EXHIBIT 99.1
Wyndham Worldwide Reports Strong Fourth Quarter and Full Year 2006 Results
Double Digit Revenue Growth in 4th Quarter Closes Out Banner Year
Company Announces New $400 Million Share Repurchase Program
Double Digit Revenue Growth in 4th Quarter Closes Out Banner Year
Company Announces New $400 Million Share Repurchase Program
PARSIPPANY, N.J. (February 13, 2007) — Wyndham Worldwide Corporation (NYSE:WYN) today announced
results for the three-months and year ended December 31, 2006.
Financial information discussed in this press release include both GAAP and non-GAAP measures,
which include or exclude certain items, or reflect pro forma adjustments, related to the Company’s
spin-off effective July 31, 2006. These non-GAAP measures differ from reported results and are
intended to illustrate what management believes are relevant period-over-period comparisons.
Non-GAAP measures are indicated as “Adjusted.” A complete reconciliation of reported GAAP results
to the comparable Adjusted information appears in the financial tables section of this press
release.
FOURTH QUARTER 2006 HIGHLIGHTS INCLUDE:
| • | Net income for the quarter was $92 million, or $0.48 per diluted share. Adjusted net income was $84 million or $0.44 per diluted share, at the upper end of company-issued guidance, or 11% ahead of last year’s results on an Adjusted basis. | ||
| • | Revenue increased 13% compared to the fourth quarter of 2005, with strong top-line growth across the Company’s three businesses: Lodging, Vacation Exchange and Rentals, and Vacation Ownership. |
| • | Lodging revenues grew 6% and franchise fees grew 5% compared to the fourth quarter of 2005. Wyndham Worldwide added approximately 10,000 net rooms to its hotel portfolio. | ||
| • | Positive momentum continued in the Vacation Exchange and Rentals business, with revenue increasing 13% compared to the fourth quarter of 2005. | ||
| • | Continued robust growth of the Vacation Ownership business, with gross vacation ownership interest sales increasing more than 30% compared to the fourth quarter of 2005 driven by strong increases in both tour flow and volume per guest. |
| • | The Company’s Board of Directors has authorized a new share repurchase program of $400 million. The Company recently completed a share repurchase announced in August 2006, under which it repurchased 13.5 million shares at an average price of $29.72. |
“We finished the year with great momentum in each of our three businesses,” said Stephen P. Holmes,
Wyndham Worldwide chairman and chief executive officer. “We posted double-digit revenue and
Adjusted EBITDA growth in the fourth quarter of 2006. Our portfolio of diverse brands, locations
and products gives us great financial stability, particularly since more than half of our revenue
stems from fees related to services for consumers and business partners. Our strength in leisure
accommodations allows us to capture share and expand our presence in a growing global travel
industry.”
Fourth Quarter 2006 Operating Results
Revenues for the fourth quarter of 2006 were $970 million, up 13% over the same period in 2005,
reflecting strong growth across the businesses. Adjusted EBITDA for the fourth quarter was $192
million,
excluding separation and related costs and the net benefit from the resolution of certain
contingent liabilities, compared to $164 million for the fourth quarter of 2005. Adjusted net
income for the fourth quarter of 2006 was $84 million or $0.44 per diluted earnings per share
excluding:
| • | $22 million after-tax separation and related costs associated with Wyndham Worldwide’s spin-off from Cendant Corporation (now Avis Budget Group) | ||
| • | A $30 million after-tax net benefit from the resolution of certain contingent liabilities |
Net income for the fourth quarter of 2006 was $92 million, compared to $91 million for the fourth
quarter of 2005. Net income for 2005 excludes stand-alone corporate costs and interest expense
associated with corporate debt since Wyndham Worldwide was a subsidiary of Cendant for all of 2005.
Had Wyndham Worldwide been a stand-alone, public company during the fourth quarter of 2005
compared to the fourth quarter of 2006, Adjusted net income would have increased 11% to $84 million
from $76 million.
Lodging (Wyndham Hotel Group)
Lodging revenues increased 6% to $152 million for the fourth quarter of 2006 compared to $144
million for the fourth quarter of 2005. EBITDA for the fourth quarter of 2006 was $47 million.
Adjusted EBITDA for the fourth quarter of 2006 increased 7% to $48 million (excluding separation
and related costs of $1 million) compared to EBITDA for the prior year period of $45 million.
EBITDA for the fourth quarter of 2006 includes incremental marketing expense of approximately $3
million associated with increasing Wyndham brand recognition.
RevPAR for the fourth quarter of 2006 increased 7% from the fourth quarter of 2005, excluding
Wyndham and Baymont. Including these brands, fourth quarter 2006 RevPAR was $31.41, a 6% increase
from the comparable prior year period.
At December 31, 2006, the Wyndham Hotel Group system consisted of nearly 6,500 properties with over
543,000 rooms, an increase of approximately 10,000 net rooms from the third quarter of 2006. The
Company’s hotel development pipeline as of December 31, 2006 included approximately 845 hotels and
approximately 92,000 rooms, of which approximately 15% are international and approximately 45% are
new construction.
Vacation Exchange and Rentals (RCI Global Vacation Network)
Vacation Exchange and Rentals revenues increased 13% to $266 million in the fourth quarter of 2006
from $235 million in the fourth quarter of 2005, reflecting continued momentum in transaction
volume, pricing and members.
Vacation exchange revenues were $110 million, an 8% increase compared to the fourth quarter of
2005. The average number of members as well as the annual dues and exchange revenue per member
increased 5% and 3%, respectively, from the fourth quarter of 2005, reflecting new members, higher
transaction volume and price increases implemented in the third quarter of 2006.
Vacation rentals revenues were $105 million, a 16% increase compared to the fourth quarter of 2005,
supported by improved inventory offerings, enhanced marketing and local economic conditions.
Vacation rental transactions and average net price per vacation rentals increased 6% and 9%,
respectively, from the fourth quarter of 2005.
Other ancillary revenues generated primarily from additional products and services provided to
affiliates and members were $51 million in the fourth quarter of 2006.
Vacation Exchange and Rentals EBITDA grew to $59 million for the fourth quarter of 2006, a 28%
increase compared to $46 million in the fourth quarter of 2005 which reflected a $14 million
restructuring charge taken to combine our vacation exchange and vacation rentals operations. Absent
that charge,
EBITDA was relatively flat due to continued investment during 2006 in new offerings to leverage our
leading position in the growing leisure travel industry worldwide.
Vacation Ownership (Wyndham Vacation Ownership)
Gross Vacation Ownership Interest sales were $469 million for the fourth quarter of 2006, up more
than 30% compared to the fourth quarter of 2005, driven by a 17% growth in tour flow and an 8%
increase in volume per guest. The strong tour flow growth was the result of ongoing development of
in-house sales programs, enhancements to local marketing efforts and continued industry demand.
Vacation Ownership fourth quarter 2006 revenues were $554 million and EBITDA was $89 million,
including separation and related costs of $15 million. Excluding separation and related costs,
Adjusted EBITDA for the fourth quarter of 2006 rose 18% compared to EBITDA for the fourth quarter
of 2005 of $88 million. These 2006 results reflect the adoption of SFAS No. 152, “Accounting for
Real Estate Time-Sharing Transactions,” which reduced comparative quarterly revenue by $63 million
and increased EBITDA by $5 million.
Wyndham Vacation Ownership active development pipeline consists of approximately 3,900 units in 15
U.S. states, the Virgin Islands and 3 foreign countries. The Company expects the pipeline to
support both new purchases of vacation ownership and upgrade sales to existing owners.
Full Year 2006 Operating Results
Revenues for full year 2006 were $3,842 million, up 11% compared to full year 2005, reflecting
strong growth across all the businesses. Full year 2006 Adjusted EBITDA was $762 million,
excluding separation and related costs and the net benefit from the resolution of certain
contingent liabilities, but including pro forma incremental stand-alone corporate costs, a 9%
increase over 2005 Adjusted EBITDA of $699 million. Full year EBITDA was $725 million compared to
$751 million in the prior year period including separation and related costs and the net benefit
from the resolution of certain contingent liabilities in 2006 and excluding pro forma incremental
stand-alone corporate costs for both periods.
Adjusted net income for full year 2006 was $339 million, excluding the cumulative effect of SFAS
No. 152, separation and related costs and the net benefit from the resolution of certain contingent
liabilities, but including pro forma incremental stand-alone corporate costs. Income before the
cumulative effect of SFAS No. 152 for full year 2006 was $352 million, compared to $431 million for
full year 2005. Net income for 2005 excludes stand-alone corporate costs and interest expense
associated with corporate debt since Wyndham Worldwide was a subsidiary of Cendant for all of 2005.
Full year 2006 highlights include:
| • | Lodging revenues grew by 24% | ||
| • | Franchise fees grew 15% | ||
| • | RevPAR grew nearly 13% | ||
| • | Vacation exchange and rentals revenues were up 5% | ||
| • | Gross Vacation Ownership Interest Sales grew more than 25% |
Holmes continued: “2006 was a landmark year for Wyndham Worldwide. We exceeded our initial revenue
guidance and hit our Adjusted EBITDA guidance, despite taking the previously reported second
quarter 2006 $21 million tax accrual; excluding the accrual, we would have exceeded our Adjusted
EBITDA guidance. These results would be commendable in any year, but are extraordinary in light of
our corporate and operating initiatives this year: our transformation into an independent, publicly
traded company, the integration of two hotel companies, and the re-branding of our vacation
ownership business to Wyndham.”
Balance Sheet
The Company provided the following balance sheet data as of December 31, 2006:
| • | Cash and cash equivalents of approximately $270 million compared to $99 million at December 31, 2005 | ||
| • | Vacation ownership contract receivables, net, of $2.4 billion compared to $2.1 billion at December 31, 2005 | ||
| • | Vacation ownership inventory of approximately $955 million, including approximately $170 million related to the effect of SFAS No. 152. Excluding the effect of SFAS No. 152, inventory was approximately $785 million compared to $636 million at December 31, 2005 | ||
| • | Securitized vacation ownership debt of $1.5 billion and other debt of $1.4 billion as of December 31, 2006 |
A debt table is included in the financial tables section of this press release.
Outlook
Wyndham Worldwide reiterates the following full year 2007 guidance:
| • | Revenue of $4,110 – $4,260 million | ||
| • | Adjusted EBITDA of $820 – $855 million, excluding separation and related costs of $10 – $20 million ($6 – $12 million, after-tax), as well as legacy matters | ||
| • | Full year depreciation and amortization expense of $160 – $170 million | ||
| • | Interest expense of $75 – $85 million | ||
| • | Provision for income taxes of $215 – $236 million | ||
| • | Adjusted net income of $350 – $385 million |
New company guidance for 2007:
| • | Full year Adjusted EPS increased from $1.77 – $1.95 to $1.84 – $2.02, excluding separation and related costs, as well as legacy matters, based on a diluted share count of approximately 190 million at December 31, 2006 (prior share count guidance was 198 million) | ||
| • | First quarter Adjusted EPS of $0.37 – $0.40, excluding separation and related costs, as well as legacy matters |
Share Repurchase
On August 24, 2006, Wyndham Worldwide announced the launch of a stock repurchase program of up to
$400 million. Through December 31, 2006, the Company had repurchased 11.9 million shares at an
average price of $29.35. During January 2007, the Company repurchased an additional 1.6 million
shares, completing the program with 13.5 million shares purchased at an average price of $29.72.
Wyndham Worldwide today announced that its Board of Directors has authorized a new stock repurchase
program that enables the Company to purchase up to $400 million of its common stock. The amount
and timing of specific repurchases are subject to market conditions, applicable legal requirements
and other factors. Repurchases may be conducted in the open market or in privately negotiated
transactions.
“We believe our stock is a terrific value and that a repurchase program is an effective way to
enhance shareholder value,” added Holmes. “2006 was a banner year and we look forward to continued
growth in 2007: growth in our global presence, expansion of our Wyndham brand across our hotels
and vacation ownership resorts and growth in consumer preference for our brands. We are
well-positioned to benefit from many consumer trends through our global reach, familiar brands and
unparalleled scale. I am pleased with what we’ve accomplished, but, more importantly, with what we
see in the future for Wyndham Worldwide.”
Wyndham Worldwide Corporation will provide a webcast of its conference call to discuss the
Company’s fourth-quarter and full year 2006 financial results on Tuesday, February 13 at 9 a.m.
EST. Listeners may access the webcast live through the Company’s Web site at
www.wyndhamworldwide.com/investors/. An archive of this webcast will be available at the Web site
for approximately 90 days beginning at noon EST on February 13. The conference call also may be
accessed by dialing (517) 308-9029 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) 369-0940 beginning at noon EST on February 13 until 5 p.m. EST on February 18.
As one of the world’s largest hospitality companies, Wyndham Worldwide offers individual consumers
and business-to-business customers a broad suite of hospitality products and services across
various accommodation alternatives and price ranges through its premier portfolio of world-renowned
brands. Wyndham Hotel Group encompasses almost 6,500 franchised hotels and over 543,000 hotel rooms
worldwide. RCI Global Vacation Network offers its more than 3.4 million members access to over
60,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership
develops, markets and sells vacation ownership interests and provides consumer financing to owners
through its network of approximately 150 vacation ownership resorts serving over 800,000 owners
throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in
Parsippany, N.J., employs more than 30,000 employees globally.
For more information about Wyndham Worldwide, please visit the company’s web site at
www.wyndhamworldwide.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, conveying management’s expectations as to the future
based on plans, estimates and projections at the time the Company makes the statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking
statements. The forward-looking statements contained in this press release include statements
related to trends for the Company’s revenues, earnings and related financial and operating
measures, the number of hotels and resorts the Company intends to add in future periods, debt
levels, rebranding initiatives and share repurchases.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only
as of the date of this press release. Factors that could cause actual results to differ materially
from those in the forward looking statements include general economic conditions, the economic
environment for the hospitality industry, the impact of war and terrorist activity, operating risks
associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well
as those specified in the Company’s Quarterly Report on Form 10-Q, filed August 18, 2006 under the
heading “Risk Factors.” 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 contact:
|
Press contact: | |
Margo C. Happer
|
Betsy O’Rourke | |
Senior Vice President, Investor Relations
|
Senior Vice President, Marketing and Communications | |
Wyndham Worldwide Corporation
|
Wyndham Worldwide Corporation | |
(973) 753-6472
|
(973) 753-7422 | |
Margo.Happer@wyndhamworldwide.com
|
Betsy.O’Rourke@wyndhamworldwide.com |
Table 1
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
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 revenue and “EBITDA,” which is defined as net income before depreciation and
amortization, interest expense (excluding interest on securitized vacation ownership debt) and
income taxes, 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 revenues and EBITDA for reportable segments, as well as reconcile
EBITDA to net income for the three month and twelve month periods ended December 31, 2006 and 2005:
| Three Months Ended December 31, | ||||||||||||||||
| 2006 | 2005 | |||||||||||||||
| Revenues | EBITDA (a) | Revenues | EBITDA | |||||||||||||
Lodging |
$ | 152 | $ | 47 | $ | 144 | $ | 45 | ||||||||
Vacation Exchange and Rentals |
266 | 59 | 235 | 46 | ||||||||||||
Vacation Ownership |
554 | 89 | 481 | 88 | ||||||||||||
Total Reportable Segments |
972 | 195 | 860 | 179 | ||||||||||||
Corporate and Other (*) |
(2 | ) | 6 | 1 | (2 | ) | ||||||||||
Total Company |
$ | 970 | $ | 201 | $ | 861 | $ | 177 | ||||||||
Reconciliation
of EBITDA to Net Income |
||||||||||||||||
EBITDA |
$ | 201 | $ | 177 | ||||||||||||
Depreciation and amortization |
41 | 33 | ||||||||||||||
Interest expense (income), net |
14 | (8 | ) | |||||||||||||
Income before income taxes |
146 | 152 | ||||||||||||||
Provision for income taxes |
54 | 61 | ||||||||||||||
Net income |
$ | 92 | $ | 91 | ||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||||
| 2006 | 2005 | |||||||||||||||
| Revenues | EBITDA (b) | Revenues | EBITDA | |||||||||||||
Lodging |
$ | 661 | $ | 208 | $ | 533 | $ | 197 | ||||||||
Vacation Exchange and Rentals |
1,119 | 265 | 1,068 | 284 | ||||||||||||
Vacation Ownership |
2,068 | 325 | 1,874 | 283 | ||||||||||||
Total Reportable Segments |
3,848 | 798 | 3,475 | 764 | ||||||||||||
Corporate and Other (*) |
(6 | ) | (73 | ) | (4 | ) | (13 | ) | ||||||||
Total Company |
$ | 3,842 | $ | 725 | $ | 3,471 | $ | 751 | ||||||||
Reconciliation
of EBITDA to Net Income |
||||||||||||||||
EBITDA |
$ | 725 | $ | 751 | ||||||||||||
Depreciation and amortization |
148 | 131 | ||||||||||||||
Interest expense (income), net |
35 | (6 | ) | |||||||||||||
Income before income taxes |
542 | 626 | ||||||||||||||
Provision for income taxes |
190 | 195 | ||||||||||||||
Income before cumulative effect of accounting
change |
352 | 431 | ||||||||||||||
Cumulative effect of accounting change, net of tax |
(65 | ) | — | |||||||||||||
Net income |
$ | 287 | $ | 431 | ||||||||||||
| (*) | Includes the elimination of transactions between segments; excludes incremental stand alone company costs for 2005 and through July 31, 2006. | |
| (a) | Includes separation and related costs of $1 million, $15 million and $7 million for Lodging, Vacation Ownership and Corporate and Other, respectively. | |
| (b) | Includes separation and related costs of $2 million, $3 million, $18 million and $76 million for Lodging, Vacation Exchange and Rentals, Vacation Ownership and Corporate and Other, respectively. |
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenues |
||||||||||||||||
Vacation ownership interest sales |
$ | 379 | $ | 358 | $ | 1,461 | $ | 1,379 | ||||||||
Service fees and membership |
348 | 305 | 1,437 | 1,288 | ||||||||||||
Franchise fees |
112 | 105 | 501 | 434 | ||||||||||||
Consumer financing |
79 | 64 | 291 | 234 | ||||||||||||
Other |
52 | 29 | 152 | 136 | ||||||||||||
Net revenues |
970 | 861 | 3,842 | 3,471 | ||||||||||||
Expenses |
||||||||||||||||
Operating |
391 | 320 | 1,474 | 1,199 | ||||||||||||
Cost of vacation ownership interests |
78 | 90 | 317 | 341 | ||||||||||||
Marketing and reservation |
168 | 142 | 734 | 628 | ||||||||||||
General and administrative (a) |
109 | 101 | 493 | 424 | ||||||||||||
Provision for loan losses |
— | 31 | — | 128 | ||||||||||||
Separation and related costs (b) |
23 | — | 99 | — | ||||||||||||
Depreciation and amortization |
41 | 33 | 148 | 131 | ||||||||||||
Total expenses |
810 | 717 | 3,265 | 2,851 | ||||||||||||
Operating income |
160 | 144 | 577 | 620 | ||||||||||||
Interest expense (income), net |
14 | (8 | ) | 35 | (6 | ) | ||||||||||
Income before income taxes |
146 | 152 | 542 | 626 | ||||||||||||
Provision for income taxes |
54 | 61 | 190 | 195 | ||||||||||||
Income before cumulative effect of accounting change |
92 | 91 | 352 | 431 | ||||||||||||
Cumulative effect of accounting change, net of tax (c) |
— | — | (65 | ) | — | |||||||||||
Net income |
$ | 92 | $ | 91 | $ | 287 | $ | 431 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
||||||||||||||||
Income before cumulative effect of accounting change |
$ | 0.48 | $ | 0.45 | $ | 1.78 | $ | 2.15 | ||||||||
Cumulative effect of accounting change |
— | — | (0.33 | ) | — | |||||||||||
Net income |
$ | 0.48 | $ | 0.45 | $ | 1.45 | $ | 2.15 | ||||||||
Diluted |
||||||||||||||||
Income before cumulative effect of accounting change |
$ | 0.48 | $ | 0.45 | $ | 1.77 | $ | 2.15 | ||||||||
Cumulative effect of accounting change |
— | — | (0.33 | ) | — | |||||||||||
Net income |
$ | 0.48 | $ | 0.45 | $ | 1.44 | $ | 2.15 | ||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
193 | 200 | 198 | 200 | ||||||||||||
Diluted |
194 | 200 | 199 | 200 | ||||||||||||
| (a) | Includes $32 million related to the net benefit from the resolution of certain contingent liabilities during the three and twelve months ended December 31, 2006. | |
| (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 and $69 million during the three and twelve months ended December 31, 2006, respectively. | |
| (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
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Wyndham Worldwide Corporation
OPERATING STATISTICS
OPERATING STATISTICS
| Year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||
Lodging(a) |
||||||||||||||||||||||||
Weighted Average Rooms Available |
2006 | 520,600 | 531,000 | 529,200 | 529,900 | (b) | 527,700 | (b) | ||||||||||||||||
| 2005 | 517,400 | 512,000 | 511,500 | 535,100 | 519,000 | |||||||||||||||||||
| 2004 | 512,000 | 510,700 | 507,300 | 503,000 | 508,200 | |||||||||||||||||||
| 2003 | 532,900 | 525,600 | 522,400 | 518,200 | 524,700 | |||||||||||||||||||
Number of Properties |
2006 | 6,300 | 6,440 | 6,420 | 6,470 | (b) | N/A | |||||||||||||||||
| 2005 | 6,400 | 6,380 | 6,350 | 6,350 | N/A | |||||||||||||||||||
| 2004 | 6,380 | 6,390 | 6,350 | 6,400 | N/A | |||||||||||||||||||
| 2003 | 6,500 | 6,480 | 6,430 | 6,400 | N/A | |||||||||||||||||||
RevPAR |
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 | ||||||||||||||
| 2003 | $ | 22.05 | $ | 27.50 | $ | 31.38 | $ | 22.71 | $ | 25.92 | ||||||||||||||
Royalty, Marketing and Reservation
Revenue (in 000s) |
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 | ||||||||||||||
| 2003 | $ | 76,048 | $ | 95,280 | $ | 108,828 | $ | 77,277 | $ | 357,432 | ||||||||||||||
Vacation Exchange and Rentals |
||||||||||||||||||||||||
Average Number of Members (in 000s) |
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 | |||||||||||||||||||
| 2003 | 2,929 | 2,925 | 2,954 | 2,982 | 2,948 | |||||||||||||||||||
Annual Dues and Exchange Revenue Per Member |
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 | ||||||||||||||
| 2003 | $ | 145.99 | $ | 129.37 | $ | 128.99 | $ | 120.37 | $ | 131.13 | ||||||||||||||
Vacation Rental Transactions (in 000s) |
2006 | 385 | 310 | 356 | 293 | 1,344 | ||||||||||||||||||
| 2005 | 367 | 311 | 344 | 278 | 1,300 | |||||||||||||||||||
| 2004 | 309 | 246 | 295 | 253 | 1,104 | |||||||||||||||||||
| 2003 | 290 | 192 | 206 | 194 | 882 | |||||||||||||||||||
Average Net Price Per Vacation Rental |
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 | ||||||||||||||
| 2003 | $ | 233.49 | $ | 255.62 | $ | 247.46 | $ | 265.72 | $ | 248.65 | ||||||||||||||
Vacation Ownership |
||||||||||||||||||||||||
Gross Vacation Ownership Interest
Sales (in 000s) |
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 | ||||||||||||||
| 2003 | $ | 224,000 | $ | 302,000 | $ | 330,000 | $ | 290,000 | $ | 1,146,000 | ||||||||||||||
Tours |
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 | |||||||||||||||||||
| 2003 | 196,000 | 253,000 | 275,000 | 200,000 | 925,000 | |||||||||||||||||||
Volume per Guest (VPG) |
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 | ||||||||||||||
| 2003 | $ | 1,067 | $ | 1,082 | $ | 1,127 | $ | 1,293 | $ | 1,138 | ||||||||||||||
| 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) | Amounts include managed hotels-non-proprietary brands rooms and properties. |
Table 3
Page 2 of 2
Page 2 of 2
Wyndham Worldwide Corporation
OPERATING STATISTICS
OPERATING STATISTICS
GLOSSARY OF TERMS
Lodging
Weighted Average Rooms Available: Represents the weighted average number of hotel rooms
available for rental for the period at lodging properties.
Number of Properties: Represents the number of lodging properties operated under franchise
and management agreements at the end of the period.
RevPAR: Represents revenue per available room and is calculated by multiplying the
percentage of available rooms occupied for the period by the average rate charged for renting a
lodging room for one day.
Royalty, Marketing and Reservation Revenue: Royalty, marketing and reservation revenue are
typically based on a percentage of the gross room revenues of each franchise. Royalty revenue is
generally a fee charged to each franchise for the use of one of our trade names, while marketing
and reservation revenue are fees that we collect and are contractually obligated to spend to
support marketing and reservation activities.
Vacation
Exchange and Rentals
Average Number of Members: Represents members in our vacation exchange programs who pay
annual membership dues. For additional fees, such participants are entitled to exchange intervals
for intervals at other properties affiliated with our vacation exchange business. In addition,
certain participants may exchange intervals for other leisure-related products and services.
Annual Dues and Exchange Revenue Per Member: Represents total revenues from annual
membership dues and exchange fees generated for the period divided by the average number of
vacation exchange members during the year.
Vacation Rental Transactions: Represents the gross number of transactions that are
generated in connection with customers booking their vacation rental stays through us. In our
European vacation rental 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 is 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 is a component of
upgrade sales, by the number of tours.
Table 4
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
SCHEDULE OF DEBT
(In millions)
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2006 | 2006 | 2006 | 2006 | 2005 | ||||||||||||||||
Securitized vacation ownership debt |
||||||||||||||||||||
Term notes |
$ | 838 | $ | 967 | $ | 575 | $ | 656 | $ | 740 | ||||||||||
Bank conduit facility (a) |
625 | 371 | 653 | 511 | 395 | |||||||||||||||
Securitized vacation ownership debt (b) |
1,463 | 1,338 | 1,228 | 1,167 | 1,135 | |||||||||||||||
Less: Current portion of securitized vacation ownership debt |
178 | 213 | 210 | 184 | 154 | |||||||||||||||
Long-term securitized vacation ownership debt |
$ | 1,285 | $ | 1,125 | $ | 1,018 | $ | 983 | $ | 981 | ||||||||||
Debt: |
||||||||||||||||||||
6.00% Senior unsecured notes (due December 2016) (c) |
$ | 796 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Revolving credit facility (due July 2011) (d) |
— | 150 | — | — | — | |||||||||||||||
Interim loan facility (due July 2007) |
— | 350 | — | — | — | |||||||||||||||
Term loan (due July 2011) |
300 | 300 | — | — | — | |||||||||||||||
Vacation ownership asset-linked facility (e) |
— | — | 600 | 575 | 550 | |||||||||||||||
Bank borrowings: |
||||||||||||||||||||
Vacation ownership |
103 | 113 | 111 | 104 | 113 | |||||||||||||||
Vacation rental |
73 | 70 | 70 | 66 | 68 | |||||||||||||||
Vacation rental capital leases |
148 | 144 | 145 | 141 | 139 | |||||||||||||||
Other |
17 | 37 | 35 | 35 | 37 | |||||||||||||||
Total debt |
1,437 | 1,164 | 961 | 921 | 907 | |||||||||||||||
Less: Current portion of debt |
115 | 143 | 207 | 196 | 201 | |||||||||||||||
Long-term debt |
$ | 1,322 | $ | 1,021 | $ | 754 | $ | 725 | $ | 706 | ||||||||||
| (a) | This 364-day vacation ownership bank conduit facility was renewed and upsized to $1,000 million on November 13, 2006. The borrowings under this facility have a maturity date of December 2009. | |
| (b) | This debt is collateralized by $1,844 million, $1,718 million, $1,624 million, $1,556 million and $1,515 million of underlying vacation ownership contract receivables and related assets at December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively. | |
| (c) | These notes represent $800 million aggregate principal less $4 million of original issue discount. | |
| (d) | The Company’s revolving credit facility has a borrowing capacity of $900 million. At December 31, 2006, the Company has $30 million of outstanding letters of credit and a remaining borrowing capacity of $870 million. | |
| (e) | The Company provided $600 million to its former parent, Cendant (now Avis Budget Group, Inc.) to repay this facility in July 2006. |
Table 5
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
HOTEL BRAND SYSTEMS DETAILS
| December 31, 2006 | ||||||||||||||||||||
| Average Revenue | ||||||||||||||||||||
| Number of | Average | Average Daily | Per Available | |||||||||||||||||
| Brand | Properties | Number of Rooms | Occupancy Rate | Rate (ADR) | Room (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(a) |
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 | ||||||||||||
Managed Hotels -
Non-Proprietary Brands
(b) |
17 | 4,993 | N/A | N/A | N/A | |||||||||||||||
Total |
6,473 | 543,234 | 53.4 | % | $ | 65.44 | $ | 34.95 | ||||||||||||
| December 31, 2005 | ||||||||||||||||||||
| Average Revenue | ||||||||||||||||||||
| Number of | Average | Average Daily | Per Available | |||||||||||||||||
| Brand | Properties | Number of Rooms | Occupancy Rate | Rate (ADR) | Room (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts(a) |
101 | 29,651 | 62.1 | % | $ | 102.46 | $ | 63.66 | ||||||||||||
Wingate Inn |
146 | 13,573 | 63.9 | % | $ | 78.33 | $ | 50.08 | ||||||||||||
Ramada |
916 | 108,937 | 53.4 | % | $ | 66.61 | $ | 35.60 | ||||||||||||
AmeriHost Inn |
114 | 8,194 | 56.4 | % | $ | 60.69 | $ | 34.24 | ||||||||||||
Days Inn |
1,844 | 150,302 | 50.2 | % | $ | 57.65 | $ | 28.96 | ||||||||||||
Super 8 |
2,040 | 124,031 | 53.7 | % | $ | 53.36 | $ | 28.65 | ||||||||||||
Howard Johnson |
458 | 43,430 | 48.4 | % | $ | 60.12 | $ | 29.10 | ||||||||||||
Travelodge |
513 | 38,410 | 48.9 | % | $ | 57.44 | $ | 28.09 | ||||||||||||
Knights Inn |
216 | 16,141 | 42.2 | % | $ | 38.34 | $ | 16.19 | ||||||||||||
Total |
6,348 | 532,669 | 51.9 | % | $ | 59.78 | $ | 31.00 | ||||||||||||
| (a) | Average Occupancy Rate, ADR and RevPAR include the impact of the acquisitions of Baymont Inn & Suites (April 2006) and Wyndham Hotel and Resorts (October 2005) from their acquisition dates forward. | |
| (b) | Thirteen of these properties are scheduled to be branded as either Wyndham or Ramada during 2007. |
Table 6
(1 of 2)
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION
(In millions, except per share data)
NON-GAAP RECONCILIATION
(In millions, except per share data)
| Three Months Ended | Year Ended | |||||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
| 2006 | 2006 | 2006 | 2006 | 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) |
$ | 2 | $ | (11 | ) | $ | (12 | ) | $ | (14 | ) | $ | (35 | ) | ||||||
Incremental stand-alone costs (b) |
(12 | ) | (12 | ) | (4 | ) | — | (28 | ) | |||||||||||
Adjusted Interest Expense |
$ | (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 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 EPS |
$ | 0.39 | $ | 0.31 | $ | 0.56 | $ | 0.44 | $ | 1.70 | ||||||||||
Diluted Shares (g) |
200 | 200 | 203 | 194 | 199 | |||||||||||||||
| Note: | EPS amounts may not foot down or across due to rounding. | |
| (a) | Represents the costs incurred in connection with the Company’s separation from Cendant (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 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 refinements in the Company’s 2005 state effective tax rates. | |
| (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) | For all periods prior to our separation date (July 31, 2006), the Company assumed one share of Wyndham common stock outstanding for every five shares of Cendant common stock outstanding as of July 21, 2006, the record date for the distribution of Wyndham common stock. |
Table 6
(2 of 2)
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION
(In millions, except per share data)
NON-GAAP RECONCILIATION
(In millions, except per share data)
| Three Months Ended | Year Ended | |||||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
| 2005 | 2005 | 2005 | 2005 | 2005 | ||||||||||||||||
Reported EBITDA |
$ | 159 | $ | 182 | $ | 233 | $ | 177 | $ | 751 | ||||||||||
Incremental stand-alone costs (a) |
(13 | ) | (13 | ) | (13 | ) | (13 | ) | (52 | ) | ||||||||||
Adjusted EBITDA |
$ | 146 | $ | 169 | $ | 220 | $ | 164 | $ | 699 | ||||||||||
Reported Depreciation and Amortization |
$ | (32 | ) | $ | (33 | ) | $ | (33 | ) | $ | (33 | ) | $ | (131 | ) | |||||
Incremental stand-alone costs (a) |
(1 | ) | (1 | ) | (1 | ) | (1 | ) | (4 | ) | ||||||||||
Adjusted Depreciation and Amortization |
$ | (33 | ) | $ | (34 | ) | $ | (34 | ) | $ | (34 | ) | $ | (135 | ) | |||||
Reported Interest Income/(Expense) |
$ | (2 | ) | $ | (1 | ) | $ | 1 | $ | 8 | $ | 6 | ||||||||
Incremental stand-alone costs (a) |
(12 | ) | (12 | ) | (12 | ) | (11 | ) | (47 | ) | ||||||||||
Adjusted Interest Expense |
$ | (14 | ) | $ | (13 | ) | $ | (11 | ) | $ | (3 | ) | $ | (41 | ) | |||||
Reported PreTax Income |
$ | 125 | $ | 148 | $ | 201 | $ | 152 | $ | 626 | ||||||||||
Incremental stand-alone costs (a) |
(26 | ) | (26 | ) | (26 | ) | (25 | ) | (103 | ) | ||||||||||
Adjusted PreTax Income |
$ | 99 | $ | 122 | $ | 175 | $ | 127 | $ | 523 | ||||||||||
Reported
Tax (Provision)/Benefit |
$ | 5 | $ | (59 | ) | $ | (80 | ) | $ | (61 | ) | $ | (195 | ) | ||||||
Incremental stand-alone costs (b) |
10 | 10 | 10 | 10 | 40 | |||||||||||||||
Adjusted
Tax (Provision)/Benefit |
$ | 15 | $ | (49 | ) | $ | (70 | ) | $ | (51 | ) | $ | (155 | ) | ||||||
Reported Net Income |
$ | 130 | $ | 89 | $ | 121 | $ | 91 | 431 | |||||||||||
Incremental stand-alone costs |
(16 | ) | (16 | ) | (16 | ) | (15 | ) | (63 | ) | ||||||||||
Adjusted Net Income |
$ | 114 | $ | 73 | $ | 105 | $ | 76 | $ | 368 | ||||||||||
Reported EPS |
$ | 0.65 | $ | 0.44 | $ | 0.60 | $ | 0.45 | $ | 2.15 | ||||||||||
Incremental stand-alone costs |
(0.08 | ) | (0.08 | ) | (0.08 | ) | (0.07 | ) | (0.31 | ) | ||||||||||
Adjusted EPS |
$ | 0.57 | $ | 0.36 | $ | 0.52 | $ | 0.38 | $ | 1.84 | ||||||||||
Diluted
Shares (c) |
200 | 200 | 200 | 200 | 200 | |||||||||||||||
| Note: | EPS amounts may not foot across due to rounding. | |
| (a) | 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. | |
| (b) | Relates to the tax effect of the adjustments. | |
| (c) | For all periods prior to our separation date (July 31, 2006), the Company assumed one share of Wyndham common stock outstanding for every five shares of Cendant common stock outstanding as of July 21, 2006, the record date for the distribution of Wyndham common stock. |
Table 7
(1 of 5)
(1 of 5)
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 March 31, 2006 | ||||||||||||||||||||
| Separation and | Legacy and | Stand-Alone | ||||||||||||||||||
| Related | Other | Company | ||||||||||||||||||
| As Reported | Adjustments | Adjustments | Adjustments | As Adjusted | ||||||||||||||||
Revenues |
||||||||||||||||||||
Vacation ownership interest sales |
$ | 309 | $ | 309 | ||||||||||||||||
Service fees and membership |
356 | 356 | ||||||||||||||||||
Franchise fees |
109 | 109 | ||||||||||||||||||
Consumer financing |
65 | 65 | ||||||||||||||||||
Other |
31 | 31 | ||||||||||||||||||
Net revenues |
870 | — | — | — | 870 | |||||||||||||||
Expenses |
||||||||||||||||||||
Operating |
332 | 332 | ||||||||||||||||||
Cost of vacation ownership interests |
67 | 67 | ||||||||||||||||||
Marketing and reservation |
174 | 174 | ||||||||||||||||||
General and administrative |
112 | 13 | (b) | 125 | ||||||||||||||||
Separation and related costs |
3 | (3 | )(a) | — | ||||||||||||||||
Depreciation and amortization |
34 | 1 | (b) | 35 | ||||||||||||||||
Total expenses |
722 | (3 | ) | — | 14 | 733 | ||||||||||||||
Operating income |
148 | 3 | — | (14 | ) | 137 | ||||||||||||||
Interest expense (income), net |
(2 | ) | — | — | 12 | (b) | 10 | |||||||||||||
Income before income taxes |
150 | 3 | — | (26 | ) | 127 | ||||||||||||||
Provision for income taxes |
57 | 2 | (c) | — | (10 | )(c) | 49 | |||||||||||||
Income before cumulative effect of accounting change |
93 | 1 | — | (16 | ) | 78 | ||||||||||||||
Cumulative effect of accounting change, net of tax |
(65 | ) | — | 65 | (d) | — | — | |||||||||||||
Net income |
$ | 28 | $ | 1 | $ | 65 | $ | (16 | ) | $ | 78 | |||||||||
Earnings per share |
||||||||||||||||||||
Basic |
||||||||||||||||||||
Income before cumulative effect of accounting change |
$ | 0.46 | $ | — | $ | — | $ | (0.08 | ) | $ | 0.39 | |||||||||
Cumulative effect of accounting change |
(0.32 | ) | — | 0.32 | — | — | ||||||||||||||
Net income |
$ | 0.14 | $ | — | $ | 0.32 | $ | (0.08 | ) | $ | 0.39 | |||||||||
Diluted |
||||||||||||||||||||
Income before cumulative effect of accounting change |
$ | 0.46 | $ | — | $ | — | $ | (0.08 | ) | $ | 0.39 | |||||||||
Cumulative effect of accounting change |
(0.32 | ) | — | 0.32 | — | — | ||||||||||||||
Net income |
$ | 0.14 | $ | — | $ | 0.32 | $ | (0.08 | ) | $ | 0.39 | |||||||||
Weighted average shares outstanding |
||||||||||||||||||||
Basic |
200 | 200 | 200 | 200 | 200 | |||||||||||||||
Diluted |
200 | 200 | 200 | 200 | 200 | |||||||||||||||
| Note: | EPS amounts may not foot across due to rounding. | |
| (a) | Represents the costs incurred in connection with the Company’s separation from Cendant. | |
| (b) | Represents the Company’s estimate of incremental stand-alone corporate costs, depreciation and amortization and interest expense associated with corporate debt that the Company would have incurred if it was a separate stand-alone company. | |
| (c) | Relates to the tax effect of the adjustments. | |
| (d) | Represents non-cash charges to reflect the cumulative effect of adopting Statement of Financial Accounting Standards No. 152, ‘‘Accounting for Real Estate Time-Sharing Transactions,’’ on January 1, 2006. |
Table 7
(2 of 5)
(2 of 5)
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 June 30, 2006 | ||||||||||||||||
| Separation and | Stand-Alone | |||||||||||||||
| Related | Company | |||||||||||||||
| As Reported | Adjustments | Adjustments | As Adjusted | |||||||||||||
Revenues |
||||||||||||||||
Vacation ownership interest sales |
$ | 377 | $ | 377 | ||||||||||||
Service fees and membership |
341 | 341 | ||||||||||||||
Franchise fees |
134 | 134 | ||||||||||||||
Consumer financing |
70 | 70 | ||||||||||||||
Other |
33 | 33 | ||||||||||||||
Net revenues |
955 | — | — | 955 | ||||||||||||
Expenses |
||||||||||||||||
Operating |
369 | 369 | ||||||||||||||
Cost of vacation ownership interests |
80 | 80 | ||||||||||||||
Marketing and reservation |
194 | 194 | ||||||||||||||
General and administrative |
141 | 13 | (b) | 154 | ||||||||||||
Separation and related costs |
5 | (5 | )(a) | — | ||||||||||||
Depreciation and amortization |
36 | 1 | (b) | 37 | ||||||||||||
Total expenses |
825 | (5 | ) | 14 | 834 | |||||||||||
Operating income |
130 | 5 | (14 | ) | 121 | |||||||||||
Interest expense, net |
11 | — | 12 | (b) | 23 | |||||||||||
Income before income taxes |
119 | 5 | (26 | ) | 98 | |||||||||||
Provision for income taxes |
44 | 2 | (c) | (10 | )(c) | 36 | ||||||||||
Net income |
$ | 75 | $ | 3 | $ | (16 | ) | $ | 62 | |||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.37 | $ | 0.01 | $ | (0.08 | ) | $ | 0.31 | |||||||
Diluted |
$ | 0.37 | $ | 0.01 | $ | (0.08 | ) | $ | 0.31 | |||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
200 | 200 | 200 | 200 | ||||||||||||
Diluted |
200 | 200 | 200 | 200 | ||||||||||||
| Note: | EPS amounts may not foot across due to rounding. | |
| (a) | Represents the costs incurred in connection with the Company’s separation from Cendant. | |
| (b) | Represents the Company’s estimate of incremental stand-alone corporate costs, depreciation and amortization and interest expense associated with corporate debt that the Company would have incurred if it was a separate stand-alone company. | |
| (c) | Relates to the tax effect of the adjustments. |
Table 7
(3 of 5)
(3 of 5)
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, 2006 | ||||||||||||||||
| Separation and | Stand-Alone | |||||||||||||||
| Related | Company | |||||||||||||||
| As Reported | Adjustments | Adjustments | As Adjusted | |||||||||||||
Revenues |
||||||||||||||||
Vacation ownership interest sales |
$ | 396 | $ | 396 | ||||||||||||
Service fees and membership |
392 | 392 | ||||||||||||||
Franchise fees |
146 | 146 | ||||||||||||||
Consumer financing |
77 | 77 | ||||||||||||||
Other |
36 | 36 | ||||||||||||||
Net revenues |
1,047 | — | — | 1,047 | ||||||||||||
Expenses |
||||||||||||||||
Operating |
382 | 382 | ||||||||||||||
Cost of vacation ownership interests |
92 | 92 | ||||||||||||||
Marketing and reservation |
198 | 198 | ||||||||||||||
General and administrative |
131 | 4 | (b) | 135 | ||||||||||||
Separation and related costs |
68 | (68 | )(a) | — | ||||||||||||
Depreciation and amortization |
37 | 37 | ||||||||||||||
Total expenses |
908 | (68 | ) | 4 | 844 | |||||||||||
Operating income |
139 | 68 | (4 | ) | 203 | |||||||||||
Interest expense, net |
12 | — | 4 | (b) | 16 | |||||||||||
Income before income taxes |
127 | 68 | (8 | ) | 187 | |||||||||||
Provision for income taxes |
35 | 25 | (c) | 12 | (c) | 72 | ||||||||||
Net income |
$ | 92 | $ | 43 | $ | (20 | ) | $ | 115 | |||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.46 | $ | 0.22 | $ | (0.10 | ) | $ | 0.58 | |||||||
Diluted |
$ | 0.45 | $ | 0.21 | $ | (0.10 | ) | $ | 0.56 | |||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
200 | 200 | 200 | 200 | ||||||||||||
Diluted |
203 | 203 | 203 | 203 | ||||||||||||
| Note: | EPS amounts may not foot across due to rounding. | |
| (a) | Represents the costs incurred in connection with the Company’s separation from Cendant (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 and interest expense associated with corporate debt that the Company would have incurred if it was a separate stand-alone company. | |
| (c) | Relates to the tax effect of the adjustments and a $15 million benefit relating to refinements in the Company’s 2005 state effective tax rates. |
Table 7
(4 of 5)
(4 of 5)
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 December 31, 2006 | ||||||||||||||||
| Separation and | Legacy and | |||||||||||||||
| Related | Other | |||||||||||||||
| As Reported | Adjustments | Adjustments | As Adjusted | |||||||||||||
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, net |
14 | — | — | 14 | ||||||||||||
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. | |
| (b) | Relates to the net benefit from the resolution of certain contingent liabilities. | |
| (c) | Relates to the tax effect of the adjustments. |
Table 7
(5 of 5)
(5 of 5)
Wyndham Worldwide Corporation
NON-GAAP FINACIAL INFORMATION
(In millions, except per share data)
NON-GAAP FINACIAL INFORMATION
(In millions, except per share data)
| Twelve Months Ended December 31, 2006 | ||||||||||||||||||||
| Separation and | Legacy and | Stand-Alone | ||||||||||||||||||
| Related | Other | Company | ||||||||||||||||||
| As Reported | Adjustments | Adjustments | Adjustments | As Adjusted | ||||||||||||||||
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 (income), net |
35 | — | — | 28 | (c) | 63 | ||||||||||||||
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, net of tax |
(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 (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. | |
| (d) | Relates to the tax effect of the adjustments and a $15 million benefit relating to refinements 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. |