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 consumer financing
interest), interest income
(excluding consumer financing interest) and income
taxes, each of which
is presented on the Company's Consolidated Statements
of Income. The
Company believes that EBITDA is a useful measure
of performance for the
Company's industry segments which, when considered
with GAAP measures,
the Company believes gives a more complete understanding
of the
Company's operating performance. 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, 2009 and 2008:
Three Months Ended June 30,
---------------------------
2009
2008
----
----
Net
Net
Revenues EBITDA (d) Revenues
EBITDA
--------- -------- ---------
--------
Lodging
$174 $50
$200 $62
Vacation Exchange
and Rentals
280 56
314 54
Vacation
Ownership
467 107
621 112
--- ---
--- ---
Total
Reportable
Segments
921 213
1,135 228
Corporate and
Other (a) (b)
(1) (17)
(3) (7)
-- ---
-- --
Total
Company
$920 $196
$1,132 $221
==== ====
====== ====
Reconciliation of
EBITDA to Net Income
---------------------
EBITDA
$196
$221
Depreciation and
amortization
45
46
Interest expense
26
18
Interest income
(2)
(3)
--
--
Income before income taxes
127
160
Provision for income taxes
56
62
--
--
Net income
$71
$98
===
===
Six Months Ended June 30,
-------------------------
2009
2008
----
----
Net
Net
Revenues EBITDA (e) Revenues
EBITDA
--------- -------- ---------
--------
Lodging
$328 $85
$370 $108
Vacation Exchange
and Rentals
566 132
654 147
Vacation
Ownership
929 151
1,124 120 (f)
--- ---
----- ---
Total
Reportable
Segments
1,823 368
2,148 375
Corporate and
Other (a) (c)
(2) (39)
(4) (24)
-- ---
-- ---
Total
Company
$1,821 $329
$2,144 $351
====== ====
====== ====
Reconciliation of
EBITDA to Net Income
---------------------
EBITDA
$329
$351
Depreciation and
amortization
88
90
Interest expense
45
37
Interest income
(4)
(5)
--
--
Income before income taxes
200
229
Provision for income taxes
84
89
--
--
Net income
$116
$140
====
====
----------
(a) Includes the elimination of transactions
between segments.
(b) Includes $2 million, net of tax, of
a net expense and $7 million
($4 million, net
of tax) of a net benefit during the three months
ended June 30, 2009
and 2008, respectively, related to the
resolution of and
adjustment to certain contingent liabilities and
assets.
(c) Includes $3 million ($3 million, net
of tax) of a net expense and
$4 million ($1 million,
net of tax) of a net benefit during the
six months ended
June 30, 2009 and 2008, respectively, related to
the resolution of
and adjustment to certain contingent liabilities
and assets.
(d) Includes restructuring costs of $2 million
and $1 million for
Vacation Exchange
and Rentals and Vacation Ownership, respectively.
The after-tax impact
of such costs is $2 million.
(e) Includes restructuring costs of $3 million,
$6 million, $36 million
and $1 million for
Lodging, Vacation Exchange and Rentals, Vacation
Ownership and Corporate
and Other, respectively. The after-tax
impact of such costs
is $29 million.
(f) Includes a non-cash impairment charge
of $28 million ($17 million,
net of tax) due
to the Company's initiative to rebrand its vacation
ownership trademarks
to the Wyndham brand.
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Six Months
Ended Ended
June 30, June 30,
------------ ----------
2009 2008 2009 2008
---- ---- ---- ----
Net revenues
Service fees and membership
$397 $424 $797 $876
Vacation ownership interest sales
242 414 482
708
Franchise fees
117 136 216
249
Consumer financing
109 104 217
203
Other
55 54 109
108
-- -- ---
---
Net revenues
920 1,132 1,821 2,144
--- ----- ----- -----
Expenses
Operating
394 438 767
845
Cost of vacation ownership interests
33 80 82
140
Consumer financing interest (a)
35 27 67
60
Marketing and reservation
137 218 275
427
General and administrative (b) (c)
122 152 258
298
Asset impairments (d)
- - -
28
Restructuring costs (e)
3 - 46
-
Depreciation and amortization
45 46 88
90
-- -- --
--
Total expenses
769 961 1,583 1,888
--- --- ----- -----
Operating income
151 171 238
256
Other income, net
- (4) (3)
(5)
Interest expense
26 18 45
37
Interest income
(2) (3) (4)
(5)
-- -- --
--
Income before income taxes
127 160 200
229
Provision for income taxes
56 62 84
89
-- -- --
--
Net income
$71 $98 $116 $140
=== === ==== ====
Earnings per share
Basic
$0.40 $0.55 $0.65 $0.79
Diluted
0.39 0.55 0.64 0.79
Weighted average shares outstanding
Basic
179 177 178
177
Diluted
182 178 180
178
----------
(a) Prior to periods ending September 30,
2008, such amounts were
included as a component
of Operating Expenses.
(b) Includes $2 million, net of tax, of
a net expense and $7 million
($4 million, net
of tax) of a net benefit during the three months
ended June 30, 2009
and 2008, respectively, related to the
resolution of and
adjustment to certain contingent liabilities and
assets.
(c) Includes $3 million ($3 million, net
of tax) of a net expense and
$4 million ($1 million,
net of tax) of a net benefit during the six
months ended June
30, 2009 and 2008, respectively, related to the
resolution of and
adjustment to certain contingent liabilities and
assets.
(d) Relates to a non-cash impairment charge
($17 million, net of tax)
for Vacation Ownership
due to the Company's initiative to rebrand
its vacation ownership
trademarks to the Wyndham brand.
(e) Relates to costs incurred as a result
of various strategic
initiatives commenced
by the Company during 2008. During the three
and six months ended
June 30, 2009, such amount, net of tax, was $2
million and $29
million, respectively.
Table 3
(1 of 3)
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1 Q2
Q3 Q4
Full Year
---- -- --
-- --
---------
Lodging (a)
Number of
Rooms (b)
2009 588,500 590,200
N/A N/A
N/A
2008 551,100 551,500 583,400
592,900 N/A
2007 539,300 541,700 540,900
550,600 N/A
2006 525,500 535,900 533,700
543,200 N/A
RevPAR
2009 $27.69 $32.38
N/A N/A
N/A
2008 $32.21 $38.87 $41.93
$30.03 $35.74
2007 $31.35 $38.35 $43.10
$33.09 $36.48
2006 $30.45 $36.97 $40.82
$31.41 $34.95
Royalty,
Marketing and
Reservation
Revenues
(in 000s)
2009 $95,368 $111,030 N/A
N/A N/A
2008 $104,162 $127,238 $145,502 $105,803
$482,709
2007 $105,426 $129,453 $146,290 $107,870
$489,041
2006 $102,741 $125,409 $138,383 $104,505
$471,039
Vacation
Exchange
and Rentals
Average Number
of Members
(in 000s)
2009 3,789 3,795
N/A N/A
N/A
2008 3,632 3,682
3,673 3,693
3,670
2007 3,474 3,506
3,538 3,588
3,526
2006 3,292 3,327
3,374 3,429
3,356
Annual Dues
and Exchange
Revenue Per
Member
2009 $134.38 $117.59
N/A N/A
N/A
2008 $150.84 $128.91 $124.51
$109.56 $128.37
2007 $155.60 $132.33 $131.38
$124.59 $135.85
2006 $152.10 $130.37 $132.31
$128.13 $135.62
Vacation
Rental
Transactions
(in 000s)
2009 387
324 N/A
N/A N/A
2008 387
319 360
282 1,347
2007 398
326 360
293 1,376
2006 385
310 356
293 1,344
Average Net
Price Per
Vacation
Rental
2009 $335.54 $422.00
N/A N/A
N/A
2008 $412.74 $477.63 $553.69
$400.09 $463.10
2007 $349.73 $415.71 $506.78
$426.93 $422.83
2006 $312.51 $374.91 $442.75
$356.16 $370.93
Vacation
Ownership
Gross Vacation
Ownership
Interest Sales
(in 000s)
2009 $280,000 $327,000 N/A
N/A N/A
2008 $458,000 $532,000 $566,000 $432,000 $1,987,000
2007 $430,000 $523,000 $552,000 $488,000 $1,993,000
2006 $357,000 $434,000 $482,000 $469,000 $1,743,000
Tours
2009 137,000 164,000
N/A N/A
N/A
2008 255,000 314,000 334,000
240,000 1,143,000
2007 240,000 304,000 332,000
268,000 1,144,000
2006 208,000 273,000 312,000
254,000 1,046,000
Volume Per
Guest (VPG)
2009 $1,866 $1,854
N/A N/A
N/A
2008 $1,668 $1,583 $1,550
$1,630 $1,602
2007 $1,607 $1,596 $1,545
$1,690 $1,606
2006 $1,475 $1,426 $1,434
$1,623 $1,486
----------
Note: Full year amounts may not foot across due
to rounding.
(a) Quarterly drivers in the Lodging segment
include the acquisitions of
Microtel Inns &
Suites and Hawthorn Suites (July 2008) 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 3)
Wyndham Worldwide Corporation
ADDITIONAL DATA
Year Q1 Q2
Q3 Q4
Full Year
---- -- --
-- --
---------
Lodging (a)
Number of
Properties (b) 2009
6,990 7,020
N/A N/A
N/A
2008 6,550 6,560
6,970 7,040
N/A
2007 6,450 6,460
6,460 6,540
N/A
2006 6,300 6,440
6,420 6,470
N/A
Vacation
Ownership
Deferred
Revenues
(in 000s) (c) 2009
$66,516 $37,140 N/A
N/A N/A
2008 $(81,716) $(5,240) $(2,023) $13,870
$(75,108)
2007 $3,906 $(4,908) $506
$(21,092) $(21,588)
2006 $12,708 $(221) $(23,491) $(10,675)
$(21,679)
Provision for
Loan Losses
(in 000s) (d) 2009 $107,202
$121,641 N/A
N/A N/A
2008 $82,344 $112,669 $118,609 $136,090
$449,712
2007 $60,869 $75,032 $85,762
$83,644 $305,307
2006 $61,242 $55,872 $63,213
$78,680 $259,007
----------
Note: Full year amounts may not foot across due
to rounding.
(a) Information includes the acquisitions
of Microtel Inns & Suites and
Hawthorn Suites
(July 2008) 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) 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.
(d) Represents provision for estimated losses
on vacation ownership
contract receivables
originated during the period, which is recorded
as a contra revenue
to vacation ownership interest sales on the
Consolidated Statements
of Income.
Table 3
(3 of 3)
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 year.
Vacation Rental Transactions: Represents the 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
Revenue Detail by Reportable Segment
(In millions)
2009
----
Q1 Q2 Q3
Q4 Year
------ ------ ------ ------ --------
Lodging
Royalties and Franchise Fees
$57 $68 N/A
N/A N/A
Marketing, Reservation and
Wyndham Rewards Revenues (a)
54 66 N/A
N/A N/A
Property Management
Reimbursable Revenues (b)
22 23 N/A
N/A N/A
Ancillary Revenues (c)
21 17 N/A
N/A N/A
------ ------ ------ ------ ------
Total Lodging
154 174 N/A
N/A N/A
------ ------ ------ ------ ------
Vacation Exchange and Rentals
Exchange Revenues
127 112 N/A
N/A N/A
Rental Revenues
130 137 N/A
N/A N/A
Ancillary Revenues (d)
30 31 N/A
N/A N/A
------ ------ ------ ------ ------
Total Vacation Exchange and
Rentals
287 280 N/A
N/A N/A
------ ------ ------ ------ ------
Vacation Ownership
Vacation Ownership Interest
Sales
239 242 N/A
N/A N/A
Consumer Financing
109 109 N/A
N/A N/A
Property Management Fees
91 94 N/A
N/A N/A
Ancillary Revenues (e)
23 22 N/A
N/A N/A
------ ------ ------ ------ ------
Total Vacation Ownership
462 467 N/A
N/A N/A
------ ------ ------ ------ ------
Total Reportable Segments
$903 $921 N/A
N/A N/A
====== ====== ====== ====== ======
2008
----
Q1 Q2 Q3
Q4 Year
------ ------ ------ ------ --------
Lodging
Royalties and Franchise Fees
$64 $78 $88
$66 $297
Marketing, Reservation and
Wyndham Rewards Revenues (a)
60 75 84
61 280
Property Management
Reimbursable Revenues (b)
27 26 25
21 100
Ancillary Revenues (c)
19 21 16
22 76
-- -- --
-- --
Total Lodging
170 200 213
170 753
--- --- ---
--- ---
Vacation Exchange and Rentals
Exchange Revenues
137 119 114
101 471
Rental Revenues
160 153 199
113 624
Ancillary Revenues (d)
44 42 41
36 164
-- -- --
-- ---
Total Vacation Exchange and
Rentals
341 314 354
250 1,259
--- --- ---
--- -----
Vacation Ownership
Vacation Ownership Interest
Sales
294 414 446
309 1,463
Consumer Financing
99 104 111
112 426
Property Management Fees
85 84 89
89 346
Ancillary Revenues (e)
26 19 15
(18) 43
-- -- --
--- --
Total Vacation Ownership
504 621 661
492 2,278
--- --- ---
--- -----
Total Reportable Segments
$1,015 $1,135 $1,228 $912 $4,290
====== ====== ====== ==== ======
2007
----
Q1 Q2 Q3
Q4 Year
------ ------ ------ ------ --------
Lodging
Royalties and Franchise Fees
$63 $78 $89
$67 $296
Marketing, Reservation and
Wyndham Rewards Revenues (a)
60 73 84
64 281
Property Management
Reimbursable Revenues (b)
16 22 26
28 92
Ancillary Revenues (c)
13 13 12
17 56
-- -- --
-- --
Total Lodging
152 186 211
176 725
--- --- ---
--- ---
Vacation Exchange and Rentals
Exchange Revenues
135 116 116
112 479
Rental Revenues
139 136 182
125 582
Ancillary Revenues (d)
40 36 38
43 157
-- -- --
-- ---
Total Vacation Exchange and
Rentals
314 288 336
280 1,218
--- --- ---
--- -----
Vacation Ownership
Vacation Ownership Interest
Sales
373 443 467
383 1,666
Consumer Financing
81 88 93
96 358
Property Management Fees
74 78 79
78 310
Ancillary Revenues (e)
21 20 32
19 91
-- -- --
-- --
Total Vacation Ownership
549 629 671
576 2,425
--- --- ---
--- -----
Total Reportable Segments
$1,015 $1,103 $1,218 $1,032 $4,368
====== ====== ====== ====== ======
2006
----
Q1 Q2 Q3
Q4 Year
------ ------ ------ ------ --------
Lodging
Royalties and Franchise Fees
$59 $75 $81
$63 $278
Marketing, Reservation and
Wyndham Rewards Revenues (a)
58 70 78
60 266
Property Management
Reimbursable Revenues (b)
16 20 17
16 69
Ancillary Revenues (c)
11 11 13
13 48
-- -- --
-- --
Total Lodging
144 176 189
152 661
--- --- ---
--- ---
Vacation Exchange and Rentals
Exchange Revenues
125 108 112
110 455
Rental Revenues
120 116 158
105 498
Ancillary Revenues (d)
37 37 40
51 166
-- -- --
-- ---
Total Vacation Exchange and
Rentals
282 261 310
266 1,119
--- --- ---
--- -----
Vacation Ownership
Vacation Ownership Interest
Sales
309 377 396
379 1,461
Consumer Financing
65 70 77
79 291
Property Management Fees
58 60 66
68 253
Ancillary Revenues (e)
13 11 12
28 63
-- -- --
-- --
Total Vacation Ownership
445 518 551
554 2,068
--- --- ---
--- -----
Total Reportable Segments
$871 $955 $1,050 $972
$3,848
==== ==== ====== ====
======
----------
Note: Full year amounts may not foot across due
to rounding.
(a) 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 Table 3 (1 of 3) within Royalty, Marketing
and Reservation
Revenues. Wyndham Rewards revenues represent fees
we receive relating
to our loyalty program.
(b) 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.
(c) Primarily includes additional services
provided to franchisees.
(d) Primarily includes fees from additional
services provided to
transacting members,
fees from a credit card loyalty program and
fees generated from
programs with affiliated resorts.
(e) Primarily includes revenues associated
with bonus points/credits
that are provided
as purchase incentives on VOI sales and fees
generated from other
non-core businesses.
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
June 30, March 31, December 31, September 30, June 30,
2009 2009
2008 2008
2008
--------- ---------- ------------ ------------- --------
Securitized
vacation
ownership debt
Term notes
$1,290 $1,165
$1,252 $1,437 $1,727
Bank conduit
facilities (a)
340 569
558 647
354
--- ---
--- ---
---
Securitized
vacation
ownership
debt (b)
1,630 1,734
1,810 2,084
2,081
Less: Current
portion of
securitized
vacation
ownership debt
288 305
294 324
284
--- ---
--- ---
---
Long-term
securitized
vacation
ownership debt $1,342
$1,429 $1,516
$1,760 $1,797
====== ======
====== ====== ======
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)
30 517
576 305
145
9.875% senior
unsecured
notes (due
May 2014) (e)
237 -
-
- -
3.50% convertible
notes (due
May 2012) (f)
253 -
-
- -
Vacation
ownership bank
borrowings (g)
154 156
159 172
196
Vacation rentals
capital leases
135 130
139 143
162
Other
22 13
13 12
13
-- --
-- --
--
Total debt
1,928 1,913
1,984 1,729
1,613
Less: Current
portion of debt
169 166
169 182
207
--- ---
--- ---
---
Long-term debt $1,759
$1,747 $1,815
$1,547 $1,406
====== ======
====== ====== ======
----------
(a) Represents (i) a 364-day, non-recourse
vacation ownership bank
conduit facility
with a term through November 2009 and borrowing
capacity of $943
million and (ii) the outstanding balance of the
Company's prior
bank conduit facility that ceased operating as a
revolving facility
as of October 29, 2008 and will amortize in
accordance with
its terms, which is expected to be approximately
two years.
At June 30, 2009, our 364-day facility has remaining
borrowing capacity
of $653 million.
(b) This debt is collateralized by $2,890
million, $2,981 million,
$2,906 million,
$2,721 million and $2,723 million of underlying
vacation ownership
contract receivables and related assets at
June 30, 2009, March
31, 2009, December 31, 2008, September 30,
2008 and June 30,
2008, respectively.
(c) The balance at June 30, 2009 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, 2009, the Company has $29 million of
outstanding letters
of credit and a remaining borrowing capacity of
$841 million.
The decrease in balance from March 31, 2009 to
June 30, 2009 is
primarily due to the Company's utilization of
proceeds from the
issuance of its 9.875% senior unsecured notes and
3.50% convertible
notes during May 2009.
(e) Represents senior unsecured notes issued
by the Company during
May 2009.
The balance at June 30, 2009 represents $250 million
aggregate principal
less $13 million of unamortized discount.
(f) Represents cash convertible notes issued
by the Company during
May 2009.
Such balance includes $184 million of debt ($230 million
aggregate principal
less $46 million of unamortized discount) and a
liability with a
fair value of $69 million related to a bifurcated
conversion feature.
(g) Represents a 364-day, AUD 193 million,
secured, revolving foreign
credit facility,
which closed during June 2009 and expires in June
2010. Such
facility replaces the previous secured, revolving
foreign credit facility
which expired in June 2009. On July 7,
2009, an additional
AUD 20 million of capacity was added to this
facility, increasing
total capacity to AUD 213 million.
Table 6
(1 of 2)
Wyndham
Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Three Months Ended June 30, 2009
--------------------------------------------------
Average
Revenue
Average Per
Number Number Average Daily
Available
of of Occupancy
Rate Room
Brand
Properties Rooms Rate
(ADR) (RevPAR)
-----
---------- ------- ---------- -------- ----------
Wyndham
Hotels and
Resorts
85 22,562 55.1% $117.44
$64.66
Wingate Inn
165 15,109 57.1%
$85.57 $48.87
Hawthorn Suites
90 8,386 53.3%
$84.88 $45.22
Ramada
894 116,225 48.3% $74.04
$35.78
Baymont
234 19,850 48.3%
$64.64 $31.19
Days Inn
1,856 149,901 48.5% $64.45
$31.24
Super 8
2,116 131,282 51.6% $56.66
$29.22
Howard Johnson
475 45,679 42.6%
$62.53 $26.61
Travelodge
464 34,911 45.6%
$62.23 $28.40
Microtel Inns &
Suites
317 22,660 53.5%
$55.17 $29.54
Knights Inn
317 20,039 39.2%
$43.49 $17.03
Unmanaged,
Affiliated
and Managed,
Non-Proprietary
Hotels (*)
11 3,549 N/A
N/A N/A
----- -------
Total
7,024 590,153 48.9% $66.22
$32.38
===== =======
As of and For the Three Months Ended June 30, 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
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
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 (*)
29 5,321 N/A
N/A N/A
----- -------
Total
6,563 551,457 54.6% $71.20
$38.87
===== =======
----------
NOTE: A glossary of terms is included in Table
3 (3 of 3).
(*) 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. As of June 30, 2008, amounts
also include AmeriHost
branded properties.
Table 6
(2 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Six Months Ended June 30, 2009
------------------------------------------------
Average
Revenue
Average Per
Number Number Average Daily
Available
of of Occupancy
Rate Room
Brand
Properties Rooms Rate
(ADR) (RevPAR)
-----
---------- ------- ---------- -------- ----------
Wyndham
Hotels and
Resorts
85 22,562 53.4% $120.80
$64.47
Wingate Inn
165 15,109 53.9%
$85.39 $46.04
Hawthorn Suites
90 8,386 52.0%
$87.33 $45.37
Ramada
894 116,225 46.2% $74.23
$34.29
Baymont
234 19,850 46.0%
$63.22 $29.10
Days Inn
1,856 149,901 45.0% $62.07
$27.90
Super 8
2,116 131,282 47.6% $55.76
$26.55
Howard Johnson
475 45,679 41.2%
$61.31 $25.28
Travelodge
464 34,911 42.6%
$59.84 $25.49
Microtel Inns &
Suites
317 22,660 49.6%
$55.53 $27.54
Knights Inn
317 20,039 37.6%
$42.35 $15.94
Unmanaged,
Affiliated
and Managed,
Non-Proprietary
Hotels (*)
11 3,549 N/A
N/A N/A
----- -------
Total
7,024 590,153 45.9% $65.41
$30.04
===== =======
As of and For the Six Months Ended June 30, 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
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
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 (*)
29 5,321 N/A
N/A N/A
----- -------
Total
6,563 551,457 51.1% $69.53
$35.55
===== =======
----------
NOTE: A glossary of terms is included in Table
3 (3 of 3).
(*) 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. As of June 30, 2008, amounts
also include AmeriHost
branded properties.
Table 7
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Three Months Ended Six Months Ended
------------------ ----------------
March 31, June 30, June
30,
2009 2009
2009
---------- --------- ---------
Reported EBITDA
$134 $196
$329
Resolution of and adjustment
to contingent liabilities
and assets (a)
4 -
3
Restructuring costs (b)
43 3
46
-- -
--
Adjusted EBITDA
$181 $199
$378
---------------
---- ----
----
Reported PreTax Income
$74 $127
$200
Resolution of and adjustment
to contingent liabilities
and assets (a)
4 -
3
Restructuring costs (b)
43 3
46
-- -
--
Adjusted PreTax Income
$121 $130
$249
----------------------
---- ----
----
Reported Tax Provision
$(29) $(56)
$(84)
Resolution of and adjustment
to contingent liabilities
and assets (c)
(2) 2
-
Restructuring costs (c)
(16) (1)
(17)
--- --
---
Adjusted Tax Provision
$(47) $(55)
$(101)
----------------------
---- ----
-----
Reported Net Income
$45 $71
$116
Resolution of and adjustment
to contingent liabilities
and assets
2 2
3
Restructuring costs
27 2
29
-- -
--
Adjusted Net Income
$74 $75
$148
-------------------
--- ---
----
Reported Diluted EPS
$0.25 $0.39
$0.64
Resolution of and adjustment
to contingent liabilities
and assets
0.01 0.01
0.02
Restructuring costs
0.15 0.01
0.16
---- ----
----
Adjusted Diluted EPS
$0.41 $0.41
$0.82
--------------------
----- -----
-----
Diluted Shares
178 182
180
----------
Note: Amounts may not foot due to rounding.
(a) Relates to the net expense from the
resolution of and adjustment to
certain contingent
liabilities and assets.
(b) Relates to costs incurred as a result
of various strategic
initiatives commenced
by the Company during 2008.
(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 Six Months 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 8
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended
June 30, 2009
-------------------
Legacy
As Adjustments Restructuring
As
Reported (a)
Costs Adjusted
--------- ----------- -------------
--------
Net revenues
Service fees and
membership
$397
$397
Vacation
ownership
interest sales
242
242
Franchise fees
117
117
Consumer financing
109
109
Other
55
55
-- --
--
--
Net revenues
920 -
-
920
--- ---
---
---
Expenses
Operating
394
394
Cost of vacation
ownership interests
33
33
Consumer financing
interest
35
35
Marketing and
reservation
137
137
General and
administrative
122
122
Restructuring costs
3
(3) (b) -
Depreciation and
amortization
45
45
-- --
--
--
Total expenses
769 -
(3) 766
--- ---
---
---
Operating income
151 -
3
154
Interest expense
26
26
Interest income
(2)
(2)
--- ---
---
---
Income before
income taxes
127 -
3
130
Provision for
income taxes
56 (2) (c)
1 (c) 55
-- --
-
--
Net income
$71 $2
$2
$75
=== ==
==
===
Earnings per share
Basic
$0.40 $0.01
$0.01 $0.42
Diluted
0.39 0.01
0.01
0.41
Weighted average shares
outstanding
Basic
179 179
179
179
Diluted
182 182
182
182
----------
(a) Relates to the net expense from the
resolution of and adjustment to
certain contingent
liabilities and assets.
(b) Relates to costs incurred as a result
of various strategic
initiatives commenced
by the Company during 2008.
(c) 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, 2009
------------------------------
As Legacy
Restructuring As
Reported Adjustments Costs
Adjusted
--------- ----------- -------------
--------
Net revenues
Service fees and
membership
$797
$797
Vacation ownership
interest sales
482
482
Franchise fees
216
216
Consumer financing
217
217
Other
109
109
--- --
--
---
Net revenues
1,821 -
- 1,821
----- ---
--- -----
Expenses
Operating
767
767
Cost of vacation
ownership interests
82
82
Consumer financing
interest
67
67
Marketing and
reservation
275
275
General and
administrative
258 (3) (a)
255
Restructuring costs
46
(46) (b) -
Depreciation and
amortization
88
88
-- --
---
--
Total expenses
1,583 (3)
(46) 1,534
----- --
--- -----
Operating income
238 3
46
287
Other income, net
(3)
(3)
Interest expense
45
45
Interest income
(4)
(4)
--- ---
---
---
Income before income
taxes
200 3
46
249
Provision for income
taxes
84 - (c)
17 (c) 101
--- ---
---
---
Net income
$116 $3
$29 $148
==== ==
=== ====
Earnings per share
Basic
$0.65 $0.02
$0.16 $0.83
Diluted
0.64 0.02
0.16
0.82
Weighted average shares
outstanding
Basic
178 178
178
178
Diluted
180 180
180
180
----------
(a) Relates to the net expense from the
resolution of and adjustment to
certain contingent
liabilities and assets.
(b) Relates to costs incurred as a result
of various strategic
initiatives commenced
by the Company during 2008.
(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, 2008
--------------------------------
As Legacy
As
Reported Adjustments
Adjusted
--------- ----------- --------
Net revenues
Service fees and membership
$424
$424
Vacation ownership interest
sales
414
414
Franchise fees
136
136
Consumer financing
104
104
Other
54
54
-- --
--
Net revenues
1,132
- 1,132
----- -----
-----
Expenses
Operating
438
438
Cost of vacation ownership
interests
80
80
Consumer financing interest
27
27
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
----------
(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
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Six Months Ended June 30, 2008
------------------------------
As Legacy
Trademark As
Reported Adjustments Impairment
Adjusted
--------- ----------- ----------
--------
Net revenues
Service fees
and membership
$876
$876
Vacation
ownership
interest sales
708
708
Franchise fees
249
249
Consumer
financing
203
203
Other
108
108
--- ---
---
---
Net revenues
2,144 -
- 2,144
----- -----
----- -----
Expenses
Operating
845
845
Cost of vacation
ownership interests
140
140
Consumer financing
interest
60
60
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
----------
(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. |
