information which may constitute material nonpublic information, and for complying with its disclosure obligations under SEC Regulation FD. Disclosure of such information will be included on the Company’s website in the Investor Relations section at travelandleisureco.com/investors. Accordingly, investors should monitor that Investor Relations section of the Company website, in addition to accessing its press releases, its submissions and filings with the SEC, and its publicly noticed conference calls and webcasts.
About Travel + Leisure Co.
As the world’s leading membership and leisure travel company, Travel + Leisure Co. (NYSE:TNL) transformed the way families vacation with the introduction of the most dynamic points-based vacation ownership program at Club Wyndham, and the first vacation exchange network, RCI. The company delivers more than six million vacations each year at more than 270 timeshare resorts worldwide, through tailored travel and membership products, and via Travel + Leisure GO - the signature subscription travel club inspired by the pages of Travel + Leisure magazine. With hospitality and responsible tourism at the heart of all we do, our 19,000+ dedicated associates bring out the best in people and places around the globe. We put the world on vacation. Learn more at travelandleisureco.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as that term is defined by the Securities and Exchange Commission (“SEC”). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as “may,” “will,” “expects,” “should,” “believes,” “plans,” “anticipates,” "intends," “estimates,” “predicts,” “potential,” "projects," “continue,” “future,” "outlook," "guidance," "commitments," or other words of similar meaning. Forward-looking statements are subject to risks and uncertainties that could cause actual results of Travel + Leisure Co. and its subsidiaries (“Travel + Leisure Co.” or “we”) to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that might cause such a difference include, but are not limited to, risks associated with: the acquisition of the Travel + Leisure brand and the future prospects and plans for Travel + Leisure Co., including our ability to execute our strategies to grow our cornerstone timeshare and exchange businesses and expand into the broader leisure travel industry through our travel clubs; our ability to compete in the highly competitive timeshare and leisure travel industries; uncertainties related to acquisitions, dispositions and other strategic transactions; the health of the travel industry and declines or disruptions caused by adverse economic conditions (including inflation, higher interest rates, and recessionary pressures), terrorism or acts of gun violence, political strife, war (including hostilities in
Travel + Leisure Co.
Table of Contents
Table Number
- Condensed Consolidated Statements of Income (Unaudited)
- Summary Data Sheet
- Non-GAAP Measure: Reconciliation of Net Income to Adjusted Net Income to Adjusted EBITDA
- Non-GAAP Measure: Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
- Definitions
Table 1 |
|||||||||||||||
Travel + Leisure Co. Condensed Consolidated Statements of Income (Unaudited) (in millions, except per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net Revenues |
|
|
|
|
|
|
|
||||||||
Service and membership fees |
$ |
413 |
|
|
$ |
424 |
|
|
$ |
832 |
|
|
$ |
844 |
|
Net VOI sales |
|
441 |
|
|
|
401 |
|
|
|
810 |
|
|
|
739 |
|
Consumer financing |
|
111 |
|
|
|
103 |
|
|
|
221 |
|
|
|
206 |
|
Other |
|
20 |
|
|
|
21 |
|
|
|
37 |
|
|
|
40 |
|
Net revenues |
|
985 |
|
|
|
949 |
|
|
|
1,900 |
|
|
|
1,829 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
||||||||
Operating |
|
442 |
|
|
|
427 |
|
|
|
880 |
|
|
|
847 |
|
Cost of vacation ownership interests |
|
21 |
|
|
|
33 |
|
|
|
55 |
|
|
|
64 |
|
Consumer financing interest |
|
33 |
|
|
|
27 |
|
|
|
66 |
|
|
|
52 |
|
Marketing |
|
144 |
|
|
|
127 |
|
|
|
265 |
|
|
|
238 |
|
General and administrative |
|
128 |
|
|
|
114 |
|
|
|
239 |
|
|
|
239 |
|
Depreciation and amortization |
|
28 |
|
|
|
28 |
|
|
|
56 |
|
|
|
55 |
|
Restructuring |
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
11 |
|
Asset recoveries, net |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Total expenses |
|
796 |
|
|
|
766 |
|
|
|
1,561 |
|
|
|
1,505 |
|
Loss on sale of business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Operating income |
|
189 |
|
|
|
183 |
|
|
|
339 |
|
|
|
322 |
|
Interest expense |
|
63 |
|
|
|
61 |
|
|
|
127 |
|
|
|
119 |
|
Other (income), net |
|
(4 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(1 |
) |
Interest (income) |
|
(3 |
) |
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
Income before income taxes |
|
133 |
|
|
|
125 |
|
|
|
225 |
|
|
|
210 |
|
Provision for income taxes |
|
36 |
|
|
|
36 |
|
|
|
62 |
|
|
|
58 |
|
Net income from continuing operations |
|
97 |
|
|
|
89 |
|
|
|
163 |
|
|
|
152 |
|
Gain on disposal of discontinued business, net of income taxes |
|
32 |
|
|
|
5 |
|
|
|
32 |
|
|
|
5 |
|
Net income |
$ |
129 |
|
|
$ |
94 |
|
|
$ |
195 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
1.36 |
|
|
$ |
1.18 |
|
|
$ |
2.29 |
|
|
$ |
1.99 |
|
Discontinued operations |
|
0.46 |
|
|
|
0.07 |
|
|
|
0.45 |
|
|
|
0.07 |
|
|
$ |
1.82 |
|
|
$ |
1.25 |
|
|
$ |
2.74 |
|
|
$ |
2.06 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
1.36 |
|
|
$ |
1.18 |
|
|
$ |
2.28 |
|
|
$ |
1.98 |
|
Discontinued operations |
|
0.45 |
|
|
|
0.07 |
|
|
|
0.45 |
|
|
|
0.07 |
|
|
$ |
1.81 |
|
|
$ |
1.25 |
|
|
$ |
2.73 |
|
|
$ |
2.05 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
70.8 |
|
|
|
75.2 |
|
|
|
71.2 |
|
|
|
76.3 |
|
Diluted |
|
71.0 |
|
|
|
75.5 |
|
|
|
71.5 |
|
|
|
76.8 |
|
Table 2 |
|||||||||||||||||||||
Travel + Leisure Co. Summary Data Sheet (in millions, except per share amounts, unless otherwise indicated) |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Consolidated Results |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to TNL shareholders |
$ |
129 |
|
|
$ |
94 |
|
|
37 |
% |
|
$ |
195 |
|
|
$ |
157 |
|
|
24 |
% |
Diluted earnings per share |
$ |
1.81 |
|
|
$ |
1.25 |
|
|
45 |
% |
|
$ |
2.73 |
|
|
$ |
2.05 |
|
|
33 |
% |
Net income from continuing operations |
$ |
97 |
|
|
$ |
89 |
|
|
9 |
% |
|
$ |
163 |
|
|
$ |
152 |
|
|
7 |
% |
Diluted earnings per share from continuing operations |
$ |
1.36 |
|
|
$ |
1.18 |
|
|
15 |
% |
|
$ |
2.28 |
|
|
$ |
1.98 |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income margin |
|
13.1 |
% |
|
|
9.9 |
% |
|
|
|
|
10.3 |
% |
|
|
8.6 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Earnings |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA |
$ |
244 |
|
|
$ |
236 |
|
|
3 |
% |
|
$ |
435 |
|
|
$ |
420 |
|
|
4 |
% |
Adjusted net income |
$ |
108 |
|
|
$ |
100 |
|
|
8 |
% |
|
$ |
177 |
|
|
$ |
170 |
|
|
4 |
% |
Adjusted diluted earnings per share |
$ |
1.52 |
|
|
$ |
1.33 |
|
|
14 |
% |
|
$ |
2.48 |
|
|
$ |
2.21 |
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Vacation Ownership |
$ |
807 |
|
|
$ |
768 |
|
|
5 |
% |
|
$ |
1,533 |
|
|
$ |
1,453 |
|
|
6 |
% |
Travel and Membership |
|
177 |
|
|
|
179 |
|
|
(1 |
)% |
|
|
370 |
|
|
|
379 |
|
|
(2 |
)% |
Corporate and other |
|
1 |
|
|
|
2 |
|
|
|
|
|
(3 |
) |
|
|
(3 |
) |
|
|
||
Total |
$ |
985 |
|
|
$ |
949 |
|
|
4 |
% |
|
$ |
1,900 |
|
|
$ |
1,829 |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Vacation Ownership |
$ |
206 |
|
|
$ |
187 |
|
|
10 |
% |
|
$ |
340 |
|
|
$ |
319 |
|
|
7 |
% |
Travel and Membership |
|
62 |
|
|
|
62 |
|
|
— |
% |
|
|
137 |
|
|
|
133 |
|
|
3 |
% |
Segment Adjusted EBITDA |
|
268 |
|
|
|
249 |
|
|
|
|
|
477 |
|
|
|
452 |
|
|
|
||
Corporate and other |
|
(24 |
) |
|
|
(13 |
) |
|
|
|
|
(42 |
) |
|
|
(32 |
) |
|
|
||
Total Adjusted EBITDA |
$ |
244 |
|
|
$ |
236 |
|
|
3 |
% |
|
$ |
435 |
|
|
$ |
420 |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margin |
|
24.8 |
% |
|
|
24.9 |
% |
|
|
|
|
22.9 |
% |
|
|
23.0 |
% |
|
|
||
Note: Amounts may not calculate due to rounding. See "Presentation of Financial Information" and Table 5 for Non-GAAP definitions. For a full reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, refer to Table 3. |
Table 2 (continued) |
|||||||||||||||||
Travel + Leisure Co. Summary Data Sheet (in millions, unless otherwise indicated) |
|||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
Change |
|
|
2024 |
|
|
2023 |
|
Change |
||
Vacation Ownership |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net VOI sales |
$ |
441 |
|
$ |
401 |
|
10 |
% |
|
$ |
810 |
|
$ |
739 |
|
10 |
% |
Loan loss provision |
|
113 |
|
|
86 |
|
31 |
% |
|
|
191 |
|
|
158 |
|
21 |
% |
Gross VOI sales, net of Fee-for-Service sales |
|
554 |
|
|
487 |
|
14 |
% |
|
|
1,001 |
|
|
896 |
|
12 |
% |
Fee-for-Service sales |
|
53 |
|
|
70 |
|
(24 |
)% |
|
|
95 |
|
|
115 |
|
(17 |
)% |
Gross VOI sales |
$ |
607 |
|
$ |
557 |
|
9 |
% |
|
$ |
1,096 |
|
$ |
1,011 |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tours (in thousands) |
|
192 |
|
|
170 |
|
13 |
% |
|
|
347 |
|
|
305 |
|
14 |
% |
VPG (in dollars) |
$ |
3,051 |
|
$ |
3,150 |
|
(3 |
)% |
|
$ |
3,044 |
|
$ |
3,179 |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tour generated VOI sales |
$ |
586 |
|
$ |
537 |
|
9 |
% |
|
$ |
1,055 |
|
$ |
970 |
|
9 |
% |
Telesales and other |
|
21 |
|
|
20 |
|
5 |
% |
|
|
41 |
|
|
41 |
|
— |
% |
Gross VOI sales |
$ |
607 |
|
$ |
557 |
|
9 |
% |
|
$ |
1,096 |
|
$ |
1,011 |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net VOI sales |
$ |
441 |
|
$ |
401 |
|
10 |
% |
|
$ |
810 |
|
$ |
739 |
|
10 |
% |
Property management revenue |
|
210 |
|
|
205 |
|
2 |
% |
|
|
421 |
|
|
404 |
|
4 |
% |
Consumer financing |
|
111 |
|
|
103 |
|
8 |
% |
|
|
221 |
|
|
206 |
|
7 |
% |
Other (a) |
|
45 |
|
|
59 |
|
(24 |
)% |
|
|
81 |
|
|
104 |
|
(22 |
)% |
Total Vacation Ownership revenue |
$ |
807 |
|
$ |
768 |
|
5 |
% |
|
$ |
1,533 |
|
$ |
1,453 |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Travel and Membership |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Avg. number of exchange members (in thousands) |
|
3,450 |
|
|
3,502 |
|
(1 |
)% |
|
|
3,472 |
|
|
3,507 |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transactions (in thousands) |
|
220 |
|
|
236 |
|
(6 |
)% |
|
|
495 |
|
|
536 |
|
(8 |
)% |
Revenue per transaction (in dollars) |
$ |
366 |
|
$ |
359 |
|
2 |
% |
|
$ |
357 |
|
$ |
352 |
|
1 |
% |
Exchange transaction revenue |
$ |
81 |
|
$ |
85 |
|
(5 |
)% |
|
$ |
177 |
|
$ |
189 |
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transactions (in thousands) |
|
179 |
|
|
180 |
|
(1 |
)% |
|
|
349 |
|
|
356 |
|
(2 |
)% |
Revenue per transaction (in dollars) |
$ |
251 |
|
$ |
229 |
|
10 |
% |
|
$ |
254 |
|
$ |
238 |
|
7 |
% |
Travel Club transaction revenue |
$ |
45 |
|
$ |
41 |
|
9 |
% |
|
$ |
89 |
|
$ |
85 |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transactions (in thousands) |
|
399 |
|
|
416 |
|
(4 |
)% |
|
|
844 |
|
|
891 |
|
(5 |
)% |
Revenue per transaction (in dollars) |
$ |
315 |
|
$ |
303 |
|
4 |
% |
|
$ |
315 |
|
$ |
307 |
|
3 |
% |
Travel and Membership transaction revenue |
$ |
126 |
|
$ |
126 |
|
— |
% |
|
$ |
266 |
|
$ |
273 |
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transaction revenue |
$ |
126 |
|
$ |
126 |
|
— |
% |
|
$ |
266 |
|
$ |
273 |
|
(3 |
)% |
Subscription revenue |
|
44 |
|
|
46 |
|
(4 |
)% |
|
|
90 |
|
|
91 |
|
(1 |
)% |
Other (b) |
|
7 |
|
|
7 |
|
— |
% |
|
|
14 |
|
|
15 |
|
(7 |
)% |
Total Travel and Membership revenue |
$ |
177 |
|
$ |
179 |
|
(1 |
)% |
|
$ |
370 |
|
$ |
379 |
|
(2 |
)% |
Note: Amounts may not compute due to rounding. |
|||||||||||||||||
(a) Includes Fee-for-Service commission revenues and other ancillary revenues. |
|||||||||||||||||
(b) Primarily related to cancellation fees, commissions, and other ancillary revenue. |
Table 3 |
|||||||||||||||||||
Travel + Leisure Co. Non-GAAP Measure: Reconciliation of Net Income to Adjusted Net Income to Adjusted EBITDA (in millions, except diluted per share amounts) |
|||||||||||||||||||
|
Three Months Ended June 30, |
||||||||||||||||||
|
2024 |
EPS |
Margin % |
2023 |
EPS |
Margin % |
|||||||||||||
Net income attributable to TNL shareholders |
$ |
129 |
|
|
$ |
1.81 |
|
13.1 |
% |
|
$ |
94 |
|
|
$ |
1.25 |
|
9.9 |
% |
Gain on disposal of discontinued business, net of income taxes |
|
(32 |
) |
|
|
|
|
|
|
(5 |
) |
|
|
|
|
||||
Net income from continuing operations |
$ |
97 |
|
|
$ |
1.36 |
|
9.8 |
% |
|
$ |
89 |
|
|
$ |
1.18 |
|
9.4 |
% |
Legacy items |
|
12 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
||||
Amortization of acquired intangibles (a) |
|
2 |
|
|
|
|
|
|
|
3 |
|
|
|
|
|
||||
Restructuring |
|
— |
|
|
|
|
|
|
|
11 |
|
|
|
|
|
||||
Taxes (b) |
|
(4 |
) |
|
|
|
|
|
|
(5 |
) |
|
|
|
|
||||
Adjusted net income |
$ |
108 |
|
|
$ |
1.52 |
|
11.0 |
% |
|
$ |
100 |
|
|
$ |
1.33 |
|
10.5 |
% |
Income taxes on adjusted net income |
|
40 |
|
|
|
|
|
|
|
41 |
|
|
|
|
|
||||
Interest expense |
|
63 |
|
|
|
|
|
|
|
61 |
|
|
|
|
|
||||
Depreciation |
|
26 |
|
|
|
|
|
|
|
25 |
|
|
|
|
|
||||
Stock-based compensation expense (c) |
|
11 |
|
|
|
|
|
|
|
12 |
|
|
|
|
|
||||
Interest income |
|
(3 |
) |
|
|
|
|
|
|
(3 |
) |
|
|
|
|
||||
Adjusted EBITDA |
$ |
244 |
|
|
|
|
24.8 |
% |
|
$ |
236 |
|
|
|
|
24.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted Shares Outstanding |
|
71.0 |
|
|
|
|
|
|
|
75.5 |
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||||||||||||
|
2024 |
|
EPS |
|
Margin % |
|
2023 |
|
EPS |
|
Margin % |
||||||||
Net income attributable to TNL shareholders |
$ |
195 |
|
|
$ |
2.73 |
|
10.3 |
% |
|
$ |
157 |
|
|
$ |
2.05 |
|
8.6 |
% |
Gain on disposal of discontinued business, net of income taxes |
|
(32 |
) |
|
|
|
|
|
|
(5 |
) |
|
|
|
|
||||
Net income from continuing operations |
$ |
163 |
|
|
$ |
2.28 |
|
8.6 |
% |
|
$ |
152 |
|
|
$ |
1.98 |
|
8.3 |
% |
Legacy items |
|
13 |
|
|
|
|
|
|
|
7 |
|
|
|
|
|
||||
Amortization of acquired intangibles (a) |
|
5 |
|
|
|
|
|
|
|
5 |
|
|
|
|
|
||||
Acquisition-related deal costs |
|
2 |
|
|
|
|
|
|
|
— |
|
|
|
|
|
||||
Restructuring |
|
— |
|
|
|
|
|
|
|
11 |
|
|
|
|
|
||||
Loss on sale of business (d) |
|
— |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
||||
Taxes (b) |
|
(6 |
) |
|
|
|
|
|
|
(7 |
) |
|
|
|
|
||||
Adjusted net income |
$ |
177 |
|
|
$ |
2.48 |
|
9.3 |
% |
|
$ |
170 |
|
|
$ |
2.21 |
|
9.3 |
% |
Income taxes on adjusted net income |
|
68 |
|
|
|
|
|
|
|
65 |
|
|
|
|
|
||||
Interest expense |
|
127 |
|
|
|
|
|
|
|
119 |
|
|
|
|
|
||||
Depreciation |
|
51 |
|
|
|
|
|
|
|
50 |
|
|
|
|
|
||||
Stock-based compensation expense (c) |
|
20 |
|
|
|
|
|
|
|
22 |
|
|
|
|
|
||||
Interest income |
|
(8 |
) |
|
|
|
|
|
|
(6 |
) |
|
|
|
|
||||
Adjusted EBITDA |
$ |
435 |
|
|
|
|
22.9 |
% |
|
$ |
420 |
|
|
|
|
23.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted Shares Outstanding |
|
71.5 |
|
|
|
|
|
|
|
76.8 |
|
|
|
|
|
||||
Amounts may not calculate due to rounding. The tables above reconcile certain non-GAAP financial measures to their closest GAAP measure. The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the income statement in order to assist investors' understanding of the overall impact of such adjustments. In addition to GAAP financial measures, the Company provides Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted diluted EPS to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by adjusting for certain items which in our view do not necessarily reflect ongoing performance. We also internally use these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. These supplemental disclosures are in addition to GAAP reported measures. Non-GAAP measures should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP. Our presentation of adjusted measures may not be comparable to similarly-titled measures used by other companies. See "Presentation of Financial Information" and table 5 for the definitions of these non-GAAP measures. |
(a) |
Amortization of acquisition-related intangible assets is excluded from Adjusted net income and Adjusted EBITDA. |
|
(b) |
Represents the tax effects on the adjustments. We determine the tax effects of the non-GAAP adjustments based on the nature of the underlying adjustment and the relevant tax jurisdictions. The tax effect of the non-GAAP adjustments was calculated based on an evaluation of the statutory tax treatment and the applicable statutory tax rate in the relevant jurisdictions. |
|
(c) |
All stock-based compensation is excluded from Adjusted EBITDA. |
|
(d) |
Represents the loss on sale of the Love Home Swap business. |
Table 4 |
|||||||||||||||
Travel + Leisure Co. Non-GAAP Measure: Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow (in millions) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
174 |
|
|
$ |
103 |
|
|
$ |
221 |
|
|
$ |
110 |
|
Property and equipment additions |
|
(21 |
) |
|
|
(16 |
) |
|
|
(38 |
) |
|
|
(28 |
) |
Sum of proceeds and principal payments of non-recourse vacation ownership debt |
|
(63 |
) |
|
|
(68 |
) |
|
|
(71 |
) |
|
|
(71 |
) |
Free cash flow / Adjusted free cash flow (a) |
$ |
90 |
|
|
$ |
19 |
|
|
$ |
112 |
|
|
$ |
11 |
|
(a) |
The Company had |
Table 5
Definitions
Adjusted Diluted Earnings per Share: A non-GAAP measure, defined by the Company as Adjusted net income divided by the diluted weighted average number of common shares. Adjusted Diluted Earnings per Share is useful to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods.
Adjusted EBITDA: A non-GAAP measure, defined by the Company as net income from continuing operations before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes, each of which is presented on the Condensed Consolidated Statements of Income. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction costs for acquisitions and divestitures, asset impairments/recoveries, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. Legacy items include the resolution of and adjustments to certain contingent assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels & Resorts, Inc. and Cendant, and the sale of the vacation rentals businesses. We believe that when considered with GAAP measures, Adjusted EBITDA is useful to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods. We also internally use these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions. Adjusted EBITDA should not be considered in isolation or as a substitute for net income/(loss) or other income statement data prepared in accordance with GAAP and our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
Adjusted EBITDA Margin: A non-GAAP measure, represents Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA Margin is useful to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods.
Adjusted Free Cash Flow: A non-GAAP measure, defined by the Company as net cash provided by operating activities from continuing operations less property and equipment additions (capital expenditures) plus the sum of proceeds and principal payments of non-recourse vacation ownership debt, while also adding back cash paid for transaction costs for acquisitions and divestitures, separation adjustments associated with the spin-off of Wyndham Hotels, and certain adjustments related to COVID-19. TNL believes adjusted FCF to be a useful operating performance measure to evaluate the ability of its operations to generate cash for uses other than capital expenditures and, after debt service and other obligations, its ability to grow its business through acquisitions and equity investments, as well as its ability to return cash to shareholders through dividends and share repurchases. A limitation of using Adjusted free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating TNL is that Adjusted free cash flow does not represent the total cash movement for the period as detailed in the consolidated statement of cash flows.
Adjusted Free Cash Flow Conversion: A non-GAAP measure, defined by the Company as Adjusted free cash flow as a percentage of Adjusted EBITDA. We use this non-GAAP performance measure to assist in evaluating our operating performance and the quality of our earnings as represented by adjusted EBITDA, and to evaluate the performance of our current and prospective operating and strategic initiatives in generating cash flows from our earnings performance. This measure also assists investors in evaluating our operating performance, management of our assets, and ability to generate cash flows from our earnings, as well as facilitating period-to-period comparisons.
Adjusted Net Income: A non-GAAP measure, defined by the Company as net income from continuing operations adjusted to exclude separation and restructuring costs, legacy items, transaction costs for acquisitions and divestitures, amortization of acquisition-related assets, debt modification costs, impairments, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent and the tax effect of such adjustments. Legacy items include the resolution of and adjustments to certain contingent assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels and Cendant, and the sale of the vacation rentals businesses. Adjusted Net Income is useful to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods.
Average Number of Exchange Members: Represents the average number of paid members in our vacation exchange programs who are considered to be in good standing, during a given reporting period.
Free Cash Flow (FCF): A non-GAAP measure, defined by TNL as net cash provided by operating activities from continuing operations less property and equipment additions (capital expenditures) plus the sum of proceeds and principal payments of non-recourse vacation ownership debt. TNL believes FCF to be a useful operating performance measure to evaluate the ability of its operations to generate cash for uses other than capital expenditures and, after debt service and other obligations, its ability to grow its business through acquisitions and equity investments, as well as its ability to return cash to shareholders through dividends and share repurchases. A limitation of using FCF versus the GAAP measure of net cash provided by operating activities as a means for evaluating TNL is that FCF does not represent the total cash movement for the period as detailed in the consolidated statement of cash flows.
Gross Vacation Ownership Interest Sales: A non-GAAP measure, represents sales of vacation ownership interests (VOIs), including sales under the fee-for-service program before the effect of loan loss provisions. We believe that Gross VOI sales provide an enhanced understanding of the performance of our vacation ownership business because it directly measures the sales volume of this business during a given reporting period.
Leverage Ratio: The Company calculates leverage ratio as net debt divided by Adjusted EBITDA as defined in the credit agreement.
Net Debt: Net debt equals total debt outstanding, less non-recourse vacation ownership debt and cash and cash equivalents.
Tours: Represents the number of tours taken by guests in our efforts to sell VOIs.
Travel and Membership Revenue per Transaction: Represents transaction revenue divided by transactions, provided in two categories; Exchange, which is primarily RCI, and Travel Club.
Travel and Membership Transactions: Represents the number of exchanges and travel bookings recognized as revenue during the period, net of cancellations. This measure is provided in two categories; Exchange, which is primarily RCI, and Travel Club.
Volume Per Guest (VPG): Represents Gross VOI sales (excluding telesales and virtual sales) divided by the number of tours. The Company has excluded non-tour sales in the calculation of VPG because non-tour sales are generated by a different marketing channel. We believe that VPG provides an enhanced understanding of the performance of our Vacation Ownership business because it directly measures the efficiency of its tour selling efforts during a given reporting period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724555836/en/
Investors:
Jill Greer
Investor Relations
(407) 626-4050
Jill.Greer@travelandleisure.com
Media:
Steven Goldsmith
Public Relations
(407) 626-5882
Steven.Goldsmith@travelandleisure.com
Source: Travel + Leisure Co.
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