Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Travel and Leisure Fourth Quarter 2022 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Christopher Agnew, Senior Vice President, FP&A and Investor Relations for Travel and Leisure. you. Thank

begin. may You

Christopher Agnew

and Melissa, good you, morning. Thank

forward-looking begin, our update revise discussions we could are materially in effective we made of these forward-looking statements. no would that you differ obligation the indicated those We remind only to from and today today or results the statements like Actual Before statements today. will undertake as forward-looking include publicly to statements.

our SEC earnings actual results release to are filings that and call. factors our in earnings could cause this The press discussed accompanying differ in

You discussed can our the release find financial a reconciliation of on in earnings the non-GAAP available website measures in at travelandleisureco.com/investors. today's call press

outlook. This will our an morning, our full balance detail fourth provide and Chief Brown, and our position. President and greater quarter, overview Mike Financial Chief Executive And Officer, then on Hug, Officer, of sheet our will the quarter liquidity provide results and Michael year

to your we remarks, to questions. responding these look Following forward

Michael turn With that, to pleased I'm over the Brown. to call

Michael Brown

Good capital Thank demand, allowing for quarter free continued significant growth travel leisure morning and we adjusted joining robust meaningful results to of that return you, generate fourth drive morning, This and level cash us strong reported Chris. to EBITDA today. shareholders. demonstrate us you flow, a thank

demand travel we Leisure the continued demand of adjusted into earnings remained $X.XX. of in In per has quarter, reported million. $XXX robust fourth quarter share was QX flow Adjusted EBITDA adjusted million that and $XXX and of free XXXX. the cash

achieving, meaningful substantial growth while generate rate, we overarching and Our historical strategic flow. continuing which is to our are increase goal, cash to

representing and XXXX finished annual cap. of per company's with shareholders, of current the capital to in EBITDA history will of to in us important results, most our $XXX We guidance and as in KPIs million cash the you our a our XX% see allowing Performance XXXX to X% volume returned adjusted deliver XX% in our driving level growth XXXX. growth guest X% across market is highest

the and free XX% prior increased free to year-over-year million $XXX conversion, year, For flow year. adjusted million the full cash to adjusted $XXX strong flow with doubled adjusted EBITDA cash over

a fourth this adjusted EBITDA As the increased XX% the reserve benefit XXXX related benefit quarter. in release, which million Adjusted to adjusted COVID $X.XX, $XX Absent XX% a $XX including EBITDA million would year-over-year. is earnings from a reminder, share the XXXX. release, over per increase have totaled to included

XXXX, year, last record We the year, laid on growth. based. and very and Cornerstone in respectively. accelerating with performance foundation record $X,XXX new The Reflecting is increases across our prices. VPG performed XXXX above both club North VPG transaction XX% delivered rates broad businesses regions X% was well which for is strength the full of our close and all in and for The American businesses strong

of sign that products prioritizing a clear this and confident are see the We vacations. are is our value consumers

headwinds in impacted As we standards where tours. our total seeing our to only now XXX,XXX lagging owner increased The growth operations. of was a reminder, made travel the new of XXXX, a quality increase restrictions international and in in of and a VPG. benefits decision XX% currency business mix inclusive operations, to portion elevated the strategic dollars XX% Tours are

point year-over-year, XXX increased the to a bringing owner improvement transaction XX%, new XX% year. sales owner mix basis prior New over

lead growth strong representing VPGs, XXX of XX% year. Thread up sales, Thread tour of new to sales for With ahead generation Blue an with XX% all-time $XX the million, points over represented Blue increased Hotels. VOI XX% sales sales and finished affinity both gross Wyndham high the year relationship year-over-year basis our XXXX. prior owner

The a revenue per began. RPT strength lower offset since members owner year average X% North RCI was American reflects had pandemic new segment, RPT decline increasing industry in XX%. members. enrollments solid with and international wide partially the Membership and Travel the in our to or decrease by decrease This transaction in Moving a

the it has quarters, sequentially Although count increased member basis. for remains last year down absolute two to on year a

headwind remain color more on first will half, Membership the Travel RCI and for quarter expect and in Mike a count in We the member outlook moment. will provide first a

Travel continued also to foundation, Our Club build experiencing while the business growth.

Club XX% businesses in Our Travel on year-over-year increased year. as affiliate brought we new the relationships transactions XX

reservations pacing are the on Looking year ahead, owner XXXX. the for above books

first First quarter are compared the of the up At X% occupancy of X% quarter reservations ahead prior date, to prior supply owner to year. year. RCI, was available

sit leisure the trend strong we intact. remains today, here As year travel of last

outlook. Turning XXXX to our

and range to adjusted $X,XXX. year, providing full million the Gross billion range $X.X of and we VPG VOI $X.X billion the $X,XXX $XXX EBITDA million. to between For $XXX of guidance are in of sales

tour expectations marketing above to account changes are levels for made you this XXXX once we criteria. Our year the for our

reminder, a criteria efficiencies are our both sales our raise our the and portfolio, As order to we changes of which to made marketing in finance happening. strengthen

the we to to the half business, Club weighted of XX% growth transaction For year. expect XX%, second of our Travel

opportunity model adjusted adjusted that of we and into flow has to to to pay common capital base our steady stock arises. cash a if of convert our EBITDA and XX% free M&A business predictable and Our XX% allocate or for to revenue dividend, a XXXX repurchase expect in compelling

sustainable while with goal in strong earnings continuing shared at to business, strategic Day generate flow. XXXX, profile the our of growth the is we you cash and to As accelerate Investor our

track originally Our a elevating anticipated. growth slightly remain growth, businesses, well plan a time although than mix in our our at combination goal as saying travel ownership and on to clubs. RCI, that business being different of extensions, incremental confident expanding achieve with enterprise cornerstone adding vacation of namely was I'm as through we corporate our strengthening on based in

with an consistency XXXX expect strong in rate incremental continues We laid XXXX. strength travel our strategy vacation growth. clubs, of albeit EBITDA foundation in high our margins XXXX. growth a vacation ownership today, small generated to combined elevated our our into The growth of adjusted we the the for raising growth to fully relatively Holistically, and business the contributed by give us out enterprise within through play in the successfully profile exchange to

over now would on to to For our call the like hand I Hug. more performance, Mike detail

Mike Hug

Michael, to morning everyone. Thanks, good and

results, million balance EBITDA well As sheet, our discussing cash We year our quarter $XXX adjusted one and and $XXX compared flow. million of fourth quarter adjusted diluted liquidity position more of I'll provide fourth per to and color as $X.XX ago. reported $X.XX, on earnings share

reserve XXXX adjusted As $XX fourth increased this a benefit of adjusted million item, a reminder, quarter COVID EBITDA Absent the would from XX.X%. the have EBITDA release. included

performance of of Vacation of fourth our respectively the $X,XXX, XXX,XXX and $XXX tours increases segment respectively X% quarter. revenue in fourth year. reported the and We X% X% million a the to of the ownership Moving and XXXX. of million representing of business XX% two quarter over over adjusted EBITDA prior of increases $XXX segments delivered VPG and

in X% tracking transactions in decrease subscription Travel to $XXX member lower Revenue a million to million was decrease. travel prior X% XXXX, average quarter from a to the our resulting membership compared quarter exchange decrease compared the primarily $XX a the revenue compared was of year, prior Adjusted in year, exchange $XX of fourth segment to average million Membership in decreased membership. due in count. $XXX the EBITDA million X% and

the strong an XXXX. sheet to growth, ABS maintain $XXX will term In fourth on return $XXX We We term continue closed addition of a transaction. loan capital to million and a strong mature driving we quarter. balance adjusted transactions we B million And shareholders. completed in to EBITDA which closed incremental in two

million notes We corporate to our expect secured repay to outstanding our from revolver use that and this $XXX March. net in loan proceeds the capacity under mature

our XX from in XX, Regarding $X.XX fourth on million we outstanding capital for and and increase to dividends December of Board $XXX approval our million We recommend allocation, repurchased we stock, an shares will paid million XXXX. paid $XXX our per Directors. share of per reducing to to quarterly XX $X.XX in dividend dividend of share common quarter million by

the for $XXX million with was conversion from flow cash adjusted free cash flow at XX%. adjusted free Adjusted EBITDA year

range half and be year, of cash to flow adjusted be of of to the timing due transactions. to the ABS to weighted it XX% to primarily end spend free expect We targeted our and by second the inventory within conversion XX% for the XXXX

inventory below between come million different levels to spend we $XX reminder, to of years several expect inventory for a XXXX expected million. with $XXX no As remain and is spend and our historical

corporate expect to timing times. net we year, was purposes of to year covenant flows, continue XXXX, for leverage cash slightly ending of the leverage times to Our X.X through X.X the EBITDA and due of the at growth. our but we adjusted ratio end first delever the half below to increase anticipate expect the In

full more me expectations Let quarter the and for our year. about the first provide some detail

with EBITDA to $X,XXX. the year $XXX adjusted year-over-year to Keep interest recent the to a expect the in to $X,XXX net of X% gross prior ownership sales mind, as over be of expense in million We of result first in XX% dollars quarter faces range higher a VOI ABS million, $X a that most million on the interest our transactions. in range vacation income increase to headwind $XXX VPGs

$XX year, For anticipated this full to the headwind is million. approximately be

quarter the at member timing Travel expect lower Membership the the first and spending impact in travel mid-single We be adjusted of the due EBITDA to of count primarily and exchange RCI transactions to on year-over-year, clubs. digits our down in marketing

$XXX for full quarter we year, expect to in digits. travel the for first we expect range year. Overall, membership million million of adjusted be to million $XXX to million $XXX and to the full EBITDA the For grow EBITDA mid-single adjusted the $XXX

shareholders. full are continued pleased capital to ability year earnings and to In flow cash our return summary, our with we and

our adjusted leisure are ability flow. into on quality consumers the and of We capitalize momentum market free drive to travel continued has XXXX results the and and travel strong excited cash about earnings to demonstrate leisure our that our the

With questions? that, to call take you open please can up Melissa, the

Operator

question. [Operator Joe you. the Instructions] first line Our JPMorgan. from of comes your with Greff Please question Thank proceed with

Joe Greff

Good morning, everyone.

Michael Brown

Good morning, Joe.

Joe Greff

subscription you're last Thank you how to for opportunities. how was capital that's million. growing? the your perform there repurchases, then relates you. and $XXX prepared last it you acquisition in see that guidance? How M&A. embedded M&A horizon? million, mean, And And is theoretical that Is in anything on full my margins? Is contribute quarters how follow-up much was do thinking talked How year your I You see is your couple is How that's there XXXX, or And remarks been then there anything comment in $XX the question allocation that? on there? year revenues do warm? theoretically out dividends

Michael Brown

good morning. Joe,

ask touch capital I'll allocation on on question second. a the touch or and first me Let then Mike to just M&A for subscription

in perspective really any capital than Our it not was has in different on XXXX. XXXX changed allocation what

returned and taking clip a strong X in the capital share through fourth shares really saw, you at lot year. course out a of of throughout we As especially of quarter, all nearly last the repurchases million

on philosophy changed. buybacks and outlook our XXXX, share has enter we As not

relates it of really with opportunities to to the we all As And last few consistent there, years we sure to but our both strategic out want and evaluate, we make evaluate that M&A, continue M&A. anything on outlook accretive. is

Before to of travel XX% travel XX% handing business, driver as club. But subscription, going say Mike, our we can to is growth clubs, you subscription. on be our I will of just about and talk growth travel we the in which look membership at in to about primary space our talked over transactions that

Mike Hug

owner the from Yes, this our we about, we up ourselves to member expected anticipating in are sales was seeing new pick until mid-XXs And subscription starts the revenue, the lower to to year. low-XXs industry we talked as count, are growing be which sales.

the timing think when slight revenue business, the not the would across it count QX. a in see of again of but expect So subscription we year, to headwind member to favorable grow about we the that, half the half XXXX starts be first maybe as our would of in year, compared QX and the industry, only we to as the being but in in slightly second

Joe Greff

Thank you.

Operator

Thank you.

from question Securities. proceed Scholes line your Truist question. with the Patrick with Our of comes next Please

Patrick Scholes

Hi. Good morning, everyone.

Michael Brown

morning, Good Patrick.

Patrick Scholes

well pretty of you looking When sort one-timers certainly morning. the at there. a that little are have but for results the in light, implications in line, perhaps quarter, much Good But some bit XQ guide year of out XQ thinking. next of with that XQ better What gives consensus you expectations? sort was through of than is come confidence implied XQ to what ahead XQ guidance to a

Michael Brown

through Really year, of vast is the that. most company's our element to predictable to Vacation overall businesses. confidence it seen that majority business we of number the It look continues back as business and forward guidance we our And this lot to and as perform well. model. EBITDA months Absolutely in Cornerstone this within off into owner ownership comes gives our is of two EBITDA. range majority the the the of extremely as answer It's happy first we've the outcomes. is of the strength continued economic well our that of remainder segment demand, a a our that look us of of based reliance our year to of

combined within that have consistently to That RCI is and majority business. travel really last that drive success The nearly measured business, which up XX% invest year business, with over in the XXXX our an You'd two tour side notice Cornerstone further other the growth the are years of facing year even said we into we early we've this EBITDA, growth of this membership and year. our us allows vast owner new will headwind.

continue we sequential in and new as the owner is members through industry due a Our Mike two know occur seen the that decline quarters our growth in we've EBITDA owner of are vast down of enrollments in to will about majority XXXX. XXX,XXX to the and member will of to, returns confidence generation. that wide And gives us as elements considering count new that member count that COVID mentioned, what grow those industry two lot

Patrick Scholes

Mike Very follow-up -- Mike Hug. Okay. question And answer. then thorough a for

give you or that Are target that there? end in Is performance anything in provision you point term. loss below to weakness seeing be a on said historically you'd any securitizations? the And then you. the still loan lower long to all XX% color expectation? little You've the want tranches at out Thank you the could

Mike Hug

the question, Great. Yes. Thanks for Patrick.

is from to consistent guiding the you higher we've recurring with we'd growth financed lower what talked margin financing not is, XX% our XXX we that that portfolio that finance, to which term kind XXs. because, XX% you're drive we're discussed, Exclusive at accelerated that in get of of for around points talked The low range about that Day. about is Investor income we've provision quicker. sales what to XX% means in be sales. more you lower that The portfolio, On interest XX% as the sales the And range. XX% reason worked XX% talking impact than growth grows provision our percent full the is nice to that to probably year We stream. provision, number of offsetting to is near high was the about the basis higher percent that get in because the

mind competitors. as again. get higher move We're with to strategic happen, right and a originations those it's range, new our part So on are to moved up line that to our are in seeing it which the is higher XXX in, portfolio that branded in keep our average FICO coming in growing we FICO coming XXX the finance balances with

decision with strategic So the and very to portfolio. the that happy grow we the new made originations

see quarter, the normalization off so about relates portfolio of thing rates We that in delinquency drop actually fourth quarter default off. did FICOs. the other of as as rates in third half to the And we the talk that that the on fourth to year The saw happy very the last quarter. some of our the performance. leveling end second happen level sub in saw a result, from end increase or We XXX far down as

in delinquencies improved And coming have what again, we the third are previously to So end originated. quality compared the originations better once much than the of new a in quarter.

of portfolio. do in the relates of And Obviously, expect to our the second, flow would HBS last that's with to third happy three cash very is transactions. three overall, just continue markets, really the in the transactions occur and we we always October. timing second which and year. execute very ABS July our is, this did year, of mean, confident why because So I it usually those as to to those half year it is weighted of ability

the performing a portfolios confident flow free So to we're big towards which XX% conversion in well, we EBITDA XX%. that guiding is of transactions, remain cash from ABS reason

Patrick Scholes

set. I'm you. Thank hear. to Good Great. all

Mike Hug

you. Thank

Operator

you. Thank

question Chris Deutsche next proceed your with question. Please Our Woronka from line comes of with Bank. the

Chris Woronka

the Thanks great on good guys. Hey, question morning, and taking a for congratulations year.

made progress First wanted I us getting Can you've back little new good And up on give where bit owners. that closer it. have of historically in they're of question a they And little guys, different a think, profile terms where from? more product bit coming background Thanks. to really you was mix color type a looking are are for? any or you folks the little demographics on in of on these or of those. Just color

Michael Brown

Chris. morning, Good

new with with pleased FICO's XXXX and and could extremely what VPGs margins board are happening ground XXXX. tours deliver ramping was owner what's really with higher higher new that's whether across the up in exactly a We owners. the happened proven

growth a the that because elements. marketing number of owners just channels always U.S. we mean going traditional in capital to we regional accelerated space commitment growth we're that our I previously. that in we're drive individual we're know partnerships mean future. revenue business lot investing to in, one, to whether different don't to there that that regions Number partnerships. more our incremental were it's be in is We're the that a reinvestment relationships the overall simply I or is XXXX willing it in see So new played we've more in than in a investment, The seeing commit a and

an So will all-time high. to grow Blue year. Thread, you hit heard that That this continue

will Our XX% mix the all this finished regional grow owner year to in in and marketing be that new XX%, exact. which year all partnerships the

simply above and as to -- below it the this does return further that to a really include future no no XX% be owner We're new to to FICO, been, which no to to sets a taken change demographic, even near tours XXX change growth. marketing a XXX always growth which our criteria. expect where and reevaluation There's company that year, FICOS. doesn't sub change in this of sticking we've We demographic. those XXX is us for We've so not our up and

Chris Woronka

process follow-up, a and you Very and gives first Okay. and been doing that, think you've that the as get you us you acquisition? when know to are away confidence TNL tweaking And in have fine learnings then I Club up of on back are what where that and a tuning. do memberships, side guys the that some of I taken helpful. lot you you originally did or think, you Travel what Where

Michael Brown

few a elements. Well,

we in Travel year and the and gives also was year product. First of the specifically space affiliates the ownership broaden is, we've we've growth guidance a to do TNL signed XX% to all, to out us whole to continue travel to to right ability our yes, XX%. vacation clubs But up. The the laid as XX have year XX% up in only learned clubs. and transaction What was, of last Club's us the acquisition this on to interest of lot lot about last best help of travel a our confidence more well. sign We've not purpose

Our but membership, which mid-single transactions, drive the of as is we was travel to and done, holistic it why, important it's clubs the growth this out digit year we guidance to And the laid year XX% full thought plus the growth. I out normally whole RCI our travel year of for objective haven't XX%. is this something transaction lay we

to with also year, mid-single adding consistently a to not out what been it with our exchange we our where can for business X% without incremental we're to we've says to of travel a that in segment year, digits which only always we've clubs, the business, growth X.XX business. majority RCI a to the and that a go X% they're continues diversify said our fact doing travel fact says business share but EBITDA, growth X% growth X% million just has back travel historically, our as of growth. In club start year you is where that of vast this the wallet, that lay to if members is down membership been And these

year years. We're and growth we're profile. to realizing to elevating total So actually that growth pushing be off our enterprise future going it not this

Chris Woronka

Thanks good. Very Okay. guys.

Michael Brown

Sure. Chris. Thank you,

Operator

Thank you.

comes the next Barclays. Please Our Brandt of from question question. Montour line with with proceed your

Brandt Montour

for Hi, my everybody. taking questions. Thanks

the Mike, Membership business, early I’m XXXX that plus of XX% just on XX% signed -- you explanation keen of to XX assuming growth Just in accounts XXXX? the that, in and accounts transactions curious is BXB in Travel the you that basically much XX accounts you're what -- year-over-year up plus How that of closed or XXXX. the haven't outlook, that's implying versus yet, the sometime in growth on

Mike Hug

booking of accounts in number with of Brandt. for growth Keep that to those in the of the value all came to this in quarter good part thinking summer XXXX the spend XX. marketing we of thanks got they in Most and first some which is consumers as question, introduced is is second start spring new the that that that a are those make sure half can and understand on we're in stuff. that mind, that Yes, brought the year the they of in on they reason associated get and we've travel XX the break product of can year, front just being the

to affiliates, live XX% growth. signed we've got will, XX% enough to definitely deliver that up So and you if

Brandt Montour

intensive. for rolling shift by is with were curious, be considering to rate segment's And shift just that VOI growth higher as comp the And the owner nature That's then mix you what that putting margins and of the last be on side, mix of guys together with just Thanks the more loan Okay. we pieces provisions that -- for year? what VO loss gross run that. are doing obviously sort sort through guided great. going hypothetically margin you going new to just of to sales just should are

Thank could on that color helpful. any you. So be

Michael Brown

mix over were a comparable significantly. we when think them basis. overall grow to sales for growing COVID at we on we during demonstrated could new margins when margins and owner still year, expect year drive we most that I new Yes, the look the wouldn't We pre owner

can efficiencies the much So that of on VPGs we business the us pretty to other hold year-over-year and the strong allow where should consistent business. margins areas realize piece of

Brandt Montour

Thanks, Great. guys. for That's me. it

Michael Brown

Sure.

Operator

Thank you.

Our comes question question. the next with proceed Please with line Ian Oppenheimer. of Zaffino from your

Isaac Sellhausen

Hey, for on Sellhausen guys. morning Ian. This good is Isaac

Just finish out ownership. a vacation on follow-up the year really VPG strong.

the And and context be cadence assumptions tours should first expecting general compared VPG? regarding your about the are of Within of we a of you're second what guess, how the I full half the stronger and of to half year? sort feeling the guidance, year

Michael Brown

direction, we nearly tour has which were heading year, us pivot to focus efficiency tour the year the right XX% on was in portfolio growth a count. the growth through Well, to our at levels to the will our for proved The the in last impact making sure of which elevating direction was the the marketing allows managed, really way natural -- criteria. that our we we loan change been VPG. provision, has a driving lower business focus loss VPGs be were that means record the the really That

VPG other nearly new industry, training in to dilution people, XX% the up continue know the hiring overall as natural the some really the volume grow does just that more owners all a of there's to will half people, more we you new be VPG. ramping cost to VPG. your is As than recognition of the And pullback due you mix. pullback More drive,

XXXX be we to are Just still of in I of we we look range confidence, performing We we hit a it's right lot guiding tour the last that highs into to out our flow laid the marketing business year, months think we're above you guidance track criteria. months all-time a for our XX similar guest that between what And and is a X,XXX the per X,XXX given XXXX. reminder plan. that team right especially our two and a when really volume end investment at top on first above back to expected levels long that's how number to have get these ago, our

Isaac Sellhausen

a follow-up. And That's Okay, great. quick helpful. then

have pacing any reservations strong of everything was half? that February at in Is all? are ahead softness and January mentioned to XXXX. seen the and Or strength owner first pointed continuing You you

Michael Brown

days. Well, really window. XXX booking the normal our outlook is That's

I going you a at So can would that different elements that a see the strengthening we weakening. consumer whether gives forward. look or what lot say sense of is of

really think watch arrivals are change really around will Usually that on how around on at are CEOs a leisure either obviously The booking with that given would macroeconomic side. showing during say, Our levels. consistent hearing the XX% then, all really finance And the of behavior, number will sentiment in COVID. XXX to the remaining I talking which drive about the it saw strictly goes travel. to our or we've historically. is But we are his been is XX%. right see to environment, referenced sit off. forward there's go but different where lot to confidence remarks, that It the the window I And travel. again be pre-COVID that no there's delinquencies, around calls consumers' when in not We We that change Mike any days, deteriorates, interesting side just been been of booking really here of consumer other today, leisure on headlines. as we

Isaac Sellhausen

you much. very Thank it. Got

Operator

Thank you.

Chaiken next Our comes of Credit from with your question the line with Suisse. question. Ben proceed Please

Ben Chaiken

Thank Hi, good morning. you.

Michael Brown

morning, Good Ben.

Ben Chaiken

Hey, morning. good

then the Membership, talked guys on XQ and digits down mid-single about X% for think and full the Travel in you Just year.

to And signed I looking already just you? clear, I you expect there if a up function be are [indiscernible] of some guide think of at affiliates is to leading and indicators the follow-ups. that -- transact? you're to answering were And inform then so, accelerating that you've is before, kind Just that

Michael Brown

that. Yes, go Thanks ahead [indiscernible]. for

of days we for on to know without and year really are up And XX year and in view our that's spend basis early first all, and be it's quarter. we'd that have sort run quarter of rate. the year Travel transactions full already expect them First in on to a the Club marketing first of

the from year Number related a the signed that fully. fact two get available travel they're for the existing really be clubs. and say, that going to these acceleration clubs is of proper up fact the that that travel I'd what we do, one. transactions stood to So quarter full marketing first will we're up, now comes this Number

as So board be a this this you to some but on, our come We from it's it -- year expect reliant is transaction new year, coming our really growth existing new vast look on to majority not clubs year. do -- the growth not on the of clubs. of lot those real will

Ben Chaiken

think you us of tours helpful. little Can gave tours, And maybe super up removing context was I many are then how XXXX XXXX? the you a Got believe XXXX. some you. tours are XXXX. adjusted That's helpful And I that? versus that actively you in then versus business bit commentary guys VOI on you for in XQ in us of give of where

Michael Brown

XXXX new owner XXX,XXX from weren't few XXXX So channels marketing we're to that sub-XXX equation the about elements majority from the other XXXX, of -- tours, out more and on up XXXX a is us will which $XXX,XXX equalizing viable. about a that the put we’ve And up economically vast that tours it's marketing versus of from taken criteria. of

Ben Chaiken

of guys there Is came kind think that any the where apples how in helpful. context about out XXX, XQ, way four to adjusted you to That's with this to super provide apples basis?

Michael Brown

up question that's okay, we quick math the us answer wrap and take here some do just that if next Ben. as Let here, and we'll

Ben Chaiken

it. you very appreciate much. Thank I

Michael Brown

Ben. Thanks

Operator

question next Jefferies. proceed Our question. from your with Instructions] David line Katz [Operator comes you. of Please the Thank with

David Katz

it we're still like we one, you. interpreting to provision this all XX% the -- that? so at, number year the make this to call Thanks might lower within far. modeling a guidance just number. And want range an where, with you're scenarios bit it, just properly Can far were the everyone. how that looking loss talk you and of for go embedding number details to morning, vary and range for back I'm Thank I your wanted I that and so frankly, sounds I think two, I in that XX% about, of correct sure little loan And am such? to maybe Good

Mike Hug

that take one. Dave. morning, This Good I'll Yes. Mike. is

We're a for in range to correct. lower to because are to guiding XX.X% down sales reason order and XX.X% percent driving to is the grow the again, XX% team year. the in payments, get of that's are the not we get portfolio. higher You that the to XX% financed Once

ones because between that's levels originations keep more higher net And getting term are in the mind, where portfolio coming that down they're probably now. relates interest margin. we're bands, capacity the and it Obviously that they term short FICO high the to the the provision, too, because capacity guiding from ones put difference net were cash. in what of you if the had those higher interest again of that in were income to and benefit a long pay will less the big the thinking you So as growing need had to

revenue recurring So get and have I overall, about the would consideration into made those we that the grow decision portfolio it's think say, when where growing would taken expected to we streams we strategic provision, again. right

David Katz

wanted a just that you scenario. and laid in that degree range just And quickly sure though It of capturing is economic confidence the the as within to make high numbers Is relatively guidance out of it. I'm fair your sounds I takeaway? even and reasonable Perfect. a follow-up

Michael Brown

of as get is, number grand our David. for looks scheme been efficiency, some tighter model fact Vacation the about the guest, confidence putting of we what per things we've And less new that in combine business We a on done and launched. know we're you the what indicators quite that's a talking time. RCI the And and previously business with business with Ownership at A we've growth, lot headwinds than that volume things, of our VPGs probably recovery our questions on Exchange that our are business the the look around in It EBITDA. core We've X% are. total know the count. key and like member we the on despite

our of We have is to to going perform. good visibility That's EBITDA. on how business XX% that XX%

macroeconomic believe best we're in that that that consistently the business outcomes remainder the quite these there. we believe is predictable result as always industry XXXX of have team resilient, as we've we're a covers been delivers there. in in because guidance we areas. the for direction of year, confident our we we've So that heading are of through yes, a And variety it, in the it's and wide this look out this said We

So number. first yes, continues that to team prove can the we through deliver And confidence there our is we in our months, two resilient and are the against KPIs.

David Katz

you it. Got Appreciate it. much. very Thank

Michael Brown

to single QX on on were -- And to was want down growth tour Ben. next I low come just a we do before digits comparable basis. question, the go we back to

be is year slightly to below was QX XXXX, XXXX. going slightly this above So

Operator

our comments. I'll Thank gentlemen, floor to session. that final for you. concludes Ladies Brown back question-and-answer the Mr. turn and

Michael Brown

Thank you, strong was a Melissa. Overall, year. very XXXX

travel, continue consumer despite start with to benefit strong December in off into of a XXXX continue We January leisure the concerns and in saw the a we slowdown. to momentum of We're from February. strength

able make the our people's the model. of day. the who strength consistent associates of great travel, you and to great our to every full continue day. outlook of we and Thank Our underscores who a performance results, business millions deliver persistent deliver to to travel a to leisure commitment our were have year vacations customers priority vacations and Ultimately, thanks

Operator

This conference. you. today's concludes Thank

disconnect time. you Thank You at this your participation. may for your lines

Travel + Leisure (TNL) 22 Feb 232022 Q4 Earnings call transcript