DALLAS - Nov. 11, 2003--Wyndham International,
Inc. (AMEX:WBR): Third Quarter 2003 Results Summary:
-
For the third quarter, EBITDA, as adjusted, was $45.9
million. On a pro forma basis, adjusted EBITDA was $43.5 million compared
to $42.0 million for the same quarter last year.
-
The Company's comparable owned and leased properties
that are Wyndham branded and -operated continue to outperform the Company's
non Wyndham branded properties, posting a positive 1.8 percent RevPAR change
or a RevPAR of $79.49. Wyndham-branded comparable owned and leased properties
had a strong market share gain with a RevPAR penetration index of 109.1
percent, an increase of 320 basis points year-over-year.
-
Wyndham sold four assets for a total of $56.2 million
with net proceeds being used to pay down debt.
-
Total net debt at the end of the third quarter was
$2.688 billion.
-
Voice reservations were up 29 percent with Wyndham.com
reservations up 143.9 percent.
Wyndham International, Inc. (AMEX:WBR) today reported
that adjusted EBITDA was $45.9 million for the three months ending Sept.
30, 2003, compared to $61.1 million for the same quarter last year. On
a pro forma basis excluding assets sold and held for sale through Sept.
30, 2003, adjusted EBITDA was $43.5 million compared to $42.0 million for
the same quarter last year. Year-to-date, adjusted EBITDA was $209.9 million.
Adjusted pro forma EBITDA was $198.8 million compared to $218.1 million
for the same period in 2002. This variance is attributed to impact of Operation
Iraqi Freedom and the effects of SARS.
Wyndham reported a net loss of $89.1 million
and a pro forma net loss of $53.5 million for the third quarter versus
a $78.2 million net loss and a $69.1 million pro forma net loss for the
same period in 2002. After the effect of the Company's preferred dividend,
this resulted in a net loss of $0.76 per share on a fully diluted basis.
The net loss on a pro forma basis was $0.55 per share. For the nine months
ended Sept. 30, 2003, the net loss was $288.0 million compared to $462.7
million from the prior year. After the effect of the preferred dividend,
the resulting net loss per share was $2.40 on a fully diluted basis compared
to $3.39 from the prior year. Pro forma net loss year-to-date was $1.22
per share compared to $1.42 from the prior year.
Total Company comparable owned and leased RevPAR,
including non-proprietary assets, posted an increase of 1.2 percent versus
the same period in 2002 for a $70.35 RevPAR. This increase was comprised
of a 5.3 percent increase in occupancy and a 3.9 percent decline in ADR.
"Although the industry was impacted by the continued
challenging operating environment, we are encouraged by the steady improvement
in Wyndham's year-over-year and third quarter RevPAR, market share index
results, and more importantly, the positive growth in EBITDA on a pro forma
basis," stated Fred J. Kleisner, chairman and chief executive officer of
Wyndham International, Inc.
Financial Highlights:
At Sept. 30, 2003, the Company's total debt was
$2.735 billion, which breaks down as follows: Revolver $168.7 million;
IRL's $379.2 million; Term Loans $1.078 billion; and Mortgage and Other
Indebtedness $1.11 billion. Net debt, which includes cash and cash equivalents,
excluding restricted cash, was $2.688 billion.
Wyndham's liquidity, defined as revolver availability
plus cash in its overnight account was approximately $180 million versus
approximately $200 million at the end of the second quarter 2003. The reduction
in liquidity is due to a $10 million permanent revolver reduction associated
with the repayment obligations pursuant to recent amendments to the Company's
credit facilities related to asset sales, and $10 million in additional
letters of credit issued for our insurance program. The Company continues
to maintain solid liquidity, manage cash tightly and make prudent spending
decisions given current economic conditions.
In addition, on Nov. 6, 2003, Wyndham completed
the $94.5 million mortgage refinancing of the 570-room Wyndham Condado
Hotel & Casino in San Juan, P.R. With this refinancing, Wyndham has
now paid $180 million of the $194 million required commitment to extend
the term of the Company's credit facilities to April 2006. Due to Wyndham's
availability of funds under the terms of the amendment, the remaining portion
of the commitment is completely within the Company's control regardless
of other asset sales or refinancings. With this amendment, the Company
has no significant mortgage maturities in 2004.
"We are pleased to have the opportunity to focus
on our business as the economy improves. The extension of the term of our
credit facilities puts us in position to execute our plan for recovery,"
stated Richard Smith, executive vice president and chief financial officer.
Brand Performance:
Wyndham has experienced dramatic increases in
revenues booked through Wyndham.com, where the guaranteed lowest rates
for a Wyndham guest room are found. For the third quarter 2003, bookings
on Wyndham.com increased 143.9 percent over the same period last year.
Internet channels were up 31.9 percent with ADR up $7.21 versus last year.
Reservations booked on Wyndham.com during the third quarter 2003 also yielded
the Company a net $24.75 rate premium over third-party Web sites due to
these sites' booking fees: Wyndham WebRates(R) ADR of $97.53 versus $72.78
ADR for other third-party Internet sites.
Wyndham anticipates further momentum in its reservations
booked through proprietary channels through the fourth quarter 2003 and
into 2004, as the Company recently halted Wyndham ByRequest benefits to
those guests who book their reservations using any outside third-party
Web site. ByRequest benefits are extended to guests who book their reservations
through Wyndham.com, a Wyndham property, their travel agent or by calling
Wyndham's central reservations office. As an added incentive, those guests
who book their stay through Wyndham.com by Dec. 31, 2003, and stay by June
30, 2004, are now able to select from four booking bonus options, including
500 frequent flyer miles, a free round of golf at participating Wyndham
golf resorts, free breakfast or free SpongeBob SquarePants(TM) plush toy.
"We've put many programs in place, like our Online
Booking Bonus program, in order to notify customers that they cannot buy
a Wyndham-branded hotel room for less on the Internet using any outside
third-party channel," Kleisner stated. "Wyndham's hotel inventory is ours
alone to sell, and in order to take full advantage of the impending economic
recovery, we will only sell our properties' distressed vacancy rather than
its guaranteed, higher-rated occupancy on these third-party Internet sites.
This is a very serious issue facing the entire travel industry, not just
Wyndham."
In the third quarter, call volume was up 3.5
percent versus the prior year with total central reservations up 29.5 percent.
Correspondingly, the cost per reservation went down to $7.98 versus $9.40
last year. Voice reservation conversions continue to be strong at 41.5
percent versus 33.2 percent last year, including a record conversion in
the month of September of 45.4 percent.
In addition to the online booking bonus, guests
who join Wyndham ByRequest or are already members will receive the benefits
of membership (customized guest room, free long distance, free high-speed
Internet access, welcome amenity, etc.) when they book through Wyndham.com.
At the end of the third quarter, Wyndham ByRequest's membership totaled
more than 1.6 million members, and contributed 16 percent of the Company's
room revenues.
Operating Strategy:
The strength of Wyndham ByRequest and Wyndham
WebRates has contributed to the gains in market share versus Wyndham's
competitive set. Since March 2001, Wyndham has aggressively managed its
expenses to preserve EBITDA without sacrificing its personalized guest
experience, allowing the Company to minimize the negative impact on operating
margins. Operating margins have continued to strengthen with a diminutive
decrease of only 10 basis points for the quarter. For the third quarter,
Wyndham-branded owned and leased properties had a RevPAR index of 109.1
or a 320 basis points increase over the third quarter last year. Each month
of the third quarter, the Company experienced a sequential increase in
its RevPAR penetration index and improvement over the prior year, leading
with the month of September, which posted a RevPAR penetration index of
110.7 or a 670 basis point improvement over last year.
Kleisner added, "While our RevPAR and market
share index results are encouraging, the results have been driven by year-over-year
occupancy growth rather than increases in average daily rate. We've seen
promising signs in our own industry as well as other industries that an
economic recovery is not far off, creating a perfect opportunity for us
to increase room rates in select markets where customer demand levels remain
high."
Development:
Wyndham converted the Wyndham Valley Forge Suites
in Wayne, Pa., the Wyndham Midtown Atlanta, and The Mayfair - A Wyndham
Historic Hotel in St. Louis to franchise and management agreements in the
third quarter. Also, the strategic alliance with Viva Resorts was signed
on Oct. 21, 2003, whereby seven resort properties located in the Dominican
Republic, Mexico and The Bahamas will be re-branded "Viva Wyndham Resorts"
on Dec. 1, 2003. This agreement solidifies Wyndham's brand dominance in
the Caribbean.
The Company continues to increase EBITDA by reducing
third-party franchise fees paid to its competitors. Two non-proprietary
branded, Wyndham-owned and -managed hotels will be converting to the Wyndham
brand in December. The Hilton Ft. Lauderdale will become the Wyndham Ft.
Lauderdale Airport on Dec. 1 and the Radisson Burlington (Vermont) is expected
to become the Wyndham Burlington on Dec. 31. Both assets will nicely complement
Wyndham's current branded portfolio. Prior to conversions, both properties
will be equipped with Wyndham's brand standards to ensure delivery of a
consistent guest experience.
Dispositions:
During the third quarter 2003, Wyndham completed
the sale of four non-strategic hotels for gross proceeds of $56.2 million,
including three Wyndham-branded assets that remain in the brand's portfolio
pursuant to management or franchise agreements, and one non-branded Wyndham
asset. Since the beginning of 2003, the Company has sold or currently has
under contract to sell 21 hotel assets and four non-hotel assets for gross
proceeds of approximately $255 million.
There are six additional hotel properties in
Wyndham's asset disposition pipeline and one non-hotel asset under contract
that are expected to close by the end of the first quarter 2004. After
the completion of these asset sales, Wyndham will have 30 non-strategic
assets remaining to be sold.
Future Guidance:
For the full year 2003, Wyndham expects EBITDA,
as adjusted, to be in the range of $280.0 to $290.0 million. The $5.0 million
decrease from previous guidance is due primarily to assets sold during
the quarter. Full year 2003 RevPAR is estimated to be negative 1.0 to 3.0
percent compared to the full year 2002. Preliminarily, Wyndham expects
2004 RevPAR to be in the range of positive 3.0 to 4.0 percent versus the
full year 2003.
WYNDHAM INTERNATIONAL,
INC.
2003 OPERATING STATISTICS
Third Quarter Nine Months Ended September
30
------------------------- ------------------------------
2003 2002 % Change 2003
2002 % Change
-------- ------- -------- --------- -------- ---------
COMPARABLE WYNDHAM BRANDED
HOTELS (a)
Wyndham
Hotels &
Resorts
Average
daily rate $101.76
$105.15 -3.2% $115.08 $121.48
-5.3%
Occupancy
73.3% 69.8% 3.5 ppt
72.0% 69.3% 2.7 ppt
RevPAR
$74.59 $73.39 1.6%
$82.84 $84.17 -1.6%
Wyndham
Luxury
Resorts
Average
daily rate $232.56
$235.51 -1.3% $230.27 $240.46
-4.2%
Occupancy
58.9% 57.2% 1.7 ppt
53.5% 53.0% 0.5 ppt
RevPAR
$137.04 $134.68 1.7% $123.16
$127.44 -3.4%
Summerfield
by Wyndham
Average
daily rate $95.29
$100.71 -5.4% $93.09 $102.71
-9.4%
Occupancy
90.6% 86.0% 4.6 ppt
85.9% 81.1% 4.8 ppt
RevPAR
$86.34 $86.58 -0.3%
$79.99 $83.31 -4.0%
Wyndham
Garden
Average
daily rate $91.17
$96.72 -5.7% $88.64
$96.87 -8.5%
Occupancy
74.5% 75.1% -0.6 ppt 75.8%
72.6% 3.2 ppt
RevPAR
$67.97 $72.62 -6.4%
$67.15 $70.28 -4.5%
COMPARABLE OWNED & LEASED
HOTELS
Proprietary
Branded (b)
Average
daily rate $103.39
$107.56 -3.9% $115.13 $122.13
-5.7%
Occupancy
76.9% 72.6% 4.3 ppt
75.0% 71.3% 3.7 ppt
RevPAR
$79.49 $78.05 1.8%
$86.32 $87.10 -0.9%
Non-Proprietary
Branded (c)
Average
daily rate $84.80
$88.63 -4.3% $87.67
$92.66 -5.4%
Occupancy
62.2% 60.1% 2.1 ppt
60.5% 61.0% -0.5 ppt
RevPAR
$52.76 $53.27 -0.9%
$53.07 $56.54 -6.1%
Total
Portfolio
Average
daily rate $97.89
$101.82 -3.9% $107.40 $113.46
-5.3%
Occupancy
71.9% 68.3% 3.6 ppt
70.3% 67.9% 2.4 ppt
RevPAR
$70.35 $69.52 1.2%
$75.45 $77.08 -2.1%
NOTE: All hotel statistics
exclude assets sold to date.
(a) Brand
statistics are based on comparable owned, managed and leased hotels for
respective periods.
(b) Reflects
Wyndham Hotels & Resorts, Wyndham Luxury Resorts, Summerfield by Wyndham
and Wyndham Garden Hotels that were branded as of Jan. 1, 2002.
(c) Non-proprietary
brand hotels owned by the Company as of Jan.
1, 2002.
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Quarter Ended
September 30,
2003
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
Revenues:
Room revenues
$177,103 $--
$177,103
Food and beverage revenues
80,990 --
80,990
Other revenues
36,910 --
36,910
----------- ------------ -------------
Total hotel revenues
295,003 --
295,003
Management fees and service
fee income
4,162 --
4,162
Interest and other income
1,729 --
1,729
----------- ------------ -------------
Total revenues
300,894 --
300,894
----------- ------------ -------------
Expenses:
Room expenses
48,838 --
48,838
Food and beverage expenses
62,011 --
62,011
Other expenses
137,858 --
137,858
----------- ------------ -------------
Total hotel expenses
248,707 --
248,707
General and administrative
costs
11,046 --
11,046
Interest expense
45,483 --
45,483
----------- ------------ -------------
Total operating costs
and
expenses
305,236 --
305,236
----------- ------------ -------------
Revenues net of direct
expenses
(4,342) --
(4,342)
Adjustments:
Professional fees and other
142 --
142
Abandoned transaction costs
(372) --
(372)
Loss on derivative
instruments
2,394 --
2,394
Preopening costs
-- --
--
Gain on sale of assets
-- --
--
Write-off of leasehold
costs
-- --
--
----------- ------------ -------------
Total adjustments
2,164 --
2,164
----------- ------------ -------------
Depreciation and
amortization
51,884 --
51,884
Equity in earnings from
unconsolidated
subsidiaries
(896) --
(896)
Minority interest in
consolidated subsidiaries
206 --
206
----------- ------------ -------------
51,194 --
51,194
----------- ------------ -------------
Loss from continued
operations before taxes
(57,700) --
(57,700)
Income tax benefit
4,227 --
4,227
----------- ------------ -------------
Loss from continued
operations
(53,473) --
(53,473)
----------- ------------ -------------
Loss from operations of
discontinued hotels, net
of taxes and minority
interest
(3,545) (3,545)
--
Gain (loss) on sale of
assets, net of taxes and
minority interest
2,571 2,571
--
HPT leasehold termination
costs, net of taxes
(150) (150)
--
Impairment of assets held
for sale, net of taxes and
minority interest
(34,500) (34,500)
--
----------- ------------ -------------
Loss on discontinued
operations
(35,624) (35,624) A
--
----------- ------------ -------------
Net loss
$(89,097) $(35,624)
$(53,473)
=========== ============ =============
EBITDA, as adjusted
$45,898 $2,368
$43,530
=========== ============ =============
Quarter Ended
September 30,
2002
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
Revenues:
Room revenues
$180,799 7,620 C
$173,179
Food and beverage revenues
84,368 3,572 C
80,796
Other revenues
40,484 1,111 C
39,373
----------- ------------ -------------
Total hotel revenues
305,651 12,303
293,348
Management fees and service
fee income
4,361 377
D 3,984
Interest and other income
1,512 52
E 1,460
----------- ------------ -------------
Total revenues
311,524 12,732
298,792
----------- ------------ -------------
Expenses:
Room expenses
46,987 1,912 F
45,075
Food and beverage expenses
64,493 2,947 F
61,546
Other expenses
143,556 5,295 F
138,261
----------- ------------ -------------
Total hotel expenses
255,036 10,154
244,882
General and administrative
costs
14,229 --
14,229
Interest expense
53,156 358
G 52,798
----------- ------------ -------------
Total operating costs
and
expenses
322,421 10,512
311,909
----------- ------------ -------------
Revenues net of direct
expenses
(10,897) 2,220
(13,117)
Adjustments:
Professional fees and other
506 --
506
Abandoned transaction costs
606 --
606
Loss on derivative
instruments
36,327 --
36,327
Preopening costs
15 --
15
Gain on sale of assets
(102) --
(102)
Write-off of leasehold
costs
1,224 --
1,224
----------- ------------ -------------
Total adjustments
38,576 --
38,576
----------- ------------ -------------
Depreciation and
amortization
55,949 --
55,949
Equity in earnings from
unconsolidated
subsidiaries
(69) 54
H (123)
Minority interest in
consolidated subsidiaries
(92) --
(92)
----------- ------------ -------------
55,788 54
55,734
----------- ------------ -------------
Loss from continued
operations before taxes
(105,261) 2,166
(107,427)
Income tax benefit
37,596 (702) I
38,298
----------- ------------ -------------
Loss from continued
operations
(67,665) 1,464
(69,129)
----------- ------------ -------------
Loss from operations of
discontinued hotels, net
of taxes and minority
interest
(3,044) (3,044)
--
Gain (loss) on sale of
assets, net of taxes and
minority interest
(7,485) (7,485)
--
HPT leasehold termination
costs, net of taxes
-- --
--
Impairment of assets held
for sale, net of taxes and
minority interest
-- --
--
----------- ------------ -------------
Loss on discontinued
operations
(10,529) (10,529) A
--
----------- ------------ -------------
Net loss
$(78,194) $(9,065)
$(69,129)
=========== ============ =============
EBITDA, as adjusted
$61,069 $19,107
$41,962
=========== ============ =============
(1) The Comparable
Pro Forma financial statements have been adjusted to remove the operations
of hotels sold and related interest expense from corresponding retired
debt and management contract revenue from terminated management contracts.
WYNDHAM INTERNATIONAL, INC.
EBITDA Reconciliation
(in thousands, except per share data)
(Unaudited)
Quarter Ended
September 30,
2003
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
EBITDA Reconciliation
Net loss
$(89,097) $(35,624)
$(53,473)
Interest expense
45,483 --
45,483
Depreciation and
amortization
51,884 --
51,884
Income tax benefit
(4,227) --
(4,227)
----------- ------------ -------------
EBITDA
4,043 (35,624)
39,667
Interest, depreciation and
amortization from equity
interest in unconsolidated
subsidiaries
669 --
669
Interest, depreciation and
amortization attributable
to minority interests
(360) (278) B
(82)
Professional fees and other
135 --
135
Abandoned transaction costs
-- --
--
Amortization of unearned
compensation
747 --
747
Loss on derivative
instruments
2,394 --
2,394
Preopening costs
-- --
--
Gain on sale of assets
-- --
--
Write-off of leasehold
costs
-- --
--
Discontinued operations
adjustments
38,270 38,270 A
--
----------- ------------ -------------
EBITDA, as adjusted
$45,898 2,368
$43,530
=========== ============ =============
Per Share Calculations:
Loss from continued
operations
$(53,473)
$(53,473)
Loss from discontinued
operations, net of taxes
and minority interest
(35,624)
--
-----------
-------------
Net loss
(89,097)
(53,473)
Adjustment for preferred
stock
(39,254)
(39,254)
-----------
-------------
Net loss attributable
to
common shareholders
$(128,351)
$(92,727)
===========
=============
Basic and diluted loss per
common share:
Loss from continued
operations
$(0.55)
$(0.55)
Loss from discontinued
operations,
net of taxes
and minority
interest (0.21)
--
-----------
-------------
Net loss
per common
share
$(0.76)
$(0.55)
===========
=============
Basic and diluted weighted
average common shares and
share equivalents
168,211
168,211
Quarter Ended
September 30,
2002
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
EBITDA Reconciliation
Net loss
$(78,194) (9,065)
$(69,129)
Interest expense
53,156 358
G 52,798
Depreciation and
amortization
55,949 --
55,949
Income tax benefit
(37,596) 702
I (38,298)
----------- ------------ -------------
EBITDA
(6,685) (8,005)
1,320
Interest, depreciation and
amortization from equity
interest in unconsolidated
subsidiaries
1,763 174
J 1,589
Interest, depreciation and
amortization attributable
to minority interests
(1,417) (1,046) B
(371)
Professional fees and other
506 --
506
Abandoned transaction costs
606 --
606
Amortization of unearned
compensation
848 --
848
Loss on derivative
instruments
36,327 --
36,327
Preopening costs
15 --
15
Gain on sale of assets
(102) --
(102)
Write-off of leasehold
costs
1,224 --
1,224
Discontinued operations
adjustments
27,984 27,984 A
--
----------- ------------ -------------
EBITDA, as adjusted
$61,069 $19,107
$41,962
=========== ============ =============
Per Share Calculations:
Loss from continued
operations
$(67,665)
$(69,129)
Loss from discontinued
operations, net of taxes
and minority interest
(10,529)
--
-----------
-------------
Net loss
(78,194)
(69,129)
Adjustment for preferred
stock
(36,556)
(36,556)
-----------
-------------
Net loss attributable
to
common shareholders
$(114,750)
$(105,685)
===========
=============
Basic and diluted loss per
common share:
Loss from continued
operations
$(0.62)
$(0.63)
Loss from discontinued
operations,
net of taxes
and minority
interest (0.06)
--
-----------
-------------
Net loss
per common
share
$(0.68)
$(0.63)
===========
=============
Basic and diluted weighted
average common shares and
share equivalents
167,977
167,977
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Quarters Ended September 30, 2003 and 2002
(Unaudited)
Notes to Pro Forma Adjustments:
(A) Removal
of assets sold, HPT leases terminated and assets held for sale.
(B) Removal
of minority interest of hotels held for sale.
(C) Reduction
of hotel revenues associated with the sale of five hotels.
(D) Reduction
of management fees due to the termination of nine hotel management contracts.
(E) Reduction
of dividend income from a sold investment.
(F) Corresponding
reduction of hotel expenses for hotels noted in (C) above.
(G) Reduction
of interest expenses associated with sold hotels.
(H) Removal
of two equity investments.
(I) Tax benefit
associated with the pro forma adjustments using an effective tax rate of
40%.
(J) Removal
of equity investments sold.
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Nine Months Ended
September 30,
2003
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
Revenues:
Room revenues
$564,540 $3,689 A
$560,851
Food and beverage revenues
285,421 1,779 A
283,642
Other revenues
131,774 2,107 A
129,667
----------- ------------ -------------
Total hotel revenues
981,735 7,575
974,160
Management fees and service
fee income
13,012 108
B 12,904
Interest and other income
3,912
6 C 3,906
----------- ------------ -------------
Total revenues
998,659 7,689
990,970
----------- ------------ -------------
Expenses:
Room expenses
146,468 705
D 145,763
Food and beverage expenses
200,303 1,401 D
198,902
Other expenses
414,224 3,263 D
410,961
----------- ------------ -------------
Total hotel expenses
760,995 5,369
755,626
General and administrative
costs
42,009 --
42,009
Interest expense
137,636 --
137,636
----------- ------------ -------------
Total operating costs
and
expenses
940,640 5,369
935,271
----------- ------------ -------------
Revenues net of direct
expenses
58,019 2,320
55,699
Adjustments:
Bond offering costs
-- --
--
Professional fees and other
2,578 --
2,578
Abandoned transaction costs
66 --
66
Loss on derivative
instruments
21,487 --
21,487
Preopening costs
-- --
--
Loss on sale of assets
4,937 --
4,937
Impairment of assets
6,132 4,092 E
2,040
Write-off of leasehold
costs
522 --
522
----------- ------------ -------------
Total adjustments
35,722 4,092
31,630
----------- ------------ -------------
Depreciation and
amortization
157,046 --
157,046
Equity in earnings from
unconsolidated
subsidiaries
(1,596) --
(1,596)
Minority interest in
consolidated subsidiaries
476 --
476
----------- ------------ -------------
155,926 --
155,926
----------- ------------ -------------
Loss from continued
operations before taxes
(133,629) (1,772)
(131,857)
Income tax benefit
43,471 311
F 43,160
----------- ------------ -------------
Loss from continued
operations
(90,158) (1,461)
(88,697)
----------- ------------ -------------
Loss from operations of
discontinued hotels, net
of taxes and minority
interest
(15,422) (15,422)
--
Gain (loss) on sale of
assets, net of taxes and
minority interest
5,028 5,028
--
HPT leasehold termination
costs, net of taxes
(101,739) (101,739)
--
Impairment of assets held
for sale, net of taxes and
minority interest
(85,731) (85,731)
--
----------- ------------ -------------
Loss on discontinued
operations
(197,864) (197,864) G
--
----------- ------------ -------------
Loss before accounting
change, net of applicable
taxes
(288,022) (199,325)
(88,697)
Accounting change, net of
applicable taxes
-- --
--
----------- ------------ -------------
Net loss
$(288,022) $(199,325)
$(88,697)
=========== ============ =============
EBITDA, as adjusted
$209,903 $11,070
$198,833
=========== ============ =============
Nine Months Ended
September 30,
2002
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
Revenues:
Room revenues
$593,144 $25,327 J
$567,817
Food and beverage revenues
296,423 12,725 J
283,698
Other revenues
146,313 4,060 J
142,253
----------- ------------ -------------
Total hotel revenues
1,035,880 42,112
993,768
Management fees and service
fee income
13,404 1,284 K
12,120
Interest and other income
5,488 748
C 4,740
----------- ------------ -------------
Total revenues
1,054,772 44,144
1,010,628
----------- ------------ -------------
Expenses:
Room expenses
146,035 5,970 L
140,065
Food and beverage expenses
210,742 9,792 L
200,950
Other expenses
428,539 18,038 L
410,501
----------- ------------ -------------
Total hotel expenses
785,316 33,800
751,516
General and administrative
costs
47,050 --
47,050
Interest expense
164,985 1,072 M
163,913
----------- ------------ -------------
Total operating costs
and
expenses
997,351 34,872
962,479
----------- ------------ -------------
Revenues net of direct
expenses
57,421 9,272
48,149
Adjustments:
Bond offering costs
4,504 --
4,504
Professional fees and other
3,351 --
3,351
Abandoned transaction costs
2,134 --
2,134
Loss on derivative
instruments
69,370 --
69,370
Preopening costs
873 --
873
Loss on sale of assets
3,508 --
3,508
Impairment of assets
162 --
162
Write-off of leasehold
costs
2,216 --
2,216
----------- ------------ -------------
Total adjustments
86,118 --
86,118
----------- ------------ -------------
Depreciation and
amortization
166,769 --
166,769
Equity in earnings from
unconsolidated
subsidiaries
(967) (316) N
(651)
Minority interest in
consolidated subsidiaries
230 --
230
----------- ------------ -------------
166,032 (316)
166,348
----------- ------------ -------------
Loss from continued
operations before taxes
(194,729) 9,588
(204,317)
Income tax benefit
70,455 (3,178) O
73,633
----------- ------------ -------------
Loss from continued
operations
(124,274) 6,410
(130,684)
----------- ------------ -------------
Loss from operations of
discontinued hotels, net
of taxes and minority
interest
(5,525) (5,525)
--
Gain (loss) on sale of
assets, net of taxes and
minority interest
(8,839) (8,839)
--
HPT leasehold termination
costs, net of taxes
-- --
--
Impairment of assets held
for sale, net of taxes and
minority interest
-- --
--
----------- ------------ -------------
Loss on discontinued
operations
(14,364) (14,364) G
--
----------- ------------ -------------
Loss before accounting
change, net of applicable
taxes
(138,638) (7,954)
(130,684)
Accounting change, net of
applicable taxes
(324,102) (324,102) P
--
----------- ------------ -------------
Net loss
$(462,740) $(332,056)
$(130,684)
=========== ============ =============
EBITDA, as adjusted
$287,349 $69,259
$218,090
=========== ============ =============
(1) The Comparable
Pro Forma financial statements have been adjusted to remove the operations
of hotels sold and related interest expense from corresponding retired
debt and management contract revenue from terminated management contracts.
WYNDHAM INTERNATIONAL, INC.
EBITDA Reconciliation
(in thousands, except per share data)
(Unaudited)
Nine Months Ended
September 30,
2003
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
EBITDA Reconciliation
Net loss
$(288,022) $(199,325)
$(88,697)
Interest expense
137,636 --
137,636
Depreciation and
amortization
157,046 --
157,046
Income tax benefit
(43,471) (311) F
(43,160)
Accounting change, net of
applicable taxes
-- --
--
----------- ------------ -------------
EBITDA
(36,811) (199,636)
162,825
Interest, depreciation and
amortization from equity
interest in unconsolidated
subsidiaries
3,241 (62)
H 3,303
Interest, depreciation and
amortization attributable
to minority interests
(1,625) (1,066) I
(559)
Bond offering cost
-- --
-
Professional fees and other
2,567 --
2,567
Abandoned transaction costs
-- --
--
Amortization of unearned
compensation
1,711 --
1,711
Loss on derivative
instruments
21,487 --
21,487
Preopening costs
-- --
--
Loss on sale of assets
4,937 --
4,937
Impairment of assets
6,132 4,092 E
2,040
Write-off of leasehold
costs
522 --
522
Discontinued operations
adjustments
207,742 207,742 G
--
----------- ------------ -------------
EBITDA, as adjusted
$209,903 $11,070
$198,833
=========== ============ =============
Per Share Calculations:
Loss from continued
operations
$(90,158)
$(88,697)
Loss from discontinued
operations, net of taxes
and minority interest
(197,864)
--
Accounting change, net of
applicable taxes
--
--
-----------
-------------
Net loss
$(288,022)
$(88,697)
Adjustment for preferred
stock
(115,562)
(115,562)
-----------
-------------
Net loss attributable
to
common shareholders
$(403,584)
$(204,259)
===========
=============
Basic and diluted loss per
common share:
Loss from continued
operations
$(1.22)
$(1.22)
Loss from discontinued
operations,
net of taxes
and minority
interest (1.18)
--
Accounting change,
net of
applicable taxes
--
--
-----------
-------------
Net loss per common share
$(2.40)
$(1.22)
===========
=============
Basic and diluted weighted
average common shares and
share equivalents
168,099
168,099
Nine Months Ended
September 30,
2002
Pro Forma Comparable
Actual Adjustments Pro Forma
(1)
----------- ------------ -------------
EBITDA Reconciliation
Net loss
$(462,740) $(332,056)
$(130,684)
Interest expense
164,985 1,072 M
163,913
Depreciation and
amortization
166,769 --
166,769
Income tax benefit
(70,455) 3,178 O
(73,633)
Accounting change, net of
applicable taxes
324,102 324,102 P
--
----------- ------------ -------------
EBITDA
122,661 (3,704)
126,365
Interest, depreciation and
amortization from equity
interest in unconsolidated
subsidiaries
4,024 230
H 3,794
Interest, depreciation and
amortization attributable
to minority interests
(5,158) (4,321) I
(837)
Bond offering cost
4,504 --
4,504
Professional fees and other
3,351 --
3,351
Abandoned transaction costs
2,134 --
2,134
Amortization of unearned
compensation
2,650 --
2,650
Loss on derivative
instruments
69,370 --
69,370
Preopening costs
873 --
873
Loss on sale of assets
3,508 --
3,508
Impairment of assets
162 --
162
Write-off of leasehold
costs
2,216 --
2,216
Discontinued operations
adjustments
77,054 77,054 G
--
----------- ------------ -------------
EBITDA, as adjusted
$287,349 $69,259
$218,090
=========== ============ =============
Per Share Calculations:
Loss from continued operations
$(124,274)
$(130,684)
Loss from discontinued
operations, net of taxes
and minority interest
(14,364)
--
Accounting change, net of
applicable taxes
(324,102)
--
-----------
-------------
Net loss
$(462,740)
$(130,684)
Adjustment for preferred
stock
(107,136)
(107,136)
-----------
-------------
Net loss attributable
to
common shareholders
$(569,876)
$(237,820)
===========
=============
Basic and diluted loss per
common share:
Loss from continued
operations
$(1.37)
$(1.42)
Loss from discontinued
operations,
net of taxes
and minority
interest (0.09)
--
Accounting change,
net of
applicable taxes
(1.93)
--
-----------
-------------
Net loss
per common
share
$(3.39)
$(1.42)
===========
=============
Basic and diluted weighted
average common shares and
share equivalents
167,925
167,925
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Year-To-Date September 30, 2003 and 2002
(Unaudited)
Notes to Pro Forma Adjustments:
(A) Reduction
of hotel revenues associated with the sale of one hotel in April.
(B) Reduction
of management fees due to the termination of two
management contracts.
(C) Reduction
of dividend income from a sold investment.
(D) Corresponding
reduction of hotel expenses for hotel noted in
(A) above.
(E) Removal
of impairment charge related to Marriott Indian River.
(F) Tax benefit
associated with the pro forma adjustments using an
effective tax rate of 32.87%.
(G) Removal
of assets sold, HPT leases terminated and assets held
for sale.
(H) Removal
of equity investments sold.
(I) Removal
of minority interest of hotel held for sale.
(J) Reduction
of hotel revenues associated with the sale of five
hotels.
(K) Reduction
of management fees due to the termination of nine
hotel management contracts.
(L) Corresponding
reduction of hotel expenses for hotels noted in
(J) above.
(M) Reduction
of interest expenses associated with sold hotels.
(N) Removal
of two equity investments.
(O) Tax benefit
associated with the pro forma adjustments using an
effective tax rate of 40%.
(P) Removal
of accounting change associated with the write-off of
goodwill, according to FAS 142.
|
Wyndham International, Inc. offers upscale and
luxury hotel and resort accommodations through proprietary lodging brands
and a management services division. Based in Dallas, Wyndham International
owns, leases, manages and franchises hotels and resorts in the United States,
Canada, Mexico, the Caribbean and Europe.
This press release contains certain forward-looking
statements within the meaning of Sections 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, including
projections about future operating results. The Company's results, expectations
and objectives could differ materially from those set forth in the forward-looking
statements. |