Hotel Online  Special Report

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Wyndham Reports a Net loss of $353.2 million in the
2nd Qtr 2004 versus a $91.5 million Net Loss for the
Same Period in 2003
Takes $301 million Impairment Charge on Asset Sales
Hotel Operating Statistics

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DALLAS - Aug. 5, 2004 - Wyndham International, Inc. (AMEX:WBR) today reported its second quarter 2004 results and an enhanced strategic plan to reduce debt while maintaining brand integrity.

Wyndham International, Inc. experienced substantial increases in its second quarter 2004 results. Result highlights are as follows:

(1) Pro forma EBITDA, as adjusted, was $67.3 million, an increase of 14.3 percent over the second quarter 2003; actual EBITDA, as adjusted, was $79.5 million, meeting previous guidance; 
(2) Total Company owned and leased RevPAR was $92.19, an increase of 10.5 percent; (3) Wyndham-branded comparable owned and leased properties had a strong RevPAR penetration index of 103.9; 
(4) wyndham.com bookings were up 21.9 percent over the same period last year; 
(5) Wyndham's liquidity grew 20.0 percent to $226.4 million; 
(6) Total Company EBITDA margins increased 150 bps; 
(7) Company takes balanced steps to reduce debt by announcing enhanced strategic plan affecting 33 owned assets: 13 remaining non-proprietary and 20 Wyndham-branded hotels. Plan will maximize market conditions while retaining brand integrity.

For the second quarter ending June 30, 2004, actual earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $79.5 million, which met previous guidance, compared to $76.1 million for the same quarter last year. On a pro forma basis, EBITDA, as adjusted, excluding assets sold and held for sale, was $67.3 million compared to $58.9 million for the same quarter last year, an increase of 14.3 percent. Year-to-date, actual adjusted EBITDA, prior to adjustments for assets sold and held for sale, was $165.6 million compared to $164.0 million for the same period last year. Adjusted pro forma EBITDA was $145.1 million compared to $133.7 million for the same period in 2003, an increase of 8.5 percent.

The Company's comparable owned and leased Wyndham-branded properties posted a RevPAR of $99.26, an increase of 10.0 percent versus the same period in 2003. This increase is comprised of a 4.5 percentage-point increase in occupancy and a 3.9 percent increase in average daily rate (ADR). Wyndham International's total portfolio RevPAR was $92.19, an increase of 10.5 percent, exceeding its previous guidance. The increase is comprised of a 4.8 percentage-point increase in occupancy and a 3.6 percent increase in ADR.

Wyndham's Chairman and Chief Executive Officer, Fred J. Kleisner, said, "The hospitality industry has clearly begun a new growth cycle and is positioned for a multi-year period of material RevPAR, margin and cash flow growth. This is the fourth consecutive quarter of positive RevPAR results for Wyndham, and we will continue to take advantage of all aspects of the recovery by managing the mix of business, the channel of distribution, and selective price increases in order to drive rate and maximize flow through to EBITDA."

Including the effects of the impending 33 asset sales, discussed later in the release, which results in a $301 million impairment, Wyndham reported a net loss of $353.2 million and a pro forma net loss of $316.7 million in the second quarter 2004 versus a $91.5 million net loss and a $27.3 million pro forma net loss for the same period in 2003. For the six months ended June 30, 2004, the net loss was $382.7 million and a pro forma net loss of $342.2 million versus a net loss of $198.9 million and a pro forma net loss of $46.8 million in 2003.

After the effect of the Company's preferred dividend, the net loss per share was $2.33 on a fully diluted basis and the net loss on a pro forma basis was $2.12 per share compared to a $0.77 net loss on a fully diluted basis and a pro forma net loss of $0.39 for the same period last year. The year-to-date net loss was $2.76 per share and a pro forma net loss of $2.52 compared to a net loss of $1.64 per share and a pro forma net loss of $0.73 over the prior year.

It should be noted that on a pro forma basis, excluding the impairment associated with the 33 assets, the net loss for the three months ended June 30, 2004, was $18.3 million versus $27.3 million for the same period in 2003. For the six months ended June 30, 2004, on the same pro forma basis the loss was $43.9 million versus $46.8 million in 2003.

Operating & Brand Performance:

Total Company EBITDA margins increased 150 bps quarter over quarter aided by an increase in management contracts and franchise fees associated with new business and the careful management of corporate level expenses.

The Wyndham brand experienced significant RevPAR growth during the second quarter. The performance of comparable Wyndham-branded owned and leased properties posted a RevPAR of $99.26, an increase of 10.0 percent versus the second quarter 2003. The results are comprised of a 4.5 percentage-point increase in occupancy and a 3.9 percent increase in ADR. Wyndham-branded owned and leased properties ended the quarter with a RevPAR penetration index of 103.9 percent.

Additional RevPAR gains were realized by the Company's owned and operated, proprietary-branded segments led by the Wyndham Hotels & Resorts brand. Comparable owned and operated properties posted a RevPAR of $92.30, an increase 9.5 percent compared to the prior year. The increase is comprised of a 4.2 percentage-point increase in occupancy and a 3.5 percent increase in ADR.

Improving demand and effective management of inventory and pricing in the various distribution channels has continued to generate positive momentum. The Company's successful negotiations with third-party Internet channels have created a balanced partnership while maintaining its inventory and reaching a broader customer base.

Wyndham has been very successful in growing the distribution channels that are most profitable. Wyndham.com revenue continues to exceed all revenue generated by third-party Internet sites for Wyndham guest rooms; the growth from wyndham.com was fueled by Wyndham's best rate guarantee. Consumer-direct bookings through www.wyndham.com yielded an ADR of $121.53, and represent a 30.0 percent premium over the net third-party branded rates and a 58.9 percent rate premium over total net third-party Internet rates.

"By focusing on our proprietary booking channels, we will capture the most that the economic upswing can offer. We are well-positioned to maximize our revenue potential," said Kleisner.

In addition, net revenue through brand-direct channels, which include both voice and wyndham.com reservations, are up 21.9 percent or $13.5 million over second quarter last year. Wyndham's central reservations office continues to post strong call conversion numbers with 41.2 percent of all voice reservations being converted into actual reservations compared to 39.9 percent for the same quarter last year.

Wyndham ByRequest(R), the Company's guest recognition program, continued to maintain strong growth, increasing membership to over two million active members and driving revenues. The strength of Wyndham's brand programs, specifically Wyndham ByRequest and its online booking programs, have been key contributors to the brand's strong performance.

Last March, Wyndham along with three other prominent hotel companies joined forces to form a worldwide alliance based on the shared philosophy of providing guests with unique, personalized guest services. The new Global Hotel Alliance (GHA), consisting of hotel chains Kempinski Hotels & Resorts, Pan Pacific Hotels and Resorts, Rydges Hotels & Resorts and Wyndham Hotels & Resorts, has united 235 upscale and luxury hotels and resorts, and over 63,000 guest rooms on five continents in a shared marketing partnership to offer customers a wider range of worldwide accommodations. Since its inception, the GHA has generated more than $5.0 million in sales leads between the four partners.

Debt and Liquidity:

As of June 30, 2004, the Company's total debt was $2.49 billion (excluding the $170.3 million mortgage debt related to the Wyndham Anatole, a third-party owned hotel), a reduction of $44.4 million from March 31, 2004. The reduction is primarily the result of assets sold during the quarter, credit facility paydowns and amortization of mortgage and capital leases. Total debt breaks down as follows: Revolver $121.6 million; Term Loan I $1.018 billion; Term Loan II $332.2 million; and, Mortgage and Other Indebtedness $1.026 billion. The consolidation of the Anatole management agreement, as required by Interpretation Number 46, increases the Company's total debt by $170.3 million (as stated above), notwithstanding the fact that Wyndham has absolutely no obligation to repay this debt.

Wyndham repaid the IRL and revolving loan balances related to the lenders that did not extend their maturities to April 2006 in the amount of $19.4 million on May 12, 2004. Net proceeds from asset sales were used to pay off the loans, which were satisfied prior to their June 30, 2004, maturity date.

Wyndham's liquidity, defined as revolver availability plus cash in its overnight account, was substantially improved to approximately $226.4 million, an increase of $37.9 million or 20.0 percent from the first quarter 2004. The increase in liquidity is due to free operating cash flow, the release of mark to market collateral, reductions in outstanding letters of credit and asset sales. Cash and equivalents were $176.6 million, inclusive of $101.1 million of restricted cash. This represents a decrease of $27.8 million from the $204.4 million on hand at the end of the first quarter. The decrease is primarily the result of using cash on hand to pay down the revolving credit facility.

Development & Dispositions:

During the second quarter, Wyndham International branded a 311-room resort in Southampton Beach, Bermuda through a long-term management agreement with the property's owner. In addition, Wyndham entered into a long-term franchise agreement to brand a hotel located in Reading, Pa. The Wyndham Reading is slated to convert to the Wyndham brand in September 2004, expanding the Company's distribution.

Wyndham recently announced that the new Viva Wyndham Playa Dorada in Puerto Plata, Dominican Republic will open in January 2005. The resort, which will be the seventh property in the Viva Wyndham portfolio and fourth property in the Dominican Republic, is undergoing a $10 million renovation.

In June, Wyndham entered into a contract to sell the former Wyndham Bonaventure Resort & Spa in Weston, Fla. to The Ireland Companies, led by Thomas K. Ireland, the resort's original developer, who intends to redevelop the resort into 252 luxury residences through a $78 million total buyer investment, complete with the addition of a 48,000-square-foot Golden Door(R) spa - Wyndham's largest Golden Door Spa. The Company will manage the new Wyndham Resort & Golden Door Spa Weston upon its redevelopment.

On a year-to-date basis, the Company sold 13 assets for gross proceeds of approximately $175.3 million and at an average trailing 12-month EBITDA multiple of 22.4 times.

"With over $2.0 billion in asset sales completed since 1999, and selling at high EBITDA multiples, we believe that our disposition program has been incredibly successful as we continue to de-leverage the Company and build our proprietary Wyndham brand," said Kleisner. "We intend to continue selling all non-strategic assets, as well as select Wyndham-branded properties with the intention of retaining them in the brand portfolio pursuant to new management and franchise opportunities."

During the quarter, Wyndham sold the 37-room Fairmount - A Wyndham Historic Hotel in San Antonio and the 217-room Wyndham Dublin in Columbus, Ohio. Announced in June, an additional four properties will be sold to Highland Hospitality Group, including the 495-room Crowne Plaza Ravinia in Atlanta; the 510-room Hilton Parsippany, NJ; the 360-room Wyndham Wind Watch Hotel in Hauppauge, NJ; and the 322-room Tremont Boston - A Wyndham Historic Hotel in Boston. The transaction is expected to close this month.

Additionally, Wyndham announced this week the sale of seven assets to Lone Star Funds, including the 320-room Wyndham Roanoke Airport in Roanoke, Va.; the 125-room Union Station - A Wyndham Historic Hotel in Nashville, Tenn.; the 147-room Tutwiler - A Wyndham Historic Hotel in Birmingham, Ala.; the 148-room Holiday Inn in San Angelo, Texas; the 199-room Radisson in Dallas; the 172-room Holiday Inn Aristocrat in Dallas; and, the 252-room Doubletree Glenview, Illinois. All seven properties will continue to be managed by Wyndham International and retain their respective brand flags.

Enhanced Strategic Plan:

Given Wyndham's success in its current disposition strategy, and the number of buyers that have funds to be placed in real estate transactions, Wyndham believes that now is the optimal time to take advantage of the existing market situation and sell certain select assets to reduce debt without risking future market uncertainty.

The Company's enhanced strategy includes the sale of 33 assets: 13 remaining non-proprietary and 20 Wyndham-branded assets in de-leveraging transactions. The 33 assets are primarily located in secondary markets or are duplications of existing market assets, which have stronger market presence. In addition, the EBITDA from these assets is less than the total EBITDA from the Company's top three producing assets.

Kleisner stated, "The enhanced plan has been carefully reviewed and we strongly believe it is a balanced strategy that is in the best interest of all Wyndham stakeholders, which include those who have invested in our debt, common stock, preferred equity, and of equal importance, those who have invested their careers in our Company. This strategy has been constructed to maximize market conditions and reduce debt while maintaining the integrity of the brand through the retention of core assets as a base for future development. Because these 33 assets have been strategically selected, the brand will remain strong from a distribution standpoint."

The net proceeds from the transactions will be used to reduce debt and overall Company leverage, and will facilitate the refinancing of the Company's corporate credit facilities, which mature April 2006. The reduction of debt also will allow Wyndham to invest in its remaining owned assets through high return investment projects and potentially access capital for growth moving forward, including brand expansion into strategic markets such as New York, San Francisco, Seattle and Hawaii.

Once the asset sales are complete, Wyndham will continue to have all but two (New York and San Francisco) of the top 25 markets covered by its distribution system, and will maintain a significant stronghold with its resorts.

"Through these dispositions, we will be well positioned to further invest in capital projects that will generate near-term cash flow benefits and enhance the customer service experience and overall value to Wyndham," stated Kleisner.

Future Guidance:

The Company expects third quarter EBITDA to be in the range of $46.0 to $48.0 million, subject to additional asset sales, and RevPAR growth is estimated to be positive 3.0 to 4.0 percent.

Asset sale adjusted EBITDA guidance for the full year has been increased by $5.0 million to be in the range of $280.0 to $290.0 million, before additional asset sales. Further, full year RevPAR growth is increased to be positive 6.0 to 7.0 percent.
 

WYNDHAM INTERNATIONAL, INC.
2004 OPERATING STATISTICS BY QUARTER

                    Second Quarter        Six Months Ended June 30
              --------------------------- ----------------------------
                 2004     2003  % Change     2004   2003   % Change
              -------- -------- --------- -------- ------- ---------

COMPARABLE WYNDHAM BRANDED HOTELS (a)
Wyndham Hotels & Resorts
------------------------
  Average
   daily rate $119.64  $115.61       3.5% $126.49  $124.70       1.4%
  Occupancy      77.1%    72.9%  4.2 ppt     75.8%    71.4%  4.4 ppt
  RevPAR       $92.30   $84.28       9.5%  $95.84   $89.04       7.6%

Wyndham Luxury
 Resorts (b)
-------------
  Average
   daily rate $222.52  $216.83       2.6% $239.75  $233.54       2.7%
  Occupancy      49.9%    51.5% -1.6 ppt     49.7%    48.9%  0.8 ppt
  RevPAR      $110.93  $111.67      -0.7% $119.16  $114.18       4.4%

Wyndham Garden
--------------
  Average
   daily rate  $92.77   $89.71       3.4%  $91.81   $89.21       2.9%
  Occupancy      82.4%    82.1%  0.3 ppt     76.7%    78.7% -2.0 ppt
  RevPAR       $76.40   $73.67       3.7%  $70.42   $70.25       0.2%
 

COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
-----------------------
  Average
   daily rate $123.02  $118.38       3.9% $130.98  $128.45       2.0%
  Occupancy      80.7%    76.2%  4.5 ppt     77.8%    73.7%  4.1 ppt
  RevPAR       $99.26   $90.25      10.0% $101.88   $94.62       7.7%

Non-Proprietary
 Branded (d)
-------------
  Average
   daily rate  $91.92   $89.30       2.9%  $92.95   $91.55       1.5%
  Occupancy      65.4%    58.6%  6.7 ppt     60.2%    57.2%  3.0 ppt
  RevPAR       $60.08   $52.37      14.7%  $55.91   $52.38       6.7%

Total Portfolio
---------------
  Average
   daily rate $118.32  $114.17       3.6% $125.46  $123.08       1.9%
  Occupancy      77.9%    73.1%  4.8 ppt     74.6%    70.7%  3.9 ppt
  RevPAR       $92.19   $83.42      10.5%  $93.60   $87.02       7.6%

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 results of the Boulders, Carmel Valley Ranch, the Lodge
    at Ventana Canyon, and Isla Navidad.

(c) Reflects Wyndham Hotels & Resorts, Wyndham Luxury Resorts and
    Wyndham Garden Hotels that were branded as of Jan. 1, 2004.

(d) Non-proprietary brand hotels owned by the Company as of Jan. 1,
    2004.

                      WYNDHAM INTERNATIONAL, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            (in thousands)
                              (Unaudited)

                                       Three Months Ended
                                            June 30,
                           -------------------------------------------
                                              2004
                           -------------------------------------------
                                           Pro Forma      Comparable
                               Actual      Adjustments   Pro Forma (1)
                           -------------- ------------- --------------
 Revenues:
  Room revenues                 $166,569          $-         $166,569
  Food and beverage
   revenues                       94,461           -           94,461
  Other revenues                  37,701           -           37,701
  Anatole hotel revenue           23,958      23,958  A             -
                           -------------- -----------   --------------
  Total hotel revenues           322,689      23,958          298,731

  Management fees and
   service fee income              4,088           -            4,088
  Interest and other income          528           -              528
                           -------------- -----------   --------------
  Total revenues                 327,305      23,958          303,347
                           -------------- -----------   --------------

 Expenses:
  Room expenses                   41,445           -           41,445
  Food and beverage
   expenses                       63,612           -           63,612
  Other expenses                 117,932           -          117,932
  Anatole hotel expenses          17,069      17,069  A             -
                           -------------- -----------   --------------
  Total hotel expenses           240,058      17,069          222,989

  General and
   administrative costs           15,274           -           15,274
  Interest expense                47,200           -           47,200
  Interest expense -
   Anatole                         3,208       3,208  A             -
                           -------------- -----------   --------------
  Total operating costs and
   expenses                      305,740      20,277          285,463
                           -------------- -----------   --------------

 Revenues net of direct
  expenses                        21,565       3,681           17,884

  Adjustments:
  Professional fees and
   other                              65           -               65
  Abandoned transaction
   costs                              87           -               87
  (Gain)/loss on derivative
   instruments                    (2,402)          -           (2,402)
  Write-off of leasehold
   costs                            (400)          -             (400)
  Conversion costs                 1,054           -            1,054
  Impairment of assets           298,378           -          298,378
                           -------------- -----------   --------------
  Total adjustments              296,782           -          296,782
                           -------------- -----------   --------------

 Depreciation and
  amortization                    39,347      (1,108) A        40,455
 Depreciation and
  amortization - Anatole           2,489       2,489  A             -
 Equity in earnings from
  unconsolidated
  subsidiaries                      (575)          -             (575)
 Minority interest in
  consolidated subsidiaries            2           -                2
 Minority interest in
  consolidated subsidiaries
  - Anatole                        1,918       1,918  A             -
                           -------------- -----------   --------------
                                  43,181       3,299           39,882
                           -------------- -----------   --------------
 

  Loss from continued
   operations before taxes      (318,398)        382         (318,780)
 Income tax benefit                2,121           -            2,121
                           -------------- -----------   --------------
  Loss from continued
   operations                   (316,277)        382         (316,659)
                           -------------- -----------   --------------
 

  Gain(loss) from
   operations of
   discontinued hotels             2,701       2,701                -
  Gain on sale of assets           2,162       2,162                -
  Leasehold termination
   costs                            (188)       (188)               -
  Impairment of assets held
   for sale                      (41,880)    (41,880)               -
                           -------------- -----------   --------------
  Loss from discontinued
   operations, before
   income taxes                  (37,205)    (37,205)               -
  Income tax  benefit                249         249                -
                           -------------- -----------   --------------
  Loss from discontinued
   operations                    (36,956)    (36,956) B             -

 Net loss                      $(353,233)   $(36,574)       $(316,659)
                           ============== ===========   ==============

 EBITDA, as adjusted             $79,500     $12,165          $67,335
                           ============== ===========   ==============

                                               2003
                              ----------------------------------------
                                             Pro Forma    Comparable
                                  Actual     Adjustments  Pro Forma(1)
                              ------------- ----------- --------------
 Revenues:
  Room revenues                   $153,226     $1,019  D     $152,207
  Food and beverage revenues        91,065        498  D       90,567
  Other revenues                    37,792        736  D       37,056
  Anatole hotel revenue                  -          -               -
                              ------------- ----------   -------------
  Total hotel revenues             282,083      2,253         279,830

  Management fees and service
   fee income                        4,430        541  E        3,889
  Interest and other income            928          -             928
                              ------------- ----------   -------------
  Total revenues                   287,441      2,794         284,647
                              ------------- ----------   -------------

 Expenses:
  Room expenses                     39,075        203  F       38,872
  Food and beverage expenses        61,151        413  F       60,738
  Other expenses                   113,932        955  F      112,977
  Anatole hotel expenses                 -          -               -
                              ------------- ----------   -------------
  Total hotel expenses             214,158      1,571         212,587

  General and administrative
   costs                            15,156          -          15,156
  Interest expense                  45,801          -          45,801
  Interest expense - Anatole             -          -               -
                              ------------- ----------   -------------
  Total operating costs and
   expenses                        275,115      1,571         273,544
                              ------------- ----------   -------------

 Revenues net of direct
  expenses                          12,326      1,223          11,103

  Adjustments:
  Professional fees and other          152          -             152
  Abandoned transaction costs          312          -             312
  (Gain)/loss on derivative
   instruments                       7,425          -           7,425
  Write-off of leasehold costs         522          -             522
  Conversion costs                       -          -               -
  Impairment of assets               2,040          -           2,040
                              ------------- ----------   -------------
  Total adjustments                 10,451          -          10,451
                              ------------- ----------   -------------

 Depreciation and amortization      44,830          -          44,830
 Depreciation and amortization
  - Anatole                              -          -               -
 Equity in earnings from
  unconsolidated subsidiaries       (1,275)         -          (1,275)
 Minority interest in
  consolidated subsidiaries            291          -             291
 Minority interest in
  consolidated subsidiaries -
  Anatole                                -          -               -
                              ------------- ----------   -------------
                                    43,846          -          43,846
                              ------------- ----------   -------------

  Loss from continued
   operations before taxes         (41,971)     1,223         (43,194)
 Income tax benefit                 15,588       (324) G       15,912
                              ------------- ----------   -------------
  Loss from continued
   operations                      (26,383)       899         (27,282)
                              ------------- ----------   -------------
 

  Gain(loss) from operations
   of discontinued hotels           (3,987)    (3,987)              -
  Gain on sale of assets             4,712      4,712               -
  Leasehold termination costs      (47,102)   (47,102)              -
  Impairment of assets held
   for sale                        (62,172)   (62,172)              -
                              ------------- ----------   -------------
  Loss from discontinued
   operations, before income
   taxes                          (108,549)  (108,549)              -
  Income tax  benefit               43,419     43,419               -
                              ------------- ----------   -------------
  Loss from discontinued
   operations                      (65,130)   (65,130) H            -

 Net loss                         $(91,513)  $(64,231)       $(27,282)
                              ============= ==========   =============

 EBITDA, as adjusted               $76,060    $17,136         $58,924
                              ============= ==========   =============

(1) The Comparable Pro Forma financial statements have been adjusted
    to remove the operations of the Wyndham Anatole, 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)

                                            Three Months Ended
                                                 June 30,
                                   -----------------------------------
                                                   2004
                                   ----------------------- -----------
                                             Pro Forma    Comparable
                                    Actual   Adjustments  Pro Forma(1)
                                   --------- ------------ -----------
EBITDA Reconciliation

 Net loss                          $(353,233)  $(36,574)    $(316,659)

 Interest expense                     47,200          -        47,200
 Depreciation and amortization        39,347     (1,108) A     40,455
 Income tax benefit                   (2,121)         -        (2,121)
                                   ---------- ----------   -----------
 EBITDA                             (268,807)   (37,682)     (231,125)

 Interest, depreciation and
  amortization from equity
  interest in unconsolidated
  subsidiaries                         1,499          -         1,499
 Interest, depreciation and
  amortization attributable
  to minority interests                 (513)       (88) C       (425)
 Professional fees and other              65          -            65
 Amortization of unearned
  compensation                           691          -           691
 (Gain) loss on derivative
  instruments                         (2,402)         -        (2,402)
 Conversion Costs                      1,054          -         1,054
 Impairment of assets                298,378          -       298,378
 Write-off of leasehold costs           (400)         -          (400)
 Discontinued operations adjustment   49,935     49,935  B          -
                                   ---------- ----------   -----------

 EBITDA, as adjusted                 $79,500    $12,165       $67,335
                                   ========== ==========   ===========

Per Share Calculations:

 Loss from continued operations    $(316,277)               $(316,659)
 Loss from discontinued operations   (36,956)                       -
                                   ----------              -----------
 Net loss                          $(353,233)               $(316,659)
 Adjustment for preferred stock      (41,622)                 (41,622)
                                   ----------              -----------
 Net loss attributable to common
  shareholders                     $(394,855)               $(358,281)
                                   ==========              ===========

 Basic and diluted loss per common
  share:
 Loss from continued operations       $(2.11)                  $(2.12)
 Loss from discontinued operations     (0.22)                       -
                                   ----------              -----------
        Loss per common share         $(2.33)                  $(2.12)
                                   ==========              ===========

 Basic and diluted weighted average
  common shares and share
  equivalents                        169,361                  169,361
 

                                           2003
                      -----------------------------------------------
                                        Pro Forma        Comparable
                          Actual        Adjustments      Pro Forma(1)
                      -------------- ---------------- ---------------
EBITDA Reconciliation

 Net
  loss                     $(91,513)      $(64,231)         $(27,282)

 Interest expense            45,801              -            45,801
 Depreciation and
  amortization               44,830              -            44,830
 Income tax benefit         (15,588)           324 G         (15,912)
                      -------------- --------------   ---------------
 EBITDA                     (16,470)       (63,907)           47,437

 Interest,
  depreciation and
  amortization from
  equity interest in
  unconsolidated
  subsidiaries                1,057              -             1,057
 Interest,
  depreciation and
  amortization
  attributable
  to minority
  interests                    (541)          (420) I           (121)
 Professional fees and
  other                         150              -               150
 Amortization of
  unearned
  compensation                  414              -               414
 (Gain)loss on
  derivative
  instruments                 7,425              -             7,425
 Conversion Costs                 -              -                 -
 Impairment of assets         2,040              -             2,040
 Write-off of
  leasehold costs               522              -               522
 Discontinued
  operations
  adjustment                 81,463         81,463 H               -
                      -------------- --------------   ---------------

 EBITDA, as adjusted        $76,060        $17,136           $58,924
                      ============== ==============   ===============

Per Share
 Calculations:

 Loss from continued
  operations               $(26,383)                        $(27,282)
 Loss from
  discontinued
  operations                (65,130)                               -
                      --------------                  ---------------
 Net loss                  $(91,513)                        $(27,282)
 Adjustment for
  preferred stock           (38,509)                         (38,509)
                      --------------                  ---------------
 Net loss attributable
  to common
  shareholders            $(130,022)                        $(65,791)
                      ==============                  ===============

 Basic and diluted
  loss per common
  share:
 Loss from continued
  operations                 $(0.39)                          $(0.39)
 Loss from
  discontinued
  operations                  (0.38)                               -
                      --------------                  ---------------
        Loss per
         common share        $(0.77)                          $(0.39)
                      ==============                  ===============

 Basic and diluted
  weighted average
  common shares and
  share equivalents         168,079                          168,079

                      WYNDHAM INTERNATIONAL, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        Quarter Ended June 30,
                             2004 and 2003
                              (Unaudited)

Notes to Pro Forma  Adjustments:

A) Removal of Wyndham Anatole hotel results of operations which in
   accordance with FIN 46 were consolidated in 2004.

B) Removal of assets sold, leases terminated and assets held for sale.

C) Removal of minority interest of hotel held for sale.

D) Reduction of hotel revenues associated with the sale of one hotel.

E) Reduction of management fees due to the termination of six
   management contracts.

F) Corresponding reduction of hotel expenses for hotels noted in (D)
   above.

G) Tax benefit associated with the pro forma adjustments using an
   effective tax rate of 40%.

H) Removal of assets sold, leases terminated and assets held for sale.

I) Removal of minority interest of hotel held for sale.

                      WYNDHAM INTERNATIONAL, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            (in thousands)
                              (Unaudited)

                                         Six Months Ended
                                             June 30,
                            ------------------------------------------
                                              2004
                            ------------------------------------------
                                              Pro Forma   Comparable
                                 Actual      Adjustments  Pro Forma(1)
                            ---------------- ------------ ------------
 Revenues:
    Room revenues                  $338,978         $-      $338,978
    Food and beverage
     revenues                       187,878          -       187,878
    Other revenues                   82,778          -        82,778
    Anatole hotel revenue            56,281     56,281  A          -
                            ---------------- ----------   -----------
    Total hotel revenues            665,915     56,281       609,634

    Management fees and
     service fee income               8,805        112  B      8,693
    Interest and other
     income                           1,045          -         1,045
                            ---------------- ----------   -----------
    Total revenues                  675,765     56,393       619,372
                            ---------------- ----------   -----------

 Expenses:
    Room expenses                    82,197          -        82,197
    Food and beverage
     expenses                       126,969          -       126,969
    Other expenses                  240,032          -       240,032
    Anatole hotel expenses           37,207     37,207  A          -
                            ---------------- ----------   -----------
    Total hotel expenses            486,405     37,207       449,198

    General and
     administrative costs            29,624          -        29,624
    Interest expense                 97,155          -        97,155
    Interest expense -
     Anatole                          6,403      6,403  A          -
                            ---------------- ----------   -----------
    Total operating costs
     and expenses                   619,587     43,610       575,977
                            ---------------- ----------   -----------

 Revenues net of direct
  expenses                           56,178     12,783        43,395

    Adjustments:
    Professional fees and
     other                              261          -           261
    Abandoned transaction
     costs                              114          -           114
    Loss on derivative
     instruments                      1,934          -         1,934
    Write-off leasehold
     costs                             (400)         -          (400)
    Conversion costs                  1,054          -         1,054
    Loss on sale of assets                -          -             -
    Impairment of assets            298,378          -       298,378
                            ---------------- ----------   -----------
    Total adjustments               301,341          -       301,341
                            ---------------- ----------   -----------

 Depreciation and
  amortization                       80,706     (2,217) A     82,923
 Depreciation and
  amortization - Anatole              4,713      4,713  A          -
 Equity in earnings from
  unconsolidated
  subsidiaries                       (1,366)         -        (1,366)
 Minority interest in
  consolidated subsidiaries             114          -           114
 Minority interest in
  consolidated subsidiaries
  - Anatole                           9,414      9,414  A          -
                            ---------------- ----------   -----------
                                     93,581     11,910        81,671
                            ---------------- ----------   -----------

 Loss from continued
  operations before taxes          (338,744)       873      (339,617)
 Income tax (provision)
  benefit                            (2,615)         -        (2,615)
                            ---------------- ----------   -----------
    Loss from continued
     operations                    (341,359)       873      (342,232)
                            ---------------- ----------   -----------
 

    Gain(loss) from
     operations of
     discontinued hotels              1,912      1,912             -
    Gain on sale of assets            1,144      1,144             -
    Leasehold termination
     costs                             (197)      (197)            -
    Impairment of assets
     held for sale                  (43,844)   (43,844)            -
                            ---------------- ----------   -----------
    Loss from discontinued
     operations, before
     income taxes                   (40,985)   (40,985)            -
    Income tax (provision)
     benefit                           (324)      (324)            -
                            ---------------- ----------   -----------
    Loss from discontinued
     operations                     (41,309)   (41,309) C          -

 Net loss                         $(382,668)  $(40,436)    $(342,232)
                            ================ ==========   ===========

 EBITDA, as adjusted               $165,554    $20,414      $145,140
                            ================ ==========   ===========

(1) The Comparable Pro Forma financial statements have been adjusted
    to remove the operations of the Wyndham Anatole, hotels sold and
    related interest expense from corresponding retired debt and
    management contract revenue from terminated management contracts.

                                              2003
                            ------------------------------------------
                                              Pro Forma   Comparable
                                 Actual       Adjustments Pro Forma(1)
                            ----------------  ------------ -----------
 Revenues:
   Room revenues                   $319,099      $3,689  E   $315,410
   Food and beverage
    revenues                        181,761       1,779  E    179,982
   Other revenues                    84,651       2,107  E     82,544
   Anatole hotel revenue                  -           -             -
                            ----------------  ----------   -----------
   Total hotel revenues             585,511       7,575       577,936

   Management fees and
    service fee income                8,850       1,109  F      7,741
   Interest and other income          2,184           6  G      2,178
                            ----------------  ----------   -----------
   Total revenues                   596,545       8,690       587,855
                            ----------------  ----------   -----------

 Expenses:
   Room expenses                     78,348         706  H     77,642
   Food and beverage
    expenses                        123,085       1,400  H    121,685
   Other expenses                   230,254       3,262  H    226,992
   Anatole hotel expenses                 -           -             -
                            ----------------  ----------   -----------
   Total hotel expenses             431,687       5,368       426,319

   General and
    administrative costs             30,964           -        30,964
   Interest expense                  88,930           -        88,930
   Interest expense -
    Anatole                               -           -             -
                            ----------------  ----------   -----------
   Total operating costs and
    expenses                        551,581       5,368       546,213
                            ----------------  ----------   -----------

 Revenues net of direct
  expenses                           44,964       3,322        41,642

   Adjustments:
   Professional fees and
    other                             2,436           -         2,436
   Abandoned transaction
    costs                               438           -           438
   Loss on derivative
    instruments                      19,093           -        19,093
   Write-off leasehold costs            522           -           522
   Conversion costs                       -           -             -
   Loss on sale of assets             4,937           -         4,937
   Impairment of assets               6,133       4,093  I      2,040
                            ----------------  ----------   -----------
   Total adjustments                 33,559       4,093        29,466
                            ----------------  ----------   -----------

 Depreciation and
  amortization                       90,732           -        90,732
 Depreciation and
  amortization - Anatole                  -           -             -
 Equity in earnings from
  unconsolidated
  subsidiaries                         (701)          -          (701)
 Minority interest in
  consolidated subsidiaries             342           -           342
 Minority interest in
  consolidated subsidiaries
  - Anatole                               -           -             -
                            ----------------  ----------   -----------
                                     90,373           -        90,373
                            ----------------  ----------   -----------
 

 Loss from continued
  operations before taxes           (78,968)       (771)      (78,197)
 Income tax (provision)
  benefit                            31,985         615  J     31,370
                            ----------------  ----------   -----------
 Loss from continued
  operations                        (46,983)       (156)      (46,827)
                            ----------------  ----------   -----------
 

   Gain(loss) from
    operations of
    discontinued hotels             (16,105)    (16,105)            -
   Gain on sale of assets             4,712       4,712             -
   Leasehold termination
    costs                          (151,394)   (151,394)            -
   Impairment of assets held
    for sale                        (90,449)    (90,449)            -
                            ----------------  ----------   -----------
   Loss from discontinued
    operations, before
    income taxes                   (253,236)   (253,236)            -
   Income tax (provision)
    benefit                         101,294     101,294             -
                            ----------------  ----------   -----------
   Loss from discontinued
    operations                     (151,942)   (151,942) K          -

 Net loss                         $(198,925)  $(152,098)     $(46,827)
                            ================  ==========   ===========

 EBITDA, as adjusted               $164,005     $30,278      $133,727
                            ================  ==========   ===========

(1) The Comparable Pro Forma financial statements have been adjusted
    to remove the operations of the Wyndham Anatole, 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)

                                           Six Months Ended
                                               June 30,
                                --------------------------------------
                                                 2004
                                ------------------------ -----------
                                             Pro Forma    Comparable
                                  Actual     Adjustments  Pro Forma(1)
                                ----------  ------------ -------------
EBITDA Reconciliation

 Net loss                       $(382,668)   $(40,436)    $(342,232)

 Interest expense                  97,155           -        97,155
 Depreciation and amortization     80,706      (2,217) A     82,923
 Income tax benefit                 2,615           -         2,615
                                ----------  ----------   -----------
 EBITDA                          (202,192)    (42,653)     (159,539)

 Interest, depreciation and
  amortization from equity
  interest in unconsolidated
  subsidiaries                      2,777           -         2,777
 Interest, depreciation and
  amortization attributable
  to minority interests              (819)       (165) D       (654)
 Professional fees and other          125           -           125
 Amortization of unearned
  compensation                      1,465           -         1,465
 Loss on derivative instruments     1,934           -         1,934
 Conversion costs                   1,054           -         1,054
 Loss on sale of assets                 -           -             -
 Impairment of assets             298,378           -       298,378
 Write-off of leasehold costs        (400)          -          (400)
 Discontinued operations
  adjustments                      63,232      63,232  C          -
                                ----------  ----------   -----------

 EBITDA, as adjusted             $165,554     $20,414      $145,140
                                ==========  ==========   ===========
 

Per Share Calculations:

 Loss from continued operations $(341,359)                $(342,232)
 Loss from discontinued
  operations                      (41,309)                        -
                                ----------               -----------
 Net loss                       $(382,668)                $(342,232)
 Adjustment for preferred stock   (82,435)                  (82,435)
                                ----------               -----------
 Net loss attributable to common
  shareholders                  $(465,103)                $(424,667)
                                ==========               ===========

 Basic and diluted loss per
  common share:
 Loss from continued operations    $(2.51)                   $(2.52)
 Loss from discontinued
  operations, net of taxes and
  minority interest                 (0.25)                        -
                                ----------               -----------
      Net loss per common share    $(2.76)                   $(2.52)
                                ==========               ===========

 Basic and diluted weighted
  average common shares and
  share equivalents               168,808                   168,808
 

                                              2003
                            ------------------------------------------
                                         Pro Forma       Comparable
                              Actual     Adjustments     Pro Forma(1)
                            ---------- -------------- ----------------
EBITDA Reconciliation

 Net loss                   $(198,925)   $(152,098)          $(46,827)

 Interest expense              88,930            -             88,930
 Depreciation and
  amortization                 90,732            -             90,732
 Income tax benefit           (31,985)        (615) J         (31,370)
                            ---------- ------------   ----------------
 EBITDA                       (51,248)    (152,713)           101,465

 Interest, depreciation and
  amortization from equity
  interest in unconsolidated
  subsidiaries                  2,571          (63) L           2,634
 Interest, depreciation and
  amortization attributable
  to minority interests        (1,193)        (831) M            (362)
 Professional fees and other    2,433            -              2,433
 Amortization of unearned
  compensation                    965            -                965
 Loss on derivative
  instruments                  19,093            -             19,093
 Conversion costs                   -            -                  -
 Loss on sale of assets         4,937            -              4,937
 Impairment of assets           6,133        4,093 I            2,040
 Write-off of leasehold
  costs                           522            -                522
 Discontinued operations
  adjustments                 179,792      179,792 K                -
                            ---------- ------------   ----------------

 EBITDA, as adjusted         $164,005      $30,278           $133,727
                            ========== ============   ================
 

Per Share Calculations:

 Loss from continued
  operations                 $(46,983)                       $(46,827)
 Loss from discontinued
  operations                 (151,942)                              -
                            ----------                ----------------
 Net loss                   $(198,925)                       $(46,827)
 Adjustment for preferred
  stock                       (76,308)                        (76,308)
                            ----------                ----------------
 Net loss attributable to
  common shareholders       $(275,233)                      $(123,135)
                            ==========                ================

 Basic and diluted loss per
  common share:
 Loss from continued
  operations                   $(0.73)                         $(0.73)
 Loss from discontinued
  operations, net of taxes
  and minority interest         (0.91)                              -
                            ----------                ----------------
   Net loss per common share   $(1.64)                         $(0.73)
                            ==========                ================

 Basic and diluted weighted
  average common shares and
  share equivalents           168,042                         168,042

                      WYNDHAM INTERNATIONAL, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                Six Months Ended June 30, 2004 and 2003
                              (Unaudited)
 

Notes to Pro Forma Adjustments:

A) Removal of Wyndham Anatole hotel results of operations which in
   accordance with FIN 46 were consolidated in 2004.

B) Reduction of management fees due to the termination of two
   management contracts.

C) Removal of assets sold, leases terminated and assets held for sale.

D) Removal of minority interest of hotel held for sale.

E) Reduction of hotel revenues associated with the sale of one hotel.

F) Reduction of management fees due to the termination of six
   management contracts.

G) Reduction of dividend income from a sold investment.

H) Corresponding reduction of hotel expenses for hotels noted in (E)
   above.

I) Removal of impairment charge related to Marriott Indian River.

J) Tax benefit associated with the pro forma adjustments using an
   effective tax rate of 40%.

K) Removal of assets sold, leases terminated and assets held for sale.

L) Removal of equity investments sold.

M) Removal of minority interest of hotel held for sale.

Based in Dallas, Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Wyndham owns, leases, manages and franchises hotels and resorts in the U.S., Canada, Mexico, the Caribbean and Europe, and guarantees that the best rates for its properties will be found on its proprietary Web site.

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. 
 


 
 
Contact:

Wyndham International, Inc. 
wyndham.com

.
Also See: Wyndham Reports Net Loss of $29.4 million for 1st Qtr 2004 Compared to Prior Year Loss of $107.4 million; Sold 11 Hotels During First Quarter / Hotel Operating Statistics / May 2004
Four Years Ago Wyndham Received the Worst Grade in NAACP's Annual Lodging Report; Diversity Priories Now Paying Off / May 2004
Fred Kleisner Optimistic Wyndham Will Complete Restructuring in 2003 / January 2003
Wyndham Selling 13 Hotels for $447 million to Pay Debt / Sept 2002


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