TNL - Earnings call 1 2023 | Travel + Leisure Co.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Travel + Leisure First Quarter 2023 Earnings Call and Webcast. [Operator Instructions]

As a reminder, this conference is being recorded.

It's now my pleasure to turn over to your host, Chris Agnew, Head of Investor Relations. Chris. ahead, go Please

Christopher Agnew

and Kevin, good you, morning. Thank

statements, press begin, discussions or these and today measures we differ effective release of from the only we'd today today. statements. statements differ Actual The obligation like this factors are to on in at our that that materially our the SEC to forward-looking our in non-GAAP today's our indicated undertake results you you earnings could And as remind travelandleisureco.com/investors. available in those the discussed will are filings accompanying reconciliation call. revise press could can forward-looking discussed made cause in to results Before a and We include release earnings website no of call statements. actual forward-looking update find in financial publicly

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

we remarks, look to your questions. responding prior our Following to forward

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

Michael Brown

our EBITDA growth impact reflective reported significant for XXXX. were and exceeding of at into the share is months. repurchases Thank adjusted morning, Good earnings and morning, thank a teams per able last of over February. XX% quarter demand share growth the end of the $X.XX, to increase that continued the adjusted EPS million, and EPS growth. year, reported showing first of us prior over We you, strength, adjusted EBITDA today. over travel QX This you the we X% $XXX continued expectations XX and we Chris. of out EBITDA translate an improvement strong results, joining laid Leisure With

flow outstanding alone. in to of the allowed Our free repurchase confidence us X% quarter first in cash XXXX our shares

metrics VPG, guest, key finance X forward track business among of business per a incredibly consumer performance retrospective the and sentiment Ownership trends. metrics the XXXX. saw operational discernible performing the give is we Our and look change or use positive measure metrics Consumer and at QX well, Each These the volume Vacation current we are sales portfolio. our trends performance consumer from to of no shown demand and in us consumer in has bookings, continued April. into and these perspective,

in as into Forward good bookings our the pacing us of head above levels quarter, we owners summer. visibility are providing XXXX second the

demand stay, Orlando, strong Hawaii. destination been Las post VPGs the Length of following have demand decision X% COVID, standards. above raise and our and in major our travel We the marketing markets a to result XXXX. are of strong leisure as Vegas of seeing which pandemic increased remains

expectations no was above increased as over new exception. quarter year, our exceeded well $X,XXX levels. first remain the The ramp. incremental Tours channels owner our even and XX% of close VPG rates started sales historical prior to

our prices relative other This still-improving is of the proposition and a product travel strong to value increasing and of accommodations. reflection

economic less owners of than nature ago. in and less vacation the FICO of dependent differentiator leisure prepaid for we choice a inflationary in and At environment. raise well performing is current conditions. X% our higher The of well at a paid positioned and year below XX% $X.X fully XXXX again our are move X trending timeshare travel. their end to predicting is the key portfolio ownership is delinquencies portfolio growing first receivables timeshare, have for over future is billion is on therefore, below had XX% XXXX XXX. us The Our made strategic the the standards quarter, portfolio of has levels. credit to than The

the of important in demand is will out face COVID. has again, resiliency challenging This as This and more and coming we environment. if most amongst time proven one we expect owners more enter uncertainty, of be economic we our business a main timeshare is resilient recently reasons been macroeconomic time

and have coming in tour generate visibility months such, As the flow. confidence to we great

Looking of alone, forward, potential us next we existing in our of a associated pipeline billion resilient and revenues a embedded have recurring years, revenue owner model. $XX business over the with base XX giving anticipated predictable

for expectations, will XX% Turning exchange XXXX to segment This cost. Exchange resemble February January. as late our Travel Booking in off strong primary and pace activity a in quarter below adjusted XXXX. in later the we EBITDA. leveled the trends Membership to opposed saw March and closely with strong Trading in of and came Membership. Travel the after being recovery accounts booking

the per late in Exchange will up with customer in impact transactions by Travel QX. but due down quarter the a transactions Club, At lower decrease X%, the include year-over-year, X%, was to loss due X% a The transactions offset increased in revenue revenue in impact mix. transaction mostly quarter, of also transaction membership. our X% which per to transactions

QX. We transactions in Travel are in a decrease now year-over-year Club anticipating

customer we half year. transacting that comparable new begin the have signed will of However, a second in the

XXXX to our outlook. Turning

VPG expectation For we range to be range of to to for $X,XXX. a of gross to $X.X and $XXX year, EBITDA our billion million, full $XXX a reiterating and are $X,XXX the guidance range raising within VOI billion to adjusted million $X.X our sales

has and business XXXX. flow to cash XX% Our conversion of a adjusted free our model steady XX% we and to of our reaffirm in adjusted EBITDA of base revenue, guidance predictable

to to M&A and/or allocate capital may that stock, expect that our arise. our business compelling dividend, pay into repurchase opportunities common We reinvest for back

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

Michael Hug

to everyone. Thanks, good Michael, and morning

color cash year. share of and XX%, first adjusted the increases our discussing first diluted results, provide earnings $XXX sheet, position on EBITDA quarter and reported $X.XX, as our per well I'll more over million As We and of quarter adjusted of balance liquidity respectively, flow. prior X%

in growth adjusted EPS activity. share acceleration is healthy benefiting continued the our mentioned, previously Michael from As repurchase

first XXXX. X reported the revenue in our the of of EBITDA over $XXX We our XXX,XXX Ownership VPG segment XX%, the and delivered the XX% of first increases business quarter. quarter and first million, segments performance the million over year. $XXX XX% of $X,XXX, expectation. Vacation prior adjusted Looking of And at end in tours top of was quarter, growth the above respectively,

Revenue travel and to Travel higher to sales first million in currency XXXX unfavorable our the $XX $XXX and flat driven prior $XX EBITDA Adjusted compared was impact. the by cost foreign was to Membership the transaction in of in clubs to support marketing of quarter, quarter due higher segment costs year. mix, million compared million

sheet. balance Turning to our

in March first share continued we capital return regular we the quarter, and share quarterly our $X.XX Our which to through to to shareholders and financial And increased XX. on position remains paid per repurchases strong. dividend,

the We of million to million at the shares through of outstanding by or drive in of the continue shares the $XXX common of value outstanding quarter. X.X% repurchase quarter, X.X shareholder beginning stock reducing

we model. rate April, coupon heavily XX%. our early underlying our and closed market's the average an of million in of The confidence of resiliency a and and transaction strength In ABS $XXX ABS a was advance term X.X% with business program transaction weighted oversubscribed, the

million compared higher our year-over-year first portfolio. quarter of spend use loan of free due period flow well timing of in transaction as $XXX in to XXXX in Adjusted a ABS as the $X of a in cash originations of to source same the of our was million cash cash inventory

several spend to for to within Vacation free in our million expect and conversion We our levels XXXX years adjusted no for to $XXX different XX% $XX our cash expected between spending continue and be range inventory business Ownership below million. come. is to targeted inventory historical XXXX with flow remain XX% of to

net the of purposes Our leverage X.Xx the was ratio quarter. end first corporate for covenant at

X.Xx. our ratio the at to timing before quarter, increase we the again cash and expect starting ending the to As leverage of to slightly a of year reminder, the decline flows second end due below

about let in second to our me more detail range year. Overall, $XXX EBITDA the of for adjusted provide the to for Now quarter second the full be $XXX expectations we and the expect million quarter million. some

of $XXX million VPG the the sales of of XXXX to quarter raising expect expected drive we provision adjusted million million. per us $XXX in XX% With to loss, for year, in it first return In the of with for quarter we $X,XXX to second to are Gross as to and to growth shareholders. in respect another quarter our to be outlook For range to range for XX% VOI great our the range the loan was the for capital full $X,XXX. EBITDA to full to $XXX earnings the summary, million, share $XXX continue be we and are year.

open up the call can take Kevin, please that, questions. With you to

Operator

Greff Joe question is [Operator Instructions] from first today Our from JPMorgan. coming

Joseph Greff

to better second for than Last the first you in quarter and grow? what did in of of rates I Michael, cadence Membership, Travel half far you're could for talk in quarter you within seeing about can you the results. Vacation there the Did is And million what question what be the talked financial ingredients what the if close quarter. you're VPG. actually sort second it you sort was monthly maybe the expectations April talk in half, of respect $XXX hoping with Ownership then second been about that the second the -- are? -- in the terms do my and can your so Membership expecting will see, just about what in and in degradation and EBITDA drivers to for in I of trends and follow-up in expect you've and is obviously, is in the the my my year, guess, given markets macro Travel quarter, general? And about growth you on the going what's just question, throughout in second Nice about

Michael Brown

of weakening were about did The or Thanks, and into of result return of we the the we Joe. the XXXX. see crisis, trends March, that, VPGs Post move those the some rates where continued. And January quarter board, of in Yes, QX. as February, And close trends really we started whether it's a April we great as really, across it's the all strength the some a beginning of April. VPGs. the sort were we trends watching as through were as some volatility at moved in they really continued to SVP banking cadence because metrics saw we question first what the of and just

cause again, like temporary The the quarter. or end So have it the the March. of returned was But blip. was the of not, don't was we timing it if feels know to part them of X it, I first where last trends the toward weeks and saw really it 'XX April coincidental but of a back

remainder expecting the head the really those second into trends of quarter. we're And as to we continue

in about the to year. talk As half specifically to the segment. the Travel exchange it do the relates growth we of year of as ask growth the second generally, I'll which to XX% more it expect again EBITDA Mike of and is in total the just business, that relates our about half of numbers But in the second Membership,

had on. first relates EBITDA we about Number back the the into of come and Two a issue We creating the things this new that is new owners the timeshare the and lost will of half bringing transactions jump mid-single not the to into in year. we're have the year really a it ones we're we're as our predicting to which nice to that as 'XX on. forecasting exchange one And timing this for business, tailwind growth had majority the client, Club, focused X% year and second would between as the to half digits X-month growth, Travel of continue a in provide this is, nice about space related business.

some And about that we'll second half So the in get second I'll tailwind ask to transaction of the answer growth. Club year. the Mike Travel on half specifically

Michael Hug

second exchange expect year. is do the half note of business. you the always we And I the would aware, first quarter as Michael. Thanks, the for that Yes. in historically, guys the quarter are largest growth

of of the within portion the impact to to -- the of and timing our So overall within continues year, overall consolidated EBITDA on as EBITDA due business the become through a go quarter Membership the the year. the smaller Travel we

Joseph Greff

ramp Travel Got be issue. months? Club And the just Or you think this left the follow-up creating question is year timing then one on it out X form really of what not X by it. the that that in push Does would next material? client that

Michael Brown

due left were a that was of and it type looking Well, high-volume they for. travel transaction, to the they

is a They looking Ours for combination-based. air-based more were more platform.

to half our start replacement the these second not, offset the of delay might one, a EBITDA, but be that the the it transactions think scale small we depending relatively So will year, the are might the part on ramp. ramp, of of slightly impact able minimal. which replacement early in will the Again, be if

Operator

Deutsche question Your next coming Bank. from Woronka from is Chris

Chris Woronka

asking or geographic region either bit is questions are way. little this Joe's you So of difference a But different kind of performance by any close and a about Coast And weakening, Coast seeing originates? one relative a flow I'm in you -- tour at terms getting of the have customer any in of talking West say, in rates? really where is, what to East the seen

Michael Brown

definitely we but we've in return macro Coast metrics not West the our from late some March saw performance Well, commentary impact on dissimilar seen April. is in operations those

but seems results the results today macro in at beyond food that XX it this not consumer at seeing, And strength the and as X.X-week companies fast April, of just only of that results belief happened airline with other month sort the intact. in in not our So persist end stage as of our a we're of seeing blip, to hospitality days and short-term was what we're be X-, rate well that March run the period. and

Chris Woronka

does something a as a to be question. then to going business, there get have Or marketing there's at but to exchange bit. want business is that is anything it stagnated Michael, kind it? and it? looks And whether or through strategically obviously of never lean appears macro you like obviously back -- follow-up, you to high-growing you little some reorg it into enough. of think turbulence more Fair this meant Okay. to fast, some Is just do have a look the do, that's where

Michael Brown

is evolved travel the industry has which consolidated, the macro which intact trend internal across the Well, have around in been headwind That's mean exchange affiliates going a space. for is the many I industry, of or for now, and that's this decade on year club, been decade, created natural or against natural. last pre-COVID. which entire very has exchange new a is quarter nothing even a the

I think transaction. maintain revenue continuing job market of our great share, team has a done maintain to per

it And the owner owner. beneficiary of is growth an towards new indirect of an

started just expected? everyone when it intact incremental part and us to this So where help than grow that historically. was travel it's a launched positive clubs, trends. was for Has stays slower But that I business we we the from is an reminder, we Yes. And think it it. see

that it's Our rate new over Travel incrementally Club time. some now that's and an add going some business transactions had industry inside are our up is to effort to to a for take significantly. again, But the headwinds And decade. growth a segment of

we So I And -- just a we're going part is thing think slower unfold, level seeing than to here. X we add growth it have that a started is the plan. of anticipated. me Mike little and other just let The

Michael Hug

Yes.

things the I think, talk about in Chris, about like one the thing spending and transaction slightly marketing it We we release in dollars my comments noted and mix. that.

are our we through members it out and more are inventory and sales going does that RCI to providing out because a for and impact procuring cost of exchange. the additional benefit side drive of of RCI obviously The transactions EBITDA is business, more inventory. opportunities but the able that have running exchanges and we going to On incremental

our we'll quarter more throughout continue So reason something the slight and side part of was to miss opportunities and give for to in first the business, owners to of exchange the the transact. the on members year that the do

Operator

Scholes coming question from Next Truist Securities. is from Patrick

Charles Scholes

point? travel how for a about on up you at Michael, year-over-year this folks, back you basis describe March. from shaping you April How summer leisure bouncing is talked would specifically

Michael Brown

majority to as it and of QX up VOI to our relates the then now just business. QX Well, frame

year, XXX So owner we did last business. that raised this QX new points XX.X%. XX.X% of year, QX we to of by basis up

as results we -- well. grow invest say going but investing and in because said third a owner that we're our of second all, seeing only new we're performing business I'd new first our coming Thread So to holistically, extremely quarter. in and precursor business that's the -- and not our Blue owner also we're we've is

the beyond, time sentiment into the our above far, that arrivals we about is second upcoming is leads of over bookings side flat on owner drive from the measure we XX.X% our this QX, predictive which same really our business that so our hospitality our consumer will And summer sales the business, point. with to of to ability have is business owner success for our given greatest we to think as which our good in length And even of as given had without owners. we stay forward grow well, into in visibility the last case, And head to year. the summer new we continue the over And is and we the have are season. this owner months business X/X at

showing something have come and So in arrivals to XXX holistically, April April summer, weeks opposed March that that the give indication already on brief feel end the and at as what's an days. about next what's owner this I confidence X we're summer us and the what positive of about for the give the cracks. to happening happened books we for temporary that was us first was good the

Michael Hug

the potentially just Mike impact And March entire that, clarify think was to by you sure the of want at made which West, there. impact business. as we just banking was the commentary primarily didn't performance So I to that out West, was on primarily That at the make far Patrick, that the environment across driven was as right?

Charles Scholes

where your to rates. fall Is very to Okay. are quarters. at I hit laid on going of this track to fair think XXXX probably question, those you I you that and it out laid numbers asked still prior Investor growth that some Day, assume back out Investor your My you But follow-up strong in Day?

Michael Brown

on I'd we a mix than the forecast. I preoral on originally last the what with reiterate laid remain call, different difference is we the and track Yes, budget But that's between said which out.

business which XX% So is really we of strength through VOI, our showing of EBITDA. is the on the -- our

So that be the laid [indiscernible] strength to expect originally to out, be we to but different is therefore, continuing than result, is mix we And the what propel end us. going

Operator

coming is question from Next Oppenheimer. Ian from Zaffino

Ian Zaffino

Great quarter.

customer you How you of would of were there? customer exchange the versus win. you lost? I talked through the What happened you loss. looking Walk know side, the other the give get for What about On it? Any us they the game could color did be great. kind

Michael Brown

straightforward. Absolutely. It's pretty

Just understandable. type the lost that looking on And benefits type the the provider was the is similar and but which air-based, a we was in basically is with And we platform quarter. they a still customer, more was travel our and it's -- one that brought transactions for smaller do much there more begin scale. we that transacting of will they're in third client combination-based,

change. a sort So it's of like-for-like

the And X been a digits. where out a X-month had had of transactions year, mid-single transition, would put we these that things other first gap. worked we and half happen got obviously to overlap, the to in have months X we've it all way if it up just be but timing in have of club would preferred the perspective, And to perfect

happen. wouldn't got call that have So but not on timing a these things had gap, it question probably this been

Michael Hug

not travel another on Ian. the the That clarifying on club was just exchange RCI And side, side. point,

of impact there business, the been exchange the terms just the important side. on there significant point isn't it an had as So on in

Ian Zaffino

higher the vis-a-vis also you sold environment. kind also thinking of rates a then this your about And payment But could how kind of about us lot is monthly interest rate I thinking what how that Okay. and a vis-a-vis bear? you're consumer know and margin then process. are through of interest the remind

Michael Hug

And Keep we that Ian. impacted new side, rates. Great ABS put about Obviously, question, we've place the fixed. Yes. the XX% it's are in our transactions talked in higher mind, of impact only debt the of is rates. by the corporate on

was last would seeing that, to interest year, an note we the the I April, improvement had As in that that rate in are rates. third it transaction so lower that did actually than we we closed transaction relates

see result and to translate other impact it way through we and accommodations, leisure inflation. As rates overall the VPGs look Inflation care] the relates you increasing that comes business, are that leisure seeing. into interest on the it travel view of and the higher at and we're when is hotels [live we

look forward are some at you when all-time side those we giving VPG we interest at the where on business, the net So highs. up the but of about being business, income, we've that overall talked on making rates feel

interest a little Having again, -- XX at actually increase. get of enough bit, which future rate do as table bps the maybe the drives as sales obviously, raise we talked overall business, new in for inflation said a being not provides XX us far demonstrate the that, to and that XX%, owners But the make the a rates usually overall to to great year, value recurring those about product opportunity Mike over once revenues.

Operator

[Operator Instructions]

Our is David Jefferies. from next from coming question Katz

David Katz

be? X of noting other growth just what about may be Two the have evolution line started one, the recalling I'm the wondering I or sales Number year-over-year follow-up, growth you there some that could portion in the the please. Wyndham then back financial or what visibility in what I'm business And having that crisis. indications of Wyndham trend seeing sales for and us.

Michael Brown

that. Michael. take I'll is Great. This

Wyndham the give Wyndham we obligations sales, to have a arrangements today deliver that us few On sales.

is In Wyndham fact, deal. part a our of project Atlanta

commentary we capital going own. relatively our inventory project forward. have our are that that we $XXX we million on As you stacked up sheet with forward inventory, into of look because investment around balance low That's

own because objective spend through burn over to declining next our consistent they as projects today, is you the X if should our ultimately years less balance capital Wyndham forward, where sheet. So go on the sales be are to not and

David Katz

quarter more you going little in about timing-driven. know cash what largely Could maybe ops color I'm negative that on terms But a the -- not you the onward. there just to just we're touched of sure if I in was see XQ bit in in some And from the then being and Perfect. release this. explanation

Michael Hug

do Mike, is happy that, to This David. Sure. and

the for things of the in So up significantly. first quarter couple full came first amount was which a than The year. the a the had X/X are last quarter, our inventory quarter, portfolio of of in higher spend happened. in we originations year Over

the year, in which last we portfolio quarter remember, of to second payments last second for year. drive QX you started ask in sales XXXX, to saw financing of at happen we XX% QX down If In in start growth, the of lower the half table to propensity was about XXXX.

was XX%. It over up

It confirmation only and the more the April, investors. there. our just the not very would ABS So we portfolio out and then our by of I coming resiliency the of more of because quality disruption closed great the markets, on week. in a of did execution basis. the And ABS And a but temporary finally, belief growth of business Normally, we in March. obviously banking in closed say transaction the the year-over-year push portfolio,

quarter we far As still cash our cash second and the XX% for of second our do be timing, to in third year we conversion. significant expect ABS would year, the flow that because transaction basically then transaction we'll flow half QX. free Overall, expect ABS to as in in be to neutral cash EBITDA the second QX, in the in

Operator

from America. coming is Your Bank of from next Asad question Dany

Dany Asad

So one VPG. more on maybe shot

expectation balance into the VPG factoring of of how is year? maintained your much existing VPG And touch can the for of new your maybe of outlook underlying year. that mix the the You outlook owners? full versus for on But the you

Michael Brown

I'll is This that. take Great. Mike.

largest outperformed The QX on which second in is the quarter size drag entire the the and is natural and are really though QX, of year. tour new our -- VPG, owner relative therefore, even our third have of we months, a smallest expectation

up summer it quarter laid So which that's move QX, owner adjustment VPG was performance that and more heavily a the we out. the through are drag as to will And outperforming expected. which range our the peaking because back third will the from second mix the a brings going full we natural the XX% great mix continue weighted, new current down year and have naturally head then months, we've in what into to that

macro is VPGs lot again, say XXXX underlying channels, that's would I with a of the seeing consistency you into from we're It's strong impact Thread get relationship are and What a basis. then holding really by-channel owner, marketing up our through between But tours, that those number. and Wyndham as the the as Blue the the through Hotels year. mix move non-affinity on our you rates creates the close the

Dany Asad

my on little bit Great. more financing. us bit follow-up, a a more -- could just you give And then on little consumer color if

existing they're rate So when a or you this owners payments finance their just of about in today? kind base tell current and making to -- interest their new prospective with and of table whether the environment your you're intention just maybe us down the can propensity seeing more less prepayments

Michael Hug

owners they people a down. by sales the have a less our of lot as of that ask So at putting as the Keep what new table, likelihood mind, at do is far sales for table. sales driven in

to up, to part drive move have the necessarily not consumers it is the propensity a put don't ability So down. that our strategic still to on our indication finance XX%

results I place, So as April that seeing mentioned, we put back in from in and good that.

terms In to improve portfolio up a of little you as because our prepayments, they're expect quality. would in bit, continues

to think strong. mix and other Overall, the the consumer remains again, the So not likelihood the indicator. by portfolio the that's, I any FICO, our higher But in the prepay. driven once higher

March end historically, this improvement from December always what we to X improved best at we've If of from the improvement the March, was years. seen at you saw year But March. December they delinquencies the look over in to was that

unusual the with happy weakness So propensity very or consumer prepayment aren't indicate or and strength. from anything a seeing financing

seen pretty FICO mix I we've now think the on consistent with the what that's portfolio. it's based in always

Operator

coming Chinchilla Bank. from is from question Ricardo next Your Deutsche

Luis Ricardo Chinchilla

please you given some capital provide I and the state refinancing of and strategy, us could the wondering color your if on markets. was XXXX the current XXXX maturities the

Michael Hug

from the to for Good Thanks Ricardo. question, you. hear Yes.

the markets there. with April. million Right between now, on have So significance corporate billion of we've so we'll we $X nothing Obviously, in the happens capacity next what now revolver, $XXX got and then. due outstanding see

markets So like we've being in and year in historically, The as we've happens or what had that to later X able and out far early taken have as X care refinance But tranches in up we or bigger come in it push between now 'XX. see another years. never that the debt of obviously, And problem we'll or have the a to XXXX. X then.

November to obviously, did take of this So year. last X we care maturity March the

care that to confident over and the ability scenario, decision to comes the the take $XXX happens due the as take the as months, us. market in next very how worst-case what watch $X care that X is next billion always of available again, we April. revolver of make to to our we'll Once So million we

always $XXX revolver. And and doing we of would We very pretty balance we're this revolver expect expect end would that I before, mentioned by this but to to the that. comfortable pre-COVID, carried We year. million $XXX be million low

we're our our make sure refinance able that at to with ability comfortable very the to stack time. So and appropriate capital

Luis Ricardo Chinchilla

That was helpful. very it. Got

significant you structure? variable have fixed current want my rate follow-up, you For fixed capital to the guys a the portion versus guys versus are you structure keep variable? thinking Or that considered of changing

Michael Hug

at something we a transaction that to variable we it. obviously, last has mean, look evaluate component we every I time It's transaction. a the did

was the stack interest generated Worldwide, capital if Wyndham in there low was that and have, inherited rate a you from think So environment. we of about very majority the

what capital watch Once that made the over and million we'll with $XXX with it we $XXX or months, again, we'll rate. go what the happens fixed to X the X with next about markets million. sense when when do whether see the at have billion, you our it's material is over banking time partners the really time say think that. comes to variable, with fixed wouldn't but I that's refinance So discussions or we'll $X the or

Operator

Our next coming from Barclays. Brandt question today is Montour from

Brandt Montour

I the This -- your of maybe them is into or And idea wondering they're if of we you expectations channel of But sort they're to of the be Most give of that recovery mix sort been going us reaching channels. up of heavy. for flow could just the have full tour think coming owner but from new discern sort answered, an peek topping existing comments the that a year. you your can through.

them what company average. just into So yielding the be peek than expect to or if those give are you higher a yielding lower overall channels us

Michael Brown

second a base. the our Great, does and the future reflect continued business question commitment our investing laying owner our because great this really into to about businesses our half back year Brandt. of for which is It's our growth, foundation

coming year So owner reflect as flow possible, a the the new expectations teen to want as XXXX, going quickly back tour the all of second base. the to it new growing commitment. half do it in That's owner from mid- we almost be from tour get of the to for really to And growth channels. upper that

Those X X primary channels types. are broken down into

a Blue through hotel with come which come owner lower Our relationship new the mix a owner than channels obviously. comes non-affinity higher all the Thread, and in channels, which the group with and VPG lower average with

going a and that's to all into the forward moment. lay of that this foundation which single year want guidance to high impact to the it We're a we planned do off for mid-single level we EBITDA the impact for is our when traditionally it, about what up talk and today, very is mix pull digits. that that digits baked where for that's of XXXX, remainder VPG talking which future, of welcomed the just to out growth laid causes higher we've So

X% shares our high of a flow in maintain our the first while out talking free us the teens. to We're is in market, capital of of cash returning of about quarter pull yield outstanding all that allowing the to expectation

just our the investment we for investing to through foundation to owner continue to for year right and back base. our that XX% allows but the growing into is 'XX us capital below new So maintain and the return, global EBITDA 'XX, them those 'XX lay new of think owners, strategy growth

Brandt Montour

then great just color. That's And follow-up. a

VPG year-over-year being in were well. of provisions loss down and hundred loan Your [leisure] as EBITDA margins a basis XQ high year-over-year the despite couple right? being impressive, points Up

there and as to the rest first year And in of a throughout well? maybe So cadence think of full margins the year should is the margin the guess timing timing the -- the for I question there we is, was about quarter? how benefit sort

Michael Hug

happened the Yes. I'll that. couple touch There in quarter. that a things on of were

some fact driven inventory the our that the first what was But by but in compared accounting First it quarter. independent of all, of and really in of we not was to selling first through inventory. relieve the driven, the the to trends, get our historical that basis, inventory saw less expensive that's cost sales first-in quarter expected, on a very quarter we in fourth and that's favorable we're was we first-out

and we Also, we busier at So guidance the our as originations. in for part provision full we're XX.X% of the the retaining into year benefit. XX% came year got to drive higher and XX% at that get the

quarter significant those the that were up margins business. to items in on Vacation drive Ownership helped the So the X really

historically think of about mid- were they with would we year year, line we expect low in been When full XXs. to that the be last kind in margins and where to

Operator

session. any end the over I'd to question-and-answer further of comments. management like closing floor reached or for We the our to back turn

Michael Brown

Thank you, Kevin.

year the people's Our our and leisure vacations consistent full the outlook strength of model. travel, performance of to commitment underscores timeshare persistent

on We and in forward of June many investor in you look seeing person. will multiple be conferences the May at to road and

our thank great help are would I a as trusted everyone, day. + Finally, to to at by Travel force associates, to you which recognition have driving the and Newsweek. Thank month and us the America Leisure in receive most a companies like

Operator

you. Thank conclude teleconference and today's That webcast. does

and for You have time, participation you your line day. at your thank may today. wonderful a disconnect this We

Travel + Leisure (TNL) 26 Apr 232023 Q1 Earnings call transcript