Exhibit 99.1
Wyndham Worldwide Reports Strong Second Quarter 2007 Results
| | • | | Double-Digit Top- and Bottom-Line Growth; Robust Performance Across All Three Businesses |
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| | • | | Vacation Ownership Continues to Set Records With Sales Up 21% |
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| | • | | Board of Directors Declares First Quarterly Dividend |
PARSIPPANY, N.J. (August 1, 2007)— Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months ended June 30, 2007.
Financial information discussed in this press release include both GAAP and non-GAAP measures, which include or exclude certain items, or reflect pro forma adjustments, related to the Company’s spin-off effective July 31, 2006. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. Non-GAAP measures are indicated as “Adjusted.” A complete reconciliation of reported GAAP results to the comparable Adjusted information appears in the financial tables section of this press release.
SECOND QUARTER 2007 HIGHLIGHTS(as compared to second quarter 2006):
| | • | | Revenues increased to over $1.1 billion, up 15%, with strong, organic growth across all businesses: Lodging, Vacation Exchange and Rentals, and Vacation Ownership |
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| | • | | Net income for the second quarter of 2007 increased 28% to $96 million, or $0.52 per diluted share, compared to second quarter 2006 net income of $75 million, or $0.37 per diluted share |
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| | • | | Vacation Ownership gross sales and revenues each surged 21% |
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| | • | | Vacation Ownership tours increased 11% and volume per guest increased 12% |
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| | • | | Comparable revenue per available room (RevPAR) increased 5.1% and system-wide RevPAR increased 3.7% |
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| | • | | Hotel pipeline was over 100,000 rooms as of June 30, 2007 |
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| | • | | Average number of vacation exchange members increased 5% |
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| | • | | Vacation rental transactions increased 5% and average net price per vacation rental increased 11% |
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| | • | | The Board of Directors declared a dividend of $0.04 per share payable September 4, 2007 to shareholders of record as of August 13, 2007. |
“In the one year since our spin-off, we have continued to drive strong results in all three of our businesses,” said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. “Leading the way again this quarter was our Vacation Ownership business, where performance continues to be phenomenal.
We continued to invest in and build momentum behind the Wyndham brand by re-flagging well-known hotels including locations in London and Puerto Rico, launching Wingate by Wyndham, and flying
new Wyndham banners over some of our great vacation ownership resorts. Additionally, operating statistics for our Vacation Exchange and Rentals business (Group RCI) showed continued strength in the quarter.”
SECOND QUARTER 2007 OPERATING RESULTS
Revenues for the second quarter of 2007 were $1.1 billion, up 15% over the same period in 2006, reflecting strong organic growth across the businesses.
Net income for the second quarter of 2007 was $96 million or $0.52 diluted earnings per share, compared to $75 million or $0.37 diluted earnings per share for the second quarter of 2006.
Net income for the second quarter of 2007 includes $4 million after-tax of separation and related costs associated with Wyndham Worldwide’s spin-off from Cendant Corporation (now Avis Budget Group) and $11 million of an after-tax net benefit from the resolution of and adjustment to certain legacy items. Excluding these items, Adjusted net income for the second quarter of 2007 was $89 million, or $0.49 diluted earnings per share.
Second quarter of 2006 includes $3 million after-tax of separation and related costs and excludes $16 million after-tax of estimated incremental stand-alone costs (assuming Wyndham Worldwide had been a stand-alone, public company). Assuming these items, Adjusted net income for the second quarter of 2006 was $62 million, or $0.31 diluted earnings per share.
Second quarter of 2006 also includes $32 million ($22 million, after-tax) of expenses related to an accrual for local foreign taxes at our European vacation rental operations.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues increased 6% to $186 million in the second quarter of 2007 compared with the second quarter of 2006, primarily reflecting RevPAR gains.
Comparable RevPAR increased 5.1% in the second quarter of 2007 and system-wide RevPAR increased 3.7% from the prior year period.
The Wyndham brand comparison was affected by the expected attrition of certain properties. Excluding these properties, the majority of which have left the system, RevPAR for the Wyndham Hotels and Resorts brand was up 9.9%.
Lodging EBITDA grew 11% to $59 million compared to the second quarter of 2006, reflecting strong fundamentals and timing of marketing spend.
As of June 30, 2007, the Company’s hotel system consisted of 541,700 rooms and 6,460 properties with a development pipeline of over 100,000 rooms and approximately 900 hotels, of which 46% were new construction and 25% were international.
Vacation Exchange and Rentals (Group RCI)
Revenues increased 10% to $288 million in the second quarter of 2007 compared with the second quarter of 2006, reflecting continued momentum in both vacation exchange and vacation rentals as well as favorable currency translations.
Vacation exchange revenues were $116 million, a 7% increase compared to the second quarter of 2006. The average number of members increased 5% and annual dues and exchange revenue per member increased 2% from the second quarter of 2006.
Vacation rentals revenues were $136 million, a 17% increase compared to the second quarter of 2006, reflecting a 5% increase in vacation rental transactions and an 11% increase in the average net price per rental. Bookings and arrivals at Novasol and Landal GreenParks were strong as a result of enhanced marketing programs, supporting an expansion strategy to provide consumers with broader inventories and more destinations, as well as improved local economies.
Other ancillary revenues generated primarily from additional products and services provided to affiliates and members were $36 million in the second quarter of 2007, relatively flat to last year.
Second quarter of 2007 EBITDA was $49 million compared to second quarter of 2006 EBITDA of $32 million, which included a $21 million charge related to an accrual for local foreign taxes at our European vacation rental operations and $1 million of separation and related costs. Second quarter 2007 EBITDA included higher cost of sales on increased rentals and incremental expenses in operational infrastructures, including technology and call center costs to support higher volumes, as well as a reduction in results of $6 million related to certain Asia Pacific consulting relationships.
Compared to the second quarter of 2006, currency translations increased revenues by $10 million, principally rental related, and increased expenses by $9 million, resulting in a $1 million lift to EBITDA.
Vacation Ownership (Wyndham Vacation Ownership)
Revenues increased 21% to $629 million in the second quarter of 2007 compared with the second quarter of 2006 reflecting continued success in marketing and sales.
Gross Vacation Ownership Interest sales were $523 million for the second quarter of 2007, up 21% compared to the second quarter of 2006, driven by marketing efforts resulting in an 11% growth in tour flow and a 12% increase in volume per guest from strong performance by our sales force and continued strength in transaction pricing.
Consumer finance revenues increased 26% for the second quarter of 2007 compared to the second quarter of 2006 reflecting continued Vacation Ownership sales growth.
EBITDA for the second quarter of 2007 was $100 million. Excluding separation and related costs of $5 million, Adjusted EBITDA for the second quarter of 2007 was $105 million, increasing 22% from the second quarter of 2006, excluding $2 million from separation and related costs during that period. This EBITDA growth is consistent with the growth in Vacation Ownership sales.
As previously announced, the Company successfully completed a $600 million vacation ownership receivables securitization during the second quarter of 2007.
Other Items
Interest expense for the second quarter of 2007 was $18 million, a decrease of $5 million from the second quarter of 2006. This decrease is primarily due to interest related to a foreign tax accrual of $11 million in the second quarter of 2006, partially offset by higher rates and higher average borrowings due to differences in the Company’s capital structure since the spin-off. Interest income for the quarter was $2 million compared to $12 million in 2006, principally due to differences in the Company’s capital structure since the spin-off. Depreciation and amortization rose $5 million to $41 million.
Balance Sheet Information as of June 30, 2007:
| | • | | Cash and cash equivalents of approximately $250 million compared to approximately $270 million at December 31, 2006 |
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| | • | | Vacation ownership and other inventory of approximately $1.1 billion compared to approximately $955 million at December 31, 2006 |
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| | • | | Vacation ownership contract receivables, net, of $2.6 billion compared to $2.4 billion at December 31, 2006 |
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| | • | | Securitized vacation ownership debt of $1.8 billion compared to $1.5 billion at December 31, 2006 |
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| | • | | Other debt of $1.6 billion, compared to $1.4 billion at December 31, 2006 |
A schedule of debt is included in the financial tables section of this press release.
Share Repurchase
The Company repurchased 6.5 million shares of stock during the second quarter of 2007 at an average price of $36.10. The Company has substantially completed its program announced February 13, 2007, repurchasing a total of 11.7 million shares at an average price of $35.26.
Dividend
The Board of Directors declared a dividend of $0.04 per share payable September 4, 2007 to shareholders of record as of August 13, 2007.
Outlook and Guidance Increase
Wyndham Worldwide updates full year 2007 guidance as follows:
| | • | | Revenues of $4,340 – $4,480 million |
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| | • | | Adjusted EBITDA of $845 – $860 million, excluding separation and related costs of $10 – $20 million ($6 – $12 million, after-tax), as well as legacy matters |
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| | • | | Full year depreciation and amortization expense of $160 – $170 million |
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| | • | | Interest expense of $65 – $75 million |
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| | • | | Effective tax rate of 38%, excluding separation and related costs, as well as legacy matters |
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| | • | | Adjusted net income of $372 – $392 million, excluding separation and related costs, as well as legacy matters |
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| | • | | Full year Adjusted EPS of $2.02 – $2.13, excluding separation and related costs, as well as legacy matters, based on weighted average shares of approximately 184 million |
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| | • | | Third quarter Adjusted EPS of $0.70 – $0.73, excluding separation and related costs, as well as legacy matters, based on weighted average shares of approximately 184 million |
“I am extremely proud of our results and accomplishments this year, which reflect the talent, dedication, and enthusiasm of our employees around the world. Their efforts have fostered an industry leading brand portfolio and built valued relationships with franchisees and developers. We offer the right products, brands and geographic distribution to capture the strength in worldwide leisure travel and deliver value to consumers around the globe. We look forward to continued success,” concluded Holmes.
Conference Call Information
Wyndham Worldwide Corporation will provide a webcast of its conference call to discuss the Company’s second quarter 2007 financial results on Wednesday, August 1 at 9 a.m. EDT. Listeners may access the webcast live through the Company’s Web site at www.wyndhamworldwide.com/investors/. An archive of this webcast will be available at the Web site for approximately 90 days beginning at noon EST on August 1. The conference call also may be accessed by dialing (517) 308-9108 and providing the pass code
“Wyndham.” Listeners are urged to call at least 10 minutes prior to the scheduled start time. A telephone replay will be available at (402) 220-3502 beginning at noon EDT on August 1 until 4 p.m. EST on August 6.
About Wyndham Worldwide
As one of the world’s largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses almost 6,500 franchised hotels and almost 542,000 hotel rooms worldwide. Group RCI offers its more than 3.4 million members access to over 60,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of approximately 140 vacation ownership resorts serving over 800,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs more than 30,000 employees globally.
For more information about Wyndham Worldwide, please visit the Company’s web site at www.wyndhamworldwide.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, conveying management’s expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to trends for the Company’s revenues, earnings and related financial and operating measures, the number of hotels and resorts the Company intends to add in future periods, debt levels, share repurchases and dividends.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward looking statements include general economic conditions, the economic environment for the hospitality industry, the impact of war and terrorist activity, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those in the Company’s Annual Report on Form 10-K, filed with the SEC on March 7, 2007. Except for the Company’s ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.
It is not practical to provide a reconciliation of forecasted Adjusted EBITDA for the full year 2007 to the most directly comparable GAAP measure, net income, because certain items cannot be reasonably estimated or predicted at this time. Any of those items could be significant to our financial results.
# # #
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Investor contact: | | Press contact: |
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| Margo C. Happer | | Betsy O’Rourke |
| Senior Vice President, Investor Relations | | Senior Vice President, Marketing and Communications |
| Wyndham Worldwide Corporation | | Wyndham Worldwide Corporation |
| (973) 753-6472 | | (973) 753-7422 |
Margo.Happer@wyndhamworldwide.com | | Betsy.O’Rourke@wyndhamworldwide.com |
Table 1
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and “EBITDA,” which is defined as net income before depreciation and amortization, interest expense (excluding interest on securitized vacation ownership debt), income taxes and cumulative effect of accounting change, net of tax, each of which is presented on the Company’s Consolidated and Combined Statements of Income. The Company’s presentation of EBITDA may not be comparable to similarly-titled measures used by other companies.
The following tables summarize net revenues and EBITDA for reportable segments, as well as reconcile EBITDA to net income for the three and six months ended June 30, 2007 and 2006:
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | |
| | | 2007 | | | 2006 | |
| | | Net Revenues | | | EBITDA(c) | | | Net Revenues | | | EBITDA(c) | |
| Lodging | | $ | 186 | | | $ | 59 | | | $ | 176 | | | $ | 53 | |
| Vacation Exchange and Rentals | | | 288 | | | | 49 | | | | 261 | | | | 32 | |
| Vacation Ownership | | | 629 | | | | 100 | | | | 518 | | | | 84 | |
| | | | | | | | | | | | | |
| Total Reportable Segments | | | 1,103 | | | | 208 | | | | 955 | | | | 169 | |
Corporate and Other(a) (b) | | | (3 | ) | | | 3 | | | | — | | | | (3 | ) |
| | | | | | | | | | | | | |
| Total Company | | $ | 1,100 | | | $ | 211 | | | $ | 955 | | | $ | 166 | |
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Reconciliation of EBITDA to Net Income | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| EBITDA | | | | | | $ | 211 | | | | | | | $ | 166 | |
| Depreciation and amortization | | | | | | | 41 | | | | | | | | 36 | |
| Interest expense | | | | | | | 18 | | | | | | | | 23 | |
| Interest income | | | | | | | (2 | ) | | | | | | | (12 | ) |
| | | | | | | | | | | | | | | |
| Income before income taxes | | | | | | | 154 | | | | | | | | 119 | |
| Provision for income taxes | | | | | | | 58 | | | | | | | | 44 | |
| | | | | | | | | | | | | | | |
| Net income | | | | | | $ | 96 | | | | | | | $ | 75 | |
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| | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, | |
| | | 2007 | | | 2006 | |
| | | Net Revenues | | | EBITDA(d) | | | Net Revenues | | | EBITDA(d) | |
| Lodging | | $ | 338 | | | $ | 104 | | | $ | 320 | | | $ | 94 | |
| Vacation Exchange and Rentals | | | 601 | | | | 134 | | | | 543 | | | | 109 | |
| Vacation Ownership | | | 1,178 | | | | 162 | | | | 963 | | | | 148 | |
| | | | | | | | | | | | | |
| Total Reportable Segments | | | 2,117 | | | | 400 | | | | 1,826 | | | | 351 | |
Corporate and Other(a) (b) | | | (5 | ) | | | 2 | | | | (1 | ) | | | (3 | ) |
| | | | | | | | | | | | | |
| Total Company | | $ | 2,112 | | | $ | 402 | | | $ | 1,825 | | | $ | 348 | |
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Reconciliation of EBITDA to Net Income | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| EBITDA | | | | | | $ | 402 | | | | | | | $ | 348 | |
| Depreciation and amortization | | | | | | | 79 | | | | | | | | 70 | |
| Interest expense | | | | | | | 35 | | | | | | | | 33 | |
| Interest income | | | | | | | (5 | ) | | | | | | | (24 | ) |
| | | | | | | | | | | | | | | |
| Income before income taxes | | | | | | | 293 | | | | | | | | 269 | |
| Provision for income taxes | | | | | | | 111 | | | | | | | | 101 | |
| | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | | | | | | 182 | | | | | | | | 168 | |
| Cumulative effect of accounting change, net of tax | | | | | | | — | | | | | | | | (65 | ) |
| | | | | | | | | | | | | |
| Net income | | | | | | $ | 182 | | | | | | | $ | 103 | |
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| (a) | | Includes the elimination of transactions between segments; excludes incremental stand alone company costs during the three and six months ended June 30, 2006. |
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| (b) | | Includes $17 million and $30 million of a net benefit related to the resolution of and adjustment to certain contingent liabilities and assets during the three and six months ended June 30, 2007, respectively. |
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| (c) | | Includes separation and related costs of $5 million and $2 million for Vacation Ownership and Corporate and Other, respectively, during the three months ended June 30, 2007 and $1 million, $2 million and $2 million for Vacation Exchange and Rentals, Vacation Ownership and Corporate and Other, respectively, during the three months ended June 30, 2006. |
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| (d) | | Includes separation and related costs of $8 million and $5 million for Vacation Ownership and Corporate and Other, respectively, during the six months ended June 30, 2007 and $2 million, $2 million and $4 million for Vacation Exchange and Rentals, Vacation Ownership and Corporate and Other, respectively, during the six months ended June 30, 2006. |
Table 2
Wyndham Worldwide Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Net revenues | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 443 | | | $ | 377 | | | $ | 816 | | | $ | 685 | |
| Service fees and membership | | | 387 | | | | 341 | | | | 790 | | | | 696 | |
| Franchise fees | | | 137 | | | | 134 | | | | 251 | | | | 243 | |
| Consumer financing | | | 88 | | | | 70 | | | | 169 | | | | 135 | |
| Other | | | 45 | | | | 33 | | | | 86 | | | | 66 | |
| | | | | | | | | | | | | |
| Net revenues | | | 1,100 | | | | 955 | | | | 2,112 | | | | 1,825 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Operating | | | 447 | | | | 369 | | | | 853 | | | | 700 | |
| Cost of vacation ownership interests | | | 104 | | | | 80 | | | | 195 | | | | 147 | |
| Marketing and reservation | | | 207 | | | | 194 | | | | 404 | | | | 368 | |
General and administrative(a) | | | 124 | | | | 141 | | | | 245 | | | | 254 | |
Separation and related costs(b) | | | 7 | | | | 5 | | | | 13 | | | | 8 | |
| Depreciation and amortization | | | 41 | | | | 36 | | | | 79 | | | | 70 | |
| | | | | | | | | | | | | |
| Total expenses | | | 930 | | | | 825 | | | | 1,789 | | | | 1,547 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Operating income | | | 170 | | | | 130 | | | | 323 | | | | 278 | |
| Interest expense | | | 18 | | | | 23 | | | | 35 | | | | 33 | |
| Interest income | | | (2 | ) | | | (12 | ) | | | (5 | ) | | | (24 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before income taxes | | | 154 | | | | 119 | | | | 293 | | | | 269 | |
| Provision for income taxes | | | 58 | | | | 44 | | | | 111 | | | | 101 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before cumulative effect of accounting change | | | 96 | | | | 75 | | | | 182 | | | | 168 | |
Cumulative effect of accounting change, net of tax(c) | | | — | | | | — | | | | — | | | | (65 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 96 | | | $ | 75 | | | $ | 182 | | | $ | 103 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings per share(d) | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 0.53 | | | $ | 0.37 | | | $ | 0.98 | | | $ | 0.84 | |
| Cumulative effect of accounting change, net of tax | | | — | | | | — | | | | — | | | | (0.32 | ) |
| | | | | | | | | | | | | |
| Net income | | $ | 0.53 | | | $ | 0.37 | | | $ | 0.98 | | | $ | 0.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 0.52 | | | $ | 0.37 | | | $ | 0.98 | | | $ | 0.84 | |
| Cumulative effect of accounting change, net of tax | | | — | | | | — | | | | — | | | | (0.32 | ) |
| | | | | | | | | | | | | |
| Net income | | $ | 0.52 | | | $ | 0.37 | | | $ | 0.98 | | | $ | 0.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 181 | | | | 200 | | | | 185 | | | | 200 | |
| Diluted | | | 183 | | | | 200 | | | | 186 | | | | 200 | |
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| (a) | | Includes $17 million and $30 million of a net benefit related to the resolution of and adjustment to certain contingent liabilities and assets during the three and six months ended June 30, 2007, respectively. |
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| (b) | | Represents costs that the Company incurred in connection with the execution of its separation from its former parent, Cendant (now Avis Budget Group, Inc.). Such amounts, net of tax, were $4 million and $3 million during the three months ended June 30, 2007 and 2006, respectively, and $8 million and $4 million during the six months ended June 30, 2007 and 2006, respectively. |
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| (c) | | Represents non-cash charges to reflect the cumulative effect of adopting Statement of Financial Accounting Standards No. 152, “Accounting for Real Estate Time-Sharing Transactions,” on January 1, 2006. |
| |
| (d) | | Amounts may not foot down due to rounding. |
Table 3
(1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year | | Q1 | | Q2 | | Q3 | | Q4 | | Full Year |
Lodging(a) | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted Average Rooms Available | | | 2007 | | | | 529,700 | | | | 530,700 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | | 520,600 | | | | 531,000 | | | | 529,200 | | | | 529,900 | | | | 527,700 | |
| | | | 2005 | | | | 517,400 | | | | 512,000 | | | | 511,500 | | | | 535,100 | | | | 519,000 | |
| | | | 2004 | | | | 512,000 | | | | 510,700 | | | | 507,300 | | | | 503,000 | | | | 508,200 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Properties (b) | | | 2007 | | | | 6,450 | | | | 6,460 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | | 6,300 | | | | 6,440 | | | | 6,420 | | | | 6,470 | | | | N/A | |
| | | | 2005 | | | | 6,400 | | | | 6,380 | | | | 6,350 | | | | 6,350 | | | | N/A | |
| | | | 2004 | | | | 6,380 | | | | 6,390 | | | | 6,350 | | | | 6,400 | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| RevPAR | | | 2007 | | | $ | 31.35 | | | $ | 38.35 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | $ | 30.45 | | | $ | 36.97 | | | $ | 40.82 | | | $ | 31.41 | | | $ | 34.95 | |
| | | | 2005 | | | $ | 25.53 | | | $ | 31.91 | | | $ | 36.86 | | | $ | 29.72 | | | $ | 31.00 | |
| | | | 2004 | | | $ | 22.50 | | | $ | 29.08 | | | $ | 34.04 | | | $ | 24.53 | | | $ | 27.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Royalty, Marketing and Reservation Revenue (in 000s) | | | 2007 | | | $ | 105,426 | | | $ | 129,453 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | $ | 102,741 | | | $ | 125,409 | | | $ | 138,383 | | | $ | 104,505 | | | $ | 471,039 | |
| | | | 2005 | | | $ | 84,704 | | | $ | 104,281 | | | $ | 119,829 | | | $ | 99,804 | | | $ | 408,620 | |
| | | | 2004 | | | $ | 77,830 | | | $ | 97,959 | | | $ | 112,765 | | | $ | 82,502 | | | $ | 371,058 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Vacation Exchange and Rentals | | | | | | | | | | | | | | | | | | | | | | | | |
| Average Number of Members (in 000s) | | | 2007 | | | | 3,474 | | | | 3,506 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | | 3,292 | | | | 3,327 | | | | 3,374 | | | | 3,429 | | | | 3,356 | |
| | | | 2005 | | | | 3,148 | | | | 3,185 | | | | 3,233 | | | | 3,271 | | | | 3,209 | |
| | | | 2004 | | | | 2,995 | | | | 3,031 | | | | 3,074 | | | | 3,116 | | | | 3,054 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Annual Dues and Exchange Revenue Per Member | | | 2007 | | | $ | 155.60 | | | $ | 132.33 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | $ | 152.10 | | | $ | 130.37 | | | $ | 132.31 | | | $ | 128.13 | | | $ | 135.62 | |
| | | | 2005 | | | $ | 159.12 | | | $ | 134.98 | | | $ | 125.64 | | | $ | 124.05 | | | $ | 135.76 | |
| | | | 2004 | | | $ | 159.55 | | | $ | 132.51 | | | $ | 123.55 | | | $ | 124.43 | | | $ | 134.82 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Vacation Rental Transactions (in 000s) | | | 2007 | | | | 398 | | | | 326 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | | 385 | | | | 310 | | | | 356 | | | | 293 | | | | 1,344 | |
| | | | 2005 | | | | 367 | | | | 311 | | | | 344 | | | | 278 | | | | 1,300 | |
| | | | 2004 | | | | 309 | | | | 246 | | | | 295 | | | | 253 | | | | 1,104 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Average Net Price Per Vacation Rental | | | 2007 | | | $ | 349.73 | | | $ | 415.71 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | $ | 312.51 | | | $ | 374.91 | | | $ | 442.75 | | | $ | 356.16 | | | $ | 370.93 | |
| | | | 2005 | | | $ | 331.37 | | | $ | 363.14 | | | $ | 412.66 | | | $ | 325.62 | | | $ | 359.27 | |
| | | | 2004 | | | $ | 279.46 | | | $ | 333.76 | | | $ | 368.79 | | | $ | 337.42 | | | $ | 328.77 | |
Vacation Ownership | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross Vacation Ownership Interest Sales (in 000s) | | | 2007 | | | $ | 430,000 | | | $ | 523,000 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | $ | 357,000 | | | $ | 434,000 | | | $ | 482,000 | | | $ | 469,000 | | | $ | 1,743,000 | |
| | | | 2005 | | | $ | 281,000 | | | $ | 354,000 | | | $ | 401,000 | | | $ | 360,000 | | | $ | 1,396,000 | |
| | | | 2004 | | | $ | 274,000 | | | $ | 315,000 | | | $ | 361,000 | | | $ | 304,000 | | | $ | 1,254,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Tours | | | 2007 | | | | 240,000 | | | | 304,000 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | | 208,000 | | | | 273,000 | | | | 312,000 | | | | 254,000 | | | | 1,046,000 | |
| | | | 2005 | | | | 195,000 | | | | 250,000 | | | | 272,000 | | | | 217,000 | | | | 934,000 | |
| | | | 2004 | | | | 181,000 | | | | 227,000 | | | | 246,000 | | | | 205,000 | | | | 859,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Volume Per Guest (VPG) | | | 2007 | | | $ | 1,607 | | | $ | 1,596 | | | | N/A | | | | N/A | | | | N/A | |
| | | | 2006 | | | $ | 1,475 | | | $ | 1,426 | | | $ | 1,434 | | | $ | 1,623 | | | $ | 1,486 | |
| | | | 2005 | | | $ | 1,349 | | | $ | 1,284 | | | $ | 1,349 | | | $ | 1,507 | | | $ | 1,368 | |
| | | | 2004 | | | $ | 1,303 | | | $ | 1,253 | | | $ | 1,273 | | | $ | 1,327 | | | $ | 1,287 | |
| | |
| Note:Full year amounts may not foot across due to rounding. |
| |
| (a) | | Quarterly drivers in the Lodging segment include the acquisitions of Ramada International (December 2004), Wyndham Hotels and Resorts (October 2005) and Baymont Inn & Suites (April 2006) from their acquisition dates forward. Therefore, the operating statistics are not presented on a comparable basis. |
| |
| (b) | | Numbers include unmanaged, affiliated and managed, non-proprietary hotels from the fourth quarter of 2006 forward. |
Table 3
(2 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
GLOSSARY OF TERMS
Lodging
Weighted Average Rooms Available: Represents the weighted average number of hotel rooms available for rental during the period.
Number of Properties: Represents the number of lodging properties under franchise and/or management agreements at the end of the period.
Number of Rooms: Represents the number of rooms at lodging properties under franchise and/or management agreements at the end of the period.
Average Occupancy Rate: Represents the percentage of available rooms occupied during the period.
Average Daily Rate (ADR): Represents the average rate charged for renting a lodging room for one day.
RevPAR: Represents revenue per available room and is calculated by multiplying average occupancy rate by ADR.
Royalty, Marketing and Reservation Revenue: Royalty, marketing and reservation revenue are typically based on a percentage of the gross room revenues of each franchised hotel. Royalty revenue is generally a fee charged to each franchised hotel for the use of one of our trade names, while marketing and reservation revenue are fees that we collect and are contractually obligated to spend to support marketing and reservation activities.
Vacation Exchange and Rentals
Average Number of Members: Represents members in our vacation exchange programs who pay annual membership dues. For additional fees, such participants are entitled to exchange intervals for intervals at other properties affiliated with our vacation exchange business. In addition, certain participants may exchange intervals for other leisure-related products and services.
Annual Dues and Exchange Revenue Per Member: Represents total revenues from annual membership dues and exchange fees generated for the period divided by the average number of vacation exchange members during the year.
Vacation Rental Transactions: Represents the gross number of transactions that are generated in connection with customers booking their vacation rental stays through us. In our European vacation rentals businesses, one rental transaction is recorded each time a standard one-week rental is booked; however, in the United States, one rental transaction is recorded each time a vacation rental stay is booked, regardless of whether it is less than or more than one week.
Average Net Price Per Vacation Rental: Represents the net rental price generated from renting vacation properties to customers divided by the number of rental transactions.
Vacation Ownership
Gross Vacation Ownership Interest Sales: Represents gross sales of vacation ownership interests (including tele-sales upgrades, which are a component of upgrade sales) before deferred sales and loan loss provisions.
Tours: Represents the number of tours taken by guests in our efforts to sell vacation ownership interests.
Volume per Guest (VPG): Represents revenue per guest and is calculated by dividing the gross vacation ownership interest sales, excluding tele-sales upgrades, which are a component of upgrade sales, by the number of tours.
Table 4
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
| | | | | | | | | | | | | | | | | | | | | |
| | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | June 30, | |
| | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2006 | |
| Securitized vacation ownership debt | | | | | | | | | | | | | | | | | | | | |
| Term notes | | $ | 1,322 | | | $ | 887 | | | $ | 838 | | | $ | 967 | | | $ | 575 | |
Bank conduit facility(a) | | | 491 | | | | 826 | | | | 625 | | | | 371 | | | | 653 | |
| | | | | | | | | | | | | | | | |
Securitized vacation ownership debt(b) | | | 1,813 | | | | 1,713 | | | | 1,463 | | | | 1,338 | | | | 1,228 | |
| Less: Current portion of securitized vacation ownership debt | | | 242 | | | | 231 | | | | 178 | | | | 213 | | | | 210 | |
| | | | | | | | | | | | | | | | |
| Long-term securitized vacation ownership debt | | $ | 1,571 | | | $ | 1,482 | | | $ | 1,285 | | | $ | 1,125 | | | $ | 1,018 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Debt: | | | | | | | | | | | | | | | | | | | | |
6.00% Senior unsecured notes (due December 2016)(c) | | $ | 797 | | | $ | 796 | | | $ | 796 | | | $ | — | | | $ | — | |
Revolving credit facility (due July 2011)(d) | | | 215 | | | | 48 | | | | — | | | | 150 | | | | — | |
| Interim loan facility (due July 2007) | | | — | | | | — | | | | — | | | | 350 | | | | — | |
| Term loan (due July 2011) | | | 300 | | | | 300 | | | | 300 | | | | 300 | | | | — | |
Vacation ownership asset-linked facility(e) | | | — | | | | — | | | | — | | | | — | | | | 600 | |
| Bank borrowings: | | | | | | | | | | | | | | | | | | | | |
| Vacation ownership | | | 130 | | | | 112 | | | | 103 | | | | 113 | | | | 111 | |
Vacation rentals(f) | | | — | | | | — | | | | 73 | | | | 70 | | | | 70 | |
| Vacation rentals capital leases | | | 147 | | | | 147 | | | | 148 | | | | 144 | | | | 145 | |
| Other | | | 14 | | | | 16 | | | | 17 | | | | 37 | | | | 35 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total debt | | | 1,603 | | | | 1,419 | | | | 1,437 | | | | 1,164 | | | | 961 | |
| Less: Current portion of debt | | | 140 | | | | 123 | | | | 115 | | | | 143 | | | | 207 | |
| | | | | | | | | | | | | | | | |
| Long-term debt | | $ | 1,463 | | | $ | 1,296 | | | $ | 1,322 | | | $ | 1,021 | | | $ | 754 | |
| | | | | | | | | | | | | | | | |
| | |
| (a) | | This 364-day vacation ownership bank conduit facility was renewed and upsized to $1,000 million on November 13, 2006. The borrowings under this facility have a maturity date of December 2009. |
| |
| (b) | | This debt is collateralized by $2,288 million, $2,198 million, $1,844 million, $1,718 million and $1,624 million of underlying vacation ownership contract receivables and related assets at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively. |
| |
| (c) | | These notes represent $800 million aggregate principal less $3 million of original issue discount. |
| |
| (d) | | The Company’s revolving credit facility has a borrowing capacity of $900 million. At June 30, 2007, the Company has $42 million of outstanding letters of credit and a remaining borrowing capacity of $643 million. |
| |
| (e) | | The Company provided $600 million to its former parent, Cendant (now Avis Budget Group, Inc.) to repay this facility in July 2006. |
| |
| (f) | | The borrowings under this facility were repaid on January 31, 2007. |
Table 5
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
| | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2007 |
| | | | | | | | | | | | | | | | | | | Average |
| | | | | | | | | | | | | | | | | | | Revenue Per |
| | | Number of | | | | | | Average | | Average Daily | | Available Room |
| Brand | | Properties | | Number of Rooms | | Occupancy Rate | | Rate (ADR) | | (RevPAR) |
| Wyndham Hotels and Resorts | | | 75 | | | | 19,945 | | | | 62.7 | % | | $ | 118.17 | | | $ | 74.06 | |
| Wingate Inn | | | 154 | | | | 14,172 | | | | 69.9 | % | | $ | 91.30 | | | $ | 63.84 | |
| Ramada | | | 859 | | | | 105,299 | | | | 57.8 | % | | $ | 78.11 | | | $ | 45.12 | |
| Baymont | | | 169 | | | | 14,986 | | | | 55.4 | % | | $ | 69.77 | | | $ | 38.63 | |
| AmeriHost Inn | | | 54 | | | | 3,673 | | | | 49.7 | % | | $ | 67.16 | | | $ | 33.35 | |
| Days Inn | | | 1,862 | | | | 150,984 | | | | 56.3 | % | | $ | 62.63 | | | $ | 35.24 | |
| Super 8 | | | 2,054 | | | | 126,450 | | | | 59.1 | % | | $ | 58.17 | | | $ | 34.39 | |
| Howard Johnson | | | 468 | | | | 44,667 | | | | 50.7 | % | | $ | 65.05 | | | $ | 32.99 | |
| Travelodge | | | 496 | | | | 37,284 | | | | 51.4 | % | | $ | 66.25 | | | $ | 34.04 | |
| Knights Inn | | | 252 | | | | 18,019 | | | | 43.3 | % | | $ | 43.75 | | | $ | 18.93 | |
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | | | 19 | | | | 6,197 | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | |
| Total | | | 6,462 | | | | 541,676 | | | | 56.5 | % | | $ | 67.86 | | | $ | 38.35 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2006 |
| | | | | | | | | | | | | | | | | | | Average |
| | | | | | | | | | | | | | | | | | | Revenue Per |
| | | Number of | | | | | | Average | | Average Daily | | Available Room |
| Brand | | Properties | | Number of Rooms | | Occupancy Rate | | Rate (ADR) | | (RevPAR) |
| Wyndham Hotels and Resorts | | | 87 | | | | 23,959 | | | | 70.5 | % | | $ | 109.55 | | | $ | 77.19 | |
| Wingate Inn | | | 148 | | | | 13,665 | | | | 69.2 | % | | $ | 83.95 | | | $ | 58.13 | |
| Ramada | | | 892 | | | | 107,735 | | | | 56.8 | % | | $ | 72.86 | | | $ | 41.35 | |
| Baymont | | | 130 | | | | 11,649 | | | | 58.5 | % | | $ | 64.52 | | | $ | 37.76 | |
| AmeriHost Inn | | | 110 | | | | 7,693 | | | | 56.9 | % | | $ | 61.25 | | | $ | 34.85 | |
| Days Inn | | | 1,850 | | | | 150,162 | | | | 54.9 | % | | $ | 60.57 | | | $ | 33.23 | |
| Super 8 | | | 2,038 | | | | 124,247 | | | | 58.8 | % | | $ | 55.41 | | | $ | 32.56 | |
| Howard Johnson | | | 463 | | | | 42,947 | | | | 49.2 | % | | $ | 66.30 | | | $ | 32.64 | |
| Travelodge | | | 500 | | | | 37,132 | | | | 52.7 | % | | $ | 62.54 | | | $ | 32.96 | |
| Knights Inn | | | 223 | | | | 16,713 | | | | 45.1 | % | | $ | 40.33 | | | $ | 18.18 | |
| | | | | | | | | | | | | | | |
| Total | | | 6,441 | | | | 535,902 | | | | 56.4 | % | | $ | 65.50 | | | $ | 36.97 | |
| | | | | | | | | | | | | | | |
| | |
| NOTE: A glossary of terms is included in Table 3 (2 of 2). |
| |
| (*) | | Represents 1) affiliated properties for which we receive a fee for reservation services provided and 2) properties managed under the CHI Limited joint venture. These properties are not branded; as such, certain operating statistics (such as average occupancy rate, ADR and RevPAR) are not relevant. Twelve of the managed properties are scheduled to be branded or cobranded as either Wyndham or Ramada during 2007 and 2008. |
Table 6
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
| | | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | March 31, 2007 | | June 30, 2007 | | June 30, 2007 |
Reported EBITDA | | $ | 192 | | | $ | 211 | | | $ | 402 | |
Separation and related costs(a) | | | 6 | | | | 7 | | | | 13 | |
Resolution of and adjustment to contingent liabilities and assets(b) | | | (13 | ) | | | (17 | ) | | | (30 | ) |
| | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 185 | | | $ | 201 | | | $ | 385 | |
| | | |
| | | | | | | | | | | | | |
Reported PreTax Income | | $ | 139 | | | $ | 154 | | | $ | 293 | |
Separation and related costs(a) | | | 6 | | | | 7 | | | | 13 | |
Resolution of and adjustment to contingent liabilities and assets(b) | | | (13 | ) | | | (17 | ) | | | (30 | ) |
| | | | | | | | | | | | | |
Adjusted PreTax Income | | $ | 132 | | | $ | 144 | | | $ | 276 | |
| | | |
| | | | | | | | | | | | | |
Reported Tax Provision | | $ | (53 | ) | | $ | (58 | ) | | $ | (111 | ) |
Separation and related costs (c) | | | (2 | ) | | | (3 | ) | | | (5 | ) |
Resolution of and adjustment to contingent liabilities and assets(c) | | | 4 | | | | 6 | | | | 10 | |
| | | | | | | | | | | | | |
Adjusted Tax Provision | | $ | (51 | ) | | $ | (55 | ) | | $ | (106 | ) |
| | | |
| | | | | | | | | | | | | |
Reported Net Income | | $ | 86 | | | $ | 96 | | | $ | 182 | |
| Separation and related costs | | | 4 | | | | 4 | | | | 8 | |
| Resolution of and adjustment to contingent liabilities and assets | | | (9 | ) | | | (11 | ) | | | (20 | ) |
| | | | | | | | | | | | | |
Adjusted Net Income | | $ | 81 | | | $ | 89 | | | $ | 170 | |
| | | |
| | | | | | | | | | | | | |
Reported Diluted EPS | | $ | 0.45 | | | $ | 0.52 | | | $ | 0.98 | |
| Separation and related costs | | | 0.02 | | | | 0.02 | | | | 0.04 | |
| Resolution of and adjustment to contingent liabilities and assets | | | (0.05 | ) | | | (0.06 | ) | | | (0.10 | ) |
| | | | | | | | | | | | | |
Adjusted Diluted EPS | | $ | 0.43 | | | $ | 0.49 | | | $ | 0.91 | |
| | | |
| | | | | | | | | | | | | |
| Diluted Shares | | | 190 | | | | 183 | | | | 186 | |
| | |
| Note: Amounts may not foot due to rounding. |
| |
| (a) | | Represents the costs incurred in connection with the Company’s separation from Cendant (now Avis Budget Group). |
| |
| (b) | | Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets. |
| |
| (c) | | Relates to the tax effect of the adjustments. |
Table 6
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
| | | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | March 31, 2006 | | June 30, 2006 | | June 30, 2006 |
Reported EBITDA | | $ | 182 | | | $ | 166 | | | $ | 348 | |
Separation and related costs(a) | | | 3 | | | | 5 | | | | 8 | |
Incremental stand-alone costs(b) | | | (13 | ) | | | (13 | ) | | | (26 | ) |
| | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 172 | | | $ | 158 | | | $ | 330 | |
| | | |
| | | | | | | | | | | | | |
Reported Depreciation and Amortization | | $ | (34 | ) | | $ | (36 | ) | | $ | (70 | ) |
Incremental stand-alone costs(b) | | | (1 | ) | | | (1 | ) | | | (2 | ) |
| | | | | | | | | | | | | |
Adjusted Depreciation and Amortization | | $ | (35 | ) | | $ | (37 | ) | | $ | (72 | ) |
| | | |
| | | | | | | | | | | | | |
Reported Interest Income/(Expense), Net | | | 2 | | | $ | (11 | ) | | $ | (9 | ) |
Incremental stand-alone costs(b) | | $ | (12 | ) | | | (12 | ) | | | (24 | ) |
| | | | | | | | | | | | | |
Adjusted Interest Expense, Net | | $ | (10 | ) | | $ | (23 | ) | | $ | (33 | ) |
| | | |
| | | | | | | | | | | | | |
Reported PreTax Income | | $ | 150 | | | $ | 119 | | | $ | 269 | |
Separation and related costs(a) | | | 3 | | | | 5 | | | | 8 | |
Incremental stand-alone costs (b) | | | (26 | ) | | | (26 | ) | | | (52 | ) |
| | | | | | | | | | | | | |
Adjusted PreTax Income | | $ | 127 | | | $ | 98 | | | $ | 225 | |
| | | |
| | | | | | | | | | | | | |
Reported Tax Provision | | $ | (57 | ) | | $ | (44 | ) | | $ | (101 | ) |
Separation and related costs (c) | | | (2 | ) | | | (2 | ) | | | (4 | ) |
Incremental stand-alone costs (c) | | | 10 | | | | 10 | | | | 20 | |
| | | | | | | | | | | | | |
Adjusted Tax Provision | | $ | (49 | ) | | $ | (36 | ) | | $ | (85 | ) |
| | | |
| | | | | | | | | | | | | |
Reported Net Income | | $ | 28 | | | $ | 75 | | | $ | 103 | |
Cumulative effect of SFAS No. 152 (d) | | | 65 | | | | — | | | | 65 | |
| | | | | | | | | | | | | |
Reported Income before Cumulative Effect of SFAS No. 152 | | | 93 | | | | 75 | | | | 168 | |
| | | | | | | | | | | | | |
| Separation and related costs | | | 1 | | | | 3 | | | | 4 | |
| Incremental stand-alone costs | | | (16 | ) | | | (16 | ) | | | (32 | ) |
| | | | | | | | | | | | | |
Adjusted Net Income | | $ | 78 | | | $ | 62 | | | $ | 140 | |
| | | |
| | | | | | | | | | | | | |
Reported Diluted EPS | | $ | 0.14 | | | $ | 0.37 | | | $ | 0.51 | |
| Cumulative effect of SFAS No. 152 | | | 0.32 | | | | — | | | | 0.32 | |
| | | | | | | | | | | | | |
Reported Income before Cumulative Effect of SFAS No. 152 | | | 0.46 | | | | 0.37 | | | | 0.84 | |
| | | | | | | | | | | | | |
| Separation and related costs | | | 0.00 | | | | 0.01 | | | | 0.02 | |
| Incremental stand-alone costs | | | (0.08 | ) | | | (0.08 | ) | | | (0.16 | ) |
| | | | | | | | | | | | | |
Adjusted Diluted EPS | | $ | 0.39 | | | $ | 0.31 | | | $ | 0.70 | |
| | | |
| | | | | | | | | | | | | |
Diluted Shares (e) | | | 200 | | | | 200 | | | | 200 | |
| | |
| Note:Amounts may not foot due to rounding. |
| |
| (a) | | Represents the costs incurred in connection with the Company’s separation from Cendant (now Avis Budget Group). |
| |
| (b) | | Represents the Company’s estimate of incremental stand-alone corporate costs, depreciation and amortization and interest expense associated with corporate debt that the Company would have incurred in 2006 if it was a separate stand-alone company. |
| |
| (c) | | Relates to the tax effect of the adjustments. |
| |
| (d) | | Represents non-cash charges to reflect the cumulative effect of adopting Statement of Financial Accounting Standards No. 152, ''Accounting for Real Estate Time-Sharing Transactions,’’ on January 1, 2006. |
| |
| (e) | | On July 31, 2006, the Separation from Cendant was completed in a tax-free distribution to the Company’s stockholders of one share of Wyndham common stock for every five shares of Cendant common stock held on July 21, 2006. As a result, on July 31, 2006, the Company had 200 million shares of common stock outstanding. This share amount is being utilized for the calculation of diluted earnings per share for all periods presented prior to the date of Separation. |
Table 7
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, 2007 | |
| | | | | | | Separation and | | | Legacy and | | | | |
| | | | | | | Related | | | Other | | | | |
| | | As Reported | | | Adjustments | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 443 | | | | | | | | | | | $ | 443 | |
| Service fees and membership | | | 387 | | | | | | | | | | | | 387 | |
| Franchise fees | | | 137 | | | | | | | | | | | | 137 | |
| Consumer financing | | | 88 | | | | | | | | | | | | 88 | |
| Other | | | 45 | | | | | | | | | | | | 45 | |
| | | | | | | | | | | | | |
| Net revenues | | | 1,100 | | | | — | | | | — | | | | 1,100 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Operating | | | 447 | | | | | | | | | | | | 447 | |
| Cost of vacation ownership interests | | | 104 | | | | | | | | | | | | 104 | |
| Marketing and reservation | | | 207 | | | | | | | | | | | | 207 | |
| General and administrative | | | 124 | | | | | | | | 17 | (b) | | | 141 | |
| Separation and related costs | | | 7 | | | | (7 | )(a) | | | | | | | — | |
| Depreciation and amortization | | | 41 | | | | | | | | | | | | 41 | |
| | | | | | | | | | | | | |
| Total expenses | | | 930 | | | | (7 | ) | | | 17 | | | | 940 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Operating income | | | 170 | | | | 7 | | | | (17 | ) | | | 160 | |
| Interest expense | | | 18 | | | | | | | | | | | | 18 | |
| Interest income | | | (2 | ) | | | | | | | | | | | (2 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before income taxes | | | 154 | | | | 7 | | | | (17 | ) | | | 144 | |
| Provision for income taxes | | | 58 | | | | 3 | (c) | | | (6 | )(c) | | | 55 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 96 | | | $ | 4 | | | $ | (11 | ) | | $ | 89 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | |
Basic | | $ | 0.53 | | | $ | 0.02 | | | $ | (0.06 | ) | | $ | 0.49 | |
Diluted | | | 0.52 | | | | 0.02 | | | | (0.06 | ) | | | 0.49 | |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | $ | 181 | | | | 181 | | | | 181 | | | | 181 | |
| Diluted | | | 183 | | | | 183 | | | | 183 | | | | 183 | |
| | |
| Note:EPS amounts may not foot across due to rounding. |
| |
| (a) | | Represents the costs incurred in connection with the Company’s separation from Cendant. |
| |
| (b) | | Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets. |
| |
| (c) | | Relates to the tax effect of the adjustments. |
Table 7
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2007 | |
| | | | | | | Separation and | | | Legacy and | | | | |
| | | | | | | Related | | | Other | | | | |
| | | As Reported | | | Adjustments | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 816 | | | | | | | | | | | $ | 816 | |
| Service fees and membership | | | 790 | | | | | | | | | | | | 790 | |
| Franchise fees | | | 251 | | | | | | | | | | | | 251 | |
| Consumer financing | | | 169 | | | | | | | | | | | | 169 | |
| Other | | | 86 | | | | | | | | | | | | 86 | |
| | | | | | | | | | | | | |
| Net revenues | | | 2,112 | | | | — | | | | — | | | | 2,112 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Operating | | | 853 | | | | | | | | | | | | 853 | |
| Cost of vacation ownership interests | | | 195 | | | | | | | | | | | | 195 | |
| Marketing and reservation | | | 404 | | | | | | | | | | | | 404 | |
| General and administrative | | | 245 | | | | | | | | 30 | (b) | | | 275 | |
| Separation and related costs | | | 13 | | | | (13 | )(a) | | | | | | | — | |
| Depreciation and amortization | | | 79 | | | | | | | | | | | | 79 | |
| | | | | | | | | | | | | |
| Total expenses | | | 1,789 | | | | (13 | ) | | | 30 | | | | 1,806 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Operating income | | | 323 | | | | 13 | | | | (30 | ) | | | 306 | |
| Interest expense | | | 35 | | | | | | | | | | | | 35 | |
| Interest income | | | (5 | ) | | | | | | | | | | | (5 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before income taxes | | | 293 | | | | 13 | | | | (30 | ) | | | 276 | |
| Provision for income taxes | | | 111 | | | | 5 | (c) | | | (10 | )(c) | | | 106 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 182 | | | $ | 8 | | | $ | (20 | ) | | $ | 170 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | |
Basic | | $ | 0.98 | | | $ | 0.04 | | | $ | (0.11 | ) | | $ | 0.92 | |
Diluted | | | 0.98 | | | | 0.04 | | | | (0.10 | ) | | | 0.91 | |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 185 | | | | 185 | | | | 185 | | | | 185 | |
| Diluted | | | 186 | | | | 186 | | | | 186 | | | | 186 | |
| | |
| Note:EPS amounts may not foot across due to rounding. |
| |
| (a) | | Represents the costs incurred in connection with the Company’s separation from Cendant. |
| |
| (b) | | Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets. |
| |
| (c) | | Relates to the tax effect of the adjustments. |
Table 7
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, 2006 | |
| | | | | | | Separation and | | | Stand-Alone | | | | |
| | | | | | | Related | | | Company | | | | |
| | | As Reported | | | Adjustments | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 377 | | | | | | | | | | | $ | 377 | |
| Service fees and membership | | | 341 | | | | | | | | | | | | 341 | |
| Franchise fees | | | 134 | | | | | | | | | | | | 134 | |
| Consumer financing | | | 70 | | | | | | | | | | | | 70 | |
| Other | | | 33 | | | | | | | | | | | | 33 | |
| | | | | | | | | | | | | |
| Net revenues | | | 955 | | | | — | | | | — | | | | 955 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Operating | | | 369 | | | | | | | | | | | | 369 | |
| Cost of vacation ownership interests | | | 80 | | | | | | | | | | | | 80 | |
| Marketing and reservation | �� | | 194 | | | | | | | | | | | | 194 | |
| General and administrative | | | 141 | | | | | | | | 13 | (b) | | | 154 | |
| Separation and related costs | | | 5 | | | | (5 | )(a) | | | | | | | — | |
| Depreciation and amortization | | | 36 | | | | | | | | 1 | (b) | | | 37 | |
| | | | | | | | | | | | | |
| Total expenses | | | 825 | | | | (5 | ) | | | 14 | | | | 834 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Operating income | | | 130 | | | | 5 | | | | (14 | ) | | | 121 | |
| Interest expense | | | 23 | | | | | | | | 12 | (b) | | | 35 | |
| Interest income | | | (12 | ) | | | | | | | | | | | (12 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before income taxes | | | 119 | | | | 5 | | | | (26 | ) | | | 98 | |
| Provision for income taxes | | | 44 | | | | 2 | (c) | | | (10 | )(c) | | | 36 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 75 | | | $ | 3 | | | $ | (16 | ) | | $ | 62 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | |
Basic | | $ | 0.37 | | | $ | 0.01 | | | $ | (0.08 | ) | | $ | 0.31 | |
Diluted | | | 0.37 | | | | 0.01 | | | | (0.08 | ) | | | 0.31 | |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 200 | | | | 200 | | | | 200 | | | | 200 | |
| Diluted | | | 200 | | | | 200 | | | | 200 | | | | 200 | |
| | |
| Note:EPS amounts may not foot across due to rounding. |
| |
| (a) | | Represents the costs incurred in connection with the Company’s separation from Cendant. |
| |
| (b) | | Represents the Company’s estimate of incremental stand-alone corporate costs, depreciation and amortization and interest expense associated with corporate debt that the Company would have incurred if it was a separate stand-alone company. |
| |
| (c) | | Relates to the tax effect of the adjustments. |
Table 7
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | |
| | | | | | | Separation and | | | Legacy and | | | Stand-Alone | | | | |
| | | | | | | Related | | | Other | | | Company | | | | |
| | | As Reported | | | Adjustments | | | Adjustments | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 685 | | | | | | | | | | | | | | | $ | 685 | |
| Service fees and membership | | | 696 | | | | | | | | | | | | | | | | 696 | |
| Franchise fees | | | 243 | | | | | | | | | | | | | | | | 243 | |
| Consumer financing | | | 135 | | | | | | | | | | | | | | | | 135 | |
| Other | | | 66 | | | | | | | | | | | | | | | | 66 | |
| | | | | | | | | | | | | | | | |
| Net revenues | | | 1,825 | | | | — | | | | — | | | | — | | | | 1,825 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | |
| Operating | | | 700 | | | | | | | | | | | | | | | | 700 | |
| Cost of vacation ownership interests | | | 147 | | | | | | | | | | | | | | | | 147 | |
| Marketing and reservation | | | 368 | | | | | | | | | | | | | | | | 368 | |
| General and administrative | | | 254 | | | | | | | | | | | | 26 | (b) | | | 280 | |
| Separation and related costs | | | 8 | | | | (8 | )(a) | | | | | | | | | | | — | |
| Depreciation and amortization | | | 70 | | | | | | | | | | | | 2 | (b) | | | 72 | |
| | | | | | | | | | | | | | | | |
| Total expenses | | | 1,547 | | | | (8 | ) | | | — | | | | 28 | | | | 1,567 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 278 | | | | 8 | | | | — | | | | (28 | ) | | | 258 | |
| Interest expense | | | 33 | | | | | | | | | | | | 24 | (b) | | | 57 | |
| Interest income | | | (24 | ) | | | | | | | | | | | | | | | (24 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 269 | | | | 8 | | | | — | | | | (52 | ) | | | 225 | |
| Provision for income taxes | | | 101 | | | | 4 | (c) | | | — | | | | (20 | )(c) | | | 85 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Income before cumulative effect of accounting change | | | 168 | | | | 4 | | | | — | | | | (32 | ) | | | 140 | |
| Cumulative effect of accounting change | | | (65 | ) | | | | | | | 65 | (d) | | | | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 103 | | | $ | 4 | | | $ | 65 | | | $ | (32 | ) | | $ | 140 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 0.84 | | | $ | 0.02 | | | $ | — | | | $ | (0.16 | ) | | $ | 0.70 | |
| Cumulative effect of accounting change | | | (0.32 | ) | | | — | | | | 0.32 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| Net income | | $ | 0.51 | | | $ | 0.02 | | | $ | 0.32 | | | $ | (0.16 | ) | | $ | 0.70 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 0.84 | | | $ | 0.02 | | | $ | — | | | $ | (0.16 | ) | | $ | 0.70 | |
| Cumulative effect of accounting change | | | (0.32 | ) | | | — | | | | 0.32 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| Net income | | $ | 0.51 | | | $ | 0.02 | | | $ | 0.32 | | | $ | (0.16 | ) | | $ | 0.70 | |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 200 | | | | 200 | | | | 200 | | | | 200 | | | | 200 | |
| Diluted | | | 200 | | | | 200 | | | | 200 | | | | 200 | | | | 200 | |
| | |
| Note:EPS amounts may not foot across due to rounding. |
| |
| (a) | | Represents the costs incurred in connection with the Company’s separation from Cendant. |
| |
| (b) | | Represents the Company’s estimate of incremental stand-alone corporate costs, depreciation and amortization and interest expense associated with corporate debt that the Company would have incurred if it was a separate stand-alone company. |
| |
| (c) | | Relates to the tax effect of the adjustments. |
| |
| (d) | | Represents non-cash charges to reflect the cumulative effect of adopting Statement of Financial Accounting Standards No. 152, ''Accounting for Real Estate Time-Sharing Transactions,’’ on January 1, 2006. |
