Table 1
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
In addition to other measures, management
evaluates the operating
results of each of its reportable
segments based upon net revenues and
"EBITDA," which is defined as net
income before depreciation and
amortization, interest expense (excluding
interest on securitized vacation
ownership debt), interest income,
income taxes and cumulative effect of
accounting change, net of tax, each
of which is presented on the Company's
Consolidated and Combined Statements
of Income. The Company's presentation
of EBITDA may not be comparable to
similarly-titled measures used by other
companies.
The following tables summarize net
revenues and EBITDA for reportable
segments, as well as reconcile EBITDA
to net income for the three and
nine months ended September 30, 2007
and 2006:
Three Months Ended September 30,
--------------------------------------
2007
2006
------------------ -----------------
Net
Net
Revenues EBITDA(c) Revenues EBITDA(c)
-------- -------- ------- --------
Lodging
$211 $70
$189 $67
Vacation Exchange and Rentals
336 103
310 97
Vacation Ownership
671 116
551 88
-------- -------- ------- --------
Total
Reportable Segments 1,218
289 1,050 252
Corporate and Other (a) (b)
(2) (41)
(3) (76)
-------- -------- ------- --------
Total
Company
$1,216 $248 $1,047
$176
======== ======== ======= ========
Reconciliation of EBITDA to Net
Income
EBITDA
$248
$176
Depreciation and amortization
43
37
Interest expense
20
17
Interest income
(4)
(5)
--------
--------
Income before income taxes
189
127
Provision for income taxes
72
35
--------
--------
Net income
$117
$92
========
========
Nine Months Ended September 30,
--------------------------------------
2007
2006
------------------ -----------------
Net
Net
Revenues EBITDA(d) Revenues EBITDA(d)
-------- -------- ------- --------
Lodging
$549 $174 $509
$162
Vacation Exchange and Rentals
937 237
853 206
Vacation Ownership
1,849 279 1,514
236
-------- -------- ------- --------
Total
Reportable Segments 3,335
690 2,876 604
Corporate and Other (a) (b)
(7) (40)
(4) (81)
-------- -------- ------- --------
Total
Company
$3,328 $650 $2,872
$523
======== ======== ======= ========
Reconciliation of EBITDA to Net
Income
EBITDA
$650
$523
Depreciation and amortization
122
107
Interest expense
55
50
Interest income
(9)
(30)
--------
--------
Income before income taxes
482
396
Provision for income taxes
184
137
Income before cumulative effect of
--------
--------
accounting change
298
259
Cumulative effect of accounting
change, net of tax
-
(65)
--------
--------
Net income
$298
$194
========
========
(a) Includes the elimination of transactions
between segments; excludes
incremental
stand alone company costs through July 31, 2006.
(b) Includes $25 million of a net
expense and $5 million of a net benefit
related to
the resolution of and adjustment to certain contingent
liabilities
and assets during the three and nine months ended
September
30, 2007, respectively.
(c) Includes separation and related
costs of $1 million and $2 million for
Vacation Ownership
and Corporate and Other, respectively, during the
three months
ended September 30, 2007 and $1 million, $1 million, $1
million and
$65 million for Lodging, Vacation Exchange and Rentals,
Vacation Ownership
and Corporate and Other, respectively, during the
three months
ended September 30, 2006.
(d) Includes separation and related
costs of $9 million and $7 million for
Vacation Ownership
and Corporate and Other, respectively, during the
nine months
ended September 30, 2007 and $1 million, $3 million, $3
million and
$69 million for Lodging, Vacation Exchange and Rentals,
Vacation Ownership
and Corporate and Other, respectively, during the
nine months
ended September 30, 2006.
Table 2
Wyndham Worldwide Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, September 30,
-------- -------- -------- --------
2007 2006 2007
2006
Net revenues
-------- -------- -------- --------
Vacation ownership
interest sales $467 $396
$1,283 $1,081
Service fees and
membership 442
392 1,232 1,088
Franchise fees
155 146
406 389
Consumer financing
93 77
261 211
Other
59 36
146 103
-------- -------- -------- --------
Net revenues
1,216 1,047 3,328
2,872
-------- -------- -------- --------
Expenses
Operating
469 382 1,323
1,083
Cost of vacation
ownership
interests
101 92
296 239
Marketing and reservation
229 198
632 566
General and administrative
(a) 174
131 419
385
Separation and related
costs (b) 3
68 16
76
Depreciation and
amortization 43
37 122
107
-------- -------- -------- --------
Total expenses
1,019 908 2,808
2,456
-------- -------- -------- --------
Operating income
197 139
520 416
Other income, net
(8) -
(8) -
Interest expense
20 17
55 50
Interest income
(4) (5)
(9) (30)
-------- -------- -------- --------
Income before income taxes
189 127
482 396
Provision for income taxes
72 35
184 137
-------- -------- -------- --------
Income before cumulative effect of
accounting change
117 92
298 259
Cumulative effect of accounting
change, net of tax (c)
- -
- (65)
-------- -------- -------- --------
Net income
$117 $92
$298 $194
======== ======== ======== ========
Earnings per share
Basic
Income before cumulative
effect of
accounting
change
$0.65 $0.46 $1.63
$1.29
Cumulative effect
of accounting
change, net
of tax
- -
- (0.32)
-------- -------- -------- --------
Net income
$0.65 $0.46 $1.63
$0.97
======== ======== ======== ========
Diluted
Income before cumulative
effect of
accounting
change
$0.65 $0.45 $1.62
$1.29
Cumulative effect
of accounting
change, net
of tax
- -
- (0.32)
-------- -------- -------- --------
Net income
$0.65 $0.45 $1.62
$0.97
======== ======== ======== ========
Weighted average shares outstanding
Basic
179 200
183 200
Diluted
180 203
184 201
(a) Includes $25 million of a net expense
and $5 million of a net
benefit related
to the resolution of and adjustment to certain
contingent
liabilities and assets during the three and nine months
ended September
30, 2007, respectively.
(b) Represents costs that the Company
incurred in connection with the
execution
of its separation from its former parent, Cendant (now Avis
Budget Group,
Inc.). Such amounts, net of tax, were $2 million and $43
million during
the three months ended September 30, 2007 and 2006,
respectively,
and $10 million and $47 million during the nine months
ended September
30, 2007 and 2006, respectively.
(c) Represents non-cash charges to
reflect the cumulative effect of
adopting Statement
of Financial Accounting Standards No. 152,
"Accounting
for Real Estate Time-Sharing Transactions," on January 1,
2006.
Table 3
(1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1
Q2 Q3
Q4 Full
Year
---- ------- ------- ------- --------
----------
Lodging (a)
Number of
Rooms (b)
2007 539,300 541,700 540,900
N/A N/A
2006 525,500 535,900 533,700
543,200 N/A
2005 519,300 516,000 512,000
532,700 N/A
2004 515,700 514,500 509,600
521,200 N/A
Weighted Average
Rooms
Available
2007 529,700 530,700 529,800
N/A N/A
2006 520,600 531,000 529,200
529,900 527,700
2005 517,400 512,000 511,500
535,100 519,000
2004 512,000 510,700 507,300
503,000 508,200
RevPAR
2007 $31.35 $38.35
$43.10 N/A
N/A
2006 $30.45 $36.97
$40.82 $31.41 $34.95
2005 $25.53 $31.91
$36.86 $29.72 $31.00
2004 $22.50 $29.08
$34.04 $24.53 $27.55
Royalty, Marketing
and Reservation
Revenues
(in 000s)
2007 $105,426 $129,453 $146,290
N/A N/A
2006 $102,741 $125,409 $138,383 $104,505
$471,039
2005 $84,704 $104,281 $119,829 $99,804
$408,620
2004 $77,830 $97,959 $112,765 $82,502
$371,058
Vacation Exchange
and Rentals
Average Number
of Members
(in 000s)
2007 3,474 3,506
3,538 N/A
N/A
2006 3,292 3,327
3,374 3,429 3,356
2005 3,148 3,185
3,233 3,271 3,209
2004 2,995 3,031
3,074 3,116 3,054
Annual Dues and
Exchange Revenue
Per Member
2007 $155.60 $132.33 $131.38
N/A N/A
2006 $152.10 $130.37 $132.31
$128.13 $135.62
2005 $159.12 $134.98 $125.64
$124.05 $135.76
2004 $159.55 $132.51 $123.55
$124.43 $134.82
Vacation Rental
Transactions
(in 000s)
2007 398
326 360
N/A N/A
2006 385
310 356
293 1,344
2005 367
311 344
278 1,300
2004 309
246 295
253 1,104
Average Net Price
Per Vacation
Rental
2007 $349.73 $415.71 $506.78
N/A N/A
2006 $312.51 $374.91 $442.75
$356.16 $370.93
2005 $331.37 $363.14 $412.66
$325.62 $359.27
2004 $279.46 $333.76 $368.79
$337.42 $328.77
Vacation Ownership
Gross Vacation
Ownership Interest
Sales (in 000s) 2007
$430,000 $523,000 $552,000
N/A N/A
2006 $357,000 $434,000 $482,000 $469,000 $1,743,000
2005 $281,000 $354,000 $401,000 $360,000 $1,396,000
2004 $274,000 $315,000 $361,000 $304,000 $1,254,000
Tours
2007 240,000 304,000 332,000
N/A N/A
2006 208,000 273,000 312,000
254,000 1,046,000
2005 195,000 250,000 272,000
217,000 934,000
2004 181,000 227,000 246,000
205,000 859,000
Volume Per
Guest (VPG)
2007 $1,607 $1,596
$1,545 N/A
N/A
2006 $1,475 $1,426
$1,434 $1,623 $1,486
2005 $1,349 $1,284
$1,349 $1,507 $1,368
2004 $1,303 $1,253
$1,273 $1,327 $1,287
Note: Full year amounts may not foot
across due to rounding.
(a) Quarterly drivers in the Lodging
segment include the acquisitions of
Ramada International
(December 2004), Wyndham Hotels and Resorts
(October 2005)
and Baymont Inn & Suites (April 2006) from their
acquisition
dates forward. Therefore, the operating statistics are
not presented
on a comparable basis.
(b) Numbers include affiliated rooms
from the fourth quarter of 2006
forward.
Table 3
(2 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
GLOSSARY OF TERMS
Lodging
Number of Rooms: Represents the number
of rooms at lodging properties
under franchise and/or management agreements at the end
of the period.
Weighted Average Rooms Available:
Represents the weighted average
number of hotel rooms available for rental during the
period.
Average Occupancy Rate: Represents
the percentage of available rooms
occupied during the period.
Average Daily Rate (ADR): Represents
the average rate charged for
renting a lodging room for one day.
RevPAR: Represents revenue per available
room and is calculated by
multiplying average occupancy rate by ADR.
Royalty, Marketing and Reservation
Revenues: Royalty, marketing and
reservation revenues are typically based on a percentage
of the gross room
revenues of each franchised hotel. Royalty revenue is
generally a fee
charged to each franchised hotel for the use of one of
our trade names,
while marketing and reservation revenues are fees that
we collect and are
contractually obligated to spend to support marketing
and reservation
activities. Marketing and reservation fees are also included
in the above
table within marketing, reservation and TripRewards revenues.
Vacation Exchange and Rentals
Average Number of Members: Represents
members in our vacation exchange
programs who pay annual membership dues. For additional
fees, such
participants are entitled to exchange intervals for intervals
at other
properties affiliated with our vacation exchange business.
In addition,
certain participants may exchange intervals for other
leisure-related
products and services.
Annual Dues and Exchange Revenue Per
Member: Represents total revenues
from annual membership dues and exchange fees generated
for the period
divided by the average number of vacation exchange members
during the year.
Vacation Rental Transactions: Represents
the gross number of
transactions that are generated in connection with customers
booking their
vacation rental stays through us. In our European vacation
rentals
businesses, one rental transaction is recorded each time
a standard
one-week rental is booked; however, in the United States,
one rental
transaction is recorded each time a vacation rental stay
is booked,
regardless of whether it is less than or more than one
week.
Average Net Price Per Vacation Rental:
Represents the net rental price
generated from renting vacation properties to customers
divided by the
number of rental transactions.
Vacation Ownership
Gross Vacation Ownership Interest
Sales: Represents gross sales of
vacation ownership interests (including tele-sales upgrades,
which are a
component of upgrade sales) before deferred sales and
loan loss provisions.
Tours: Represents the number of tours
taken by guests in our efforts to
sell vacation ownership interests.
Volume per Guest (VPG): Represents
revenue per guest and is calculated
by dividing the gross vacation ownership interest sales,
excluding
tele-sales upgrades, which are a component of upgrade
sales, by the number
of tours.
Table 4
Wyndham Worldwide Corporation
ADDITIONAL DATA
Year Q1 Q2
Q3 Q4 Full Year
---- ------- ------- ------- ------- ---------
Lodging (a)
Number of
Properties (b)
2007 6,450 6,460
6,460 N/A
N/A
2006 6,300 6,440
6,420 6,470 N/A
2005 6,400 6,380
6,350 6,350 N/A
2004 6,380 6,390
6,350 6,400 N/A
Marketing,
Reservation and
TripRewards
Revenues
(in 000s) (c)
2007 $61,369 $74,575 $84,820
N/A N/A
2006 $58,572 $70,931 $78,856 $61,135 $269,495
2005 $45,066 $56,558 $65,812 $58,053 $225,491
2004 $39,092 $50,181 $57,485 $43,284 $190,044
Property Management
Reimbursable
Revenue
(in 000s) (d)
2007 $15,624 $22,338 $25,612
N/A N/A
2006 $15,732 $19,935 $17,210 $16,263
$69,142
2005 $- $-
$- $17,291 $17,291
2004 $- $-
$- $-
$-
Note: Full year amounts may not foot
across due to rounding.
(a) Information includes the acquisitions
of Ramada International
(December
2004), Wyndham Hotels and Resorts (October 2005) and Baymont
Inn &
Suites (April 2006) from their acquisition dates forward.
Therefore,
the data is not presented on a comparable basis.
(b) Numbers include affiliated hotels
from the fourth quarter of 2006
forward.
(c) Marketing and reservation revenues
represent fees we receive from
franchisees
that are to be expended for marketing purposes or the
operation
of a centralized, brand-specific reservation system for the
respective
franchisees. These fees are typically based on a
percentage
of the gross room revenues of each franchised hotel.
Marketing
and reservation fees are also included in the above table
within royalty,
marketing and reservation revenues. TripRewards
revenues represent
fees we receive from the franchisees relating to
our loyalty
program.
(d) Primarily represents payroll costs
in our hotel management business
that we incur
and pay on behalf of property owners and for which we
are reimbursed
by the property owners.
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
Sept. June March Dec.
Sept.
30, 30, 31,
31, 30,
2007 2007 2007 2006
2006
Securitized vacation ownership
------ ------ ------ ------ ------
debt
Term notes
$1,148 $1,322 $887 $838
$967
Bank conduit facility
(a) 777
491 826 625
371
Securitized vacation ownership
------ ------ ------ ------ ------
debt (b)
1,925 1,813 1,713 1,463
1,338
Less: Current portion of
securitized vacation ownership
debt
304 242 231
178 213
Long-term securitized vacation
------ ------ ------ ------ ------
ownership debt
$1,621 $1,571 $1,482 $1,285 $1,125
====== ====== ====== ====== ======
Debt:
6.00% Senior unsecured notes
(due December 2016) (c)
$797 $797 $796 $796
$-
Revolving credit facility
(due July 2011) (d)
133 215 48
- 150
Interim loan facility (due July
2007)
- -
- -
350
Term loan (due July 2011)
300 300 300
300 300
Bank borrowings:
Vacation ownership
148 130 112
103 113
Vacation rentals (e)
- -
- 73
70
Vacation rentals capital leases
153 147 147
148 144
Other
14 14 16
17 37
------ ------ ------ ------ ------
Total debt
1,545 1,603 1,419 1,437
1,164
Less: Current portion of debt
159 140 123
115 143
------ ------ ------ ------ ------
Long-term debt
$1,386 $1,463 $1,296 $1,322 $1,021
====== ====== ====== ====== ======
(a) This 364-day vacation ownership
bank conduit facility was renewed and
upsized to
$1,000 million on November 13, 2006. On October 31, 2007,
the facility
was renewed through October 2008 and upsized to $1,200
million.
(b) This debt is collateralized by
$2,428 million, $2,288 million, $2,198
million, $1,844
million and $1,718 million of underlying vacation
ownership
contract receivables and related assets at September 30,
2007, June
30, 2007, March 31, 2007, December 31, 2006 and September
30, 2006,
respectively.
(c) These notes represent $800 million
aggregate principal less $3 million
of original
issue discount.
(d) The Company's revolving credit
facility has a borrowing capacity of
$900 million.
At September 30, 2007, the Company has $48 million of
outstanding
letters of credit and a remaining borrowing capacity of
$719 million.
(e) The borrowings under this facility
were repaid on January 31, 2007.
Table 6
Wyndham
Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
September 30, 2007
Average
Revenue
Average Per
Number Number Average Daily Available
of of Occupancy
Rate Room
Brand
Properties Rooms Rate (ADR)
(RevPAR)
Wyndham Hotels and Resorts
75 20,585 65.3% $110.47
$72.10
Wingate Inn
152 13,952 67.1% $89.71
$60.18
Ramada
854 103,230 61.6% $79.38
$48.91
Baymont
182 15,962 63.6% $72.61
$46.16
AmeriHost Inn
39 2,754 58.4% $70.99
$41.45
Days Inn
1,857 150,667 59.7% $67.91
$40.57
Super 8
2,061 127,038 65.4% $62.05
$40.60
Howard Johnson
465 44,422 53.9% $69.40
$37.41
Travelodge
492 36,639 59.1% $71.48
$42.27
Knights Inn
261 18,193 45.2% $46.49
$21.01
Unmanaged, Affiliated and
Managed, Non-Proprietary
Hotels (*)
23 7,475 N/A
N/A N/A
----------------
Total
6,461 540,917 60.9% $70.77
$43.10
================
September 30, 2006
Average
Revenue
Average Per
Number Number Average Daily Available
of of Occupancy
Rate Room
Brand
Properties Rooms Rate (ADR)
(RevPAR)
Wyndham Hotels and Resorts
89 24,241 70.1% $106.15
$74.45
Wingate Inn
154 14,171 68.1% $85.41
$58.14
Ramada
877 105,901 60.1% $72.97
$43.87
Baymont
129 11,633 64.1% $64.63
$41.45
AmeriHost Inn
107 7,495 60.3% $65.65
$39.60
Days Inn
1,848 149,926 59.1% $64.12
$37.86
Super 8
2,036 124,584 64.2% $59.60
$38.28
Howard Johnson
456 42,041 53.5% $68.49
$36.65
Travelodge
499 37,053 58.7% $69.37
$40.70
Knights Inn
225 16,655 47.9% $42.41
$20.30
----------------
Total
6,420 533,700 60.5% $67.50
$40.82
================
NOTE: A glossary of terms is included
in Table 3 (2 of 2).
(*) Represents 1) affiliated properties
for which we receive a fee for
reservation
services provided and 2) properties managed under the CHI
Limited joint
venture. These properties are not branded; as such,
certain operating
statistics (such as average occupancy rate, ADR and
RevPAR) are
not relevant. Ten of the managed properties are scheduled
to be branded
or cobranded as either Wyndham or Ramada during 2007 and
2008.
Table 7
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Nine
Three Months Ended Months
--------------------------- Ended
March 31, June 30, Sept. 30, Sept. 30,
2007 2007 2007
2007
--------- -------- --------- ---------
Reported EBITDA
$192 $211 $248
$650
Separation and related
costs (a) 6
7 3
16
Resolution of and
adjustment to
contingent
liabilities and
assets (b)
(13) (17) 25
(5)
--------- -------- --------- ---------
Adjusted EBITDA
$185 $201 $276
$661
--------- -------- --------- ---------
Reported PreTax Income
$139 $154 $189
$482
Separation and related
costs (a) 6
7 3
16
Resolution of and
adjustment to
contingent
liabilities and
assets (b)
(13) (17) 25
(5)
--------- -------- --------- ---------
Adjusted PreTax Income
$132 $144 $217
$493
--------- -------- --------- ---------
Reported Tax Provision
$(53) $(58) $(72)
$(184)
Separation and related
costs (c) (2)
(3) (1)
(6)
Resolution of and
adjustment to
contingent
liabilities and
assets (c)
4 6
(10) 1
--------- -------- --------- ---------
Adjusted Tax Provision
$(51) $(55) $(83)
$(189)
--------- -------- --------- ---------
Reported Net Income
$86 $96 $117
$298
Separation and related
costs 4
4 2
10
Resolution of and
adjustment to
contingent
liabilities and assets (9) (11)
15 (4)
--------- -------- --------- ---------
Adjusted Net Income
$81 $89 $134
$304
--------- -------- --------- ---------
Reported Diluted EPS
$0.45 $0.52 $0.65
$1.62
Separation and related
costs 0.02
0.02 0.01 0.05
Resolution of and
adjustment to
contingent
liabilities and assets (0.05) (0.06) 0.09
(0.02)
--------- -------- --------- ---------
Adjusted Diluted EPS
$0.43 $0.49 $0.75
$1.65
--------- -------- --------- ---------
Diluted Shares
190 183 180
184
Note: Amounts may not foot due to rounding.
(a) Represents the costs incurred in
connection with the Company's
separation
from Cendant (now Avis Budget Group).
(b) Relates to the net benefit from
the resolution of and adjustment to
certain contingent
liabilities and assets.
(c) Relates to the tax effect of the
adjustments.
Table 7
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Nine
Three Months Ended Months
---------------------------- Ended
March 31, June 30, Sept. 30, Sept. 30,
2006 2006 2006
2006
--------- -------- --------- ---------
Reported EBITDA
$182 $166 $176
$523
Separation and related
costs (a) 3
5 68
76
Incremental stand-alone
costs (b) (13) (13)
(4) (30)
--------- -------- --------- ---------
Adjusted EBITDA
$172 $158 $240
$569
--------- -------- --------- ---------
Reported Depreciation and
Amortization
$(34) $(36) $(37)
$(107)
Incremental stand-alone
costs (b) (1)
(1) -
(2)
--------- -------- --------- ---------
Adjusted Depreciation and
Amortization
$(35) $(37) $(37)
$(109)
Reported Interest Income/(Expense),
--------- -------- --------- ---------
Net
$2 $(11) $(12)
$(20)
Incremental stand-alone
costs (b) (12) (12)
(4) (28)
--------- -------- --------- ---------
Adjusted Interest Expense, Net
$(10) $(23) $(16)
$(48)
--------- -------- --------- ---------
Reported PreTax Income
$150 $119 $127
$396
Separation and related
costs (a) 3
5 68
76
Incremental stand-alone
costs (b) (26) (26)
(8) (60)
--------- -------- --------- ---------
Adjusted PreTax Income
$127 $98 $187
$412
--------- -------- --------- ---------
Reported Tax Provision
$(57) $(44) $(35)
$(137)
Separation and related
costs (c) (2)
(2) (25) (29)
Incremental stand-alone
costs (c) 10
10 3
23
State tax rate adjustment
(c) (d) -
- (15)
(15)
--------- -------- --------- ---------
Adjusted Tax Provision
$(49) $(36) $(72)
$(158)
--------- -------- --------- ---------
Reported Net Income
$28 $75 $92
$194
Cumulative effect of SFAS
No. 152
(e)
65 -
- 65
Reported Income before Cumulative
--------- -------- --------- ---------
Effect of SFAS No. 152
93 75
92 259
Separation and related
costs
1 3
43 47
Incremental stand-alone
costs (16)
(16) (5) (37)
State tax rate adjustment
- -
(15) (15)
--------- -------- --------- ---------
Adjusted Net Income
$78 $62 $115
$254
--------- -------- --------- ---------
Reported Diluted EPS
$0.14 $0.37 $0.45
$0.97
Cumulative effect of SFAS
No. 152 0.32 -
- 0.32
Reported Income before Cumulative
--------- -------- --------- ---------
Effect of SFAS No. 152
0.46 0.37 0.45
1.29
Separation and related
costs 0.00
0.01 0.21 0.24
Incremental stand-alone
costs (0.08) (0.08)
(0.02) (0.18)
State tax rate adjustment
- -
(0.07) (0.08)
--------- -------- --------- ---------
Adjusted Diluted EPS
$0.39 $0.31 $0.56
$1.26
--------- -------- --------- ---------
Diluted Shares (f)
200 200 203
201
Note: Amounts may not foot due to rounding.
(a) Represents the costs incurred in
connection with the Company's
separation
from Cendant (now Avis Budget Group), primarily the
acceleration
of vesting of Cendant equity awards and the related
equitable
adjustments of such awards.
(b) Represents the Company's estimate
of incremental stand-alone corporate
costs, depreciation
and amortization and interest expense associated
with corporate
debt that the Company would have incurred in 2006 if it
was a separate
stand-alone company.
(c) Relates to the tax effect of the
adjustments.
(d) Relates to a $15 million benefit
relating to refinements in the
Company's
2005 state effective tax rate.
(e) Represents non-cash charges to
reflect the cumulative effect of
adopting Statement
of Financial Accounting Standards No. 152,
"Accounting
for Real Estate Time-Sharing Transactions," on January 1,
2006.
(f) On July 31, 2006, the Separation
from Cendant was completed in a
tax-free distribution
to the Company's stockholders of one share of
Wyndham common
stock for every five shares of Cendant common stock
held on July
21, 2006. As a result, on July 31, 2006, the Company had
200 million
shares of common stock outstanding. This share amount is
being (futilized
for the calculation of diluted earnings per share for
all) periods
presented prior to the date of Separation.
Table 8
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended September 30, 2007
-------------------------------------
Separation Legacy
and and
Related Other
As Adjust- Adjust-
As
Reported ments ments Adjusted
--------- -------- -------- --------
Net revenues
Vacation ownership interest
sales $467
$467
Service fees and membership
442
442
Franchise fees
155
155
Consumer financing
93
93
Other
59
59
--------- -------- -------- --------
Net revenues
1,216 -
- 1,216
Expenses
--------- -------- -------- --------
Operating
469
469
Cost of vacation ownership
interests
101
101
Marketing and reservation
229
229
General and administrative
174
(25)(b) 149
Separation and related
costs
3 (3)(a)
-
Depreciation and amortization
43
43
--------- -------- -------- --------
Total expenses
1,019 (3) (25)
991
--------- -------- -------- --------
Operating income
197 3
25 225
Other income, net
(8)
(8)
Interest expense
20
20
Interest income
(4)
(4)
--------- -------- -------- --------
Income before income taxes
189 3
25 217
Provision for income taxes
72 1 (c) 10 (c)
83
--------- -------- -------- --------
Net income
$117 $2 $15
$134
========= ======== ======== ========
Earnings per share
Basic
0.65 $0.01 $0.09
$0.75
Diluted
0.65 0.01 0.09
0.75
Weighted average shares outstanding
Basic
179 179 179
179
Diluted
180 180 180
180
Note: EPS amounts may not foot across
due to rounding.
(a) Represents the costs incurred in
connection with the Company's
separation
from Cendant.
(b) Relates to the net benefit from
the resolution of and adjustment to
certain contingent
liabilities and assets.
(c) Relates to the tax effect of the
adjustments.
Table 8
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Nine Months Ended September 30, 2007
-------------------------------------
Separation Legacy
and and
Related Other
As Adjust- Adjust-
As
Reported ments ments Adjusted
--------- -------- -------- --------
Net revenues
Vacation ownership
interest sales $1,283
$1,283
Service fees and
membership 1,232
1,232
Franchise fees
406
406
Consumer financing
261
261
Other
146
146
--------- -------- -------- --------
Net revenues
3,328 - -
3,328
--------- -------- -------- --------
Expenses
Operating
1,323
1,323
Cost of vacation
ownership
interests
296
296
Marketing and reservation
632
632
General and administrative
419
5 (b) 424
Separation and related
costs 16
(16)(a)
-
Depreciation and
amortization 122
122
--------- -------- -------- --------
Total expenses
2,808 (16) 5
2,797
--------- -------- -------- --------
Operating income
520 16 (5)
531
Other income, net
(8)
(8)
Interest expense
55
55
Interest income
(9)
(9)
--------- -------- -------- --------
Income before income taxes
482 16 (5)
493
Provision for income taxes
184 6 (c) (1)(c)
189
--------- -------- -------- --------
Net income
$298 $10 $(4)
$304
========= ======== ======== ========
Earnings per share
Basic
$1.63 $0.05 $(0.02)
$1.66
Diluted
1.62 0.05 (0.02)
1.65
Weighted average shares outstanding
Basic
183 183 183
183
Diluted
184 184 184
184
Note: EPS amounts may not foot across
due to rounding.
(a) Represents the costs incurred in
connection with the Company's
separation
from Cendant.
(b) Relates to the net benefit from
the resolution of and adjustment to
certain contingent
liabilities and assets.
(c) Relates to the tax effect of the
adjustments.
Table 8
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended September 30, 2006
-------------------------------------
Separation Stand-
and Alone
Related Company
As Adjust- Adjust-
As
Reported ments ments Adjusted
--------- -------- -------- ---------
Net revenues
Vacation ownership
interest sales $396
$396
Service fees and
membership
392
392
Franchise fees
146
146
Consumer financing
77
77
Other
36
36
--------- -------- -------- ---------
Net revenues
1,047 - -
1,047
--------- -------- -------- ---------
Expenses
Operating
382
382
Cost of vacation
ownership interests 92
92
Marketing and reservation
198
198
General and administrative
131
4 (b) 135
Separation and related
costs
68 (68)(a)
-
Depreciation and
amortization
37
37
--------- -------- -------- ---------
Total expenses
908 (68) 4
844
--------- -------- -------- ---------
Operating income
139 68 (4)
203
Interest expense
17
4 (b) 21
Interest income
(5)
(5)
--------- -------- -------- ---------
Income before income taxes
127 68 (8)
187
Provision for income taxes
35 25 (c) 12 (c)
72
--------- -------- -------- ---------
Net income
$92 $43 $(20)
$115
========= ======== ======== =========
Earnings per share
Basic
$0.46 $0.22 $(0.10) $0.58
Diluted
0.45 0.21 (0.10)
0.56
Weighted average shares outstanding
Basic
200 200 200
200
Diluted
203 203 203
203
Note: EPS amounts may not foot across
due to rounding.
(a) Represents the costs incurred in
connection with the Company's
separation
from Cendant (now Avis Budget Group), primarily the
acceleration
of vesting of Cendant equity awards and the related
equitable
adjustments of such awards.
(b) Represents the Company's estimate
of incremental stand-alone corporate
costs, depreciation
and amortization and interest expense associated
with corporate
debt that the Company would have incurred if it was a
separate stand-alone
company.
(c) Relates to the tax effect of the
adjustments and a $15 million benefit
relating to
the refinements in the Company's 2005 state effective tax
rates.
Table 8
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Nine Months Ended September 30, 2006
-----------------------------------------------
Separation Legacy Stand-
and and
Alone
Related Other Company
As Adjust- Adjust- Adjust-
As
Reported ments ments ments
Adjusted
--------- --------- --------- -------- --------
Net revenues
Vacation ownership interest
sales
$1,081
$1,081
Service fees and
membership
1,088
1,088
Franchise fees
389
389
Consumer financing
211
211
Other
103
103
--------- --------- --------- -------- --------
Net revenues
2,872 -
- -
2,872
--------- --------- --------- -------- --------
Expenses
Operating
1,083
1,083
Cost of vacation ownership
interests
239
239
Marketing and reservation
566
566
General and administrative
385
30 (b) 415
Separation and related
costs
76 (76)(a)
-
Depreciation and
amortization
107
2 (b) 109
--------- --------- --------- -------- --------
Total expenses
2,456 (76) -
32 2,412
--------- --------- --------- -------- --------
Operating income
416 76
- (32)
460
Interest expense
50
28 (b) 78
Interest income
(30)
(30)
--------- --------- --------- -------- --------
Income before income
taxes
396 76
- (60)
412
Provision for income
taxes
137 29 (c) -
(8)(c) 158
--------- --------- --------- -------- --------
Income before cumulative
effect of accounting
change
259 47
- (52)
254
Cumulative effect of
accounting change
(65)
65 (d)
-
--------- --------- --------- -------- --------
Net income
$194 $47 $65
$(52) $254
========= ========= ========= ======== ========
Earnings per share
Basic
Income before
cumulative effect of
accounting change
$1.29 $0.24 $-
$(0.26) $1.27
Cumulative effect of
accounting change
(0.32) - 0.32
- -
--------- --------- --------- -------- --------
Net income
$0.97 $0.24 $0.32 $(0.26)
$1.27
========= ========= ========= ======== ========
Diluted
Income before
cumulative effect of
accounting change
$1.29 $0.24 $-
$(0.26) $1.26
Cumulative effect of
accounting change
(0.32) - 0.32
- -
--------- --------- --------- -------- --------
Net income
$0.97 $0.24 $0.32 $(0.26)
$1.26
========= ========= ========= ======== ========
Weighted average shares
outstanding
Basic
200 200
200 200
200
Diluted
201 201
201 201
201
Note: EPS amounts may not foot across
due to rounding.
(a) Represents the costs incurred in
connection with the Company's
separation
from Cendant (now Avis Budget Group), primarily the
acceleration
of vesting of Cendant equity awards and the related
equitable
adjustments of such awards.
(b) Represents the Company's estimate
of incremental stand-alone corporate
costs, depreciation
and amortization and interest expense associated
with corporate
debt that the Company would have incurred if it was a
separate stand-alone
company.
(c) Relates to the tax effect of the
adjustments and a $15 million benefit
relating to
the refinements in the Company's 2005 state effective tax
rates.
(d) Represents non-cash charges to
reflect the cumulative effect of
adopting Statement
of Financial Accounting Standards No. 152,
"Accounting
for Real Estate Time-Sharing Transactions," on January 1,
2006.
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