Wyndham Destinations Presenting Today at the J.P. Morgan Management Access Forum; Provides Operational Updates
ORLANDO, Fla., Sept. 14, 2020 /PRNewswire/ -- Wyndham Destinations, Inc. (NYSE: WYND) is presenting today at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum. Michael D. Brown, president and CEO, and Mike Hug, CFO, will speak at 11:20 a.m. ET.
A live audio webcast of the event will be available on the investor relations section of the Company's website at investor.wyndhamdestinations.com. A replay will be available for 30 days.
The Company is providing an update on recent operational metrics:
- July and August gross vacation ownership interest (VOI) sales were $168 million, $73 million in July and $95 million in August.
- The trend in VOI sales improved sequentially from July to August, with August VOI sales declining 57% year-over-year, an improvement from a 69% year-over-year decline in July, as consumer travel sentiment improved with declining daily COVID-19 cases.
- Volume Per Guest (VPG) improved more than 30% over the prior year in both July and August.
- 84% of the Company's resorts and 76% of its sales operations were open, as of August 26.
- Occupancy at open resorts was 59% in July and 58% August, and over the Labor Day weekend occupancy achieved prior year levels with average occupancy of 77%.
- Revenue per Member at Panorama declined 29% year-over-year in July and 20% in August, compared to 37% in the second quarter.
- Re-openings in Hawaii and California continue to be pushed out relative to previous expectations.
The Company is reaffirming the following outlook:
- VPG to increase more than 30% while tours expected to decline 60% versus the prior year for the second half of 2020.
- The receivable portfolio to perform in-line with expectations and the provision for loan loss as a percentage of VOI sales to be below 20% in the second half of the year.
- Positive full-year adjusted Free Cash Flow.
Brown commented "As we said in July, we're continuing to see the green shoots of the recovery with continued steady growth in VPG as resort occupancy started to rebound while our owners began to enjoy their summer vacations. While many resorts in Hawaii and California have yet to reopen, we're able to reaffirm key business metrics that demonstrate the resiliency of our business."
About Wyndham Destinations
Wyndham Destinations (NYSE: WYND), the world's largest vacation club and exchange company, is on a mission to put the world on vacation. The company offers more than four million members and owner families the opportunity to own, exchange or rent their vacation experience while enjoying quality, flexibility and great value from a trusted brand. The company's Wyndham Vacation Clubs offer 230 resorts that provide a contemporary take on the timeshare model through brands Club Wyndham®, WorldMark® by Wyndham, and Margaritaville Vacation Club® by Wyndham. With a global presence in 110 countries, the company's membership travel business -- Panorama -- includes today's leading vacation exchange, leisure travel, and technology brands including RCI, the world's leader in vacation exchange that provides access to 4,200+ affiliated resorts around the world; and Extra Holidays, offering condo vacations at hotel prices. Year after year, our worldwide team of associates delivers exceptional vacation experiences to families around the globe as they make memories to last a lifetime. At Wyndham Destinations, our world is your destination. Connect with us on Twitter, Facebook, Instagram, YouTube and LinkedIn.
This press release includes "forward-looking statements" as that term is defined by the Securities and Exchange Commission ("SEC"). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as "may," "will," "expects," "should," "believes," "plans," "anticipates," "estimates," "predicts," "potential," "continue," "future," "intends," "projects" or other words of similar meaning. Forward- looking statements are subject to risks and uncertainties that could cause actual results of Wyndham Destinations, Inc. ("Wyndham Destinations") to differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements contained in this press release include statements related to Wyndham Destinations' current views and expectations with respect to its future performance and operations, and other anticipated future events and expectations that are not historical facts. 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 might cause such a difference include, but are not limited to, uncertainty with respect to the scope and duration of the novel coronavirus global pandemic ("COVID-19") and any resurgences and the pace of recovery; the timing of the development and distribution of an effective vaccine or treatment for COVID-19; the potential impact of the COVID-19 pandemic and governmental, business and individuals' actions in response to the pandemic and our related contingency plans and cost and investment reductions on our business, vacation ownership interest sales and tour flow, consumer demand and liquidity, our ability to comply with financial and restrictive covenants under our indebtedness and our ability to access capital on reasonable terms, at a reasonable cost or at all, our and Wyndham Hotels & Resorts, Inc.'s ("Wyndham Hotels") ability to maintain credit ratings, general economic conditions and unemployment rates, the performance of the financial and credit markets, the competition in and the economic environment for the timeshare industry; risks associated with employees working remotely or operating with a reduced workforce; the impact of war, terrorist activity, political strife, severe weather events and other natural disasters, and pandemics (including COVID-19) or threats of pandemics; operating risks associated with the Wyndham Vacation Clubs and Panorama segments; uncertainties related to our ability to realize the anticipated benefits of the spin-off of the hotel business ("spin-off") Wyndham Hotels or the divestiture of our North American and European vacation rentals businesses, or the acquisition of Alliance Reservations Network ("ARN"); unanticipated developments related to the impact of the spin-off, the divestiture of our North American and European vacation rentals businesses, the acquisition of ARN and related transactions, including any potential impact on our relationships with our customers, suppliers, employees and others with whom we have relationships, and possible disruption to our operations; our ability to execute on our strategy, the timing and amount of future dividends and share repurchases, if any, and those other factors disclosed as risks under "Risk Factors" in documents we have filed with the SEC, including in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 26, 2020 and Part II, Item 1A of our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC on July 30, 2020. We caution readers that any such statements are based on currently available operational, financial and competitive information, and they should not place undue reliance on these forward-looking statements, which reflect management's opinion only as of the date on which they were made. Except as required by law, we undertake no obligation to review or update these forward-looking statements to reflect events or circumstances as they occur.
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Released September 14, 2020