Interval Leisure Group, Inc. (NASDAQ:ILG) Q4 2014 Earnings Conference Call - Final Transcript

Feb 26, 2015 • 04:30 pm ET


Interval Leisure Group, Inc. (NASDAQ:ILG) Q4 2014 Earnings Conference Call - Final Transcript


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Good afternoon. At this time, I would like to welcome everyone to the Interval Leisure Group Earnings Conference Call. Please be advised that this call is being recorded on February 26, 2015. [Operator Instructions]

I would now like to turn the call over to Ms. Jennifer Klein, Investor Relations for Interval Leisure Group. Ma'am please begin your conference.

Jennifer Klein

Thank you, operator. Welcome to the Interval Leisure Group fourth quarter and full-year 2014 earnings conference call.

I want to remind you that on our call today, we will discuss our outlook for future performance. These forward-looking statements typically are preceded by words such as we expect, we believe, we anticipate or similar statements. These forward-looking statements are subject to risks and uncertainties and our actual results can differ materially from the views expressed today. Some of these risks have been set forth in our fourth quarter and full-year 2014 press release issued earlier today and in our 2014 Form 10-K and other periodic reports filed with the SEC.

We will also discuss certain non-GAAP measures. I refer you to our press release posted on our website,, for all comparable GAAP measures and full reconciliations.

And now, I'd like to turn the call over to Craig Nash, our Chairman, President and Chief Executive Officer. Craig?

Craig Nash

Thanks, Jennifer. Welcome to everyone participating on our call today. ILG completed the year with significant forward momentum. With record consolidated revenue of over $614 million and adjusted EBITDA of more than $175 million, I'm eager to share with you results for our fourth quarter and full year 2014. By the close of last year, ILG successfully set the foundation of many of our strategic goals through acquisitions, joint ventures and organic programs. Our course of action has diversified our consolidated business concordant with an evolving market. Today, we are a leading provider of nontraditional lodging with a portfolio of businesses, including membership, exchange, vacation rental, vacation ownership management, sales and financing.

During 2014, Interval International renewed four substantial corporate developers under long-term contracts. We also brought on several important new affiliations that will produce new members for the Interval network. There was considerable affiliation activity in Latin America and positive developments in other parts of the world, including Asia, the Caribbean and the United States.

Major affiliations in 2014 included Anantara Vacation Club with six resorts in Thailand, Indonesia, New Zealand and China. Over the next five years, the club intends to add up to 10 additional resorts. In the Caribbean, we affiliated the well-established Divi Resorts Group, which includes nine resorts and an owner base of 30,000. And as we mentioned on our last earnings call, we are proud to have 10 Palace Resorts join the network. Palace is one of the largest all-inclusive developers in the Mexican Caribbean region. In total, the Interval network affiliated 77 resorts in 23 countries during 2014.

While our team furthered relationships with new and well-established global developers, the traditional exchange and membership business model is expected to see