Wed, Jul 24, 1:41 PM (45 days ago)
Travel + Leisure Co. reported a strong performance for Q2 2024, with net revenues rising to $985 million from $949 million in Q2 2023. The Vacation Ownership segment drove this growth, seeing a significant increase in gross VOI sales and consumer financing revenues. However, the Travel and Membership segment experienced a slight revenue decline due to lower transactions, despite higher revenue per transaction. Operating income improved to $189 million from $183 million, while net income attributable to shareholders surged to $129 million from $94 million, aided by a $32 million gain from expired guarantees related to the European vacation rentals business. Expenses rose by $30 million, largely due to higher sales commissions, marketing costs, and consumer financing interest expenses. The company also reported $63 million in interest expenses, up from $61 million, attributed to higher debt levels and interest rates. The effective tax rate was slightly lower at 27.4%. The company maintained a strong liquidity position, with $166 million in cash and cash equivalents and $694 million available under its revolving credit facility. Cash flow from operations increased significantly to $221 million, driven by improved working capital management. The company continued its capital deployment strategy, spending $57 million on vacation ownership development and $38 million on capital expenditures. Share repurchases totaled $95 million, and dividends paid amounted to $73 million.