Travel + Leisure Co. (NYSE:TNL), the world’s leading vacation
ownership and membership travel company, today reported fourth
quarter and full-year 2024 financial results for the period ended
December 31, 2024.
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Fourth quarter 2024 highlights:
- Net income of $119 million (diluted EPS of $1.72) on
net revenue of $971 million
- Adjusted EBITDA of $252 million and Adjusted diluted EPS of
$1.72 (1)
- Repurchased $70 million of common stock during the fourth
quarter
Full-year 2024 highlights:
- Net income of $411 million (diluted EPS of $5.82) on net
revenue of $3.9 billion
- Adjusted EBITDA of $929 million and Adjusted diluted EPS of
$5.75(1)
- Net cash provided by operating activities of $464 million
and Adjusted free cash flow of $446 million(1)
- Repurchased $235 million of common stock during the
full-year
Outlook:
- Full Year 2025 Adjusted EBITDA expected to range from $955
million to $985 million and first quarter 2025 Adjusted EBITDA
expected to range from $195 million to $205 million
- The Company will recommend increasing first quarter 2025
dividend to $0.56 per share for approval by the Board of
Directors
“2024 was a tremendous year for the Company, as we met the high
expectations for our performance by delivering strong top and
bottom-line growth, while executing on our multi-brand strategy
with the acquisition of Accor Vacation Club,” said Michael D.
Brown, President and CEO of Travel + Leisure Co. “Our strong
financial performance was driven by adjusted EBITDA and vacation
ownership sales volume per guest (VPG) at the top end, or above,
our initial guidance, as consumers continued to prioritize their
vacations with us.
“Looking ahead to 2025, we expect to see continued profitable
growth in our expanding vacation ownership business, which is the
cornerstone of our investment strategy - a focus on growing
earnings and free cash flow to benefit our shareholders.”
(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 U.S. (“GAAP”). See "Presentation of Financial
Information" and the tables for the definitions and reconciliations
of these non-GAAP measures. Forward-looking non-GAAP measures are
presented in this press release only on a non-GAAP basis because
not all of the information necessary for a quantitative
reconciliation is available without unreasonable effort.
Business Segment Results
The results of operations during the fourth quarter and
full-year of 2024 and 2023.
Vacation Ownership
$ in millions
Q4 2024
Q4 2023
% change
FY 2024
FY 2023
% change
Revenue
$813
$776
5%
$3,171
$3,041
4%
Adjusted EBITDA
$222
$208
7%
$764
$729
5%
Vacation Ownership revenue increased 5% to $813 million in the
fourth quarter of 2024 compared to the same period in the prior
year. Net vacation ownership interest (VOI) sales increased 11%
year over year despite a higher provision rate. Gross VOI sales
increased 10% driven by a 7% increase in VPG and a 2% increase in
tours.
Fourth quarter Adjusted EBITDA was $222 million compared to $208
million in the prior year period, due to revenue growth and lower
costs of VOIs sold.
Travel and Membership
$ in millions
Q4 2024
Q4 2023
% change
FY 2024
FY 2023
% change
Revenue
$157
$158
(1)%
$695
$711
(2)%
Adjusted EBITDA
$52
$52
—%
$251
$247
2%
Travel and Membership revenue decreased 1% to $157 million in
the fourth quarter of 2024 compared to the same period in the prior
year. This was driven by a 4% decrease in subscription revenue
offset by a 1% increase in transaction revenue due to strong Travel
Clubs performance with a 9% increase in transactions and a 6%
increase in revenue per transaction.
Fourth quarter Adjusted EBITDA was $52 million, flat to the
prior year period.
Balance Sheet and
Liquidity
Net Debt — As of December 31, 2024, the Company's
leverage ratio for covenant purposes was 3.3x. The Company had $3.5
billion of corporate debt outstanding as of December 31, 2024,
which excluded $2.1 billion of non-recourse debt related to its
securitized notes receivables portfolio. Additionally, the Company
had cash and cash equivalents of $167 million. At the end of the
fourth quarter, the Company had $970 million of liquidity in cash
and cash equivalents and revolving credit facility
availability.
The Company amended the credit agreement governing its revolving
credit and Term Loan B facilities on December 10, 2024. This
amendment refinanced $282 million of outstanding borrowings due in
May 2025 and repriced the remaining $593 million term loans due in
2029. This accomplished the dual benefit of maturity extension and
lower overall corporate interest expense. The 2024 Term Loan B
facility matures on December 14, 2029.
Timeshare Receivables Financing — The Company closed on a
$325 million term securitization on October 18, 2024 with a
weighted average coupon of 5.18% and a 98.0% advance rate.
Cash Flow — For the full-year 2024, net cash provided by
operating activities was $464 million compared to $350 million in
the prior year. Adjusted free cash flow was $446 million in 2024
compared to $379 million in the prior year. These increases in 2024
were primarily attributable to an increase in net income, higher
non-cash expenses, and lower cash tax payments.
Share Repurchases — During the fourth quarter of 2024,
the Company repurchased 1.4 million shares of common stock for $70
million at an average price of $50.91 per share. For the full-year
2024, the Company repurchased 5.2 million shares of common stock
for $235 million at an average price of $45.73 per share. As of
December 31, 2024, the Company had $441 million remaining in its
share repurchase authorization.
Dividend — The Company paid $34 million ($0.50 per share)
in cash dividends on December 31, 2024 to shareholders of record as
of December 13, 2024. For the full-year 2024, Travel + Leisure Co.
paid an aggregate $142 million in dividends to shareholders.
Management will recommend a first quarter dividend of $0.56 per
share for approval by the Company's Board of Directors in March
2025.
Outlook
The Company is providing guidance for the 2025 full year:
- Adjusted EBITDA to range from $955 million to $985
million.
- Gross VOI sales of $2.4 billion to $2.5 billion
- VPG of $3,050 to $3,150
- Travel and Membership Adjusted EBITDA growth of flat to up
2%
The Company is providing guidance for the first quarter
2025:
- Adjusted EBITDA to range from $195 million to $205 million
- Gross VOI sales of $495 million to $515 million
- VPG of $3,150 to $3,250
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
7, 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.
Travel + Leisure Co. (NYSE:TNL) is the world’s leading vacation
ownership and membership travel company, providing more than six
million vacations to travelers every year. The company operates a
portfolio of vacation ownership, travel club, and lifestyle travel
brands designed to meet the needs of the modern leisure traveler,
whether they’re traveling the world or staying a little closer to
home. With hospitality and responsible tourism at its heart, the
company’s 19,000 dedicated associates around the globe help the
company achieve its mission to 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,” "outlook," "guidance," “plans,”
“anticipates,” “estimates,” “predicts,” “potential,” “continue,”
“future” 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 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 Ukraine and the
Middle East), pandemics, and severe weather events and other
natural disasters; adverse changes in consumer travel and vacation
patterns, consumer preferences and demand for our products;
increased or unanticipated operating costs and other inherent
business risks; our ability to comply with financial and
restrictive covenants under our indebtedness; our ability to access
capital and insurance markets on reasonable terms, at a reasonable
cost or at all; maintaining the integrity of internal or customer
data and protecting our systems from cyber-attacks; the timing and
amount of future dividends and share repurchases, if any; and those
other factors disclosed as risks under “Risk Factors” in documents
we have filed with the SEC, including in Part I, Item 1A of our
Annual Report on Form 10-K most recently filed with the SEC. We
caution readers that any such statements are based on currently
available operational, financial and competitive information, and
they should not place undue reliance on these forward-looking
statements, which reflect management’s opinion only as of the date
on which they were made. Except as required by law, we undertake no
obligation to review or update these forward-looking statements to
reflect events or circumstances as they occur.
Travel + Leisure Co. Table of Contents
Table Number
- Consolidated Statements of Income (Unaudited)
- Consolidated Balance Sheets
- Consolidated Statements of Cash Flows
- 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.
Consolidated Statements of Income
(Unaudited)
(in millions, except per share
amounts)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Net revenues
Net VOI sales
$
456
$
410
$
1,721
$
1,582
Service and membership fees
375
386
1,607
1,649
Consumer financing
115
114
450
427
Other
25
25
86
92
Net revenues
971
935
3,864
3,750
Expenses
Operating
430
409
1,744
1,684
Marketing
134
128
550
507
General and administrative
124
107
475
454
Consumer financing interest
35
31
136
112
Depreciation and amortization
29
29
115
112
Cost of vacation ownership interests
10
25
92
133
Restructuring
2
14
16
26
Asset impairments, net
1
1
3
—
Total expenses
765
744
3,131
3,028
Loss on sale of business
—
—
—
2
Operating income
206
191
733
720
Interest expense
59
68
249
251
Interest (income)
(2
)
(4
)
(14
)
(13
)
Other (income), net
(9
)
—
(15
)
(3
)
Income before income taxes
158
127
513
485
Provision/(benefit) for income taxes
40
(2
)
135
94
Income from continuing
operations
118
129
378
391
Gain on disposal of discontinued business,
net of income taxes
1
—
33
5
Net income attributable to TNL
shareholders
$
119
$
129
$
411
$
396
Basic earnings per share
Continuing operations
$
1.73
$
1.78
$
5.39
$
5.24
Discontinued operations
0.02
—
0.48
0.07
$
1.75
$
1.78
$
5.87
$
5.31
Diluted earnings per share
Continuing operations
$
1.70
$
1.77
$
5.35
$
5.21
Discontinued operations
0.02
—
0.47
0.07
$
1.72
$
1.77
$
5.82
$
5.28
Weighted average shares
outstanding
Basic
68.1
72.2
70.1
74.5
Diluted
69.2
72.7
70.7
75.0
Table 2
Travel + Leisure Co.
Consolidated Balance Sheets
(in millions, except share
data)
December 31, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
167
$
282
Restricted cash (VIE - $92 as of 2024 and
$96 as of 2023)
162
176
Trade receivables, net
155
179
Vacation ownership contract receivables,
net (VIE - $2,293 as of 2024 and $2,291 as of 2023)
2,619
2,527
Inventory
1,227
1,135
Prepaid expenses
214
229
Property and equipment, net
591
655
Goodwill
966
962
Other intangibles, net
209
199
Other assets
425
394
Total assets
$
6,735
$
6,738
Liabilities and (deficit)
Accounts payable
$
67
$
73
Accrued expenses and other liabilities
778
807
Deferred income
457
442
Non-recourse vacation ownership debt
(VIE)
2,123
2,071
Debt
3,468
3,575
Deferred income taxes
722
687
Total liabilities
7,615
7,655
Stockholders' (deficit):
Preferred stock, $0.01 par value,
authorized 6,000,000 shares, none issued and outstanding
—
—
Common stock, $0.01 par value, 600,000,000
shares authorized, 224,599,556 issued as of 2024 and 223,767,468 as
of 2023
2
2
Treasury stock, at cost – 157,476,502
shares as of 2024 and 152,336,714 shares as of 2023
(7,433
)
(7,196
)
Additional paid-in capital
4,328
4,279
Retained earnings
2,334
2,067
Accumulated other comprehensive loss
(112
)
(70
)
Total stockholders’ (deficit)
(881
)
(918
)
Noncontrolling interest
1
1
Total (deficit)
(880
)
(917
)
Total liabilities and (deficit)
$
6,735
$
6,738
Table 3
Travel + Leisure Co.
Consolidated Statements of Cash
Flows
(in millions)
December 31, 2024
December 31, 2023
Operating Activities
Net income
$
411
$
396
Gain on disposal of discontinued business,
net of income taxes
(33
)
(5
)
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses
432
348
Depreciation and amortization
115
112
Stock-based compensation
41
38
Deferred income taxes
26
8
Non-cash interest
25
22
Non-cash lease expense
12
16
Asset impairments, net
3
—
Loss on sale of business
—
2
Other, net
(1
)
(3
)
Net change in assets and liabilities,
excluding impact of acquisitions and dispositions:
Trade receivables
35
(18
)
Vacation ownership contract
receivables
(549
)
(504
)
Inventory
(16
)
25
Prepaid expenses
14
(27
)
Other assets
(42
)
(20
)
Accounts payable, accrued expenses, and
other liabilities
(19
)
(70
)
Deferred income
10
30
Net cash provided by operating
activities
464
350
Investing Activities
Property and equipment additions
(81
)
(74
)
Acquisitions, net of cash acquired
(44
)
(6
)
Proceeds from sale of assets
1
—
Other, net
(1
)
—
Net cash used in investing activities -
continuing operations
(125
)
(80
)
Net cash provided by/(used in) investing
activities - discontinued operations
1
—
Net cash used in investing
activities
(124
)
(80
)
Financing Activities
Proceeds from non-recourse vacation
ownership debt
1,805
1,926
Principal payments on non-recourse
vacation ownership debt
(1,743
)
(1,823
)
Proceeds from debt
1,910
1,732
Principal payments on debt
(1,724
)
(1,741
)
Proceeds from notes issued and term
loan
—
299
Repayment of notes and term loans
(307
)
(405
)
Repurchase of common stock
(234
)
(309
)
Dividends to shareholders
(142
)
(136
)
Debt issuance/modification costs
(20
)
(22
)
Payment of deferred acquisition
consideration
(9
)
(14
)
Net share settlement of incentive equity
awards
(9
)
(10
)
Repayments of vacation ownership inventory
arrangement
—
(6
)
Proceeds from issuance of common stock
15
9
Net cash used in financing
activities
(458
)
(500
)
Effect of changes in exchange rates on
cash, cash equivalents and restricted cash
(11
)
—
Net change in cash, cash equivalents and
restricted cash
(129
)
(230
)
Cash, cash equivalents and restricted
cash, beginning of period
458
688
Cash, cash equivalents and restricted
cash, end of period
329
458
Less: Restricted cash
162
176
Cash and cash equivalents
$
167
$
282
Table 4
Travel + Leisure Co.
Summary Data Sheet
(in millions, except per share
amounts, unless otherwise indicated)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
Change
2024
2023
Change
Consolidated Results
Net income attributable to TNL
shareholders
$
119
$
129
(8
)%
$
411
$
396
4
%
Diluted earnings per share
$
1.72
$
1.77
(3
)%
$
5.82
$
5.28
10
%
Income from continuing operations
$
118
$
129
(9
)%
$
378
$
391
(3
)%
Diluted earnings per share from continuing
operations
$
1.70
$
1.77
(4
)%
$
5.35
$
5.21
3
%
Net income margin
12.3
%
13.8
%
10.6
%
10.6
%
Adjusted Earnings
Adjusted EBITDA
$
252
$
240
5
%
$
929
$
908
2
%
Adjusted net income
$
119
$
144
(17
)%
$
406
$
427
(5
)%
Adjusted diluted earnings per share
$
1.72
$
1.98
(13
)%
$
5.75
$
5.70
1
%
Segment Results
Net Revenues
Vacation Ownership
$
813
$
776
5
%
$
3,171
$
3,041
4
%
Travel and Membership
157
158
(1
)%
695
711
(2
)%
Corporate and other
1
1
(2
)
(2
)
Total
$
971
$
935
4
%
$
3,864
$
3,750
3
%
Adjusted EBITDA
Vacation Ownership
$
222
$
208
7
%
$
764
$
729
5
%
Travel and Membership
52
52
—
%
251
247
2
%
Segment Adjusted EBITDA
274
260
1,015
976
Corporate and other
(22
)
(20
)
(86
)
(68
)
Total Adjusted EBITDA
$
252
$
240
5
%
$
929
$
908
2
%
Adjusted EBITDA Margin
26.0
%
25.7
%
24.0
%
24.2
%
Note: Amounts may not calculate due to
rounding. See "Presentation of Financial Information" and Table 7
for Non-GAAP definitions. For a full reconciliation of non-GAAP
financial measures to the most directly comparable GAAP financial
measures, refer to Table 5.
Table 4 (continued)
Travel + Leisure Co.
Summary Data Sheet
(in millions, unless otherwise
indicated)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
Change
2024
2023
Change
Vacation
Ownership
Net VOI Sales
$
456
$
410
11
%
$
1,721
$
1,582
9
%
Loan loss provision
117
92
27
%
432
348
24
%
Gross VOI sales, net of Fee-for-Service
sales
573
502
14
%
2,153
1,930
12
%
Fee-for-Service sales
18
38
(51
)%
140
219
(36
)%
Gross VOI sales
$
591
$
540
10
%
$
2,293
$
2,149
7
%
Tours (in thousands)
175
172
2
%
716
663
8
%
VPG (in dollars)
3,284
3,058
7
%
3,094
3,128
(1
)%
Tour generated VOI sales
573
525
9
%
2,216
2,075
7
%
Telesales and other
18
15
22
%
77
74
4
%
Gross VOI sales
591
540
10
%
2,293
2,149
7
%
Net VOI sales
456
410
11
%
1,721
1,582
9
%
Property management revenue
209
204
2
%
845
814
4
%
Consumer financing
115
114
1
%
450
427
5
%
Other (a)
33
48
(31
)%
155
218
(29
)%
Total Vacation Ownership
revenue
813
776
5
%
3,171
3,041
4
%
Travel and
Membership
Avg. number of exchange members (in
thousands)
3,377
3,524
(4
)%
3,427
3,515
(3
)%
Transactions (in thousands)
182
191
(5
)%
889
959
(7
)%
Revenue per transaction (in dollars)
376
375
—
%
360
357
1
%
Exchange transaction revenue
68
72
(5
)%
321
343
(6
)%
Transactions (in thousands)
157
145
9
%
673
679
(1
)%
Revenue per transaction (in dollars)
235
222
6
%
247
230
8
%
Travel Club transaction revenue
37
32
15
%
166
156
6
%
Transactions (in thousands)
339
336
1
%
1,562
1,638
(5
)%
Revenue per transaction (in dollars)
311
310
—
%
312
305
2
%
Travel and Membership transaction
revenue
105
104
1
%
487
499
(2
)%
Transaction revenue
105
104
1
%
487
499
(2
)%
Subscription revenue
44
46
(4
)%
179
183
(2
)%
Other (b)
8
8
—
%
29
29
—
%
Total Travel and Membership
revenue
157
158
(1
)%
695
711
(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 5
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 December
31,
2024
EPS
Margin %
2023
EPS
Margin %
Net income attributable to TNL
shareholders
$
119
$
1.72
12.3
%
$
129
$
1.77
13.8
%
Gain on disposal of discontinued business,
net of income taxes
(1
)
—
Income from continuing
operations
$
118
$
1.70
12.2
%
$
129
$
1.77
13.8
%
Amortization of acquired intangibles
(a)
3
3
Restructuring (b)
2
14
Debt modification
2
1
Asset impairments, net
1
1
Integration costs
1
—
Legacy items
(1
)
—
Fair value change in contingent
consideration
(7
)
—
Taxes (c)
—
(4
)
Adjusted net income
$
119
$
1.72
12.3
%
$
144
1.98
15.4
%
Income taxes on adjusted net income
40
2
Interest expense
59
68
Depreciation
27
26
Stock-based compensation expense (d)
12
5
Debt modification (e)
(2
)
(1
)
Interest (income)
(2
)
(4
)
Adjusted EBITDA
$
252
26.0
%
$
240
25.7
%
Diluted Shares Outstanding
69.2
72.7
Table 5 (continued)
Twelve Months Ended December
31,
2024
EPS
Margin %
2023
EPS
Margin %
Net income attributable to TNL
shareholders
$
411
$
5.82
10.6
%
$
396
$
5.28
10.6
%
Gain on disposal of discontinued business,
net of income taxes
(33
)
(5
)
Income from continuing
operations
$
378
$
5.35
9.8
%
$
391
$
5.21
10.4
%
Restructuring (b)
16
26
Legacy items
11
8
Amortization of acquired intangibles
(a)
10
10
Asset impairments, net (f)
3
1
Acquisition and divestiture related
costs
2
—
Debt modification
2
1
Integration costs
1
—
Loss on sale of business
—
2
Fair value change in contingent
consideration
(7
)
—
Taxes (c)
(10
)
(12
)
Adjusted net income
$
406
$
5.75
10.5
%
$
427
5.70
11.4
%
Income taxes on adjusted net income
145
106
Interest expense
249
251
Depreciation
105
102
Stock-based compensation expense (d)
40
36
Debt modification (e)
(2
)
(1
)
Interest (income)
(14
)
(13
)
Adjusted EBITDA
$
929
24.0
%
$
908
24.2
%
Diluted Shares Outstanding
70.7
75.0
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 7 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)
Includes $2 million stock-based
compensation expenses associated with the 2023 restructuring plan
for the three months ended December 31, 2023. Includes $1 million
stock-based compensation expenses associated with the 2022
restructuring plan for the twelve months ended December 31, 2024
and $2 million of stock-based compensation expenses associated with
the 2023 restructuring plan for the twelve months ended December
31, 2023.
(c)
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.
(d)
All stock-based compensation is excluded
from Adjusted EBITDA.
(e)
Debt modifications are excluded from
Adjusted net income, while included for Adjusted EBITDA.
(f)
Includes $1 million of inventory
impairments for the twelve months ended December 31, 2023, included
in Cost of vacation ownership interests on the Consolidated
Statements of Income.
Table 6
Travel + Leisure Co.
Non-GAAP Measure: Reconciliation
of Net Cash Provided by Operating Activities to Adjusted Free Cash
Flow
(in millions)
Twelve Months Ended
December 31,
2024
2023
Net cash provided by operating
activities
$
464
$
350
Property and equipment additions
(81
)
(74
)
Sum of proceeds and principal payments of
non-recourse vacation ownership debt
62
103
Free cash flow
$
445
$
379
Transaction costs for acquisitions
1
—
Adjusted free cash flow (a)
$
446
$
379
Net income attributable to TNL
shareholders
$
411
$
396
Adjusted EBITDA (b)
$
929
$
908
Net income cash flow conversion
(c)
113
%
88
%
Adjusted free cash flow
conversion
48
%
42
%
(a)
The Company had $124 million of net cash
used in investing and $458 million of net cash used in financing
activities for the year ended December 31, 2024, and $80 million of
net cash used in investing activities and $500 million of net cash
used in financing activities for the year ended December 31,
2023.
(b)
See table 5 for a reconciliation of Net
income to Adjusted EBITDA.
(c)
Represents Net cash provided by operating
activities as a percentage of Net Income.
Table 7
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 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 Consolidated
Statements of Income. Adjusted EBITDA also excludes stock-based
compensation costs, separation and restructuring costs, legacy
items, transaction and integration costs associated with mergers,
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 income from continuing
operations adjusted to exclude separation and restructuring costs,
legacy items, transaction and integration costs associated with
mergers, 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 this
business' efforts in generating sales from tours during a given
reporting period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219241853/en/
Investors: Travel + Leisure Investor Relations (407)
626-4050 IR@travelandleisure.com
Media: Steven Goldsmith Public Relations (407) 626-5882
Steven.Goldsmith@travelandleisure.com
Travel plus Leisure (NYSE:TNL)
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Travel plus Leisure (NYSE:TNL)
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