The following tables summarize net revenues and EBITDA
for reportable
segments, as well as reconcile EBITDA
to net income for the three months
ended March 31, 2008 and 2007:
Three Months Ended March 31,
----------------------------------------
2008
2007
------------------- -------------------
Net Revenues EBITDA Net Revenues EBITDA(d)
------------ ------ ------------ ------
Lodging
$170 $46
$152 $45
Vacation Exchange and Rentals
341 93
314 85
Vacation Ownership
504 7 (c)
549 63
------------ ------ ------------ ------
Total Reportable Segments
1,015 146
1,015 193
Corporate and Other (a) (b)
(3) (16)
(3) (1)
------------ ------ ------------ ------
Total Company
$1,012 $130 $1,012
$192
============ ====== ============ ======
Reconciliation of EBITDA to
Net Income
---------------------------
EBITDA
$130
$192
Depreciation and amortization
44
38
Interest expense
19
18
Interest income
(3)
(3)
------
------
Income before income taxes
70
139
Provision for income taxes
28
53
------
------
Net income
$42
$86
======
======
----------
(a) Includes the elimination
of transactions between segments.
(b) Includes a net expense of
$3 million and a net benefit of $13 million
during
the three months ended March 31, 2008 and 2007, respectively,
related
to the resolution of and adjustment to certain contingent
liabilities
and assets.
(c) Includes an impairment charge
of $28 million due to the Company's
initiative
to rebrand its vacation ownership trademarks to the
Wyndham
brand.
(d) Includes separation and
related costs of $3 million and $3 million
for
Vacation Ownership and Corporate and Other, respectively, during
the
three months ended March 31, 2007.
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended
March 31,
-------------------------
2008
2007
------- -------
Net revenues
Vacation ownership
interest sales
$294
$373
Service fees
and membership
453
403
Franchise
fees
112
113
Consumer financing
99
81
Other
54
42
------- -------
Net revenues
1,012
1,012
------- -------
Expenses
Operating
441
406
Cost of vacation
ownership interests
60
91
Marketing
and reservation
209
196
General and
administrative (a)
145
121
Separation
and related costs (b)
-
6
Trademark
impairment (c)
28
-
Depreciation
and amortization
44
38
------- -------
Total expenses
927
858
------- -------
Operating income
85
154
Other income, net
(1)
-
Interest expense
19
18
Interest income
(3)
(3)
------- -------
Income before income taxes
70
139
Provision for income taxes
28
53
------- -------
Net income
$42
$86
======= =======
Earnings per share
Basic
$0.24
$0.46
Diluted
0.24
0.45
Weighted average shares outstanding
Basic
177
188
Diluted
178
190
-----------
(a) Includes a net expense of $3 million
and a net benefit of $13 million
during the
three months ended March 31, 2008 and 2007, respectively,
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 $4 million during
the three
months ended March 31, 2007.
(c) Represents an impairment charge
due to the Company's initiative to
rebrand its
vacation ownership trademarks to the Wyndham brand. Such
amount, net
of tax, was $17 million during the three months ended
March 31,
2008.
Table 3
(1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1
Q2 Q3
Q4 Full Year
---- --
-- --
-- ---------
Lodging (a)
Number of
Rooms (b)
2008 551,100 N/A
N/A N/A
N/A
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
RevPAR
2008 $32.21 N/A
N/A N/A
N/A
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
Royalty,
Marketing and
Reservation
Revenue
(in 000s)
2008 $104,162 N/A
N/A N/A
N/A
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
Vacation Exchange
and Rentals
Average Number
of Members
(in 000s)
2008 3,632
N/A N/A
N/A N/A
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
Annual Dues
and Exchange
Revenue Per
Member
2008 $150.84 N/A
N/A N/A
N/A
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
Vacation Rental
Transactions
(in 000s)
2008 387
N/A N/A
N/A N/A
2007 398
326 360
293 1,376
2006 385
310 356
293 1,344
2005 367
311 344
278 1,300
Average Net
Price Per
Vacation
Rental
2008 $412.74 N/A
N/A N/A
N/A
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
Vacation Ownership
Gross Vacation
Ownership
Interest
Sales
(in 000s)
2008 $458,000 N/A
N/A N/A
N/A
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
Tours
2008 255,000 N/A
N/A N/A
N/A
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
Volume Per
Guest (VPG)
2008 $1,668 N/A
N/A N/A
N/A
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
------------
Note: Full year amounts may not foot
across due to rounding.
(a) Quarterly drivers in the
Lodging segment include the acquisitions of
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 at
the end of the period
which are either (i) under franchise and/or
management agreements,
(ii) properties affiliated with Wyndham Hotels
and Resorts brand for
which we receive a fee for reservation and/or
other services provided
or (iii) properties managed under the CHI
Limited joint venture.
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
hotel. Royalty revenue is generally a fee charged
to each franchised or
managed 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 Table 4 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)
2008 6,550 N/A
N/A N/A
N/A
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
Marketing,
Reservation and
TripRewards
Revenues
(in 000s) (c)
2008 $62,200 N/A
N/A N/A
N/A
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
Property
Management
Reimbursable
Revenue
(in 000s) (d)
2008 $27,128 N/A
N/A N/A
N/A
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
Vacation Ownership
Deferred
Revenues
(in 000s) (e)
2008 $(81,716) N/A
N/A N/A
N/A
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)
Provision for
Loan Losses
(in 000s) (f)
2008 $82,344 N/A
N/A N/A
N/A
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
---------
Note: Full year amounts may not foot
across due to rounding.
(a) Information includes the
acquisitions of 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
franchised
and managed hotels that are to be expended for marketing
purposes
or the operation of a centralized, brand-specific
reservation
system. These fees are typically based on a percentage
of the
gross room revenues of each hotel. Marketing and reservation
fees
are also included in the above table within royalty, marketing
and
reservation revenues. TripRewards revenues represent fees we
receive
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 provision for
estimated losses on vacation ownership
contract
receivables originated during the period. Beginning January
1, 2006,
the Company recorded such provision 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
such provision, net of estimated inventory recoveries, as a
separate
expense line item on the Combined Statements of Income and
thus
2005 amounts are not comparable to 2006, 2007 and 2008 amounts.
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
March 31, Dec. 31, Sept. 30, June 30, March 31,
2008 2007 2007
2007 2007
--------- -------- --------- -------- ---------
Securitized vacation
ownership debt
Term notes
$1,278 $1,435 $1,148 $1,322
$887
Bank conduit facility
(a) 841 646
777 491
826
--------- -------- --------- -------- ---------
Securitized vacation
ownership debt (b)
2,119 2,081 1,925
1,813 1,713
Less: Current portion
of securitized vacation
ownership debt
268 237
304 242
231
--------- -------- --------- -------- ---------
Long-term securitized
vacation ownership debt
$1,851 $1,844 $1,621 $1,571
$1,482
========= ======== ========= ======== =========
Debt:
6.00% Senior unsecured
notes (due December
2016) (c)
$797 $797 $797
$797 $796
Term loan (due July 2011)
300 300
300 300
300
Revolving credit facility
(due July 2011)
(d) 95
97 133
215 48
Vacation ownership
bank borrowings
181 164
148 130
112
Vacation rentals
capital leases
165 154
153 147
147
Other
14 14
14 14
16
--------- -------- --------- -------- ---------
Total debt
1,552 1,526 1,545
1,603 1,419
Less: Current portion
of debt
193 175
159 140
123
--------- -------- --------- -------- ---------
Long-term debt
$1,359 $1,351 $1,386 $1,463
$1,296
========= ======== ========= ======== =========
--------
(a) This 364-day vacation ownership
bank conduit facility has
availability
of $1,200 million and expires in October 2008.
(b) This debt is collateralized
by $2,667 million, $2,596 million, $2,428
million,
$2,288 million and $2,198 million of underlying vacation
ownership
contract receivables and related assets at March 31, 2008,
December
31, 2007, September 30, 2007, June 30, 2007 and March 31,
2007,
respectively.
(c) The balance at March 31,
2008 represents $800 million aggregate
principal
less $3 million of unamortized discount.
(d) The Company's revolving
credit facility has a borrowing capacity of
$900
million. At March 31, 2008, the Company has $68 million of
outstanding
letters of credit and a remaining borrowing capacity of
$737
million.
Table 6
Wyndham
Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Three Months Ended March 31, 2008
--------------------------------------------------------------------------
Average
Revenue
Average Per
Number Number Average Daily Available
of of Occupancy Rate
Room
Brand
Properties Rooms Rate (ADR) (RevPAR)
--------------------------------------------------------------------------
Wyndham Hotels and Resorts
83 22,763 61.8% $116.61
$72.04
Wingate Inn
155 14,172 58.1% $91.84
$53.39
Ramada
867 106,142 50.1% $79.69
$39.91
Baymont
201 17,373 46.0% $65.66
$30.23
AmeriHost Inn
21 1,369 42.3% $63.38
$26.84
Days Inn
1,881 153,323 45.9% $61.99
$28.43
Super 8
2,091 129,793 48.5% $56.78
$27.53
Howard Johnson
477 46,300 43.8% $63.11
$27.63
Travelodge
490 36,798 45.2% $67.68
$30.58
Knights Inn
272 18,657 37.9% $40.88
$15.51
Unmanaged, Affiliated and
Managed, Non-Proprietary
Hotels (*)
14 4,367 N/A
N/A N/A
---------------
Total
6,552 551,057 47.7% $67.60
$32.21
===============
As of and For the Three Months Ended March 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
78 20,456 67.7% $109.42
$74.04
Wingate Inn
155 14,243 63.2% $87.74
$55.42
Ramada
859 104,762 50.2% $74.64
$37.46
Baymont
149 13,248 48.9% $61.86
$30.23
AmeriHost Inn
76 5,314 43.2% $63.08
$27.22
Days Inn
1,862 151,355 47.1% $59.65
$28.11
Super 8
2,047 126,113 49.2% $54.19
$26.64
Howard Johnson
471 44,703 43.3% $61.37
$26.60
Travelodge
500 37,289 46.1% $60.07
$27.69
Knights Inn
237 17,151 38.2% $39.73
$15.18
Unmanaged, Affiliated and
Managed, Non-Proprietary
Hotels (*)
16 4,677 N/A
N/A N/A
---------------
Total
6,450 539,311 48.7% $64.43
$31.35
===============
-----------
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.
Table 7
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Three Months Ended
--------------------------------
March 31, 2008 March 31, 2007
-------------- --------------
Reported EBITDA
$130
$192
Separation and related
costs (a)
-
6
Resolution of and
adjustment to
contingent
liabilities and assets (b)
3
(13)
Trademark impairment
(c)
28
-
-------------- --------------
Adjusted EBITDA
$161
$185
==========================================================================
Reported PreTax Income
$70
$139
Separation and related
costs (a)
-
6
Resolution of and
adjustment to
contingent
liabilities and assets (b)
3
(13)
Trademark impairment
(c)
28
-
-------------- --------------
Adjusted PreTax Income
$101
$132
==========================================================================
Reported Tax Provision
$28
$(53)
Separation and related
costs (d)
-
(2)
Resolution of and
adjustment to
contingent
liabilities and assets (d)
-
4
Trademark impairment
(d)
11
-
-------------- --------------
Adjusted Tax Provision
$39
$(51)
==========================================================================
Reported Net Income
$42
$86
Separation and related
costs
-
4
Resolution of and
adjustment to
contingent
liabilities and assets
3
(9)
Trademark impairment
(c)
17
-
-------------- --------------
Adjusted Net Income
$62
$81
==========================================================================
Reported Diluted EPS
$0.24
$0.45
Separation and related
costs
-
0.02
Resolution of and
adjustment to
contingent
liabilities and assets
0.01
(0.05)
Trademark impairment
(c)
0.10
-
-------------- --------------
Adjusted Diluted EPS
$0.35
$0.43
==========================================================================
Diluted Shares
178
190
----------
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 expense/(benefit)
from the resolution of and
adjustment
to certain contingent liabilities and assets.
(c) Represents an impairment charge
due to the Company's initiative to
rebrand its
vacation ownership trademarks to the Wyndham brand.
(d) Relates to the tax effect of the
adjustments.
Table 8
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended March 31, 2008
--------------------------------------
Legacy Trademark
As Adjust- Impair-
As
Reported ments ment
Adjusted
-------- ------- --------- --------
Net revenues
Vacation ownership interest
sales $294
$294
Service fees and membership
453
453
Franchise fees
112
112
Consumer financing
99
99
Other
54
54
-------- ------- --------- --------
Net revenues
1,012 -
- 1,012
-------- ------- --------- --------
Expenses
Operating
441
441
Cost of vacation ownership
interests
60
60
Marketing and reservation
209
209
General and administrative
145 (3)(a)
142
Trademark impairment
28
(28)(b) -
Depreciation and amortization
44
44
-------- ------- --------- --------
Total expenses
927 (3) (28)
896
-------- ------- --------- --------
Operating income
85 3
28 116
Other loss, net
(1)
(1)
Interest expense
19
19
Interest income
(3)
(3)
-------- ------- --------- --------
Income before income taxes
70 3
28 101
Provision for income taxes
28
11 (c) 39
-------- ------- --------- --------
Net income
$42 $3
$17 $62
======== ======= ========= ========
Earnings per share
Basic
$0.24 $0.01 $0.10
$0.35
Diluted
0.24 0.01 0.10
0.35
Weighted average shares outstanding
Basic
177 177 177
177
Diluted
178 178 178
178
----------
Note: EPS amounts may not foot across
due to rounding.
(a) Relates to the net expense from
the resolution of and adjustment to
certain contingent
liabilities and assets.
(b) Represents an impairment charge
due to the Company's initiative to
rebrand its
vacation ownership trademarks to the Wyndham brand.
(c) Relates to the tax effect of the
adjustment.
Table 8
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended March 31, 2007
------------------------------------
Separation
and
Related Legacy
As Adjust- Adjust-
As
Reported ments ments Adjusted
-------- ---------- ------- --------
Net revenues
Vacation ownership
interest sales $373
$373
Service fees and
membership
403
403
Franchise fees
113
113
Consumer financing
81
81
Other
42
42
-------- ---------- ------- --------
Net revenues
1,012 -
- 1,012
-------- ---------- ------- --------
Expenses
Operating
406
406
Cost of vacation
ownership interests 91
91
Marketing and reservation
196
196
General and administrative
121
13(b) 134
Separation and related
costs
6 (6)(a)
-
Depreciation and
amortization
38
38
-------- ---------- ------- --------
Total expenses
858 (6)
13 865
-------- ---------- ------- --------
Operating income
154 6
(13) 147
Interest expense
18
18
Interest income
(3)
(3)
-------- ---------- ------- --------
Income before income taxes
139 6
(13) 132
Provision for income taxes
53 2(c) (4)(c)
51
-------- ---------- ------- --------
Net income
$86 $4
$(9) $81
======== ========== ======= ========
Earnings per share
Basic
$0.46 $0.02 $(0.05) $0.43
Diluted
0.45 0.02 (0.05)
0.43
Weighted average shares outstanding
Basic
188 188 188
188
Diluted
190 190 190
190
----------
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. |