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 and income
taxes, each of which is presented on the
Company's Consolidated 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
six months ended June 30, 2008 and
2007:
Three Months Ended June 30,
2008
2007
Net
Net
Revenues EBITDA Revenues EBITDA(e)
Lodging
$200 $62 $186
$59
Vacation Exchange and Rentals
314 54 288
49
Vacation Ownership
621 112 629
100
Total
Reportable Segments
1,135 228 1,103 208
Corporate and Other (a) (b)
(3) (7) (3)
3
Total
Company
$1,132 $221 $1,100 $211
Reconciliation of EBITDA to Net
Income
EBITDA
$221
$211
Depreciation and amortization
46
41
Interest expense
18
18
Interest income
(3)
(2)
Income before income taxes
160
154
Provision for income taxes
62
58
Net income
$98
$96
Six Months Ended June 30,
2008
2007
Net
Net
Revenues EBITDA Revenues EBITDA(e)
Lodging
$370 $108 $338
$104
Vacation Exchange and Rentals
654 147
601 134
Vacation Ownership
1,124 120 (d) 1,178 162
Total
Reportable Segments
2,148 375 2,117
400
Corporate and Other (a) (c)
(4) (24) (5)
2
Total
Company
$2,144 $351 $2,112
$402
Reconciliation of EBITDA to Net
Income
EBITDA
$351
$402
Depreciation and amortization
90
79
Interest expense
37
35
Interest income
(5)
(5)
Income before income taxes
229
293
Provision for income taxes
89
111
Net income
$140
$182
(a) Includes the elimination of transactions
between segments.
(b) Includes $7 million and $17 million
of a net benefit during the three
months ended
June 30, 2008 and 2007, respectively, related to the
resolution
of and adjustment to certain contingent liabilities and
assets.
(c) Includes $4 million and $30 million
of a net benefit during the six
months ended
June 30, 2008 and 2007, respectively, related to the
resolution
of and adjustment to certain contingent liabilities and
assets.
(d) Includes an impairment charge
of $28 million due to the Company's
initiative
to rebrand its vacation ownership trademarks to the Wyndham
brand.
(e) Includes separation and related
costs of $5 million and $2 million for
Vacation Ownership
and Corporate and Other, respectively, during the
three months
ended June 30, 2007 and $8 million and $5 million for
Vacation Ownership
and Corporate and Other, respectively, during the
six months
ended June 30, 2007.
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008
2007
Net revenues
Vacation
ownership interest
sales
$414 $443 $708
$816
Service
fees and membership
424 387 876
790
Franchise
fees
136 137 249
251
Consumer
financing
104 88
203 169
Other
54 45
108 86
Net revenues
1,132 1,100 2,144
2,112
Expenses
Operating
465 447 905
853
Cost
of vacation ownership
interests
80 104 140
195
Marketing
and reservation
218 207 427
404
General
and administrative (a) 152
124 298 245
Separation
and related costs (b) -
7 -
13
Trademark
impairment (c)
- -
28 -
Depreciation
and amortization 46
41 90
79
Total expenses
961 930 1,888
1,789
Operating income
171 170 256
323
Other income, net
(4) -
(5) -
Interest expense
18 18
37 35
Interest income
(3) (2) (5)
(5)
Income before income taxes
160 154 229
293
Provision for income taxes
62 58
89 111
Net income
$98 $96 $140
$182
Earnings per share
Basic
$0.55 $0.53 $0.79
$0.98
Diluted
0.55 0.52 0.79
0.98
Weighted average shares outstanding
Basic
177 181 177
185
Diluted
178 183 178
186
(a) Includes $7 million and $17
million of a net benefit during the
three
months ended June 30, 2008 and 2007, respectively, and $4
million
and $30 million of a net benefit during the six months ended
June
30, 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
and
$8 million during the three and six months ended June 30, 2007,
respectively.
(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 six months ended
June
30, 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 551,100 551,500
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 $38.87
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 $127,238 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
3,682 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 $128.91 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
387 319 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 $477.63 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 $532,000 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 255,000 314,000
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 $1,583
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
Wyndham Rewards 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
period.
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.
General
Constant Currency: Represents comparison
eliminating the effects of
foreign exchange rate fluctuations
between periods.
Table 4
Wyndham Worldwide Corporation
ADDITIONAL DATA
Year Q1 Q2
Q3 Q4 Full
Year
Lodging (a)
Number of
Properties
(b) 2008 6,550 6,560
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
Wyndham
Rewards
Revenues
(in
000s) (c) 2008 $62,200 $76,507
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 $26,326
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) $(5,240)
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 $112,669
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.
Wyndham Rewards 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)
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2008 2008 2007
2007 2007
Securitized vacation
ownership debt
Term notes
$1,727 $1,278 $1,435 $1,148
$1,322
Bank conduit facility
(a) 354
841 646 777
491
Securitized vacation ownership
debt (b)
2,081 2,119 2,081
1,925 1,813
Less: Current portion of
securitized vacation ownership
debt
284 268 237
304 242
Long-term securitized vacation
ownership debt
$1,797 $1,851 $1,844 $1,621
$1,571
Debt:
6.00% Senior unsecured
notes
(due December 2016)
(c) $797 $797
$797 $797 $797
Term loan (due July 2011)
300 300 300
300 300
Revolving credit facility
(due July 2011)
(d) 145
95 97
133 215
Vacation ownership bank
borrowings
196 181 164
148 130
Vacation rentals capital
leases 162 165
154 153 147
Other
13 14
14 14
14
Total debt
1,613 1,552 1,526
1,545 1,603
Less: Current portion of debt
207 193 175
159 140
Long-term debt
$1,406 $1,359 $1,351 $1,386
$1,463
(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
$2,723 million, $2,667 million, $2,596
million, $2,428
million and $2,288 million of underlying vacation
ownership
contract receivables and related assets at June 30, 2008,
March 31,
2008, December 31, 2007, September 30, 2007 and June 30,
2007, respectively.
(c) The balance at June 30, 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 June 30, 2008, the Company has $67 million of
outstanding
letters of credit and a remaining borrowing capacity of
$688 million.
Table 6
(1 of 2)
Wyndham
Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Three Months Ended June 30, 2008
Average
Revenue
Number Average Average
Per
of Number Occu- Daily
Avail-
Proper- of pancy Rate
able Room
Brand
ties Rooms Rate (ADR)
(RevPAR)
Wyndham Hotels and Resorts
82 22,412 65.4% $128.99 $84.40
Wingate Inn
156 14,289 65.8% $92.79 $61.09
Ramada
865 107,272 55.4% $84.75 $46.98
Baymont
210 18,067 51.7% $65.40 $33.82
AmeriHost Inn
15 954 50.2% $73.75
$37.02
Days Inn
1,876 152,892 53.3% $65.70 $35.05
Super 8
2,095 129,738 57.3% $59.83 $34.31
Howard Johnson
470 45,256 49.4% $65.12 $32.18
Travelodge
490 36,666 50.9% $68.83 $35.03
Knights Inn
290 19,544 43.8% $43.45 $19.03
Unmanaged, Affiliated and Managed,
Non-Proprietary Hotels (*)
14 4,367 N/A
N/A N/A
Total
6,563 551,457 54.6% $71.20 $38.87
As of and For the Three Months Ended June 30, 2007
Average
Revenue
Number Average Average
Per
of Number Occu- Daily
Avail-
Proper- of pancy Rate
able Room
Brand
ties Rooms Rate (ADR)
(RevPAR)
Wyndham Hotels and Resorts
75 19,945 62.7% $118.17 $74.06
Wingate Inn
154 14,172 69.9% $91.30 $63.84
Ramada
859 105,299 57.8% $78.11 $45.12
Baymont
169 14,986 55.4% $69.77 $38.63
AmeriHost Inn
54 3,673 49.7% $67.16 $33.35
Days Inn
1,862 150,984 56.3% $62.63 $35.24
Super 8
2,054 126,450 59.1% $58.17 $34.39
Howard Johnson
468 44,667 50.7% $65.05 $32.99
Travelodge
496 37,284 51.4% $66.25 $34.04
Knights Inn
252 18,019 43.3% $43.75 $18.93
Unmanaged, Affiliated and Managed,
Non-Proprietary Hotels (*)
19 6,197 N/A
N/A N/A
Total
6,462 541,676 56.5% $67.86 $38.35
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 6
(2 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Six Months Ended June 30, 2008
Average
Revenue
Number Average Average
Per
of Number Occu- Daily
Avail-
Proper- of pancy Rate
able Room
Brand
ties Rooms Rate (ADR)
(RevPAR)
Wyndham Hotels and Resorts
82 22,412 63.7% $123.38 $78.62
Wingate Inn
156 14,289 62.0% $92.35 $57.28
Ramada
865 107,272 52.8% $82.35 $43.46
Baymont
210 18,067 48.9% $65.52 $32.06
AmeriHost Inn
15 954 45.5% $67.98
$30.93
Days Inn
1,876 152,892 49.6% $63.98 $31.73
Super 8
2,095 129,738 52.9% $58.43 $30.93
Howard Johnson
470 45,256 46.6% $64.18 $29.91
Travelodge
490 36,666 48.0% $68.29 $32.81
Knights Inn
290 19,544 40.9% $42.27 $17.28
Unmanaged, Affiliated and Managed,
Non-Proprietary Hotels (*)
14 4,367 N/A
N/A N/A
Total
6,563 551,457 51.1% $69.53 $35.55
As of and For the Six Months Ended June 30, 2007
Average
Revenue
Number Average Average
Per
of Number Occu- Daily
Avail-
Proper- of pancy Rate
able Room
Brand
ties Rooms Rate (ADR)
(RevPAR)
Wyndham Hotels and Resorts
75 19,945 65.1% $113.69 $74.05
Wingate Inn
154 14,172 66.6% $89.62 $59.64
Ramada
859 105,299 54.0% $76.51 $41.32
Baymont
169 14,986 52.3% $66.30 $34.68
AmeriHost Inn
54 3,673 46.0% $64.99 $29.87
Days Inn
1,862 150,984 51.7% $61.28 $31.70
Super 8
2,054 126,450 54.2% $56.37 $30.53
Howard Johnson
468 44,667 47.1% $63.38 $29.84
Travelodge
496 37,284 48.7% $63.33 $30.86
Knights Inn
252 18,019 40.8% $41.88 $17.07
Unmanaged, Affiliated and Managed,
Non-Proprietary Hotels (*)
19 6,197 N/A
N/A N/A
Total
6,462 541,676 52.6% $66.29 $34.87
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
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Six
Months
Three Months Ended Ended
March 31, June 30, June 30,
2008 2008
2008
Reported EBITDA
$130 $221
$351
Resolution of and
adjustment to
contingent
liabilities and assets (a) 3
(7) (4)
Trademark impairment
(b)
28 -
28
Adjusted EBITDA
$161 $214
$375
Reported PreTax Income
$70 $160
$229
Resolution of and
adjustment to
contingent
liabilities and assets (a) 3
(7) (4)
Trademark impairment
(b)
28 -
28
Adjusted PreTax Income
$101 $153
$253
Reported Tax Provision
$(28) $(62)
$(89)
Resolution of and
adjustment to
contingent
liabilities and assets (c) -
3 3
Trademark impairment
(c)
(11) -
(11)
Adjusted Tax Provision
$(39) $(59)
$(97)
Reported Net Income
$42 $98
$140
Resolution of and
adjustment to
contingent
liabilities and assets
3 (4)
(1)
Trademark impairment
17 -
17
Adjusted Net Income
$62 $94
$156
Reported Diluted EPS
$0.24 $0.55
$0.79
Resolution of and
adjustment to
contingent
liabilities and assets 0.01
(0.02) (0.01)
Trademark impairment
0.10 -
0.10
Adjusted Diluted EPS
$0.35 $0.53
$0.88
Diluted Shares
178 178
178
Note: Amounts may not foot due to rounding.
(a) Relates to the net (benefit)/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
adjustments.
Table 7
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Six
Months
Three Months Ended Ended
March 31, June 30, June 30,
2007 2007
2007
Reported EBITDA
$192 $211
$402
Separation and related
costs (a)
6 7
13
Resolution of and
adjustment to
contingent
liabilities and assets (b) (13)
(17) (30)
Adjusted EBITDA
$185 $201
$385
Reported PreTax Income
$139 $154
$293
Separation and related
costs (a)
6 7
13
Resolution of and
adjustment to
contingent
liabilities and assets (b) (13)
(17) (30)
Adjusted PreTax Income
$132 $144
$276
Reported Tax Provision
$(53) $(58)
$(111)
Separation and related
costs (c) (2)
(3) (5)
Resolution of and
adjustment to
contingent
liabilities and assets (c) 4
6 10
Adjusted Tax Provision
$(51) $(55)
$(106)
Reported Net Income
$86 $96
$182
Separation and related
costs
4 4
8
Resolution of and
adjustment to
contingent
liabilities and assets
(9) (11)
(20)
Adjusted Net Income
$81 $89
$170
Reported Diluted EPS
$0.45 $0.52
$0.98
Separation and related
costs
0.02 0.02
0.04
Resolution of and
adjustment to
contingent
liabilities and assets (0.05)
(0.06) (0.10)
Adjusted Diluted EPS
$0.43 $0.49
$0.91
Diluted Shares
190 183
186
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 8
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended June 30, 2008
As Legacy
As
Reported Adjustments Adjusted
Net revenues
Vacation ownership interest
sales $414
$414
Service fees and membership
424
424
Franchise fees
136
136
Consumer financing
104
104
Other
54
54
Net revenues
1,132 -
1,132
Expenses
Operating
465
465
Cost of vacation ownership
interests
80
80
Marketing and reservation
218
218
General and administrative
152 7
(a) 159
Depreciation and amortization
46
46
Total expenses
961 7
968
Operating income
171 (7)
164
Other income, net
(4)
(4)
Interest expense
18
18
Interest income
(3)
(3)
Income before income taxes
160 (7)
153
Provision for income taxes
62 (3) (b)
59
Net income
$98 $(4)
$94
Earnings per share
Basic
$0.55 $(0.02)
$0.53
Diluted
0.55 (0.02)
0.53
Weighted average shares outstanding
Basic
177 177
177
Diluted
178 178
178
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
adjustment.
Table 8
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Six Months Ended June 30, 2008
Trade-
Legacy mark
As Adjust- Impair- As
Reported ments ment Adjusted
Net revenues
Vacation ownership
interest sales $708
$708
Service fees and
membership
876
876
Franchise fees
249
249
Consumer financing
203
203
Other
108
108
Net revenues
2,144 -
- 2,144
Expenses
Operating
905
905
Cost of vacation
ownership interests 140
140
Marketing and reservation
427
427
General and administrative
298 4 (a)
302
Trademark impairment
28
(28) (b) -
Depreciation and
amortization
90
90
Total expenses
1,888 4
(28) 1,864
Operating income
256 (4)
28 280
Other income, net
(5)
(5)
Interest expense
37
37
Interest income
(5)
(5)
Income before income taxes
229 (4)
28 253
Provision for income taxes
89 (3) (c) 11 (c)
97
Net income
$140 $(1) $17
$156
Earnings per share
Basic
$0.79 $(0.01) $0.10 $0.88
Diluted
0.79 (0.01) 0.10
0.88
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 benefit 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
adjustments.
Table 8
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended June 30, 2007
Separa-
tion
and
Related Legacy
As Adjust- Adjust-
As
Reported ments ments Adjusted
Net revenues
Vacation ownership
interest sales $443
$443
Service fees and
membership
387
387
Franchise fees
137
137
Consumer financing
88
88
Other
45
45
Net revenues
1,100 -
- 1,100
Expenses
Operating
447
447
Cost of vacation
ownership interests 104
104
Marketing and reservation
207
207
General and administrative
124
17 (b) 141
Separation and related
costs
7 (7)(a)
-
Depreciation and
amortization
41
41
Total expenses
930 (7)
17 940
Operating income
170 7
(17) 160
Interest expense
18
18
Interest income
(2)
(2)
Income before income taxes
154 7
(17) 144
Provision for income taxes
58 3 (c) (6)(c)
55
Net income
$96 $4 $(11)
$89
Earnings per share
Basic
$0.53 $0.02 $(0.06) $0.49
Diluted
0.52 0.02 (0.06)
0.49
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 (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)
Six Months Ended June 30, 2007
Separa-
tion
and
Related Legacy
As Adjust- Adjust-
As
Reported ments ments Adjusted
Net revenues
Vacation ownership
interest sales $816
$816
Service fees and
membership
790
790
Franchise fees
251
251
Consumer financing
169
169
Other
86
86
Net revenues
2,112 -
- 2,112
Expenses
Operating
853
853
Cost of vacation
ownership interests 195
195
Marketing and reservation
404
404
General and administrative
245
30 (b) 275
Separation and related
costs
13 (13)(a)
-
Depreciation and
amortization
79
79
Total expenses
1,789 (13)
30 1,806
Operating income
323 13
(30) 306
Interest expense
35
35
Interest income
(5)
(5)
Income before income taxes
293 13
(30) 276
Provision for income taxes
111 5 (c) (10)(c)
106
Net income
$182 $8 $(20)
$170
Earnings per share
Basic
$0.98 $0.04 $(0.11) $0.92
Diluted
0.98 0.04 (0.10)
0.91
Weighted average shares outstanding
Basic
185 185 185
185
Diluted
186 186 186
186
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
and assets.
(c) Relates to the tax effect of the
adjustments. |
