Interval Leisure Group Reports Fourth Quarter and Full Year 2012 Results

Interval Leisure Group (Nasdaq: IILG) (“ILG”) today announced results for the three months and full year ended December 31, 2012.


  • ILG consolidated fourth quarter revenue increased by 11.2% from the same period last year, while full year revenue increased by 10.4%.
  • The Company generated fourth quarter diluted earnings per share of $0.27, up 68.8% from the prior year period. Full year adjusted diluted earnings per share were $0.91, an increase of 28.2% year-over-year.
  • Interval Network member count increased 2.4% over last year. Full year total transaction revenue was higher by 3.2% year-over-year.
  • Fourth quarter Management and Rental segment revenue increased by 47.8%. Full year Management and Rental revenue increased by 45.7%. Segment adjusted EBITDA rose by 87.6% year-over-year.
  • ILG declared its first regular quarterly dividend in March 2012. During 2012, ILG paid $28.4 million, or fifty cents per share in dividends, including the acceleration of first quarter 2013.
  • Free cash flow was $65.4 million for 2012.

“Interval Leisure Group has made significant progress in expanding its role in the shared ownership market. We are pleased with the more than 10% growth in consolidated revenue, as this is more than twice the top line growth we saw in 2011. Additionally, adjusted EBITDA increased by 4.1% for the full year,” said Craig M. Nash, Chairman, President and Chief Executive Officer of Interval Leisure Group. “We remain focused on deploying capital through strategic transactions as we continue to execute on our long-term strategy.”

Membership and Exchange

Membership and Exchange segment revenue for the three months and year ended December 31, 2012, was $81.0 millionand $357.7 million, respectively. For the full year 2012, Interval Network membership fee and transaction revenue were$130.8 million and $198.4 million, respectively, representing increases of 1.0% and 3.2%, respectively, over the prior year. Year-over-year, average revenue per member decreased to $41.30, or 1.8%, in the fourth quarter and was flat for the full year, primarily reflecting a shift in membership mix to include a greater percentage of corporate members.

At December 31, 2012, the Membership and Exchange segment had approximately two million members enrolled in its various membership programs. The Interval Network had approximately 1.82 million active members, an increase of 2.4% from December 31, 2011.

Membership and Exchange adjusted EBITDA was $30.7 million and $142.6 million in the fourth quarter and full year 2012, respectively, representing decreases of 1.8% and 0.4% from the segment’s adjusted EBITDA of $31.3 million and $143.2 million in the fourth quarter and full year 2011, respectively.

Throughout 2012, Interval renewed strategic agreements with key clients and affiliated 81 vacation ownership resorts in domestic and international markets. In 2012, over 73% of all new affiliations were located in non-US locations. Membership mix as of December 31, 2012 included 62% traditional and 38% corporate members, compared to 68% and 32%, respectively, as of December 31, 2011.

Management and Rental

Management and Rental segment revenue for the three months and year ended December 31, 2012, was $29.7 million and$115.6 million, respectively, including $13.8 million and $54.9 million of management fee and rental revenue (defined below).

Year-over-year, management fee and rental revenue grew by 67.8% for the fourth quarter and 69.4% for the year endedDecember 31, 2012. The improvement was primarily driven by the incremental revenue contribution from VRI for the ten months of 2012 subsequent to our acquisition and higher revenue per available room (“RevPAR”) at Aston. Aston RevPAR for the quarter ended December 31, 2012 was $125.58 compared to $111.82 for the same period in 2011, and for the year ended December 31, 2012 was $130.28 compared to $111.43 in 2011, resulting from both a higher average daily rate and improved occupancy rates.

Management and Rental segment adjusted EBITDA was $3.3 million in the fourth quarter of 2012, an increase of 53.3% from the prior year period. Management and Rental segment adjusted EBITDA for the full year 2012 was $14.6 million, an increase of 87.6% from adjusted EBITDA of $7.8 million for the same period in 2011.

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