Travel + Leisure Co. (NYSE:TNL) Q1 2023 Earnings Conference Call April 26, 2023 8:30 AM ET

Company Participants

Chris Agnew - Head, Investor Relations

Michael Brown - President and CEO

Mike Hug - Chief Financial Officer

Conference Call Participants

Joe Greff - JPMorgan

Chris Woronka - Deutsche Bank

Patrick Scholes - Truist Securities

Ian Zaffino - Oppenheimer

David Katz - Jefferies

Dany Asad - Bank of America

Ricardo Chinchilla - Deutsche Bank

Brandt Montour - Barclays

Operator

Hello. And welcome to the Travel + Leisure First Quarter 2023 Earnings Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation. 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. Please go ahead, Chris.

Chris Agnew

Thank you, Kevin, and good morning. Before we begin, we would like to remind you that our discussions today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements and the forward-looking statements made today are effect of -- effective only as of today.

We undertake no obligation to publicly update or revise these statements. The factors that could cause actual results to differ are discussed in our SEC filings and in our earnings press release accompanying this call.

And you can find a reconciliation of non-GAAP financial measures discussed in today’s call in the earnings press release available on our website at travelandleisureco.com/investors.

This morning, Michael Brown, our President and Chief Executive Officer will provide an overview of our first quarter results and full year outlook; and Mike Hug, our Chief Financial Officer, will then provide greater detail on the quarter, our balance sheet and liquidity position. Following our prepared remarks, we look forward to responding to your questions.

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

Michael Brown

Thank you, Chris. Good morning and thank you for joining us today. This morning we reported strong first quarter results, exceeding the expectations we laid out at the end of February. With Leisure travel showing continued strength, our teams were able to translate that demand into significant adjusted EBITDA and EPS growth.

We reported adjusted EBITDA of $184 million, an 8% increase over the prior year and adjusted earnings per share of $0.89, a 29% improvement over Q1 2022. EPS growth is reflective of continued EBITDA growth and the impact of share repurchases over the last 12 months. Our confidence in 2023 free cash flow allowed us to repurchase 3% of our shares outstanding in the first quarter alone.