EX-99.1 2 a10-15305_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Interval Leisure Group Reports Second Quarter 2010 Results

 

MIAMI, August 5, 2010 (Businesswire) — Interval Leisure Group (Nasdaq:IILG) (“ILG”) today announced results for the three months ended June 30, 2010.

 

SECOND QUARTER 2010 HIGHLIGHTS

 

·                                          ILG generated diluted earnings per share of $0.20.

 

·                                         Consolidated EBITDA increased 5.2% and Interval segment EBITDA increased by 7.6%, compared to 2009.

 

·                                          The Interval segment delivered revenue of $87.2 million; average revenue per member increased 3.5% over 2009.

 

·                                          Free cash flow was $51.1 million for the first six months of 2010.

 

“With earnings per share over 30% higher than 2009, ILG reported a strong quarter that reflects our team’s focus on execution and cost containment.  Enhanced member engagement drove an increase in average revenue per member for the Interval segment while Aston showed positive signs of recovery with improved occupancy and RevPAR in Hawaii during the second quarter,” said Craig M. Nash, Chairman, President and Chief Executive Officer of Interval Leisure Group. “Overall, we are pleased with the second quarter 2010 results and our 24% year-over-year increase in free cash flow for the first six months of the year.”

 

Financial Summary & Operating Metrics (in millions, except per share amounts and percentages)

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

Three
Months
Ended
6/30/10

 

Three
Months
Ended
6/30/09

 

Quarter
Over
Quarter
Change

 

Revenue

 

$

101.6

 

$

100.6

 

1.0

%

Interval revenue

 

$

87.2

 

$

86.9

 

0.3

%

Aston revenue

 

$

14.4

 

$

13.7

 

5.5

%

Gross profit

 

$

70.1

 

$

68.3

 

2.6

%

Net income attributable to common stockholders

 

$

11.3

 

$

8.6

 

31.6

%

Diluted EPS

 

$

0.20

 

$

0.15

 

33.3

%

EBITDA*

 

$

38.6

 

$

36.7

 

5.2

%

 


 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet data

 

As of
6/30/10

 

As of
12/31/09

 

 

 

 

Cash and cash equivalents

 

$

188.1

 

$

160.0

 

 

 

 

Debt

 

$

376.4

 

$

395.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow data

 

Six
Months
Ended
6/30/10

 

Six
Months
Ended
6/30/09

 

 

 

 

Net cash provided by operating activities

 

$

59.3

 

$

48.4

 

 

 

 

Free cash flow*

 

$

51.1

 

$

41.1

 

 

 

 

 

* “EBITDA” and “Free cash flow” are non-GAAP measures as defined by the Securities and Exchange Commission (the “SEC”). Please see “Presentation of Financial Information,” “Glossary of Terms” and “Reconciliations of Non-GAAP Measures” below for an explanation of non-GAAP measures used throughout this release.

 

Discussion of Results

 

Second Quarter 2010 Consolidated Operating Results

 

Consolidated revenue for the second quarter ended June 30, 2010 was $101.6 million, comparable to $100.6 million for the second quarter of 2009. Consolidated revenue was comprised of 86% and 14% from Interval and Aston, respectively.

 

Net income attributable to common stockholders for the three months ended June 30, 2010 was $11.3 million, an increase of 31.6% from net income attributable to common stockholders of $8.6 million for the same period of 2009.  Diluted earnings per share were $0.20 compared to diluted earnings per share of $0.15 for the same period of 2009.

 

EBITDA was $38.6 million for the quarter ended June 30, 2010, compared to EBITDA of $36.7 million for the same period of 2009, representing an increase of 5.2%.

 

Business Segment Results

 

Interval

 

Interval’s revenue for the three months ended June 30, 2010, was $87.2 million, increasing 0.3% over the comparable period in 2009.  Membership fee revenue was

 


 

$32.4 million, a decrease of 2.0% from the same period of 2009.  Transaction revenue for the second quarter of 2010 was $48.3 million, an increase of 1.3% when compared to the same period of 2009. Total active members at June 30, 2010 were approximately 1.8 million, a decrease of 3.6% over total active members of approximately 1.9 million at June 30, 2009.  The year-over-year decrease was primarily due to fewer new members entering the Interval Network at the developer point of sale.

 

Average revenue per member for the second quarter of 2010 increased 3.5% to $45.51 from the second quarter of 2009. The increase in average revenue per member was largely attributable to an increase in transaction revenue per member due to increases in Getaway related revenue.

 

Interval’s EBITDA was $38.3 million in the second quarter representing an increase of 7.6% over the segment’s EBITDA of $35.6 million in the second quarter of 2009. This increase was due primarily to a $2.2 million increase in gross profit and, excluding non-cash compensation expense, decreases of $0.3 million in selling and marketing expenses and $0.2 million in general and administrative expenses. The decrease in general and administrative expenses was favorably impacted by operating net gains of $0.9 million in foreign currency remeasurements primarily related to our Euro-denominated Value Added Tax liabilities.

 

Interval segment revenue and EBITDA in constant currency for the second quarter of 2010 was up insignificantly from actual results.

 

Aston

 

Aston’s revenue for the three months ended June 30, 2010 was $14.4 million, an increase of 5.5% from the comparable period of 2009 primarily due to an increase of $1.3 million, or 14.2%, in pass-through revenue (defined below).  Aston revenue for the second quarter included $10.1 million of pass-through revenue.  Management fee revenue for the second quarter of 2010 was $4.3 million, a decline of 10.4% from the second quarter of 2009.

 

The decrease in Aston management fee revenue was primarily driven by a reduction in revenue per available room (“RevPAR”). RevPAR for the quarter ended June 30, 2010 was $81.24 compared to $83.85 for the same period in 2009, a decline of 3.1%.  Lower average daily rate and a slight decrease in occupancy, led to the reduction in RevPAR.

 


 

For Aston’s managed properties in Hawaii, RevPAR for the second quarter of 2010 increased 2.6% from the comparable period of 2009 to $86.03, primarily due to an increase in occupancy partly related to a decrease in available room nights, partially offset by lower average daily rate.

 

Aston reported EBITDA of $0.2 million in the second quarter of 2010, a decrease of 76.1% from EBITDA of $1.0 million in the prior year period.  The Aston segment was adversely impacted by reduced management fee revenue attributable to lower RevPAR and ramp-up and seasonality related to mainland properties that Aston began adding to the business in the fourth quarter of 2009.

 

Capital Resources and Liquidity

 

As of June 30, 2010, ILG’s cash and cash equivalents totaled $188.1 million, compared to $160.0 million as of December 31, 2009.  The Company’s total debt outstanding, which was incurred in connection with the spin-off from IAC, was $376.4 million, net of unamortized bond discount, as of June 30, 2010.  During the second quarter, the Company made a $10.0 million voluntary prepayment of principal on its term loan.

 

For the first six months of 2010, ILG’s capital expenditures totaled $8.2 million, or 3.8% of revenue, net cash provided by operating activities was $59.3 million and free cash flow (defined below) was $51.1 million. Total interest paid, net of amounts capitalized, during the six-month period was $15.5 million.

 

Presentation of Financial Information

 

ILG management believes that the presentation of non-generally accepted accounting principles (non-GAAP) financial measures, including, among others, EBITDA, and free cash flow, serves to enhance the understanding of ILG’s performance. These non-GAAP financial measures should be considered in addition to and not as substitutes for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (GAAP). In addition, EBITDA (with certain additional add-backs) is used to calculate compliance with certain financial covenants in ILG’s credit agreement. Management believes that these non-GAAP measures improve the transparency of our disclosures, provide meaningful presentation of our results from our business operations excluding the impact of certain items not related to our core business operations and improve the period to period comparability of results from business operations. These measures may also be useful in comparing our results to

 


 

those of other companies, however, our calculations may differ from the calculations of these measures used by other companies. More information about the non-GAAP financial measures, including reconciliations of GAAP results to the non-GAAP measures, is available in the financial tables that accompany this press release.

 

Conference Call

 

ILG will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss its results for the second quarter 2010, with access via the Internet and telephone. Investors and analysts may participate in the live conference call by dialing (866) 322-1501 (toll-free domestic) or (706) 679-2585 (international); conference ID: 88787975 or password: Interval.  Please register at least 10 minutes before the conference call begins. A live webcast of the conference call will be available on the Investor Relations section of ILG’s Web site at www.iilg.com. The replay can be accessed at (800) 642-1687 (toll-free domestic) or (706) 645-9291 (international); conference ID: 88787975. The webcast will be archived on ILG’s Web site for 90 days after the call.

 

About Interval Leisure Group

 

Interval Leisure Group (ILG) is a leading global provider of membership and leisure services to the vacation industry.

 

Its principal business segment, Interval, has been serving the vacation ownership market for more than 34 years. Interval operates mainly through Interval International, a membership-based organization that offers a comprehensive array of year-round benefits, including the opportunity to exchange the use of shared ownership vacation time. Today, Interval’s primary vacation network comprises more than 2,500 resorts in over 75 nations. Through offices in 14 countries, Interval offers high-quality products and benefits to resort clients and approximately 2 million families who are enrolled in various membership programs.

 

ILG’s other business segment is Aston which traces its roots in lodging back 60 years. Through a portfolio of approximately 5,000 units, Aston Hotels & Resorts and Maui Condo and Home provide hotel and resort management and vacation rental services to vacationers and property owners primarily in the Hawaiian Islands.

 

ILG is headquartered in Miami, Florida, and has more than 2,500 employees worldwide.

 


 

More information about the Company is available at www.iilg.com.

 

Forward-Looking Statements

 

This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, relating to: our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs and other similar matters. These forward-looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.

 

Actual results could differ materially from those contained in the forward-looking statements included herein for a variety of reasons, including, among others: adverse trends in economic conditions generally or in the vacation ownership, vacation rental and travel industries; adverse changes to, or interruptions in, relationships with third parties; lack of available financing for or insolvency of developers; decreased demand from prospective purchasers of vacation interests; travel related health concerns, such as pandemics; changes in our senior management; regulatory changes; our ability to compete effectively; the effects of our significant indebtedness and our compliance with the terms thereof; adverse events or trends in key vacation destinations; business interruptions in connection with the rearchitecture of our technology systems; and our ability to expand successfully in international markets and manage risks specific to international operations. Certain of these and other risks and uncertainties are discussed in our filings with the SEC. Other unknown or unpredictable factors that could also adversely affect our business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, the forward-looking statements discussed in this release may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of our management as of the date of this press release. Except as required by applicable law, ILG does not undertake to update these forward-looking statements.

 

 


 

INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

101,602

 

$

100,569

 

$

215,440

 

$

213,495

 

Cost of sales

 

31,522

 

32,285

 

65,703

 

66,060

 

Gross profit

 

70,080

 

68,284

 

149,737

 

147,435

 

Selling and marketing expense

 

13,125

 

13,410

 

26,656

 

26,528

 

General and administrative expense

 

20,931

 

20,453

 

43,221

 

41,878

 

Amortization expense of intangibles

 

6,575

 

6,485

 

13,150

 

12,961

 

Depreciation expense

 

2,601

 

2,494

 

5,049

 

4,657

 

Operating income

 

26,848

 

25,442

 

61,661

 

61,411

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income

 

125

 

208

 

203

 

597

 

Interest expense

 

(9,170

)

(9,470

)

(18,184

)

(18,935

)

Other income (expense), net

 

441

 

(2,240

)

(293

)

(830

)

Total other expense, net

 

(8,604

)

(11,502

)

(18,274

)

(19,168

)

Earnings before income taxes and noncontrolling interest

 

18,244

 

13,940

 

43,387

 

42,243

 

Income tax provision

 

(6,927

)

(5,337

)

(16,657

)

(16,804

)

Net income

 

11,317

 

8,603

 

26,730

 

25,439

 

Net loss (income) attributable to noncontrolling interest

 

3

 

1

 

3

 

(1

)

Net income attributable to common stockholders

 

$

11,320

 

$

8,604

 

$

26,733

 

$

25,438

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.20

 

$

0.15

 

$

0.47

 

$

0.45

 

Diluted

 

$

0.20

 

$

0.15

 

$

0.46

 

$

0.45

 

Weighted average number of common stock outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

56,886

 

56,359

 

56,756

 

56,345

 

Diluted

 

57,735

 

56,861

 

57,585

 

56,716

 

 

7


 

INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

June 30, 2010

 

December 31, 2009

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

188,105

 

$

160,014

 

Deferred membership costs

 

14,534

 

14,433

 

Prepaid income taxes

 

5,485

 

5,221

 

Other current assets

 

72,013

 

67,080

 

Total current assets

 

280,137

 

246,748

 

Goodwill and intangible assets, net

 

606,041

 

619,191

 

Deferred membership costs

 

21,040

 

21,411

 

Other non-current assets

 

78,621

 

71,231

 

TOTAL ASSETS

 

$

985,839

 

$

958,581

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

Accounts payable, trade

 

$

9,341

 

$

11,672

 

Deferred revenue

 

104,184

 

96,541

 

Current portion of long-term debt

 

4,721

 

—

 

Other current liabilities

 

67,886

 

66,074

 

Total current liabilities

 

186,132

 

174,287

 

Long-term debt, net of current portion

 

371,668

 

395,290

 

Deferred revenue

 

133,770

 

134,236

 

Other long-term liabilities

 

88,233

 

77,970

 

Redeemable noncontrolling interest

 

419

 

422

 

TOTAL STOCKHOLDERS’ EQUITY

 

205,617

 

176,376

 

TOTAL LIABILITIES AND EQUITY

 

$

985,839

 

$

958,581

 

 

8

 


 

INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2010

 

2009

 

 

 

(In thousands)

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

26,730

 

$

25,439

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Amortization expense of intangibles

 

13,150

 

12,961

 

Amortization of debt issuance costs

 

1,332

 

1,401

 

Depreciation expense

 

5,049

 

4,657

 

Accretion of original issue discount

 

1,099

 

979

 

Non-cash compensation expense

 

5,045

 

4,196

 

Deferred income taxes

 

796

 

13,859

 

Excess tax benefits from stock-based awards

 

(965

)

—

 

Changes in assets and liabilities

 

7,048

 

(15,087

)

Net cash provided by operating activities

 

59,284

 

48,405

 

Cash flows from investing activities:

 

 

 

 

 

Changes in restricted cash

 

372

 

850

 

Capital expenditures

 

(8,231

)

(7,257

)

Net cash used in investing activities

 

(7,859

)

(6,407

)

Cash flows from financing activities:

 

 

 

 

 

Principal payments on term loan

 

(20,000

)

(17,500

)

Other, net

 

(340

)

(508

)

Net cash used in financing activities

 

(20,340

)

(18,008

)

Effect of exchange rate changes on cash and cash equivalents

 

(2,994

)

5,665

 

Net increase in cash and cash equivalents

 

28,091

 

29,655

 

Cash and cash equivalents at beginning of period

 

160,014

 

120,277

 

Cash and cash equivalents at end of period

 

$

188,105

 

$

149,932

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

Interest, net of amounts capitalized

 

$

15,475

 

$

18,068

 

Income taxes, net of refunds

 

$

15,975

 

$

20,026

 

 

9


 

Operating Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2010

 

% Change

 

2009

 

2010

 

% Change

 

2009

 

Interval

 

 

 

 

 

 

 

 

 

 

 

 

 

Total active members (000’s)

 

1,814

 

(3.6

)%

1,881

 

1,814

 

(3.6

)%

1,881

 

Average revenue per member

 

$

45.51

 

3.5

%

$

43.95

 

$

96.85

 

4.0

%

$

93.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aston

 

 

 

 

 

 

 

 

 

 

 

 

 

Available room nights (000’s)

 

410

 

3.9

%

394

 

800

 

4.2

%

767

 

RevPAR

 

$

81.24

 

(3.1

)%

$

83.85

 

$

91.75

 

(5.8

)%

$

97.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2010

 

% Change

 

2009

 

2010

 

% Change

 

2009

 

 

 

(Dollars in thousands)

 

(Dollars in thousands)

 

Interval

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction revenue

 

$

48,271

 

1.3

%

$

47,667

 

$

107,279

 

0.9

%

$

106,312

 

Membership fee revenue

 

32,434

 

(2.0

)%

33,100

 

64,909

 

(1.8

)%

66,121

 

Ancillary member revenue

 

2,145

 

0.5

%

2,134

 

4,377

 

1.3

%

4,320

 

Total member revenue

 

82,850

 

(0.1

)%

82,901

 

176,565

 

(0.1

)%

176,753

 

Other revenue

 

4,332

 

8.4

%

3,996

 

8,158

 

9.3

%

7,466

 

Total revenue

 

$

87,182

 

0.3

%

$

86,897

 

$

184,723

 

0.3

%

$

184,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aston

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fee revenue

 

$

4,334

 

(10.4

)%

$

4,839

 

$

10,318

 

(8.8

)%

$

11,317

 

Pass-through revenue

 

 

10,086

 

14.2

%

 

8,833

 

 

20,399

 

13.6

%

 

17,959

 

Total revenue

 

$

14,420

 

5.5

%

$

13,672

 

$

30,717

 

4.9

%

$

29,276

 

Aston gross margin

 

16.1

%

(20.5

)%

20.3

%

19.4

%

(17.7

)%

23.5

%

Aston gross margin without Pass-through revenue

 

53.7

%

27.8

%

42.0

%

57.6

%

23.6

%

46.6

%

 

10

 


 

Reconciliations of Non-GAAP Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

2010

 

% Change

 

2009

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

59,284

 

22.5

%

$

48,405

 

 

 

 

 

 

 

Less: Capital expenditures

 

(8,231

)

13.4

%

(7,257

)

 

 

 

 

 

 

Free cash flow

 

$

51,053

 

24.1

%

$

41,148

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

2010

 

2009

 

 

 

Interval

 

Aston

 

Consolidated

 

Interval

 

Aston

 

Consolidated

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

38,327

 

$

248

 

$

38,575

 

$

35,636

 

$

1,036

 

$

36,672

 

Amortization expense of intangibles

 

5,257

 

1,318

 

6,575

 

5,249

 

1,236

 

6,485

 

Depreciation expense

 

2,383

 

218

 

2,601

 

2,293

 

201

 

2,494

 

Non-cash compensation expense

 

2,365

 

186

 

2,551

 

2,128

 

123

 

2,251

 

Operating income (loss)

 

$

28,322

 

$

(1,474

)

26,848

 

$

25,966

 

$

(524

)

25,442

 

Interest income

 

 

 

 

 

125

 

 

 

 

 

208

 

Interest expense

 

 

 

 

 

(9,170

)

 

 

 

 

(9,470

)

Other non-operating income (expense)

 

 

 

 

 

441

 

 

 

 

 

(2,240

)

Income tax provision

 

 

 

 

 

(6,927

)

 

 

 

 

(5,337

)

Net income

 

 

 

 

 

11,317

 

 

 

 

 

8,603

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

3

 

 

 

 

 

1

 

Net income attributable to common stockholders

 

 

 

 

 

$

11,320

 

 

 

 

 

$

8,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2010

 

2009

 

 

 

Interval

 

Aston

 

Consolidated

 

Interval

 

Aston

 

Consolidated

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

82,841

 

$

2,064

 

$

84,905

 

$

79,892

 

$

3,333

 

$

83,225

 

Amortization expense of intangibles

 

10,514

 

2,636

 

13,150

 

10,489

 

2,472

 

12,961

 

Depreciation expense

 

4,643

 

406

 

5,049

 

4,251

 

406

 

4,657

 

Non-cash compensation expense

 

4,666

 

379

 

5,045

 

3,955

 

241

 

4,196

 

Operating income (loss)

 

$

63,018

 

$

(1,357

)

61,661

 

$

61,197

 

$

214

 

61,411

 

Interest income

 

 

 

 

 

203

 

 

 

 

 

597

 

Interest expense

 

 

 

 

 

(18,184

)

 

 

 

 

(18,935

)

Other non-operating expense

 

 

 

 

 

(293

)

 

 

 

 

(830

)

Income tax provision

 

 

 

 

 

(16,657

)

 

 

 

 

(16,804

)

Net income

 

 

 

 

 

26,730

 

 

 

 

 

25,439

 

Net loss (income) attributable to noncontrolling interest

 

 

 

 

 

3

 

 

 

 

 

(1

)

Net income attributable to common stockholders

 

 

 

 

 

$

26,733

 

 

 

 

 

$

25,438

 

 

11


 

Glossary of Terms

 

Ancillary Member Revenue - Other member related revenue including insurance and travel related services.

 

Available Room Nights - Number of nights available for rental by Aston at managed vacation properties during the period.

 

Average Revenue per Member - Membership fee revenue, transaction revenue and ancillary member revenue for the Interval Network for the applicable period, divided by the monthly weighted average number of active members during the applicable period.

 

Constant Currency - Represents current period results of operations determined by translating our functional currency results into U.S. dollars (our reporting currency) using the actual blended rate of translation from the comparable prior period.

 

EBITDA - Net income, excluding, if applicable (1) non-cash compensation expense, (2) depreciation expense, (3) amortization expense of intangibles, (4) goodwill and asset impairments, (5) income taxes, (6) interest income and interest expense and (7) other non-operating income and expense. The Company’s presentation of EBITDA may not be comparable to similarly-titled measures used by other companies.

 

Free Cash Flow - Cash provided by operating activities less capital expenditures.

 

Gross Lodging Revenue - Total room revenue collected from all Aston-managed occupied rooms during the period.

 

Pass-through Revenue - Represents the compensation and other employee-related costs directly associated with Aston’s management of the properties that are included in both revenue and cost of sales and that are passed on to the property owners without mark-up. Management believes presenting gross margin without these expenses provides management and investors a relevant period-over-period comparison.

 

RevPAR - Gross Lodging Revenue divided by Available Room Nights during the period.

 

Total Active Members - Active members of the Interval Network as of the end of the period. Active members are members in good standing that have paid membership fees and any other applicable charges in full as of the end of the period or are within the allowed grace period.

 


 

Transaction Revenue - Transactional and service fees paid primarily for Interval Network exchanges, Getaways, and reservation servicing.

 

CONTACT: Interval Leisure Group

 

Investor Contact:

 

Jennifer Klein, Investor Relations

 

305-925-7302

 

Jennifer.Klein@iilg.com

 

Media Contact:

 

Christine Boesch, Corporate Communications

 

305-925-7267

 

Chris.Boesch@intervalintl.com