TNL - Earnings call transcript Q4 2024

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

Operator

Greetings, and welcome to the T&L Fourth Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mike Hug, the CFO. Thank you, you may begin.

Michael Hug

good everyone. and Shamali, you, morning to Thank

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

our morning, then XXXX. quarter, an fourth sheet for of our provide Michael Chief outlook. and our This I will full and Brown, Executive in Officer, outlook the overview greater results detail And and President quarter balance and year provide will

prepared our we Following call up will for questions. the remarks, open

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

Michael Brown

for fourth joining thank earnings call. quarter Good and morning, you our

finished in release saw XXXX. our continued As you thus in strong this XXXX morning, press momentum, we with far has which

we delivered XXXX, For $XXX million EBITDA. of adjusted

by of X%. growth tour business led Ownership success Vacation XXXX Our our fueled

X%. EBITDA also Travel saw adjusted Membership up We growth to return with &

all Accor our of from Our integration expectations. performance people, Vacation Club exceeded and a year X process standard

sales. tour Ownership was deliver line to our growth achieve Vacation of foundation top the plan XXXX, For to

an mix-driven with range. for the VPG X% reduction sales within growth, Club expected Vacation X%. Tours led Our were of the way expected offsetting XXXX

increased and The our a organization. basis X% proposition a A XX%. gross transactions growth by reflects in backed value new XXX adjusted overall continued product world-class margins from EBITDA in plans, sales. marketing point Aligned sales enterprise-wide The performance with with XXXX offering solid drives to increase result a strong VPG order Ownership XXXX. Vacation was and

transaction to to in owner expect XX% mix be in range XXXX. new of the We our XX%

on which focus our excited Nation. believe we to Airlines, incremental incremental XXXX, signed partnership regional in included sales expect provide we these are As partnerships we growth, Live opportunities, several lead Allegiant generation marketing new multiyear to national pipeline. partnerships We cross and opportunities. and tour will about VOI and a We which owner lead

We will life be year. focused progress as on throughout to come these the ensuring partnerships we

new looking Wyndham begin a easier satisfaction Blue We resorts launched Thus in to in from XX% we prior Club strong for making book are year. XXXX, far rentals. owners demand Late been our and Blue while it mature positive have push XXXX also find rates the to strong remains XX,XXX will more ] than consistent we experience. our seeing to as stayed downloads, and next search far approximately there We and owner on to Thread existing incremental vacation. and nest reviews user owners, [ they XXXX, in at putting continue marketing occupancy app, opportunities. their from our Thread channels Overall consistent saw

beyond. Vacation core the strong growth X completely indicators member new WorldMark of booking that further in opportunities a website. club This to rates launch Early the second all, in with of WorldMark our a higher satisfaction than of user and greatest Ownership path XX% system. All XXXX our revamp engagement website the we rate a our had has Wyndham increased Wyndham conversion There, show in owner largest by will app. with is the base clear remains business increase consistently for satisfaction our which highest and

to EBITDA work is and to $X adjusted the Turning and [ the ] hard $X million tours a reflection of X success Accor has increasingly locations. contributed the a seamless. integrate start to ABC in great cultures on expectation of hotels and above [ capture ability million. integration Accor along ] while allows to financial Vacation opportunities million be XXXX This for both by $X team the of new VPG Club. relationship of an to initial to the an in with virtually been the projections, organizations remain and us growth The our our continued increase sales confident with initiative

plan with for and we announcements physical great several Illustrated, year remains in of progress launching begin this As brand. for we continue to an Illustrated interest additional sales update Sports There anticipate this the on to and Sports make locations, XXXX.

Membership. growth & the not the Travel the the within with our business, the Club put of to of Travel growth very exchanges made of progress achieved past Those Specific target. they and Travel aligned were Membership our to Membership proud and exchange Again, migration did abate. to offset at have range business. from We flat tight EBITDA exchange year. very headwinds adjusted headwinds the was team & our and consolidation X%. decisive business a and this to our Turning the continued very on achieving & external continued structural Travel I'm team in pressure management internal costs. in Further

of XXXX. dividend repurchased X% a paid Capital for highlight $X allocation We share a shares. again the outstanding was year once and per in

of XX% we XXXX, XX, our repurchased of spin. shares outstanding at had As December the

inventory and disciplined also of cash investments. toward spend our in capital We remain allocation flow free

and at half at less than spend our year. $XXX inventory approximately investments Our levels, of capital million per stable remained pre-COVID annual remained

upcoming Let me now share year. direction the our strategic for

and against execute growth we and We to significant EBITDA which business flow. adjusted timeshare mid-single-digit allow generate core Membership to free adjusted us cash will to deliver expect continue Travel plans, our &

our against capital capital evaluate share disciplined potential while return strategic dividend execute continuing and strategy shareholders to increased transactions. continue will to and repurchases We expect allocation through to to

our to on business. capitalize grow successes Club and sales to for will Vacation EBITDA expect adjusted Accor that We and XXXX continue

Illustrated Sports launch year. to sales this plan also We

adjusted $XXX million I of Given out, expect and to our current strategic an in million range $XXX the outlook momentum we XXXX. EBITDA just laid

I Mike to further Mike? over will hand it XXXX on both results XXXX. to elaborate and

Michael Hug

Michael. Thanks,

color fourth results, flow will I balance on for our more provide cash As well XXXX. sheet, quarter discussing and outlook as our

of comments prior of earnings the quarter adjusted All refer of million, the share of will increase fourth of per same compared unless period EBITDA reported an year, and stated. diluted $XXX my to We specifically adjusted X% $X.XX. to

$XXX the For was EBITDA year, full adjusted was $X.XX. EPS and million adjusted

solid per of in despite carryforwards care the foreign higher EBITDA bidded million full had headwinds rate Our and tax compensation year keep full credit variable significantly mind year from performance adjusted total. $XX in And EPS XXXX was interest share. of $X.XX that

drive across businesses XX%. our year full margins adjusted continued we EBITDA margin to strong with XXXX, at EBITDA During

right the provision of levels the second second XXXX, quarter and tied our QX the EBITDA the of higher to and guidance quarter Looking X% half end we VPG our at levels. for we we about XXX,XXX business $XXX gap to the above to delivered Ownership reported year, at X% $X,XXX at in million. delinquencies saw as We portfolio, [ second ended units. to saw at regard end Throughout the full fourth segment $XXX historical to fourth quarter performance and was of the historical ], the of of full with the quarter, of of In year compared slightly our year expectations. of adjusted revenue high the million, of tours talked X QX growth as end increasing Vacation the XX%.

compared quarter XXXX, fourth we compared XX%. quarter & of million in Travel the segment are was $XXX to in the million the in Revenue to quarter expecting year. fourth around was EBITDA For of provision XXXX. the to our prior Adjusted flat remain million $XXX Membership $XX the

exchange was shift to which offset lower clubs reflecting increased by As but this and saw in transaction. transactions revenue increase continued as the were have of Travel to Club members expected, a X% exchange also down X% X%, an propensity mix transactions,

sheet. balance our to Moving

we remains capital position strong, to ] return fourth repurchases and of the dividend in share. financial and per [ quarter, through share $X.XX shareholders our to quarterly Our continued

million For of totaling of total repurchased million capital we paid returned stock $XXX the dividends and shareholders year, million. $XXX full to $XXX for

inventory the Vacation inclusive $XX acquisition million the approximately invested of also of We Club. for Accor

saw of share quarter. third the securitization release, XX% you $XXX term a million press in important our fourth transactions financing A closed with time X advance rate. the year. As October we in the in receivable completed We

end to Also, looking for the $XXX our in for an for share when flow conversion. at year, refinance And used we dividends, $XXX in term the acquisitions was term million expense. loan, corporate at levered. cash leverage. executed which was which and a ended X.Xx line Remember, X.Xx. interest cash was net annual flow below December, free what $X million year the to May million ratio due million in primarily with secured goal XX% our XXXX a to of save quarterly capital XXXX Adjusted in we right our anticipated loan was business repurchases, our approximately we loan EBITDA with year-end covenant facility purposes in XXXX year resulting allocation the $XXX expect to our adjusted free Overall, leverage combination we repriced and

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

guidance year, providing EBITDA. adjusted For are for million of a full $XXX range million we $XXX the to

VPGs of $X,XXX. $X.X VOI range $X,XXX We range with the expect to gross sales of in million million the in $X.X to

X% in flat XXXX. expect adjusted we travel to membership, For be EBITDA up to

hear rate tax what XX% the the be [indiscernible]. full results XXXX, you due For XX%. impact the exchange have in of of conversion above is of to than might also due impact dollar. The we the free to effective past during expected to that to otherwise income you XXXX us cash of flow you will for an in It's in year, in excess volatility is rate have more discuss been expecting XX%. the our possible foreign the expect Adjusted

$X,XXX XX%. of XX% the million million first $XXX we from in million. $XXX tax at quarter range VOI adjusted a and $XXX EBITDA During of the first rate sales quarter, with to $XXX to $X,XXX to ranging VPGs million, expect to

in to Travel we capital strong and first have the great our per on team dividend dividend. In fourth of pride to quarter closing, consistent return quarter and confidence $X.XX & to Leisure. 'XX consistent shareholders, XXXX we was the our Board take business. strong As reflects over a We a our another deliver performance our year to continued intend XX% share, we guidance of and of continue increase recommend at our XXXX in by performance our

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

Operator

comes with from [Operator question And America. of first Dany Asad Instructions] the our line of Bank

Dany Asad

of seems little VPG bit like outlook tours below. your in ahead and in quarter It came were the a

throw could difference. So unpack some you numbers around what that just if and kind drove explaining the of

Michael Brown

Mike this Brown. is Dany,

those full the cover hitting and for together of have to really tour team over the the can on X% in been these degree year. 'XX into of of XXXX, try just the both we new 'XX And full XXXX, you the of in mid-single-digit year for we owner the making you great look the proud first years me growth When at level. benefited deeper confidence year to while dig years. Let from half a cadence we Super QX. that of on had prior then investments XXXX generation. growth

called As we softness on market. think we got Vegas had to some we QX the the our in call, midyear I Las point, out

of Some continued QX. into that

cadence did would end investment we channels marketing impact low of we look called summertime year out as regional the year business the some tougher the to That for But is we first I addition the first the performing we've culling first well lower on toward half in year. late this All typical ramp growth XXXX. which had at start year our where the marketing that, part I then call back of we to is a you'll the them partner just all, progresses also we What in comps our made efforts the the lower as the basis. QX will half and channels, of all with efforts marketing get an be last against the expect performing as over for add X very up to what this in the the that year-on-year in regeneration of for of and the steady stand last on year and years, see in very of a out. year, and plus of means come as

confidence in lot for growth tour full the a year. of have level that We mid-single-digit

Dany Asad

of VPG that of close relative have the how how much a trying is Understood. to question that there calling to much I Mike, quantify and or or of your And of that so little either this pricing maybe is was understood bit but underlying expectations, from in like like for whatnot? rates strength calling still on. up we're going -- Would okay, been was VPG

Michael Brown

have be heavier fourth quarter above and VPG that years, ] So owner still $X,XXX, by that [ mix a X aided that absolutely. some business when last been for we a you'd above $X,XXX level in great the to quarter. X,XXX strip consistently you is the was meaning were really and powerful toward we that over out, mark our is adjustment, Were But model.

strategic So the your yes, you as of two, us it EBITDA It year. XX%, getting a, mix fourth XX% the channels. to was and of new next quarter: year. lower-performing in advantages earlier X the head be sort owner maximize the more of allows into address in you And margins

of you if really opposed to or Most it equalize you're a mix VPG remain quarter, was strong as going pretty by there, a VPG close which have still year-on-year. even but consistent great QX. So was that rates, price-related for transaction-related to beated adjustment,

Operator

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

Chris Woronka

you a first-time that owners. Was any slightly on mix change especially maybe trend kind we've talked of you're new as you're there, mentioned in year. Congratulations if a propensity getting finance? solid And of seeing open higher very to about

is on anything are to there trends seeing of any the financing side? So we the

Michael Hug

Chris, Hug. other as as the changes to this a or question. for We more less any really Thanks finance encourage financing. haven't is to far than propensity make the we when decision seen Mike

minimum in XXX to terms good terms in the FICO. consumer that seeing consumer, quality So with of consistent a continue of we're remain

highest see come it company. our was through the is can of average for the the XXXX XXX, FICO when in which history You

more close seeing the not really table the at So cash needed financing to sale.

FICO you VPG. I And on good in think would really the consumers see I were quality on have our a and say generate terms do seeing flow we loans strong to of ability it remain to originate.

Chris Woronka

Michael. a it as might follow-up just be and And Okay. for

run So cash. travel terms in of clubs and for you've you've said there exactly -- done memberships, what you thing that

You've been taken very on disciplined costs. --

something that guess, there's I keep doing make much is at So small do to looking transformative and things of there is pipeline the growing forward, a kind there? clip. in a just -- to hey, difference think, Or how enough any thought you modest

Michael Brown

business different has initially transactions, look the a is run you evolve are structural us of how go we currently this recognize the timeshare. exchange years, didn't when continue to on albeit And a come been for And business, the travel which same business the at to Holistically, X effectively. This headwinds is club last We've expected the at way growing we evolution, this looking its membership although we're we transforming new now Chris, the business, that at way launched business. these it, over is last grower is at a that we've the time, traveler group those years. over consistent transactions margins. quantum few holistically outside

for that actually the we that to very grew accelerate year-on-year expect important total in We business transaction-wise, fourth and in XXXX. travel something quarter. happened So membership

to a very we're VO of happy but We're direction ways and business. rate. business at there, us & at our priority, that question always blinders is happy to we Travel to want with opportunities prevent organically business. grow the background your organically, we capital but with with getting we just evolution won't Travel I although the very that else, looking with ability faster because Membership out to to business on. continue do they're return Ownership but won't & at the to grow our from look with with always Membership first grow if this mentioned, it believe that like We'll our So better and everything Vacation has our

Operator

the come David Jefferies. Our will next line question of with Katz from

David Katz

forward, receptivity the Congrats I'd all your do There's and What of quarter. your the level, in across get a outlook what consumer your it and inconsistency our have economy. the on perspective you're to I on wanted going seeing. coverage strength, just and and frankly, past, in the of higher consumer right? so much In just love perspective to was sort on landscape

Michael Brown

Absolutely, David.

Mike it always hand On at end. the macro I'll consistently to then and look over consumer sentiment, I've at start, here points a appreciating really day communicated. X And we the there's me that indicator per data from single been what has is Let get And inflationary study is consistent leading has the first which per of of remains out which into Michigan, offering few that's guest. in and is originally University view the the just business that this our of volume but a part usage general. remained only the in we the not that comes year, their we here in of macro the every get we years that to Then people, environment us for choice. measure the every us vacation anticipated. their day incredibly And been also consistent guest elevated of that affirmation over that product value for past that showing it an volume level,

I we on out fully XX% And we of this statistic, a our their X have share retention paid of and it. X owners consistently but have know ownership, rate for

So product, consumer the our and super at for moment. value, high acceptance remains usability

about also of forward lot year-on-year. There's bookings. talk a consistency We

were the a at only days just forward where are XX year we're time bookings. We year. the into But last on same behind tad we

we've to relatively our be that consistent year got that So make for flat a been very other well. to doesn't as me, of base given last indicate to ground little owner much than bit has up

the to super And is remain Mike then I'll our measure discuss macro hand and last consistent. the first to it bookings strong those is we portfolio. over the related So delinquencies, consistently VPG, which sentiment very X, our forward

Michael Hug

need historically order really than refer aren't table, to more as consumers X they financing the back and have in seeing we -- to the at the sales I'll David, the portfolio, transaction. sales it close things, our to relates

as So the gap they second to a in level terms the saw QX have. in bit in a and QX. gap you at sign that delinquencies seeing bit quality between then in a quarter. capacity little good good when little my same a I delinquencies consumer look highest in to the always actual comments, that's the saw still delinquencies historical we XXXX and mentioned me at of purchase has that We And close

actually at year to they're we kind look while end the delinquencies when of the away end has the compared at still how of QX. So portfolio at levels, better than they were the progressed historical shape of are in

So to on the things X mentioned, product. overall, the the an as indicator strength we portfolio continues Michael is of table of that our on at as at sales the poach look is consumer of that the that

David Katz

I quickly of its follow if But we share an XX% that And can a loss up know given updated fair of I loan more inside gets kind just -- the metric spend guide inside provision. than of of it's XX%. on you've to probably of do this that do approximately a to? level just -- arrived aspirational kind Or X go you is And think the we've sense like you of I get to level? for, that aspirational day time. the at want you'd have an

Michael Hug

it's right? longer portfolio. mind, of as people, we an usually a as the provision, great XX% range. incremental about at earnings I they provision far defaults -- level that the to every Keep term, in while that. we there's in impact, Well, and they finance, dollar things and when be think of the think So get look to portfolio, like But the delinquencies would off we incremental provision we XX% like for the

in we future, when is to for that, in come it provision we see guidance future, to the rate the portfolio But make when start do see for to again, net XXXX greater start once at XX%. So might down to come that income. higher the ask at the get to decision get we table that growing cash less conscious and down, interest a the

XX%. to revenues, what's again, decisions important that. a So it to once it's as when make we I term, at we'll we as it closer And think to just long great just of to start see to delinquencies increase driving it And back get But in we see important could be financing look XX% levels. come my that get historical down mind, percentage it's so to the spread. while look at look,

Operator

line Securities. Scholes the from Patrick comes question Truth of with next Our

Charles Scholes

see you question going A recent rates rate do see the or environment headwind, given your year? for interest and most for Mike, either tailwind current expectations today was priced or where thereabouts securitization be forward Mike. your and a where neutral where you this

Michael Hug

Yes.

the probably So changed look, impacts question. a has it's in X negatively way the a since great things election business. That's that of potentially that the

are up bps October You since look XX actually the at benchmarks XX.

from we flat probably positive. quarter headwind. little expense third starts of XXXX, say back It talked by October transaction year, we end would the bit I like of to in on interest call, be the ABS So maybe closer expected rate when the perspective, on that the a for to a looks the a a which now

the impact do. more think maybe and far XXXX assumptions to going bigger were little is look the I what when a at that interest were forward rates aggressive as really when we as

impacts So in probably X for the like a at that in thought, how 'XX to the maybe slight of the but closer see over year, flat full and we'll X tailwind we headwind, months a the plan what longer-term probably doesn't minor really impact become and the year happens or a 'XX end forward.

Charles Scholes

Okay.

that or maybe Sorry headwind that? X-point maybe me to it at quantify to is maybe for think least X fair one, at to

Michael Hug

potentially interest this probably depend X that you're do that with -- on come year, Yes, we probably mean transactions in talking what in year, I what's million plan for do year they you're the $X expense the in at. to -- this done we the

Charles Scholes

And a question Michael... for

Michael Brown

hear Patrick, the it, you can't at moment. Patrick, Could please? question, please? your if you're question. the repeat didn't Could we asking repeat hear you it the question, we

Charles Scholes

sorry. I'm

breaking me? I phone hear is think you my up. Can

Michael Brown

ahead. Go can. We

Charles Scholes

realistic regarding might year? to this we hear think Sports Okay. announcement Michael, Illustrated, is it

Michael Brown

to starting only And insight was make this robust. to bit for just Illustrated So -- we the to I'm provide year. We going assume is heard pursuing can real days do our a and additional get is these have location more we existing into what a remains which we more shorter in expect XXXX. pipeline so gives path been given conversion the gives announcements we opportunities, opportunities markets toward that the recap, confidence announcements and sales, us just heard gives what closely estate -- Sports that's Sports sales between we announcing that to it Illustrated anticipate us our probably us question year, this that

Operator

line Our next Sachs. Dove question from comes Lizzie the of Goldman with

Elizabeth Dove

VPG. wanted I go just back to to

is think throughout your setup. high comp about factor bit a a that's that like guidance driving decel? the year. of I but geographical anything the seems implies the talk product that, XQ that kind point conservative and pretty that? I you there, then mix, Any deceleration factors, of it drivers a reasonable of there's a maybe like Could of kind understand

Michael Brown

tends QX basis. going to Well, naturally is on our which highest higher be VPG to drive quarter, a owner a total

the new year. Both in we and year of flow of year. middle on guidance. are tour a on to to because our decel back As tour get Dany's flow tour accelerate the full throughout we to flow, PPG highest primarily question to we misadjusted as on The think, move in our the cadence I expect it's come throughout our year move year. summertime important, always is and mix throughout our year, to a through lowest the going our our have to flow greatest the to tour do drive accelerating that those add and the owner we

in the that that where the we'd still With setup, guide guide owner the for guidance that the summer said, along positive anticipate we will additional our direction year normal what we is VPG a full year new VPG very -- bring do think like benefit of on year is this coming our cadence from hanging that's that year the QX. channels to down our full but seasonal basis. we So into play the a from with anticipate in and like a

Elizabeth Dove

for some that how of but in going That helpful. think And in Any meaningful this there? sales you I to start Got be that can it. again, can expect past the I kind of business we sense. Sports of XXXX. given you understand announcements, going makes kind you're then color Super said numbers that other kind eventually. Any around of Illustrated the back details to that some share of you've size year? just

Michael Brown

would to year. Sports equate I Illustrated Accor last

is what numbers year, we're can that year the but in you will X, learn not year about meaningful getting for and not first this and even customer to acceptance sure This noticeable sure doing model. sales This minor making year. is And good is to there's the be start that's product getting getting right. next meaningful that about or I'm it's in usage to then it product say about operation, any the important. next would physical why modifications they'll sense to The year, a into I the be

then your get what of the of you from future adjust market off brand, new and it a wants any for just sense You projects.

is and objective get to our get individual the consumer this start markets that's sales So we'll be to in in. into acceptance year

Operator

of with comes Stephen Grambling Morgan question the next from line Our Stanley.

Stephen Grambling

ended on thinking growth for think But in out? this you're net the about how I balancing the but as selling about and year ultimately of [ I may have could ] missed shake was kind both owner growth where curious ahead year that new where and we owner to infra comments. existing

Michael Brown

came of growth that total, growth Accor In we Club our Most Vacation in minimal XXXX. had from owner acquisition. owner

-- Wyndham the there's are X of businesses. aspects We

But enjoyed our who's bringing whatever XX, that XX% XX% lifetime sweet their even of we them there's for that years. exit ownership. exit want because our XX, into spot owners over we place time there's those and XX% owner X value, new than to been have in We to are maybe to owners their obviously, X a stay, consistently trading be focused an the And new of XX satisfied want for equation owners. us vacations to decade a owners our reason, greater on naturally, What that those that a have XX% transaction we're to time ownership. we're to Highly a just owners. with to with types mix replacing reason a is but

simple have greater the replacement to base on holistically mix, our talking do So of of the are we the we owner with owner our get in to transaction coming above foot pedal And revenue the the of we of year on we net But a owner it's continue a consistently we've at schedule growth XX% have. moment. that that for getting above will that are we ahead XX% and about X which per new mode back want out me that, pandemic. for about the our a growing base to for reasons the reason owner done

Stephen Grambling

I a the maybe on related upgrade how and existing And of comparing kind the to this sight and you changing that of do timing either you're is evolving or follow-up an line Is cycle? owners are question, new the that getting but what traditional on of the guess have terms in of that even in the cadence propensity. this, of

Michael Brown

took looked it's for consistent. additional we purchase, upgrade There speaking a and were we was purchase over a every of look about some first point that in XX you recently, consistently and years, at VO get been cadence the super We time. dollar where at went hadn't back $X.XX the

answer that to really to past we experience But things are just allowing higher. question, incredibly speaks that your think high the vacation more, do to focus to the already simple and get consistent years. X it's of satisfaction, on even the vacation ownership our it's how going on And consumer over an model. consistency to how I drive remained us activate people more

Operator

Our line Ben next Securities. of comes the Chaiken with question from Mizuho

Benjamin Chaiken

or on it particularly curious your just VO, Within was low. product of cost

just Or there's balance? fluctuation? follow-up. X is quick this anything seeing quarter-to-quarter in curious normal And inventory then Just the you're if notable

Michael Hug

Yes.

sell know, quarter-to-quarter it's out So just as you the fluctuation we the way first with normal basis. product

really, as particular unusual as So thing there nothing far any driving it.

You the just can sold. quarter being the to fluctuations have inventories as it what within relates

So nothing significant there.

Benjamin Chaiken

Membership. switching then the to And Travel &

in it in what just what is first think the Maybe side, correct, base growth -- to you upon could basically, then you're and how little we And sourcing customer customers the as about growth nonexchange. business? bit? the I is XX And touch is a easier think seeing, better? simply adding was about call, referenced driven BXB but it little you're seeing. that this this on that revenue do mining simply I'm a Or inflected by trends looking if again, then is existing Is the your months, incremental earlier have comparisons? non-exchange at

Michael Brown

super Well, again, remind And were we that $X.X XXXX happy performance. million. want with the to movement I business, everyone, EBITDA is the do in X% size with of

So tight flat for that to range a business. pretty do

travel growing and to clubs already pragmatically make have has is in level a the a time XX energy back sure that we and X we're chasing that that to affiliate. job grow are not growing a we're great quality. there, growing club make we at quantity, side, bringing that of done the and shown clubs our at form revenue put X more sure revenue team every a us a efficiently commitment intelligently of the On the to not existing time it -- took had to but in then maximizing clubs, new or we using XX time, From at lot into step instead so to a that the per but

the against full What will number. direction the our a I & the the watching consistent it's year And of team. and cost watching that Travel in from the it entire growth Membership that, just disciplined margins, XXXX. really process It's and but out in the the going got triangulate think headwinds form in to cost trying get like in is a balance prepared right grow to delicate that's we'll and our growing is to direction the in in the really exchange of I hard got traveler it's called outlook, be working the membership as it exchange, of management We structure. are required a we XXXX, about in transaction remarks, and we why management We've And XXXX and right aligning balance. in we've 'XX. clubs to travel cost

Benjamin Chaiken

And squeezing X then just very more it. Got in quickly. Helpful.

Just convert you should convert into or SI trust? estate that's -- you you regarding? -- what the suggesting you the real the SI a already Did expect within did clarification. the announcement Or ], are already saying hotel [ we are

Michael Brown

ground-up is to a next estate we expect opposed development, real should property transaction to that going next conversion a as announcement. You announced be the the

Operator

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

Brandt Montour

or that's different if versus this last a way could a brand then that you just out forward package tours being by made perhaps comment tours, that an was bookings across it owner -- the a it's year And just owners to comment? or tad care curious behind at you levels segmentation. by and I'm the bit about you year. look flesh consumer you Michael, if cohort if little if if nonowner regions,

Michael Brown

first Well, an simply all, owner was comment. of it

as We Our pretty much because arrivals for bookings last total look many the occupancy forward same reasons. owner just is at is was like it to important year.

is, foremost I they they former -- more. buy I and of the to Hotels remember said, drive and the is first and vacation love the customers we buy company, it because on first their very joined they love they simple Wyndham when want product, former when use model your more. The And arrivals going CFO owner

year So our a getting focus club, over to owner investment a this between and to between vacation. in campaigns focus between of it's the Wyndham them it's that important our us the here capital launch is arrivals and very the on team significant outbound all WorldMark and app on customer Club about phone metric

we're that be lot to bookings WorldMark, We're a app, from dedicating capital to within say year. I their we club in just think I their do just in want because even to when get and capital said, going satisfied a to we investment make that's is going increasing not spend what just sure more a website I We're typically that owner investment. significant I what base. improve once our which

So that's February. it. look middle Again, of the it's really we how at

we -- if year-on-year, efforts have point that these not time flat on to -- very at in don't number you So of monitor lot it's mistake, things we We any But all. to no make a we we get that communicate where are important. stand a year-on-year basis.

Brandt Montour

for Great. -- just faster can of WAAM. what some look that's this VOI, grew contract percentage you the did And provision. -- That on you look of Mike it can to you loss increase an but -- We absolute loan that sort time loss of been it propensity sales, on can growth, how increase was finance maybe consistent. said year-over-year, at you a net as extra on at or it Mike, then look of there much provision than which year-over-year, VOI spend loan -- already, was no

the then major be metrics? assume of there's there if helpful, X much credit you in that too. versus change only it those are in the else how can was So I but mix factors, other something would quantify,

Michael Hug

it of is the in year. just delinquencies the increase of Yes, to saw we half the be going the in first majority

up every credit, month, what ever that call half it's XXX, is second Obviously, year and quarter our delinquencies originations to say on would our $X we're been at the the first XX%. I caused looking up We're guidance in delinquencies we to are us portfolio. kick but what terms So originating. as of the in billion you've in saw of got really not strong at they've a move

historical performance it's say levels. to a would as measured by delinquencies I So portfolio compared

Operator

of turn CEO, would back end question-and-answer session. Michael floor the for reached to have like the I the Brown remarks. to closing We

Michael Brown

for once joining you again today. us thank Well,

associates you that a out our tragedy we is East responsiveness and best In Coast, field West, This just name team our we field teams. shown of our the to care New recognize and year to moment Before past their a been challenging Thank our each the a to They fellow has conclude, members. owners continue associates. who especially I'd like wildfires of case, are. and to to devastated few. take reflect which I'm have Orleans, appreciative with hurricanes the

Mike I call. Have on eventually you and the conferences upcoming in to forward look both QX day. that, With seeing good a and

Operator

may concludes your this participation. your lines today's And at this conference, disconnect you time. you for Thank and

Travel + Leisure (TNL) 19 Feb 252024 Q4 Earnings call transcript