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  Wyndham Worldwide Corp.'s 2009 3rd Qtr Net Income
 Down 27% , RevPAR Drops 17%

Brand Operating Statistics

 
 

PARSIPPANY, N.J., Oct. 28, 2009 - Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended September 30, 2009.

HIGHLIGHTS:

  • Wyndham Worldwide generated diluted adjusted earnings per share (EPS) of $0.58, compared with Company-issued guidance of $0.53 - $0.57. Reported EPS was $0.57.
  • The Company raises full-year 2009 adjusted EBITDA guidance to $775 - $825 million, compared with prior guidance of $760 - $810 million.
  • For the nine months ended September 30, 2009, the Company generated net cash from operating activities of approximately $570 million, compared with $146 million in 2008.
  • Wyndham Worldwide recently completed two term securitization transactions totaling $350 million.
  • The Company announces the renewal of its asset-backed vacation ownership receivables conduit. The 364-day facility bears interest at variable commercial paper rates plus a spread with a capacity of $600 million.

"Wyndham Worldwide delivered solid results in the third quarter, once again demonstrating the benefits of a strong, resilient business model and excellent execution" said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "We continue to transform the Company by rebalancing our worldwide business portfolio to increase the contribution of fee-for-service businesses and drive strong cash flow."

THIRD QUARTER 2009 COMPANY OPERATING RESULTS

Third quarter revenues of $1,016 million declined by 17% from the prior-year period due to the previously announced initiative to reduce the deployment of capital in the Company's vacation ownership business; continued weakness in the global lodging industry; and unfavorable foreign exchange rate movements which negatively impacted the Company's exchange and rentals business.

Net income for the third quarter of 2009 was $104 million, or $0.57 diluted EPS, compared with third quarter 2008 net income of $142 million, or $0.80 diluted EPS.

Adjusted net income for the third quarter of 2009 was $106 million, or $0.58 diluted adjusted EPS, compared with third quarter 2008 adjusted net income of $148 million, or $0.83 diluted adjusted EPS. Third quarter 2009 includes the after-tax impact of $2 million, or $0.01 diluted EPS, of legacy items. Third quarter 2008 net income includes the after-tax impact of $6 million, or $0.03 diluted EPS, of restructuring costs and legacy items.

THIRD QUARTER 2009 BUSINESS UNIT RESULTS

Wyndham Hotel Group

Revenues were $183 million in the third quarter of 2009, a decline of 14% compared with the third quarter of 2008, primarily reflecting a decline in worldwide RevPAR.

Third quarter 2009 system-wide RevPAR decreased 17.0%, reflecting declines of 16.0% and 21.9% in domestic and international RevPAR, respectively.

Third quarter 2009 EBITDA was $58 million compared with $72 million in the third quarter of 2008, which included $4 million of restructuring costs. The reduction in EBITDA reflects the decline in worldwide RevPAR and other franchise fees, partly offset by lower marketing expenses.

As of September 30, 2009, the Company's hotel system consisted of approximately 7,040 properties and 590,900 rooms, of which 21% were international. The development pipeline included approximately 1,000 hotels and 110,800 rooms, of which 50% were new construction and 41% were international.

Wyndham Exchange and Rentals

The Company has renamed Group RCI to Wyndham Exchange and Rentals to more accurately reflect the two very profitable fee-based businesses where Wyndham Worldwide has leadership positions.

Revenues were $327 million in the third quarter of 2009, an 8% decrease compared with the third quarter of 2008, primarily resulting from the impact of unfavorable foreign currency movements. Excluding the impact of foreign currency, revenues were flat.

Excluding the impact of foreign currency annual dues and exchange revenues were flat compared with the third quarter of 2008, reflecting a 3% increase in the average number of members and a 3% decline in revenue per member. Including the impact of foreign currency, revenues were $110 million, a 4% decrease from the prior year period.

Excluding the impact of foreign currency vacation rental revenues increased $5 million, or 3%, compared with the third quarter of 2008, primarily driven by a 2% increase in rental transaction volume and a 1% increase in average price per vacation rental. Including the impact of foreign currency, revenues were $185 million, a 7% decrease from the prior year period.

Third quarter 2009 EBITDA increased 2% to $107 million, compared with $105 million in the third quarter of 2008, which included $2 million of restructuring costs. Excluding an unfavorable net effect of foreign currency of $14 million and restructuring costs, adjusted EBITDA would have increased $14 million, or 13%, from the third quarter of 2008, primarily reflecting cost savings.

Wyndham Vacation Ownership

Gross Vacation Ownership Interest (VOI) sales were $366 million for the third quarter of 2009, a 35% decline from the third quarter of 2008. This decrease was primarily driven by the previously announced initiative to reduce the capital deployed in this business, which included sales office closures and a reduction of marketing efforts that resulted in fewer tours.

Total segment revenues were $508 million in the third quarter of 2009, down 23% from the third quarter of 2008, primarily reflecting the planned reduction in tour flow which was partially offset by a 25% increase in volume per guest and a $38 million favorable impact from the percentage-of-completion (POC) method of accounting from the third quarter of 2008. Under the POC method of accounting for the sale of vacation ownership interests, the Company recognized $36 million of previously deferred revenue during the third quarter of 2009, while third quarter 2008 reported revenues were reduced by $2 million of deferred revenue.

EBITDA for the third quarter of 2009 was $104 million, down 19% from the third quarter of 2008, reflecting the net impact of the planned reduction of VOI sales volume, partially offset by an $18 million impact from the net increase in the recognition of revenue previously deferred under the POC method of accounting.

Other Items

Net interest expense in the third quarter of 2009 was $33 million, a $14 million increase from the third quarter of 2008 due to higher interest rates, primarily reflecting the impact of the long-term debt issuances in May 2009, the proceeds of which were used to reduce revolving credit facility borrowings and lower capitalized interest.

Balance Sheet Information as of September 30, 2009:

  • Cash and cash equivalents of approximately $170 million compared with $135 million from December 31, 2008
  • Vacation ownership contract receivables, net, of $3.1 billion compared with $3.3 billion at December 31, 2008
  • Vacation ownership and other inventory of $1.3 billion unchanged from December 31, 2008
  • Securitized vacation ownership debt of $1.6 billion compared with $1.8 billion at December 31, 2008
  • Other debt of $2.0 billion, unchanged from December 31, 2008; remaining borrowing capacity on the revolving credit facility was approximately $850 million compared with approximately $290 million as of December 31, 2008

A schedule of debt is included in the financial tables section of this press release.

Guidance

For the fourth quarter of 2009, the Company expects adjusted EPS of $0.35 - $0.38, based on weighted average shares of 184 million.

The Company updates full-year 2009 guidance:

  • Revenues of $3.5 - $3.9 billion
  • The Company now expects adjusted EBITDA of $775 - $825 million, compared with prior guidance of $760 - $810 million.

"For full year 2010, we expect that revenue and adjusted EBITDA will be consistent with the current guidance ranges for 2009. We believe this reflects significant strength in our business, given that 2009 results will benefit from approximately $90 million of EBITDA related to vacation ownership deferred revenue roll-in that will be absent in 2010," said Mr. Holmes. Management also expects that interest expense will be higher than 2009 levels due to financings completed in 2009 and lower capitalized interest in 2010.

The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy items and restructuring costs, if any, which may have a positive or negative impact on reported results. If economic conditions improve or deteriorate materially from current levels, these assumptions and our guidance may change materially. It is not practicable to provide a reconciliation of forecasted adjusted EBITDA to the most directly comparable GAAP measure because certain items cannot be reasonably estimated or predicted at this time. Any such items could be significant to our financial results.

Conference Call Information

Wyndham Worldwide Corporation will provide a webcast of its conference call to discuss the Company's third quarter 2009 financial results on Wednesday, October 28, 2009 at 8:30 a.m. EDT. Listeners can access the webcast live through the company's website at www.wyndhamworldwide.com/investors/. The conference call also may be accessed by dialing (800) 369-1776 and providing the pass code "Wyndham." Listeners are urged to call at least 10 minutes prior to the scheduled start time. An archive of this webcast will be available at the website for approximately 90 days beginning at 12:00 p.m. EDT on October 28, 2009. A telephone replay will be available at (888) 473-0114 beginning at 12:00 p.m. EDT on October 28, 2009, until 5:00 p.m. EST on December 13, 2009.

Presentation of Financial Information

Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.

About Wyndham Worldwide

As one of the world's largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses approximately 7,040 franchised hotels and approximately 590,900 hotel rooms worldwide. Wyndham Exchange and Rentals offers its 3.8 million members access to more than 73,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of over 150 vacation ownership resorts serving over 830,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,500 employees globally.

For more information about Wyndham Worldwide, please visit the Company's web site at www.wyndhamworldwide.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, conveying management's expectations for the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings and related financial and operating measures.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war and terrorist activity, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 7, 2009. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

                                                                       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
nine months ended September 30, 2009 and 2008:


Three Months Ended September 30,
----------------------------------------------
2009 2008
------------------- -------------------
Net Net
Revenues EBITDA Revenues EBITDA (d)
--------- -------- --------- --------
Lodging $183 $58 $213 $72
Vacation
Exchange and
Rentals 327 107 354 105
Vacation
Ownership 508 104 661 128
--------- -------- --------- --------
Total
Reportable
Segments 1,018 269 1,228 305
Corporate and
Other (a) (b) (2) (15) (2) (11)
--------- -------- --------- --------
Total
Company $1,016 $254 $1,226 $294
========= ======== ========= ========

Reconciliation
of EBITDA to
Net Income


EBITDA $254 $294
Depreciation and
amortization 46 47
Interest expense 34 21
Interest income (1) (2)
-------- --------
Income before
income taxes 175 228
Provision for
income taxes 71 86
-------- --------
Net income $104 $142
======== ========


Nine Months Ended September 30,
----------------------------------------------
2009 2008
------------------- -------------------
Net Net
Revenues EBITDA (e) Revenues EBITDA (d)
--------- -------- --------- --------
Lodging $511 $143 $583 $179
Vacation
Exchange and
Rentals 894 240 1,009 252
Vacation
Ownership 1,437 255 1,786 248 (f)
--------- -------- --------- --------
Total
Reportable
Segments 2,842 638 3,378 679
Corporate and
Other (a) (c) (5) (55) (8) (34)
--------- -------- --------- --------
Total
Company $2,837 $583 $3,370 $645
========= ======== ========= ========

Reconciliation
of EBITDA
to Net Income


EBITDA $583 $645
Depreciation and
amortization 134 137
Interest expense 79 59
Interest income (5) (8)
-------- --------
Income before
income taxes 375 457
Provision for
income taxes 155 175
-------- --------
Net income $220 $282
======== ========

(a) Includes the elimination of transactions between segments.
(b) Includes $2 million ($2 million, net of tax) and $1 million
($2 million, net of tax) of a net expense during the three months
ended September 30, 2009 and 2008, respectively, related to the
resolution of and adjustment to certain contingent liabilities and
assets.
(c) Includes $6 million ($6 million, net of tax) of a net expense and
$4 million of a net benefit ($1 million, net of tax, of a net
expense) during the nine months ended September 30, 2009 and 2008,
respectively, related to the resolution of and adjustment to certain
contingent liabilities and assets.
(d) Includes restructuring costs of $4 million and $2 million for Lodging
and Vacation Exchange and Rentals, respectively, during both the
three and nine months ended September 30, 2008. The after-tax impact
of such costs is $4 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 $28 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 Nine Months
Ended Ended
September 30, September 30,
----------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Net revenues
Service fees and membership $445 $468 $1,241 $1,344
Vacation ownership interest sales 285 446 766 1,153
Franchise fees 126 153 342 402
Consumer financing 108 111 325 314
Other 52 48 163 157
----- ----- ----- -----
Net revenues 1,016 1,226 2,837 3,370
----- ----- ----- -----

Expenses
Operating 386 439 1,153 1,284
Cost of vacation ownership interests 54 86 136 226
Consumer financing interest 35 34 102 93
Marketing and reservation 149 232 423 659
General and administrative (a) (b) 140 140 398 438
Asset impairments (c) - - - 28
Restructuring costs (d) - 6 46 6
Depreciation and amortization 46 47 134 137
--- --- ---- -----
Total expenses 810 984 2,392 2,871
--- --- ----- -----

Operating income 206 242 445 499
Other income, net (2) (5) (4) (9)
Interest expense 34 21 79 59
Interest income (1) (2) (5) (8)
--- --- --- ---

Income before income taxes 175 228 375 457
Provision for income taxes 71 86 155 175
---- ---- ---- ----

Net income $104 $142 $220 $282
==== ==== ==== ====

Earnings per share
Basic $0.58 $0.80 $1.23 $1.59
Diluted 0.57 0.80 1.21 1.58

Weighted average shares outstanding
Basic 179 178 178 177
Diluted 183 178 181 178


(a) Includes $2 million ($2 million, net of tax) and $1 million ($2
million, net of tax) of a net expense during the three months ended
September 30, 2009 and 2008, respectively, related to the resolution
of and adjustment to certain contingent liabilities and assets.
(b) Includes $6 million ($6 million, net of tax) of a net expense and $4
million of a net benefit ($1 million, net of tax, of a net expense)
during the nine months ended September 30, 2009 and 2008,
respectively, related to the resolution of and adjustment to certain
contingent liabilities and assets.
(c) 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.
(d) Relates to costs incurred as a result of various strategic
initiatives commenced by the Company during 2008. Such amounts, net
of tax, were $28 million during the nine months ended September 30,
2009 and $4 million during both the three and nine months ended
September 30, 2008.



Table 3
(1 of 3)


Wyndham Worldwide Corporation
OPERATING STATISTICS

Full
Year Q1 Q2 Q3 Q4 Year
---- -- -- -- -- -----
Lodging (a)

Number of
Rooms (b) 2009 588,500 590,200 590,900 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 $34.81 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

Vacation
Exchange and
Rentals

Average
Number of
Members
(in 000s) 2009 3,789 3,795 3,781 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 $116.76 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 387 324 367 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 $505.82 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 $366,000 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 137,000 164,000 173,000 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 $1,944 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

Full
Year Q1 Q2 Q3 Q4 Year
---- -- -- -- -- -----
Lodging(a)

Number of
Properties(b) 2009 6,990 7,020 7,040 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 $36,102 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 $117,111 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.


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 $72 N/A N/A
Marketing, Reservation and
Wyndham Rewards Revenues(a) 54 66 73 N/A N/A
Property Management
Reimbursable Revenues (b) 22 23 21 N/A N/A
Ancillary Revenues (c) 21 17 17 N/A N/A
--- --- --- ------- -------
Total Lodging 154 174 183 N/A N/A
--- --- --- ------- -------

Vacation Exchange and Rentals
Exchange Revenues 127 112 110 N/A N/A
Rental Revenues 130 137 185 N/A N/A
Ancillary Revenues (d) 30 31 32 N/A N/A
--- --- --- ------- -------
Total Vacation Exchange
and Rentals 287 280 327 N/A N/A
--- --- --- ------- -------

Vacation Ownership
Vacation Ownership
Interest Sales 239 242 285 N/A N/A
Consumer Financing 109 109 108 N/A N/A
Property Management Fees 91 94 96 N/A N/A
Ancillary Revenues (e) 23 22 19 N/A N/A
--- --- --- ------- -------
Total Vacation Ownership 462 467 508 N/A N/A
--- --- --- ------- -------
Total Reportable Segments $903 $921 $1,018 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. 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)

Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
--------- -------- --------- -------- ---------
Securitized vacation
ownership debt
Term notes $1,305 $1,290 $1,165 $1,252 $1,437
Bank conduit
facilities(a) 299 340 569 558 647
------ ------ ------ ----- ------
Securitized vacation
ownership debt (b) 1,604 1,630 1,734 1,810 2,084
Less: Current portion of
securitized vacation
ownership debt 291 288 305 294 324
------ ------ ------ ------ ------
Long-term securitized
vacation ownership debt $1,313 $1,342 $1,429 $1,516 $1,760
====== ====== ====== ====== ======

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) 21 30 517 576 305
9.875% senior
unsecured notes
(due May 2014)(e) 237 237 - - -
3.50% convertible notes
(due May 2012)(f) 309 253 - - -
Vacation ownership
bank borrowings(g) 163 154 156 159 172
Vacation rentals
capital leases 139 135 130 139 143
Other 23 22 13 13 12
----- ----- ----- ----- -----
Total debt 1,989 1,928 1,913 1,984 1,729
Less: Current
portion of debt 176 169 166 169 182
------ ------ ------ ------ ------
Long-term debt $1,813 $1,759 $1,747 $1,815 $1,547
====== ====== ====== ====== ======

(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 was repaid on October 8,
2009. At September 30, 2009, our 364-day facility has remaining
borrowing capacity of $671 million.
(b) This debt is collateralized by $2,947 million, $2,916 million, $3,005
million, $2,929 million and $2,737 million of underlying vacation
ownership contract receivables and related assets at September 30,
2009, June 30, 2009, March 31, 2009, December 31, 2008 and September
30, 2008, respectively.
(c) The balance at September 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 September 30, 2009, the Company has $30 million of
outstanding letters of credit and a remaining borrowing capacity of
$849 million.
(e) Represents senior unsecured notes issued by the Company during May
2009. The balance at September 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 $187 million of debt ($230 million
aggregate principal less $43 million of unamortized discount) and a
liability with a fair value of $122 million related to a bifurcated
conversion feature.
(g) Represents a 364-day, AUD 213 million, secured, revolving foreign
credit facility, which expires in June 2010.



Table 6
(1 of 2)

Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS

As of and For the Three Months Ended September 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 87 23,555 53.2% $108.57 $57.76

Wingate Inn 169 15,456 57.1% $83.19 $47.54

Hawthorn Suites 90 8,386 55.6% $82.65 $45.98

Ramada 895 116,320 51.8% $73.89 $38.26

Baymont 233 19,829 48.9% $64.39 $31.46

Days Inn 1,851 148,949 50.7% $65.03 $32.96

Super 8 2,125 131,921 55.8% $60.34 $33.68

Howard Johnson 474 45,233 47.6% $63.57 $30.24

Travelodge 465 34,800 50.0% $67.25 $33.61

Microtel Inns & Suites 315 22,608 53.3% $60.15 $32.04

Knights Inn 327 20,324 39.8% $44.56 $17.75

Unmanaged, Affiliated
and Managed,
Non-Proprietary
Hotels (*) 11 3,549 N/A N/A N/A
----- -------
Total 7,042 590,930 51.8% $67.24 $34.81
===== =======


As of and For the Three Months Ended September 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 80 21,365 63.4% $123.13 $78.09

Wingate Inn 158 14,427 62.9% $93.44 $58.77

Hawthorn Suites 90 8,404 63.5% $91.00 $57.78

Ramada 877 110,844 57.0% $82.35 $46.92

Baymont 213 18,194 55.7% $67.82 $37.74

Days Inn 1,878 152,557 56.9% $68.95 $39.22

Super 8 2,098 130,056 62.1% $63.69 $39.57

Howard Johnson 471 45,084 52.4% $69.09 $36.20

Travelodge 482 36,203 56.1% $73.48 $41.19

Microtel Inns & Suites 301 21,431 57.9% $63.51 $36.78

Knights Inn 294 19,568 45.4% $46.18 $20.95

Unmanaged, Affiliated
and Managed,
Non-Proprietary
Hotels (*) 28 5,260 N/A N/A N/A
----- -------
Total 6,970 583,393 57.7% $72.61 $41.93
===== =======

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 September 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 Nine Months Ended September 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 87 23,555 53.3% $116.58 $62.15

Wingate Inn 169 15,456 55.0% $84.61 $46.55

Hawthorn Suites 90 8,386 53.2% $85.69 $45.58

Ramada 895 116,320 48.1% $74.11 $35.64

Baymont 233 19,829 47.0% $63.64 $29.91

Days Inn 1,851 148,949 46.9% $63.15 $29.61

Super 8 2,125 131,921 50.4% $57.48 $28.96

Howard Johnson 474 45,233 43.3% $62.14 $26.94

Travelodge 465 34,800 45.1% $62.57 $28.20

Microtel Inns & Suites 315 22,608 50.9% $57.18 $29.08

Knights Inn 327 20,324 38.4% $43.14 $16.56

Unmanaged, Affiliated
and Managed,
Non-Proprietary
Hotels (*) 11 3,549 N/A N/A N/A
----- -------
Total 7,042 590,930 47.9% $66.08 $31.66
===== =======


As of and For the Nine Months Ended September 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 80 21,365 63.6% $123.20 $78.44

Wingate Inn 158 14,427 62.3% $92.72 $57.78

Hawthorn Suites 90 8,404 63.5% $91.00 $57.78

Ramada 877 110,844 54.2% $82.35 $44.63

Baymont 213 18,194 51.2% $66.38 $34.02

Days Inn 1,878 152,557 52.0% $65.80 $34.24

Super 8 2,098 130,056 56.0% $60.40 $33.84

Howard Johnson 471 45,084 48.5% $65.95 $32.01

Travelodge 482 36,203 50.7% $70.20 $35.60

Microtel Inns & Suites 301 21,431 57.9% $63.51 $36.78

Knights Inn 294 19,568 42.4% $43.71 $18.54

Unmanaged, Affiliated
and Managed,
Non-Proprietary
Hotels (*) 28 5,260 N/A N/A N/A
----- -------
Total 6,970 583,393 53.4% $70.68 $37.76
===== =======

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 September 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 Nine Months Ended
--------------------------------- -----------------
March 31, June 30, Sept. 30, September 30,
2009 2009 2009 2009
---------- --------- ---------- -----------------

Reported EBITDA $134 $196 $254 $583
Resolution of and
adjustment to
contingent
liabilities and
assets (a) 4 - 2 6
Restructuring
costs (b) 43 3 - 46
---- ---- ---- ----

Adjusted EBITDA $181 $199 $256 $635
---- ---- ---- ----

Reported PreTax
Income $74 $127 $175 $375
Resolution of and
adjustment to
contingent
liabilities and
assets (a) 4 - 2 6
Restructuring
costs (b) 43 3 - 46
---- ---- ---- ----

Adjusted PreTax
Income $121 $130 $177 $427
---- ---- ---- ----

Reported Tax
Provision $(29) $(56) $(71) $(155)
Resolution of and
adjustment to
contingent
liabilities and
assets (c) (2) 2 - -
Restructuring
costs (c) (16) (1) - (18)
---- ---- ---- ----

Adjusted Tax
Provision $(47) $(55) $(71) $(173)
---- ---- ---- -----

Reported Net Income $45 $71 $104 $220
Resolution of and
adjustment to
contingent
liabilities and
assets 2 2 2 6
Restructuring
costs 27 2 - 28
---- ---- ---- ----

Adjusted Net Income $74 $75 $106 $254
--- --- ---- ----

Reported Diluted EPS $0.25 $0.39 $0.57 $1.21
Resolution of and
adjustment to
contingent
liabilities and
assets 0.01 0.01 0.01 0.03
Restructuring
costs 0.15 0.01 - 0.16
---- ---- ---- ----

Adjusted Diluted EPS $0.41 $0.41 $0.58 $1.40
----- ----- ----- -----

Diluted Shares 178 182 183 181

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 Nine Months Ended
--------------------------------- -----------------
March 31, June 30, Sept. 30, September 30,
2008 2008 2008 2008
---------- --------- ---------- -----------------

Reported EBITDA $130 $221 $294 $645
Resolution of and
adjustment to
contingent
liabilities and
assets (a) 3 (7) 1 (4)
Trademark
impairment (b) 28 - - 28
Restructuring
costs (c) - - 6 6
---- ---- ---- ----

Adjusted EBITDA $161 $214 $301 $675
---- ---- ---- ----

Reported PreTax
Income $70 $160 $228 $457
Resolution of and
adjustment to
contingent
liabilities and
assets (a) 3 (7) 1 (4)
Trademark
impairment (b) 28 - - 28
Restructuring
costs (c) - - 6 6
---- ---- ---- ----

Adjusted PreTax
Income $101 $153 $235 $487
---- ---- ---- ----

Reported Tax
Provision $(28) $(62) $(86) $(175)
Resolution of and
adjustment to
contingent
liabilities and
assets (d) - 3 1 5
Trademark
impairment (d) (11) - - (11)
Restructuring
costs (d) - - (2) (2)
---- ---- ---- ----

Adjusted Tax
Provision $(39) $(59) $(87) $(183)
---- ---- ---- -----

Reported Net Income $42 $98 $142 $282
Resolution of and
adjustment to
contingent
liabilities and
assets 3 (4) 2 1
Trademark
impairment 17 - - 17
Restructuring
costs - - 4 4
---- ---- ---- ----

Adjusted Net Income $62 $94 $148 $304
--- --- ---- ----

Reported Diluted EPS $0.24 $0.55 $0.80 $1.58
Resolution of and
adjustment to
contingent
liabilities and
assets 0.01 (0.02) 0.01 0.01
Trademark
impairment 0.10 - - 0.10
Restructuring
costs - - 0.02 0.02
---- ---- ---- ----

Adjusted Diluted EPS $0.35 $0.53 $0.83 $1.71
----- ----- ----- -----

Diluted Shares 178 178 178 178

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 costs incurred as a result of various strategic
initiatives commenced by the Company during 2008.
(d) 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 September 30, 2009
-------------------------------------

As Legacy As
Reported Adjustments Adjusted
--------- ----------- --------
Net revenues
Service fees and membership $445 $445
Vacation ownership interest
sales 285 285
Franchise fees 126 126
Consumer financing 108 108
Other 52 52
----- ---- -----
Net revenues 1,016 - 1,016
----- ---- -----

Expenses
Operating 386 386
Cost of vacation ownership
interests 54 54
Consumer financing interest 35 35
Marketing and reservation 149 149
General and administrative 140 (2) (a) 138
Depreciation and amortization 46 46
----- ---- -----
Total expenses 810 (2) 808
----- ---- -----

Operating income 206 2 208
Other income, net (2) (2)
Interest expense 34 34
Interest income (1) (1)
----- ---- -----

Income before income taxes 175 2 177
Provision for income taxes 71 - (b) 71
----- ---- -----

Net income $104 $2 $106
===== ==== =====

Earnings per share
Basic $0.58 $0.01 $0.59
Diluted 0.57 0.01 0.58

Weighted average shares
outstanding
Basic 179 179 179
Diluted 183 183 183

(a) Relates to the net expense 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)

Nine Months Ended September 30, 2009
------------------------------------

As Legacy Restructuring As
Reported Adjustments Costs Adjusted
--------- ----------- -------------- --------
Net revenues
Service fees and
membership $1,241 $1,241
Vacation ownership
interest sales 766 766
Franchise fees 342 342
Consumer financing 325 325
Other 163 163
----- ---- --- -----
Net revenues 2,837 - - 2,837
----- ---- --- -----

Expenses
Operating 1,153 1,153
Cost of vacation
ownership
interests 136 136
Consumer financing
interest 102 102
Marketing and
reservation 423 423
General and
administrative 398 (6)(a) 392
Restructuring costs 46 (46)(b) -
Depreciation and
amortization 134 134
----- ---- --- -----
Total expenses 2,392 (6) (46) 2,340
----- ---- --- -----

Operating income 445 6 46 497
Other
income, net (4) (4)
Interest expense 79 79
Interest income (5) (5)
----- ---- --- -----

Income before
income taxes 375 6 46 427
Provision for
income taxes 155 -(c) 18(c) 173
----- ---- --- -----

Net income $220 $6 $28 $254
===== ==== === =====

Earnings per
share
Basic $1.23 $0.03 $0.16 $1.42
Diluted 1.21 0.03 0.16 1.40

Weighted
average shares
outstanding
Basic 178 178 178 178
Diluted 181 181 181 181

(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 September 30, 2008
-------------------------------------

As Legacy Restructuring As
Reported Adjustments Costs Adjusted
--------- ----------- -------------- --------
Net revenues
Service fees and
membership $468 $468
Vacation
ownership
interest sales 446 446
Franchise fees 153 153
Consumer
financing 111 111
Other 48 48
----- ---- ----- -----
Net revenues 1,226 - - 1,226
----- ---- ----- -----

Expenses
Operating 439 439
Cost of vacation
ownership
interests 86 86
Consumer
financing
interest 34 34
Marketing and
reservation 232 232
General and
administrative 140 (1)(a) 139
Restructuring
costs 6 (6)(b) -
Depreciation and
amortization 47 47
----- ---- ----- -----
Total expenses 984 (1) (6) 977
----- ---- ----- -----

Operating
income 242 1 6 249
Other income,
net (5) (5)
Interest
expense 21 21
Interest income (2) (2)
----- ---- ----- -----

Income before
income taxes 228 1 6 235
Provision for
income taxes 86 (1)(c) 2(c) 87
----- ---- ----- -----

Net income $142 $2 $4 $148
===== ==== ===== =====

Earnings per
share
Basic $0.80 $0.01 $0.02 $0.83
Diluted 0.80 0.01 0.02 0.83

Weighted
average shares
outstanding
Basic 178 178 178 178
Diluted 178 178 178 178

(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
(4 of 4)

Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)

Nine Months Ended September 30, 2008
------------------------------------


Restruc-
As Legacy Trademark turing As
Reported Adjustments Impairment Costs Adjusted
--------- ----------- ---------- -------- --------
Net revenues
Service fees
and membership $1,344 $1,344
Vacation
ownership
interest sales 1,153 1,153
Franchise fees 402 402
Consumer
financing 314 314
Other 157 157
----- ---- ---- ---- -----
Net revenues 3,370 - - - 3,370
----- ---- ---- ---- -----

Expenses
Operating 1,284 1,284
Cost of
vacation
ownership
interests 226 226
Consumer
financing
interest 93 93
Marketing
and
reservation 659 659
General and
adminis-
trative 438 4(a) 442
Trademark
impairment 28 (28)(b) -
Restruc-
turing
costs 6 (6)(c) -
Depreciation
and
amortization 137 137
----- ---- ---- ---- -----
Total expenses 2,871 4 (28) (6) 2,841
----- ---- ---- ---- -----
Operating income 499 (4) 28 6 529
Other income, net (9) (9)
Interest expense 59 59
Interest income (8) (8)
----- ---- ---- ---- -----
Income before
income taxes 457 (4) 28 6 487
Provision for
income taxes 175 (5)(d) 11(d) 2(d) 183
----- ---- ---- ---- -----

Net income $282 $1 $17 $4 $304
===== ==== ==== ==== =====

Earnings per share
Basic $1.59 $0.01 $0.10 $0.02 $1.71
Diluted 1.58 0.01 0.10 0.02 1.71

Weighted average
shares outstanding
Basic 177 177 177 177 177
Diluted 178 178 178 178 178

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 costs incurred as a result of various strategic
initiatives commenced by the Company during 2008.
(d) Relates to the tax effect of the adjustments.


.
Contact: 
 
 Wyndham Worldwide Corporation
.
.
 
Also See: Wyndham Worldwide Reports a 28% Drop in 2nd Qtr 2009 Net Income - $71 million down from $98 million a Year Earlier; RevPAR Falls 14.7% Systemwide / Hotel Brand Operating Statistics / July 2009

For 1st Qtr 2009 Wyndham Reports 11% Drop in Revenue But Registers a Net Income of $45 million, Up from $42 million a Year Earlier / Hotel Operating Statistics / April 2009
.

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