| 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. |
| This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250219241853/en/ |
| Fourth quarter 2024 highlights: |
- Net income of $119 million (diluted EPS of $1.72) on net revenue of $971 million
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- Adjusted EBITDA of $252 million and Adjusted diluted EPS of $1.72 (1)
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- Repurchased $70 million of common stock during the fourth quarter
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| Full-year 2024 highlights: |
- Net income of $411 million (diluted EPS of $5.82) on net revenue of $3.9 billion
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- Adjusted EBITDA of $929 million and Adjusted diluted EPS of $5.75(1)
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- Net cash provided by operating activities of $464 million and Adjusted free cash flow of $446 million(1)
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- Repurchased $235 million of common stock during the full year
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| Outlook: |
- The full Year 2025 Adjusted EBITDA is expected to range from $955 million to $985 million and the first-quarter 2025 Adjusted EBITDA is expected to range from $195 million to $205 million.
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- The Company will recommend increasing the first quarter 2025 dividend to $0.56 per share for approval by the Board of Directors.
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| “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 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 by 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. |
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| 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% |
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| 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% |
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| 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 of $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 guiding for the 2025 full year: |
- Adjusted EBITDA to range from $955 million to $985 million.
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- Gross VOI sales of $2.4 billion to $2.5 billion
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|
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- Travel and Membership Adjusted EBITDA growth of flat to up 2%
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| The Company is guiding for the first quarter of 2025: |
- Adjusted EBITDA to range from $195 million to $205 million
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- Gross VOI sales of $495 million to $515 million
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| 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 are applicable, some items could be material, individually or in the aggregate, to GAAP reported results. |
| For the full document click the link below: |
| Travel + Leisure Co |
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