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
twelve months ended December 31, 2007
and 2006:
Three Months Ended December 31,
----------------------------------------
2007
2006
------------------- -------------------
Net Revenues EBITDA Net Revenues EBITDA(c)
------------ ------ ------------ ------
Lodging
$176 $49
$152 $47
Vacation Exchange and Rentals
280 56
266 59
Vacation Ownership
576 99
554 89
------------ ------ ------------ ------
Total Reportable Segments
1,032 204
972 195
Corporate and Other (a) (b)
- 28
(2) 6
------------ ------ ------------ ------
Total Company
$1,032 $232
$970 $201
============ ====== ============ ======
Reconciliation of EBITDA to
Net Income
---------------------------
EBITDA
$232
$201
Depreciation and amortization
44
41
Interest expense
17
17
Interest income
(2)
(3)
------
------
Income before income taxes
173
146
Provision for income taxes
69
54
------
------
Net income
$104
$92
======
======
Twelve Months Ended December 31,
------------------------------------------
2007
2006
------------------- -------------------
Net Revenues EBITDA(d) Net Revenues EBITDA(d)
------------ ------ ------------ ------
Lodging
$725 $223
$661 $208
Vacation Exchange and Rentals
1,218 293
1,119 265
Vacation Ownership
2,425 378
2,068 325
------------ ------ ------------ ------
Total Reportable
Segments 4,368 894
3,848 798
Corporate and Other (a) (b)
(8) (11)
(6) (73)
------------ ------ ------------ ------
Total
Company
$4,360 $883
$3,842 $725
============ ====== ============ ======
Reconciliation of EBITDA
to Net Income
------------------------
EBITDA
$883
$725
Depreciation and amortization
166
148
Interest expense
73
67
Interest income
(11)
(32)
------
------
Income before income taxes
655
542
Provision for income taxes
252
190
------
------
Income before cumulative effect of
accounting change
403
352
Cumulative effect of accounting
change, net of tax
-
(65)
------
------
Net income
$403
$287
----------
(a) Includes the elimination of transactions
between segments; excludes
incremental
stand alone company costs through July 31, 2006.
(b) Includes $41 million and $46 million
of a net benefit during the
three and
twelve months ended December 31, 2007, respectively, and
$32 million
of a net benefit for the three and twelve months ended
December 31,
2006 related to the resolution of and adjustment to
certain contingent
liabilities and assets.
(c) Includes separation and related
costs of $1 million, $15 million and
$7 million
for Lodging, Vacation Ownership and Corporate and Other,
respectively,
during the three months ended December 31, 2006.
(d) Includes separation and related
costs of $9 million and $7 million
for Vacation
Ownership and Corporate and Other, respectively, during
the twelve
months ended December 31, 2007 and $2 million, $3 million,
$18 million
and $76 million for Lodging, Vacation Exchange and
Rentals, Vacation
Ownership and Corporate and Other, respectively,
during the
twelve months ended December 31, 2006.
Table 2
Wyndham Worldwide Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2007 2006 2007
2006
------- -------- -------- --------
Net revenues
Vacation ownership
interest sales $383 $379
$1,666 $1,461
Service fees and
membership 387
348 1,619 1,437
Franchise fees
118 112
523 501
Consumer financing
96 79
358 291
Other
48 52
194 152
------- -------- -------- --------
Net revenues
1,032 970 4,360
3,842
------- -------- -------- --------
Expenses
Operating
420 391 1,742
1,474
Cost of vacation
ownership
interests
80 78
376 317
Marketing and reservation
199 168
831 734
General and administrative
(a) 100
109 519
493
Separation and related
costs (b) -
23 16
99
Depreciation and
amortization 44
41 166
148
------- -------- -------- --------
Total expenses
843 810 3,650
3,265
------- -------- -------- --------
Operating income
189 160
710 577
Other (income)/loss, net
1 -
(7) -
Interest expense
17 17
73 67
Interest income
(2) (3) (11)
(32)
------- -------- -------- --------
Income before income taxes
173 146
655 542
Provision for income taxes
69 54
252 190
------- -------- -------- --------
Income before cumulative effect of
accounting change
104 92
403 352
Cumulative effect of accounting
change, net of tax (c)
- -
- (65)
------- -------- -------- --------
Net income
$104 $92 $403
$287
======= ======== ======== ========
Earnings per share
Basic
Income before cumulative
effect
of accounting
change
$0.59 $0.48 $2.22
$1.78
Cumulative effect
of accounting
change, net
of tax
- -
- (0.33)
------- -------- -------- --------
Net income
$0.59 $0.48 $2.22
$1.45
======= ======== ======== ========
Diluted
Income before cumulative
effect
of accounting
change
$0.58 $0.48 $2.20
$1.77
Cumulative effect
of accounting
change, net
of tax
- -
- (0.33)
------- -------- -------- --------
Net income
$0.58 $0.48 $2.20
$1.44
======= ======== ======== ========
Weighted average shares outstanding
Basic
178 193
181 198
Diluted
179 194
183 199
----------
(a) Includes a net benefit of $41 million
and $46 million during the
three and
twelve months ended December 31, 2007, respectively, and
$32 million
during the three and twelve months ended December 31,
2006 related
to the resolution of and adjustment to certain
contingent
liabilities and assets.
(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 $22
million during
the three months ended December 31, 2006 and $10
million and
$69 million during the twelve months ended December 31,
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 539,300 541,700 540,900 550,600
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 529,700 530,700 529,800 537,500
532,300
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
$33.09 $36.48
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
Revenue
(in 000s)
2007 $105,426 $129,453 $146,290 $107,870 $489,041
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 3,588 3,526
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 $124.59
$135.85
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
293 1,376
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 $426.93
$422.83
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 $488,000 $1,993,000
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 240,000 304,000 332,000 268,000
1,144,000
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
$1,690 $1,606
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. Comparable RevPAR represents
RevPAR of hotels which are included
in both periods.
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 6,540
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 $65,208
$285,973
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 $28,414
$91,987
2006 $15,732 $19,935 $17,210 $16,263
$69,142
2005 $-
$- $- $17,291
$17,291
2004 $-
$- $-
$- $-
Vacation Ownership
Deferred
Revenues
(in 000s) (e)
2007 $3,906 $(4,908) $506
$(21,092) $(21,588)
2006 $12,708 $(221) $(23,491) $(10,675) $(21,679)
2005 $492 $(9,150) $(5,856) $(2,022)
$(16,536)
2004 $5,420 $(1,482) $(10,080) $(2,467) $(8,610)
Estimated
Uncollectible
Receivables
(in 000s) (f)
2007 $60,869 $75,032 $85,762 $83,644
$305,307
2006 $61,242 $55,872 $63,213 $78,680
$259,007
2005 $24,652 $27,754 $44,050 $31,644
$128,101
2004 $19,428 $21,910 $24,698 $19,535
$85,571
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.
(e) Represents the revenue that
is deferred under the percentage of
completion
method of accounting. Under the percentage of completion
method
of accounting, a portion of the total revenue from a vacation
ownership
contract sale is not recognized if the construction of the
vacation
resort has not yet been fully completed. This revenue will
be recognized
in future periods in proportion to the costs incurred
as compared
to the total expected costs for completion of
construction
of the vacation resort. Positive amounts represent the
recognition
of previously deferred revenues.
(f) Represents expected losses
on vacation ownership contract
receivables.
Beginning January 1, 2006, the Company recorded
estimated
uncollectible receivables as a contra revenue to vacation
ownership
interest sales on the Consolidated and Combined Statements
of Income,
as required by Statement of Financial Accounting Standards
No.
152, "Accounting for Real Estate Time-Sharing Transactions."
Prior
to January 1, 2006, the Company recorded estimated
uncollectible
receivables, net of estimated inventory recoveries, as
a separate
expense line item on the Consolidated and Combined
Statements
of Income and thus 2004 and 2005 amounts are not
comparable
to 2006 and 2007 amounts.
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2007 2007 2007
2007 2006
-------- --------- -------- --------- --------
Securitized vacation
ownership debt
Term notes
$1,435 $1,148 $1,322
$887 $838
Bank conduit facility (a)
646 777
491 826
625
-------- --------- -------- --------- --------
Securitized vacation
ownership debt (b)
2,081 1,925 1,813
1,713 1,463
Less: Current portion of
securitized vacation
ownership debt
237 304
242 231
178
-------- --------- -------- --------- --------
Long-term securitized
vacation ownership debt
$1,844 $1,621 $1,571 $1,482
$1,285
======== ========= ======== ========= ========
Debt:
6.00% Senior unsecured
notes (due December
2016) (c)
$797 $797 $797
$796 $796
Term loan (due July 2011)
300 300
300 300
300
Revolving credit facility
(due July 2011)
(d) 97
133 215
48 -
Bank borrowings:
Vacation ownership
164 148
130 112
103
Vacation rentals
(e) -
- -
- 73
Vacation rentals capital
leases
154 153
147 147
148
Other
14 14
14 16
17
-------- --------- -------- --------- --------
Total debt
1,526 1,545 1,603
1,419 1,437
Less: Current portion
of debt
175 159
140 123
115
-------- --------- -------- --------- --------
Long-term debt
$1,351 $1,386 $1,463 $1,296
$1,322
======== ========= ======== ========= ========
(a) This 364-day vacation ownership
bank conduit facility was renewed
through October
2008 and upsized to $1,200 million on October 30,
2007.
(b) This debt is collateralized by
$2,596 million, $2,428 million, $2,288
million, $2,198
million and $1,844 million of underlying vacation
ownership
contract receivables and related assets at December 31,
2007, September
30, 2007, June 30, 2007, March 31, 2007 and December
31, 2006,
respectively.
(c) The balance at December 31, 2007
represents $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 December 31, 2007, the Company has $53 million of
outstanding
letters of credit and a remaining borrowing capacity of
$750 million.
(e) The borrowings under this facility
were repaid on January 31, 2007.
Table 6
(1 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Three Months Ended December 31, 2007
------------------------------------------------------
Average
Revenue
Average Per
Number Number Average Daily Available
of of Occupancy Rate
Room
Brand
Properties Rooms Rate (ADR) (RevPAR)
--------------------------------------------------------------------------
Wyndham Hotels Resorts 79
20,953 60.4% $111.71 $67.44
Wingate Inn
152 13,944 56.8% $92.25
$52.42
Ramada
874 106,978 50.9% $83.24 $42.38
Baymont
193 16,592 43.2% $58.92 $25.43
AmeriHost Inn
28 1,943 45.5% $69.40 $31.60
Days Inn
1,883 153,333 46.7% $62.19 $29.05
Super 8
2,081 128,587 51.1% $57.77 $29.53
Howard Johnson
471 45,781 45.4% $60.33 $27.39
Travelodge
494 36,876 44.7% $67.25 $30.03
Knights Inn
268 18,733 37.7% $43.35 $16.33
Unmanaged, Affiliated and
Managed, Non-Proprietary
Hotels (*)
21 6,856 N/A
N/A N/A
---------------
Total
6,544 550,576 48.6% $68.03 $33.09
===============
As of and For the Three Months Ended December 31, 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
82 22,582 64.9% $108.63 $70.46
Wingate Inn
154 14,146 59.2% $85.15
$50.41
Ramada
871 105,986 49.6% $73.65 $36.53
Baymont 137 12,377 50.9% $60.71 $30.88
AmeriHost Inn 98 6,745 50.0% $61.58 $30.78
Days Inn 1,859 151,438 47.5% $59.24 $28.13
Super 8 2,054 126,175 50.2% $56.00 $28.11
Howard Johnson 467 44,432 38.9% $64.49 $25.06
Travelodge 503 37,468 45.5% $60.06 $27.33
Knights Inn 231 16,892 39.5% $39.43 $15.56
Unmanaged, Affiliated and
Managed, Non-Proprietary
Hotels (*)
17 4,993 N/A
N/A N/A
---------------
Total
6,473 543,234 48.5% $64.70 $31.41
===============
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. Eight of the managed properties are
scheduled
to be branded or cobranded as either Wyndham or Ramada
during 2008.
Table 6
(2 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Twelve Months Ended December 31, 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
79 20,953 63.9% $112.42 $71.88
Wingate Inn
152 13,944 64.2% $90.23
$57.96
Ramada
874 106,978 55.1% $78.88 $43.48
Baymont 193 16,592 52.7% $66.60 $35.09
AmeriHost Inn 28 1,943 48.5% $67.09 $32.51
Days Inn 1,883 153,333 52.5% $63.37 $33.24
Super 8 2,081 128,587 56.2% $58.35 $32.80
Howard Johnson 471 45,781 48.4% $64.34 $31.12
Travelodge 494 36,876 50.3% $66.60 $33.52
Knights Inn 268 18,733 41.1% $43.53 $17.88
Unmanaged, Affiliated and
Managed, Non-Proprietary
Hotels (*)
21 6,856 N/A
N/A N/A
--------------
Total
6,544 550,576 53.7% $67.96 $36.48
==============
As of and For the Twelve Months Ended December 31, 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
82 22,582 68.6% $110.37 $75.68
Wingate Inn
154 14,146 64.7% $83.99
$54.33
Ramada
871 105,986 53.7% $72.34 $38.85
Baymont 137 12,377 57.7% $63.35 $36.56
AmeriHost Inn 98 6,745 53.7% $62.09 $33.37
Days Inn 1,859 151,438 52.0% $60.37 $31.41
Super 8 2,054 126,175 55.2% $56.17 $31.00
Howard Johnson 467 44,432 46.3% $65.82 $30.45
Travelodge 503 37,468 50.7% $63.05 $31.95
Knights Inn 231 16,892 42.3% $40.11 $16.98
Unmanaged, Affiliated and
Managed, Non-Proprietary
Hotels (*)
17 4,993 N/A
N/A N/A
--------------
Total
6,473 543,234 53.4% $65.44 $34.95
==============
Table 7
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Three Months Ended
------------------------------------ Year
Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
2007 2007 2007
2007 2007
-------- ------- -------- ------- --------
Reported EBITDA
$192 $211 $248
$232 $883
Separation and related
costs (a)
6 7
3 -
16
Resolution of and adjustment
to contingent liabilities
and assets (b)
(13) (17) 25
(41) (46)
-------- ------- -------- ------- --------
Adjusted EBITDA
$185 $201 $276
$191 $853
-------- ------- -------- ------- --------
Reported PreTax Income
$139 $154 $189
$173 $655
Separation and related
costs (a)
6 7
3 -
16
Resolution of and
adjustment to contingent
liabilities and
assets (b) (13) (17)
25 (41) (46)
-------- ------- -------- ------- --------
Adjusted PreTax Income
$132 $144 $217
$132 $625
-------- ------- -------- ------- --------
Reported Tax Provision
$(53) $(58) $(72)
$(69) $(252)
Separation and related
costs (c)
(2) (3)
(1) -
(6)
Resolution of and
adjustment to contingent
liabilities and
assets (c) 4
6 (10)
20 20
-------- ------- -------- ------- --------
Adjusted Tax Provision
$(51) $(55) $(83)
$(49) $(238)
-------- ------- -------- ------- --------
Reported Net Income
$86 $96 $117
$104 $403
Separation and related
costs 4 4
2 -
10
Resolution of and
adjustment to contingent
liabilities and
assets (9)
(11) 15
(21) (26)
-------- ------- -------- ------- --------
Adjusted Net Income
$81 $89 $134
$83 $387
-------- ------- -------- ------- --------
Reported Diluted EPS
$0.45 $0.52 $0.65
$0.58 $2.20
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 (0.12) (0.14)
-------- ------- -------- ------- --------
Adjusted Diluted EPS
$0.43 $0.49 $0.75
$0.46 $2.12
-------- ------- -------- ------- --------
Diluted Shares
190 183
180 179
183
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)/expense
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)
Three Months Ended
Year
-------------------------------------- Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
2006 2006
2006 2006 2006
--------- -------- --------- ------- --------
Reported EBITDA
$182 $166
$176 $201 $725
Separation and related
costs (a)
3 5
68 23
99
Incremental stand-alone
costs (b)
(13) (13)
(4) -
(30)
Resolution of contingent
liabilities (c)
- -
- (32) (32)
--------- -------- --------- ------- --------
Adjusted EBITDA
$172 $158
$240 $192 $762
--------- -------- --------- ------- --------
Reported Depreciation
and
Amortization
$(34) $(36) $(37)
$(41) $(148)
Incremental stand-alone
costs (b)
(1) (1)
- -
(2)
--------- -------- --------- ------- --------
Adjusted Depreciation and
Amortization
$(35) $(37) $(37)
$(41) $(150)
--------- -------- --------- ------- --------
Reported Interest
Income/(Expense), Net
$2 $(11) $(12)
$(14) $(35)
Incremental stand-alone
costs (b)
(12) (12)
(4) -
(28)
--------- -------- --------- ------- --------
Adjusted Interest
Expense, Net
$(10) $(23) $(16)
$(14) $(63)
--------- -------- --------- ------- --------
Reported PreTax Income
$150 $119
$127 $146 $542
Separation and related
costs (a)
3 5
68 23
99
Incremental stand-alone
costs (b)
(26) (26)
(8) -
(60)
Resolution of contingent
liabilities (c)
- -
- (32) (32)
--------- -------- --------- ------- --------
Adjusted PreTax Income
$127 $98
$187 $137 $549
--------- -------- --------- ------- --------
Reported Tax Provision
$(57) $(44) $(35)
$(54) $(190)
Separation and related
costs (d)
(2) (2)
(25) (1) (30)
Incremental stand-alone
costs (d)
10 10
3 -
23
State tax rate
adjustment (d) (e)
- -
(15) -
(15)
Resolution of contingent
liabilities (d)
- -
- 2
2
--------- -------- --------- ------- --------
Adjusted Tax Provision
$(49) $(36) $(72)
$(53) $(210)
--------- -------- --------- ------- --------
Reported Net Income
$28 $75
$92 $92 $287
Cumulative effect of
SFAS No. 152 (f)
65 -
- -
65
--------- -------- --------- ------- --------
Reported Income before
Cumulative Effect of
SFAS No. 152
93 75
92 92
352
Separation and related
costs 1 3
43 22
69
Incremental stand-alone
costs
(16) (16)
(5) -
(37)
State tax rate adjustment
- -
(15) -
(15)
Resolution of contingent
liabilities
- -
- (30) (30)
--------- -------- --------- ------- --------
Adjusted Net Income
$78 $62
$115 $84 $339
--------- -------- --------- ------- --------
Reported Diluted EPS
$0.14 $0.37 $0.45
$0.48 $1.44
Cumulative effect of
SFAS No. 152
0.32 -
- - 0.33
--------- -------- --------- ------- --------
Reported Income before
Cumulative Effect of
SFAS No. 152
0.46 0.37
0.45 0.48 1.77
Separation and related
costs
0.00 0.01
0.21 0.11 0.35
Incremental stand-alone
costs
(0.08) (0.08) (0.02)
- (0.19)
State tax rate adjustment
- -
(0.07) - (0.08)
Resolution of contingent
liabilities
- -
- (0.15) (0.15)
--------- -------- --------- ------- --------
Adjusted Diluted EPS
$0.39 $0.31 $0.56
$0.44 $1.70
--------- -------- --------- ------- --------
Diluted Shares (g)
200 200
203 194 199
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 net benefit
from the resolution of certain contingent
liabilities.
(d) Relates to the tax effect
of the adjustments.
(e) Relates to a $15 million
benefit relating to changes in the Company's
2005
state effective tax rate.
(f) 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.
(g) 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 utilized 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 December 31, 2007
-------------------------------------
Legacy
and Other
As Reported Adjustments As Adjusted
----------- ----------- -----------
Net revenues
Vacation ownership
interest sales $383
$383
Service fees and
membership
387
387
Franchise fees
118
118
Consumer financing
96
96
Other
48
48
----------- ----------- -----------
Net revenues
1,032 -
1,032
----------- ----------- -----------
Expenses
Operating
420
420
Cost of vacation
ownership
interests
80
80
Marketing and reservation
199
199
General and administrative
100 41 (a)
141
Depreciation and
amortization
44
44
----------- ----------- -----------
Total expenses
843 41
884
----------- ----------- -----------
Operating income
189 (41)
148
Other loss, net
1
1
Interest expense
17
17
Interest income
(2)
(2)
----------- ----------- -----------
Income before income taxes
173 (41)
132
Provision for income taxes
69 (20)(b)
49
----------- ----------- -----------
Net income
$104 $(21)
$83
=========== =========== ===========
Earnings per share
Basic
0.59 $(0.12)
$0.47
Diluted
0.58 $(0.12)
0.46
Weighted average shares outstanding
Basic
178 178
178
Diluted
179 179
179
Note: EPS amounts may not foot across
due to rounding.
(a) Relates to the net benefit from
the resolution of and adjustment to
certain contingent
liabilities and assets.
(b) 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)
Year Ended December 31, 2007
--------------------------------------
Separation Legacy
and and
Related Other
As Adjust- Adjust-
As
Reported ments ments
Adjusted
-------- --------- -------- --------
Net revenues
Vacation ownership
interest sales $1,666
$1,666
Service fees and
membership 1,619
1,619
Franchise fees
523
523
Consumer financing
358
358
Other
194
194
-------- --------- -------- --------
Net revenues
4,360 -
- 4,360
-------- --------- -------- --------
Expenses
Operating
1,742
1,742
Cost of vacation
ownership
interests
376
376
Marketing and reservation
831
831
General and administrative
519
46 (b) 565
Separation and related
costs 16
(16)(a)
-
Depreciation and
amortization 166
166
-------- --------- -------- --------
Total expenses
3,650 (16)
46 3,680
-------- --------- -------- --------
Operating income
710 16
(46) 680
Other income, net
(7)
(7)
Interest expense
73
73
Interest income
(11)
(11)
-------- --------- -------- --------
Income before income taxes
655 16
(46) 625
Provision for income taxes
252 6 (c) (20)(c)
238
-------- --------- -------- --------
Net income
$403 $10 $(26)
$387
======== ========= ======== ========
Earnings per share
Basic
$2.22 $0.05 $(0.14)
$2.13
Diluted
2.20 0.05 (0.14)
2.12
Weighted average shares outstanding
Basic
181 181 181
181
Diluted
183 183 183
183
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 December 31, 2006
------------------------------------
Separation Legacy
and and
Related Other
As Adjust- Adjust-
As
Reported ments ments Adjusted
-------- --------- -------- --------
Net revenues
Vacation ownership
interest sales $379
$379
Service fees and
membership
348
348
Franchise fees
112
112
Consumer financing
79
79
Other
52
52
-------- --------- -------- --------
Net revenues
970 -
- 970
-------- --------- -------- --------
Expenses
Operating
391
391
Cost of vacation
ownership interests 78
78
Marketing and reservation
168
168
General and administrative
109
32 (b) 141
Separation and related
costs
23 (23)(a)
-
Depreciation and
amortization
41
41
-------- --------- -------- --------
Total expenses
810 (23) 32
819
-------- --------- -------- --------
Operating income
160 23 (32)
151
Interest expense
17
17
Interest income
(3)
(3)
-------- --------- -------- --------
Income before income taxes
146 23 (32)
137
Provision for income taxes
54 1 (c) (2)(c)
53
-------- --------- -------- --------
Net income
$92 $22 $(30)
$84
======== ========= ======== ========
Earnings per share
Basic
$0.48 $0.11 $(0.16) $0.44
Diluted
0.48 0.11 (0.15)
0.44
Weighted average shares outstanding
Basic
193 193 193
193
Diluted
194 194 194
194
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).
(b) Relates to the net benefit from
the resolution of certain contingent
liabilities.
(c) Relates to the tax effect of the
adjustments.
Table 8
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Year Ended December 31, 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
$1,461
$1,461
Service fees and membership
1,437
1,437
Franchise fees
501
501
Consumer financing
291
291
Other
152
152
--------- --------- --------- -------- --------
Net revenues
3,842 -
- - 3,842
--------- --------- --------- -------- --------
Expenses
Operating
1,474
1,474
Cost of vacation ownership
interests
317
317
Marketing and reservation
734
734
General and administrative
493
32(b) 30(c) 555
Separation and related
costs 99 (99)(a)
-
Depreciation and
amortization
148
2(c) 150
--------- --------- --------- -------- --------
Total expenses
3,265 (99)
32 32 3,230
--------- --------- --------- -------- --------
Operating income
577 99
(32) (32) 612
Interest expense
67
28(c) 95
Interest income
(32)
(32)
--------- --------- --------- -------- --------
Income before income taxes
542 99
(32) (60) 549
Provision for income taxes
190 30(d) (2)(d)
(8)(d) 210
--------- --------- --------- -------- --------
Income before cumulative effect
of accounting change
352 69
(30) (52) 339
Cumulative effect of
accounting change
(65)
65(e)
-
--------- --------- --------- -------- --------
Net income
$287 $69
$35 $(52) $339
========= ========= ========= ======== ========
Earnings per share
Basic
Income before cumulative
effect of
accounting
change
$1.78 $0.35 $(0.15) $(0.26)
$1.71
Cumulative effect
of
accounting
change (0.33)
- 0.33
- -
--------- --------- --------- -------- --------
Net income
$1.45 $0.35 $0.18
$(0.26) $1.71
========= ========= ========= ======== ========
Diluted
Income before cumulative
effect of
accounting
change
$1.77 $0.35 $(0.15) $(0.26)
$1.70
Cumulative effect
of
accounting
change (0.33)
- 0.33
- -
--------- --------- --------- -------- --------
Net income
$1.44 $0.35 $0.18
$(0.26) $1.70
========= ========= ========= ======== ========
Weighted average shares outstanding
Basic
198 198
198 198
198
Diluted
199 199
199 199
199
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) Relates to the net benefit
from the resolution of certain contingent
liabilities.
(c) 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 in 2006.
(d) Relates to the tax effect
of the adjustments and a $15 million
benefit
relating to the changes in the Company's 2005 state effective
tax
rates.
(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. |
