Travel Leisure Co. · NYSE:TNL
Travel Leisure — Q2 2020 Earnings Presentation
15 slides from Travel Leisure's earnings presentation, Jul 30, 2020
Slide 1: Q2 2020 Earnings Presentation
JULY 30, 2020 Q2 2020 Earnings Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements” as that term is defined by the Securities and Exchange Commission (“SEC”). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, belie
Slide 3: 2Q Results Versus Expectation
2Q Results Versus Expectation 2Q Actuals 2Q Guidance 1 Total Revenue $343M -- Gross VOI Sales $18M -- Adjusted EBITDA $16M ($20M) to $0M Adjusted Loss Per Share ($1.11) -- Adjusted 1H Free Cash Flow $88M $52M to $82M Dividend $0.50 per share $0.50 per share 1. Guidance provided on First Quarter 2020
Slide 4: Timeshare Well Positioned for the Recovery
Timeshare Well Positioned for the Recovery • 100% focused on leisure travel • Not reliant on air-travel, 95%+ U.S. population within 300 miles of one of our resorts • Timeshare units are conducive to social distancing - more space, kitchens, private laundry etc. • Wyndham is a trusted brand with pro
Slide 5: July Trends
July Trends • VPG’s increased more than 30% from prior year • Blue Thread sales represent 17% of new owner sales • FICO scores increased ~10 points • Resort arrivals were 93% by car 1 • Occupancy was ~60% • Net arrivals are ~30% lower than the prior year 1. July post resort-stay surveys 5
Slide 6: Extensive Footprint in the U.S. Where Our Owners Live
Extensive Footprint in the U.S. • 93% of owners are driving to a Vacation Clubs resort 1 • 95%+ U.S. population live within 300 miles of a Vacation Clubs resort • 161 resorts on mainland U.S. • 93% of North American sales on mainland U.S. Where Our Owners Live 1 July post resort-stay surveys 6
Slide 7: VOI Sales by Region
VOI Sales by Region Region % of Total 2019 VOI Sales Region % of Total 2019 VOI Sales Las Vegas 13% Tennessee 8% Central Florida 12% Hawaii 5% Gulf Coast 10% Pacific Northwest 4% California 10% South Florida & Caribbean 4% Northeast 9% Branson & Great Lakes 4% Carolinas 8% Desert Rockies 3% Telesale
Slide 8: Consumer Confidence Impacting Travel Confidence
Consumer Confidence Impacting Travel Confidence Sources: The Conference Board's Consumer Confidence Survey and CDC.gov COVID new cases (7-Day moving average) at the end of the month. The 7-Day moving average of new cases (current day + 6 preceding days / 7) was calculated to smooth expected variatio
Slide 9: Owners Engaged Despite Macro Uncertainty
Owners Engaged Despite Macro Uncertainty Wyndham Vacation Clubs Net Reservations 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 July August September October November December 2019 2020 As of July 28, 2020 and July 28, 2019 9
Slide 10: ARN & Panorama Introduction
ARN & Panorama Introduction $800B Online Travel Market Timeshare & Exchange Leisure Travel Technology
Slide 11: Appendix
A WYNDHAM ¢DESTINATIONS APPENDIX
Slide 12: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations Reconciliation of Free Cash Flows and Adjusted Free Cash Flows ($ in millions) Six Months Ended Continuing Operations 2020 2019 Net cash provided by operating activities from continuing operations $130 $266 Property and equipment additions (39) (50) Sum of proceeds
Slide 13: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations Reconciliation of Net Income to Adjusted EBITDA ($ in millions, except per share amounts) (a) Amortization of acquisition-related assets is excluded from adjusted net (loss)/income from continuing operations and adjusted EBITDA. (b) Amounts represent the tax effect
Slide 14: Non-GAAP Measure: Reconciliation of Gross VOI Sales
Non-GAAP Measure: Reconciliation of Gross VOI Sales (in millions) The Company believes gross VOI sales provide an enhanced understanding of the performance of its vacation ownership business because it directly measures the sales volume of this business during a given reporting period. The following
Slide 15: Appendix: Definitions
Appendix: Definitions Adjusted EBITDA: A non-GAAP measure, defined by the Company as net (loss)/income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxe