Travel + Leisure Co. (NYSE:TNL) Q4 2022 Earnings Conference Call February 22, 2023 8:30 AM ET

Company Participants

Christopher Agnew - Senior Vice President, Financial Planning and Analysis and Investor Relations

Michael Brown - President and Chief Executive Officer

Mike Hug - Chief Financial Officer

Conference Call Participants

Joe Greff - JPMorgan

Patrick Scholes - Truist

Chris Woronka - Deutsche Bank

Brandt Montour - Barclays

Isaac Sellhausen - Oppenheimer

Ben Chaiken - Credit Suisse

David Katz - Jefferies

Operator

Greetings, and welcome to the Travel and Leisure Fourth Quarter 2022 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Christopher Agnew, Senior Vice President, FP&A and Investor Relations for Travel and Leisure. Thank you. You may begin.

Christopher Agnew

Thank you, Melissa, 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 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 earnings call. You can find a reconciliation of the 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 fourth quarter and full year results and outlook. And Mike Hug, our Chief Financial Officer, will then provide greater detail on the quarter, our balance sheet and liquidity position. Following these remarks, we look forward to responding to your questions.

With that, I'm 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 fourth quarter results that demonstrate continued robust leisure travel demand, allowing us to generate strong free cash flow, drive meaningful adjusted EBITDA growth and return a significant level of capital to shareholders.

In the fourth quarter, we reported adjusted EBITDA of $225 million and adjusted earnings per share of $1.30. Adjusted free cash flow was $245 million. Leisure travel demand remained robust in the quarter and that demand has continued into Q1 of 2023. Our overarching strategic goal, which we are achieving, is to increase our historical growth rate, while continuing to generate meaningful and substantial cash flow.