EXHIBIT 99.1
Wyndham Worldwide Reports Third Quarter 2010 Earnings
Results Exceed Expectations
Increases Full-Year Guidance
PARSIPPANY, N.J. (October 26, 2010) – Wyndham Worldwide Corporation (NYSE:WYN) today announced
results for the three months ended September 30, 2010.
HIGHLIGHTS:
| • |
|
Third quarter 2010 adjusted diluted earnings per share (EPS) was $0.68, compared with
Company-issued guidance of $0.60 – $0.64 and $0.58 in the third quarter of 2009. Third quarter
2010 reported diluted EPS was $0.84, an increase of 47% from the same period in 2009. |
| |
| • |
|
Free cash flow, which the Company defines as net cash provided by operating activities less
capital expenditures, equity investments and development advances and excluding previously
announced cash payments related to contingent IRS tax liabilities, increased 24% to $564
million in the first three quarters of 2010, compared with $454 million during the same period
in 2009. |
| |
| • |
|
During the quarter, the Company repurchased approximately 4.8 million shares of its common
stock at an average price of $25.07. |
| |
| • |
|
The Company announced on October 21, 2010 that it completed a term securitization
transaction involving the issuance of $300 million of investment-grade asset-backed notes at
an advance rate of 88% and an all-in yield of 3.7%. |
| |
| • |
|
On September 30, 2010, the Company’s Vacation Exchange & Rentals unit completed the
previously announced acquisition of ResortQuest, a leading provider of U.S. full-service
vacation rentals. |
“This quarter’s strong results reflect continued superior execution throughout our company and
further strengthening of business fundamentals,” said Stephen P. Holmes, chairman and CEO, Wyndham
Worldwide. “We continue to deploy free cash flow in a disciplined manner to drive growth and
deliver shareholder value, balancing tuck-in acquisitions, share repurchases, convertible debt
retirement and dividends.”
THIRD QUARTER 2010 OPERATING RESULTS
Third quarter revenues increased 5% from the prior year period to $1,065 million. Excluding the $36
million of Vacation Ownership revenue associated with the percentage-of-completion (POC) accounting
method in the third quarter of 2009, third quarter 2010 adjusted revenue growth was 9%. The
adjusted revenue growth primarily reflects continued sales momentum across the Company’s business
units.
For the third quarter of 2010, adjusted net income increased by 18% to $125 million, compared with
$106 million for the same period in 2009. The increase primarily reflects strong operational
performance by the Vacation Ownership business, higher RevPAR in the Lodging business and a lower
effective tax rate.
Reported net income for the third quarter of 2010 grew 50% to $156 million, or $0.84 per diluted
share, compared with net income of $104 million, or $0.57 per diluted share, for the third quarter
of 2009. The increase in reported net income from 2009 primarily reflects an after-tax $38 million
net benefit principally related to the resolution of the IRS examination of taxable years 2003
through 2006 of Cendant (Wyndham Worldwide’s former parent), partially offset by a $6 million
after-tax loss incurred for the repurchase of a portion of the Company’s 3.50% convertible notes.
Free cash flow totaled $564 million in the nine-month period ended September 30, 2010 compared with
$454 million in the same period in 2009. The growth of free cash flow reflects higher cash earnings
and more efficient working capital utilization. Cash provided by operating activities was $528
million for the nine months ended September 30, 2010, compared with $569 million for the prior-year
period.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $203 million in the third quarter of 2010, an increase of 11%, compared with the
third quarter of 2009, reflecting an increase in RevPAR and other franchise fees as well as higher
fees generated from ancillary services provided to franchisees, which are substantially offset in
EBITDA by related costs.
In the third quarter of 2010, RevPAR increased 6.7%, or 6.4% in constant currency. Third quarter
2010 EBITDA was $67 million, an increase of 16%, compared with third quarter of 2009.
As of September 30, 2010, the Company’s hotel system consisted of approximately 7,150 properties
and 605,700 rooms, flat from the second quarter of 2010. Approximately 25% of the Company’s hotel
system is international. The development pipeline included approximately 930 hotels and 107,500
rooms, of which 54% were new construction and 47% were international.
Vacation Exchange and Rentals (Wyndham Exchange & Rentals)
Revenues were $330 million in the third quarter of 2010, an increase of 1% compared with the third
quarter of 2009. In constant currency, revenues increased by 5%.
Exchange revenues were $163 million, relatively flat compared with the third quarter of 2009.
Exchange revenue per member and the average number of members were flat.
Vacation rental revenues were $161 million, a 3% increase compared with the third quarter of 2009.
In constant currency, vacation rental revenues increased 11% from the third quarter of 2009,
reflecting the contribution of incremental revenues from the recently acquired Hoseasons brand and
favorable pricing for bookings made close to arrival dates.
Third quarter 2010 Exchange and Rentals EBITDA was $103 million, a decrease of 4%, compared with
EBITDA of $107 million in the third quarter of 2009. Excluding an unfavorable net effect of foreign
currency of $2 million and $1 million of costs related to the acquisition of ResortQuest during
September 2010, third quarter 2010 adjusted EBITDA was relatively flat compared with the prior-year
period. This performance reflects the contribution of Hoseasons offset by increases in operating
expenses including value-added taxes.
Wyndham Exchange & Rentals acquired ResortQuest on September 30th. ResortQuest is a leading
provider of full-service vacation rentals in the U.S. and adds approximately 6,000 vacation rental
properties. With this acquisition, Wyndham Worldwide enters the U.S. vacation rental market and
becomes the world’s largest full-service vacation rental business, providing access to more than
85,000 vacation properties in approximately 100 countries.
Vacation Ownership (Wyndham Vacation Ownership)
Gross Vacation Ownership Interest (VOI) sales were $412 million in the third quarter of 2010, up
13% from the third quarter of 2009, reflecting an 8% increase in tour flow and a 7% increase in
volume per guest.
Total segment revenues were $533 million in the third quarter of 2010, compared with $508 million
in the third quarter of 2009, which included the recognition of $36 million of previously deferred
POC revenues. The absence of these revenues in the third quarter of 2010 was more than offset by an
increase in gross VOI sales and a lower provision for loan losses.
EBITDA for the third quarter of 2010 was $123 million, compared with EBITDA of $104 million in the
third quarter of 2009. Excluding an estimated $17 million impact from the POC method of accounting
in the third quarter of 2009, third quarter 2010 adjusted EBITDA growth was 41%. This growth
reflected the lower provision for loan losses and the increase in VOI sales.
Other Items
| |
• |
|
The Company repurchased approximately 4.8 million shares of its common stock during the
third quarter of 2010 at an average price of $25.07 and an additional 600,000 shares at an
average price of $28.72 through October 25, 2010. |
| |
| |
• |
|
On September 20, 2010, the Company completed the issuance of senior unsecured notes in
the amount of $250 million, which bear an interest rate of 5.75% per year and are due
February 1, 2018. |
| |
| |
• |
|
During the third quarter of 2010, the Company repurchased $92 million face value of its
3.50% convertible notes and retired the call options and warrants associated with these
notes. |
| |
| |
• |
|
Interest expense in the third quarter of 2010 was $47 million, an increase of $13
million from the third quarter of 2009, primarily reflecting a loss incurred for the
repurchase of a portion of the Company’s 3.50% convertible notes during the third quarter
of 2010. |
| |
| |
• |
|
On October 21, 2010, the Company announced that it completed a term securitization
transaction involving the issuance of $300 million of investment-grade, asset-backed notes
with an advance rate of 88%. Sierra Timeshare 2010-3 Receivables Funding LLC issued $250
million of A rated and $50 million of BBB rated notes, with coupons of 3.51% and 4.44%,
respectively, backed by vacation ownership loans. |
Balance Sheet Information as of September 30, 2010:
| |
• |
|
Cash and cash equivalents of approximately $170 million, compared with $155 million at
December 31, 2009 |
| |
| |
• |
|
Vacation ownership contract receivables, net, of $3.0 billion, compared with $3.1
billion at December 31, 2009 |
| |
| |
• |
|
Vacation ownership and other inventory of approximately $1.2 billion, compared with $1.3
billion at December 31, 2009 |
| |
| |
• |
|
Securitized vacation ownership debt of $1.6 billion, compared with $1.5 billion at
December 31, 2009 |
| |
| |
• |
|
Other debt of $2.0 billion, unchanged from December 31, 2009. The remaining borrowing
capacity on the revolving credit facility was $896 million, compared with $869 million as
of December 31, 2009. |
A schedule of debt is included in the financial tables section of this press release.
Outlook
The Company increased full-year 2010 guidance:
| |
• |
|
Adjusted EBITDA increased to $855 – $865 million from $825 – $860 million |
| |
| |
• |
|
Adjusted diluted EPS increased to $1.94 – $1.98 from $1.78 – $1.88 |
For the fourth quarter of 2010, the Company expects adjusted diluted EPS of $0.40 – $0.44,
including an estimated tax rate of 24%.
Management provided preliminary guidance for the full-year 2011:
| |
• |
|
Revenues of approximately $4.0 – $4.2 billion |
| |
| |
• |
|
Adjusted EBITDA of approximately $925 – $955 million |
The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy
items, restructuring costs, debt extinguishment and acquisition costs, if any, which may have a
positive or negative impact on reported results. If economic conditions change materially from
current levels, these assumptions and our guidance may change materially. It is not practicable to
provide a reconciliation of forecasted adjusted EBITDA and EPS to the most directly comparable GAAP
measures 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 hold a conference call with investors to discuss this news on
Tuesday, October 26, 2010 at 8:30 a.m. EDT. Listeners may access the webcast live through the
Company’s website at www.wyndhamworldwide.com/investors/. An archive of this
webcast will be available at the website for approximately 90 days beginning at noon EDT on October
26, 2010. The conference call may also be accessed by dialing (800) 369-2052 and providing the
passcode “WYNDHAM.” Listeners are urged to call at least 10 minutes prior to the scheduled start
time. A telephone replay will be available for approximately 90 days beginning at noon EDT on
October 26, 2010, at (800) 395-6236.
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.
About Wyndham Worldwide Corporation
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 7,150 franchised hotels and approximately
605,700 hotel rooms worldwide. Wyndham Exchange & Rentals offers leisure travelers, including its
3.8 million members, access to over 85,000 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 155 vacation ownership resorts
serving over 820,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham
Worldwide, headquartered in Parsippany, N.J., employs approximately 25,000 employees globally.
For more information about Wyndham Worldwide, please visit the Company’s website 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 the Company’s revenues, earnings, related financial and operating measures and debt
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 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 July 30, 2010. 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 Media contact:
Margo C. Happer
Senior Vice President, Investor Relations
Wyndham Worldwide Corporation
(973) 753-6472
margo.happer@wyn.com
Table 1
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and “EBITDA,” which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing
interest), interest income (excluding consumer financing interest) and income taxes, each of which is presented on the Company’s Consolidated Statements of Operations. 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 its 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, 2010 and 2009:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
| |
|
2010 |
|
|
2009 |
|
| |
|
Net Revenues |
|
|
EBITDA |
|
|
Net Revenues |
|
|
EBITDA |
|
Lodging |
|
$ |
203 |
|
|
$ |
67 |
|
|
$ |
183 |
|
|
$ |
58 |
|
Vacation Exchange and Rentals |
|
|
330 |
|
|
|
103 |
(d) |
|
|
327 |
|
|
|
107 |
|
Vacation Ownership |
|
|
533 |
|
|
|
123 |
(e) |
|
|
508 |
|
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable Segments |
|
|
1,066 |
|
|
|
293 |
|
|
|
1,018 |
|
|
|
269 |
|
Corporate and Other (a) (b) |
|
|
(1 |
) |
|
|
30 |
|
|
|
(2 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
|
$ |
1,065 |
|
|
$ |
323 |
|
|
$ |
1,016 |
|
|
$ |
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
$ |
323 |
|
|
|
|
|
|
$ |
254 |
|
Depreciation and amortization |
|
|
|
|
|
|
43 |
|
|
|
|
|
|
|
46 |
|
Interest expense |
|
|
|
|
|
|
47 |
(f) |
|
|
|
|
|
|
34 |
|
Interest income |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
|
|
|
235 |
|
|
|
|
|
|
|
175 |
|
Provision for income taxes |
|
|
|
|
|
|
79 |
|
|
|
|
|
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
$ |
156 |
|
|
|
|
|
|
$ |
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Nine Months Ended September 30, |
|
| |
|
2010 |
|
|
2009 |
|
| |
|
Net Revenues |
|
|
EBITDA |
|
|
Net Revenues |
|
|
EBITDA |
(j) |
Lodging |
|
$ |
525 |
|
|
$ |
148 |
(g) |
|
$ |
511 |
|
|
$ |
143 |
|
Vacation Exchange and Rentals |
|
|
912 |
|
|
|
261 |
(d) (h) |
|
|
894 |
|
|
|
240 |
|
Vacation Ownership |
|
|
1,483 |
|
|
|
310 |
(e) |
|
|
1,437 |
|
|
|
255 |
(k) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reportable Segments |
|
|
2,920 |
|
|
|
719 |
|
|
|
2,842 |
|
|
|
638 |
|
Corporate and Other (a) (c) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
|
$ |
2,914 |
|
|
$ |
715 |
|
|
$ |
2,837 |
|
|
$ |
583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
$ |
715 |
|
|
|
|
|
|
$ |
583 |
|
Depreciation and amortization |
|
|
|
|
|
|
128 |
|
|
|
|
|
|
|
134 |
|
Interest expense |
|
|
|
|
|
|
133 |
(f) (i) |
|
|
|
|
|
|
79 |
|
Interest income |
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
|
|
|
457 |
|
|
|
|
|
|
|
375 |
|
Provision for income taxes |
|
|
|
|
|
|
157 |
|
|
|
|
|
|
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
$ |
300 |
|
|
|
|
|
|
$ |
220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
|
Includes the elimination of transactions between segments. |
| |
| (b) |
|
Includes $52 million ($38 million, net of tax) of a net benefit and $2 million ($2 million, net of tax) of a net expense during the three months ended September 30, 2010 and 2009, respectively, related to the resolution of and adjustment
to certain contingent liabilities and assets. |
| |
| (c) |
|
Includes $51 million ($36 million, net of tax) of a net benefit and $6 million ($6 million, net of tax) of a net expense during the nine months ended September 30, 2010 and 2009, respectively, related to the resolution of and adjustment
to certain contingent liabilities and assets. |
| |
| (d) |
|
Includes $1 million ($1 million, net of tax) related to costs incurred in connection with the Company’s acquisition of ResortQuest during September 2010. |
| |
| (e) |
|
Includes a non-cash impairment charge of $4 million ($3 million, net of tax) to reduce the value of certain vacation ownership properties and related assets held for sale that are no longer consistent with the Company’s development plans. |
| |
| (f) |
|
Includes $11 million ($6 million, net of tax) of costs incurred for the early repurchase of a portion of the Company’s 3.50% convertible notes during the third quarter of 2010. |
| |
| (g) |
|
Includes $1 million ($1 million, net of tax) related to costs incurred in connection with the Company’s acquisition of the Tryp hotel brand during June 2010. |
| |
| (h) |
|
Includes $4 million ($3 million, net of tax) related to costs incurred in connection with the Company’s acquisition of Hoseasons Holdings Ltd. during March 2010. |
| |
| (i) |
|
Includes $16 million of costs incurred for the early extinguishment of the Company’s term loan facility and revolving foreign credit facility during March 2010. The after-tax impact of such costs is $10 million. |
| |
| (j) |
|
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. |
| |
| (k) |
|
Includes a non-cash impairment charge of $8 million ($6 million, net of tax) to reduce the value of certain vacation ownership properties and related assets held for sale that are no longer consistent with the Company’s development plans. |
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2010 |
|
|
2009 |
|
|
2010 |
|
|
2009 |
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees and membership |
|
$ |
464 |
|
|
$ |
445 |
|
|
$ |
1,298 |
|
|
$ |
1,241 |
|
Vacation ownership interest sales |
|
|
308 |
|
|
|
285 |
|
|
|
796 |
|
|
|
766 |
|
Franchise fees |
|
|
142 |
|
|
|
126 |
|
|
|
353 |
|
|
|
342 |
|
Consumer financing |
|
|
107 |
|
|
|
108 |
|
|
|
318 |
|
|
|
325 |
|
Other |
|
|
44 |
|
|
|
52 |
|
|
|
149 |
|
|
|
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
1,065 |
|
|
|
1,016 |
|
|
|
2,914 |
|
|
|
2,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (a) |
|
|
410 |
|
|
|
386 |
|
|
|
1,179 |
(b) |
|
|
1,145 |
|
Cost of vacation ownership interests |
|
|
52 |
|
|
|
54 |
|
|
|
138 |
|
|
|
136 |
|
Consumer financing interest |
|
|
27 |
|
|
|
35 |
|
|
|
80 |
|
|
|
102 |
|
Marketing and reservation |
|
|
149 |
|
|
|
149 |
|
|
|
410 |
|
|
|
423 |
|
General and administrative (c) |
|
|
101 |
|
|
|
140 |
|
|
|
394 |
|
|
|
398 |
|
Asset impairment |
|
|
4 |
(d) |
|
|
— |
|
|
|
4 |
(d) |
|
|
8 |
(e) |
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
(f) |
Depreciation and amortization |
|
|
43 |
|
|
|
46 |
|
|
|
128 |
|
|
|
134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
786 |
|
|
|
810 |
|
|
|
2,333 |
|
|
|
2,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
279 |
|
|
|
206 |
|
|
|
581 |
|
|
|
445 |
|
Other income, net |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
Interest expense |
|
|
47 |
(g) |
|
|
34 |
|
|
|
133 |
(g) |
|
|
79 |
|
Interest income |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
235 |
|
|
|
175 |
|
|
|
457 |
|
|
|
375 |
|
Provision for income taxes |
|
|
79 |
|
|
|
71 |
|
|
|
157 |
|
|
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
156 |
|
|
$ |
104 |
|
|
$ |
300 |
|
|
$ |
220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.88 |
|
|
$ |
0.58 |
|
|
$ |
1.68 |
|
|
$ |
1.23 |
|
Diluted |
|
|
0.84 |
|
|
|
0.57 |
|
|
|
1.62 |
|
|
|
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
177 |
|
|
|
179 |
|
|
|
179 |
|
|
|
178 |
|
Diluted |
|
|
184 |
|
|
|
183 |
|
|
|
186 |
|
|
|
181 |
|
|
|
|
| (a) |
|
Includes $1 million ($1 million, net of tax) during both the three and nine months ended September 30, 2010 related to the Company’s September 2010 acquisition of ResortQuest. |
| |
| (b) |
|
Includes (i) $1 million ($1 million, net of tax) related to costs incurred in connection with the Company’s June 2010 acquisition of the Tryp hotel brand and (ii) $4 million ($3 million, net of tax) of costs incurred in connection with the Company’s March 2010 acquisition of Hoseasons Holdings Ltd. |
| |
| (c) |
|
Includes $52 million ($38 million, net of tax) of a net benefit and $2 million ($2 million, net of tax) of a net expense during the three months ended September 30, 2010 and 2009, respectively, and $51 million ($36 million, net of tax) of a net benefit and $6 million ($6 million, net of tax) of a net expense during the nine months
ended September 30, 2010 and 2009, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. |
| |
| (d) |
|
Relates to non-cash impairment charges to reduce the value of certain vacation ownership properties and related assets held for sale that are no longer consistent with the Company’s development plans. The after-tax impact of such charges was $3 million. |
| |
| (e) |
|
Relates to non-cash impairment charges to reduce the value of certain vacation ownership properties and related assets held for sale that are no longer consistent with the Company’s development plans. The after-tax impact of such charges was $6 million. |
| |
| (f) |
|
Relates to costs incurred as a result of various strategic initiatives approved by the Company and commenced during 2008. The after-tax impact of such costs was $28 million. |
| |
| (g) |
|
The three and nine months ended September 30, 2010 include $11 million ($6 million, net of tax) of costs incurred for the early repurchase of a portion of the Company’s 3.50% convertible notes during the third quarter of 2010. The nine months ended September 30, 2010 also includes $16 million ($10 million, net of tax) of costs
incurred for the early extinguishment of the Company’s term loan facility and revolving foreign credit facility during March 2010. |
Table 3
(1 of 3)
Wyndham Worldwide Corporation
OPERATING STATISTICS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Full Year |
|
| |
|
|
Lodging (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Rooms |
|
|
2010 |
|
|
|
593,300 |
|
|
|
606,800 |
|
|
|
605,700 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
|
588,500 |
|
|
|
590,200 |
|
|
|
590,900 |
|
|
|
597,700 |
|
|
|
N/A |
|
|
|
|
2008 |
|
|
|
551,100 |
|
|
|
551,500 |
|
|
|
583,400 |
|
|
|
592,900 |
|
|
|
N/A |
|
|
|
|
2007 |
|
|
|
539,300 |
|
|
|
541,700 |
|
|
|
540,900 |
|
|
|
550,600 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR |
|
|
2010 |
|
|
$ |
25.81 |
|
|
$ |
32.25 |
|
|
$ |
37.14 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
$ |
27.69 |
|
|
$ |
32.38 |
|
|
$ |
34.81 |
|
|
$ |
26.47 |
|
|
$ |
30.34 |
|
|
|
|
2008 |
|
|
$ |
32.21 |
|
|
$ |
38.87 |
|
|
$ |
41.93 |
|
|
$ |
30.03 |
|
|
$ |
35.74 |
|
|
|
|
2007 |
|
|
$ |
31.35 |
|
|
$ |
38.35 |
|
|
$ |
43.10 |
|
|
$ |
33.09 |
|
|
$ |
36.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Exchange and Rentals (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of Members (in 000s) |
|
|
2010 |
|
|
|
3,746 |
|
|
|
3,741 |
|
|
|
3,766 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
|
3,789 |
|
|
|
3,795 |
|
|
|
3,781 |
|
|
|
3,765 |
|
|
|
3,782 |
|
|
|
|
2008 |
|
|
|
3,632 |
|
|
|
3,682 |
|
|
|
3,673 |
|
|
|
3,693 |
|
|
|
3,670 |
|
|
|
|
2007 |
|
|
|
3,474 |
|
|
|
3,506 |
|
|
|
3,538 |
|
|
|
3,588 |
|
|
|
3,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Revenue Per Member |
|
|
2010 |
|
|
$ |
201.93 |
|
|
$ |
172.20 |
|
|
$ |
173.44 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
$ |
194.83 |
|
|
$ |
174.22 |
|
|
$ |
173.90 |
|
|
$ |
163.89 |
|
|
$ |
176.73 |
|
|
|
|
2008 |
|
|
$ |
234.05 |
|
|
$ |
201.04 |
|
|
$ |
193.39 |
|
|
$ |
165.99 |
|
|
$ |
198.48 |
|
|
|
|
2007 |
|
|
$ |
236.71 |
|
|
$ |
203.84 |
|
|
$ |
203.44 |
|
|
$ |
195.86 |
|
|
$ |
209.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Rental Transactions (in 000s) (c) |
|
|
2010 |
|
|
|
291 |
|
|
|
297 |
|
|
|
322 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
|
273 |
|
|
|
231 |
|
|
|
264 |
|
|
|
196 |
|
|
|
964 |
|
|
|
|
2008 |
|
|
|
269 |
|
|
|
220 |
|
|
|
255 |
|
|
|
191 |
|
|
|
936 |
|
|
|
|
2007 |
|
|
|
272 |
|
|
|
223 |
|
|
|
254 |
|
|
|
192 |
|
|
|
942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Net Price Per Vacation Rental (c) |
|
|
2010 |
|
|
$ |
361.17 |
|
|
$ |
387.01 |
|
|
$ |
500.31 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
$ |
353.15 |
|
|
$ |
471.74 |
|
|
$ |
594.34 |
|
|
$ |
499.66 |
|
|
$ |
477.38 |
|
|
|
|
2008 |
|
|
$ |
442.50 |
|
|
$ |
541.69 |
|
|
$ |
659.93 |
|
|
$ |
460.86 |
|
|
$ |
528.95 |
|
|
|
|
2007 |
|
|
$ |
365.20 |
|
|
$ |
465.60 |
|
|
$ |
598.26 |
|
|
$ |
504.47 |
|
|
$ |
480.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Vacation Ownership Interest (VOI) Sales (in 000s) (d) |
|
|
2010 |
|
|
$ |
308,000 |
|
|
$ |
371,000 |
|
|
$ |
412,000 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
$ |
280,000 |
|
|
$ |
327,000 |
|
|
$ |
366,000 |
|
|
$ |
343,000 |
|
|
$ |
1,315,000 |
|
|
|
|
2008 |
|
|
$ |
458,000 |
|
|
$ |
532,000 |
|
|
$ |
566,000 |
|
|
$ |
432,000 |
|
|
$ |
1,987,000 |
|
|
|
|
2007 |
|
|
$ |
430,000 |
|
|
$ |
523,000 |
|
|
$ |
552,000 |
|
|
$ |
488,000 |
|
|
$ |
1,993,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tours |
|
|
2010 |
|
|
|
123,000 |
|
|
|
163,000 |
|
|
|
187,000 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
|
137,000 |
|
|
|
164,000 |
|
|
|
173,000 |
|
|
|
142,000 |
|
|
|
617,000 |
|
|
|
|
2008 |
|
|
|
255,000 |
|
|
|
314,000 |
|
|
|
334,000 |
|
|
|
240,000 |
|
|
|
1,143,000 |
|
|
|
|
2007 |
|
|
|
240,000 |
|
|
|
304,000 |
|
|
|
332,000 |
|
|
|
268,000 |
|
|
|
1,144,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume Per Guest (VPG) |
|
|
2010 |
|
|
$ |
2,334 |
|
|
$ |
2,156 |
|
|
$ |
2,081 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
$ |
1,866 |
|
|
$ |
1,854 |
|
|
$ |
1,944 |
|
|
$ |
2,210 |
|
|
$ |
1,964 |
|
|
|
|
2008 |
|
|
$ |
1,668 |
|
|
$ |
1,583 |
|
|
$ |
1,550 |
|
|
$ |
1,630 |
|
|
$ |
1,602 |
|
|
|
|
2007 |
|
|
$ |
1,607 |
|
|
$ |
1,596 |
|
|
$ |
1,545 |
|
|
$ |
1,690 |
|
|
$ |
1,606 |
|
|
|
|
| Note: |
|
Full year amounts may not foot across due to rounding. |
| |
| (a) |
|
Includes the impact of the acquisitions of Microtel
Inns & Suites and Hawthorn Suites (July 2008) and the
Tryp hotel brand (June 2010) from the acquisition
dates forward. Therefore, the operating statistics
are not presented on a comparable basis. |
| |
| (b) |
|
Vacation Exchange and Rentals statistics were revised during the first quarter of 2010 to capture
member-related rentals and other servicing fees as components of the exchange statistics. Prior to the
first quarter of 2010, such amounts were included within the Company’s vacation rental statistics and other
ancillary revenues. |
| |
| (c) |
|
Includes the impact of the
acquisition of Hoseasons Holdings
Ltd. (March 2010) from the
acquisition date forward.
Therefore, the operating statistics
are not presented on a comparable
basis. |
| |
| (d) |
|
Includes gross VOI sales under the
Company’s Wyndham Asset Affiliate
Model (WAAM) beginning in the first
quarter of 2010 (see Table 9 for a
reconciliation of Gross VOI sales to
Vacation ownership interest sales). |
Table 3
(2 of 3)
Wyndham Worldwide Corporation
ADDITIONAL DATA
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Full Year |
|
Lodging (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Properties |
|
|
2010 |
|
|
|
7,090 |
|
|
|
7,160 |
|
|
|
7,150 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
|
6,990 |
|
|
|
7,020 |
|
|
|
7,040 |
|
|
|
7,110 |
|
|
|
N/A |
|
|
|
|
2008 |
|
|
|
6,550 |
|
|
|
6,560 |
|
|
|
6,970 |
|
|
|
7,040 |
|
|
|
N/A |
|
|
|
|
2007 |
|
|
|
6,450 |
|
|
|
6,460 |
|
|
|
6,460 |
|
|
|
6,540 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenues (in 000s) (b) |
|
|
2010 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
$ |
66,516 |
|
|
$ |
37,140 |
|
|
$ |
36,102 |
|
|
$ |
46,784 |
|
|
$ |
186,543 |
|
|
|
|
2008 |
|
|
$ |
(81,716 |
) |
|
$ |
(5,240 |
) |
|
$ |
(2,023 |
) |
|
$ |
13,870 |
|
|
$ |
(75,108 |
) |
|
|
|
2007 |
|
|
$ |
3,906 |
|
|
$ |
(4,908 |
) |
|
$ |
506 |
|
|
$ |
(21,092 |
) |
|
$ |
(21,588 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses (in 000s) (c) |
|
|
2010 |
|
|
$ |
86,332 |
|
|
$ |
87,331 |
|
|
$ |
84,815 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
2009 |
|
|
$ |
107,202 |
|
|
$ |
121,641 |
|
|
$ |
117,111 |
|
|
$ |
103,115 |
|
|
$ |
449,069 |
|
|
|
|
2008 |
|
|
$ |
82,344 |
|
|
$ |
112,669 |
|
|
$ |
118,609 |
|
|
$ |
136,090 |
|
|
$ |
449,712 |
|
|
|
|
2007 |
|
|
$ |
60,869 |
|
|
$ |
75,032 |
|
|
$ |
85,762 |
|
|
$ |
83,644 |
|
|
$ |
305,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales under the WAAM (in 000s) (d) |
|
|
2010 |
|
|
$ |
5,000 |
|
|
$ |
13,000 |
|
|
$ |
20,000 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAAM Commission Revenues (in 000s) |
|
|
2010 |
|
|
$ |
3,000 |
|
|
$ |
8,000 |
|
|
$ |
12,000 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
| Note: |
|
Full year amounts may not foot across due to rounding. |
| |
| (a) |
|
Includes the impact of the acquisition of Microtel Inns & Suites and Hawthorn Suites (July 2008) and the Tryp hotel brand (June 2010) from the acquisition dates forward. Therefore, the data is not presented on a comparable basis. |
| |
| (b) |
|
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. |
| |
| (c) |
|
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. |
| |
| (d) |
|
Represents gross VOI sales under the Company’s WAAM for which the Company earns commission revenue (WAAM Commission Revenues). The commission revenue earned on these sales is included in service fees and membership revenues on the Consolidated Statement of Income. The Company implemented this sales model during the first quarter of 2010 and, as such, there is no historical data prior to 2010. |
Table 3
(3 of 3)
Wyndham Worldwide Corporation
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 the Wyndham Hotels and Resorts brand for which we receive a fee for reservation
and/or other services provided or (iii) properties managed under a 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.
Exchange Revenue Per Member: Represents total revenue generated from fees associated with
memberships, exchange transactions, member-related rentals and other servicing for the period
divided by the average number of vacation exchange members during the period.
Vacation Rental Transactions: Represents the number of transactions that are generated in
connection with customers booking their vacation rental stays through us. One rental transaction is
recorded each time a standard one-week rental is booked.
Average Net Price Per Vacation Rental: Represents the net rental price generated from
renting vacation properties and other related rental servicing fees to customers divided by the
number of vacation rental transactions.
Vacation Ownership
Gross Vacation Ownership Interest Sales: Represents sales of vacation ownership interest
(VOIs), including Wyndham Asset Affiliation Model sales, before the net effect of
percentage-of-completion accounting and loan loss provisions. See Table 9 for a reconciliation of
Gross VOI sales to Vacation Ownership Interest Sales. We believe that Gross VOI sales provides an
enhanced understanding of the performance of our vacation ownership business because it directly
measures the sales volume of this business during a given reporting period.
Tours: Represents the number of tours taken by guests in our efforts to sell vacation
ownership interests.
Volume per Guest (VPG): Represents gross VOI sales (excluding tele-sales upgrades, which
are non-tour upgrade sales) divided by the number of tours. We have excluded non-tour upgrade
sales in the calculation of VPG because non-tour upgrade sales are generated by a different
marketing channel. See Table 9 for a detail of tele-sales upgrades for 2007-2010. We believe that
VPG provides an enhanced understanding of
the performance of our vacation ownership business because it directly measures the efficiency of
this business’ tour selling efforts during a given reporting period.
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)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2010 |
|
|
2009 |
|
| |
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|
Lodging |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and Franchise Fees |
|
$ |
52 |
|
|
$ |
69 |
|
|
$ |
82 |
|
|
|
N/A |
|
|
|
N/A |
|
|
$ |
57 |
|
|
$ |
68 |
|
|
$ |
72 |
|
|
$ |
57 |
|
|
$ |
254 |
|
Marketing, Reservation and Wyndham Rewards Revenues
(a) |
|
|
50 |
|
|
|
65 |
|
|
|
76 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
54 |
|
|
|
66 |
|
|
|
73 |
|
|
|
53 |
|
|
|
246 |
|
Hotel Management Reimbursable Revenues (b) |
|
|
21 |
|
|
|
20 |
|
|
|
18 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
22 |
|
|
|
23 |
|
|
|
21 |
|
|
|
19 |
|
|
|
85 |
|
Ancillary Revenues (c) |
|
|
21 |
|
|
|
24 |
|
|
|
27 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
21 |
|
|
|
17 |
|
|
|
17 |
|
|
|
20 |
|
|
|
75 |
|
|
|
|
|
|
|
|
Total Lodging |
|
|
144 |
|
|
|
178 |
|
|
|
203 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
154 |
|
|
|
174 |
|
|
|
183 |
|
|
|
149 |
|
|
|
660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Exchange and Rentals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Revenues |
|
|
189 |
|
|
|
161 |
|
|
|
163 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
185 |
|
|
|
165 |
|
|
|
164 |
|
|
|
154 |
|
|
|
668 |
|
Rental Revenues |
|
|
105 |
|
|
|
115 |
|
|
|
161 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
96 |
|
|
|
109 |
|
|
|
157 |
|
|
|
98 |
|
|
|
460 |
|
Ancillary Revenues (d) |
|
|
6 |
|
|
|
5 |
|
|
|
6 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
24 |
|
|
|
|
|
|
|
|
Total Vacation Exchange and Rentals |
|
|
300 |
|
|
|
281 |
|
|
|
330 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
287 |
|
|
|
280 |
|
|
|
327 |
|
|
|
258 |
|
|
|
1,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership Interest Sales |
|
|
217 |
|
|
|
271 |
|
|
|
308 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
239 |
|
|
|
242 |
|
|
|
285 |
|
|
|
287 |
|
|
|
1,053 |
|
Consumer Financing |
|
|
105 |
|
|
|
106 |
|
|
|
107 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
109 |
|
|
|
109 |
|
|
|
108 |
|
|
|
109 |
|
|
|
435 |
|
Property Management Fees |
|
|
100 |
|
|
|
100 |
|
|
|
104 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
91 |
|
|
|
94 |
|
|
|
96 |
|
|
|
95 |
|
|
|
376 |
|
Sales under the WAAM |
|
|
3 |
|
|
|
8 |
|
|
|
12 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Ancillary Revenues (e) |
|
|
19 |
|
|
|
20 |
|
|
|
2 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
23 |
|
|
|
22 |
|
|
|
19 |
|
|
|
17 |
|
|
|
81 |
|
|
|
|
|
|
|
|
Total Vacation Ownership |
|
|
444 |
|
|
|
505 |
|
|
|
533 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
462 |
|
|
|
467 |
|
|
|
508 |
|
|
|
508 |
|
|
|
1,945 |
|
|
|
|
|
|
|
|
Total Reportable Segments |
|
$ |
888 |
|
|
$ |
964 |
|
|
$ |
1,066 |
|
|
|
N/A |
|
|
|
N/A |
|
|
$ |
903 |
|
|
$ |
921 |
|
|
$ |
1,018 |
|
|
$ |
915 |
|
|
$ |
3,757 |
|
|
|
|
|
|
|
|
|
|
| |
|
2008 |
|
|
2007 |
|
| |
|
Q1 |
|
|
Q2 |
Q3 |
Q4 |
Year |
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|
Lodging |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and Franchise Fees |
|
$ |
64 |
|
|
$ |
78 |
|
|
$ |
88 |
|
|
$ |
66 |
|
|
$ |
297 |
|
|
$ |
63 |
|
|
$ |
78 |
|
|
$ |
89 |
|
|
$ |
67 |
|
|
$ |
296 |
|
Marketing, Reservation and Wyndham Rewards Revenues
(a) |
|
|
60 |
|
|
|
75 |
|
|
|
84 |
|
|
|
61 |
|
|
|
280 |
|
|
|
60 |
|
|
|
73 |
|
|
|
84 |
|
|
|
64 |
|
|
|
281 |
|
Hotel Management Reimbursable Revenues (b) |
|
|
27 |
|
|
|
26 |
|
|
|
25 |
|
|
|
21 |
|
|
|
100 |
|
|
|
16 |
|
|
|
22 |
|
|
|
26 |
|
|
|
28 |
|
|
|
92 |
|
Ancillary Revenues (c) |
|
|
19 |
|
|
|
21 |
|
|
|
16 |
|
|
|
22 |
|
|
|
76 |
|
|
|
13 |
|
|
|
13 |
|
|
|
12 |
|
|
|
17 |
|
|
|
56 |
|
|
|
|
|
|
|
|
Total Lodging |
|
|
170 |
|
|
|
200 |
|
|
|
213 |
|
|
|
170 |
|
|
|
753 |
|
|
|
152 |
|
|
|
186 |
|
|
|
211 |
|
|
|
176 |
|
|
|
725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Exchange and Rentals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Revenues |
|
|
213 |
|
|
|
185 |
|
|
|
178 |
|
|
|
152 |
|
|
|
728 |
|
|
|
206 |
|
|
|
179 |
|
|
|
180 |
|
|
|
175 |
|
|
|
740 |
|
Rental Revenues |
|
|
119 |
|
|
|
119 |
|
|
|
169 |
|
|
|
88 |
|
|
|
495 |
|
|
|
99 |
|
|
|
104 |
|
|
|
152 |
|
|
|
97 |
|
|
|
452 |
|
Ancillary Revenues (d) |
|
|
9 |
|
|
|
10 |
|
|
|
7 |
|
|
|
10 |
|
|
|
36 |
|
|
|
9 |
|
|
|
5 |
|
|
|
4 |
|
|
|
8 |
|
|
|
26 |
|
|
|
|
|
|
|
|
Total Vacation Exchange and Rentals |
|
|
341 |
|
|
|
314 |
|
|
|
354 |
|
|
|
250 |
|
|
|
1,259 |
|
|
|
314 |
|
|
|
288 |
|
|
|
336 |
|
|
|
280 |
|
|
|
1,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership Interest Sales |
|
|
294 |
|
|
|
414 |
|
|
|
446 |
|
|
|
309 |
|
|
|
1,463 |
|
|
|
373 |
|
|
|
443 |
|
|
|
467 |
|
|
|
383 |
|
|
|
1,666 |
|
Consumer Financing |
|
|
99 |
|
|
|
104 |
|
|
|
111 |
|
|
|
112 |
|
|
|
426 |
|
|
|
81 |
|
|
|
88 |
|
|
|
93 |
|
|
|
96 |
|
|
|
358 |
|
Property Management Fees |
|
|
85 |
|
|
|
84 |
|
|
|
89 |
|
|
|
89 |
|
|
|
346 |
|
|
|
74 |
|
|
|
78 |
|
|
|
79 |
|
|
|
78 |
|
|
|
310 |
|
Ancillary Revenues (e) |
|
|
26 |
|
|
|
19 |
|
|
|
15 |
|
|
|
(18 |
) |
|
|
43 |
|
|
|
21 |
|
|
|
20 |
|
|
|
32 |
|
|
|
19 |
|
|
|
91 |
|
|
|
|
|
|
|
|
Total Vacation Ownership |
|
|
504 |
|
|
|
621 |
|
|
|
661 |
|
|
|
492 |
|
|
|
2,278 |
|
|
|
549 |
|
|
|
629 |
|
|
|
671 |
|
|
|
576 |
|
|
|
2,425 |
|
|
|
|
|
|
|
|
Total Reportable Segments |
|
$ |
1,015 |
|
|
$ |
1,135 |
|
|
$ |
1,228 |
|
|
$ |
912 |
|
|
$ |
4,290 |
|
|
$ |
1,015 |
|
|
$ |
1,103 |
|
|
$ |
1,218 |
|
|
$ |
1,032 |
|
|
$ |
4,368 |
|
|
|
|
|
|
|
|
|
|
|
| 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 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 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)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
| |
|
2010 |
|
|
2010 |
|
|
2010 |
|
|
2009 |
|
|
2009 |
|
Securitized vacation ownership debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term notes |
|
$ |
1,400 |
|
|
$ |
1,255 |
|
|
$ |
1,258 |
|
|
$ |
1,112 |
|
|
$ |
1,305 |
|
Bank conduit facilities (a) |
|
|
215 |
|
|
|
291 |
|
|
|
240 |
|
|
|
395 |
|
|
|
299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized vacation ownership debt (b) |
|
|
1,615 |
|
|
|
1,546 |
|
|
|
1,498 |
|
|
|
1,507 |
|
|
|
1,604 |
|
Less: Current portion of securitized vacation ownership debt |
|
|
187 |
|
|
|
248 |
|
|
|
220 |
|
|
|
209 |
|
|
|
291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term securitized vacation ownership debt |
|
$ |
1,428 |
|
|
$ |
1,298 |
|
|
$ |
1,278 |
|
|
$ |
1,298 |
|
|
$ |
1,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.00% senior unsecured notes (due December 2016) (c) |
|
$ |
798 |
|
|
$ |
798 |
|
|
$ |
798 |
|
|
$ |
797 |
|
|
$ |
797 |
|
Term loan (d) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
300 |
|
|
|
300 |
|
Revolving credit facility (due October 2013) (e) |
|
|
26 |
|
|
|
— |
|
|
|
199 |
|
|
|
— |
|
|
|
21 |
|
9.875% senior unsecured notes (due May 2014) (f) |
|
|
240 |
|
|
|
239 |
|
|
|
239 |
|
|
|
238 |
|
|
|
237 |
|
3.50% convertible notes (due May 2012) (g) |
|
|
289 |
|
|
|
362 |
|
|
|
448 |
|
|
|
367 |
|
|
|
309 |
|
7.375% senior unsecured notes (due March 2020) (h) |
|
|
247 |
|
|
|
247 |
|
|
|
247 |
|
|
|
— |
|
|
|
— |
|
5.75% senior unsecured notes (due February 2018) (i) |
|
|
247 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Vacation ownership bank borrowings (j) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
153 |
|
|
|
163 |
|
Vacation rentals capital leases |
|
|
120 |
|
|
|
110 |
|
|
|
123 |
|
|
|
133 |
|
|
|
139 |
|
Other |
|
|
34 |
|
|
|
36 |
|
|
|
28 |
|
|
|
27 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
|
2,001 |
|
|
|
1,792 |
|
|
|
2,082 |
|
|
|
2,015 |
|
|
|
1,989 |
|
Less: Current portion of debt |
|
|
32 |
|
|
|
29 |
|
|
|
23 |
|
|
|
175 |
|
|
|
176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
$ |
1,969 |
|
|
$ |
1,763 |
|
|
$ |
2,059 |
|
|
$ |
1,840 |
|
|
$ |
1,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
|
Represents (i) a 364-day, non-recourse vacation ownership bank conduit
facility with a term through October 2010 and borrowing capacity of $600 million and (ii) the
outstanding balance of the Company’s prior bank conduit facility through October 8, 2009, the date
on which such balance was repaid. As of September 30, 2010, our 364-day facility has remaining
borrowing capacity of $385 million. During October 2010, the Company renewed its 364-day conduit
facility with a term through September 2011. |
| |
| (b) |
|
This debt is collateralized by $2,874 million, $2,862 million, $2,712 million,
$2,755 million and $2,947 million of underlying vacation ownership contract receivables and related
assets as of September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30,
2009, respectively. |
| |
| (c) |
|
The balance as of September 30, 2010 represents $800 million aggregate principal
less $2 million of unamortized discount. |
| |
| (d) |
|
The Company’s term loan facility was fully repaid during March 2010. |
| |
| (e) |
|
During March 2010, the Company replaced its five-year $900 million revolving credit
facility with a $950 million revolving credit facility that expires on October 1, 2013. As of
September 30, 2010, the Company has $28 million of outstanding letters of credit and a remaining
borrowing capacity of $896 million. |
| |
| (f) |
|
Represents senior unsecured notes issued by the Company during May 2009. The
balance as of September 30, 2010 represents $250 million aggregate principal less $10 million of
unamortized discount. |
| |
| (g) |
|
Represents convertible notes issued by the Company during May 2009, which includes
debt principal, less unamortized discount, and a liability related to a bifurcated
conversion feature. During the third quarter of 2010, the Company repurchased a portion of its
3.50% convertible notes, which resulted in a corresponding reduction of the unamortized discount.
The following table details the components of the convertible notes: |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
| |
|
2010 |
|
|
2010 |
|
|
2010 |
|
|
2009 |
|
|
2009 |
|
Debt principal |
|
$ |
138 |
|
|
$ |
230 |
|
|
$ |
230 |
|
|
$ |
230 |
|
|
$ |
230 |
|
Unamortized discount |
|
|
(17 |
) |
|
|
(31 |
) |
|
|
(35 |
) |
|
|
(39 |
) |
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt less discount |
|
|
121 |
|
|
|
199 |
|
|
|
195 |
|
|
|
191 |
|
|
|
187 |
|
Fair value of conversion feature (*) |
|
|
168 |
|
|
|
163 |
|
|
|
253 |
|
|
|
176 |
|
|
|
122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible notes |
|
$ |
289 |
|
|
$ |
362 |
|
|
$ |
448 |
|
|
$ |
367 |
|
|
$ |
309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(*) |
|
The Company also has an asset with a fair value equal to the conversion feature, which
represents cash-settled call options that the Company purchased concurrent with the issuance of the
convertible notes. |
|
|
|
| (h) |
|
Represents senior unsecured notes issued by the Company during February 2010.
The balance as of September 30, 2010 represents $250 million aggregate principal less $3 million of
unamortized discount. |
| |
| (i) |
|
Represents senior unsecured notes issued by the Company during September 2010. The
balance as of September 30, 2010 represents $250 million aggregate principal less $3 million of
unamortized discount. |
| |
| (j) |
|
Represents a 364-day, AUD 213 million, secured, revolving foreign credit facility,
which was paid down and terminated during March 2010. |
Table 6
(1 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
As of and For the Three Months Ended September 30, 2010 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per |
|
| |
|
Number of |
|
|
Number of |
|
|
Average |
|
|
Average Daily |
|
|
Available Room |
|
| Brand |
|
Properties |
|
|
Rooms |
|
|
Occupancy Rate |
|
|
Rate (ADR) |
|
|
(RevPAR) |
|
Wyndham Hotels and Resorts |
|
|
99 |
|
|
|
27,753 |
|
|
|
57.4 |
% |
|
$ |
107.11 |
|
|
$ |
61.46 |
|
Tryp |
|
|
92 |
|
|
|
13,236 |
|
|
|
63.2 |
% |
|
$ |
83.93 |
|
|
$ |
53.03 |
|
Wingate by Wyndham |
|
|
165 |
|
|
|
15,097 |
|
|
|
63.1 |
% |
|
$ |
81.19 |
|
|
$ |
51.22 |
|
Hawthorn Suites by Wyndham |
|
|
78 |
|
|
|
7,451 |
|
|
|
61.7 |
% |
|
$ |
75.83 |
|
|
$ |
46.77 |
|
Ramada |
|
|
894 |
|
|
|
117,842 |
|
|
|
55.0 |
% |
|
$ |
73.43 |
|
|
$ |
40.38 |
|
Baymont |
|
|
245 |
|
|
|
20,479 |
|
|
|
53.3 |
% |
|
$ |
63.36 |
|
|
$ |
33.78 |
|
Days Inn |
|
|
1,859 |
|
|
|
148,155 |
|
|
|
53.4 |
% |
|
$ |
64.03 |
|
|
$ |
34.19 |
|
Super 8 |
|
|
2,156 |
|
|
|
134,827 |
|
|
|
58.3 |
% |
|
$ |
59.40 |
|
|
$ |
34.61 |
|
Howard Johnson |
|
|
474 |
|
|
|
45,735 |
|
|
|
52.6 |
% |
|
$ |
63.19 |
|
|
$ |
33.26 |
|
Travelodge |
|
|
438 |
|
|
|
32,377 |
|
|
|
54.1 |
% |
|
$ |
68.24 |
|
|
$ |
36.89 |
|
Microtel Inns & Suites |
|
|
319 |
|
|
|
22,760 |
|
|
|
57.1 |
% |
|
$ |
60.12 |
|
|
$ |
34.34 |
|
Knights Inn |
|
|
331 |
|
|
|
19,597 |
|
|
|
43.2 |
% |
|
$ |
46.42 |
|
|
$ |
20.06 |
|
Affiliated Hotels (*) |
|
|
2 |
|
|
|
404 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
7,152 |
|
|
|
605,713 |
|
|
|
55.3 |
% |
|
$ |
67.16 |
|
|
$ |
37.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
|
As of and For the Three Months Ended September 30, 2009 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per |
|
| |
|
Number of |
|
|
Number of |
|
|
Average |
|
|
Average Daily |
|
|
Available Room |
|
| Brand |
|
Properties |
|
|
Rooms |
|
|
Occupancy Rate |
|
|
Rate (ADR) |
|
|
(RevPAR) |
|
Wyndham Hotels and Resorts |
|
|
87 |
|
|
|
23,555 |
|
|
|
53.2 |
% |
|
$ |
108.57 |
|
|
$ |
57.76 |
|
Wingate by Wyndham |
|
|
169 |
|
|
|
15,456 |
|
|
|
57.1 |
% |
|
$ |
83.19 |
|
|
$ |
47.54 |
|
Hawthorn Suites by Wyndham |
|
|
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 |
|
Affiliated Hotels (*) |
|
|
11 |
|
|
|
3,549 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
7,042 |
|
|
|
590,930 |
|
|
|
51.8 |
% |
|
$ |
67.24 |
|
|
$ |
34.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOTE: |
|
A glossary of terms is included in Table 3 (3 of 3); RevPAR may not recalculate by
multiplying average occupancy rate by ADR due to rounding. |
| |
| (*) |
|
Represents properties managed under a joint venture and, as of December 31, 2009,
also includes properties for which we receive a fee for reservation services provided. As these
properties are not branded, operating statistics (such as average occupancy rate, ADR and RevPAR)
are not relevant. |
Table 6
(2 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
As
of and For the Nine Months Ended September 30, 2010 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per |
|
| |
|
Number of |
|
|
Number of |
|
|
Average |
|
|
Average Daily |
|
|
Available Room |
|
| Brand |
|
Properties |
|
|
Rooms |
|
|
Occupancy Rate |
|
|
Rate (ADR) |
|
|
(RevPAR) |
|
Wyndham Hotels and Resorts |
|
|
99 |
|
|
|
27,753 |
|
|
|
56.1 |
% |
|
$ |
109.35 |
|
|
$ |
61.32 |
|
Tryp |
|
|
92 |
|
|
|
13,236 |
|
|
|
63.2 |
% |
|
$ |
83.93 |
|
|
$ |
53.03 |
|
Wingate by Wyndham |
|
|
165 |
|
|
|
15,097 |
|
|
|
58.8 |
% |
|
$ |
79.67 |
|
|
$ |
46.85 |
|
Hawthorn Suites by Wyndham |
|
|
78 |
|
|
|
7,451 |
|
|
|
56.1 |
% |
|
$ |
76.95 |
|
|
$ |
43.14 |
|
Ramada |
|
|
894 |
|
|
|
117,842 |
|
|
|
49.9 |
% |
|
$ |
72.73 |
|
|
$ |
36.26 |
|
Baymont |
|
|
245 |
|
|
|
20,479 |
|
|
|
48.1 |
% |
|
$ |
61.03 |
|
|
$ |
29.37 |
|
Days Inn |
|
|
1,859 |
|
|
|
148,155 |
|
|
|
46.9 |
% |
|
$ |
61.16 |
|
|
$ |
28.69 |
|
Super 8 |
|
|
2,156 |
|
|
|
134,827 |
|
|
|
50.4 |
% |
|
$ |
56.48 |
|
|
$ |
28.50 |
|
Howard Johnson |
|
|
474 |
|
|
|
45,735 |
|
|
|
46.1 |
% |
|
$ |
60.85 |
|
|
$ |
28.04 |
|
Travelodge |
|
|
438 |
|
|
|
32,377 |
|
|
|
45.9 |
% |
|
$ |
64.36 |
|
|
$ |
29.57 |
|
Microtel Inns & Suites |
|
|
319 |
|
|
|
22,760 |
|
|
|
51.1 |
% |
|
$ |
57.59 |
|
|
$ |
29.41 |
|
Knights Inn |
|
|
331 |
|
|
|
19,597 |
|
|
|
38.0 |
% |
|
$ |
42.67 |
|
|
$ |
16.22 |
|
Affiliated Hotels (*) |
|
|
2 |
|
|
|
404 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
7,152 |
|
|
|
605,713 |
|
|
|
49.0 |
% |
|
$ |
64.98 |
|
|
$ |
31.81 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
|
As
of and For the Nine Months Ended September 30, 2009 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per |
|
| |
|
Number of |
|
|
Number of |
|
|
Average |
|
|
Average Daily |
|
|
Available Room |
|
| Brand |
|
Properties |
|
|
Rooms |
|
|
Occupancy Rate |
|
|
Rate (ADR) |
|
|
(RevPAR) |
|
Wyndham Hotels and Resorts |
|
|
87 |
|
|
|
23,555 |
|
|
|
53.3 |
% |
|
$ |
116.58 |
|
|
$ |
62.15 |
|
Wingate by Wyndham |
|
|
169 |
|
|
|
15,456 |
|
|
|
55.0 |
% |
|
$ |
84.61 |
|
|
$ |
46.55 |
|
Hawthorn Suites by Wyndham |
|
|
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 |
|
Affiliated Hotels (*) |
|
|
11 |
|
|
|
3,549 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
7,042 |
|
|
|
590,930 |
|
|
|
47.9 |
% |
|
$ |
66.08 |
|
|
$ |
31.66 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOTE: |
|
A glossary of terms is included in Table 3 (3 of 3); RevPAR may not recalculate by multiplying average occupancy rate by ADR due to rounding. |
| |
| (*) |
|
Represents properties managed under a joint venture and, as of
December 31, 2009, also includes properties for which we receive a fee for
reservation services provided. As these properties are not branded, operating
statistics (such as average occupancy rate, ADR and RevPAR) are not relevant. |
Table 7
(1 of 2)
Wyndham Worldwide
NON-GAAP RECONCILIATIONS
(In millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Reported |
|
|
Acquisition |
|
|
Legacy |
|
|
Adjusted |
|
| |
|
Net Revenues |
|
|
EBITDA |
|
|
Costs(b) |
|
|
Adjustments(c) |
|
|
EBITDA |
|
Three months ended March 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
144 |
|
|
$ |
33 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33 |
|
Vacation Exchange and Rentals |
|
|
300 |
|
|
|
80 |
|
|
|
4 |
|
|
|
— |
|
|
|
84 |
|
Vacation Ownership |
|
|
444 |
|
|
|
82 |
|
|
|
— |
|
|
|
— |
|
|
|
82 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
888 |
|
|
|
195 |
|
|
|
4 |
|
|
|
— |
|
|
|
199 |
|
Corporate and Other (a) |
|
|
(2 |
) |
|
|
(20 |
) |
|
|
— |
|
|
|
2 |
|
|
|
(18 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
886 |
|
|
$ |
175 |
|
|
$ |
4 |
|
|
$ |
2 |
|
|
$ |
181 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
178 |
|
|
$ |
49 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
50 |
|
Vacation Exchange and Rentals |
|
|
281 |
|
|
|
78 |
|
|
|
— |
|
|
|
— |
|
|
|
78 |
|
Vacation Ownership |
|
|
505 |
|
|
|
104 |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
964 |
|
|
|
231 |
|
|
|
1 |
|
|
|
— |
|
|
|
232 |
|
Corporate and Other (a) |
|
|
(1 |
) |
|
|
(14 |
) |
|
|
— |
|
|
|
— |
|
|
|
(14 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
963 |
|
|
$ |
217 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
218 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
203 |
|
|
$ |
67 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
67 |
|
Vacation Exchange and Rentals |
|
|
330 |
|
|
|
103 |
|
|
|
1 |
|
|
|
— |
|
|
|
104 |
|
Vacation Ownership |
|
|
533 |
|
|
|
123 |
|
|
|
— |
|
|
|
— |
|
|
|
123 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
1,066 |
|
|
|
293 |
|
|
|
1 |
|
|
|
— |
|
|
|
294 |
|
Corporate and Other (a) |
|
|
(1 |
) |
|
|
30 |
|
|
|
— |
|
|
|
(52 |
) |
|
|
(22 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
1,065 |
|
|
$ |
323 |
|
|
$ |
1 |
|
|
$ |
(52 |
) |
|
$ |
272 |
|
| |
|
|
|
|
|
|
|
|
| Note: |
|
Amounts may not foot across due to rounding.
|
| |
| (a) |
|
Includes the elimination of transactions between segments. |
| |
| (b) |
|
Relates to costs incurred in connection with the Company’s acquisitions of Hoseasons Holdings Ltd. during March 2010,
the Tryp hotel brand during June 2010 and ResortQuest during September 2010. |
| |
| (c) |
|
Relates to the net expense/(benefit) from the resolution of and adjustment to certain contingent liabilities and assets. |
Table
7
(2 of 2)
Wyndham Worldwide
NON-GAAP RECONCILIATIONS
(In millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Reported |
|
|
Restructuring |
|
|
Legacy |
|
|
Adjusted |
|
| |
|
Net Revenues |
|
|
EBITDA |
|
|
Related Costs(b) |
|
|
Adjustments(c) |
|
|
EBITDA |
|
Three months ended March 31, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
154 |
|
|
$ |
35 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
38 |
|
Vacation Exchange and Rentals |
|
|
287 |
|
|
|
76 |
|
|
|
4 |
|
|
|
— |
|
|
|
80 |
|
Vacation Ownership |
|
|
462 |
|
|
|
44 |
|
|
|
35 |
|
|
|
— |
|
|
|
79 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
903 |
|
|
|
155 |
|
|
|
42 |
|
|
|
— |
|
|
|
197 |
|
Corporate and Other (a) |
|
|
(2 |
) |
|
|
(21 |
) |
|
|
1 |
|
|
|
4 |
|
|
|
(16 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
901 |
|
|
$ |
134 |
|
|
$ |
43 |
|
|
$ |
4 |
|
|
$ |
181 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
174 |
|
|
$ |
50 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
50 |
|
Vacation Exchange and Rentals |
|
|
280 |
|
|
|
56 |
|
|
|
2 |
|
|
|
— |
|
|
|
58 |
|
Vacation Ownership |
|
|
467 |
|
|
|
107 |
|
|
|
1 |
|
|
|
— |
|
|
|
108 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
921 |
|
|
|
213 |
|
|
|
3 |
|
|
|
— |
|
|
|
216 |
|
Corporate and Other (a) |
|
|
(1 |
) |
|
|
(17 |
) |
|
|
— |
|
|
|
— |
|
|
|
(17 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
920 |
|
|
$ |
196 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
199 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
183 |
|
|
$ |
58 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
58 |
|
Vacation Exchange and Rentals |
|
|
327 |
|
|
|
107 |
|
|
|
— |
|
|
|
— |
|
|
|
107 |
|
Vacation Ownership |
|
|
508 |
|
|
|
104 |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
1,018 |
|
|
|
269 |
|
|
|
— |
|
|
|
— |
|
|
|
269 |
|
Corporate and Other (a) |
|
|
(2 |
) |
|
|
(15 |
) |
|
|
— |
|
|
|
2 |
|
|
|
(13 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
1,016 |
|
|
$ |
254 |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
256 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
149 |
|
|
$ |
32 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
32 |
|
Vacation Exchange and Rentals |
|
|
258 |
|
|
|
48 |
|
|
|
— |
|
|
|
— |
|
|
|
48 |
|
Vacation Ownership |
|
|
508 |
|
|
|
132 |
|
|
|
— |
|
|
|
— |
|
|
|
132 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
915 |
|
|
|
212 |
|
|
|
— |
|
|
|
— |
|
|
|
212 |
|
Corporate and Other (a) |
|
|
(2 |
) |
|
|
(18 |
) |
|
|
— |
|
|
|
— |
|
|
|
(18 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
913 |
|
|
$ |
194 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
194 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31,
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging |
|
$ |
660 |
|
|
$ |
175 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
178 |
|
Vacation Exchange and Rentals |
|
|
1,152 |
|
|
|
287 |
|
|
|
6 |
|
|
|
— |
|
|
|
293 |
|
Vacation Ownership |
|
|
1,945 |
|
|
|
387 |
|
|
|
36 |
|
|
|
— |
|
|
|
423 |
|
| |
|
|
|
|
|
Total Reportable Segments |
|
|
3,757 |
|
|
|
849 |
|
|
|
45 |
|
|
|
— |
|
|
|
894 |
|
Corporate and Other (a) |
|
|
(7 |
) |
|
|
(71 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
(64 |
) |
| |
|
|
|
|
|
Total Company |
|
$ |
3,750 |
|
|
$ |
778 |
|
|
$ |
46 |
|
|
$ |
6 |
|
|
$ |
830 |
|
| |
|
|
|
|
|
|
|
|
| Note: |
|
Amounts may not foot across due to rounding. |
| |
| (a) |
|
Includes the elimination of transactions between segments. |
| |
| (b) |
|
Relates to costs incurred as a result of various strategic initiatives commenced by the Company during 2008. |
| |
| (c) |
|
Relates to the net expense from the resolution of and adjustment to certain contingent liabilities and assets. |
Table 8
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 30, 2010 |
|
| |
| |
|
|
|
|
Early
Extinguishment |
|
|
|
|
|
Legacy |
|
|
|
|
| |
|
As Reported |
|
|
of Debt |
|
|
Acquisition Costs |
|
|
Adjustments |
|
|
As Adjusted |
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees and membership |
|
$ |
464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
464 |
|
Vacation ownership interest sales |
|
|
308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
308 |
|
Franchise fees |
|
|
142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142 |
|
Consumer financing |
|
|
107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
107 |
|
Other |
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
1,065 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
410 |
|
|
|
|
|
|
|
(1) |
(b) |
|
|
|
|
|
|
409 |
|
Cost of vacation ownership interests |
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 |
|
Consumer financing interest |
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 |
|
Marketing and reservation |
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149 |
|
General and administrative |
|
|
101 |
|
|
|
|
|
|
|
|
|
|
|
52 |
(c) |
|
|
153 |
|
Asset impairment |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
Depreciation and amortization |
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
786 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
52 |
|
|
|
837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
279 |
|
|
|
— |
|
|
|
1 |
|
|
|
(52 |
) |
|
|
228 |
|
Other income, net |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Interest expense |
|
|
47 |
|
|
|
(11) |
(a) |
|
|
|
|
|
|
|
|
|
|
36 |
|
Interest income |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
235 |
|
|
|
11 |
|
|
|
1 |
|
|
|
(52 |
) |
|
|
195 |
|
Provision for income taxes |
|
|
79 |
|
|
|
5 |
(d) |
|
|
— |
(d) |
|
|
(14 |
) (d) |
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
156 |
|
|
$ |
6 |
|
|
$ |
1 |
|
|
$ |
(38 |
) |
|
$ |
125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.88 |
|
|
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
(0.22 |
) |
|
$ |
0.71 |
|
Diluted |
|
|
0.84 |
|
|
|
0.04 |
|
|
|
0.01 |
|
|
|
(0.21 |
) |
|
|
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
177 |
|
|
|
177 |
|
|
|
177 |
|
|
|
177 |
|
|
|
177 |
|
Diluted |
|
|
184 |
|
|
|
184 |
|
|
|
184 |
|
|
|
184 |
|
|
|
184 |
|
|
|
|
| (a) |
|
Relates to costs incurred for the early repurchase of a portion of the Company’s 3.50% convertible notes during the third quarter of 2010. |
| |
| (b) |
|
Relates to costs incurred in connection with the Company’s acquisition of ResortQuest during September 2010. |
| |
| (c) |
|
Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets primarily related to the accrual that
was no longer needed for outstanding Cendant contingent tax liabilities since Cendant and the IRS agreed to settle the IRS examination of Cendant’s
taxable years 2003 through 2006 on July 15, 2010. |
| |
| (d) |
|
Relates to the tax effect of the adjustments. |
Table 8
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September 30, 2010 |
|
| |
| |
|
|
|
|
|
Early |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Extinguishment of |
|
|
|
|
|
|
|
|
|
|
| |
|
As Reported |
|
|
Debt |
|
|
Acquisition Costs |
|
|
Legacy Adjustments |
|
|
As Adjusted |
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees and membership |
|
$ |
1,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,298 |
|
Vacation ownership interest sales |
|
|
796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
796 |
|
Franchise fees |
|
|
353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
353 |
|
Consumer financing |
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
318 |
|
Other |
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
2,914 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
1,179 |
|
|
|
|
|
|
|
(6 |
)
(b) |
|
|
|
|
|
|
1,173 |
|
Cost of vacation ownership interests |
|
|
138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
138 |
|
Consumer financing interest |
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80 |
|
Marketing and reservation |
|
|
410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
410 |
|
General and administrative |
|
|
394 |
|
|
|
|
|
|
|
|
|
|
|
51 |
(c) |
|
|
445 |
|
Asset impairment |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
Depreciation and amortization |
|
|
128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
2,333 |
|
|
|
— |
|
|
|
(6 |
) |
|
|
51 |
|
|
|
2,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
581 |
|
|
|
— |
|
|
|
6 |
|
|
|
(51 |
) |
|
|
536 |
|
Other income, net |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6 |
) |
Interest expense |
|
|
133 |
|
|
|
(27 |
)
(a) |
|
|
|
|
|
|
|
|
|
|
106 |
|
Interest income |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
457 |
|
|
|
27 |
|
|
|
6 |
|
|
|
(51 |
) |
|
|
439 |
|
Provision for income taxes |
|
|
157 |
|
|
|
11 |
(d) |
|
|
1 |
(d) |
|
|
(15 |
)
(d) |
|
|
154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
300 |
|
|
$ |
16 |
|
|
$ |
5 |
|
|
$ |
(36 |
) |
|
$ |
285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.68 |
|
|
$ |
0.09 |
|
|
$ |
0.03 |
|
|
$ |
(0.21 |
) |
|
$ |
1.59 |
|
Diluted |
|
|
1.62 |
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
(0.20 |
) |
|
|
1.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
179 |
|
|
|
179 |
|
|
|
179 |
|
|
|
179 |
|
|
|
179 |
|
Diluted |
|
|
186 |
|
|
|
186 |
|
|
|
186 |
|
|
|
186 |
|
|
|
186 |
|
|
|
|
| Note: |
|
EPS amounts may not foot due to rounding. |
| |
| (a) |
|
Relates to costs incurred for the early extinguishment of the Company’s term loan facility and revolving foreign credit facility during March 2010 and the early repurchase of
a portion of the Company’s 3.50% convertible notes during the third quarter of 2010. |
| |
| (b) |
|
Relates to costs incurred in connection with the Company’s acquisitions of Hoseasons Holdings Ltd. during March 2010, the Tryp hotel brand during June 2010 and ResortQuest
during September 2010. |
| |
| (c) |
|
Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets primarily related to the accrual that was no longer needed for
outstanding Cendant contingent tax liabilities since Cendant and the IRS agreed to settle the IRS examination of Cendant’s taxable years 2003 through 2006 on July 15, 2010. |
| |
| (d) |
|
Relates to the tax effect of the adjustments. |
Table 8
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended 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
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September 30, 2009 |
|
| |
| |
|
As Reported |
|
|
Legacy Adjustments |
|
|
Restructuring 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 |
|
|
1,145 |
|
|
|
|
|
|
|
|
|
|
|
1,145 |
|
Cost of vacation ownership interests |
|
|
136 |
|
|
|
|
|
|
|
|
|
|
|
136 |
|
Consumer financing interest |
|
|
102 |
|
|
|
|
|
|
|
|
|
|
|
102 |
|
Marketing and reservation |
|
|
423 |
|
|
|
|
|
|
|
|
|
|
|
423 |
|
General and administrative |
|
|
398 |
|
|
|
(6 |
)
(a) |
|
|
|
|
|
|
392 |
|
Asset impairment |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
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 9
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS AND FINANCIAL INFORMATION
(In millions)
FREE
CASH FLOW
The Company defines free cash flow as net cash provided by operating activities
minus capital expenditures, equity investments and development advances,
excluding cash payments related to the Company’s contingent IRS tax liabilities
that it assumed and is responsible for pursuant to its separation from Cendant.
The Company considers free cash flow to be a liquidity measure that provides
useful information to management and investors about the amount of cash
generated by the business that, after the acquisition of property and
equipment, equity investments and hotel development advances, can be used for
strategic opportunities, including making acquisitions, paying dividends,
repurchasing the Company’s common stock and strengthening the balance sheet.
Analysis of free cash flow also facilitates management’s comparisons of the
Company’s operating results to its competitors’ operating results. A limitation
of using free cash flow versus the GAAP measure of net cash provided by
operating activities as a means for evaluating Wyndham Worldwide is that free
cash flow does not represent the total increase or decrease in the cash balance
from operations for the period.
The following table provides more details on the GAAP financial measure that is
most directly comparable to the non-GAAP financial measure and the related
reconciliation between these financial measures:
| |
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September 30, |
|
| |
|
2010 |
|
|
2009 |
|
Net cash provided by operating activities |
|
$ |
528 |
|
|
$ |
569 |
|
Less: Property and equipment additions |
|
|
(100 |
) |
|
|
(109 |
) |
Less: Equity investments and development advances |
|
|
(9 |
) |
|
|
(6 |
) |
Plus: Cash payments related to contingent IRS tax liabilities |
|
|
145 |
|
|
|
— |
|
|
|
|
|
|
|
|
Free cash flow |
|
$ |
564 |
|
|
$ |
454 |
|
|
|
|
|
|
|
|
The following table provides a reconciliation of Gross VOI sales (see Table 3) to Vacation ownership interest sales (see Table 4):
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Full Year |
|
| |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales |
|
$ |
308 |
|
|
$ |
371 |
|
|
$ |
412 |
|
|
|
N/A |
|
|
|
N/A |
|
Less: Sales under the WAAM |
|
|
(5) |
|
|
|
(13 |
) |
|
|
(20 |
) |
|
|
N/A |
|
|
|
N/A |
|
| |
|
|
Gross VOI sales, net of WAAM sales |
|
|
303 |
|
|
|
358 |
|
|
|
392 |
|
|
|
N/A |
|
|
|
N/A |
|
Less: Loan loss provision |
|
|
(86 |
) |
|
|
(87 |
) |
|
|
(85 |
) |
|
|
N/A |
|
|
|
N/A |
|
| |
|
|
Vacation ownership interest sales |
|
$ |
217 |
|
|
$ |
271 |
|
|
$ |
308 |
|
|
|
N/A |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales |
|
$ |
280 |
|
|
$ |
327 |
|
|
$ |
366 |
|
|
$ |
343 |
|
|
$ |
1,315 |
|
Plus: Net effect of percentage-of-completion accounting |
|
|
67 |
|
|
|
37 |
|
|
|
36 |
|
|
|
47 |
|
|
|
187 |
|
Less: Loan loss provision |
|
|
(107 |
) |
|
|
(122 |
) |
|
|
(117 |
) |
|
|
(103 |
) |
|
|
(449 |
) |
| |
|
|
Vacation ownership interest sales |
|
$ |
239 |
|
|
$ |
242 |
|
|
$ |
285 |
|
|
$ |
287 |
|
|
$ |
1,053 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales |
|
$ |
458 |
|
|
$ |
532 |
|
|
$ |
566 |
|
|
$ |
432 |
|
|
$ |
1,987 |
|
Plus/(less): Net effect of percentage-of-completion accounting |
|
|
(82 |
) |
|
|
(5 |
) |
|
|
(2 |
) |
|
|
14 |
|
|
|
(75 |
) |
Less: Loan loss provision |
|
|
(82 |
) |
|
|
(113 |
) |
|
|
(119 |
) |
|
|
(136 |
) |
|
|
(450 |
) |
| |
|
|
Vacation ownership interest sales |
|
$ |
294 |
|
|
$ |
414 |
|
|
$ |
446 |
|
|
$ |
309 |
|
|
$ |
1,463 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales |
|
$ |
430 |
|
|
$ |
523 |
|
|
$ |
552 |
|
|
$ |
488 |
|
|
$ |
1,993 |
|
Plus/(less): Net effect of percentage-of-completion accounting |
|
|
4 |
|
|
|
(5 |
) |
|
|
1 |
|
|
|
(21 |
) |
|
|
(22 |
) |
Less: Loan loss provision |
|
|
(61 |
) |
|
|
(75 |
) |
|
|
(86 |
) |
|
|
(84 |
) |
|
|
(305 |
) |
| |
|
|
Vacation ownership interest sales |
|
$ |
373 |
|
|
$ |
443 |
|
|
$ |
467 |
|
|
$ |
383 |
|
|
$ |
1,666 |
|
| |
|
|
|
|
|
| Note: |
|
Amounts may not foot due to rounding. |
The following represents tele-sales upgrades, which are excluded from Gross VOI sales in the Company’s VPG calculation (see Table 3):
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Full Year |
|
| |
|
|
2010 |
|
$ |
15 |
|
|
$ |
7 |
|
|
$ |
3 |
|
|
|
N/A |
|
|
|
N/A |
|
2009 |
|
$ |
24 |
|
|
$ |
23 |
|
|
$ |
29 |
|
|
$ |
28 |
|
|
$ |
104 |
|
2008 |
|
$ |
33 |
|
|
$ |
35 |
|
|
$ |
49 |
|
|
$ |
40 |
|
|
$ |
156 |
|
2007 |
|
$ |
44 |
|
|
$ |
37 |
|
|
$ |
39 |
|
|
$ |
36 |
|
|
$ |
157 |
|
|
|
|
| Note: |
|
Amounts may not foot across due to rounding. |
