Travel Leisure Co. · NYSE:TNL
Travel Leisure — Q1 2020 Earnings Presentation
13 slides from Travel Leisure's earnings presentation, May 6, 2020
Slide 1: Q1 2020 Earnings Presentation
MAY 2020 Q1 2020 Earnings Presentation
Slide 2: COVID-19 Response
COVID-19 Response 1Q 2020 Results • Strong performance during January and February driven by healthy tour volumes, followed by resort closures in mid-March and 52% decline in tours in March COVID-19 Situation Overview • The health and safety of our employees, owners and members is our top priority •
Slide 3: 50%+ of Adj. EBITDA from Predictable Fee Streams
50%+ of Adj. EBITDA from Predictable Fee Streams • Predictability of cash flow VOI Sales / Exchange Transactions • Baseline of visibility into the second half of 2020 • Additional cost actions to reduce fixed costs Hospitality • Plan to be adjusted FCF positive under multiple Exchange Member Fees re
Slide 4: Cash Burn Analysis Based on Closed Resorts
Cash Burn Analysis Based on Closed Resorts Average monthly cash burn (rolling 12 months) Unrestricted cash Revenue $M Service and member fees 64 $1B Consumer financing 36 100 Availability on Costs warehouse facility ~23 months of G&A (24) $342M Opex (74) available cash at (98) current burn rate Leve
Slide 5: 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 etc. • Wyndham is a trusted brand with proven cleaning and s
Slide 6: Extensive Footprint in the U.S. Where Our Owners Live
Extensive Footprint in the U.S. • 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 6
Slide 7: Owners and Members Booking 2020 Vacations Despite Crisis
Owners and Members Booking 2020 Vacations Despite Crisis Vacation Owners Net Bookings Exchange Net Bookings 100,000 90,000 90,000 80,000 80,000 70,000 70,000 60,000 60,000 50,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 - - July August September October November December July A
Slide 8: Stronger Positioning Heading into Crisis
Stronger Positioning Heading into Crisis 2008 2019 Stronger margins VO segment adjusted EBITDA margins 16% 24% Capital efficient inventory sourcing Capital efficient inventory mix <25% >85% 1 Credit quality improved Average FICO on new originations 691 727 Average down payment % of Increased down pa
Slide 9: Key Metrics 2008 ─ 2011
Key Metrics 2008 ─ 2011 2008 2009 2010 2011 Occupancy (1) 75% 77% 76% 76% Adjusted EBITDA Margin (2) 16% 22% 22% 25% FICO Scores (3) 691 725 725 725 VPG (4) $1,602 $1,964 $2,183 $2,229 y-o-y 23% 11% 2% Tours (in thousands) 1,143 617 634 685 y-o-y (46%) 3% 8% Provision (% of gross VOI) (5) 24% 30% 24
Slide 10: Thank You
WYNDHAM ¢DESTINATIONS
Slide 11: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements” as that term is defined by the Securities and Exchange Commission (“SEC”). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, belie
Slide 12: Appendix: Definitions
Appendix: Definitions Adjusted EBITDA: A non-GAAP measure, defined by the Company as net (loss)/income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxe
Slide 13: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations Vacation Ownership (VO) Further Adjusted EBITDA Reconciliation ($M) 2019 2011 2010 2009 2008 VO Net Income attributable to WYND $ 404 $ 195 $ 156 $ 117 $ (1,281) Net income attributable to non controlling interest - - - - - Provision for Income Taxes 150 122 96 72