MIAMI, Aug. 10, 2009 (GLOBE NEWSWIRE) -- Interval Leisure Group (Nasdaq:IILG) ("ILG") today announced results for the three months ended June 30, 2009.
SECOND QUARTER 2009 HIGHLIGHTS
* ILG generated diluted earnings per share of $0.15. * Consolidated adjusted EBITDA, in constant currency, increased 4.5% and excludes stand-alone and public company costs. * The Interval segment delivered revenue of $86.9 million, or $89.3 million in constant currency. Total transaction revenue, in constant currency, increased 3.2%. * Average revenue per member increased 4.4%, or 7.5% in constant currency. * Interval affiliated 19 resorts in 11 countries during the second quarter. * Free cash flow was $41.1 million for the first six months of 2009.
"ILG delivered adjusted EBITDA growth in the second quarter, driven primarily by the stability of the Interval segment and cost savings initiatives across our businesses," said Craig M. Nash, Chairman, President and Chief Executive Officer of Interval Leisure Group. "Interval member retention rates and transaction volumes for these three months are consistent with the second quarter of 2008. However, we continue to be concerned about the lack of credit available to resort developers which has led to a reduction in vacation ownership sales."
"Even in this climate, developers and members value Interval's services. In the second quarter, we affiliated 19 resorts in 11 countries. Additionally, in May we launched our ShortStay Exchange product as an enhancement to our Gold Membership and we are pleased with the initial results," continued Nash. "So while the current environment remains extremely challenging, we are successfully managing our business at a lower cost base while continuing to invest for future growth."
Financial Summary & Operating Metrics (in millions, except per share amounts and percentages)
Three Three Year
Months Months Over
Ended Ended Year
Metrics 6/30/09 6/30/08 Change
------------------------------------------------------------------------
Revenue $ 98.8 $103.2 (4.2%)
------------------------------------------------------------------------
Interval revenue 86.9 88.6 (2.0%)
------------------------------------------------------------------------
Aston revenue 11.9 14.5 (18.1%)
------------------------------------------------------------------------
Gross profit 68.3 69.4 (1.7%)
------------------------------------------------------------------------
Adjusted net income ** 9.9 19.5 (49.4%)
------------------------------------------------------------------------
Net income attributable to common stockholders 8.6 19.5 (55.9%)
------------------------------------------------------------------------
Adjusted diluted EPS** 0.17 0.35 (51.4%)
------------------------------------------------------------------------
Diluted earnings per share 0.15 0.35 (57.1%)
------------------------------------------------------------------------
Adjusted EBITDA** 38.2 36.9 3.4%
------------------------------------------------------------------------
EBITDA** 36.7 36.9 (0.7%)
------------------------------------------------------------------------
------------------------------------------------------------------------
As of As of
Balance Sheet Data 6/30/09 12/31/2008 Change
------------------------------------------------------------------------
Cash and cash equivalents $149.9 $120.3 24.7%
------------------------------------------------------------------------
Debt 410.7 427.2 (3.9%)
------------------------------------------------------------------------
**"Adjusted net income," "Adjusted diluted EPS," "Adjusted EBITDA" and
"EBITDA" are non-GAAP measures as defined by the Securities and Exchange
Commission (the "SEC"). Please see "Glossary of Terms," "Reconciliations
of Non-GAAP Measures" and "Presentation of Financial Information" below
for an explanation of non-GAAP measures used throughout this release.
Discussion of Results
Second Quarter 2009 Consolidated Operating Results
Consolidated revenue for the second quarter ended June 30, 2009 was $98.8 million, a decrease of 4.2% from $103.2 million for the second quarter of 2008. The decline in revenue reflects the impact of overall macroeconomic conditions that negatively affected the leisure travel industry, specifically the Aston business segment, and the unfavorable impact of foreign currency translations due to the strengthening of the U.S. dollar. In constant currency, consolidated revenue would have been $101.2 million. Consolidated revenue was comprised of 88% and 12% from Interval and Aston, respectively.
Net income for the three months ended June 30, 2009 was $8.6 million, a decrease of 55.9% from net income of $19.5 million for the same period of 2008. Net income for the period was impacted by $11.4 million of pre-tax incremental expenses resulting from the spin-off from IAC/InterActiveCorp on August 20, 2008. For the second quarter of 2009, these expenses included $2.0 million of non-cash compensation expense and stand-alone and public company costs and $9.4 million of interest expense. Diluted earnings per share were $0.15 compared to diluted earnings per share of $0.35 for the same period of 2008.
Adjusted net income for the three months ended June 30, 2009 was $9.9 million or $0.17 of adjusted diluted EPS. Adjusted net income and adjusted diluted EPS for the second quarter 2009 exclude $1.3 million of after-tax incremental non-cash compensation expense and stand-alone and public company costs.
Adjusted EBITDA was $38.2 million for the quarter ended June 30, 2009, compared to EBITDA of $36.9 million for the same period of 2008, representing an increase of 3.4%. Adjusted EBITDA excludes $1.5 million in incremental stand-alone and public company costs for the quarter. Excluding the unfavorable net effect of foreign currency translations of $0.4 million, adjusted EBITDA increased by $1.6 million, or 4.5% from the same period of 2008.
Business Segment Results
Interval
Interval's revenue for the three months ended June 30, 2009, was $86.9 million declining 2.0% over the comparable period in 2008. Excluding the effect of unfavorable foreign currency translations of $2.4 million, Interval segment revenue would have been $89.3 million, an increase of 0.8% in the three months ended June 30, 2009 compared to 2008.
For the second quarter of 2009, membership fee revenue was $33.1 million, a decrease of 2.8% from the same period of 2008. Transaction revenue for the second quarter of 2009 was $47.7 million, relatively flat when compared to the same period of 2008. The effects of unfavorable foreign currency translations on membership fee revenue and transaction revenue were $1.0 million and $1.4 million, respectively. For the quarter, excluding these effects, membership fee revenue would have been $34.1 million, relatively flat year-over-year, and transaction revenue would have been $49.1 million, an increase of 3.2% in the three months ended June 30, 2009 compared to 2008.
Total active members at June 30, 2009 were approximately 1.9 million, a decrease of 5.7% over total active members of approximately 2.0 million at June 30, 2008. The year-over-year decrease was primarily due to the non-renewal of the Disney affiliation.
Average revenue per member for the second quarter of 2009 increased to $43.95, an increase of 4.4% from the second quarter of 2008. The increase in average revenue per member was largely due to an increase in transaction revenue per member. In constant currency, average revenue per member would have been $45.22 in the second quarter.
Interval's adjusted EBITDA was $37.2 million in the second quarter representing an increase of 3.8% over the segment's EBITDA of $35.8 million in the second quarter 2008. In constant currency, adjusted EBITDA would have been $37.6 million, an increase of 4.9% compared to the 2008 period.
Aston
Aston's revenue for the three months ended June 30, 2009 was $11.9 million, a decrease of 18.1% from the comparable period of 2008. Aston revenue for the second quarter included $7.1 million of pass-through revenue (defined below).
The decrease in Aston revenue was primarily driven by a reduction in revenue per available room ("RevPAR"). RevPAR for the quarter ended June 30, 2009 was $83.85 compared to $109.95 for the same period in 2008, a decline of 23.7%. Lower occupancy, and to a lesser extent, lower average daily rate led to the reduction in RevPAR. Aston has been generally tracking the results of comparable properties in the Hawaiian market.
Aston reported adjusted EBITDA of $1.0 million in the second quarter of 2009, a decrease of 9.7% from EBITDA of $1.1 million in the prior year period.
Capital Resources and Liquidity
As of June 30, 2009, ILG's cash and cash equivalents totaled $149.9 million, compared to $120.3 million as of December 31, 2008. The Company's total debt outstanding, which was incurred in connection with the spin-off from IAC, was $410.7 million, net of unamortized bond discount, as of June 30, 2009. During the second quarter, the Company made a $10.0 million voluntary prepayment on its term loan. There was no debt outstanding as of June 30, 2008.
For the first six months of 2009, ILG's capital expenditures totaled $7.3 million, or 3.5% of revenue, net cash provided by operating activities was $48.4 million and free cash flow (defined below) was $41.1 million. Total interest paid during the six-month period was $18.1 million.
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, adjusted net income, adjusted 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 GAAP. In addition, 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 2009, with access via the Internet and telephone. Investors and analysts may participate in the live conference call by dialing (866) 322-1501 (toll-free domestic) or (706) 679-2585 (international); conference ID: 21158420 or password: Interval. 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 Web site at www.iilg.com. The replay can be accessed at (800) 642-1687 (toll-free domestic) or (706) 645-9291 (international); conference ID: 21158420. The webcast will be archived on ILG's Web site 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. Its principal business segment, Interval, has been serving the vacation ownership market for more than 33 years. Interval International is a membership-based organization that offers a comprehensive package of year-round benefits, including the opportunity to exchange the use of shared ownership vacation time for alternate accommodations. Today, Interval has a network of approximately 2,500 resorts in more than 75 countries, and offers its resort clients and about 2 million member families high-quality products and programs through offices in 26 cities in 16 countries.
ILG's other business segment is Aston, formerly ResortQuest Hawaii, which traces its roots in lodging back nearly 60 years. Aston provides hotel and resort management and vacation rental services to vacationers and property owners across Hawaii, with a portfolio of more than 4,500 units in properties throughout the islands.
ILG is headquartered in Miami, Florida, and has over 2,500 employees worldwide.
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; decreased demand from prospective purchasers of vacation interests; travel related health concerns, such as pandemics; changes in our senior management; regulatory changes; our ability to compete effectively; the effects of our significant indebtedness and our compliance with the terms thereof; adverse events or trends in key vacation destinations; 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 laws, 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)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenue $ 98,801 $103,184 $210,042 $219,121
Cost of sales 30,517 33,738 62,607 69,819
-------- -------- -------- --------
Gross profit 68,284 69,446 147,435 149,302
Selling and marketing expense 13,410 14,464 26,528 27,069
General and administrative
expense 20,453 19,767 41,878 39,342
Amortization expense of
intangibles 6,485 6,477 12,961 12,954
Depreciation expense 2,494 2,392 4,657 4,627
-------- -------- -------- --------
Operating income 25,442 26,346 61,411 65,310
Other income (expense):
Interest income 208 5,119 597 7,135
Interest expense (9,470) (53) (18,935) (113)
Other expense, net (2,240) (40) (830) (540)
-------- -------- -------- --------
Total other income (expense) (11,502) 5,026 (19,168) 6,482
-------- -------- -------- --------
Earnings before income taxes
and noncontrolling interest 13,940 31,372 42,243 71,792
Income tax provision (5,337) (11,881) (16,804) (27,485)
-------- -------- -------- --------
Net income 8,603 19,491 25,439 44,307
Net loss (income) attributable
to noncontrolling interest 1 1 (1) (7)
-------- -------- -------- --------
Net income attributable to
common stockholders $ 8,604 $ 19,492 $ 25,438 $ 44,300
======== ======== ======== ========
Earnings per share
attributable to common
stockholders(1):
Basic $ 0.15 $ 0.35 $ 0.45 $ 0.79
Diluted $ 0.15 $ 0.35 $ 0.45 $ 0.79
Weighted average number of
shares of common stock
outstanding(1):
Basic 56,359 56,179 56,345 56,179
Diluted 56,861 56,179 56,716 56,179
---------------------------------------------------------------------
Adjusted net income(2) $ 9,862 $ 27,782
Adjusted earnings per
share(2):
Basic $ 0.17 $ 0.49
Diluted $ 0.17 $ 0.49
(1) For the three and six months ended June 30, 2008, we computed
basic earnings per share using the number of shares of common
stock outstanding immediately following the spin-off, as if such
shares were outstanding for the entire period. The diluted earnings
per share for prior periods was computed based upon the dilutive
impact of all stock-based awards outstanding immediately following
the spin-off, as if such awards were outstanding for the entire
periods.
(2) "Adjusted net income" and "adjusted 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, 2009 Dec. 31, 2008
------------- -------------
(Unaudited)
ASSETS
Cash and cash equivalents $ 149,932 $ 120,277
Deferred membership costs 14,889 13,816
Other current assets 77,465 73,128
------------- -------------
Total current assets 242,286 207,221
Goodwill and intangible assets, net 632,192 644,880
Deferred membership costs 22,043 21,641
Other non-current assets 69,805 63,466
------------- -------------
TOTAL ASSETS $ 966,326 $ 937,208
============= =============
LIABILITIES AND EQUITY
LIABILITIES:
Accounts payable, trade $ 12,421 $ 11,789
Deferred revenue 105,044 95,565
Current portion of long-term debt 5,000 15,000
Other current liabilities 65,504 75,090
------------- -------------
Total current liabilities 187,969 197,444
Long-term debt, net of current portion 405,721 412,242
Deferred revenue 138,069 134,151
Other long-term liabilities 72,213 63,806
Redeemable noncontrolling interest 427 426
TOTAL STOCKHOLDERS' EQUITY 161,927 129,139
------------- -------------
TOTAL LIABILITIES AND EQUITY $ 966,326 $ 937,208
============= =============
INTERVAL LEISURE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
------------------------------
2009 2008
------------- -------------
(In thousands)
Cash flows from operating activities:
Net income $ 25,439 $ 44,307
Adjustments to reconcile net income
to net cash provided by operating
activities:
Amortization expense of intangibles 12,961 12,954
Amortization of debt issuance costs 1,401 --
Depreciation expense 4,657 4,627
Accretion of original issue discount 979 --
Non-cash compensation expense 4,196 3,093
Deferred income taxes 13,859 (459)
Changes in assets and liabilities (15,087) 10,468
------------- -------------
Net cash provided by operating
activities 48,405 74,990
Cash flows from investing activities:
Acquisitions, net of cash acquired -- 999
Changes in restricted cash 850 --
Transfers to IAC -- (61,937)
Capital expenditures (7,257) (5,617)
------------- -------------
Net cash used in investing activities (6,407) (66,555)
------------- -------------
Cash flows from financing activities
Principal payments on term loan (17,500) --
Proceeds from the exercise of
stock options 7 --
Release of deferred restricted
stock units, net of withholding
taxes (430) --
Vesting of restricted stock units,
net of withholding taxes (85) --
------------- -------------
Net cash used in financing activities (18,008) --
------------- -------------
Effect of exchange rate changes on
cash and cash equivalents 5,665 660
------------- -------------
Net increase in cash and cash
equivalents 29,655 9,095
Cash and cash equivalents at
beginning of period 120,277 67,113
------------- -------------
Cash and cash equivalents at end of
period $ 149,932 $ 76,208
============= =============
Supplemental disclosures of cash
flow information:
Cash paid during the period for:
Interest $ 18,068 $ --
Income taxes, net of refunds,
including amounts paid in 2008 to
IAC for ILG's share of IAC's
consolidated tax liability $ 20,026 $ 25,990
Operating Statistics
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
2009 % Change 2008 2009 % Change 2008
-------- -------- -------- -------- -------- --------
Interval
Total
active
members
(000's) 1,881 (5.7%) 1,995 1,881 (5.7%) 1,995
Average
revenue
per
member $ 43.95 4.4% $ 42.08 $ 93.13 4.8% $ 88.85
Aston
Available
room
nights
(000's) 394 (2.0%) 402 767 (3.9%) 798
RevPAR $ 83.85 (23.7%) $ 109.95 $ 97.41 (24.4%) $ 128.78
Additional Data
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ----------------------------
2009 % Change 2008 2009 % Change 2008
-------- -------- -------- -------- -------- --------
(Dollars in thousands) (Dollars in thousands)
Interval
Trans-
action
revenue $ 47,667 0.3% $ 47,522 $106,312 1.2% $105,070
Member-
ship fee
revenue 33,100 (2.8%) 34,058 66,121 (0.7%) 66,555
Ancillary
member
revenue 2,134 2.5% 2,081 4,320 2.5% 4,216
-------- -------- -------- -------- -------- --------
Total
member
revenue 82,901 (0.9%) 83,661 176,753 0.5% 175,841
Other
revenue 3,996 (19.8%) 4,985 7,466 (22.5%) 9,639
-------- -------- -------- -------- -------- --------
Total
reve-
nue $ 86,897 (2.0%) $ 88,646 $184,219 (0.7%) $185,480
========= ======== ======== ======== ======== ========
Aston
Pass-
through
revenue $ 7,065 (17.1%) $ 8,521 $ 14,506 (19.8%) $ 18,083
Manage-
ment
fee
revenue 4,839 (19.6%) 6,017 11,317 (27.3%) 15,558
-------- -------- -------- -------- -------- --------
Total
revenue $ 11,904 (18.1%) $ 14,538 $ 25,823 (23.2%) $ 33,641
========= ======== ======== ======== ======== ========
Aston
gross
margin 23.3% 5.4% 22.1% 26.7% (6.3%) 28.5%
Aston
gross
margin
without
pass-
through 57.4% 7.3% 53.5% 60.9% (1.3%) 61.7%
Reconciliations of Non-GAAP Measures
Six Months Ended June 30,
-------------------------------------
2009 % Change 2008
----------- ----------- -----------
(Dollars in thousands)
Net cash provided by operating
activities $ 48,405 (35.5%) $ 74,990
Less: Capital expenditures (7,257) 29.2% (5,617)
----------- ----------- -----------
Free cash flow $ 41,148 (40.7%) $ 69,373
=========== =========== ===========
Three Months Six Months
Ended Ended
June 30, June 30,
2009 2009
----------- -----------
(Dollars in thousands,
except per share data)
Net income attributable to
common stockholders $ 8,604 $ 25,438
Incremental non-cash
compensation expense, net of
tax 341 664
Incremental stand-alone and
public company costs, net of
tax 917 1,680
----------- -----------
Adjusted net income $ 9,862 $ 27,782
=========== ===========
Adjusted earnings per share:
Basic $ 0.17 $ 0.49
Diluted $ 0.17 $ 0.49
Three Months Ended June 30,
----------------------------------------------------------
2009 2008
---------------------------- ----------------------------
Consoli- Consoli-
Interval Aston dated Interval Aston dated
-------- -------- -------- -------- -------- --------
(Dollars in thousands)
Adjusted
EBITDA $ 37,156 $ 1,003 $ 38,159
Incremental
stand-
alone and
public
company
costs 1,520 (33) 1,487
-------- -------- --------
EBITDA 35,636 1,036 36,672 $ 35,802 $ 1,111 $ 36,913
Amortiza-
tion
expense
of
intangi-
bles 5,249 1,236 6,485 5,241 1,236 6,477
Deprecia-
tion
expense 2,293 201 2,494 2,221 171 2,392
Non-cash
compen-
sation
expense 2,128 123 2,251 1,623 75 1,698
-------- -------- -------- -------- -------- --------
Operating
income
(loss) $ 25,966 $ (524) 25,442 $ 26,717 $ (371) 26,346
======== ======== ======== ========
Interest
income 208 5,119
Interest
expense (9,470) (53)
Other
non-ope-
rating
expense (2,240) (40)
Income
tax
provision (5,337) (11,881)
-------- --------
Net income 8,603 19,491
Net loss
attribu-
table to
non-
controlling
interest 1 1
-------- --------
Net income
attributable
to common
stockholders $ 8,604 $ 19,492
======== ========
Six Months Ended June 30,
----------------------------------------------------------
2009 2008
---------------------------- ----------------------------
Consoli- Consoli-
Interval Aston dated Interval Aston dated
-------- -------- -------- -------- -------- --------
(Dollars in thousands)
Adjusted
EBITDA $ 82,788 $ 3,228 $ 86,016
Incremental
stand-
alone and
public
company
costs 2,896 (105) 2,791
-------- -------- --------
EBITDA 79,892 3,333 83,225 $ 80,777 $ 5,207 $ 85,984
Amortiza-
tion
expense
of
intangi-
bles 10,489 2,472 12,961 10,482 2,472 12,954
Deprecia-
tion
expense 4,251 406 4,657 4,285 342 4,627
Non-cash
compen-
sation
expense 3,955 241 4,196 2,943 150 3,093
-------- -------- -------- -------- -------- --------
Operating
income $ 61,197 $ 214 61,411 $ 63,067 $ 2,243 65,310
======== ======== ======== ========
Interest
income 597 7,135
Interest
expense (18,935) (113)
Other non-
operating
expense (830) (540)
Income
tax
provision (16,804) (27,485)
-------- --------
Net income 25,439 44,307
Net income
attribu-
table to
non-
controlling
interest (1) (7)
-------- --------
Net income
attributable
to common
stockholders $ 25,438 $ 44,300
======== ========
Glossary of Terms
Adjusted Diluted EPS -- Adjusted Net Income divided by the weighted average number of shares of common stock and dilutive securities outstanding during the period.
Adjusted EBITDA -- Net income, excluding, if applicable (1) non-cash compensation expense, (2) depreciation expense, (3) amortization expense, (4) goodwill and asset impairments, (5) income taxes, (6) interest income and interest expense and (7) other non-operating income and expense and (8) stand-alone and public company expense. The Company's presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
Adjusted Net Income -- Net income attributable to common stockholders, excluding incremental non-cash compensation expense and incremental stand-alone and public company costs, all net of tax.
Ancillary Member Revenue -- Other member related revenue including insurance and travel related services.
Available Room Nights -- Number of nights available at Aston-managed vacation properties during the period.
Average Revenue per Member -- Membership fee revenue, transaction revenue and ancillary member revenue for the applicable period, divided by the monthly weighted average number of active members during the applicable period.
Constant Currency -- Represents comparison eliminating the effects of foreign currency translation between periods.
EBITDA -- Net income, excluding, if applicable (1) non-cash compensation expense, (2) depreciation expense, (3) amortization expense, (4) goodwill and asset impairments, (5) income taxes, (6) interest income and interest expense and (7) other non-operating income and expense. The Company's presentation of EBITDA may not be comparable to similarly-titled measures used by other companies.
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.
Pass-through Revenue -- Represents the compensation and other employee-related costs directly associated with Aston's management of the properties that are included in both revenue and cost of sales and that are passed on to the property owners 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.
Total Active Members -- Active members of Interval's primary exchange 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 -- Transactional and service fees paid primarily for exchanges, Getaways, and reservation servicing.