Travel + Leisure(TNL)2025-02-19 19:54Financial Data and Key Metrics Changes - For 2024, the company delivered 252 million, reflecting a 5% increase [6][22] - Adjusted diluted earnings per share for the full year was 1.72 [22] - The full-year adjusted EBITDA margin was 24%, indicating strong performance despite headwinds from higher interest rates and variable compensation [22] Business Line Data and Key Metrics Changes - The Vacation Ownership segment reported revenue of 222 million [23] - The Travel and Membership segment generated 158 million in the prior year, with adjusted EBITDA flat at 3,284, exceeding expectations [24] Market Data and Key Metrics Changes - The company experienced a 7% growth in enterprise-wide gross vacation ownership sales for 2024, driven by an 8% growth in tours [9] - New owner transactions increased to 35% in 2024, a 185 basis point increase from 2023, with expectations to maintain this range in 2025 [10] Company Strategy and Development Direction - The company plans to continue executing its core timeshare and travel membership business plans, targeting mid-single-digit adjusted EBITDA growth and significant adjusted free cash flow [19] - The company is focused on capitalizing on the successes of the Acor Vacation Club and launching Sports Illustrated sales in 2025 [20][19] - Partnerships with Allegiant Airlines and Live Nation are expected to enhance cross-marketing and lead generation opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit tour growth for 2025, despite some softness in the Las Vegas market impacting Q4 [41] - The company noted strong consumer sentiment and high retention rates, with 98% of owners satisfied with their product [65] - Management anticipates a stable interest rate environment, with a slight headwind expected for 2025 [80] Other Important Information - The company repurchased 7% of outstanding shares and paid a 377 million returned to shareholders [18][26] - Adjusted free cash flow for the year was $446 million, with a net corporate leverage ratio of 3.3 times [28][29] Q&A Session Summary Question: What drove the difference in VPG and tours? - Management noted that while VPG was strong due to a favorable mix, tours were slightly below expectations due to adjustments in marketing channels [37][44] Question: Any changes in financing trends? - Management indicated no significant changes in consumer financing trends, with a consistent quality of consumers reflected in high average FICO scores [50] Question: Perspectives on consumer strength? - Management highlighted strong consumer sentiment, consistent volume per guest, and a high retention rate as indicators of consumer strength [62][65] Question: Loan loss provision guidance? - The company aims for a long-term provision range of 18% to 19%, with current guidance at 20% for 2025 [72] Question: Interest rate environment impact? - Management expects a minor impact from interest rates in 2025, potentially closer to flat rather than a tailwind [80] Question: Updates on Sports Illustrated? - Management confirmed plans to announce several locations for Sports Illustrated this year, with sales expected to begin in 2025 [89][98] Question: Owner growth expectations? - Minimal owner growth was reported for 2024, primarily from the Acor Vacation Club acquisition, with a focus on replacing exiting owners with new ones [102][104]