Travel + Leisure Co.

Greetings, and welcome to the Travel and Leisure third quarter 2024 earnings call. At this time, all participants will be in listen-only mode. A question and answer session will follow the formal presentation. If anybody today should require operator assistance during the conference, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jill Greer with Investor Relations. Ms. Greer, you may now begin.

Thanks, Rob. Good morning to everyone, and thanks for joining our third quarter call. With us this morning are Michael Brown, our President and Chief Executive Officer, and Mike Hugg, our Chief Financial Officer. Michael will provide an overview of our financial results and our longer-term growth strategy, and Mike will then provide greater detail on the quarter, our balance sheet, and the outlook for the rest of the year. Following our prepared remarks, we'll open the call up for questions. We ask the analysts to keep to one question and a brief follow-up. Before we begin, we'd like to remind you that our discussions today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements, and the forward-looking statements made today are effective only as of today. We undertake no obligation to publicly update or revise those statements. The factors that could cause actual results to differ are discussed in our SEC filings and in our earnings press release. You can find a reconciliation of non-GAAP financial measures discussed on today's call in the earnings press release available on our industrial relations website. Finally, all comparisons today are to the same period of the prior year and less specifically stated. With that, I'm pleased to turn the call over to Michael.

Good morning, and thank you for joining us today for our Q3 earnings report. Before I share our results for the quarter, I'd like to recognize our associates for all their efforts through Hurricanes Helen and Milton and the wildfires in California. Safety is our top priority, and I want to personally extend my thanks to our associates for their professionalism and dedication in taking care of our owners and each other during these devastating events. Our third quarter results show that we are executing against our key priorities for the year and that demand for our products remains solid. We produced strong volume per guest, a healthy 24.4% adjusted EBITDA margin, and over $150 million of adjusted free cash flow. Our adjusted EBITDA of $242 million was above the midpoint of our guidance range. We see good momentum in our vacation ownership business, and we're especially pleased with our VPG performance, which remains consistently above 3,000, even during our peak new owner mix quarters. VPG was at the high end of our expectations, with especially strong performance from existing owners, further evidence that customers continue to value their ownership. We are nearly 30% above 2019 BPG levels, reflecting the premium owner's place on the consistency, value, and flexibility of our product. It is also a reflection of the increased FICO standards that we established in 2020. Our average FICO on originations has increased from 725 to 742 over the past four years. and the portion of our portfolio that is under 640 FICO has decreased in the same time frame. One of our priorities has been to grow our new owner mix to the mid-30s. New owner sales drive long-term benefit and provide a consistent source of future revenue potential. In the short term, however, a higher new owner mix puts pressure on BPGs. Having achieved a new owner mix above 35% in each quarter this year, we expect the mix pressure to be minimal going forward as we maintain our new owner mix in the mid to high 30s. New owners drive future gross VOI sales through upgrades of their initial purchase and typically spend an additional 2.6 times their purchase amount. This is in addition to revenues from financing, property management, and exchange fees. With an embedded revenue potential of over $19 billion over the next decade, our work to drive a higher new owner base gives us continued confidence in our long-term model. The momentum with BPG is a sign that our team is executing well on our growth initiatives and that our product appeals to our target market. Over the past several years, we have seen a number of trends in our owner base that bode well for future growth. First, the average age of our owners is now in their mid-50s, as an increasing amount of sales are to Gen X, millennials, and younger generations. This age has been steadily decreasing as our average new owner age is close to 50 years old. Second, our disciplined approach to tour generation has improved the underlying credit quality in our loan portfolio. We believe our combination of average origination FICO and sub-600 portfolio loans is the best in the industry. Finally, travel continues to be an integral part of the experience economy. While our top destinations are in Florida, we're also seeing growth in parks and other family-friendly locations like Washington, D.C., the Pacific Northwest, and the Smoky Mountains. Looking ahead, our vacation ownership business has a solid foundation for long-term growth. Our multi-brand strategy is unique in the industry and is the path to driving consistent growth going forward in the vacation ownership business. With a broad geographic footprint and a variety of ownership options, we expect to expand our share by meeting the vacation travel needs of a wide range of consumers. We have been very pleased with the progress on the Accor Vacation Club integration, which has allowed us to achieve our initial targets ahead of schedule. We have four sales sites reopened and fully staffed, with more sites expected by the end of the year. Accor has delivered more than $3 million in adjusted EBITDA year-to-date, and we expect Accor growth will accelerate next year. Turning to travel and membership. As you know, this part of our business is in the midst of a transformation. As the vacation ownership industry is consolidated and the points-based product has become more standard, we've seen pressure on exchange volumes. During the quarter, we took another step forward in our transformation with necessary steps to resize our footprint. Across the industry, developers are now fewer in number but larger in size. Going forward, we believe we can serve them with higher quality and better efficiency through a more targeted approach. Our focus on higher margin transactions is playing out, and we were pleased with the quarter's EBITDA, which was just above the high end of our guidance range. To summarize, the business is performing well, and our teams continue to raise the bar on execution. We have already begun setting our plans for 2025. We expect the momentum in our vacation ownership business to continue, having achieved our targeted new owner mix, the ramping up of a core sales, and easing of interest rate headwinds. We also expect further progress on our travel and membership transformation to allow that segment to stabilize. Longer term, we expect Sports Illustrated interest rates in our new owner pipeline to provide catalysts for our growth in 2026 and beyond. And now, I'll turn the call over to Mike to walk through the quarter in more detail. Mike?