Interval Leisure Group (Nasdaq: IILG) ("ILG") today announced it has made changes to its financial reporting segments to align with its reorganized management reporting structure as a result of the acquisition of Hyatt Vacation Ownership (HVO).
The new reporting segments are: Exchange and Rental, and Vacation Ownership.
Exchange and Rental offers access to vacation accommodations and other travel-related transactions and services to leisure travelers, by providing vacation exchange services and vacation rentals, working with resort developers and operating vacation rental properties.
The Exchange and Rental operating segment consists of Interval International (referred to as Interval), the Hyatt Residence Club, and Trading Places International (known as TPI) operated exchange business, as well as Aston Hotels & Resorts, Inc. (referred to as Aston) and Aqua Hospitality, LLC (referred to as Aqua).
Vacation Ownership engages in the management of vacation ownership resorts; sales, marketing, and financing of vacation ownership interests; and related services to owners and associations. The Vacation Ownership operating segment consists of the management related lines of business of Vacation Resorts International (known as VRI), TPI, VRI Europe and HVO as well as the sales and financing of vacation ownership interests.
As of December 31, 2014, financial results for the company will reflect the realigned segment structure. Included with this press release is re-cast financial information for the first, second and third quarters of 2014 as well as four quarters of 2013 consistent with these realigned segments.
The Company will release its results for the fourth quarter and fiscal year ending December 31, 2014 on February 26th at 4:00 pm Eastern Time.
Exchange and Rental Financial Information | |||||||||||||||||||||
| QTD | QTD | QTD | YTD | ||||||||||||||||||
| Exchange and Rental | 3/31/2014 | 6/30/2014 | 9/30/2014 | 9/30/2014 | |||||||||||||||||
| Revenue | $ | 130,088 | $ | 116,802 | $ | 120,217 | $ | 367,107 | |||||||||||||
| Cost of sales | 49,025 | 44,782 | 44,186 | 137,993 | |||||||||||||||||
| Gross profit | 81,063 | 72,020 | 76,031 | 229,114 | |||||||||||||||||
| Selling and marketing expense | 14,432 | 13,824 | 14,641 | 42,897 | |||||||||||||||||
| General and administrative expense | 24,719 | 25,540 | 25,334 | 75,593 | |||||||||||||||||
| Amortization expense of intangibles | 1,829 | 1,751 | 1,739 | 5,319 | |||||||||||||||||
| Depreciation expense | 3,611 | 3,694 | 3,587 | 10,892 | |||||||||||||||||
| Operating income | 36,472 | 27,211 | 30,730 | 94,413 | |||||||||||||||||
| Amortization expense of intangibles | 1,829 | 1,751 | 1,739 | 5,319 | |||||||||||||||||
| Depreciation expense | 3,611 | 3,694 | 3,587 | 10,892 | |||||||||||||||||
| Net income attributable to noncontrolling interest | (18 | ) | - | (9 | ) | (27 | ) | ||||||||||||||
| Other non-operating income (expense), net | 17 | (279 | ) | 535 | 273 | ||||||||||||||||
| EBITDA | 41,911 | 32,377 | 36,582 | 110,870 | |||||||||||||||||
| Non-cash compensation expense | 2,479 | 2,261 | 2,423 | 7,163 | |||||||||||||||||
| Acquisition related and restructuring costs | 351 | 988 | 385 | 1,724 | |||||||||||||||||
| Less: Other non-operating income (expense), net | (17 | ) | 279 | (535 | ) | (273 | ) | ||||||||||||||
| Adjusted EBITDA | $ | 44,724 | $ | 35,905 | $ | 38,855 | $ | 119,484 | |||||||||||||
| QTD | QTD | QTD | QTD | YTD | |||||||||||||||||
| Exchange and Rental | 3/31/2013 | 6/30/2013 | 9/30/2013 | 12/31/2013 | 12/31/2013 | ||||||||||||||||
| Revenue | $ | 122,018 | $ | 112,884 | $ | 106,543 | $ | 100,944 | $ | 442,389 | |||||||||||
| Cost of sales | 39,292 | 36,338 | 34,881 | 35,051 | 145,562 | ||||||||||||||||
| Gross profit | 82,726 | 76,546 | 71,662 | 65,893 | 296,827 | ||||||||||||||||
| Selling and marketing expense | 13,609 | 14,106 | 12,794 | 12,591 | 53,100 | ||||||||||||||||
| General and administrative expense | 21,996 | 23,738 | 23,156 | 25,013 | 93,903 | ||||||||||||||||
| Amortization expense of intangibles | 1,266 | 1,266 | 1,291 | 1,303 | 5,126 | ||||||||||||||||
| Depreciation expense | 3,577 | 3,611 | 3,417 | 3,529 | 14,134 | ||||||||||||||||
| Operating income | 42,278 | 33,825 | 31,004 | 23,457 | 130,564 | ||||||||||||||||
| Amortization expense of intangibles | 1,266 | 1,266 | 1,291 | 1,303 | 5,126 | ||||||||||||||||
| Depreciation expense | 3,577 | 3,611 | 3,417 | 3,529 | 14,134 | ||||||||||||||||
| Net (income) loss attributable to noncontrolling interest | (6 | ) | 1 | (4 | ) | 9 | - | ||||||||||||||
| Other non-operating income (expense), net | (348 | ) | 1,480 | (70 | ) | (635 | ) | 427 | |||||||||||||
| EBITDA | 46,767 | 40,183 | 35,638 | 27,663 | 150,251 | ||||||||||||||||
| Non-cash compensation expense | 2,414 | 2,418 | 2,440 | 2,469 | 9,741 | ||||||||||||||||
| Prior period item | - | (3,496 | ) | - | - | (3,496 | ) | ||||||||||||||
| Acquisition related and restructuring costs | 212 | (45 | ) | 389 | 452 | 1,008 | |||||||||||||||
| Less: Other non-operating income (expense), net | 348 | (1,480 | ) | 70 | 635 | (427 | ) | ||||||||||||||
| Adjusted EBITDA | $ | 49,741 | $ | 37,580 | $ | 38,537 | $ | 31,219 | $ | 157,077 | |||||||||||
Vacation Ownership Financial Information | |||||||||||||||||||||
| Vacation Ownership | QTD | QTD | QTD | YTD | |||||||||||||||||
3/31/2014 | 6/30/2014 | 9/30/2014 | 9/30/2014 | ||||||||||||||||||
| Revenue | $ | 26,953 | $ | 26,726 | $ | 26,466 | $ | 80,145 | |||||||||||||
| Cost of sales | 14,826 | 14,979 | 14,808 | 44,613 | |||||||||||||||||
| Gross profit | 12,127 | 11,747 | 11,658 | 35,532 | |||||||||||||||||
| Selling and marketing expense | 136 | (15 | ) | 159 | 280 | ||||||||||||||||
| General and administrative expense | 6,719 | 5,711 | 6,005 | 18,435 | |||||||||||||||||
| Amortization expense of intangibles | 1,137 | 1,144 | 1,140 | 3,421 | |||||||||||||||||
| Depreciation expense | 182 | 182 | 178 | 542 | |||||||||||||||||
| Operating income | 3,953 | 4,725 | 4,176 | 12,854 | |||||||||||||||||
| Amortization expense of intangibles | 1,137 | 1,144 | 1,140 | 3,421 | |||||||||||||||||
| Depreciation expense | 182 | 182 | 178 | 542 | |||||||||||||||||
| Net income attributable to noncontrolling interest | (961 | ) | (1,034 | ) | (800 | ) | (2,795 | ) | |||||||||||||
| Other non-operating expense, net | (153 | ) | (1 | ) | (24 | ) | (178 | ) | |||||||||||||
| EBITDA | 4,158 | 5,016 | 4,670 | 13,844 | |||||||||||||||||
| Non-cash compensation expense | 368 | 371 | 395 | 1,134 | |||||||||||||||||
| Acquisition related and restructuring costs | 887 | 181 | 457 | 1,525 | |||||||||||||||||
| Less: Other non-operating expense, net | 153 | 1 | 24 | 178 | |||||||||||||||||
| Adjusted EBITDA | $ | 5,566 | $ | 5,569 | $ | 5,546 | $ | 16,681 | |||||||||||||
| Vacation Ownership | QTD | QTD | QTD | QTD | YTD | ||||||||||||||||
3/31/2013 | 6/30/2013 | 9/30/2013 | 12/31/2013 | 12/31/2013 | |||||||||||||||||
| Revenue | $ | 12,863 | $ | 12,099 | $ | 12,613 | $ | 21,251 | $ | 58,826 | |||||||||||
| Cost of sales | 7,084 | 7,083 | 7,110 | 12,671 | 33,948 | ||||||||||||||||
| Gross profit | 5,779 | 5,016 | 5,503 | 8,580 | 24,878 | ||||||||||||||||
| Selling and marketing expense | 125 | 167 | 158 | 172 | 622 | ||||||||||||||||
| General and administrative expense | 4,309 | 4,488 | 4,230 | 5,644 | 18,671 | ||||||||||||||||
| Amortization expense of intangibles | 746 | 629 | 658 | 974 | 3,007 | ||||||||||||||||
| Depreciation expense | 87 | 85 | 82 | 143 | 397 | ||||||||||||||||
| Operating income (expense) | 512 | (353 | ) | 375 | 1,647 | 2,181 | |||||||||||||||
| Amortization expense of intangibles | 746 | 629 | 658 | 974 | 3,007 | ||||||||||||||||
| Depreciation expense | 87 | 85 | 82 | 143 | 397 | ||||||||||||||||
| Net income attributable to noncontrolling interest | - | - | - | (565 | ) | (565 | ) | ||||||||||||||
| Other non-operating income (expense), net | (171 | ) | (2 | ) | 5 | - | (168 | ) | |||||||||||||
| EBITDA | 1,174 | 359 | 1,120 | 2,199 | 4,852 | ||||||||||||||||
| Non-cash compensation expense | 144 | 168 | 169 | 206 | 687 | ||||||||||||||||
| Prior period item | - | - | - | - | - | ||||||||||||||||
| Acquisition related and restructuring costs | 540 | 645 | 1,051 | 1,223 | 3,459 | ||||||||||||||||
| Less: Other non-operating income (expense), net | 171 | 2 | (5 | ) | - | 168 | |||||||||||||||
| Adjusted EBITDA | $ | 2,029 | $ | 1,174 | $ | 2,335 | $ | 3,628 | $ | 9,166 | |||||||||||
Consolidated Interval Leisure Group Financial Information | |||||||||||||||||
| Interval Leisure Group | QTD | QTD | QTD | YTD | |||||||||||||
3/31/2014 | 6/30/2014 | 9/30/2014 | 9/30/2014 | ||||||||||||||
| Revenue | $ | 157,041 | $ | 143,528 | $ | 146,683 | $ | 447,252 | |||||||||
| Cost of sales | 63,851 | 59,761 | 58,994 | 182,606 | |||||||||||||
| Gross profit | 93,190 | 83,767 | 87,689 | 264,646 | |||||||||||||
| Selling and marketing expense | 14,568 | 13,809 | 14,800 | 43,177 | |||||||||||||
| General and administrative expense | 31,438 | 31,251 | 31,339 | 94,028 | |||||||||||||
| Amortization expense of intangibles | 2,966 | 2,895 | 2,879 | 8,740 | |||||||||||||
| Depreciation expense | 3,793 | 3,876 | 3,765 | 11,434 | |||||||||||||
| Operating income | 40,425 | 31,936 | 34,906 | 107,267 | |||||||||||||
| Amortization expense of intangibles | 2,966 | 2,895 | 2,879 | 8,740 | |||||||||||||
| Depreciation expense | 3,793 | 3,876 | 3,765 | 11,434 | |||||||||||||
| Net income attributable to noncontrolling interest | (979 | ) | (1,034 | ) | (809 | ) | (2,822 | ) | |||||||||
| Other non-operating expense, net | (136 | ) | (280 | ) | 511 | 95 | |||||||||||
| EBITDA | 46,069 | 37,393 | 41,252 | 124,714 | |||||||||||||
| Non-cash compensation expense | 2,847 | 2,632 | 2,818 | 8,297 | |||||||||||||
| Acquisition related and restructuring costs | 1,238 | 1,169 | 842 | 3,249 | |||||||||||||
| Less: Other non-operating expense, net | 136 | 280 | (511 | ) | (95 | ) | |||||||||||
| Adjusted EBITDA | $ | 50,290 | $ | 41,474 | $ | 44,401 | $ | 136,165 | |||||||||
| Interval Leisure Group | QTD | QTD | QTD | QTD | YTD | ||||||||||||||||
3/31/2013 | 6/30/2013 | 9/30/2013 | 12/31/2013 | 12/31/2013 | |||||||||||||||||
| Revenue | $ | 134,881 | $ | 124,983 | $ | 119,156 | $ | 122,195 | $ | 501,215 | |||||||||||
| Cost of sales | 46,376 | 43,421 | 41,991 | 47,722 | 179,510 | ||||||||||||||||
| Gross profit | 88,505 | 81,562 | 77,165 | 74,473 | 321,705 | ||||||||||||||||
| Selling and marketing expense | 13,734 | 14,273 | 12,952 | 12,763 | 53,722 | ||||||||||||||||
| General and administrative expense | 26,305 | 28,226 | 27,386 | 30,657 | 112,574 | ||||||||||||||||
| Amortization expense of intangibles | 2,012 | 1,895 | 1,949 | 2,277 | 8,133 | ||||||||||||||||
| Depreciation expense | 3,664 | 3,696 | 3,499 | 3,672 | 14,531 | ||||||||||||||||
| Operating income | 42,790 | 33,472 | 31,379 | 25,104 | 132,745 | ||||||||||||||||
| Amortization expense of intangibles | 2,012 | 1,895 | 1,949 | 2,277 | 8,133 | ||||||||||||||||
| Depreciation expense | 3,664 | 3,696 | 3,499 | 3,672 | 14,531 | ||||||||||||||||
| Net income attributable to noncontrolling interest | (6 | ) | 1 | (4 | ) | (556 | ) | (565 | ) | ||||||||||||
| Other non-operating income (expense), net | (519 | ) | 1,478 | (65 | ) | (635 | ) | 259 | |||||||||||||
| EBITDA | 47,941 | 40,542 | 36,758 | 29,862 | 155,103 | ||||||||||||||||
| Non-cash compensation expense | 2,558 | 2,586 | 2,609 | 2,675 | 10,428 | ||||||||||||||||
| Prior period item | - | (3,496 | ) | - | - | (3,496 | ) | ||||||||||||||
| Acquisition related and restructuring costs | 752 | 600 | 1,440 | 1,675 | 4,467 | ||||||||||||||||
| Less: Other non-operating income (expense), net | 519 | (1,478 | ) | 65 | 635 | (259 | ) | ||||||||||||||
| Adjusted EBITDA | $ | 51,770 | $ | 38,754 | $ | 40,872 | $ | 34,847 | $ | 166,243 | |||||||||||
CONFERENCE CALL
ILG will host a conference call on February 26th at 4:30 p.m. Eastern Time to discuss its results for the fourth quarter and full year 2014, with access via the Internet and telephone.
Investors and analysts may participate in the live conference call by dialing (866) 383-8009 (toll-free domestic) or (617) 597-5342 (international); Conference ID: 26944701. Please register at least 10 minutes before the conference call begins. A replay of the call will be available for 14 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); Conference ID: 92132656. The webcast will be archived on Interval Leisure Group’s website for 90 days after the call. A transcript of the call will also be available on the website www.iilg.com.
ABOUT INTERVAL LEISURE GROUP
Interval Leisure Group (ILG) is a leading global provider of non-traditional lodging, encompassing a portfolio of leisure businesses from exchange and vacation rental to vacation ownership. In its exchange and rental segment, Interval International and Trading Places International (TPI) offer vacation exchange and travel-related products to more than 2 million member families worldwide, while Hyatt Residence Club provides exchanges among its branded resorts in addition to its participation in the Interval Network. Aston Hotels & Resorts and Aqua Hospitality provide hotel and condominium rentals and resort management. In its vacation ownership segment, Vacation Resorts International, VRI Europe, Hyatt Vacation Ownership (HVO) and TPI provide management services to timeshare resorts and clubs, as well as homeowners’ associations. HVO also sells, markets, and finances vacation ownership interests. ILG through its subsidiaries independently owns and manages the Hyatt Residence Club program and uses the Hyatt Vacation Ownership name and other Hyatt marks under license from affiliates of Hyatt Hotels Corporation. Headquartered in Miami, Florida, ILG has offices in 16 countries and more than 6,000 employees. For more information, visit 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; consolidation of developers; decreased demand from prospective purchasers of vacation interests; travel related health concerns; changes in our senior management; regulatory changes; our ability to compete effectively and successfully add new products and services; our ability to successfully manage and integrate acquisitions; the occurrence of a change of control event under the master license agreement with Hyatt; our failure to comply with designated Hyatt® brand standards with respect to the operation of the Hyatt Vacation Ownership business; our ability to market vacation ownership interests successfully and efficiently; impairment of assets; the restrictive covenants in our revolving credit facility; adverse events or trends in key vacation destinations; business interruptions in connection with our technology systems; ability of managed homeowners associations to collect sufficient maintenance fees; third parties not repaying advances or extensions of credit; 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.
GLOSSARY OF TERMS
Acquisition related and restructuring costs - Represent transaction fees, costs incurred in connection with performing due diligence, subsequent adjustments to our initial estimate of contingent consideration obligations associated with business acquisitions, and other direct costs related to acquisition activities. Additionally, this item includes certain restructuring charges primarily related to workforce reductions and estimated costs of exiting contractual commitments.
Adjusted EBITDA - EBITDA, excluding, if applicable: (1) non-cash compensation expense, (2) goodwill and asset impairments, (3) acquisition related and restructuring costs, (4) other non-operating income and expense (including loss on extinguishment of debt), (5) the impact of correcting prior period items, and (6) other special items. The Company's presentation of adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
EBITDA - Net income attributable to common stockholders excluding, if applicable: (1) non-operating interest income and interest expense, (2) income taxes, (3) depreciation expense, and (4) amortization expense of intangibles.
Contacts:
Investor Contact:
Jennifer Klein,
305-925-7302
Investor Relations
Jennifer.Klein@iilg.com
Or
Media
Contact:
Christine Boesch, 305-925-7267
Corporate
Communications
Chris.Boesch@iilg.com
