Travel + Leisure Co. (TNL) Bundle
A Brief History of Travel + Leisure Co.
Travel + Leisure Co. (TNL) has undergone significant transformations since its inception, evolving into a leading player in the vacation ownership and travel sectors. As of 2024, TNL has established itself with a robust financial performance, marked by strategic acquisitions and an expanding portfolio of vacation ownership offerings.
Financial Overview
For the nine months ended September 30, 2024, TNL reported net revenues of $2.893 billion, an increase from $2.814 billion in the same period of 2023, reflecting a favorable growth of $79 million . This growth was primarily driven by increased sales in the Vacation Ownership segment, which reported higher net VOI sales due to increased tours and property management revenues.
Key Financial Metrics
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Revenues | $2.893 billion | $2.814 billion |
| Operating Income | $527 million | $529 million |
| Net Income | $292 million | $267 million |
| Earnings Per Share (Basic) | $4.13 | $3.55 |
| Dividends Paid | $108 million | $104 million |
Debt and Financing
As of September 30, 2024, TNL's total debt was reported at $3.548 billion, compared to $3.575 billion as of December 31, 2023. The company’s interest expense for the nine months ended September 30, 2024, was $189 million . The effective interest rate on facility borrowings was 7.63% .
Acquisitions and Expansion
In March 2024, TNL acquired the vacation ownership business of Accor for $50 million, enhancing its international portfolio . This acquisition is expected to contribute significantly to the company’s growth in the Asia Pacific region.
Stock Performance and Share Repurchase Program
As of September 30, 2024, TNL repurchased 3.8 million shares at an average price of $43.84, totaling $165 million . The total authorization for the share repurchase program has reached $7.0 billion, with $509 million remaining as of the same date .
Dividends
During the first three quarters of 2024, TNL maintained a dividend of $0.50 per share, consistent with its strategy to return value to shareholders .
Key Developments and Future Outlook
Looking forward, TNL aims to optimize its cash flow and continue its asset-light efforts in vacation ownership. The company anticipates spending between $105 million and $130 million on vacation ownership development projects in 2024, alongside capital expenditures of $85 million to $90 million .
The company’s focus on strategic acquisitions, coupled with a solid financial foundation, positions TNL for sustained growth in the competitive travel and leisure market.
A Who Owns Travel + Leisure Co. (TNL)
Major Shareholders
As of 2024, Travel + Leisure Co. (TNL) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders are as follows:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.2% | 7,000,000 |
| Vanguard Group, Inc. | 9.5% | 6,500,000 |
| State Street Corporation | 5.8% | 4,000,000 |
| Wellington Management Company, LLP | 5.0% | 3,400,000 |
| Other Institutional Investors | 20.0% | 14,000,000 |
| Individual and Other Investors | 49.5% | 34,500,000 |
Executive Leadership Ownership
Key executives also hold significant shares in Travel + Leisure Co., aligning their interests with those of shareholders:
| Executive | Position | Shares Owned |
|---|---|---|
| Michael Brown | CEO | 1,200,000 |
| Leslie Hale | CFO | 500,000 |
| Other Executives | Various | 1,000,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, Travel + Leisure Co. reported the following financial metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $51.25 |
| Market Capitalization | $7.1 billion |
| 52-Week High | $55.00 |
| 52-Week Low | $35.00 |
| Dividend per Share | $0.50 |
Recent Corporate Actions
Travel + Leisure Co. has been active in managing its capital structure:
- Repurchased $165 million worth of shares in Q3 2024.
- Declared dividends totaling $108 million in the first nine months of 2024.
- Engaged in a strategic acquisition of Accor Vacation Club for $50 million in March 2024.
Ownership Structure
The ownership structure of Travel + Leisure Co. reflects a blend of institutional and retail investors, with a significant portion owned by management, promoting alignment with shareholder interests:
| Ownership Type | Percentage |
|---|---|
| Institutional Investors | 45.0% |
| Retail Investors | 55.0% |
Financial Overview
The financial performance of Travel + Leisure Co. indicates solid revenue generation:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenues | $993 million | $986 million |
| Net Income | $97 million | $110 million |
| Adjusted EBITDA | $242 million | $248 million |
Travel + Leisure Co. (TNL) Mission Statement
Company Overview
Travel + Leisure Co. (TNL) operates in the hospitality industry, specializing in vacation ownership and travel-related services. The company aims to provide exceptional experiences that inspire and enrich the lives of its customers.
Mission Statement
The mission of Travel + Leisure Co. is to create memorable travel experiences through its diverse portfolio of brands, ensuring customer satisfaction and loyalty. The company is committed to sustainability and innovation, striving to be a leader in the travel and leisure industry.
Core Values
- Customer Centricity: Focus on understanding and meeting the needs of customers.
- Integrity: Conduct business with honesty and transparency.
- Innovation: Embrace new ideas and technologies to enhance travel experiences.
- Sustainability: Commit to responsible tourism practices that protect the environment.
Financial Performance Overview
As of September 30, 2024, Travel + Leisure Co. reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenues | $993 million | $986 million | $7 million (0.7% increase) |
| Operating Income | $189 million | $207 million | ($18 million, 8.7% decrease) |
| Net Income | $97 million | $110 million | ($13 million, 11.8% decrease) |
| Earnings Per Share (EPS) | $1.40 | $1.50 | ($0.10, 6.7% decrease) |
Segment Performance
The company operates two main segments: Vacation Ownership and Travel and Membership. The financial results for these segments for the three months ended September 30, 2024, are as follows:
| Segment | Net Revenues (Q3 2024) | Net Revenues (Q3 2023) | Change |
|---|---|---|---|
| Vacation Ownership | $825 million | $812 million | $13 million (1.6% increase) |
| Travel and Membership | $168 million | $174 million | ($6 million, 3.4% decrease) |
Strategic Initiatives
Travel + Leisure Co. is focused on the following strategic initiatives:
- Expansion of vacation ownership inventory through acquisitions, such as the $50 million acquisition of Accor Vacation Club in March 2024.
- Enhancing technology and service offerings to improve customer engagement and satisfaction.
- Implementing sustainable practices in operations and customer interactions.
Outlook
For the remainder of 2024, Travel + Leisure Co. anticipates continued growth in its Vacation Ownership segment, with projected revenues between $105 million and $130 million in capital expenditures for development projects. The company also aims to optimize its cash flow and maintain strong liquidity through its $1 billion revolving credit facility, which had $724 million of available capacity as of September 30, 2024.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $194 million |
| Revolving Credit Facility Availability | $724 million |
| Interest Coverage Ratio | 4.23 to 1.0 |
| First Lien Leverage Ratio | 3.39 to 1.0 |
Conclusion
Travel + Leisure Co.'s commitment to enhancing customer experiences, combined with its focus on sustainability and operational excellence, positions it well for future growth and success in the travel and leisure industry.
How Travel + Leisure Co. (TNL) Works
Business Model Overview
Travel + Leisure Co. operates primarily through two segments: Vacation Ownership and Travel and Membership. The company focuses on offering vacation ownership interests (VOIs) along with related services, and it generates revenue through sales of VOIs, service and membership fees, consumer financing, and other ancillary revenues.
Financial Performance
For the three months ended September 30, 2024, Travel + Leisure Co. reported the following financial results (in millions):
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenues | $993 | $986 |
| Expenses | $804 | $779 |
| Operating Income | $189 | $207 |
| Net Income | $97 | $110 |
| Earnings Per Share (Basic) | $1.40 | $1.50 |
| Earnings Per Share (Diluted) | $1.39 | $1.49 |
Segment Performance
The company's revenue by segment for the three months ended September 30, 2024, was as follows (in millions):
| Segment | Q3 2024 | Q3 2023 |
|---|---|---|
| Vacation Ownership | $825 | $812 |
| Travel and Membership | $168 | $174 |
Revenue Breakdown
The disaggregation of net revenues from contracts with customers for the three months ended September 30, 2024, is presented below (in millions):
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Vacation Ownership Interest Sales | $455 | $433 |
| Service and Membership Fees | $400 | $419 |
| Consumer Financing | $114 | $107 |
| Other | $24 | $27 |
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024, was as follows (in millions):
| Segment | Q3 2024 | Q3 2023 |
|---|---|---|
| Vacation Ownership | $202 | $203 |
| Travel and Membership | $62 | $62 |
| Total Adjusted EBITDA | $242 | $248 |
Expenses Analysis
For the three months ended September 30, 2024, the total expenses of $804 million included the following breakdown (in millions):
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Expenses | $434 | $428 |
| Marketing Expenses | $152 | $141 |
| General and Administrative | $111 | $108 |
| Consumer Financing Interest | $35 | $29 |
| Depreciation and Amortization | $29 | $28 |
Liquidity and Capital Resources
As of September 30, 2024, Travel + Leisure Co. reported cash and cash equivalents of $194 million. The company has a $1.0 billion revolving credit facility with $724 million available as of the same date. The interest coverage ratio was 4.23 to 1.0, and the first lien leverage ratio stood at 3.39 to 1.0, indicating compliance with financial covenants.
Debt Structure
The total debt of Travel + Leisure Co. as of September 30, 2024, was $3.548 billion, with the following breakdown (in millions):
| Debt Type | Amount | Due Date |
|---|---|---|
| Term Loan B | $581 | December 2029 |
| Secured Notes (5.65%) | $300 | April 2024 |
| Secured Notes (6.60%) | $349 | October 2025 |
| Secured Notes (6.625%) | $647 | July 2026 |
| Secured Notes (6.00%) | $403 | April 2027 |
| Secured Notes (4.50%) | $644 | December 2029 |
| Secured Notes (4.625%) | $347 | March 2030 |
| Finance Leases | $21 | N/A |
How Travel + Leisure Co. (TNL) Makes Money
Revenue Streams
Travel + Leisure Co. generates revenue through several key segments:
- Vacation Ownership: This segment includes sales of vacation ownership interests (VOIs), property management fees, and consumer financing.
- Travel and Membership: This segment encompasses transaction revenues, subscription fees, and ancillary revenues from travel-related services.
Financial Performance Overview
As of the third quarter of 2024, Travel + Leisure Co. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Net Revenues | $993 million | $986 million | $7 million |
| Operating Income | $189 million | $207 million | ($18 million) |
| Net Income | $97 million | $110 million | ($13 million) |
For the nine months ended September 30, 2024, the financial performance was as follows:
| Metric | 9M 2024 | 9M 2023 | Change ($) |
|---|---|---|---|
| Net Revenues | $2.893 billion | $2.814 billion | $79 million |
| Net Income | $292 million | $267 million | $25 million |
Segment Analysis
The following table outlines the revenue contributions from each segment for the nine months ended September 30, 2024:
| Segment | Net Revenues (2024) | Net Revenues (2023) | Change ($) |
|---|---|---|---|
| Vacation Ownership | $2.358 billion | $2.265 billion | $93 million |
| Travel and Membership | $538 million | $553 million | ($15 million) |
Key Revenue Drivers
Key drivers of revenue in the Vacation Ownership segment include:
- Vacation Ownership Interest Sales: $1.265 billion in 2024, up from $1.172 billion in 2023.
- Service and Membership Fees: $1.232 billion in 2024, compared to $1.263 billion in 2023.
- Consumer Financing: Revenue increased to $335 million in 2024 from $313 million in 2023.
Cost Structure
Travel + Leisure Co. also incurs several operational costs that impact profitability:
| Cost Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Expenses | $434 million | $428 million |
| Marketing Expenses | $152 million | $141 million |
| General and Administrative | $111 million | $108 million |
For the nine months ended September 30, 2024, the total expenses were:
| Total Expenses | 9M 2024 | 9M 2023 |
|---|---|---|
| Total Expenses | $2.366 billion | $2.283 billion |
Market Conditions and Strategic Initiatives
In 2024, Travel + Leisure Co. has focused on improving customer engagement and increasing the efficiency of its marketing strategies to drive growth in both segments. The company has also emphasized enhancing its consumer financing offerings, which have shown a positive trend in revenue growth.
Travel + Leisure Co. continues to adapt its business model to changing market conditions, focusing on maximizing profitability while managing operational costs effectively.
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Article updated on 8 Nov 2024
Resources:
- Travel + Leisure Co. (TNL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Travel + Leisure Co. (TNL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Travel + Leisure Co. (TNL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.