Exhibit 99.1
Wyndham Worldwide Reports Third Quarter 2009 Results
Increases 2009 Adjusted EBITDA Guidance
Completes Renewal of Vacation Ownership Receivables Conduit Facility
Increases 2009 Adjusted EBITDA Guidance
Completes Renewal of Vacation Ownership Receivables Conduit Facility
PARSIPPANY, N.J. (October 28, 2009)— Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months ended September 30, 2009.
HIGHLIGHTS:
• | Wyndham Worldwide generated diluted adjusted earnings per share (EPS) of $0.58, compared with Company-issued guidance of $0.53 — $0.57. Reported EPS was $0.57. | ||
• | The Company raises full-year 2009 adjusted EBITDA guidance to $775 — $825 million, compared with prior guidance of $760 — $810 million. | ||
• | For the nine months ended September 30, 2009, the Company generated net cash from operating activities of approximately $570 million, compared with $146 million in 2008. | ||
• | Wyndham Worldwide recently completed two term securitization transactions totaling $350 million. | ||
• | The Company announces the renewal of its asset-backed vacation ownership receivables conduit. The 364-day facility bears interest at variable commercial paper rates plus a spread with a capacity of $600 million. |
“Wyndham Worldwide delivered solid results in the third quarter, once again demonstrating the benefits of a strong, resilient business model and excellent execution” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “We continue to transform the Company by rebalancing our worldwide business portfolio to increase the contribution of fee-for-service businesses and drive strong cash flow.”
THIRD QUARTER 2009 COMPANY OPERATING RESULTS
Third quarter revenues of $1,016 million declined by 17% from the prior-year period due to the previously announced initiative to reduce the deployment of capital in the Company’s vacation ownership business; continued weakness in the global lodging
industry; and unfavorable foreign exchange rate movements which negatively impacted the Company’s exchange and rentals business.
Net income for the third quarter of 2009 was $104 million, or $0.57 diluted EPS, compared with third quarter 2008 net income of $142 million, or $0.80 diluted EPS.
Adjusted net income for the third quarter of 2009 was $106 million, or $0.58 diluted adjusted EPS, compared with third quarter 2008 adjusted net income of $148 million, or $0.83 diluted adjusted EPS. Third quarter 2009 includes the after-tax impact of $2 million, or $0.01 diluted EPS, of legacy items. Third quarter 2008 net income includes the after-tax impact of $6 million, or $0.03 diluted EPS, of restructuring costs and legacy items.
THIRD QUARTER 2009 BUSINESS UNIT RESULTS
Wyndham Hotel Group
Revenues were $183 million in the third quarter of 2009, a decline of 14% compared with the third quarter of 2008, primarily reflecting a decline in worldwide RevPAR.
Third quarter 2009 system-wide RevPAR decreased 17.0%, reflecting declines of 16.0% and 21.9% in domestic and international RevPAR, respectively.
Third quarter 2009 EBITDA was $58 million compared with $72 million in the third quarter of 2008, which included $4 million of restructuring costs. The reduction in EBITDA reflects the decline in worldwide RevPAR and other franchise fees, partly offset by lower marketing expenses.
As of September 30, 2009, the Company’s hotel system consisted of approximately 7,040 properties and 590,900 rooms, of which 21% were international. The development pipeline included approximately 1,000 hotels and 110,800 rooms, of which 50% were new construction and 41% were international.
Wyndham Exchange and Rentals
The Company has renamed Group RCI to Wyndham Exchange and Rentals to more accurately reflect the two very profitable fee-based businesses where Wyndham Worldwide has leadership positions.
Revenues were $327 million in the third quarter of 2009, an 8% decrease compared with the third quarter of 2008, primarily resulting from the impact of unfavorable foreign currency movements. Excluding the impact of foreign currency, revenues were flat.
Excluding the impact of foreign currency annual dues and exchange revenues were flat compared with the third quarter of 2008, reflecting a 3% increase in the average number of members and a 3% decline in revenue per member. Including the impact of foreign currency, revenues were $110 million, a 4% decrease from the prior year period.
Excluding the impact of foreign currency vacation rental revenues increased $5 million, or 3%, compared with the third quarter of 2008, primarily driven by a 2% increase in rental transaction volume and a 1% increase in average price per vacation rental. Including the impact of foreign currency, revenues were $185 million, a 7% decrease from the prior year period.
Third quarter 2009 EBITDA increased 2% to $107 million, compared with $105 million in the third quarter of 2008, which included $2 million of restructuring costs. Excluding an unfavorable net effect of foreign currency of $14 million and restructuring costs, adjusted EBITDA would have increased $14 million, or 13%, from the third quarter of 2008, primarily reflecting cost savings.
Wyndham Vacation Ownership
Gross Vacation Ownership Interest (VOI) sales were $366 million for the third quarter of 2009, a 35% decline from the third quarter of 2008. This decrease was primarily driven by the previously announced initiative to reduce the capital deployed in this business, which included sales office closures and a reduction of marketing efforts that resulted in fewer tours.
Gross Vacation Ownership Interest (VOI) sales were $366 million for the third quarter of 2009, a 35% decline from the third quarter of 2008. This decrease was primarily driven by the previously announced initiative to reduce the capital deployed in this business, which included sales office closures and a reduction of marketing efforts that resulted in fewer tours.
Total segment revenues were $508 million in the third quarter of 2009, down 23% from the third quarter of 2008, primarily reflecting the planned reduction in tour flow which was partially offset by a 25% increase in volume per guest and a $38 million favorable impact from the percentage-of-completion (POC) method of accounting from the third quarter of 2008. Under the POC method of accounting for the sale of vacation ownership interests, the Company recognized $36 million of previously deferred revenue during the third quarter of 2009, while third quarter 2008 reported revenues were reduced by $2 million of deferred revenue.
EBITDA for the third quarter of 2009 was $104 million, down 19% from the third quarter of 2008, reflecting the net impact of the planned reduction of VOI sales volume, partially offset by an $18 million impact from the net increase in the recognition of revenue previously deferred under the POC method of accounting.
Other Items
Net interest expense in the third quarter of 2009 was $33 million, a $14 million increase from the third quarter of 2008 due to higher interest rates, primarily reflecting the impact of the long-term debt issuances in May 2009, the proceeds of which were used to reduce revolving credit facility borrowings and lower capitalized interest.
Net interest expense in the third quarter of 2009 was $33 million, a $14 million increase from the third quarter of 2008 due to higher interest rates, primarily reflecting the impact of the long-term debt issuances in May 2009, the proceeds of which were used to reduce revolving credit facility borrowings and lower capitalized interest.
Balance Sheet Information as of September 30, 2009:
• | Cash and cash equivalents of approximately $170 million compared with $135 million from December 31, 2008 | ||
• | Vacation ownership contract receivables, net, of $3.1 billion compared with $3.3 billion at December 31, 2008 | ||
• | Vacation ownership and other inventory of $1.3 billion unchanged from December 31, 2008 |
• | Securitized vacation ownership debt of $1.6 billion compared with $1.8 billion at December 31, 2008 | ||
• | Other debt of $2.0 billion, unchanged from December 31, 2008; remaining borrowing capacity on the revolving credit facility was approximately $850 million compared with approximately $290 million as of December 31, 2008 |
A schedule of debt is included in the financial tables section of this press release.
Guidance
For the fourth quarter of 2009, the Company expects adjusted EPS of $0.35 — $0.38, based on weighted average shares of 184 million.
For the fourth quarter of 2009, the Company expects adjusted EPS of $0.35 — $0.38, based on weighted average shares of 184 million.
The Company updates full-year 2009 guidance:
• | Revenues of $3.5 — $3.9 billion | ||
• | The Company now expects adjusted EBITDA of $775 — $825 million, compared with prior guidance of $760 — $810 million. |
“For full year 2010, we expect that revenue and adjusted EBITDA will be consistent with the current guidance ranges for 2009. We believe this reflects significant strength in our business, given that 2009 results will benefit from approximately $90 million of EBITDA related to vacation ownership deferred revenue roll-in that will be absent in 2010,” said Mr. Holmes. Management also expects that interest expense will be higher than 2009 levels due to financings completed in 2009 and lower capitalized interest in 2010.
The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy items and restructuring costs, if any, which may have a positive or negative impact on reported results. If economic conditions improve or deteriorate materially from current levels, these assumptions and our guidance may change materially. It is not practicable to provide a reconciliation of forecasted adjusted EBITDA to the most directly comparable GAAP measure because certain items cannot be reasonably estimated or predicted at this time. Any such items could be significant to our financial results.
Conference Call Information
Wyndham Worldwide Corporation will provide a webcast of its conference call to discuss the Company’s third quarter 2009 financial results on Wednesday, October 28, 2009 at 8:30 a.m. EDT. Listeners can access the webcast live through the company’s website at www.wyndhamworldwide.com/investors/. The conference call also may be accessed by dialing(800) 369-1776and providing the pass code “Wyndham.” Listeners are urged to call at least 10 minutes prior to the scheduled start time. An archive of this webcast will be available at the website for approximately 90 days beginning at 12:00 p.m. EDT on October 28, 2009. A telephone replay will be available at (888) 473-0114 beginning at 12:00 p.m. EDT on October 28, 2009, until 5:00 p.m. EST on December 13, 2009.
Wyndham Worldwide Corporation will provide a webcast of its conference call to discuss the Company’s third quarter 2009 financial results on Wednesday, October 28, 2009 at 8:30 a.m. EDT. Listeners can access the webcast live through the company’s website at www.wyndhamworldwide.com/investors/. The conference call also may be accessed by dialing(800) 369-1776and providing the pass code “Wyndham.” Listeners are urged to call at least 10 minutes prior to the scheduled start time. An archive of this webcast will be available at the website for approximately 90 days beginning at 12:00 p.m. EDT on October 28, 2009. A telephone replay will be available at (888) 473-0114 beginning at 12:00 p.m. EDT on October 28, 2009, until 5:00 p.m. EST on December 13, 2009.
Presentation of Financial Information
Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.
Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.
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 approximately 7,040 franchised hotels and approximately 590,900 hotel rooms worldwide. Wyndham Exchange and Rentals offers its 3.8 million members access to more than 73,000 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 over 150 vacation ownership resorts serving over 830,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,500 employees globally.
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 approximately 7,040 franchised hotels and approximately 590,900 hotel rooms worldwide. Wyndham Exchange and Rentals offers its 3.8 million members access to more than 73,000 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 over 150 vacation ownership resorts serving over 830,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,500 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 for 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 the Company’s revenues, earnings and related financial and operating measures.
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 and credit 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 described in the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 7, 2009. 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.
# # #
Investor and Press Contact:
Margo C. Happer
Senior Vice President, Investor Relations
Wyndham Worldwide Corporation
(973) 753-6472
Margo.Happer@wyndhamworldwide.com
Margo C. Happer
Senior Vice President, Investor Relations
Wyndham Worldwide Corporation
(973) 753-6472
Margo.Happer@wyndhamworldwide.com
Table 1
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
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 consumer financing interest), interest income (excluding consumer financing interest) and income taxes, each of which is presented on the Company’s Consolidated Statements of Income. The Company believes that EBITDA is a useful measure of performance for the Company’s industry segments which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company’s operating performance. 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 nine months ended September 30, 2009 and 2008:
Three Months Ended September 30, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
Net Revenues | EBITDA | Net Revenues | EBITDA(d) | |||||||||||||
Lodging | $ | 183 | $ | 58 | $ | 213 | $ | 72 | ||||||||
Vacation Exchange and Rentals | 327 | 107 | 354 | 105 | ||||||||||||
Vacation Ownership | 508 | 104 | 661 | 128 | ||||||||||||
Total Reportable Segments | 1,018 | 269 | 1,228 | 305 | ||||||||||||
Corporate and Other(a) (b) | (2 | ) | (15 | ) | (2 | ) | (11 | ) | ||||||||
Total Company | $ | 1,016 | $ | 254 | $ | 1,226 | $ | 294 | ||||||||
Reconciliation of EBITDA to Net Income | ||||||||||||||||
EBITDA | $ | 254 | $ | 294 | ||||||||||||
Depreciation and amortization | 46 | 47 | ||||||||||||||
Interest expense | 34 | 21 | ||||||||||||||
Interest income | (1 | ) | (2 | ) | ||||||||||||
Income before income taxes | 175 | 228 | ||||||||||||||
Provision for income taxes | 71 | 86 | ||||||||||||||
Net income | $ | 104 | $ | 142 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
Net Revenues | EBITDA(e) | Net Revenues | EBITDA(d) | |||||||||||||
Lodging | $ | 511 | $ | 143 | $ | 583 | $ | 179 | ||||||||
Vacation Exchange and Rentals | 894 | 240 | 1,009 | 252 | ||||||||||||
Vacation Ownership | 1,437 | 255 | 1,786 | 248 | (f) | |||||||||||
Total Reportable Segments | 2,842 | 638 | 3,378 | 679 | ||||||||||||
Corporate and Other(a) (c) | (5 | ) | (55 | ) | (8 | ) | (34 | ) | ||||||||
Total Company | $ | 2,837 | $ | 583 | $ | 3,370 | $ | 645 | ||||||||
Reconciliation of EBITDA to Net Income | ||||||||||||||||
EBITDA | $ | 583 | $ | 645 | ||||||||||||
Depreciation and amortization | 134 | 137 | ||||||||||||||
Interest expense | 79 | 59 | ||||||||||||||
Interest income | (5 | ) | (8 | ) | ||||||||||||
Income before income taxes | 375 | 457 | ||||||||||||||
Provision for income taxes | 155 | 175 | ||||||||||||||
Net income | $ | 220 | $ | 282 | ||||||||||||
(a) | Includes the elimination of transactions between segments. | |
(b) | Includes $2 million ($2 million, net of tax) and $1 million ($2 million, net of tax) of a net expense during the three months ended September 30, 2009 and 2008, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. | |
(c) | Includes $6 million ($6 million, net of tax) of a net expense and $4 million of a net benefit ($1 million, net of tax, of a net expense) during the nine months ended September 30, 2009 and 2008, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. | |
(d) | Includes restructuring costs of $4 million and $2 million for Lodging and Vacation Exchange and Rentals, respectively, during both the three and nine months ended September 30, 2008. The after-tax impact of such costs is $4 million. | |
(e) | Includes restructuring costs of $3 million, $6 million, $36 million and $1 million for Lodging, Vacation Exchange and Rentals, Vacation Ownership and Corporate and Other, respectively. The after-tax impact of such costs is $28 million. | |
(f) | Includes a non-cash impairment charge of $28 million ($17 million, net of tax) due to the Company’s initiative to rebrand its vacation ownership trademarks to the Wyndham brand. |
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net revenues | ||||||||||||||||
Service fees and membership | $ | 445 | $ | 468 | $ | 1,241 | $ | 1,344 | ||||||||
Vacation ownership interest sales | 285 | 446 | 766 | 1,153 | ||||||||||||
Franchise fees | 126 | 153 | 342 | 402 | ||||||||||||
Consumer financing | 108 | 111 | 325 | 314 | ||||||||||||
Other | 52 | 48 | 163 | 157 | ||||||||||||
Net revenues | 1,016 | 1,226 | 2,837 | 3,370 | ||||||||||||
Expenses | ||||||||||||||||
Operating | 386 | 439 | 1,153 | 1,284 | ||||||||||||
Cost of vacation ownership interests | 54 | 86 | 136 | 226 | ||||||||||||
Consumer financing interest | 35 | 34 | 102 | 93 | ||||||||||||
Marketing and reservation | 149 | 232 | 423 | 659 | ||||||||||||
General and administrative(a) (b) | 140 | 140 | 398 | 438 | ||||||||||||
Asset impairments(c) | — | — | — | 28 | ||||||||||||
Restructuring costs(d) | — | 6 | 46 | 6 | ||||||||||||
Depreciation and amortization | 46 | 47 | 134 | 137 | ||||||||||||
Total expenses | 810 | 984 | 2,392 | 2,871 | ||||||||||||
Operating income | 206 | 242 | 445 | 499 | ||||||||||||
Other income, net | (2 | ) | (5 | ) | (4 | ) | (9 | ) | ||||||||
Interest expense | 34 | 21 | 79 | 59 | ||||||||||||
Interest income | (1 | ) | (2 | ) | (5 | ) | (8 | ) | ||||||||
Income before income taxes | 175 | 228 | 375 | 457 | ||||||||||||
Provision for income taxes | 71 | 86 | 155 | 175 | ||||||||||||
Net income | $ | 104 | $ | 142 | $ | 220 | $ | 282 | ||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.58 | $ | 0.80 | $ | 1.23 | $ | 1.59 | ||||||||
Diluted | 0.57 | 0.80 | 1.21 | 1.58 | ||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 179 | 178 | 178 | 177 | ||||||||||||
Diluted | 183 | 178 | 181 | 178 |
(a) | Includes $2 million ($2 million, net of tax) and $1 million ($2 million, net of tax) of a net expense during the three months ended September 30, 2009 and 2008, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Includes $6 million ($6 million, net of tax) of a net expense and $4 million of a net benefit ($1 million, net of tax, of a net expense) during the nine months ended September 30, 2009 and 2008, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. | |
(c) | Relates to a non-cash impairment charge ($17 million, net of tax) for Vacation Ownership due to the Company’s initiative to rebrand its vacation ownership trademarks to the Wyndham brand. | |
(d) | Relates to costs incurred as a result of various strategic initiatives commenced by the Company during 2008. Such amounts, net of tax, were $28 million during the nine months ended September 30, 2009 and $4 million during both the three and nine months ended September 30, 2008. |
Table 3
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Wyndham Worldwide Corporation
OPERATING STATISTICS
OPERATING STATISTICS
Year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||
Lodging(a) | ||||||||||||||||||||||||
Number of Rooms (b) | 2009 | 588,500 | 590,200 | 590,900 | N/A | N/A | ||||||||||||||||||
2008 | 551,100 | 551,500 | 583,400 | 592,900 | N/A | |||||||||||||||||||
2007 | 539,300 | 541,700 | 540,900 | 550,600 | N/A | |||||||||||||||||||
2006 | 525,500 | 535,900 | 533,700 | 543,200 | N/A | |||||||||||||||||||
RevPAR | 2009 | $ | 27.69 | $ | 32.38 | $ | 34.81 | N/A | N/A | |||||||||||||||
2008 | $ | 32.21 | $ | 38.87 | $ | 41.93 | $ | 30.03 | $ | 35.74 | ||||||||||||||
2007 | $ | 31.35 | $ | 38.35 | $ | 43.10 | $ | 33.09 | $ | 36.48 | ||||||||||||||
2006 | $ | 30.45 | $ | 36.97 | $ | 40.82 | $ | 31.41 | $ | 34.95 | ||||||||||||||
Vacation Exchange and Rentals | ||||||||||||||||||||||||
Average Number of Members (in 000s) | 2009 | 3,789 | 3,795 | 3,781 | N/A | N/A | ||||||||||||||||||
2008 | 3,632 | 3,682 | 3,673 | 3,693 | 3,670 | |||||||||||||||||||
2007 | 3,474 | 3,506 | 3,538 | 3,588 | 3,526 | |||||||||||||||||||
2006 | 3,292 | 3,327 | 3,374 | 3,429 | 3,356 | |||||||||||||||||||
Annual Dues and Exchange Revenue Per Member | 2009 | $ | 134.38 | $ | 117.59 | $ | 116.76 | N/A | N/A | |||||||||||||||
2008 | $ | 150.84 | $ | 128.91 | $ | 124.51 | $ | 109.56 | $ | 128.37 | ||||||||||||||
2007 | $ | 155.60 | $ | 132.33 | $ | 131.38 | $ | 124.59 | $ | 135.85 | ||||||||||||||
2006 | $ | 152.10 | $ | 130.37 | $ | 132.31 | $ | 128.13 | $ | 135.62 | ||||||||||||||
Vacation Rental Transactions (in 000s) | 2009 | 387 | 324 | 367 | N/A | N/A | ||||||||||||||||||
2008 | 387 | 319 | 360 | 282 | 1,347 | |||||||||||||||||||
2007 | 398 | 326 | 360 | 293 | 1,376 | |||||||||||||||||||
2006 | 385 | 310 | 356 | 293 | 1,344 | |||||||||||||||||||
Average Net Price Per Vacation Rental | 2009 | $ | 335.54 | $ | 422.00 | $ | 505.82 | N/A | N/A | |||||||||||||||
2008 | $ | 412.74 | �� | $ | 477.63 | $ | 553.69 | $ | 400.09 | $ | 463.10 | |||||||||||||
2007 | $ | 349.73 | $ | 415.71 | $ | 506.78 | $ | 426.93 | $ | 422.83 | ||||||||||||||
2006 | $ | 312.51 | $ | 374.91 | $ | 442.75 | $ | 356.16 | $ | 370.93 | ||||||||||||||
Vacation Ownership | ||||||||||||||||||||||||
Gross Vacation Ownership Interest Sales (in 000s) | 2009 | $ | 280,000 | $ | 327,000 | $ | 366,000 | N/A | N/A | |||||||||||||||
2008 | $ | 458,000 | $ | 532,000 | $ | 566,000 | $ | 432,000 | $ | 1,987,000 | ||||||||||||||
2007 | $ | 430,000 | $ | 523,000 | $ | 552,000 | $ | 488,000 | $ | 1,993,000 | ||||||||||||||
2006 | $ | 357,000 | $ | 434,000 | $ | 482,000 | $ | 469,000 | $ | 1,743,000 | ||||||||||||||
Tours | 2009 | 137,000 | 164,000 | 173,000 | N/A | N/A | ||||||||||||||||||
2008 | 255,000 | 314,000 | 334,000 | 240,000 | 1,143,000 | |||||||||||||||||||
2007 | 240,000 | 304,000 | 332,000 | 268,000 | 1,144,000 | |||||||||||||||||||
2006 | 208,000 | 273,000 | 312,000 | 254,000 | 1,046,000 | |||||||||||||||||||
Volume Per Guest (VPG) | 2009 | $ | 1,866 | $ | 1,854 | $ | 1,944 | N/A | N/A | |||||||||||||||
2008 | $ | 1,668 | $ | 1,583 | $ | 1,550 | $ | 1,630 | $ | 1,602 | ||||||||||||||
2007 | $ | 1,607 | $ | 1,596 | $ | 1,545 | $ | 1,690 | $ | 1,606 | ||||||||||||||
2006 | $ | 1,475 | $ | 1,426 | $ | 1,434 | $ | 1,623 | $ | 1,486 |
Note:Full year amounts may not foot across due to rounding. | ||
(a) | Quarterly drivers in the Lodging segment include the acquisitions of Microtel Inns & Suites and Hawthorn Suites (July 2008) 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
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Wyndham Worldwide Corporation
ADDITIONAL DATA
ADDITIONAL DATA
Year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||
Lodging(a) | ||||||||||||||||||||||||
Number of Properties (b) | 2009 | 6,990 | 7,020 | 7,040 | N/A | N/A | ||||||||||||||||||
2008 | 6,550 | 6,560 | 6,970 | 7,040 | N/A | |||||||||||||||||||
2007 | 6,450 | 6,460 | 6,460 | 6,540 | N/A | |||||||||||||||||||
2006 | 6,300 | 6,440 | 6,420 | 6,470 | N/A | |||||||||||||||||||
Vacation Ownership | ||||||||||||||||||||||||
Deferred Revenues (in 000s) (c) | 2009 | $ | 66,516 | $ | 37,140 | $ | 36,102 | N/A | N/A | |||||||||||||||
2008 | $ | (81,716 | ) | $ | (5,240 | ) | $ | (2,023 | ) | $ | 13,870 | $ | (75,108 | ) | ||||||||||
2007 | $ | 3,906 | $ | (4,908 | ) | $ | 506 | $ | (21,092 | ) | $ | (21,588 | ) | |||||||||||
2006 | $ | 12,708 | $ | (221 | ) | $ | (23,491 | ) | $ | (10,675 | ) | $ | (21,679 | ) | ||||||||||
Provision for Loan Losses (in 000s)(d) | 2009 | $ | 107,202 | $ | 121,641 | $ | 117,111 | N/A | N/A | |||||||||||||||
2008 | $ | 82,344 | $ | 112,669 | $ | 118,609 | $ | 136,090 | $ | 449,712 | ||||||||||||||
2007 | $ | 60,869 | $ | 75,032 | $ | 85,762 | $ | 83,644 | $ | 305,307 | ||||||||||||||
2006 | $ | 61,242 | $ | 55,872 | $ | 63,213 | $ | 78,680 | $ | 259,007 |
Note:Full year amounts may not foot across due to rounding. | ||
(a) | Information includes the acquisitions of Microtel Inns & Suites and Hawthorn Suites (July 2008) 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) | 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. | |
(d) | Represents provision for estimated losses on vacation ownership contract receivables originated during the period, which is recorded as a contra revenue to vacation ownership interest sales on the Consolidated Statements of Income. |
Table 3
(3 of 3)
(3 of 3)
Wyndham Worldwide Corporation
OPERATING STATISTICS
OPERATING STATISTICS
GLOSSARY OF TERMS
Lodging
Number of Rooms: Represents the number of rooms at lodging properties at the end of the period which are either (i) under franchise and/or management agreements, (ii) properties affiliated with Wyndham Hotels and Resorts brand for which we receive a fee for reservation and/or other services provided or (iii) properties managed under the CHI Limited joint venture.
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.
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 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.
General
Constant Currency: Represents comparison eliminating the effects of foreign exchange rate fluctuations between periods.
Table 4
Wyndham Worldwide Corporation
Revenue Detail by Reportable Segment
(In millions)
Revenue Detail by Reportable Segment
(In millions)
2009 | 2008 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||||||||||||
Lodging | ||||||||||||||||||||||||||||||||||||||||
Royalties and Franchise Fees | $ | 57 | $ | 68 | $ | 72 | N/A | N/A | $ | 64 | $ | 78 | $ | 88 | $ | 66 | $ | 297 | ||||||||||||||||||||||
Marketing, Reservation and Wyndham Rewards Revenues(a) | 54 | 66 | 73 | N/A | N/A | 60 | 75 | 84 | 61 | 280 | ||||||||||||||||||||||||||||||
Property Management Reimbursable Revenues(b) | 22 | 23 | 21 | N/A | N/A | 27 | 26 | 25 | 21 | 100 | ||||||||||||||||||||||||||||||
Ancillary Revenues(c) | 21 | 17 | 17 | N/A | N/A | 19 | 21 | 16 | 22 | 76 | ||||||||||||||||||||||||||||||
Total Lodging | 154 | 174 | 183 | N/A | N/A | 170 | 200 | 213 | 170 | 753 | ||||||||||||||||||||||||||||||
Vacation Exchange and Rentals | ||||||||||||||||||||||||||||||||||||||||
Exchange Revenues | 127 | 112 | 110 | N/A | N/A | 137 | 119 | 114 | 101 | 471 | ||||||||||||||||||||||||||||||
Rental Revenues | 130 | 137 | 185 | N/A | N/A | 160 | 153 | 199 | 113 | 624 | ||||||||||||||||||||||||||||||
Ancillary Revenues(d) | 30 | 31 | 32 | N/A | N/A | 44 | 42 | 41 | 36 | 164 | ||||||||||||||||||||||||||||||
Total Vacation Exchange and Rentals | 287 | 280 | 327 | N/A | N/A | 341 | 314 | 354 | 250 | 1,259 | ||||||||||||||||||||||||||||||
Vacation Ownership | ||||||||||||||||||||||||||||||||||||||||
Vacation Ownership Interest Sales | 239 | 242 | 285 | N/A | N/A | 294 | 414 | 446 | 309 | 1,463 | ||||||||||||||||||||||||||||||
Consumer Financing | 109 | 109 | 108 | N/A | N/A | 99 | 104 | 111 | 112 | 426 | ||||||||||||||||||||||||||||||
Property Management Fees | 91 | 94 | 96 | N/A | N/A | 85 | 84 | 89 | 89 | 346 | ||||||||||||||||||||||||||||||
Ancillary Revenues(e) | 23 | 22 | 19 | N/A | N/A | 26 | 19 | 15 | (18 | ) | 43 | |||||||||||||||||||||||||||||
Total Vacation Ownership | 462 | 467 | 508 | N/A | N/A | 504 | 621 | 661 | 492 | 2,278 | ||||||||||||||||||||||||||||||
Total Reportable Segments | $ | 903 | $ | 921 | $ | 1,018 | N/A | N/A | $ | 1,015 | $ | 1,135 | $ | 1,228 | $ | 912 | $ | 4,290 | ||||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | Q4 | Year | |||||||||||||||||||||||||||||||
Lodging | ||||||||||||||||||||||||||||||||||||||||
Royalties and Franchise Fees | $ | 63 | $ | 78 | $ | 89 | $ | 67 | $ | 296 | $ | 59 | $ | 75 | $ | 81 | $ | 63 | $ | 278 | ||||||||||||||||||||
Marketing, Reservation and Wyndham Rewards Revenues(a) | 60 | 73 | 84 | 64 | 281 | 58 | 70 | 78 | 60 | 266 | ||||||||||||||||||||||||||||||
Property Management Reimbursable Revenues(b) | 16 | 22 | 26 | 28 | 92 | 16 | 20 | 17 | 16 | 69 | ||||||||||||||||||||||||||||||
Ancillary Revenues(c) | 13 | 13 | 12 | 17 | 56 | 11 | 11 | 13 | 13 | 48 | ||||||||||||||||||||||||||||||
Total Lodging | 152 | 186 | 211 | 176 | 725 | 144 | 176 | 189 | 152 | 661 | ||||||||||||||||||||||||||||||
Vacation Exchange and Rentals | ||||||||||||||||||||||||||||||||||||||||
Exchange Revenues | 135 | 116 | 116 | 112 | 479 | 125 | 108 | 112 | 110 | 455 | ||||||||||||||||||||||||||||||
Rental Revenues | 139 | 136 | 182 | 125 | 582 | 120 | 116 | 158 | 105 | 498 | ||||||||||||||||||||||||||||||
Ancillary Revenues(d) | 40 | 36 | 38 | 43 | 157 | 37 | 37 | 40 | 51 | 166 | ||||||||||||||||||||||||||||||
Total Vacation Exchange and Rentals | 314 | 288 | 336 | 280 | 1,218 | 282 | 261 | 310 | 266 | 1,119 | ||||||||||||||||||||||||||||||
Vacation Ownership | ||||||||||||||||||||||||||||||||||||||||
Vacation Ownership Interest Sales | 373 | 443 | 467 | 383 | 1,666 | 309 | 377 | 396 | 379 | 1,461 | ||||||||||||||||||||||||||||||
Consumer Financing | 81 | 88 | 93 | 96 | 358 | 65 | 70 | 77 | 79 | 291 | ||||||||||||||||||||||||||||||
Property Management Fees | 74 | 78 | 79 | 78 | 310 | 58 | 60 | 66 | 68 | 253 | ||||||||||||||||||||||||||||||
Ancillary Revenues(e) | 21 | 20 | 32 | 19 | 91 | 13 | 11 | 12 | 28 | 63 | ||||||||||||||||||||||||||||||
Total Vacation Ownership | 549 | 629 | 671 | 576 | 2,425 | 445 | 518 | 551 | 554 | 2,068 | ||||||||||||||||||||||||||||||
Total Reportable Segments | $ | 1,015 | $ | 1,103 | $ | 1,218 | $ | 1,032 | $ | 4,368 | $ | 871 | $ | 955 | $ | 1,050 | $ | 972 | $ | 3,848 | ||||||||||||||||||||
Note: Full year amounts may not foot across due to rounding. | ||
(a) | Marketing and reservation revenues represent fees we receive from franchised and managed hotels that are to be expended for marketing purposes or the operation of a centralized, brand-specific reservation system. These fees are typically based on a percentage of the gross room revenues of each hotel. Wyndham Rewards revenues represent fees we receive relating to our loyalty program. | |
(b) | 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. | |
(c) | Primarily includes additional services provided to franchisees. | |
(d) | Primarily includes fees from additional services provided to transacting members, fees from a credit card loyalty program and fees generated from programs with affiliated resorts. | |
(e) | Primarily includes revenues associated with bonus points/credits that are provided as purchase incentives on VOI sales and fees generated from other non-core businesses. |
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
SCHEDULE OF DEBT
(In millions)
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2009 | 2009 | 2009 | 2008 | 2008 | ||||||||||||||||
Securitized vacation ownership debt | ||||||||||||||||||||
Term notes | $ | 1,305 | $ | 1,290 | $ | 1,165 | $ | 1,252 | $ | 1,437 | ||||||||||
Bank conduit facilities(a) | 299 | 340 | 569 | 558 | 647 | |||||||||||||||
Securitized vacation ownership debt(b) | 1,604 | 1,630 | 1,734 | 1,810 | 2,084 | |||||||||||||||
Less: Current portion of securitized vacation ownership debt | 291 | 288 | 305 | 294 | 324 | |||||||||||||||
Long-term securitized vacation ownership debt | $ | 1,313 | $ | 1,342 | $ | 1,429 | $ | 1,516 | $ | 1,760 | ||||||||||
Debt: | ||||||||||||||||||||
6.00% senior unsecured notes (due December 2016)(c) | $ | 797 | $ | 797 | $ | 797 | $ | 797 | $ | 797 | ||||||||||
Term loan (due July 2011) | 300 | 300 | 300 | 300 | 300 | |||||||||||||||
Revolving credit facility (due July 2011)(d) | 21 | 30 | 517 | 576 | 305 | |||||||||||||||
9.875% senior unsecured notes (due May 2014)(e) | 237 | 237 | — | — | — | |||||||||||||||
3.50% convertible notes (due May 2012)(f) | 309 | 253 | — | — | — | |||||||||||||||
Vacation ownership bank borrowings (g) | 163 | 154 | 156 | 159 | 172 | |||||||||||||||
Vacation rentals capital leases | 139 | 135 | 130 | 139 | 143 | |||||||||||||||
Other | 23 | 22 | 13 | 13 | 12 | |||||||||||||||
Total debt | 1,989 | 1,928 | 1,913 | 1,984 | 1,729 | |||||||||||||||
Less: Current portion of debt | 176 | 169 | 166 | 169 | �� | 182 | ||||||||||||||
Long-term debt | $ | 1,813 | $ | 1,759 | $ | 1,747 | $ | 1,815 | $ | 1,547 | ||||||||||
(a) | Represents (i) a 364-day, non-recourse vacation ownership bank conduit facility with a term through November 2009 and borrowing capacity of $943 million and (ii) the outstanding balance of the Company’s prior bank conduit facility that was repaid on October 8, 2009. At September 30, 2009, our 364-day facility has remaining borrowing capacity of $671 million. | |
(b) | This debt is collateralized by $2,947 million, $2,916 million, $3,005 million, $2,929 million and $2,737 million of underlying vacation ownership contract receivables and related assets at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008 and September 30, 2008, respectively. | |
(c) | The balance at September 30, 2009 represents $800 million aggregate principal less $3 million of unamortized discount. | |
(d) | The Company’s revolving credit facility has a borrowing capacity of $900 million. At September 30, 2009, the Company has $30 million of outstanding letters of credit and a remaining borrowing capacity of $849 million. | |
(e) | Represents senior unsecured notes issued by the Company during May 2009. The balance at September 30, 2009 represents $250 million aggregate principal less $13 million of unamortized discount. | |
(f) | Represents cash convertible notes issued by the Company during May 2009. Such balance includes $187 million of debt ($230 million aggregate principal less $43 million of unamortized discount) and a liability with a fair value of $122 million related to a bifurcated conversion feature. | |
(g) | Represents a 364-day, AUD 213 million, secured, revolving foreign credit facility, which expires in June 2010. |
Table 6
(1 of 2)
(1 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
HOTEL BRAND SYSTEMS DETAILS
As of and For the Three Months Ended September 30, 2009 | ||||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Average Occupancy Rate | Average Daily Rate (ADR) | Average Revenue Per Available Room (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts | 87 | 23,555 | 53.2 | % | $ | 108.57 | $ | 57.76 | ||||||||||||
Wingate Inn | 169 | 15,456 | 57.1 | % | $ | 83.19 | $ | 47.54 | ||||||||||||
Hawthorn Suites | 90 | 8,386 | 55.6 | % | $ | 82.65 | $ | 45.98 | ||||||||||||
Ramada | 895 | 116,320 | 51.8 | % | $ | 73.89 | $ | 38.26 | ||||||||||||
Baymont | 233 | 19,829 | 48.9 | % | $ | 64.39 | $ | 31.46 | ||||||||||||
Days Inn | 1,851 | 148,949 | 50.7 | % | $ | 65.03 | $ | 32.96 | ||||||||||||
Super 8 | 2,125 | 131,921 | 55.8 | % | $ | 60.34 | $ | 33.68 | ||||||||||||
Howard Johnson | 474 | 45,233 | 47.6 | % | $ | 63.57 | $ | 30.24 | ||||||||||||
Travelodge | 465 | 34,800 | 50.0 | % | $ | 67.25 | $ | 33.61 | ||||||||||||
Microtel Inns & Suites | 315 | 22,608 | 53.3 | % | $ | 60.15 | $ | 32.04 | ||||||||||||
Knights Inn | 327 | 20,324 | 39.8 | % | $ | 44.56 | $ | 17.75 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | 11 | 3,549 | N/A | N/A | N/A | |||||||||||||||
Total | 7,042 | 590,930 | 51.8 | % | $ | 67.24 | $ | 34.81 | ||||||||||||
As of and For the Three Months Ended September 30, 2008 | ||||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Average Occupancy Rate | Average Daily Rate (ADR) | Average Revenue Per Available Room (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts | 80 | 21,365 | 63.4 | % | $ | 123.13 | $ | 78.09 | ||||||||||||
Wingate Inn | 158 | 14,427 | 62.9 | % | $ | 93.44 | $ | 58.77 | ||||||||||||
Hawthorn Suites | 90 | 8,404 | 63.5 | % | $ | 91.00 | $ | 57.78 | ||||||||||||
Ramada | 877 | 110,844 | 57.0 | % | $ | 82.35 | $ | 46.92 | ||||||||||||
Baymont | 213 | 18,194 | 55.7 | % | $ | 67.82 | $ | 37.74 | ||||||||||||
Days Inn | 1,878 | 152,557 | 56.9 | % | $ | 68.95 | $ | 39.22 | ||||||||||||
Super 8 | 2,098 | 130,056 | 62.1 | % | $ | 63.69 | $ | 39.57 | ||||||||||||
Howard Johnson | 471 | 45,084 | 52.4 | % | $ | 69.09 | $ | 36.20 | ||||||||||||
Travelodge | 482 | 36,203 | 56.1 | % | $ | 73.48 | $ | 41.19 | ||||||||||||
Microtel Inns & Suites | 301 | 21,431 | 57.9 | % | $ | 63.51 | $ | 36.78 | ||||||||||||
Knights Inn | 294 | 19,568 | 45.4 | % | $ | 46.18 | $ | 20.95 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | 28 | 5,260 | N/A | N/A | N/A | |||||||||||||||
Total | 6,970 | 583,393 | 57.7 | % | $ | 72.61 | $ | 41.93 | ||||||||||||
NOTE:A glossary of terms is included in Table 3 (3 of 3). | ||
(*) | 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. As of September 30, 2008, amounts also include AmeriHost branded properties. |
Table 6
(2 of 2)
(2 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
HOTEL BRAND SYSTEMS DETAILS
As of and For the Nine Months Ended September 30, 2009 | ||||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Average Occupancy Rate | Average Daily Rate (ADR) | Average Revenue Per Available Room (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts | 87 | 23,555 | 53.3 | % | $ | 116.58 | $ | 62.15 | ||||||||||||
Wingate Inn | 169 | 15,456 | 55.0 | % | $ | 84.61 | $ | 46.55 | ||||||||||||
Hawthorn Suites | 90 | 8,386 | 53.2 | % | $ | 85.69 | $ | 45.58 | ||||||||||||
Ramada | 895 | 116,320 | 48.1 | % | $ | 74.11 | $ | 35.64 | ||||||||||||
Baymont | 233 | 19,829 | 47.0 | % | $ | 63.64 | $ | 29.91 | ||||||||||||
Days Inn | 1,851 | 148,949 | 46.9 | % | $ | 63.15 | $ | 29.61 | ||||||||||||
Super 8 | 2,125 | 131,921 | 50.4 | % | $ | 57.48 | $ | 28.96 | ||||||||||||
Howard Johnson | 474 | 45,233 | 43.3 | % | $ | 62.14 | $ | 26.94 | ||||||||||||
Travelodge | 465 | 34,800 | 45.1 | % | $ | 62.57 | $ | 28.20 | ||||||||||||
Microtel Inns & Suites | 315 | 22,608 | 50.9 | % | $ | 57.18 | $ | 29.08 | ||||||||||||
Knights Inn | 327 | 20,324 | 38.4 | % | $ | 43.14 | $ | 16.56 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | 11 | 3,549 | N/A | N/A | N/A | |||||||||||||||
Total | 7,042 | 590,930 | 47.9 | % | $ | 66.08 | $ | 31.66 | ||||||||||||
As of and For the Nine Months Ended September 30, 2008 | ||||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Average Occupancy Rate | Average Daily Rate (ADR) | Average Revenue Per Available Room (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts | 80 | 21,365 | 63.6 | % | $ | 123.20 | $ | 78.44 | ||||||||||||
Wingate Inn | 158 | 14,427 | 62.3 | % | $ | 92.72 | $ | 57.78 | ||||||||||||
Hawthorn Suites | 90 | 8,404 | 63.5 | % | $ | 91.00 | $ | 57.78 | ||||||||||||
Ramada | 877 | 110,844 | 54.2 | % | $ | 82.35 | $ | 44.63 | ||||||||||||
Baymont | 213 | 18,194 | 51.2 | % | $ | 66.38 | $ | 34.02 | ||||||||||||
Days Inn | 1,878 | 152,557 | 52.0 | % | $ | 65.80 | $ | 34.24 | ||||||||||||
Super 8 | 2,098 | 130,056 | 56.0 | % | $ | 60.40 | $ | 33.84 | ||||||||||||
Howard Johnson | 471 | 45,084 | 48.5 | % | $ | 65.95 | $ | 32.01 | ||||||||||||
Travelodge | 482 | 36,203 | 50.7 | % | $ | 70.20 | $ | 35.60 | ||||||||||||
Microtel Inns & Suites | 301 | 21,431 | 57.9 | % | $ | 63.51 | $ | 36.78 | ||||||||||||
Knights Inn | 294 | 19,568 | 42.4 | % | $ | 43.71 | $ | 18.54 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) | 28 | 5,260 | N/A | N/A | N/A | |||||||||||||||
Total | 6,970 | 583,393 | 53.4 | % | $ | 70.68 | $ | 37.76 | ||||||||||||
NOTE:A glossary of terms is included in Table 3 (3 of 3). | ||
(*) | 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. As of September 30, 2008, amounts also include AmeriHost branded properties. |
Table 7
(1 of 2)
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, 2009 | June 30, 2009 | September 30, 2009 | September 30, 2009 | |||||||||||||
Reported EBITDA | $ | 134 | $ | 196 | $ | 254 | $ | 583 | ||||||||
Resolution of and adjustment to contingent liabilities and assets(a) | 4 | — | 2 | 6 | ||||||||||||
Restructuring costs(b) | 43 | 3 | — | 46 | ||||||||||||
Adjusted EBITDA | $ | 181 | $ | 199 | $ | 256 | $ | 635 | ||||||||
Reported PreTax Income | $ | 74 | $ | 127 | $ | 175 | $ | 375 | ||||||||
Resolution of and adjustment to contingent liabilities and assets(a) | 4 | — | 2 | 6 | ||||||||||||
Restructuring costs(b) | 43 | 3 | — | 46 | ||||||||||||
Adjusted PreTax Income | $ | 121 | $ | 130 | $ | 177 | $ | 427 | ||||||||
Reported Tax Provision | $ | (29 | ) | $ | (56 | ) | $ | (71 | ) | $ | (155 | ) | ||||
Resolution of and adjustment to contingent liabilities and assets(c) | (2 | ) | 2 | — | — | |||||||||||
Restructuring costs(c) | (16 | ) | (1 | ) | — | (18 | ) | |||||||||
Adjusted Tax Provision | $ | (47 | ) | $ | (55 | ) | $ | (71 | ) | $ | (173 | ) | ||||
Reported Net Income | $ | 45 | $ | 71 | $ | 104 | $ | 220 | ||||||||
Resolution of and adjustment to contingent liabilities and assets | 2 | 2 | 2 | 6 | ||||||||||||
Restructuring costs | 27 | 2 | — | 28 | ||||||||||||
Adjusted Net Income | $ | 74 | $ | 75 | $ | 106 | $ | 254 | ||||||||
Reported Diluted EPS | $ | 0.25 | $ | 0.39 | $ | 0.57 | $ | 1.21 | ||||||||
Resolution of and adjustment to contingent liabilities and assets | 0.01 | 0.01 | 0.01 | 0.03 | ||||||||||||
Restructuring costs | 0.15 | 0.01 | — | 0.16 | ||||||||||||
Adjusted Diluted EPS | $ | 0.41 | $ | 0.41 | $ | 0.58 | $ | 1.40 | ||||||||
Diluted Shares | 178 | 182 | 183 | 181 |
Note:Amounts may not foot due to rounding. | ||
(a) | Relates to the net expense from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Relates to costs incurred as a result of various strategic initiatives commenced by the Company during 2008. | |
(c) | Relates to the tax effect of the adjustments. |
Table 7
(2 of 2)
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, 2008 | June 30, 2008 | September 30, 2008 | September 30, 2008 | |||||||||||||
Reported EBITDA | $ | 130 | $ | 221 | $ | 294 | $ | 645 | ||||||||
Resolution of and adjustment to contingent liabilities and assets(a) | 3 | (7 | ) | 1 | (4 | ) | ||||||||||
Trademark impairment (b) | 28 | — | — | 28 | ||||||||||||
Restructuring costs(c) | — | — | 6 | 6 | ||||||||||||
Adjusted EBITDA | $ | 161 | $ | 214 | $ | 301 | $ | 675 | ||||||||
Reported PreTax Income | $ | 70 | $ | 160 | $ | 228 | $ | 457 | ||||||||
Resolution of and adjustment to contingent liabilities and assets(a) | 3 | (7 | ) | 1 | (4 | ) | ||||||||||
Trademark impairment (b) | 28 | — | — | 28 | ||||||||||||
Restructuring costs(c) | — | — | 6 | 6 | ||||||||||||
Adjusted PreTax Income | $ | 101 | $ | 153 | $ | 235 | $ | 487 | ||||||||
Reported Tax Provision | $ | (28 | ) | $ | (62 | ) | $ | (86 | ) | $ | (175 | ) | ||||
Resolution of and adjustment to contingent liabilities and assets(d) | — | 3 | 1 | 5 | ||||||||||||
Trademark impairment (d) | (11 | ) | — | — | (11 | ) | ||||||||||
Restructuring costs(d) | — | — | (2 | ) | (2 | ) | ||||||||||
Adjusted Tax Provision | $ | (39 | ) | $ | (59 | ) | $ | (87 | ) | $ | (183 | ) | ||||
Reported Net Income | $ | 42 | $ | 98 | $ | 142 | $ | 282 | ||||||||
Resolution of and adjustment to contingent liabilities and assets | 3 | (4 | ) | 2 | 1 | |||||||||||
Trademark impairment | 17 | — | — | 17 | ||||||||||||
Restructuring costs | — | — | 4 | 4 | ||||||||||||
Adjusted Net Income | $ | 62 | $ | 94 | $ | 148 | $ | 304 | ||||||||
Reported Diluted EPS | $ | 0.24 | $ | 0.55 | $ | 0.80 | $ | 1.58 | ||||||||
Resolution of and adjustment to contingent liabilities and assets | 0.01 | (0.02 | ) | 0.01 | 0.01 | |||||||||||
Trademark impairment | 0.10 | — | — | 0.10 | ||||||||||||
Restructuring costs | — | — | 0.02 | 0.02 | ||||||||||||
Adjusted Diluted EPS | $ | 0.35 | $ | 0.53 | $ | 0.83 | $ | 1.71 | ||||||||
Diluted Shares | 178 | 178 | 178 | 178 |
Note:Amounts may not foot due to rounding. | ||
(a) | Relates to the net (benefit)/expense from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Represents an impairment charge due to the Company’s initiative to rebrand its vacation ownership trademarks to the Wyndham brand. | |
(c) | Relates to costs incurred as a result of various strategic initiatives commenced by the Company during 2008. | |
(d) | Relates to the tax effect of the adjustments. |
Table 8
(1 of 4)
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended September 30, 2009 | ||||||||||||
As Reported | Legacy Adjustments | As Adjusted | ||||||||||
Net revenues | ||||||||||||
Service fees and membership | $ | 445 | $ | 445 | ||||||||
Vacation ownership interest sales | 285 | 285 | ||||||||||
Franchise fees | 126 | 126 | ||||||||||
Consumer financing | 108 | 108 | ||||||||||
Other | 52 | 52 | ||||||||||
Net revenues | 1,016 | — | 1,016 | |||||||||
Expenses | ||||||||||||
Operating | 386 | 386 | ||||||||||
Cost of vacation ownership interests | 54 | 54 | ||||||||||
Consumer financing interest | 35 | 35 | ||||||||||
Marketing and reservation | 149 | 149 | ||||||||||
General and administrative | 140 | (2 | ) (a) | 138 | ||||||||
Depreciation and amortization | 46 | 46 | ||||||||||
Total expenses | 810 | (2 | ) | 808 | ||||||||
Operating income | 206 | 2 | 208 | |||||||||
Other income, net | (2 | ) | (2 | ) | ||||||||
Interest expense | 34 | 34 | ||||||||||
Interest income | (1 | ) | (1 | ) | ||||||||
Income before income taxes | 175 | 2 | 177 | |||||||||
Provision for income taxes | 71 | — | (b) | 71 | ||||||||
Net income | $ | 104 | $ | 2 | $ | 106 | ||||||
Earnings per share | ||||||||||||
Basic | $ | 0.58 | $ | 0.01 | $ | 0.59 | ||||||
Diluted | 0.57 | 0.01 | 0.58 | |||||||||
Weighted average shares outstanding | ||||||||||||
Basic | 179 | 179 | 179 | |||||||||
Diluted | 183 | 183 | 183 |
(a) | Relates to the net expense from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Relates to the tax effect of the adjustment. |
Table 8
(2 of 4)
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Nine Months Ended September 30, 2009 | ||||||||||||||||
Legacy | Restructuring | |||||||||||||||
As Reported | Adjustments | Costs | As Adjusted | |||||||||||||
Net revenues | ||||||||||||||||
Service fees and membership | $ | 1,241 | $ | 1,241 | ||||||||||||
Vacation ownership interest sales | 766 | 766 | ||||||||||||||
Franchise fees | 342 | 342 | ||||||||||||||
Consumer financing | 325 | 325 | ||||||||||||||
Other | 163 | 163 | ||||||||||||||
Net revenues | 2,837 | — | — | 2,837 | ||||||||||||
Expenses | ||||||||||||||||
Operating | 1,153 | 1,153 | ||||||||||||||
Cost of vacation ownership interests | 136 | 136 | ||||||||||||||
Consumer financing interest | 102 | 102 | ||||||||||||||
Marketing and reservation | 423 | 423 | ||||||||||||||
General and administrative | 398 | (6 | ) (a) | 392 | ||||||||||||
Restructuring costs | 46 | (46 | ) (b) | — | ||||||||||||
Depreciation and amortization | 134 | 134 | ||||||||||||||
Total expenses | 2,392 | (6 | ) | (46 | ) | 2,340 | ||||||||||
Operating income | 445 | 6 | 46 | 497 | ||||||||||||
Other income, net | (4 | ) | (4 | ) | ||||||||||||
Interest expense | 79 | 79 | ||||||||||||||
Interest income | (5 | ) | (5 | ) | ||||||||||||
Income before income taxes | 375 | 6 | 46 | 427 | ||||||||||||
Provision for income taxes | 155 | — | (c) | 18 | (c) | 173 | ||||||||||
Net income | $ | 220 | $ | 6 | $ | 28 | $ | 254 | ||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 1.23 | $ | 0.03 | $ | 0.16 | $ | 1.42 | ||||||||
Diluted | 1.21 | 0.03 | 0.16 | 1.40 | ||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 178 | 178 | 178 | 178 | ||||||||||||
Diluted | 181 | 181 | 181 | 181 |
(a) | Relates to the net expense from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Relates to costs incurred as a result of various strategic initiatives commenced by the Company during 2008. | |
(c) | Relates to the tax effect of the adjustments. |
`Table 8
(3 of 4)
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended September 30, 2008 | ||||||||||||||||
Legacy | Restructuring | |||||||||||||||
As Adjusted | Adjustments | Costs | As Adjusted | |||||||||||||
Net revenues | ||||||||||||||||
Service fees and membership | $ | 468 | $ | 468 | ||||||||||||
Vacation ownership interest sales | 446 | 446 | ||||||||||||||
Franchise fees | 153 | 153 | ||||||||||||||
Consumer financing | 111 | 111 | ||||||||||||||
Other | 48 | 48 | ||||||||||||||
Net revenues | 1,226 | — | — | 1,226 | ||||||||||||
Expenses | ||||||||||||||||
Operating | 439 | 439 | ||||||||||||||
Cost of vacation ownership interests | 86 | 86 | ||||||||||||||
Consumer financing interest | 34 | 34 | ||||||||||||||
Marketing and reservation | 232 | 232 | ||||||||||||||
General and administrative | 140 | (1) | (a) | 139 | ||||||||||||
Restructuring costs | 6 | (6 | ) (b) | — | ||||||||||||
Depreciation and amortization | 47 | 47 | ||||||||||||||
Total expenses | 984 | (1 | ) | (6 | ) | 977 | ||||||||||
Operating income | 242 | 1 | 6 | 249 | ||||||||||||
Other income, net | (5 | ) | (5 | ) | ||||||||||||
Interest expense | 21 | 21 | ||||||||||||||
Interest income | (2 | ) | (2 | ) | ||||||||||||
Income before income taxes | 228 | 1 | 6 | 235 | ||||||||||||
Provision for income taxes | 86 | (1 | ) (c) | 2 | (c) | 87 | ||||||||||
Net income | $ | 142 | $ | 2 | $ | 4 | $ | 148 | ||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.80 | $ | 0.01 | $ | 0.02 | $ | 0.83 | ||||||||
Diluted | 0.80 | 0.01 | 0.02 | 0.83 | ||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 178 | 178 | 178 | 178 | ||||||||||||
Diluted | 178 | 178 | 178 | 178 |
(a) | Relates to the net expense from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Relates to costs incurred as a result of various strategic initiatives commenced by the Company during 2008. | |
(c) | Relates to the tax effect of the adjustment. |
Table 8
(4 of 4)
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Nine Months Ended September 30, 2008 | ||||||||||||||||||||
Legacy | Trademark | Restructuring | ||||||||||||||||||
As Reported | Adjustments | Impairment | Costs | As Adjusted | ||||||||||||||||
Net revenues | ||||||||||||||||||||
Service fees and membership | $ | 1,344 | $ | 1,344 | ||||||||||||||||
Vacation ownership interest sales | 1,153 | 1,153 | ||||||||||||||||||
Franchise fees | 402 | 402 | ||||||||||||||||||
Consumer financing | 314 | 314 | ||||||||||||||||||
Other | 157 | 157 | ||||||||||||||||||
Net revenues | 3,370 | — | — | — | 3,370 | |||||||||||||||
Expenses | ||||||||||||||||||||
Operating | 1,284 | 1,284 | ||||||||||||||||||
Cost of vacation ownership interests | 226 | 226 | ||||||||||||||||||
Consumer financing interest | 93 | 93 | ||||||||||||||||||
Marketing and reservation | 659 | 659 | ||||||||||||||||||
General and administrative | 438 | 4 | (a) | 442 | ||||||||||||||||
Trademark impairment | 28 | (28 | ) (b) | — | ||||||||||||||||
Restructuring costs | 6 | (6 | ) (c) | — | ||||||||||||||||
Depreciation and amortization | 137 | 137 | ||||||||||||||||||
Total expenses | 2,871 | 4 | (28 | ) | (6 | ) | 2,841 | |||||||||||||
Operating income | 499 | (4 | ) | 28 | 6 | 529 | ||||||||||||||
Other income, net | (9 | ) | (9 | ) | ||||||||||||||||
Interest expense | 59 | 59 | ||||||||||||||||||
Interest income | (8 | ) | (8 | ) | ||||||||||||||||
Income before income taxes | 457 | (4 | ) | 28 | 6 | 487 | ||||||||||||||
Provision for income taxes | 175 | (5 | ) (d) | 11 | (d) | 2 | (d) | 183 | ||||||||||||
Net income | $ | 282 | $ | 1 | $ | 17 | $ | 4 | $ | 304 | ||||||||||
Earnings per share | ||||||||||||||||||||
Basic | $ | 1.59 | $ | 0.01 | $ | 0.10 | $ | 0.02 | $ | 1.71 | ||||||||||
Diluted | 1.58 | 0.01 | 0.10 | 0.02 | 1.71 | |||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||
Basic | 177 | 177 | 177 | 177 | 177 | |||||||||||||||
Diluted | 178 | 178 | 178 | 178 | 178 |
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) | Represents an impairment charge due to the Company’s initiative to rebrand its vacation ownership trademarks to the Wyndham brand. | |
(c) | Relates to costs incurred as a result of various strategic initiatives commenced by the Company during 2008. | |
(d) | Relates to the tax effect of the adjustments. |