8-7-13 4:05 PM EDT | Email Article

Interval Leisure Group (Nasdaq:IILG) ("ILG") today announced results for the three months ended June 30, 2013.

SECOND QUARTER 2013 HIGHLIGHTS

  • Earnings per share of $0.36 vs. $0.18 in the prior year. Non-GAAP earnings per share, as discussed further below, were $0.32 in the current quarter.
  • ILG consolidated revenue grew 5.3% year-over-year. Consolidated non-GAAP revenue was up 1.9%.
  • Revenue per Available Room (“RevPAR”) at Aston grew 9.9% compared to the prior year.
  • Free cash flow was $54.7 million year to date, an increase of 27.5% from the same period last year.

"During the second quarter, both segments concentrated on organic growth initiatives and new business development activities,” said Craig M. Nash, Chairman, President and Chief Executive Officer of Interval Leisure Group. "As we approach the anniversary of ILG’s establishment as a public company, we are pleased with all that our team has accomplished the past 5 years. Interval Leisure Group remains focused on executing its strategy to diversify and broaden its role in the non-traditional hospitality and lodging business."

Financial Summary & Operating Metrics (USD in millions except per share amounts)

 

Three Months Ended

June 30,

 

Quarter

Over

Quarter

Change

Metrics   2013     2012  
Revenue 125.0     118.7 5.3%
Membership and Exchange revenue 95.5 89.7 6.5%
Management and Rental revenue 29.5 28.9 1.8%
Gross profit 81.6 75.4 8.2%
Net income attributable to common stockholders 20.6 10.1 104.6%
Non-GAAP net income* 18.5 10.1 83.7%
Diluted EPS $0.36 $0.18 100.0%
Non-GAAP diluted EPS* $0.32 $0.18 77.8%
Adjusted EBITDA*   38.2     37.3   2.4%
Balance sheet data   June 30, 2013     December 31, 2012
Cash and cash equivalents 109.0 101.2
Debt   215.0         260.0

Six Months Ended

June 30,

Year

Over Year

Change

Cash flow data   2013     2012  
Net cash provided by operating activities 61.3 50.2 22.0%
Free cash flow*   54.7   42.9   27.5%

* “Non-GAAP net income”, Non-GAAP diluted EPS”, “Adjusted 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 2013 Consolidated Operating Results

Consolidated revenue for the second quarter ended June 30, 2013 was $125 million, an increase of 5.3% from $118.7 million for the second quarter of 2012. Net income for the three months ended June 30, 2013 was $20.6 million, an increase of 104.6% from net income of $10.1 million for the same period of 2012.

Operating results for the second quarter of 2013 reflect the correction of an immaterial net understatement of membership revenue, related membership expenses, and income for the period commencing January 1, 2011 through March 31, 2013. The out of period correction of this item resulted in the recognition of $4.1 million of membership revenue and $0.6 million of certain membership expenses in the three months ended June 30, 2013. Consequently, operating income and net income for the second quarter of 2013 were increased by $3.5 million and $2.1 million, respectively, or $0.04 of diluted earnings per share.

Excluding the impact of the prior period item discussed above, non-GAAP consolidated revenue for the second quarter of 2013 increased by 1.9% to $120.9 million on a year-over-year basis. This increase was driven primarily by stronger transaction revenue of $1.1 million generated by our Membership and Exchange segment and a rise in RevPAR of 9.9% at Aston.

Non-GAAP net income (defined below) for the second quarter of 2013 was $18.5 million, an increase of $8.4 million from net income of $10.1 million for the same period of 2012. The year-over-year increase in non-GAAP net income reflects higher operating income of $6.3 million, primarily attributable to $5.4 million of lower amortization of intangibles expense, and a $7.2 million reduction in interest expense. Accordingly, income tax expense increased by $5.7 million. Second quarter 2013 non-GAAP diluted earnings per share (defined below) were $0.32 compared to diluted earnings per share of $0.18 for the same period of 2012.

Adjusted EBITDA (defined below) was $38.2 million for the quarter ended June 30, 2013, compared to $37.3 million for the same period of 2012.

Business Segment Results

Membership and Exchange

Membership and Exchange segment revenue for the three months ended June 30, 2013 was $95.5 million, an increase of 6.5% from the comparable period in 2012. Excluding the impact of the prior period item, revenue for this segment increased 1.9% to $91.5 million in the current quarter compared to the prior year.

For the second quarter of 2013, transaction revenue was $50.2 million, an increase of 2.2%, and membership fee revenue (defined below) was $36.8 million, which includes $4.1 million related to the prior period item.

Total active Interval Network members at June 30, 2013 were approximately 1,821,000, a decrease of 2.1% from June 30, 2012. The reduction in members was primarily due to fewer new members entering from the developer point of sale. Average revenue per member for the second quarter of 2013 was $48.59, representing an increase of 7.7% from $45.11 in the prior year. On a non-GAAP basis, average revenue per member was $46.37 in the current quarter, higher by 2.8% year-over-year. During the second quarter of 2013, Interval affiliated 14 vacation ownership resorts in domestic and international markets.

Membership and Exchange segment adjusted EBITDA was $36.1 million in the second quarter, an increase of 4.3% from the second quarter of 2012. The improvement in adjusted EBITDA primarily resulted from stronger transaction revenue and greater adoption of our Platinum and Club Interval products on a year-over-year basis.

Management and Rental

Management and Rental segment revenue for the three months ended June 30, 2013 was $29.5 million, including $14.2 million of management fee and rental revenue (defined below). Management fee and rental revenue grew by 4.1% on a year-over-year basis. The improvement in management fee and rental revenue was primarily due to higher RevPAR at Aston. Aston RevPAR for the quarter ended June 30, 2013 was $129.17 compared to $117.49 for the same period in 2012, driven by an 11.2% improvement in average daily rate.

In the second quarter of 2013, Management and Rental segment adjusted EBITDA was $2.0 million, compared to $2.6 million in the prior year period. The decline in this segment’s adjusted EBITDA resulted from an increase in professional fees incurred during the quarter largely related to our anticipated purchase of 75.5% of the European shared ownership management business of CLC World Resorts and Hotels.

CAPITAL RESOURCES AND LIQUIDITY

As of June 30, 2013, ILG had $109.0 million of cash and cash equivalents, including $92.4 million of U.S. dollar equivalent or denominated cash deposits held by foreign subsidiaries which are subject to changes in foreign exchange rates. Of this amount, $60.5 million is held in foreign jurisdictions, principally the U.K.

Debt outstanding as of June 30, 2013 was $215 million. As of this date, ILG had $285 million available on its revolving credit facility, which may be increased by an additional $200 million, subject to specified conditions.

For the first half of 2013, ILG's capital expenditures totaled $6.6 million, or 2.5% of revenue, net cash provided by operating activities was $61.3 million and free cash flow (defined below) was $54.7 million, an increase of 27.5% from the same period of 2012. This improvement in free cash flow was driven by lower interest paid as well as higher cash receipts in 2013 compared to 2012, partly offset by higher income taxes paid in 2013.

Dividend

The Board of Directors of Interval Leisure Group declared a quarterly dividend payment of $0.11 per share to shareholders of record on June 4, 2013. On June 18, 2013, a cash dividend of $6.3 million was paid. Additionally, the board of directors has declared a third quarter dividend of $0.11 per share which is scheduled to be paid on September 18, 2013 to shareholders of record on September 4, 2013.

PRESENTATION OF FINANCIAL INFORMATION

ILG management believes that the presentation of non-generally accepted accounting principles (non-GAAP) financial measures, including, among others, EBITDA, adjusted EBITDA, non-GAAP net income, non-GAAP basic and diluted EPS 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, adjusted 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 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 2013, with access via the Internet and telephone. Investors and analysts may participate in the live conference call by dialing (866) 700-6293 (toll-free domestic) or (617) 213-8835 (international); participant pass code: 61317901. 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 website at www.iilg.com. The replay can be accessed at (888) 286-8010 (toll-free domestic) or (617) 801-6888 (international); pass code: 14269281. The webcast will be archived on ILG's website 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. Headquartered in Miami, Florida, ILG has more than 3,500 employees worldwide.

The company’s Membership and Exchange segment offers leisure and travel-related products and services to about 2 million member families who are enrolled in various programs. Interval International, the segment’s principal business, has been a leader in vacation ownership exchange since 1976. With offices in 16 countries, it operates the Interval Network of approximately 2,800 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’s Management and Rental segment includes Aston Hotels & Resorts, Vacation Resorts International (VRI), and TPI. These businesses provide hotel, condominium resort, timeshare resort, and homeowners’ association management, as well as rental services, to travelers and owners at more than 200 vacation properties, resorts and club locations throughout 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 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; impairment of assets; the restrictive covenants in our revolving credit facility; adverse events or trends in key vacation destinations; business interruptions in connection with the rearchitecture of 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.

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,
2013   20122013   2012
 
Revenue $ 124,983 $ 118,668 $ 259,864 $ 245,407
Cost of sales   43,421     43,261     89,797     86,052  
Gross profit 81,562 75,407 170,067 159,355
Selling and marketing expense 14,272 14,268 28,007 28,041
General and administrative expense 28,227 26,980 54,532 52,406
Amortization expense of intangibles 1,896 7,289 3,908 14,332
Depreciation expense   3,696     3,222     7,360     6,528  
Operating income 33,471 23,648 76,260 58,048
Other income (expense):
Interest income 72 577 223 1,003
Interest expense (1,611 ) (8,825 ) (3,264 ) (17,389 )
Other income (expense), net 1,479 980 959 (1,493 )
Loss on extinguishment of debt   -     (602 )   -     (602 )
Total other expense, net   (60 )   (7,870 )   (2,082 )   (18,481 )
Earnings before income taxes and noncontrolling interest 33,411 15,778 74,178 39,567
Income tax provision   (12,841 )   (5,727 )   (28,598 )   (14,287 )
Net income 20,570 10,051 45,580 25,280
Net loss (income) attributable to noncontrolling interest   -     1     (6 )   (3 )
Net income attributable to common stockholders $ 20,570   $ 10,052   $ 45,574   $ 25,277  
 
Earnings per share attributable to common stockholders:
Basic $ 0.36 $ 0.18 $ 0.80 $ 0.45
Diluted $ 0.36 $ 0.18 $ 0.79 $ 0.44
Weighted average number of common stock outstanding:
Basic 57,315 56,540 57,121 56,315
Diluted 57,795 57,321 57,615 56,998
Dividends declared per share of common stock $ 0.11 $ 0.10 $ 0.11 $ 0.20
                 
 
Non-GAAP net income1 $ 18,461 $ 10,052 $ 43,465 $ 25,277
Non-GAAP earnings per share1:
Basic $ 0.32 $ 0.18 $ 0.76 $ 0.45
Diluted $ 0.32 $ 0.18 $ 0.75 $ 0.44
 
1 "Non-GAAP net income" and "Non-GAAP earnings per share" are non-GAAP measures as defined by the SEC. Please see "Reconciliations of Non-GAAP Measures" for a reconciliation to the comparable GAAP measure.
 
INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
 
  June 30, 2013   December 31, 2012
 
ASSETS
Cash and cash equivalents $ 108,999 $ 101,162
Deferred membership costs 10,019 12,349
Prepaid income taxes 11,175 12,973
Other current assets   93,004   83,011
Total current assets 223,197 209,495
Goodwill and intangible assets, net 600,544 604,452
Deferred membership costs 11,673 11,058
Other non-current assets   69,185   81,915
TOTAL ASSETS $ 904,599 $ 906,920
 
 
LIABILITIES AND EQUITY
LIABILITIES:
Accounts payable, trade $ 12,828 $ 11,086
Deferred revenue 101,399 93,367
Other current liabilities   71,173   70,950
Total current liabilities 185,400 175,403
Long-term debt 215,000 260,000
Deferred revenue 105,440 111,273
Other long-term liabilities 86,559 87,752
Redeemable noncontrolling interest 431 426
TOTAL STOCKHOLDERS' EQUITY   311,769   272,066
TOTAL LIABILITIES AND EQUITY $ 904,599 $ 906,920
 
INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
  Six Months Ended June 30,
2013   2012
 
Cash flows from operating activities:
Net income $ 45,580 $ 25,280
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization expense of intangibles 3,908 14,332
Amortization of debt issuance costs 391 816
Depreciation expense 7,360 6,528
Accretion of original issue discount - 1,355
Non-cash compensation expense 5,144 6,169
Non-cash interest expense 170 221
Non-cash interest income - (362 )
Deferred income taxes (1,427 ) (716 )
Excess tax benefits from stock-based awards (2,598 ) (2,233 )
Loss (gain) on disposal of property and equipment 163 (256 )
Loss on extinguishment of debt - 602
Change in fair value of contingent consideration 337 -
Changes in operating assets and liabilities   2,231     (1,538 )
Net cash provided by operating activities   61,259     50,198  
Cash flows from investing activities:
Acquisition, net of cash acquired - (39,963 )
Capital expenditures (6,592 ) (7,318 )
Investment in financing receivables - (9,480 )
Payments received on financing receivables 9,876 2,873
Proceeds from disposal of property and equipment   7     230  

Net cash provided by (used in) investing activities

  3,291     (53,658 )
Cash flows from financing activities:
Principal payments on term loan - (56,000 )

Payments on revolving credit facility

(45,000 ) -
Payments of debt issuance costs - (3,785 )
Dividend payments (6,304 ) (11,309 )

Withholding taxes on vesting of restricted stock units

(4,466 ) (3,615 )
Proceeds from the exercise of stock options 377 386
Excess tax benefits from stock-based awards   2,598     2,233  
Net cash used in financing activities   (52,795 )   (72,090 )
Effect of exchange rate changes on cash and cash equivalents   (3,918 )   1,168  
Net increase (decrease) in cash and cash equivalents 7,837 (74,382 )
Cash and cash equivalents at beginning of period   101,162     195,517  
Cash and cash equivalents at end of period $ 108,999   $ 121,135  
 
 
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized $ 2,819 $ 14,994
Income taxes, net of refunds $ 25,872 $ 21,762
 
OPERATING STATISTICS
 
  Three Months Ended June 30,   Six Months Ended June 30,
2013   % Change   20122013   % Change   2012
Membership and Exchange
Total active members at end of period (000's) 1,821 (2.1 )% 1,860 1,821 (2.1 )% 1,860
Average revenue per member1 $ 48.59 7.7 % $ 45.11 $ 101.39 4.1 % $ 97.43
 
Management and Rental
Available room nights (000's) 364 (3.2 )% 376 713 (4.3 )% 745
RevPAR $ 129.17 9.9 % $ 117.49 $ 147.39 12.9 % $ 130.50
 
1 Excluding the $4.1 million of membership revenue included in the current quarter related to the prior period item, average revenue per member for the three and six month periods ending June 30, 2013 would have been $46.37 and $99.17, respectively.
 
 
ADDITIONAL DATA
 
Three Months Ended June 30,Six Months Ended June 30,
2013   % Change20122013% Change2012
(Dollars in thousands)(Dollars in thousands)
Membership and Exchange
Transaction revenue $ 50,174 2.2 % $ 49,082 $ 111,322 1.0 % $ 110,233
Membership fee revenue1 36,819 13.2 % 32,535 70,183 7.8 % 65,134
Ancillary member revenue   1,811   3.8 %   1,744     3,736   NM     3,735  
Total member revenue 88,804 6.5 % 83,361 185,241 3.4 % 179,102
Other revenue   6,713   5.5 %   6,365     12,371   7.3 %   11,531  
Total revenue $ 95,517   6.5 % $ 89,726   $ 197,612   3.7 % $ 190,633  
 
Management and Rental
Management fee and rental revenue $ 14,172 4.1 % $ 13,615 $ 31,617 21.4 % $ 26,048
Pass-through revenue   15,294   (0.2 )%   15,327     30,635   6.6 %   28,726  
Total revenue $ 29,466   1.8 % $ 28,942   $ 62,252   13.7 % $ 54,774  
Management and Rental gross margin

29.9%

 

3.2

%

29.0%

 

33.2%

 

9.9

%

30.2%

 

Management and Rental gross margin without Pass-through Revenue

62.3%

 

0.9

%

61.7%

 

65.4%

 

2.9

%

63.6%

 

 
1 Excluding the $4.1 million of membership revenue included in the current quarter related to the prior period item, membership fee revenue for the three and six month periods ending June 30, 2013 as presented in this table would have been $32,766 and $66,130, respectively.
 
RECONCILIATIONS OF NON-GAAP MEASURES
 
  Six Months Ended June 30,  
2013   % Change2012
(Dollars in thousands)
 
Net cash provided by operating activities $ 61,259 22.0 % $ 50,198
Less: Capital expenditures   (6,592 )   (9.9 )%   (7,318 )
Free cash flow $ 54,667     27.5 % $ 42,880  
 
 
 
Three Months Ended June 30,Six Months Ended June 30,
201320122013   2012
(Dollars in thousands, except per share data)
 
Net income attributable to common stockholders $ 20,570 $ 10,052 $ 45,574 $ 25,277
Prior period item1 (3,496 ) - (3,496 ) -
Income tax provision on adjusting item2   1,387     -     1,387     -
Non-GAAP net income $ 18,461   $ 10,052   $ 43,465   $ 25,277
Non-GAAP earnings per share:
Basic $ 0.32 $ 0.18 $ 0.76 $ 0.45
Diluted $ 0.32 $ 0.18 $ 0.75 $ 0.44
 
1 During the current quarter, we identified an immaterial net understatement of membership revenue, related membership expenses, and income for the period commencing January 1, 2011 through March 31, 2013. In accordance with ASC 250, “Accounting Changes and Error Corrections,” we assessed the materiality of the misstatement, both quantitatively and qualitatively, and concluded it is not material to any of our previously issued or current year financial statements.
 
2 Tax rate utilized is the applicable effective tax rate respective to the period to the extent amounts are deductible.
 
Three Months Ended June 30,
2013         2012        
Membership

and

Exchange

Management

and

Rental

ConsolidatedMembership

and

Exchange

Management

and

Rental

Consolidated
(Dollars in thousands)
 
Adjusted EBITDA $ 36,133 $ 2,021 $ 38,154 $ 34,651 $ 2,600 $ 37,251
Non-cash compensation expense (2,329) (258) (2,587) (2,835) (257) (3,092)
Other non-operating income (expense), net 1,481 (2) 1,479 980 - 980
Loss on extinguishment of debt - - - (602) - (602)
Prior period item 3,496 - 3,496 - - -
EBITDA 38,781 1,761 40,542 32,194 2,343 34,537
Amortization expense of intangibles (337) (1,559) (1,896) (5,420) (1,869) (7,289)
Depreciation expense (3,367) (329) (3,696) (2,951) (271) (3,222)
Less: Other non-operating income (expense), net (1,481) 2 (1,479) (980) - (980)
Less: Loss on extinguishment of debt - - - 602 - 602

Operating income (loss)

$ 33,596 $ (125) 33,471 $ 23,445 $ 203 23,648
Interest income 72 577
Interest expense (1,611) (8,825)
Other non-operating income, net 1,479 980
Loss on extinguishment of debt - (602)
Income tax provision (12,841) (5,727)
Net income 20,570 10,051

Net loss attributable to noncontrolling interest

- 1
Net income attributable to common stockholders $ 20,570 $ 10,052
 
 
 
Six Months Ended June 30,
2013         2012        
Membership

and

Exchange

Management

and

Rental

ConsolidatedMembership

and

Exchange

Management

and

Rental

Consolidated
(Dollars in thousands)
 
Adjusted EBITDA $ 81,740 $ 7,436 $ 89,176 $ 78,162 $ 6,915 $ 85,077
Non-cash compensation expense (4,608) (536) (5,144) (5,643) (526) (6,169)
Other non-operating income (expense), net 1,132 (173) 959 (1,344) (149) (1,493)
Loss on extinguishment of debt - - - (602) - (602)
Prior period item 3,496 - 3,496 - - -
EBITDA 81,760 6,727 88,487 70,573 6,240 76,813
Amortization expense of intangibles (674) (3,234) (3,908) (10,840) (3,492) (14,332)
Depreciation expense (6,686) (674) (7,360) (6,014) (514) (6,528)
Less: Other non-operating income (expense), net (1,132) 173 (959) 1,344 149 1,493
Less: Loss on extinguishment of debt - - - 602 - 602
Operating income $ 73,268 $ 2,992 76,260 $ 55,665 $ 2,383 58,048
Interest income 223 1,003
Interest expense (3,264) (17,389)
Other non-operating income (expense), net 959 (1,493)
Loss on extinguishment of debt - (602)
Income tax provision (28,598) (14,287)
Net income 45,580 25,280
Net income attributable to noncontrolling interest (6) (3)
Net income attributable to common stockholders $ 45,574 $ 25,277

GLOSSARY OF TERMS

Adjusted EBITDA - EBITDA, excluding, if applicable: (1) non-cash compensation expense, (2) goodwill and asset impairments, (3) other non-operating income and expense (including loss on extinguishment of debt), and (4) the impact of correcting prior period items. The Company's presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

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) interest income and interest expense, (2) income taxes, (3) depreciation expense, and (4) amortization expense of intangibles.

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.

Membership Fee Revenue – Represents fees paid for membership in the Interval Network.

Non-GAAP Basic EPS - Non-GAAP Net Income divided by the weighted average number of shares of common stock outstanding during the period.

Non-GAAP Diluted EPS – Non-GAAP Net Income divided by the weighted average number of shares of common stock and dilutive securities outstanding during the period.

Non-GAAP Net Income - Net income attributable to common stockholders excluding the impact of correcting an immaterial prior period net understatement in the current period financials.

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 – Interval Network transactional and service fees paid primarily for exchanges, Getaways, and reservation servicing.

Interval Leisure Group
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@intervalintl.com

Copyright Business Wire 2013
Add a Comment

News   More...

Securities related to this article
Interval Leisure Group Inc View iilg Stock Quote
Interval Leisure Group Inc View iilg Stock Quote
 
Start Premium Trial Register For Free

P F Fund Financial Data (13,000+ funds)
P F Stock Financial Data (7,000+ stocks)
P F Stock and Fund Screeners (basic)
P F Investing Articles and Market Commentary
P F Articles Archive (>30 days)
P F Discuss (dozens of stock, fund, bond, and general bulletin boards)
P F Portfolio Manager (basic)
P F Morningstar Investment Classroom
P F Access Your Portfolio Anytime, Anywhere via Your Mobile Device
P   Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)
P   Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)
P   Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)
P   Portfolio Monitor (monthly and on-demand personalized portfolio statements)
P   Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)
P   Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters
P   Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)
P   Discounts on Morningstar newsletters, books, seminars, and more

Sign-up to Morningstar


Basic Access

Articles and Videos
Morningstar video reports, articles, data, and tools. Dig into our lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments.
Morningstar Discuss
Follow the buzz on individual stocks or fund families. Plus, read the latest posts from Morningstar members and analysts.
Portfolio Manager
Track your investments and watch lists with our Portfolio Manager. Customize your view with our comprehensive stock, fund, and ETF data.

Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.

Unlimited Access

Analyst Research
Gather in-depth, actionable insight on over 3,700 stock and mutual funds covered by Morningstar analysts. View our mutual fund Analyst Reports favored by professionals, savvy experienced investors, and new investors researching options for retirement savings, college plans, or other investment needs.
Portfolio X-Ray®
Ensure your portfolio is positioned exactly how you want with Morningstar's X-Ray Interpreter and Stock Intersection tools. A Barron's "Best of the Web" award winner for five years running, X-Ray Interpreter goes under the hood of your portfolio to provide a useful allocation, sector, and geographic analysis. And you can discover how much of a stock you really own, individually and through mutual funds, with Stock Intersection.
Investment Picks
Find new 5-star stocks (greatly undervalued companies) to consider daily. Our 5-star stock rating is a proven winner, consistently beating benchmarks like the S&P 500. Plus, browse our Fund Analyst Picks and Stewardship Grades to find shareholder-friendly mutual funds that are poised for outperformance.
Portfolio Monitor
Get a clear view of your investments with personalized reports about your portfolio. Receive monthly statements and generate reports on-demand to help you stay on track to meet your investment goals.

Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.

Content Partners
Morningstar - - Interval Leisure Group Reports Second Quarter 2013 Results
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Author |  Collection |  Interest |  Popularity

Previous: Interval Leisure Group Reports Fourth Quarter and Full Year 2013 Results  |  Next: Interval Leisure Group to Announce Fourth Quarter and Full Year 2013 Financial Results and Host Conference Call on February 27, 2014