Exhibit 99.1
Interval Leisure Group Reports Second Quarter 2011 Results and authorized share repurchase program
MIAMI, August 04, 2011 (BUSINESS WIRE) —Interval Leisure Group (Nasdaq: IILG) (“ILG”) today announced results for the three months ended June 30, 2011.
SECOND QUARTER 2011 HIGHLIGHTS
· ILG Board of Directors authorized a $25 million share repurchase program
· ILG consolidated revenue increased by 3.9% year over year, driven by a 26.2% increase in Management and Rental segment revenue
· Interval Network new member volume grew by 13.4% year-to-date compared to 2010
· Interval International added 11 new resort affiliations
· Free cash flow of $50.7 million year to date
“Throughout the second quarter, we maintained our commitment to investing in ILG for future success. As such, we have determined that a stock repurchase program is an effective way to utilize our strong balance sheet and demonstrate our confidence in the long-term value of Interval Leisure Group.” said Craig M. Nash, Chairman, President and Chief Executive Officer of Interval Leisure Group.
“During the second quarter, ILG’s total consolidated revenue increased by nearly 4%. The Membership and Exchange segment results reflect continued pressure from increased expenses and inventory mix. However, our new offerings, Platinum membership and Club Interval Gold, gained traction with our members and developer clients. At the same time, the Management and Rental segment reported another quarter of substantial year over year growth,” Nash added. “We are confident that Interval Leisure Group is
positioned to strengthen its role as an industry leader and we will continue to strategically deploy capital to invest in the growth of our business.”
Financial Summary & Operating Metrics (in millions, except per share amounts and percentages)
|
|
|
Three Months Ended |
|
Quarter |
| |||||
|
Metrics |
|
2011 |
|
2010 |
|
Change |
| |||
|
Revenue |
|
$ |
105.6 |
|
$ |
101.6 |
|
3.9 |
% | |
|
Membership and Exchange revenue |
|
$ |
87.4 |
|
$ |
87.2 |
|
0.2 |
% | |
|
Management and Rental revenue |
|
$ |
18.2 |
|
$ |
14.4 |
|
26.2 |
% | |
|
Gross profit |
|
$ |
70.2 |
|
$ |
70.1 |
|
0.2 |
% | |
|
Net income attributable to common stockholders |
|
$ |
7.5 |
|
$ |
11.3 |
|
(33.7 |
)% | |
|
Diluted EPS |
|
$ |
0.13 |
|
$ |
0.20 |
|
(35.0 |
)% | |
|
EBITDA* |
|
$ |
34.9 |
|
$ |
38.6 |
|
(9.6 |
)% | |
|
|
|
|
|
|
|
|
| |||
|
Balance sheet data |
|
June 30, 2011 |
|
December 31, 2010 |
|
|
| |||
|
Cash and cash equivalents |
|
$ |
210.1 |
|
$ |
180.5 |
|
|
|
|
|
Debt |
|
$ |
348.8 |
|
$ |
357.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
Six Months Ended |
|
|
|
| ||||
|
Cash flow data |
|
2011 |
|
2010 |
|
|
|
| ||
|
Net cash provided by operating activities |
|
$ |
56.8 |
|
$ |
59.3 |
|
|
|
|
|
Free cash flow* |
|
$ |
50.7 |
|
$ |
51.1 |
|
|
|
|
* “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 2011 Consolidated Operating Results
Consolidated revenue for the second quarter ended June 30, 2011 was $105.6 million, an increase of 3.9% from $101.6 million for the second quarter of 2010. The increase was driven primarily by the incremental revenue contribution from the acquisition of Trading Places International (TPI).
Net income for the three months ended June 30, 2011 was $7.5 million, a decrease of 33.7% from net income of $11.3 million for the same period of 2010. The year over year decline reflects a $6.1 million decrease in Membership and Exchange segment pre-tax income which includes a $2.1 million unfavorable foreign currency exchange related impact. The remaining decrease primarily relates to an increase of $1.0 million in compensation and other employee related costs mostly due to the acquisition of TPI, $0.8 million increase in the cost of Getaway sales due to inventory mix changes, and increases of $0.8 million in depreciation and $0.6 million in IT costs (including non-capitalized IT expenses) predominantly related to the fourth quarter 2010 iServices deployment. These items were partly offset by a reduction in consolidated income tax expense. Diluted earnings per share were $0.13 compared to diluted earnings per share of $0.20 for the same period of 2010.
EBITDA was $34.9 million for the quarter ended June 30, 2011, compared to EBITDA of $38.6 million for the same period of 2010.
Business Segment Results
Membership and Exchange
Membership and Exchange segment revenue for the three months ended June 30, 2011 was $87.4 million, relatively flat with the comparable period in 2010.
For the second quarter of 2011, transaction and membership fee revenue were $47.7 million and $32.5 million, respectively, a decrease of 1.3% and an increase of 0.3% over the same period in 2010.
Total active members at June 30, 2011 of 1.81 million were relatively flat compared to total active members at June 30, 2010. New member enrollments for the first half of 2011 increased by 13.4% compared to the same period last year.
Average revenue per member for the second quarter of 2011 was $45.24, comparable to the second quarter of 2010. During the second quarter of 2011, Interval International affiliated 11 new vacation ownership resorts in 10 international markets.
Membership and Exchange segment EBITDA was $34.3 million in the second quarter, a decline of 10.6% from the segment’s EBITDA of $38.3 million in 2010. Membership and Exchange segment EBITDA reflects a $0.8 million increase in the cost of Getaway sales due to inventory mix changes, lower operating foreign currency net gains of $1.0 million and approximately $0.4 million of higher non-capitalized expenses related to iServices following its implementation in the fourth quarter of 2010.
Management and Rental
Management and Rental segment revenue for the three months ended June 30, 2011, was $18.2 million, including $6.8 million of management fee and rental revenue (defined below). Year-over-year, management fee and rental revenue grew by 57.3%. The improvement was primarily driven by an increase in revenue per available room (“RevPAR”) at Aston and the acquisition of TPI. Aston RevPAR for the quarter ended June 30, 2011 was $95.12 compared to $81.24 for the same period in 2010, resulting from both an 11.6% higher average daily rate (ADR) and a 4.9% improvement in occupancy rates in the second quarter.
In the second quarter of 2011, Management and Rental segment EBITDA was $0.6 million, compared to $0.2 million in the prior year period. Segment EBITDA benefitted from an 11.7% increase in room revenue and the inclusion of TPI, which more than offset an increase of $0.4 million in fees associated with an Aston legal proceeding that settled in July 2011.
Capital Resources and Liquidity
As of June 30, 2011, ILG’s cash and cash equivalents totaled $210.1 million, compared to $180.5 million as of December 31, 2010. The Company’s total debt outstanding was $348.8 million, net of unamortized bond discount, as of June 30, 2011. During the current quarter, the Company made a $5 million voluntary prepayment of principal on its term loan, for a total of $10 million in 2011.
For the six months ended June 30, 2011, ILG’s capital expenditures totaled $6.0 million, or 2.7% of revenue, net cash provided by operating activities was $56.8 million and free cash flow (defined below) was $50.7 million. Total interest paid, net of amounts capitalized, during the six month period was $15.4 million.
Share Repurchase Program
Effective August 3, 2011, the Board of Directors of Interval Leisure Group has authorized a stock repurchase program that enables the Company to purchase up to $25 million of its common stock. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors. Repurchases may be conducted in the open market or through privately negotiated transactions. This program may be modified, suspended or terminated by Interval Leisure Group at any time without notice.
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
adjustments) 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 presentations 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 2011, with access via the Internet and telephone. Investors and analysts may participate in the live conference call by dialing (800) 599-9816 (toll-free domestic) or (617) 847-8705 (international); participant passcode: 66443827. 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. A replay of the call will be available for 10 days via telephone starting approximately two hours after the call ends. The replay can be accessed at (888) 286-8010 (toll-free domestic) or (617) 801-6888 (international); passcode: 62407748. 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. ILG is headquartered in Miami, Florida, and has more than 2,800 employees worldwide.
The company’s primary business segment is Membership and Exchange, which offers travel and leisure-related products and services to approximately 2 million member families who are enrolled in various programs. Interval International, the segment’s principal business, is celebrating 35 years as a leader in vacation ownership exchange. With offices in 15 countries, it operates the Interval Network of about 2,600 resorts in more than 75 nations. ILG delivers additional opportunities for vacation ownership exchange through its Trading Places International (TPI) and Preferred Residences networks.
ILG also has a Management and Rental business segment that includes Aston Hotels & Resorts and TPI. These businesses provide hotel, condominium resort, timeshare resort, and homeowners’ association management, as well as vacation rental services, to travelers and property owners at over 45 locations in North America.
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 or consolidation 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 and successfully introduce new products and services; 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)
|
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
|
June 30, |
|
June 30, |
| ||||||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Revenue |
|
$ |
105,554 |
|
$ |
101,602 |
|
$ |
222,537 |
|
$ |
215,440 |
|
|
Cost of sales |
|
35,333 |
|
31,522 |
|
72,856 |
|
65,703 |
| ||||
|
Gross profit |
|
70,221 |
|
70,080 |
|
149,681 |
|
149,737 |
| ||||
|
Selling and marketing expense |
|
14,042 |
|
13,125 |
|
27,874 |
|
26,656 |
| ||||
|
General and administrative expense |
|
24,160 |
|
20,931 |
|
48,475 |
|
43,221 |
| ||||
|
Amortization expense of intangibles |
|
6,805 |
|
6,575 |
|
13,618 |
|
13,150 |
| ||||
|
Depreciation expense |
|
3,397 |
|
2,601 |
|
6,687 |
|
5,049 |
| ||||
|
Operating income |
|
21,817 |
|
26,848 |
|
53,027 |
|
61,661 |
| ||||
|
Other income (expense): |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
266 |
|
125 |
|
387 |
|
203 |
| ||||
|
Interest expense |
|
(9,140 |
) |
(9,170 |
) |
(18,106 |
) |
(18,184 |
) | ||||
|
Other income (expense), net |
|
(570 |
) |
441 |
|
(1,730 |
) |
(293 |
) | ||||
|
Total other expense, net |
|
(9,444 |
) |
(8,604 |
) |
(19,449 |
) |
(18,274 |
) | ||||
|
Earnings before income taxes and noncontrolling interest |
|
12,373 |
|
18,244 |
|
33,578 |
|
43,387 |
| ||||
|
Income tax provision |
|
(4,875 |
) |
(6,927 |
) |
(12,882 |
) |
(16,657 |
) | ||||
|
Net income |
|
7,498 |
|
11,317 |
|
20,696 |
|
26,730 |
| ||||
|
Net loss attributable to noncontrolling interest |
|
4 |
|
3 |
|
1 |
|
3 |
| ||||
|
Net income attributable to common stockholders |
|
$ |
7,502 |
|
$ |
11,320 |
|
$ |
20,697 |
|
$ |
26,733 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
$ |
0.13 |
|
$ |
0.20 |
|
$ |
0.36 |
|
$ |
0.47 |
|
|
Diluted |
|
$ |
0.13 |
|
$ |
0.20 |
|
$ |
0.36 |
|
$ |
0.46 |
|
|
Weighted average number of common stock outstanding: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
57,472 |
|
56,886 |
|
57,330 |
|
56,756 |
| ||||
|
Diluted |
|
58,311 |
|
57,735 |
|
58,198 |
|
57,585 |
| ||||
INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
|
June 30, 2011 |
|
December 31, 2010 |
| ||
|
|
|
|
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
210,139 |
|
$ |
180,502 |
|
|
Deferred membership costs |
|
12,672 |
|
11,775 |
| ||
|
Prepaid income taxes |
|
7,381 |
|
8,539 |
| ||
|
Other current assets |
|
77,706 |
|
71,930 |
| ||
|
Total current assets |
|
307,898 |
|
272,746 |
| ||
|
Goodwill and intangible assets, net |
|
594,879 |
|
608,497 |
| ||
|
Deferred membership costs |
|
14,777 |
|
16,108 |
| ||
|
Other non-current assets |
|
91,442 |
|
81,033 |
| ||
|
TOTAL ASSETS |
|
$ |
1,008,996 |
|
$ |
978,384 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND EQUITY |
|
|
|
|
| ||
|
LIABILITIES: |
|
|
|
|
| ||
|
Accounts payable, trade |
|
$ |
11,543 |
|
$ |
11,302 |
|
|
Deferred revenue |
|
102,101 |
|
94,651 |
| ||
|
Other current liabilities |
|
76,379 |
|
73,165 |
| ||
|
Total current liabilities |
|
190,023 |
|
179,118 |
| ||
|
Long-term debt, net of current portion |
|
348,796 |
|
357,576 |
| ||
|
Deferred revenue |
|
126,165 |
|
124,928 |
| ||
|
Other long-term liabilities |
|
94,147 |
|
95,131 |
| ||
|
Redeemable noncontrolling interest |
|
418 |
|
419 |
| ||
|
TOTAL STOCKHOLDERS’ EQUITY |
|
249,447 |
|
221,212 |
| ||
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
1,008,996 |
|
$ |
978,384 |
|
INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
Six Months Ended June 30, |
| ||||
|
|
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from operating activities: |
|
|
|
|
| ||
|
Net income |
|
$ |
20,696 |
|
$ |
26,730 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
|
Amortization expense of intangibles |
|
13,618 |
|
13,150 |
| ||
|
Amortization of debt issuance costs |
|
925 |
|
1,332 |
| ||
|
Depreciation expense |
|
6,687 |
|
5,049 |
| ||
|
Accretion of original issue discount |
|
1,220 |
|
1,099 |
| ||
|
Non-cash compensation expense |
|
5,906 |
|
5,045 |
| ||
|
Deferred income taxes |
|
504 |
|
796 |
| ||
|
Excess tax benefits from stock-based awards |
|
(1,272 |
) |
(965 |
) | ||
|
Changes in assets and liabilities |
|
8,482 |
|
7,048 |
| ||
|
Net cash provided by operating activities |
|
56,766 |
|
59,284 |
| ||
|
Cash flows from investing activities: |
|
|
|
|
| ||
|
Changes in restricted cash |
|
— |
|
372 |
| ||
|
Capital expenditures |
|
(6,040 |
) |
(8,231 |
) | ||
|
Investment in loans receivable |
|
(14,500 |
) |
— |
| ||
|
Net cash used in investing activities |
|
(20,540 |
) |
(7,859 |
) | ||
|
Cash flows from financing activities: |
|
|
|
|
| ||
|
Principal payments on term loan |
|
(10,000 |
) |
(20,000 |
) | ||
|
Other, net |
|
(653 |
) |
(340 |
) | ||
|
Net cash used in financing activities |
|
(10,653 |
) |
(20,340 |
) | ||
|
Effect of exchange rate changes on cash and cash equivalents |
|
4,064 |
|
(2,994 |
) | ||
|
Net increase in cash and cash equivalents |
|
29,637 |
|
28,091 |
| ||
|
Cash and cash equivalents at beginning of period |
|
180,502 |
|
160,014 |
| ||
|
Cash and cash equivalents at end of period |
|
$ |
210,139 |
|
$ |
188,105 |
|
|
|
|
|
|
|
| ||
|
Supplemental disclosures of cash flow information: |
|
|
|
|
| ||
|
Cash paid during the period for: |
|
|
|
|
| ||
|
Interest, net of amounts capitalized |
|
$ |
15,388 |
|
$ |
15,475 |
|
|
Income taxes, net of refunds |
|
$ |
10,430 |
|
$ |
15,975 |
|
OPERATING STATISTICS
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| ||||||||||||
|
|
|
2011 |
|
% Change |
|
2010 |
|
2011 |
|
% Change |
|
2010 |
| ||||
|
Membership and Exchange |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total active members at end of period (000’s) |
|
1,806 |
|
(0.4 |
)% |
1,814 |
|
1,806 |
|
(0.4 |
)% |
1,814 |
| ||||
|
Average revenue per member |
|
$ |
45.24 |
|
(0.6 |
)% |
$ |
45.51 |
|
$ |
95.42 |
|
(1.5 |
)% |
$ |
96.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Management and Rental |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Available room nights (000’s) |
|
391 |
|
(4.6 |
)% |
410 |
|
766 |
|
(4.2 |
)% |
800 |
| ||||
|
RevPAR |
|
$ |
95.12 |
|
17.1 |
% |
$ |
81.24 |
|
$ |
110.37 |
|
20.3 |
% |
$ |
91.75 |
|
ADDITIONAL DATA
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| ||||||||||||
|
|
|
2011 |
|
% Change |
|
2010 |
|
2011 |
|
% Change |
|
2010 |
| ||||
|
|
|
(Dollars in thousands) |
|
(Dollars in thousands) |
| ||||||||||||
|
Membership and Exchange |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Transaction revenue |
|
$ |
47,652 |
|
(1.3 |
)% |
$ |
48,271 |
|
$ |
104,029 |
|
(3.0 |
)% |
$ |
107,279 |
|
|
Membership fee revenue |
|
32,521 |
|
0.3 |
% |
32,434 |
|
65,111 |
|
0.3 |
% |
64,909 |
| ||||
|
Ancillary member revenue |
|
1,803 |
|
(15.9 |
)% |
2,145 |
|
3,781 |
|
(13.6 |
)% |
4,377 |
| ||||
|
Total member revenue |
|
81,976 |
|
(1.1 |
)% |
82,850 |
|
172,921 |
|
(2.1 |
)% |
176,565 |
| ||||
|
Other revenue |
|
5,375 |
|
24.1 |
% |
4,332 |
|
10,858 |
|
33.1 |
% |
8,158 |
| ||||
|
Total revenue |
|
$ |
87,351 |
|
0.2 |
% |
$ |
87,182 |
|
$ |
183,779 |
|
(0.5 |
)% |
$ |
184,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Management and Rental |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Management fee and rental revenue |
|
$ |
6,818 |
|
57.3 |
% |
$ |
4,334 |
|
$ |
15,746 |
|
52.6 |
% |
$ |
10,318 |
|
|
Pass-through revenue |
|
11,385 |
|
12.9 |
% |
10,086 |
|
23,012 |
|
12.8 |
% |
20,399 |
| ||||
|
Total revenue |
|
$ |
18,203 |
|
26.2 |
% |
$ |
14,420 |
|
$ |
38,758 |
|
26.2 |
% |
$ |
30,717 |
|
|
Management and Rental gross margin |
|
20.2 |
% |
25.4 |
% |
16.1 |
% |
24.2 |
% |
24.8 |
% |
19.4 |
% | ||||
|
Management and Rental gross margin without pass-through revenue |
|
54.1 |
% |
0.6 |
% |
53.7 |
% |
59.5 |
% |
3.2 |
% |
57.6 |
% | ||||
RECONCILIATIONS OF NON-GAAP MEASURES
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
| |||||||
|
|
|
2011 |
|
% Change |
|
2010 |
|
|
|
|
|
|
| |||
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net cash provided by operating activities |
|
$ |
56,766 |
|
(4.2 |
)% |
$ |
59,284 |
|
|
|
|
|
|
|
|
|
Less: Capital expenditures |
|
(6,040 |
) |
(26.6 |
)% |
(8,231 |
) |
|
|
|
|
|
|
| ||
|
Free cash flow |
|
$ |
50,726 |
|
(0.6 |
)% |
$ |
51,053 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
| ||||||||||||||||
|
|
|
2011 |
|
2010 |
| ||||||||||||||
|
|
|
Membership |
|
Management |
|
Consolidated |
|
Membership |
|
Management |
|
Consolidated |
| ||||||
|
|
|
(Dollars in thousands) |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
EBITDA |
|
$ |
34,267 |
|
$ |
612 |
|
$ |
34,879 |
|
$ |
38,327 |
|
$ |
248 |
|
$ |
38,575 |
|
|
Amortization expense of intangibles |
|
5,425 |
|
1,380 |
|
6,805 |
|
5,257 |
|
1,318 |
|
6,575 |
| ||||||
|
Depreciation expense |
|
3,162 |
|
235 |
|
3,397 |
|
2,383 |
|
218 |
|
2,601 |
| ||||||
|
Non-cash compensation expense |
|
2,622 |
|
238 |
|
2,860 |
|
2,365 |
|
186 |
|
2,551 |
| ||||||
|
Operating income (loss) |
|
$ |
23,058 |
|
$ |
(1,241 |
) |
21,817 |
|
$ |
28,322 |
|
$ |
(1,474 |
) |
26,848 |
| ||
|
Interest income |
|
|
|
|
|
266 |
|
|
|
|
|
125 |
| ||||||
|
Interest expense |
|
|
|
|
|
(9,140 |
) |
|
|
|
|
(9,170 |
) | ||||||
|
Other non-operating income (expense), net |
|
|
|
|
|
(570 |
) |
|
|
|
|
441 |
| ||||||
|
Income tax provision |
|
|
|
|
|
(4,875 |
) |
|
|
|
|
(6,927 |
) | ||||||
|
Net income |
|
|
|
|
|
7,498 |
|
|
|
|
|
11,317 |
| ||||||
|
Net loss attributable to noncontrolling interest |
|
|
|
|
|
4 |
|
|
|
|
|
3 |
| ||||||
|
Net income attributable to common stockholders |
|
|
|
|
|
$ |
7,502 |
|
|
|
|
|
$ |
11,320 |
| ||||
|
|
|
Six Months Ended June 30, |
| ||||||||||||||||
|
|
|
2011 |
|
2010 |
| ||||||||||||||
|
|
|
Membership |
|
Management |
|
Consolidated |
|
Membership |
|
Management |
|
Consolidated |
| ||||||
|
|
|
(Dollars in thousands) |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
EBITDA |
|
$ |
75,673 |
|
$ |
3,565 |
|
$ |
79,238 |
|
$ |
82,841 |
|
$ |
2,064 |
|
$ |
84,905 |
|
|
Amortization expense of intangibles |
|
10,849 |
|
2,769 |
|
13,618 |
|
10,514 |
|
2,636 |
|
13,150 |
| ||||||
|
Depreciation expense |
|
6,189 |
|
498 |
|
6,687 |
|
4,643 |
|
406 |
|
5,049 |
| ||||||
|
Non-cash compensation expense |
|
5,383 |
|
523 |
|
5,906 |
|
4,666 |
|
379 |
|
5,045 |
| ||||||
|
Operating income (loss) |
|
$ |
53,252 |
|
$ |
(225 |
) |
53,027 |
|
$ |
63,018 |
|
$ |
(1,357 |
) |
61,661 |
| ||
|
Interest income |
|
|
|
|
|
387 |
|
|
|
|
|
203 |
| ||||||
|
Interest expense |
|
|
|
|
|
(18,106 |
) |
|
|
|
|
(18,184 |
) | ||||||
|
Other non-operating expense, net |
|
|
|
|
|
(1,730 |
) |
|
|
|
|
(293 |
) | ||||||
|
Income tax provision |
|
|
|
|
|
(12,882 |
) |
|
|
|
|
(16,657 |
) | ||||||
|
Net income |
|
|
|
|
|
20,696 |
|
|
|
|
|
26,730 |
| ||||||
|
Net loss attributable to noncontrolling interest |
|
|
|
|
|
1 |
|
|
|
|
|
3 |
| ||||||
|
Net income attributable to common stockholders |
|
|
|
|
|
$ |
20,697 |
|
|
|
|
|
$ |
26,733 |
| ||||
Glossary of Terms
Ancillary Member Revenue - Other Interval Network 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 which excludes all rooms under renovation.
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 Interval Network active members during the applicable 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.
Management Fee and Rental Revenue — Represents revenue earned by our Management and Rental segment exclusive of pass-through revenue.
Pass-through Revenue - Represents the compensation and other employee-related costs directly associated with management of the properties and homeowner associations that are included in both revenue and cost of sales and that are passed on to the property owners and homeowner associations 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 for Aston.
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.
SOURCE: Interval Leisure Group
Interval Leisure Group
Investor Contact:
Jennifer Klein, Investor Relations,
305-925-7302
Jennifer.Klein@iilg.com
Or
Media Contact:
Christine Boesch, Corporate Communications,
305-925-7267
Chris.Boesch@intervalintl.com