Travel + Leisure Co. (NYSE:TNL) Q3 2022 Earnings Conference Call October 27, 2022 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

David Katz - Jefferies

Brandt Montour - Barclays

Stephen Grambling - Morgan Stanley

Chris Woronka - Deutsche Bank

Operator

Greetings and welcome to Travel + Leisure Company’s Third Quarter 2022 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Christopher Agnew, Senior Vice President of Financial Planning and Analysis and Investor Relations. Thank you. You may begin.

Christopher Agnew

Thank you, Doug 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 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 third quarter results 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 answering your questions.

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

Michael Brown

Thank you, Chris. Good morning and welcome to our third quarter earnings call. This morning, we reported adjusted EBITDA of $234 million and adjusted earnings per share of $1.28. Strong leisure demand continued throughout the third quarter and our key indicators point to continued strong travel demand heading into next year. In September, we reaffirmed our $230 million to $240 million adjusted EBITDA guidance, with the expectation that we would be at the high end of that range. However, at the conclusion of the quarter, Hurricane Ian and a weakening Australian dollar impacted our Q3 results by an estimated $4 million of EBITDA.

In the quarter, we returned $148 million to shareholders through a quarterly dividend and the repurchase of shares. Of the $148 million, $115 million was dedicated to share repurchases, up from $83 million in Q2. In the third quarter, repurchases accounted for 3.2% of outstanding shares. Full year, through the end of Q3, repurchases have accounted for 6% of outstanding shares. The key metrics in our business performed well during the quarter, with tours increasing 22% year-over-year and VPG maintaining the near record levels from the second quarter, up 5% year-over-year. New owner transaction mix increased to 33%, up nearly 300 basis points year-over-year and 100 basis points sequentially.