Interval Leisure Group Reports Second Quarter 2012 Results

Interval Leisure Group (Nasdaq: IILG) (“ILG”) today announced results for the three months ended June 30, 2012.

SECOND QUARTER 2012 HIGHLIGHTS
  • Earnings per share of $0.18 vs. $0.13 in the prior year, an increase of 38.5%.
  • ILG consolidated revenue grew 12.4% year-over-year.
    • Membership and Exchange segment revenue increased 2.7%.
    • Management and Rental segment revenue is up 59.0%. Excluding pass-through revenue, Management and Rental segment revenue is up 99.7%.
  • Consolidated Adjusted EBITDA increased by 6.8% year-over-year.
  • Total active Interval Network members at June 30, 2012 rose 3.0% compared to June 30, 2011.
  • Revenue per Available Room (“RevPAR”) at Aston grew 23.5% compared to prior year.
  • Entered into an amended and restated $500 million revolving credit facility in June, prior to issuing in July a notice to redeem our $300 million senior notes on September 4, 2012.

“Interval Leisure Group posted solid results for the second quarter of 2012. With 12.4% top-line and 6.8% Adjusted EBITDA growth, we once again demonstrated the strength of our fee-for-service businesses,” said Craig M. Nash, Chairman, President and Chief Executive Officer of Interval Leisure Group. “Additionally, we are benefitting from the positive contributions of our acquisitions.”

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

 
Three Months Ended

Quarter
June 30,

Over Quarter
Metrics   2012   2011  

Change
Revenue $ 118.7   $ 105.6 12.4 %
Membership and Exchange revenue $ 89.7 $ 87.4 2.7 %
Management and Rental revenue $ 28.9 $ 18.2 59.0 %
Gross profit $ 75.4 $ 70.2 7.4 %
Net income attributable to common stockholders $ 10.1 $ 7.5 34.0 %
Diluted EPS $ 0.18 $ 0.13 38.5 %
Adjusted EBITDA*   $ 37.3   $ 34.9   6.8 %
 
Balance sheet data  

June 30,

2012
 

December 31,

2011
   
Cash and cash equivalents $ 121.1 $ 195.5
Debt   $ 285.5   $ 340.1    
 

 
Six Months Ended

Quarter
June 30,

Over Quarter
Cash flow data   2012   2011  

Change
Net cash provided by operating activities $ 50.2 $ 56.8 (11.6 )%
Free cash flow*   $ 42.9   $ 50.7   (15.5 )%
 

* “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 2012 Consolidated Operating Results

Consolidated revenue for the second quarter ended June 30, 2012 was $118.7 million, an increase of 12.4% from $105.6 million for the second quarter of 2011.

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