Financial Data and Key Metrics Changes - The company generated over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all showing year-over-year increases [6][19] - Adjusted EBITDA grew 2% year-over-year, translating to a 4% adjusted EBITDA growth for the first half of the year [19] - The average FICO score of new originations is 746, reflecting a more than 20-point increase since the company updated its credit quality standards [10] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw revenue grow 6% to $853 million, driven by a 3% increase in tours and a VPG of $3,251, which is up 7% from last year [20] - The Travel and Membership segment's revenue was $166 million for the quarter, down 6% year-over-year, with adjusted EBITDA declining 11% to $55 million [22] Market Data and Key Metrics Changes - Demand remains strong across the core timeshare business, with tour growth improving sequentially from the first quarter and 3% compared to 2024 [7] - The company serves more than 800,000 owner families with an average tenure of 17 years, indicating a stable customer base [9] Company Strategy and Development Direction - The company is focused on growing its core vacation ownership business while leveraging data and technology to enhance customer experience [13] - New brand expansions include a new sales location in Nashville and the launch of the Accor Vacation Club in Asia, indicating a strategy of geographic expansion [14][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of leisure travel and the health of consumers, with spending on leisure travel expected to grow mid-single digits per year over the next five years [7] - The company anticipates continued strength in the vacation ownership business, which is expected to cover any weakness in the travel and membership segment [26] Other Important Information - The company returned $107 million of adjusted free cash flow to shareholders during the quarter, with $37 million through dividends and $70 million in share repurchases [23] - The liquidity position remains strong, ending the quarter with over $800 million, including $212 million in cash and cash equivalents [25] Q&A Session Summary Question: Visibility in the Travel and Membership segment - Management acknowledged challenges in the travel membership segment due to industry consolidation and unanticipated impacts from M&A activity, but emphasized proactive measures to address these issues [31][32] Question: Average transaction size and financing - Management noted that the increase in average transaction size is due to measured price increases and greater owner engagement, with no significant change in the propensity to finance [35][38] Question: Delinquency trends and provisions - Delinquencies moderated through the second quarter and into July, with a full-year provision of 21% expected, and management is confident in the portfolio's strength [46][47] Question: Consumer health and income stratification - Management indicated that higher household incomes correlate with better performance and lower delinquencies, while new owner performance remains strong despite economic uncertainties [56][58] Question: International opportunities with Accor - Management expressed optimism about the international market potential but emphasized that the U.S. market remains the primary focus, with expectations for similar profitability margins internationally [74][78] Question: New projects and brand launches - Management highlighted the strategic importance of new brands like Margaritaville and Sports Illustrated, which are expected to contribute significantly to sales growth [90][91]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted EBITDA of $202 million, an increase of 6% year-over-year, and adjusted diluted earnings per share of $1.11, up 14% [25] - Consolidated adjusted EBITDA margins improved from 21% in the prior year to 22% [9] - The company returned $111 million to shareholders through dividends and share repurchases in Q1 [31] Business Line Data and Key Metrics Changes - The vacation ownership segment reported revenue of $755 million, a 4% increase, with adjusted EBITDA rising 18% to $159 million [25] - The travel and membership segment saw revenue decline to $180 million, down 7%, and adjusted EBITDA decreased by 9% to $68 million, driven by a 13% drop in exchange transactions [27] Market Data and Key Metrics Changes - The average age of owners is 59 years, with a household income exceeding $110,000, and 80% have fully paid off their ownership [11] - The volume per guest (VPG) was $3,212, up from the previous year and notably above $3,000 [13] Company Strategy and Development Direction - The company is focusing on enhancing technology to improve owner satisfaction, with the Club Wyndham app downloaded by nearly 100,000 owners [16] - A new Margaritaville Resort is planned to open in 2027, indicating a strategic expansion in partnership with Wyndham Hotels [21] - The company is maintaining its full-year adjusted EBITDA outlook while adjusting expectations for the travel and membership segment [28] Management's Comments on Operating Environment and Future Outlook - Management noted an increase in uncertainty in the macroeconomic outlook, but company-specific KPIs have not shown meaningful changes [12] - The company expects strong demand for vacation ownership to continue, with forward bookings in April appearing solid [48] - Management expressed confidence in the resilience of their consumer base, emphasizing that vacations are not viewed as discretionary [14] Other Important Information - The company completed a $350 million ABS transaction with favorable terms, indicating strong access to capital markets [29] - The leverage ratio was reported at 3.3 times, with expectations to end the year below 3.4 times [30] Q&A Session Summary Question: Can you talk about what you've seen in April and the travel and membership segment? - Management indicated that the vacation ownership business performed well in April, with no signs of uncertainty affecting KPIs [35] Question: How is the summer rental business for non-owners looking? - Summer demand through the rental program remains consistent, with solid forward bookings for the summer [47] Question: What is the mix of closing rates between existing owners and new buyers? - The new owner mix returned to historical levels, with expectations to grow as the year progresses [51] Question: Can you provide more details on the provision rate and its impact? - The provision rate was raised to 21%, equating to about $15 or $16 million in EBITDA, with management focused on controlling costs [61] Question: How do you view the impact of international tourism on your business? - The company reported that about 90% of revenue comes from North America, with no significant impact from international tourism issues [90] Question: What is the strategy for capital allocation in the current environment? - Management reiterated confidence in cash flow and plans to maintain consistent capital allocation, including dividends and share repurchases [93] Question: Can you elaborate on the exchange transaction decline? - The decline in exchange transactions is attributed to industry consolidation and a natural tendency for members to stay within their clubs during uncertain times [100] Question: What is the outlook for the Sports Illustrated portfolio? - The company plans to finalize a deal for the Sports Illustrated Trust, allowing for quick sales once completed [105]