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Sep 30, 2021

Travel + Leisure Q3 2021 Earnings Report

Travel + Leisure Co. demonstrated strength in Q3 2021, delivering adjusted EBITDA at or above expectations, driven by robust sales volume per guest and cost control.

Key Takeaways

Travel + Leisure Co. reported a strong third quarter in 2021, with net income of $101 million on net revenue of $839 million. The company's cornerstone brands showed resilience, leading to adjusted EBITDA of $228 million and adjusted diluted earnings per share of $1.19. The company increased its full year adjusted EBITDA and adjusted diluted EPS guidance.

Net income from continuing operations was $101 million, resulting in $1.15 diluted earnings per share, on net revenue of $839 million.

Adjusted EBITDA reached $228 million, and adjusted diluted earnings per share was $1.19.

Net cash provided by operating activities amounted to $435 million, with adjusted free cash flow of $128 million for the first nine months of 2021.

Full year adjusted EBITDA guidance was increased to a range of $740 million to $750 million, and adjusted diluted EPS guidance was raised to a range of $3.35 to $3.43.

Total Revenue
$839M
Previous year: $614M
+36.6%
EPS
$1.19
Previous year: $0.83
+43.4%
Gross VOI sales
$440M
Previous year: $256M
+71.9%
Tours
129K
Previous year: 80K
+61.3%
Gross Profit
$425M
Previous year: $303M
+40.3%
Cash and Equivalents
$346M
Previous year: $1.3B
-73.4%
Free Cash Flow
$130M
Previous year: $77M
+68.8%
Total Assets
$6.6B
Previous year: $7.82B
-15.6%

Travel + Leisure

Travel + Leisure

Travel + Leisure Revenue by Segment

Forward Guidance

The Company is updating its guidance regarding expectations for the 2021 full year:

Positive Outlook

  • Adjusted EBITDA of $740 million to $750 million from $725 million to $735 million
  • Adjusted diluted EPS of $3.35 to $3.43 from $3.24 to $3.30
  • Gross VOI sales of $1.45 billion to $1.5 billion from $1.4 billion to $1.5 billion
  • Tours of 440,000 to 450,000
  • VPG of approximately $3,000

Revenue & Expenses

Visualization of income flow from segment revenue to net income