Exhibit 99.1
Wyndham Worldwide Reports Strong Fourth Quarter and Full Year 2007 Results
| | • | | Delivers Double-Digit Top- and Bottom-Line Growth for Full Year 2007 |
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| | • | | Announces Full Year 2007 Adjusted EPS Growth of 25% |
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| | • | | Affirms 2008 Guidance |
PARSIPPANY, N.J. (February 12, 2008)– Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months and year ended December 31, 2007.
Financial information discussed in this press release includes 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.
FOURTH QUARTER AND 2007 HIGHLIGHTS:
| | • | | Fourth quarter 2007 revenues increased 6% to $1.0 billion |
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| | • | | Fourth quarter 2007 net income was $104 million or $0.58 diluted earnings per share. Adjusted net income was $83 million or $0.46 diluted earnings per share |
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| | • | | Revenues for full year 2007 increased 13% to $4.4 billion compared to full year 2006, with strong, top-line growth across the Company’s three businesses |
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| | • | | Net income for full year 2007 increased 40% to $403 million, or $2.20 per diluted share, compared to 2006 net income of $287 million, or $1.44 per diluted share |
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| | • | | Adjusted net income for full year 2007 increased to $387 million, or $2.12 per diluted share, up 14% and 25%, respectively, compared to 2006 Adjusted net income of $339 million, or $1.70 per diluted share |
| | • | | Vacation Ownership posted strong full-year results, with 2007 revenues and gross vacation ownership sales increasing 17% and 14%, respectively, compared to 2006 |
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| | • | | Vacation Ownership resort count continued to expand, adding over 1,500 units to the portfolio during the year |
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| | • | | Comparable revenue per available room (RevPAR) rose 5.9% in the fourth quarter of 2007 compared to the fourth quarter of 2006, while system-wide RevPAR increased 5.3% over the prior year period |
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| | • | | Lodging opened nearly 19,000 rooms in the fourth quarter of 2007, while ending the year with a hotel pipeline of over 105,000 rooms |
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| | • | | Average number of vacation exchange members increased 5% for full year 2007 compared to 2006, reaching a Company record of more than 3.5 million members |
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| | • | | Average net price per vacation rental increased 14% for full year 2007 compared to 2006, or 6% excluding the favorable effect of currency translations |
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| | • | | During 2007, Wyndham Worldwide repurchased approximately 14.8 million shares. At December 31, 2007, approximately $163 million remained under the Company’s previously announced share repurchase program |
“Wyndham Worldwide posted strong financial and operating results in 2007, concluding our first full year as a public company with double-digit revenue and EBITDA growth as each of our business units delivered within our expectations,” said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. “Our company continues to benefit from a global portfolio of economically resilient businesses and brands and from our multiple revenue sources, with more than half of our revenue generated from fee-for-service businesses. We continue to believe that our business model solidly positions us for continued growth, even in what looks like a tougher economic environment in 2008.”
FULL YEAR 2007 OPERATING RESULTS
Revenues for full year 2007 increased to $4.4 billion, up 13% over the same period in 2006, reflecting strong organic growth:
| | • | | Lodging revenues grew 10% primarily due to solid RevPAR gains, increased property management reimbursable revenues and the continued strength and positioning of our portfolio of brands worldwide |
| | • | | Vacation Exchange and Rentals revenues increased 9% due to strength in vacation rentals and solid growth in the vacation exchange member base, as well as favorable currency translations |
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| | • | | Vacation Ownership posted terrific results, with full year 2007 revenues and gross vacation ownership sales increasing 17% and 14%, respectively, driven by increases in both tour flow and volume per guest |
Net income for full year 2007 was $403 million or $2.20 diluted earnings per share, compared to 2006 net income of $287 million or $1.44 diluted earnings per share. Net income for 2007 includes $10 million after-tax of separation and related costs and $26 million in after-tax net benefit from the resolution of and adjustment to certain legacy items. Excluding these items, Adjusted net income for full year 2007 was $387 million or $2.12 diluted earnings per share, up 14% and 25%, respectively, from full year 2006. Adjusted net income for full year 2006 was $339 million, or $1.70 diluted earnings per share.
FOURTH QUARTER 2007 OPERATING RESULTS
Revenues for the fourth quarter of 2007 were $1.0 billion, up 6% over the same period in 2006, reflecting continued organic growth.
Net income for the fourth quarter of 2007 was $104 million or $0.58 diluted earnings per share, compared to $92 million or $0.48 diluted earnings per share for the fourth quarter of 2006.
Excluding $21 million in after-tax net benefit from the resolution of and adjustment to certain legacy items, primarily related to a previously disclosed litigation settlement agreement by our former parent company, Adjusted net income for the fourth quarter of 2007 was $83 million, or $0.46 diluted earnings per share.
Excluding $22 million after-tax of separation and related costs and excluding $30 million in after-tax net benefit from the resolution of and adjustment to certain legacy items, Adjusted net income for the fourth quarter of 2006 was $84 million, or $0.44 diluted earnings per share.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues increased 16% to $176 million in the fourth quarter of 2007 compared with the fourth quarter of 2006, reflecting strong RevPAR gains and increased property management reimbursable revenues. Comparable RevPAR increased 5.9% in the fourth quarter of 2007 and system-wide RevPAR increased 5.3% over the prior year period. For the quarter, Days Inn and Super 8, which collectively represent almost 60% of the Company’s U.S. lodging portfolio — continued to experience industry-leading
comparable RevPAR growth for their segments. The Company’s top five international lodging markets, Canada, China, the U.K., Germany and Mexico, which collectively represent 75% of the Company’s international lodging portfolio, enjoyed RevPAR growth of almost 19% in the fourth quarter.
Property management reimbursable revenues were $28 million and marketing/reservation revenues, including TripRewards revenues, were $65 million in the fourth quarter of 2007, compared to $16 million and $61 million, respectively, in the fourth quarter of 2006; these items contribute little, if any, margin.
Fourth quarter 2007 EBITDA grew to $49 million compared to $47 million in the fourth quarter of 2006 (which included $1 million of separation and related costs). The EBITDA growth was muted by the timing of approximately $5 million of incremental marketing expenses.
As of December 31, 2007, the Company’s hotel system consisted of approximately 550,600 rooms and 6,540 properties, with a development pipeline of approximately 930 hotels and over 105,000 rooms, of which 44% were new construction and 32% were international.
Vacation Exchange and Rentals (Group RCI)
Revenues increased to $280 million in the fourth quarter of 2007, a 5% increase compared with the fourth quarter of 2006, reflecting growth in both vacation exchange and vacation rentals, as well as favorable currency translations, partially offset by a decline in other ancillary revenue. Excluding the favorable effect of currency translations of $14 million, revenues were flat compared to the fourth quarter of 2006.
Vacation exchange revenues were $112 million, up 2% compared to the fourth quarter of 2006, primarily driven by a 5% increase in the average number of members, partially offset by a 3% decrease in annual dues and exchange revenue per member primarily related to the timing and mix of exchange deposits.
Vacation rentals revenues were $125 million, a 20% increase compared to the fourth quarter of 2006, or a 9% increase excluding the favorable effect of currency translations. These results reflect a 20% increase in the average net price per vacation rental, or 9% excluding favorable currency translations, primarily due to the mix of activity at premium locations and the conversion of existing Landal parks from franchised to managed properties.
Other ancillary revenues generated primarily from additional products and services provided to affiliates and members were $43 million in the fourth quarter of 2007, compared with $51 million in the fourth quarter of 2006, primarily due to the absence of $4 million of revenues recorded during the fourth quarter of 2006 relating to consulting activities in Asia Pacific and $3 million of other marketing program revenues.
Fourth quarter 2007 EBITDA was $56 million, compared to fourth quarter 2006 EBITDA of $59 million, dampened by the impact of the consulting activities mentioned above and other marketing revenues in the fourth quarter of 2006 that were not repeated in 2007.
Vacation Ownership (Wyndham Vacation Ownership)
Revenues increased 4% to $576 million in the fourth quarter of 2007 compared to the fourth quarter of 2006, reflecting continued success in marketing and sales, incremental property management revenues and growing consumer finance revenues. Fourth quarter 2007 revenues included a $21 million reduction in revenues as a result of deferred vacation ownership revenue under the percentage-of-completion method of accounting compared with an $11 million reduction in the fourth quarter of 2006.
Gross Vacation Ownership Interest sales (which exclude the effect of deferred revenues) were $488 million for the fourth quarter of 2007, up 4% compared to the fourth quarter of 2006, driven by marketing efforts resulting in increases in tour flow and volume per guest based on strong performance by our sales force and continued strength in transaction pricing.
Consumer finance revenues increased $17 million or 22% for the fourth quarter of 2007 compared to the fourth quarter of 2006, which was partially offset in EBITDA due to improved borrowing efficiency against vacation ownership receivables. This shifted approximately $4 million of what would have been interest expense below EBITDA into interest expense reflected within EBITDA.
EBITDA for the fourth quarter of 2007 increased 11% to $99 million, compared to $89 million in the fourth quarter of 2006, which included $15 million of separation and related costs. Fourth quarter 2007 EBITDA reflects a net reduction of approximately $6 million due to the increase in deferred vacation ownership revenue compared with the fourth quarter of 2006.
By the end of the quarter, Wyndham Vacation Ownership had largely completed its program of rebranding its properties under the Wyndham flag.
Other Items
Corporate results were positively affected by lower legal fees and transition service expenses in fourth quarter 2007 compared to the prior year period. Interest expense for the fourth quarter of 2007 was $17 million, unchanged from the fourth quarter of 2006. Interest income for the quarter was $2 million, a $1 million decrease from the comparable prior year period. Depreciation and amortization rose $3 million to $44 million.
Balance Sheet Information as of December 31, 2007:
| | • | | Cash and cash equivalents of approximately $210 million compared to approximately $270 million at December 31, 2006 |
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| | • | | Vacation ownership contract receivables, net, of $2.9 billion compared to $2.4 billion at December 31, 2006 |
| | • | | Vacation ownership and other inventory of approximately $1.2 billion compared to approximately $955 million at December 31, 2006 |
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| | • | | Securitized vacation ownership debt of $2.1 billion compared to $1.5 billion at December 31, 2006 |
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| | • | | Other debt of $1.5 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 970,000 shares of stock during the fourth quarter of 2007 at an average price of $27.92. For full year 2007, the Company repurchased 14.8 million shares of stock at an average price of $34.32. At December 31, 2007, approximately $163 million remained under the Company’s previously announced share repurchase program.
Through February 11, the Company repurchased an additional 473,000 shares of stock at an average price of $22.19 and had approximately $154 million remaining under the current share repurchase authorization.
Outlook and Guidance
Wyndham Worldwide affirms guidance as follows:
Full Year 2008:
| | • | | Revenues of $4,800 – $4,900 million |
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| | • | | EBITDA of $920 – $945 million |
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| | • | | Depreciation and amortization expense of $175 – $185 million |
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| | • | | Interest expense, net of $75 – $85 million |
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| | • | | Effective tax rate of 38.25% |
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| | • | | Net income of $401 – $429 million |
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| | • | | EPS of $2.23 – $2.38 based on weighted average shares of approximately 180 million |
First Quarter 2008:
| | • | | EPS of $0.30 – $0.35 based on weighted average shares of approximately 180 million |
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| | • | | EPS guidance reflects a reduction for the estimated impact of deferred vacation ownership revenue of $0.12 - $0.15 per share that will be recognized in future quarters |
All guidance excludes legacy items which may have a positive or negative impact on reported results.
“I am pleased with our performance in 2007 and believe we are well-positioned to generate substantial long-term value for our shareholders,” said Mr. Holmes. “While we see no current evidence of a slowdown in our businesses, we are watching consumer sentiment and the overall economy very carefully. That said, we believe 2008 will be a year of opportunity for Wyndham Worldwide, in large part because of the resiliency and flexibility inherent in our business model. We believe that Wyndham Worldwide can successfully compete and perform even in a slowing macro-economic environment.”
Conference Call Information
Wyndham Worldwide Corporation will provide a webcast of its conference call to discuss the Company’s fourth quarter and full year 2007 financial results on Tuesday, February 12, 2008 at 8:30 a.m. EST. Listeners may access the webcast live through the Company’s Web site atwww.wyndhamworldwide.com/investors/. An archive of this webcast will be available at the Web site for approximately 90 days beginning at noon EST on February 12. 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 (203) 369-0767 beginning at noon EST on February 12 until 5 p.m. EST on February 17.
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 more than 6,500 franchised hotels and approximately 550,000 hotel rooms worldwide. Group RCI offers its more than 3.6 million members access to more than 67,000 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 145 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 33,000 employees globally.
For more information about Wyndham Worldwide, please visit the Company’s web site atwww.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 and the number of hotels the Company intends to add in future periods.
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 performance of the financial markets, 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 2006 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.
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Investor contact: | | Press contact: |
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| Margo C. Happer | | Betsy O’Rourke |
| Senior Vice President, | | Senior Vice President, |
| Investor Relations | | 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), interest income, 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 twelve months ended December 31, 2007 and 2006:
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | |
| | | 2007 | | 2006 |
| | | Net Revenues | | EBITDA | | Net Revenues | | EBITDA (c) |
| Lodging | | $ | 176 | | | $ | 49 | | | $ | 152 | | | $ | 47 | |
| Vacation Exchange and Rentals | | | 280 | | | | 56 | | | | 266 | | | | 59 | |
| Vacation Ownership | | | 576 | | | | 99 | | | | 554 | | | | 89 | |
| | | | | | | | | | | | | |
| Total Reportable Segments | | | 1,032 | | | | 204 | | | | 972 | | | | 195 | |
Corporate and Other(a) (b) | | | - | | | | 28 | | | | (2 | ) | | | 6 | |
| | | | | | | | | | | | | |
| Total Company | | $ | 1,032 | | | $ | 232 | | | $ | 970 | | | $ | 201 | |
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Reconciliation of EBITDA to Net Income | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| EBITDA | | | | | | $ | 232 | | | | | | | $ | 201 | |
| Depreciation and amortization | | | | | | | 44 | | | | | | | | 41 | |
| Interest expense | | | | | | | 17 | | | | | | | | 17 | |
| Interest income | | | | | | | (2 | ) | | | | | | | (3 | ) |
| | | | | | | | | | | | | |
| Income before income taxes | | | | | | | 173 | | | | | | | | 146 | |
| Provision for income taxes | | | | | | | 69 | | | | | | | | 54 | |
| | | | | | | | | | | | | |
| Net income | | | | | | $ | 104 | | | | | | | $ | 92 | |
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| | | | | | | | | | | | | | | | | |
| | | Twelve Months Ended December 31, | |
| | | 2007 | | 2006 | |
| | | Net Revenues | | EBITDA (d) | | Net Revenues | | EBITDA (d) |
| Lodging | | $ | 725 | | | $ | 223 | | | $ | 661 | | | $ | 208 | |
| Vacation Exchange and Rentals | | | 1,218 | | | | 293 | | | | 1,119 | | | | 265 | |
| Vacation Ownership | | | 2,425 | | | | 378 | | | | 2,068 | | | | 325 | |
| | | | | | | | | |
| Total Reportable Segments | | | 4,368 | | | | 894 | | | | 3,848 | | | | 798 | |
Corporate and Other(a) (b) | | | (8 | ) | | | (11 | ) | | | (6 | ) | | | (73 | ) |
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| Total Company | | $ | 4,360 | | | $ | 883 | | | $ | 3,842 | | | $ | 725 | |
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Reconciliation of EBITDA to Net Income | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| EBITDA | | | | | | $ | 883 | | | | | | | $ | 725 | |
| Depreciation and amortization | | | | | | | 166 | | | | | | | | 148 | |
| Interest expense | | | | | | | 73 | | | | | | | | 67 | |
| Interest income | | | | | | | (11 | ) | | | | | | | (32 | ) |
| | | | | | | | | | | | | |
| Income before income taxes | | | | | | | 655 | | | | | | | | 542 | |
| Provision for income taxes | | | | | | | 252 | | | | | | | | 190 | |
| | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | | | | | | 403 | | | | | | | | 352 | |
| Cumulative effect of accounting change, net of tax | | | | | | | - | | | | | | | | (65 | ) |
| | | | | | | | | | | | | |
| Net income | | | | | | $ | 403 | | | | | | | $ | 287 | |
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| (a) | | Includes the elimination of transactions between segments; excludes incremental stand alone company costs through July 31, 2006. |
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| (b) | | Includes $41 million and $46 million of a net benefit during the three and twelve months ended December 31, 2007, respectively, and $32 million of a net benefit for the three and twelve months ended December 31, 2006 related to the resolution of and adjustment to certain contingent liabilities and assets. |
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| (c) | | Includes separation and related costs of $1 million, $15 million and $7 million for Lodging, Vacation Ownership and Corporate and Other, respectively, during the three months ended December 31, 2006. |
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| (d) | | Includes separation and related costs of $9 million and $7 million for Vacation Ownership and Corporate and Other, respectively, during the twelve months ended December 31, 2007 and $2 million, $3 million, $18 million and $76 million for Lodging, Vacation Exchange and Rentals, Vacation Ownership and Corporate and Other, respectively, during the twelve months ended December 31, 2006. |
Table 2
Wyndham Worldwide Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | December 31, |
| | | 2007 | | 2006 | | 2007 | | 2006 |
Net revenues | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 383 | | | $ | 379 | | | $ | 1,666 | | | $ | 1,461 | |
| Service fees and membership | | | 387 | | | | 348 | | | | 1,619 | | | | 1,437 | |
| Franchise fees | | | 118 | | | | 112 | | | | 523 | | | | 501 | |
| Consumer financing | | | 96 | | | | 79 | | | | 358 | | | | 291 | |
| Other | | | 48 | | | | 52 | | | | 194 | | | | 152 | |
| | | | | | | | | |
| Net revenues | | | 1,032 | | | | 970 | | | | 4,360 | | | | 3,842 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Operating | | | 420 | | | | 391 | | | | 1,742 | | | | 1,474 | |
| Cost of vacation ownership interests | | | 80 | | | | 78 | | | | 376 | | | | 317 | |
| Marketing and reservation | | | 199 | | | | 168 | | | | 831 | | | | 734 | |
General and administrative(a) | | | 100 | | | | 109 | | | | 519 | | | | 493 | |
Separation and related costs(b) | | | - | | | | 23 | | | | 16 | | | | 99 | |
| Depreciation and amortization | | | 44 | | | | 41 | | | | 166 | | | | 148 | |
| | | | | | | | | |
| Total expenses | | | 843 | | | | 810 | | | | 3,650 | | | | 3,265 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Operating income | | | 189 | | | | 160 | | | | 710 | | | | 577 | |
| Other (income)/loss, net | | | 1 | | | | - | | | | (7 | ) | | | - | |
| Interest expense | | | 17 | | | | 17 | | | | 73 | | | | 67 | |
| Interest income | | | (2 | ) | | | (3 | ) | | | (11 | ) | | | (32 | ) |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before income taxes | | | 173 | | | | 146 | | | | 655 | | | | 542 | |
| Provision for income taxes | | | 69 | | | | 54 | | | | 252 | | | | 190 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before cumulative effect of accounting change | | | 104 | | | | 92 | | | | 403 | | | | 352 | |
Cumulative effect of accounting change, net of tax(c) | | | - | | | | - | | | | - | | | | (65 | ) |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 104 | | | $ | 92 | | | $ | 403 | | | $ | 287 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 0.59 | | | $ | 0.48 | | | $ | 2.22 | | | $ | 1.78 | |
| Cumulative effect of accounting change, net of tax | | | - | | | | - | | | | - | | | | (0.33 | ) |
| | | | | | | | | |
| Net income | | $ | 0.59 | | | $ | 0.48 | | | $ | 2.22 | | | $ | 1.45 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 0.58 | | | $ | 0.48 | | | $ | 2.20 | | | $ | 1.77 | |
| Cumulative effect of accounting change, net of tax | | | - | | | | - | | | | - | | | | (0.33 | ) |
| | | | | | | | | |
| Net income | | $ | 0.58 | | | $ | 0.48 | | | $ | 2.20 | | | $ | 1.44 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 178 | | | | 193 | | | | 181 | | | | 198 | |
| Diluted | | | 179 | | | | 194 | | | | 183 | | | | 199 | |
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| (a) | | Includes a net benefit of $41 million and $46 million during the three and twelve months ended December 31, 2007, respectively, and $32 million during the three and twelve months ended December 31, 2006 related to the resolution of and adjustment to certain contingent liabilities and assets. |
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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 $22 million during the three months ended December 31, 2006 and $10 million and $69 million during the twelve months ended December 31, 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. |
Table 3
(1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
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| | | Year | | Q1 | | | Q2 | | | Q3 | | | Q4 | | | Full Year | |
Lodging(a) | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Rooms (b) | | | 2007 | | | | 539,300 | | | | 541,700 | | | | 540,900 | | | | 550,600 | | | | N/A | |
| | | | 2006 | | | | 525,500 | | | | 535,900 | | | | 533,700 | | | | 543,200 | | | | N/A | |
| | | | 2005 | | | | 519,300 | | | | 516,000 | | | | 512,000 | | | | 532,700 | | | | N/A | |
| | | | 2004 | | | | 515,700 | | | | 514,500 | | | | 509,600 | | | | 521,200 | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted Average Rooms Available | | | 2007 | | | | 529,700 | | | | 530,700 | | | | 529,800 | | | | 537,500 | | | | 532,300 | |
| | | | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| RevPAR | | | 2007 | | | $ | 31.35 | | | $ | 38.35 | | | $ | 43.10 | | | $ | 33.09 | | | $ | 36.48 | |
| | | | 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 | | | $ | 146,290 | | | $ | 107,870 | | | $ | 489,041 | |
| | | | 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 | | | | 3,538 | | | | 3,588 | | | | 3,526 | |
| | | | 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 | | | $ | 131.38 | | | $ | 124.59 | | | $ | 135.85 | |
| | | | 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 | | | | 360 | | | | 293 | | | | 1,376 | �� |
| | | | 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 | | | $ | 506.78 | | | $ | 426.93 | | | $ | 422.83 | |
| | | | 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 | | | $ | 552,000 | | | $ | 488,000 | | | $ | 1,993,000 | |
| | | | 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 | | | | 332,000 | | | | 268,000 | | | | 1,144,000 | |
| | | | 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 | | | $ | 1,545 | | | $ | 1,690 | | | $ | 1,606 | |
| | | | 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 affiliated rooms from the fourth quarter of 2006 forward. |
Table 3
(2 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
GLOSSARY OF TERMS
Lodging
Number of Rooms: Represents the number of rooms at lodging properties under franchise and/or management agreements at the end of the period.
Weighted Average Rooms Available: Represents the weighted average number of hotel rooms available for rental during 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. Comparable RevPAR represents RevPAR of hotels which are included in both periods.
Royalty, Marketing and Reservation Revenues: Royalty, marketing and reservation revenues 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 revenues are fees that we collect and are contractually obligated to spend to support marketing and reservation activities. Marketing and reservation fees are also included in the above table within marketing, reservation and TripRewards revenues.
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
ADDITIONAL DATA
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year | | | Q1 | | | Q2 | | | Q3 | | | Q4 | | | Full Year | |
Lodging(a) | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Properties (b) | | | 2007 | | | | 6,450 | | | | 6,460 | | | | 6,460 | | | | 6,540 | | | | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Marketing, Reservation and TripRewards Revenues (in 000s) (c) | | | 2007 | | | $ | 61,369 | | | $ | 74,575 | | | $ | 84,820 | | | $ | 65,208 | | | $ | 285,973 | |
| | | | 2006 | | | $ | 58,572 | | | $ | 70,931 | | | $ | 78,856 | | | $ | 61,135 | | | $ | 269,495 | |
| | | | 2005 | | | $ | 45,066 | | | $ | 56,558 | | | $ | 65,812 | | | $ | 58,053 | | | $ | 225,491 | |
| | | | 2004 | | | $ | 39,092 | | | $ | 50,181 | | | $ | 57,485 | | | $ | 43,284 | | | $ | 190,044 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Property Management Reimbursable Revenue (in 000s) (d) | | | 2007 | | | $ | 15,624 | | | $ | 22,338 | | | $ | 25,612 | | | $ | 28,414 | | | $ | 91,987 | |
| | | | 2006 | | | $ | 15,732 | | | $ | 19,935 | | | $ | 17,210 | | | $ | 16,263 | | | $ | 69,142 | |
| | | | 2005 | | | $ | - | | | $ | - | | | $ | - | | | $ | 17,291 | | | $ | 17,291 | |
| | | | 2004 | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Vacation Ownership | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred Revenues (in 000s) (e) | | | 2007 | | | $ | 3,906 | | | $ | (4,908 | ) | | $ | 506 | | | $ | (21,092 | ) | | $ | (21,588 | ) |
| | | | 2006 | | | $ | 12,708 | | | $ | (221 | ) | | $ | (23,491 | ) | | $ | (10,675 | ) | | $ | (21,679 | ) |
| | | | 2005 | | | $ | 492 | | | $ | (9,150 | ) | | $ | (5,856 | ) | | $ | (2,022 | ) | | $ | (16,536 | ) |
| | | | 2004 | | | $ | 5,420 | | | $ | (1,482 | ) | | $ | (10,080 | ) | | $ | (2,467 | ) | | $ | (8,610 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Estimated Uncollectible Receivables (in 000s)(f) | | | 2007 | | | $ | 60,869 | | | $ | 75,032 | | | $ | 85,762 | | | $ | 83,644 | | | $ | 305,307 | |
| | | | 2006 | | | $ | 61,242 | | | $ | 55,872 | | | $ | 63,213 | | | $ | 78,680 | | | $ | 259,007 | |
| | | | 2005 | | | $ | 24,652 | | | $ | 27,754 | | | $ | 44,050 | | | $ | 31,644 | | | $ | 128,101 | |
| | | | 2004 | | | $ | 19,428 | | | $ | 21,910 | | | $ | 24,698 | | | $ | 19,535 | | | $ | 85,571 | |
| | |
| Note:Full year amounts may not foot across due to rounding. |
| |
| (a) | | Information includes 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 data is not presented on a comparable basis. |
| |
| (b) | | Numbers include affiliated hotels from the fourth quarter of 2006 forward. |
| |
| (c) | | Marketing and reservation revenues represent fees we receive from franchisees that are to be expended for marketing purposes or the operation of a centralized, brand-specific reservation system for the respective franchisees. These fees are typically based on a percentage of the gross room revenues of each franchised hotel. Marketing and reservation fees are also included in the above table within royalty, marketing and reservation revenues. TripRewards revenues represent fees we receive from the franchisees relating to our loyalty program. |
| |
| (d) | | Primarily represents payroll costs in our hotel management business that we incur and pay on behalf of property owners and for which we are reimbursed by the property owners. |
| |
| (e) | | Represents the revenue that is deferred under the percentage of completion method of accounting. Under the percentage of completion method of accounting, a portion of the total revenue from a vacation ownership contract sale is not recognized if the construction of the vacation resort has not yet been fully completed. This revenue will be recognized in future periods in proportion to the costs incurred as compared to the total expected costs for completion of construction of the vacation resort. Positive amounts represent the recognition of previously deferred revenues. |
| |
| (f) | | Represents expected losses on vacation ownership contract receivables. Beginning January 1, 2006, the Company recorded estimated uncollectible receivables as a contra revenue to vacation ownership interest sales on the Consolidated and Combined Statements of Income, as required by Statement of Financial Accounting Standards No. 152, ''Accounting for Real Estate Time-Sharing Transactions.’’ Prior to January 1, 2006, the Company recorded estimated uncollectible receivables, net of estimated inventory recoveries, as a separate expense line item on the Consolidated and Combined Statements of Income and thus 2004 and 2005 amounts are not comparable to 2006 and 2007 amounts. |
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
| | | | | | | | | | | | | | | | | | | | | |
| | | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | |
| | | 2007 | | 2007 | | 2007 | | 2007 | | 2006 | |
| Securitized vacation ownership debt | | | | | | | | | | | | | | | | | | | | |
| Term notes | | $ | 1,435 | | | $ | 1,148 | | | $ | 1,322 | | | $ | 887 | | | $ | 838 | |
Bank conduit facility(a) | | | 646 | | | | 777 | | | | 491 | | | | 826 | | | | 625 | |
| | | | | | | | | | | |
Securitized vacation ownership debt(b) | | | 2,081 | | | | 1,925 | | | | 1,813 | | | | 1,713 | | | | 1,463 | |
| Less: Current portion of securitized vacation ownership debt | | | 237 | | | | 304 | | | | 242 | | | | 231 | | | | 178 | |
| | | | | | | | | | | |
| Long-term securitized vacation ownership debt | | $ | 1,844 | | | $ | 1,621 | | | $ | 1,571 | | | $ | 1,482 | | | $ | 1,285 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Debt: | | | | | | | | | | | | | | | | | | | | |
6.00% Senior unsecured notes (due December 2016)(c) | | $ | 797 | | | $ | 797 | | | $ | 797 | | | $ | 796 | | | $ | 796 | |
| Term loan (due July 2011) | | | 300 | | | | 300 | | | | 300 | | | | 300 | | | | 300 | |
Revolving credit facility (due July 2011)(d) | | | 97 | | | | 133 | | | | 215 | | | | 48 | | | | - | |
| Bank borrowings: | | | | | | | | | | | | | | | | | | | | |
| Vacation ownership | | | 164 | | | | 148 | | | | 130 | | | | 112 | | | | 103 | |
Vacation rentals(e) | | | - | | | | - | | | | - | | | | - | | | | 73 | |
| Vacation rentals capital leases | | | 154 | | | | 153 | | | | 147 | | | | 147 | | | | 148 | |
| Other | | | 14 | | | | 14 | | | | 14 | | | | 16 | | | | 17 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total debt | | | 1,526 | | | | 1,545 | | | | 1,603 | | | | 1,419 | | | | 1,437 | |
| Less: Current portion of debt | | | 175 | | | | 159 | | | | 140 | | | | 123 | | | | 115 | |
| | | | | | | | | | | |
| Long-term debt | | $ | 1,351 | | | $ | 1,386 | | | $ | 1,463 | | | $ | 1,296 | | | $ | 1,322 | |
| | | | | | | | | | | | |
| | |
| (a) | | This 364-day vacation ownership bank conduit facility was renewed through October 2008 and upsized to $1,200 million on October 30, 2007. |
| |
| (b) | | This debt is collateralized by $2,596 million, $2,428 million, $2,288 million, $2,198 million and $1,844 million of underlying vacation ownership contract receivables and related assets at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007 and December 31, 2006, respectively. |
| |
| (c) | | The balance at December 31, 2007 represents $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 December 31, 2007, the Company has $53 million of outstanding letters of credit and a remaining borrowing capacity of $750 million. |
| |
| (e) | | The borrowings under this facility were repaid on January 31, 2007. |
Table 6
(1 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
| | | | | | | | | | | | | | | | | | | | | |
| | | As of and For the Three Months Ended December 31, 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 | | | 79 | | | | 20,953 | | | | 60.4 | % | | $ | 111.71 | | | $ | 67.44 | |
| |
| Wingate Inn | | | 152 | | | | 13,944 | | | | 56.8 | % | | $ | 92.25 | | | $ | 52.42 | |
| |
| Ramada | | | 874 | | | | 106,978 | | | | 50.9 | % | | $ | 83.24 | | | $ | 42.38 | |
| |
| Baymont | | | 193 | | | | 16,592 | | | | 43.2 | % | | $ | 58.92 | | | $ | 25.43 | |
| |
| AmeriHost Inn | | | 28 | | | | 1,943 | | | | 45.5 | % | | $ | 69.40 | | | $ | 31.60 | |
| |
| Days Inn | | | 1,883 | | | | 153,333 | | | | 46.7 | % | | $ | 62.19 | | | $ | 29.05 | |
| |
| Super 8 | | | 2,081 | | | | 128,587 | | | | 51.1 | % | | $ | 57.77 | | | $ | 29.53 | |
| |
| Howard Johnson | | | 471 | | | | 45,781 | | | | 45.4 | % | | $ | 60.33 | | | $ | 27.39 | |
| |
| Travelodge | | | 494 | | | | 36,876 | | | | 44.7 | % | | $ | 67.25 | | | $ | 30.03 | |
| |
| Knights Inn | | | 268 | | | | 18,733 | | | | 37.7 | % | | $ | 43.35 | | | $ | 16.33 | |
| |
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | | | 21 | | | | 6,856 | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | |
| |
| Total | | | 6,544 | | | | 550,576 | | | | 48.6 | % | | $ | 68.03 | | | $ | 33.09 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| |
| | | As of and For the Three Months Ended December 31, 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 | | | 82 | | | | 22,582 | | | | 64.9 | % | | $ | 108.63 | | | $ | 70.46 | |
| |
| Wingate Inn | | | 154 | | | | 14,146 | | | | 59.2 | % | | $ | 85.15 | | | $ | 50.41 | |
| |
| Ramada | | | 871 | | | | 105,986 | | | | 49.6 | % | | $ | 73.65 | | | $ | 36.53 | |
| |
| Baymont | | | 137 | | | | 12,377 | | | | 50.9 | % | | $ | 60.71 | | | $ | 30.88 | |
| |
| AmeriHost Inn | | | 98 | | | | 6,745 | | | | 50.0 | % | | $ | 61.58 | | | $ | 30.78 | |
| |
| Days Inn | | | 1,859 | | | | 151,438 | | | | 47.5 | % | | $ | 59.24 | | | $ | 28.13 | |
| |
| Super 8 | | | 2,054 | | | | 126,175 | | | | 50.2 | % | | $ | 56.00 | | | $ | 28.11 | |
| |
| Howard Johnson | | | 467 | | | | 44,432 | | | | 38.9 | % | | $ | 64.49 | | | $ | 25.06 | |
| |
| Travelodge | | | 503 | | | | 37,468 | | | | 45.5 | % | | $ | 60.06 | | | $ | 27.33 | |
| |
| Knights Inn | | | 231 | | | | 16,892 | | | | 39.5 | % | | $ | 39.43 | | | $ | 15.56 | |
| |
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | | | 17 | | | | 4,993 | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | |
| |
| Total | | | 6,473 | | | | 543,234 | | | | 48.5 | % | | $ | 64.70 | | | $ | 31.41 | |
| | | | | | | | | | | | | | | |
| | |
| 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. Eight of the managed properties are scheduled to be branded or cobranded as either Wyndham or Ramada during 2008. |
Table 6
(2 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
| | | | | | | | | | | | | | | | | | | | | |
| | | As of and For the Twelve Months Ended December 31, 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 | | | 79 | | | | 20,953 | | | | 63.9 | % | | $ | 112.42 | | | $ | 71.88 | |
| |
| Wingate Inn | | | 152 | | | | 13,944 | | | | 64.2 | % | | $ | 90.23 | | | $ | 57.96 | |
| |
| Ramada | | | 874 | | | | 106,978 | | | | 55.1 | % | | $ | 78.88 | | | $ | 43.48 | |
| |
| Baymont | | | 193 | | | | 16,592 | | | | 52.7 | % | | $ | 66.60 | | | $ | 35.09 | |
| |
| AmeriHost Inn | | | 28 | | | | 1,943 | | | | 48.5 | % | | $ | 67.09 | | | $ | 32.51 | |
| |
| Days Inn | | | 1,883 | | | | 153,333 | | | | 52.5 | % | | $ | 63.37 | | | $ | 33.24 | |
| |
| Super 8 | | | 2,081 | | | | 128,587 | | | | 56.2 | % | | $ | 58.35 | | | $ | 32.80 | |
| |
| Howard Johnson | | | 471 | | | | 45,781 | | | | 48.4 | % | | $ | 64.34 | | | $ | 31.12 | |
| |
| Travelodge | | | 494 | | | | 36,876 | | | | 50.3 | % | | $ | 66.60 | | | $ | 33.52 | |
| |
| Knights Inn | | | 268 | | | | 18,733 | | | | 41.1 | % | | $ | 43.53 | | | $ | 17.88 | |
| |
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | | | 21 | | | | 6,856 | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | |
| |
| Total | | | 6,544 | | | | 550,576 | | | | 53.7 | % | | $ | 67.96 | | | $ | 36.48 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | As of and For the Twelve Months Ended December 31, 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 | | | 82 | | | | 22,582 | | | | 68.6 | % | | $ | 110.37 | | | $ | 75.68 | |
| |
| Wingate Inn | | | 154 | | | | 14,146 | | | | 64.7 | % | | $ | 83.99 | | | $ | 54.33 | |
| |
| Ramada | | | 871 | | | | 105,986 | | | | 53.7 | % | | $ | 72.34 | | | $ | 38.85 | |
| |
| Baymont | | | 137 | | | | 12,377 | | | | 57.7 | % | | $ | 63.35 | | | $ | 36.56 | |
| |
| AmeriHost Inn | | | 98 | | | | 6,745 | | | | 53.7 | % | | $ | 62.09 | | | $ | 33.37 | |
| |
| Days Inn | | | 1,859 | | | | 151,438 | | | | 52.0 | % | | $ | 60.37 | | | $ | 31.41 | |
| |
| Super 8 | | | 2,054 | | | | 126,175 | | | | 55.2 | % | | $ | 56.17 | | | $ | 31.00 | |
| |
| Howard Johnson | | | 467 | | | | 44,432 | | | | 46.3 | % | | $ | 65.82 | | | $ | 30.45 | |
| |
| Travelodge | | | 503 | | | | 37,468 | | | | 50.7 | % | | $ | 63.05 | | | $ | 31.95 | |
| |
| Knights Inn | | | 231 | | | | 16,892 | | | | 42.3 | % | | $ | 40.11 | | | $ | 16.98 | |
| |
Unmanaged, Affiliated and Managed, Non Proprietary Hotels (*) | | | 17 | | | | 4,993 | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | |
| |
| Total | | | 6,473 | | | | 543,234 | | | | 53.4 | % | | $ | 65.44 | | | $ | 34.95 | |
| | | | | | | | | | | | | | | |
Table 7
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | March 31, 2007 | | | June 30, 2007 | | | September 30, 2007 | | | December 31, 2007 | | | December 31, 2007 | |
| | | | | | | | | | | | | | | | | | | | | |
Reported EBITDA | | $ | 192 | | | $ | 211 | | | $ | 248 | | | $ | 232 | | | $ | 883 | |
Separation and related costs(a) | | | 6 | | | | 7 | | | | 3 | | | | - | | | | 16 | |
Resolution of and adjustment to contingent liabilities and assets(b) | | | (13) | | | | (17) | | | | 25 | | | | (41) | | | | (46) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 185 | | | $ | 201 | | | $ | 276 | | | $ | 191 | | | $ | 853 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported PreTax Income | | $ | 139 | | | $ | 154 | | | $ | 189 | | | $ | 173 | | | $ | 655 | |
Separation and related costs(a) | | | 6 | | | | 7 | | | | 3 | | | | - | | | | 16 | |
Resolution of and adjustment to contingent liabilities and assets(b) | | | (13) | | | | (17) | | | | 25 | | | | (41) | | | | (46) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted PreTax Income | | $ | 132 | | | $ | 144 | | | $ | 217 | | | $ | 132 | | | $ | 625 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Tax Provision | | $ | (53) | | | $ | (58) | | | $ | (72) | | | $ | (69) | | | $ | (252) | |
Separation and related costs (c) | | | (2) | | | | (3) | | | | (1) | | | | - | | | | (6) | |
Resolution of and adjustment to contingent liabilities and assets(c) | | | 4 | | | | 6 | | | | (10) | | | | 20 | | | | 20 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Tax Provision | | $ | (51) | | | $ | (55) | | | $ | (83) | | | $ | (49) | | | $ | (238) | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Net Income | | $ | 86 | | | $ | 96 | | | $ | 117 | | | $ | 104 | | | $ | 403 | |
| Separation and related costs | | | 4 | | | | 4 | | | | 2 | | | | - | | | | 10 | |
| Resolution of and adjustment to contingent liabilities and assets | | | (9) | | | | (11) | | | | 15 | | | | (21) | | | | (26) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Net Income | | $ | 81 | | | $ | 89 | | | $ | 134 | | | $ | 83 | | | $ | 387 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Diluted EPS | | $ | 0.45 | | | $ | 0.52 | | | $ | 0.65 | | | $ | 0.58 | | | $ | 2.20 | |
| Separation and related costs | | | 0.02 | | | | 0.02 | | | | 0.01 | | | | - | | | | 0.05 | |
| Resolution of and adjustment to contingent liabilities and assets | | | (0.05) | | | | (0.06) | | | | 0.09 | | | | (0.12) | | | | (0.14) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Diluted EPS | | $ | 0.43 | | | $ | 0.49 | | | $ | 0.75 | | | $ | 0.46 | | | $ | 2.12 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Diluted Shares | | | 190 | | | | 183 | | | | 180 | | | | 179 | | | | 183 | |
| | |
| 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)/expense 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 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | March 31, 2006 | | | June 30, 2006 | | | September 30, 2006 | | | December 31, 2006 | | | December 31, 2006 | |
| | | | | | | | | | | | | | | | | | | | | |
Reported EBITDA | | $ | 182 | | | $ | 166 | | | $ | 176 | | | $ | 201 | | | $ | 725 | |
Separation and related costs(a) | | | 3 | | | | 5 | | | | 68 | | | | 23 | | | | 99 | |
Incremental stand-alone costs(b) | | | (13) | | | | (13) | | | | (4) | | | | - | | | | (30) | |
Resolution of contingent liabilities(c) | | | - | | | | - | | | | - | | | | (32) | | | | (32) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 172 | | | $ | 158 | | | $ | 240 | | | $ | 192 | | | $ | 762 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Depreciation and Amortization | | $ | (34) | | | $ | (36) | | | $ | (37) | | | $ | (41) | | | $ | (148) | |
Incremental stand-alone costs(b) | | | (1) | | | | (1) | | | | - | | | | - | | | | (2) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Depreciation and Amortization | | $ | (35) | | | $ | (37) | | | $ | (37) | | | $ | (41) | | | $ | (150) | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Interest Income/(Expense), Net | | $ | 2 | | | $ | (11) | | | $ | (12) | | | $ | (14) | | | $ | (35) | |
Incremental stand-alone costs(b) | | | (12) | | | | (12) | | | | (4) | | | | - | | | | (28) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Interest Expense, Net | | $ | (10) | | | $ | (23) | | | $ | (16) | | | $ | (14) | | | $ | (63) | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported PreTax Income | | $ | 150 | | | $ | 119 | | | $ | 127 | | | $ | 146 | | | $ | 542 | |
Separation and related costs(a) | | | 3 | | | | 5 | | | | 68 | | | | 23 | | | | 99 | |
Incremental stand-alone costs (b) | | | (26) | | | | (26) | | | | (8) | | | | - | | | | (60) | |
Resolution of contingent liabilities(c) | | | - | | | | - | | | | - | | | | (32) | | | | (32) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted PreTax Income | | $ | 127 | | | $ | 98 | | | $ | 187 | | | $ | 137 | | | $ | 549 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Tax Provision | | $ | (57) | | | $ | (44) | | | $ | (35) | | | $ | (54) | | | $ | (190) | |
Separation and related costs (d) | | | (2) | | | | (2) | | | | (25) | | | | (1) | | | | (30) | |
Incremental stand-alone costs (d) | | | 10 | | | | 10 | | | | 3 | | | | - | | | | 23 | |
State tax rate adjustment(d) (e) | | | - | | | | - | | | | (15) | | | | - | | | | (15) | |
Resolution of contingent liabilities(d) | | | - | | | | - | | | | - | | | | 2 | | | | 2 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Tax Provision | | $ | (49) | | | $ | (36) | | | $ | (72) | | | $ | (53) | | | $ | (210) | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Net Income | | $ | 28 | | | $ | 75 | | | $ | 92 | | | $ | 92 | | | $ | 287 | |
Cumulative effect of SFAS No. 152 (f) | | | 65 | | | | - | | | | - | | | | - | | | | 65 | |
| | | | | | | | | | | | | | | | |
Reported Income before Cumulative Effect of SFAS No. 152 | | | 93 | | | | 75 | | | | 92 | | | | 92 | | | | 352 | |
| | | | | | | | | | | | | | | | | | | | | |
| Separation and related costs | | | 1 | | | | 3 | | | | 43 | | | | 22 | | | | 69 | |
| Incremental stand-alone costs | | | (16) | | | | (16) | | | | (5) | | | | - | | | | (37) | |
| State tax rate adjustment | | | - | | | | - | | | | (15) | | | | - | | | | (15) | |
| Resolution of contingent liabilities | | | - | | | | - | | | | - | | | | (30) | | | | (30) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Net Income | | $ | 78 | | | $ | 62 | | | $ | 115 | | | $ | 84 | | | $ | 339 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Reported Diluted EPS | | $ | 0.14 | | | $ | 0.37 | | | $ | 0.45 | | | $ | 0.48 | | | $ | 1.44 | |
| Cumulative effect of SFAS No. 152 | | | 0.32 | | | | - | | | | - | | | | - | | | | 0.33 | |
| | | | | | | | | | | | | | | | |
Reported Income before Cumulative Effect of SFAS No. 152 | | | 0.46 | | | | 0.37 | | | | 0.45 | | | | 0.48 | | | | 1.77 | |
| | | | | | | | | | | | | | | | | | | | | |
| Separation and related costs | | | 0.00 | | | | 0.01 | | | | 0.21 | | | | 0.11 | | | | 0.35 | |
| Incremental stand-alone costs | | | (0.08) | | | | (0.08) | | | | (0.02) | | | | - | | | | (0.19) | |
| State tax rate adjustment | | | - | | | | - | | | | (0.07) | | | | - | | | | (0.08) | |
| Resolution of contingent liabilities | | | - | | | | - | | | | - | | | | (0.15) | | | | (0.15) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted Diluted EPS | | $ | 0.39 | | | $ | 0.31 | | | $ | 0.56 | | | $ | 0.44 | | | $ | 1.70 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Diluted Shares (g) | | | 200 | | | | 200 | | | | 203 | | | | 194 | | | | 199 | |
| | |
| 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), primarily the acceleration of vesting of Cendant equity awards and the related equitable adjustments of such awards. |
| |
| (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 net benefit from the resolution of certain contingent liabilities. |
| |
| (d) | | Relates to the tax effect of the adjustments. |
| |
| (e) | | Relates to a $15 million benefit relating to changes in the Company’s 2005 state effective tax rate. |
| |
| (f) | | 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. |
| |
| (g) | | 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 8
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | |
| | | Three Months Ended December 31, 2007 | |
| | | | | | | | | | | | | |
| | | | | | | Legacy and | | | | |
| | | | | | | Other | | | | |
| | | As Reported | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 383 | | | | | | | $ | 383 | |
| Service fees and membership | | | 387 | | | | | | | | 387 | |
| Franchise fees | | | 118 | | | | | | | | 118 | |
| Consumer financing | | | 96 | | | | | | | | 96 | |
| Other | | | 48 | | | | | | | | 48 | |
| | | | | | | | | | |
| Net revenues | | | 1,032 | | | | - | | | | 1,032 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | |
| Operating | | | 420 | | | | | | | | 420 | |
| Cost of vacation ownership interests | | | 80 | | | | | | | | 80 | |
| Marketing and reservation | | | 199 | | | | | | | | 199 | |
| General and administrative | | | 100 | | | | 41 | (a) | | | 141 | |
| Depreciation and amortization | | | 44 | | | | | | | | 44 | |
| | | | | | | | | | |
| Total expenses | | | 843 | | | | 41 | | | | 884 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Operating income | | | 189 | | | | (41) | | | | 148 | |
| Other loss, net | | | 1 | | | | | | | | 1 | |
| Interest expense | | | 17 | | | | | | | | 17 | |
| Interest income | | | (2) | | | | | | | | (2) | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Income before income taxes | | | 173 | | | | (41) | | | | 132 | |
| Provision for income taxes | | | 69 | | | | (20) | (b) | | | 49 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Net income | | $ | 104 | | | $ | (21) | | | $ | 83 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | |
Basic | | | 0.59 | | | $ | (0.12) | | | $ | 0.47 | |
Diluted | | | 0.58 | | | | (0.12) | | | | 0.46 | |
| | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | |
| Basic | | | 178 | | | | 178 | | | | 178 | |
| Diluted | | | 179 | | | | 179 | | | | 179 | |
| | |
| Note:EPS amounts may not foot across due to rounding. |
| |
| (a) | | Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets. |
| |
| (b) | | Relates to the tax effect of the adjustments. |
Table 8
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2007 | |
| | | | | | | Separation and | | | Legacy and | | | | |
| | | | | | | Related | | | Other | | | | |
| | | As Reported | | | Adjustments | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 1,666 | | | | | | | | | | | $ | 1,666 | |
| Service fees and membership | | | 1,619 | | | | | | | | | | | | 1,619 | |
| Franchise fees | | | 523 | | | | | | | | | | | | 523 | |
| Consumer financing | | | 358 | | | | | | | | | | | | 358 | |
| Other | | | 194 | | | | | | | | | | | | 194 | |
| | | | | | | | | |
| Net revenues | | | 4,360 | | | | - | | | | - | | | | 4,360 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Operating | | | 1,742 | | | | | | | | | | | | 1,742 | |
| Cost of vacation ownership interests | | | 376 | | | | | | | | | | | | 376 | |
| Marketing and reservation | | | 831 | | | | | | | | | | | | 831 | |
| General and administrative | | | 519 | | | | | | | | 46 | | (b) | | 565 | |
| Separation and related costs | | | 16 | | | | (16 | ) | (a) | | | | | | - | |
| Depreciation and amortization | | | 166 | | | | | | | | | | | | 166 | |
| | | | | | | | | |
| Total expenses | | | 3,650 | | | | (16 | ) | | | 46 | | | | 3,680 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Operating income | | | 710 | | | | 16 | | | | (46 | ) | | | 680 | |
| Other income, net | | | (7 | ) | | | | | | | | | | | (7 | ) |
| Interest expense | | | 73 | | | | | | | | | | | | 73 | |
| Interest income | | | (11 | ) | | | | | | | | | | | (11 | ) |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before income taxes | | | 655 | | | | 16 | | | | (46 | ) | | | 625 | |
| Provision for income taxes | | | 252 | | | | 6 | | (c) | | (20 | ) | (c) | | 238 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 403 | | | $ | 10 | | | $ | (26 | ) | | $ | 387 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | |
Basic | | $ | 2.22 | | | $ | 0.05 | | | $ | (0.14 | ) | | $ | 2.13 | |
Diluted | | | 2.20 | | | | 0.05 | | | | (0.14 | ) | | | 2.12 | |
| | | | | | | | | | | | | | | | | |
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 8
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, 2006 | |
| | | | | | | Separation and | | | Legacy and | | | | |
| | | | | | | Related | | | Other | | | | |
| | | As Reported | | | Adjustments | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 379 | | | | | | | | | | | $ | 379 | |
| Service fees and membership | | | 348 | | | | | | | | | | | | 348 | |
| Franchise fees | | | 112 | | | | | | | | | | | | 112 | |
| Consumer financing | | | 79 | | | | | | | | | | | | 79 | |
| Other | | | 52 | | | | | | | | | | | | 52 | |
| | | | | | | | | |
| Net revenues | | | 970 | | | | - | | | | - | | | | 970 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Operating | | | 391 | | | | | | | | | | | | 391 | |
| Cost of vacation ownership interests | | | 78 | | | | | | | | | | | | 78 | |
| Marketing and reservation | | | 168 | | | | | | | | | | | | 168 | |
| General and administrative | | | 109 | | | | | | | | 32 | | (b) | | 141 | |
| Separation and related costs | | | 23 | | | | (23 | ) | (a) | | | | | | — | |
| Depreciation and amortization | | | 41 | | | | | | | | | | | | 41 | |
| | | | | | | | | |
| Total expenses | | | 810 | | | | (23 | ) | | | 32 | | | | 819 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Operating income | | | 160 | | | | 23 | | | | (32 | ) | | | 151 | |
| Interest expense | | | 17 | | | | | | | | | | | | 17 | |
| Interest income | | | (3 | ) | | | | | | | | | | | (3 | ) |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Income before income taxes | | | 146 | | | | 23 | | | | (32 | ) | | | 137 | |
| Provision for income taxes | | | 54 | | | | 1 | | (c) | | (2 | ) | (c) | | 53 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 92 | | | $ | 22 | | | $ | (30 | ) | | $ | 84 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | |
Basic | | $ | 0.48 | | | $ | 0.11 | | | $ | (0.16 | ) | | $ | 0.44 | |
Diluted | | | 0.48 | | | | 0.11 | | | | (0.15 | ) | | | 0.44 | |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 193 | | | | 193 | | | | 193 | | | | 193 | |
| Diluted | | | 194 | | | | 194 | | | | 194 | | | | 194 | |
| | |
| Note:EPS amounts may not foot across 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 certain contingent liabilities. |
| |
| (c) | | Relates to the tax effect of the adjustments. |
Table 8
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2006 | |
| | | | | | | Separation and | | | Legacy and | | | Stand-Alone | | | | |
| | | | | | | Related | | | Other | | | Company | | | | |
| | | As Reported | | | Adjustments | | | Adjustments | | | Adjustments | | | As Adjusted | |
Net revenues | | | | | | | | | | | | | | | | | | | | |
| Vacation ownership interest sales | | $ | 1,461 | | | | | | | | | | | | | | | $ | 1,461 | |
| Service fees and membership | | | 1,437 | | | | | | | | | | | | | | | | 1,437 | |
| Franchise fees | | | 501 | | | | | | | | | | | | | | | | 501 | |
| Consumer financing | | | 291 | | | | | | | | | | | | | | | | 291 | |
| Other | | | 152 | | | | | | | | | | | | | | | | 152 | |
| | | | | | | | | | | | |
| Net revenues | | | 3,842 | | | | - | | | | - | | | | - | | | | 3,842 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | |
| Operating | | | 1,474 | | | | | | | | | | | | | | | | 1,474 | |
| Cost of vacation ownership interests | | | 317 | | | | | | | | | | | | | | | | 317 | |
| Marketing and reservation | | | 734 | | | | | | | | | | | | | | | | 734 | |
| General and administrative | | | 493 | | | | | | | | 32 | | (b) | | 30 | | (c) | | 555 | |
| Separation and related costs | | | 99 | | | | (99 | ) | (a) | | | | | | | | | | - | |
| Depreciation and amortization | | | 148 | | | | | | | | | | | | 2 | | (c) | | 150 | |
| | | | | | | | | | | | |
| Total expenses | | | 3,265 | | | | (99 | ) | | | 32 | | | | 32 | | | | 3,230 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 577 | | | | 99 | | | | (32 | ) | | | (32 | ) | | | 612 | |
| Interest expense | | | 67 | | | | | | | | | | | | 28 | | (c) | | 95 | |
| Interest income | | | (32 | ) | | | | | | | | | | | | | | | (32 | ) |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 542 | | | | 99 | | | | (32 | ) | | | (60 | ) | | | 549 | |
| Provision for income taxes | | | 190 | | | | 30 | | (d) | | (2 | ) | (d) | | (8 | ) | (d) | | 210 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Income before cumulative effect of accounting change | | | 352 | | | | 69 | | | | (30 | ) | | | (52 | ) | | | 339 | |
| Cumulative effect of accounting change | | | (65 | ) | | | | | | | 65 | | (e) | | | | | | - | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 287 | | | $ | 69 | | | $ | 35 | | | $ | (52 | ) | | $ | 339 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 1.78 | | | $ | 0.35 | | | $ | (0.15 | ) | | $ | (0.26 | ) | | $ | 1.71 | |
| Cumulative effect of accounting change | | | (0.33 | ) | | | - | | | | 0.33 | | | | - | | | | - | |
| | | | | | | | | | | | |
| Net income | | $ | 1.45 | | | $ | 0.35 | | | $ | 0.18 | | | $ | (0.26 | ) | | $ | 1.71 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | | | | | | | | |
| Income before cumulative effect of accounting change | | $ | 1.77 | | | $ | 0.35 | | | $ | (0.15 | ) | | $ | (0.26 | ) | | $ | 1.70 | |
| Cumulative effect of accounting change | | | (0.33 | ) | | | - | | | | 0.33 | | | | - | | | | - | |
| | | | | | | | | | | | |
| Net income | | $ | 1.44 | | | $ | 0.35 | | | $ | 0.18 | | | $ | (0.26 | ) | | $ | 1.70 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 198 | | | | 198 | | | | 198 | | | | 198 | | | | 198 | |
| Diluted | | | 199 | | | | 199 | | | | 199 | | | | 199 | | | | 199 | |
| | |
| Note:EPS amounts may not foot across due to rounding. |
| |
| (a) | | Represents the costs incurred in connection with the Company’s separation from Cendant (now Avis Budget Group), primarily the acceleration of vesting of Cendant equity awards and the related equitable adjustments of such awards. |
| |
| (b) | | Relates to the net benefit from the resolution of certain contingent liabilities. |
| |
| (c) | | 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 in 2006. |
| |
| (d) | | Relates to the tax effect of the adjustments and a $15 million benefit relating to the changes in the Company’s 2005 state effective tax rates. |
| |
| (e) | | 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. |
