PARSIPPANY, N.J., April 28, 2010 - Wyndham Worldwide Corporation(WYN 26.83, +0.61, +2.33%) today announced results for
the three months ended March 31, 2010.
FIRST QUARTER HIGHLIGHTS:
Adjusted first quarter 2010 diluted earnings per share (EPS) was $0.34, compared with Company-issued guidance of $0.27 - $0.32.
Reported first quarter 2010 diluted EPS was $0.27, compared with $0.25 in the first quarter of 2009.
Free cash flow, which the Company defines as net cash from operations less capital expenditures, equity investments and development advances, increased 7% to $166 million in the first quarter of 2010, compared with $155 million during the same period in 2009.
For the quarter, the Company repurchased approximately 757,000 shares of its common stock at an average price of $24.20. The repurchase program was reactivated on February 19, 2010.
As previously announced, the Company tripled its quarterly dividend, paying its first dividend at the $0.12 per share level on March 15, 2010.
"Each of our three business units met or exceeded expectations in the first quarter, delivering terrific results while continuing to generate strong free cash flow. We are seeing great momentum at Wyndham Hotels and Resorts, with our flagship brand gaining significant market presence this year. Wyndham Exchange & Rentals continues to deliver stable, fee-for-service results from two fantastic business models, and Wyndham Vacation Ownership is performing better than ever, reflecting transformational changes implemented over the past 18 months," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "We are sharply focused to execute on our growth opportunities, not only as the economy recovers, but well into the future."
FIRST QUARTER 2010 OPERATING RESULTS
First quarter revenues of $886 million declined 2% from the prior-year period, due to the fact that first quarter 2009 revenues included a $67 million benefit from the recognition of revenues previously deferred under the percentage-of-completion (POC) accounting method associated with the Company's Vacation Ownership business. Excluding the effects of the POC method of accounting and favorable foreign currency of $12 million, adjusted revenue grew by 5%. The Company has decided to alter its business approach so that POC deferred revenue is eliminated going forward.
Reported net income for the first quarter of 2010 grew 11% to $50 million, or $0.27 per diluted share, compared with net income of $45 million, or $0.25 per diluted share, for the first quarter of 2009.
Adjusted net income for the first quarter of 2010 was $64 million, or $0.34 per diluted share, compared with $74 million, or $0.41 per diluted share, in the first quarter of 2009. The 2010 results reflect the absence of deferred revenues from the POC method of accounting included in 2009 and higher interest expense.
Excluded from the first quarter of 2010 adjusted net income are after-tax costs of $10 million associated with the early extinguishment of debt, $3 million of expenses related to the acquisition of Hoseasons Holdings Ltd. and $1 million of legacy expenses. Excluded from the first quarter of 2009 adjusted net income are after-tax costs of $27 million related to restructuring and $2 million of legacy expenses.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $144 million in the first quarter of 2010, a decline of 6% compared with the first quarter of 2009, primarily reflecting a decline in RevPAR of 6.8% or 8.7% in constant currency.
First quarter 2010 EBITDA was $33 million compared with $38 million of adjusted EBITDA in the first quarter of 2009, which excluded $3 million of restructuring costs. The decrease reflects the decline in RevPAR, which was partially offset by expense reductions.
As of March 31, 2010, the Company's hotel system consisted of approximately 7,090 properties and 593,300 rooms, of which 22% were international. The development pipeline included approximately 910 hotels and 106,500 rooms, of which 53% were new construction and 45% were international.
Vacation Exchange and Rentals (Wyndham Exchange & Rentals)
Revenues were $300 million in the first quarter of 2010, a 5% increase compared with the first quarter of 2009. In constant currency, revenues were flat.
Exchange revenues were $189 million, a 2% increase compared with the first quarter of 2009. In constant currency, exchange revenues were flat compared with the first quarter of 2009, reflecting relatively flat performance in exchange revenue per member and average number of members.
Vacation rental revenues were $105 million, a 9% increase compared with the first quarter of 2009. In constant currency, vacation rental revenues increased 2% compared with the first quarter of 2009, reflecting the acquisition of UK rental brand Hoseasons, which closed in March.
First quarter 2010 Exchange and Rentals adjusted EBITDA was $84 million, which excluded $4 million of costs related to the Hoseasons acquisition, compared with $80 million in the first quarter of 2009, which excluded $4 million of restructuring costs. Excluding a favorable net effect of foreign currency of $2 million, first quarter 2010 adjusted EBITDA increased 3% compared with the first quarter of 2009.
Vacation Ownership (Wyndham Vacation Ownership)
Gross Vacation Ownership Interest (VOI) sales were $308 million in the first quarter of 2010, up 10% from the first quarter of 2009, reflecting an increase of 25% in volume per guest, partially offset by a 10% decrease in tour flow consistent with the Company's planned restructuring of the business.
Total segment revenues were $444 million in the first quarter of 2010 compared with $462 million in the first quarter of 2009, which included the recognition of $67 million of previously deferred POC revenues. This unfavorable impact was partially offset by the increase in gross VOI sales and a reduction in the provision for loan losses of $21 million, primarily related to improved credit metrics of the portfolio.
EBITDA for the first quarter of 2010 was $82 million, compared with adjusted EBITDA of $79 million in the first quarter of 2009, which excluded $35 million of restructuring costs. Excluding an estimated $31 million impact from the POC method of accounting in the first quarter of 2009, first quarter 2010 adjusted EBITDA increased 71%, reflecting the increase in gross VOI sales and the lower provision for loan losses.
Other Items
The Company repurchased approximately 757,000 shares of stock during the first quarter of 2010 at an average price of $24.20 and an additional 474,000 shares at an average price of $26.53 through April 27, 2010.
Interest expense in the first quarter of 2010 was $50 million, an increase of $31 million from the first quarter of 2009, reflecting a $16 million charge primarily related to the early extinguishment of the Company's term loan facility in March 2010 and higher interest expense related to long-term debt issuances in May 2009 and February 2010.
On March 29, 2010, the Company closed on a new $950 million revolving credit facility, which matures October 1, 2013.
Balance Sheet Information as of March 31, 2010:
Cash and cash equivalents of approximately $165 million, compared with $155 million at December 31, 2009
Vacation ownership contract receivables, net, of $3.0 billion, compared with $3.1 billion at December 31, 2009
Vacation ownership and other inventory of approximately $1.3 billion, unchanged from December 31, 2009
Securitized vacation ownership debt of $1.5 billion, unchanged from December 31, 2009
Other debt of $2.1 billion, compared with $2.0 billion at December 31, 2009, reflecting an increase in fair value of the conversion feature related to the Company's convertible notes. The remaining borrowing capacity on the revolving credit facility was $721 million, compared with $869 million as of December 31, 2009.
A schedule of debt is included in the financial tables section of this press release.
Outlook
The Company increased full-year 2010 guidance:
Revenues increased to $3.6 - $3.9 billion from $3.5 - $3.9 billion
Adjusted EBITDA increased to $805 - $840 million from $775 - $825 million
Adjusted diluted EPS increased to $1.56 - $1.71 from $1.48 - $1.69
For the second quarter of 2010, the Company expects adjusted diluted EPS of $0.38 - $0.42 based on weighted average shares of 189 million.
The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy items, restructuring costs, debt extinguishment and acquisition costs, if any, which may have a positive or negative impact on reported results. If economic conditions change materially from current levels, these assumptions and our guidance may change materially.
Conference Call Information
Wyndham Worldwide Corporation will hold a conference call with investors to discuss this news on Wednesday, April 28, 2010 at 8:30 a.m. EDT. Listeners may access the webcast live through the Company's website at www.wyndhamworldwide.com/investors. An archive of this webcast will be available at the website for approximately 90 days beginning at noon EDT on April 28, 2010. The conference call may also be accessed by dialing (800) -369-2052 and providing the passcode "WYNDHAM." Listeners are urged to call at least 10 minutes prior to the scheduled start time. A telephone replay will be available for approximately 90 days beginning at noon EDT on April 28, 2010, at (888) -566-0509.
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 Corporation
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 7,090 franchised hotels and approximately 593,300 hotel rooms worldwide. Wyndham Exchange & Rentals offers leisure travelers, including its 3.8 million members, access to over 65,000 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 155 vacation ownership resorts serving over 820,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,000 employees globally.
For more information about Wyndham Worldwide, please visit the Company's website atwww.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 as to 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 Annual Report on Form 10-K, filed with the SEC on February 19, 2010. 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 Operations. 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 its 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 months
ended March 31, 2010 and 2009:
Three Months Ended March 31,
----------------------------
2010 2009
Net Revenues EBITDA Net Revenues EBITDA(d)
------------ ------ ------------ ------
Lodging $144 $33 $154 $35
Vacation Exchange
and Rentals 300 80 (c) 287 76
Vacation Ownership 444 82 462 44 (e)
--- --- --- ---
Total Reportable
Segments 888 195 903 155
Corporate and Other
(a) (b) (2) (20) (2) (21)
Total Company $886 $175 $901 $134
==== ==== ==== ====
Reconciliation of EBITDA to Net Income
--------------------------------------
EBITDA $175 $134
Depreciation and amortization 44 43
Interest expense 50 (f) 19
Interest income (1) (2)
--- ---
Income before income taxes 82 74
Provision for income taxes 32 29
--- ---
Net income $50 $45
=== ===
(a) Includes the elimination of transactions between segments.
(b) Includes $2 million ($1 million, net of tax) and $4 million ($2
million, net of tax) of a net expense during the three months ended March
31, 2010 and 2009, respectively, related to the resolution of and
adjustment to certain contingent liabilities and assets.
(c) Includes $4 million ($3 million, net of tax) related to costs incurred
in connection with the Company's acquisition of Hoseasons Holdings Ltd.
during March 2010.
(d) Includes restructuring costs of $3 million, $4 million, $35 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 $27 million.
(e) Includes a non-cash impairment charge of $5 million ($4 million, net
of tax) to reduce the value of certain vacation ownership properties and
related assets held for sale that are no longer consistent with the
Company's development plans.
(f) Includes $1 million and $15 million for Vacation Ownership and
Corporate and Other, respectively, of costs incurred for the early
extinguishment of the Company's revolving foreign credit facility and term
loan facility during March 2010. The after-tax impact of such costs is
$10 million.
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended
March 31,
---------
2010 2009
---- ----
Net revenues
Service fees and membership $424 $400
Vacation ownership interest sales 217 239
Franchise fees 92 99
Consumer financing 105 109
Other 48 54
--- ---
Net revenues 886 901
--- ---
Expenses
Operating 381 (a) 368
Cost of vacation ownership
interests 36 49
Consumer financing interest 24 32
Marketing and reservation 123 137
General and administrative (b) 148 135
Asset impairment - 5 (c)
Restructuring costs - 43 (d)
Depreciation and amortization 44 43
--- ---
Total expenses 756 812
--- ---
Operating income 130 89
Other income, net (1) (2)
Interest expense 50 (e) 19
Interest income (1) (2)
--- ---
Income before income taxes 82 74
Provision for income taxes 32 29
--- ---
Net income $50 $45
=== ===
Earnings per share
Basic $0.28 $0.25
Diluted 0.27 0.25
Weighted average shares outstanding
Basic 179 178
Diluted 186 178
__________
(a) Includes $4 million ($3 million, net of tax) related to costs
incurred in connection with the Company's acquisition of Hoseasons
Holdings Ltd. during March 2010.
(b) Includes $2 million ($1 million, net of tax) and $4 million ($2
million, net of tax) of a net expense during the three months ended
March 31, 2010 and 2009, respectively, related to the resolution of
and adjustment to certain contingent liabilities and assets.
(c) Represents a non-cash impairment charge of $5 million ($4 million,
net of tax) to reduce the value of certain vacation ownership
properties and related assets held for sale that are no longer
consistent with the Company's development plans.
(d) Relates to costs incurred as a result of various strategic
initiatives approved by the Company and commenced during 2008. The
after-tax impact of such costs was $27 million.
(e) Includes $16 million of costs incurred for the early extinguishment
of the Company's term loan facility and revolving foreign credit
facility during March 2010. The after-tax impact of such costs was
$10 million.
Table 3
(1 of 3)
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1 Q2
Lodging (a)
Number of Rooms 2010 593,300 N/A
2009 588,500 590,200
2008 551,100 551,500
2007 539,300 541,700
RevPAR 2010 $25.81 N/A
2009 $27.69 $32.38
2008 $32.21 $38.87
2007 $31.35 $38.35
Vacation Exchange and Rentals (b)
Average Number of Members (in 000s) 2010 3,746 N/A
2009 3,789 3,795
2008 3,632 3,682
2007 3,474 3,506
Exchange Revenue Per Member 2010 $201.93 N/A
2009 $194.83 $174.22
2008 $234.05 $201.04
2007 $236.71 $203.84
Vacation Rental Transactions (in 000s)
(c) 2010 291 N/A
2009 273 231
2008 269 220
2007 272 223
Average Net Price Per Vacation Rental
(c) 2010 $361.17 N/A
2009 $353.15 $471.74
2008 $442.50 $541.69
2007 $365.20 $465.60
Vacation Ownership
Gross Vacation Ownership Interest Sales
(in 000s) 2010 $308,000 N/A
2009 $280,000 $327,000
2008 $458,000 $532,000
2007 $430,000 $523,000
Tours 2010 123,000 N/A
2009 137,000 164,000
2008 255,000 314,000
2007 240,000 304,000
Volume Per Guest (VPG) 2010 $2,334 N/A
2009 $1,866 $1,854
2008 $1,668 $1,583
2007 $1,607 $1,596
Q3 Q4 Full Year
Lodging (a)
Number of Rooms N/A N/A N/A
590,900 597,700 N/A
583,400 592,900 N/A
540,900 550,600 N/A
RevPAR N/A N/A N/A
$34.81 $26.47 $30.34
$41.93 $30.03 $35.74
$43.10 $33.09 $36.48
Vacation Exchange and Rentals
(b)
Average Number of Members (in
000s) N/A N/A N/A
3,781 3,765 3,782
3,673 3,693 3,670
3,538 3,588 3,526
Exchange Revenue Per Member N/A N/A N/A
$173.90 $163.89 $176.73
$193.39 $165.99 $198.48
$203.44 $195.86 $209.80
Vacation Rental Transactions
(in 000s) (c) N/A N/A N/A
264 196 964
255 191 936
254 192 942
Average Net Price Per Vacation
Rental (c) N/A N/A N/A
$594.34 $499.66 $477.38
$659.93 $460.86 $528.95
$598.26 $504.47 $480.32
Vacation Ownership
Gross Vacation Ownership
Interest Sales (in 000s) N/A N/A N/A
$366,000 $343,000 $1,315,000
$566,000 $432,000 $1,987,000
$552,000 $488,000 $1,993,000
Tours N/A N/A N/A
173,000 142,000 617,000
334,000 240,000 1,143,000
332,000 268,000 1,144,000
Volume Per Guest (VPG) N/A N/A N/A
$1,944 $2,210 $1,964
$1,550 $1,630 $1,602
$1,545 $1,690 $1,606
Note: Full year amounts may not foot across due to rounding.
(a) Includes the impact of the acquisition of Microtel Inns & Suites and
Hawthorn Suites (July 2008) from the acquisition date forward.
Therefore, the operating statistics are not presented on a
comparable basis.
(b) Vacation Exchange and Rentals statistics have been revised to
capture member-related rentals and other servicing fees as
components of the exchange statistics. Previously, such amounts
were included within the Company's vacation rental statistics and
other ancillary revenues.
(c) Includes the impact of the acquisition of Hoseasons Holdings Ltd.
(March 2010) from the acquisition date forward. Therefore, the
operating statistics are not presented on a comparable basis.
Table 3
(2 of 3)
Wyndham Worldwide Corporation
ADDITIONAL DATA
Year Q1 Q2
Lodging (a)
Number of Properties 2010 7,090 N/A
2009 6,990 7,020
2008 6,550 6,560
2007 6,450 6,460
Vacation Ownership
Deferred Revenues (in 000s) (b) 2010 $- N/A
2009 $66,516 $37,140
2008 $(81,716) $(5,240)
2007 $3,906 $(4,908)
Provision for Loan Losses (in 000s) (c) 2010 $86,332 N/A
2009 $107,202 $121,641
2008 $82,344 $112,669
2007 $60,869 $75,032
Q3 Q4 Full Year
Lodging (a)
Number of Properties N/A N/A N/A
7,040 7,110 N/A
6,970 7,040 N/A
6,460 6,540 N/A
Vacation Ownership
Deferred Revenues (in 000s)
(b) N/A N/A N/A
$36,102 $46,784 $186,543
$(2,023) $13,870 $(75,108)
$506 $(21,092) $(21,588)
Provision for Loan Losses (in
000s) (c) N/A N/A N/A
$117,111 $103,115 $449,069
$118,609 $136,090 $449,712
$85,762 $83,644 $305,307
Note: Full year amounts may not foot across due to rounding.
(a) Information includes the impact of the acquisition of Microtel Inns &
Suites and Hawthorn Suites (July 2008) from the acquisition date
forward. Therefore, the data is not presented on a comparable
basis.
(b) 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.
(c) 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 the
Wyndham Hotels and Resorts brand for which we receive a fee for
reservation and/or other services provided or (iii) properties
managed under a 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.
Exchange Revenue Per Member: Represents total revenue generated from
fees associated with memberships, exchange transactions, member-
related rentals and other servicing for the period divided by the
average number of vacation exchange members during the period.
Vacation Rental Transactions: Represents the number of transactions
that are generated in connection with customers booking their
vacation rental stays through us. One rental transaction is recorded
each time a standard one-week rental is booked.
Average Net Price Per Vacation Rental: Represents the net rental
price generated from renting vacation properties and other related
rental servicing fees to customers divided by the number of vacation
rental transactions.
Vacation Ownership
Gross Vacation Ownership Interest Sales: Represents total sales of
vacation ownership interest (VOIs), including Wyndham Asset
Affiliation Model sales, before the net effect of percentage-of-
completion accounting and loan loss provisions. See Table 9 for a
reconciliation of Gross VOI sales to Vacation Ownership Interest
Sales. We believe that Gross VOI sales provides an enhanced
understanding of the performance of our vacation ownership business
because it directly measures the sales volume of this business
during a given reporting period.
Tours: Represents the number of tours taken by guests in our efforts
to sell vacation ownership interests.
Volume per Guest (VPG): Represents gross VOI sales (excluding tele-
sales upgrades, which are non-tour upgrade sales) divided by the
number of tours. We have excluded non-tour upgrade sales in the
calculation of VPG because non-tour upgrade sales are generated by
a different marketing channel. See Table 9 for a detail of tele-
sales upgrades for 2007-2010. We believe that VPG provides an
enhanced understanding of the performance of our vacation ownership
business because it directly measures the efficiency of this
business' tour selling efforts during a given reporting period.
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)
2010
---
Q1 Q2 Q3
-- -- --
Lodging
Royalties and Franchise Fees $52 N/A N/A
Marketing, Reservation and Wyndham
Rewards Revenues (a) 50 N/A N/A
Property Management Reimbursable
Revenues (b) 21 N/A N/A
Ancillary Revenues (c) 21 N/A N/A
--- -- --
Total Lodging 144 N/A N/A
--- -- --
Vacation Exchange and Rentals
Exchange Revenues 189 N/A N/A
Rental Revenues 105 N/A N/A
Ancillary Revenues (d) 6 N/A N/A
--- -- --
Total Vacation Exchange and Rentals 300 N/A N/A
--- -- --
Vacation Ownership
Vacation Ownership Interest Sales 217 N/A N/A
Consumer Financing 105 N/A N/A
Property Management Fees 100 N/A N/A
Ancillary Revenues (e) 22 N/A N/A
--- -- --
Total Vacation Ownership 444 N/A N/A
--- -- --
Total Reportable Segments $888 N/A N/A
==== == ==
2010
---
Q4 Year
-- ----
Lodging
Royalties and Franchise Fees N/A N/A
Marketing, Reservation and Wyndham
Rewards Revenues (a) N/A N/A
Property Management Reimbursable
Revenues (b) N/A N/A
Ancillary Revenues (c) N/A N/A
-- --
Total Lodging N/A N/A
-- --
Vacation Exchange and Rentals
Exchange Revenues N/A N/A
Rental Revenues N/A N/A
Ancillary Revenues (d) N/A N/A
-- --
Total Vacation Exchange and Rentals N/A N/A
-- --
Vacation Ownership
Vacation Ownership Interest Sales N/A N/A
Consumer Financing N/A N/A
Property Management Fees N/A N/A
Ancillary Revenues (e) N/A N/A
-- --
Total Vacation Ownership N/A N/A
-- --
Total Reportable Segments N/A N/A
== ==
2009
---
Q1 Q2 Q3
-- -- --
Lodging
Royalties and Franchise Fees $57 $68 $72
Marketing, Reservation and Wyndham
Rewards Revenues (a) 54 66 73
Property Management Reimbursable
Revenues (b) 22 23 21
Ancillary Revenues (c) 21 17 17
---
Total Lodging 154 174 183
--- --- ---
Vacation Exchange and Rentals
Exchange Revenues 185 165 164
Rental Revenues 96 109 157
Ancillary Revenues (d) 6 6 6
---
Total Vacation Exchange and Rentals 287 280 327
--- --- ---
Vacation Ownership
Vacation Ownership Interest Sales 239 242 285
Consumer Financing 109 109 108
Property Management Fees 91 94 96
Ancillary Revenues (e) 23 22 19
---
Total Vacation Ownership 462 467 508
--- --- ---
Total Reportable Segments $903 $921 $1,018
==== ==== ======
2009
---
Q4 Year
-- ----
Lodging
Royalties and Franchise Fees 57 254
Marketing, Reservation and Wyndham
Rewards Revenues (a) 53 246
Property Management Reimbursable
Revenues (b) 19 85
Ancillary Revenues (c) 20 75
Total Lodging 149 660
--- ---
Vacation Exchange and Rentals
Exchange Revenues 154 668
Rental Revenues 98 460
Ancillary Revenues (d) 6 24
Total Vacation Exchange and Rentals 258 1,152
--- -----
Vacation Ownership
Vacation Ownership Interest Sales 287 1,053
Consumer Financing 109 435
Property Management Fees 95 376
Ancillary Revenues (e) 17 81
Total Vacation Ownership 508 1,945
--- -----
Total Reportable Segments $915 $3,757
==== ======
2008
---
Q1 Q2 Q3
-- -- --
Lodging
Royalties and Franchise Fees $64 $78 $88
Marketing, Reservation and Wyndham
Rewards Revenues (a) 60 75 84
Property Management Reimbursable
Revenues (b) 27 26 25
Ancillary Revenues (c) 19 21 16
Total Lodging 170 200 213
--- --- ---
Vacation Exchange and Rentals
Exchange Revenues 213 185 178
Rental Revenues 119 119 169
Ancillary Revenues (d) 9 10 7
Total Vacation Exchange and Rentals 341 314 354
--- --- ---
Vacation Ownership
Vacation Ownership Interest Sales 294 414 446
Consumer Financing 99 104 111
Property Management Fees 85 84 89
Ancillary Revenues (e) 26 19 15
Total Vacation Ownership 504 621 661
--- --- ---
Total Reportable Segments $1,015 $1,135 $1,228
====== ====== ======
2008
---
Q4 Year
-- ----
Lodging
Royalties and Franchise Fees $66 $297
Marketing, Reservation and Wyndham
Rewards Revenues (a) 61 280
Property Management Reimbursable
Revenues (b) 21 100
Ancillary Revenues (c) 22 76
Total Lodging 170 753
--- ---
Vacation Exchange and Rentals
Exchange Revenues 152 728
Rental Revenues 88 495
Ancillary Revenues (d) 10 36
Total Vacation Exchange and Rentals 250 1,259
--- -----
Vacation Ownership
Vacation Ownership Interest Sales 309 1,463
Consumer Financing 112 426
Property Management Fees 89 346
Ancillary Revenues (e) (18) 43
Total Vacation Ownership 492 2,278
--- -----
Total Reportable Segments $912 $4,290
==== ======
2007
---
Q1 Q2 Q3
-- -- --
Lodging
Royalties and Franchise Fees $63 $78 $89
Marketing, Reservation and Wyndham
Rewards Revenues (a) 60 73 84
Property Management Reimbursable
Revenues (b) 16 22 26
Ancillary Revenues (c) 13 13 12
Total Lodging 152 186 211
--- --- ---
Vacation Exchange and Rentals
Exchange Revenues 206 179 180
Rental Revenues 99 104 152
Ancillary Revenues (d) 9 5 4
Total Vacation Exchange and Rentals 314 288 336
--- --- ---
Vacation Ownership
Vacation Ownership Interest Sales 373 443 467
Consumer Financing 81 88 93
Property Management Fees 74 78 79
Ancillary Revenues (e) 21 20 32
Total Vacation Ownership 549 629 671
--- --- ---
Total Reportable Segments $1,015 $1,103 $1,218
====== ====== ======
2007
---
Q4 Year
-- ----
Lodging
Royalties and Franchise Fees $67 $296
Marketing, Reservation and Wyndham
Rewards Revenues (a) 64 281
Property Management Reimbursable
Revenues (b) 28 92
Ancillary Revenues (c) 17 56
---
Total Lodging 176 725
--- ---
Vacation Exchange and Rentals
Exchange Revenues 175 740
Rental Revenues 97 452
Ancillary Revenues (d) 8 26
Total Vacation Exchange and Rentals 280 1,218
--- -----
Vacation Ownership
Vacation Ownership Interest Sales 383 1,666
Consumer Financing 96 358
Property Management Fees 78 310
Ancillary Revenues (e) 19 91
Total Vacation Ownership 576 2,425
--- -----
Total Reportable Segments $1,032 $4,368
====== ======
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 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 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)
March 31, December 31, September 30,
2010 2009 2009
---- --- ---
Securitized vacation
ownership debt
Term notes $1,258 $1,112 $1,305
Bank conduit facilities (a) 240 395 299
--- --- ---
Securitized vacation
ownership debt (b) 1,498 1,507 1,604
Less: Current portion of
securitized vacation
ownership debt 220 209 291
Long-term securitized
vacation ownership debt $1,278 $1,298 $1,313
====== ====== ======
Debt:
6.00% senior unsecured notes
(due December 2016) (c) $798 $797 $797
Term loan (d) - 300 300
Revolving credit facility
(due October 2013) (e) 199 - 21
9.875% senior unsecured
notes (due May 2014) (f) 239 238 237
3.50% convertible notes (due
May 2012) (g) 448 367 309
7.375% senior unsecured
notes (due March 2020) (h) 247 - -
Vacation ownership bank
borrowings (i) - 153 163
Vacation rentals capital
leases 123 133 139
Other 28 27 23
--- --- ---
Total debt 2,082 2,015 1,989
Less: Current portion of
debt 23 175 176
Long-term debt $2,059 $1,840 $1,813
====== ====== ======
June 30, March 31,
-------- ---------
2009 2009
---- ----
Securitized vacation ownership debt
Term notes $1,290 $1,165
Bank conduit facilities (a) 340 569
--- ---
Securitized vacation ownership debt
(b) 1,630 1,734
Less: Current portion of securitized
vacation ownership debt 288 305
Long-term securitized vacation
ownership debt $1,342 $1,429
====== ======
Debt:
6.00% senior unsecured notes (due
December 2016) (c) $797 $797
Term loan (d) 300 300
Revolving credit facility (due
October 2013) (e) 30 517
9.875% senior unsecured notes (due
May 2014) (f) 237 -
3.50% convertible notes (due May
2012) (g) 253 -
7.375% senior unsecured notes (due
March 2020) (h) - -
Vacation ownership bank borrowings
(i) 154 156
Vacation rentals capital leases 135 130
Other 22 13
--- ---
Total debt 1,928 1,913
Less: Current portion of debt 169 166
Long-term debt $1,759 $1,747
====== ======
(a) Represents (i) a 364-day, non-recourse vacation ownership bank
conduit facility with a term through October 2010 and borrowing
capacity of $600 million and (ii) the outstanding balance of the
Company's prior bank conduit facility through October 8, 2009, the
date on which such balance was repaid. As of March 31, 2010, our
364-day facility has remaining borrowing capacity of $360 million.
(b) This debt is collateralized by $2,712 million, $2,755 million,
$2,947 million, $2,916 million and $3,005 million of underlying
vacation ownership contract receivables and related assets as of
March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009
and March 31, 2009, respectively.
(c) The balance as of March 31, 2010 represents $800 million
aggregate principal less $2 million of unamortized discount.
(d) The Company's term loan facility was fully repaid during March 2010.
(e) During March 2010, the Company replaced its five-year $900
million revolving credit facility with a $950 million revolving
credit facility that expires on October 1, 2013. As of March 31,
2010, the Company has $30 million of outstanding letters of credit
and a remaining borrowing capacity of $721 million.
(f) Represents senior unsecured notes issued by the Company during
May 2009. The balance as of March 31, 2010 represents $250 million
aggregate principal less $11 million of unamortized discount.
(g) Represents cash convertible notes issued by the Company during
May 2009, which includes debt principal less unamortized discount,
as well as a liability related to a bifurcated conversion feature.
The following table details the components of the convertible notes:
March 31, December 31, September 30, June 30,
2010 2009 2009 2009
---- ---- ---- ----
Debt principal $230 $230 $230 $230
Unamortized
discount (35) (39) (43) (46)
---- --- --- ---
Debt less discount 195 191 187 184
Fair value of
bifurcated
conversion
feature (*) 253 176 122 69
Cash convertible
notes $448 $367 $309 $253
==== ==== ==== ====
(*) The Company also has an asset with a fair value approximate to
the bifurcated conversion feature, which represents cash-settled
call options that the Company purchased concurrently with the
issuance of the
convertible notes.
(h) Represents senior unsecured notes issued by the Company during
February 2010. The balance as of March 31, 2010 represents $250
million aggregate principal less $3 million of unamortized discount.
(i) Represents a 364-day, AUD 213 million, secured, revolving foreign
credit facility, which was paid down and terminated during March
2010.
Table 6
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Three Months Ended March 31, 2010
---------------------------------------------------
Average
Number of Number of Occupancy
Brand Properties Rooms Rate
----- ---------- ---------- ----------
Wyndham Hotels and
Resorts 94 25,140 51.2%
Wingate by Wyndham 164 15,020 51.8%
Hawthorn Suites by
Wyndham 87 8,106 49.2%
Ramada 899 117,555 43.2%
Baymont 242 20,529 41.3%
Days Inn 1,860 149,770 38.7%
Super 8 2,134 132,910 41.1%
Howard Johnson 489 46,588 38.8%
Travelodge 452 33,604 38.1%
Microtel Inns &
Suites 317 22,550 43.5%
Knights Inn 347 21,155 33.1%
Affiliated Hotels (*) 2 404 N/A
Total 7,087 593,331 41.1%
As of and For the Three Months Ended March 31, 2010
---------------------------------------------------
Average
Revenue Per
Average Available
Daily Rate Room
Brand (ADR) (RevPAR)
----- ----------- ------------
Wyndham Hotels and
Resorts $112.88 $57.74
Wingate by Wyndham $77.42 $40.09
Hawthorn Suites by
Wyndham $76.99 $37.89
Ramada $72.76 $31.42
Baymont $57.68 $23.83
Days Inn $57.80 $22.36
Super 8 $52.93 $21.76
Howard Johnson $57.69 $22.37
Travelodge $61.40 $23.39
Microtel Inns &
Suites $54.99 $23.94
Knights Inn $38.94 $12.89
Affiliated Hotels (*) N/A N/A
Total $62.78 $25.81
As of and For the Three Months Ended March 31, 2009
---------------------------------------------------
Average
Number of Number of Occupancy
Brand Properties Rooms Rate
----- ---------- ---------- ----------
Wyndham Hotels and
Resorts 82 21,650 51.6%
Wingate by Wyndham 166 15,195 50.7%
Hawthorn Suites by
Wyndham 90 8,448 50.6%
Ramada 885 114,448 44.0%
Baymont 225 18,914 43.8%
Days Inn 1,851 150,319 41.4%
Super 8 2,105 130,725 43.6%
Howard Johnson 475 46,273 39.9%
Travelodge 471 35,477 39.6%
Microtel Inns &
Suites 313 22,476 45.5%
Knights Inn 309 19,920 36.1%
Affiliated Hotels (*) 21 4,613 N/A
Total 6,993 588,458 42.9%
As of and For the Three Months Ended March 31, 2009
---------------------------------------------------
Average
Revenue Per
Average Available
Daily Rate Room
Brand (ADR) (RevPAR)
----- ----------- ------------
Wyndham Hotels and
Resorts $124.60 $64.27
Wingate by Wyndham $85.17 $43.15
Hawthorn Suites by
Wyndham $89.93 $45.53
Ramada $74.44 $32.78
Baymont $61.63 $26.97
Days Inn $59.30 $24.57
Super 8 $54.67 $23.84
Howard Johnson $60.02 $23.97
Travelodge $57.07 $22.58
Microtel Inns &
Suites $55.96 $25.48
Knights Inn $41.08 $14.82
Affiliated Hotels (*) N/A N/A
Total $64.48 $27.69
NOTE: A glossary of terms is included in Table 3 (3 of 3); RevPAR may
not recalculate by multiplying average occupancy rate by ADR due to
rounding.
(*) Represents properties managed under a joint venture and, as of
December 31, 2009, also includes properties for which we receive a
fee for reservation services provided. As these properties are not
branded, operating statistics (such as average occupancy rate, ADR
and RevPAR) are not relevant. Amounts as of December 31, 2009 also
include Amerihost branded properties.
Table 7
(1 of 2)
Wyndham Worldwide
NON-GAAP RECONCILIATION
(In millions)
Reported Acquisition
Three months ended March
31, 2010 Net Revenues EBITDA Costs (b)
------------ ------ ---------
Lodging $144 $33 $-
Vacation Exchange and
Rentals 300 80 4
Vacation Ownership 444 82 -
--- --- ---
Total Reportable Segments 888 195 4
Corporate and Other (a) (2) (20) -
--- --- ---
Total Company $886 $175 $4
==== ==== ===
Legacy Adjusted
Three months ended March Adjustments
31, 2010 (c) EBITDA
----------- ------
Lodging $- $33
Vacation Exchange and
Rentals - 84
Vacation Ownership - 82
--- ---
Total Reportable Segments - 199
Corporate and Other (a) 2 (18)
---
Total Company $2 $181
=== ====
(a) Includes the elimination of transactions between segments.
(b) Relates to costs incurred in connection with the Company's
acquisition of Hoseasons Holdings Ltd. during March 2010.
(c) Relates to the net expense from the resolution of and adjustment
to certain contingent liabilities and assets.
Table 7
(2 of 2)
Wyndham Worldwide
NON-GAAP RECONCILIATIONS
(In millions)
Reported Restructuring
Three months ended March 31, Related Costs
2009 Net Revenues EBITDA (b)
------------ ------ -------------
Lodging $154 $35 $3
Vacation Exchange and
Rentals 287 76 4
Vacation Ownership 462 44 35
--- --- ---
Total Reportable Segments 903 155 42
Corporate and Other (a) (2) (21) 1
--- --- ---
Total Company $901 $134 $43
==== ==== ===
Three months ended June 30,
2009
Lodging $174 $50 $-
Vacation Exchange and
Rentals 280 56 2
Vacation Ownership 467 107 1
--- --- ---
Total Reportable Segments 921 213 3
Corporate and Other (a) (1) (17) -
--- --- ---
Total Company $920 $196 $3
==== ==== ===
Three months ended September
30, 2009
Lodging $183 $58 $-
Vacation Exchange and
Rentals 327 107 -
Vacation Ownership 508 104 -
--- --- ---
Total Reportable Segments 1,018 269 -
Corporate and Other (a) (2) (15) -
--- --- ---
Total Company $1,016 $254 $-
====== ==== ===
Three months ended December
31, 2009
Lodging $149 $32 $-
Vacation Exchange and
Rentals 258 48 -
Vacation Ownership 508 132 -
--- --- ---
Total Reportable Segments 915 212 -
Corporate and Other (a) (2) (18) -
--- --- ---
Total Company $913 $194 $-
==== ==== ===
Twelve months ended December
31, 2009
Lodging $660 $175 $3
Vacation Exchange and
Rentals 1,152 287 6
Vacation Ownership 1,945 387 36
----- --- ---
Total Reportable Segments 3,757 849 45
Corporate and Other (a) (7) (71) 1
--- --- ---
Total Company $3,750 $778 $46
============= ====== ==== ===
Legacy Adjusted
Three months ended March 31,
2009 Adjustments (c) EBITDA
--------------- ------
Lodging $- $38
Vacation Exchange and
Rentals - 80
Vacation Ownership - 79
--- ---
Total Reportable Segments - 197
Corporate and Other (a) 4 (16)
--- ---
Total Company $4 $181
=== ====
Three months ended June 30,
2009
Lodging $- $50
Vacation Exchange and
Rentals - 58
Vacation Ownership - 108
--- ---
Total Reportable Segments - 216
Corporate and Other (a) - (17)
--- ---
Total Company $- $199
=== ====
Three months ended September
30, 2009
Lodging $- $58
Vacation Exchange and
Rentals - 107
Vacation Ownership - 104
--- ---
Total Reportable Segments - 269
Corporate and Other (a) 2 (13)
--- ---
Total Company $2 $256
=== ====
Three months ended December
31, 2009
Lodging $- $32
Vacation Exchange and
Rentals - 48
Vacation Ownership - 132
--- ---
Total Reportable Segments - 212
Corporate and Other (a) - (18)
--- ---
Total Company $- $194
=== ====
Twelve months ended December
31, 2009
Lodging $- $178
Vacation Exchange and
Rentals - 293
Vacation Ownership - 423
--- ---
Total Reportable Segments - 894
Corporate and Other (a) 6 (64)
--- ---
Total Company $6 $830
============= === ====
(a) Includes the elimination of transactions between segments.
(b) Relates to costs incurred as a result of various strategic
initiatives commenced by the Company during 2008.
(c) Relates to the net expense from the resolution of and adjustment
to certain contingent liabilities and assets.
Table 8
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended March 31, 2010
---------------------------------
Early
Extinguishment Acquisition
of Debt Costs
As Reported
------------ ------------- ------------
Net revenues
Service fees
and membership $424
Vacation
ownership
interest sales 217
Franchise fees 92
Consumer
financing 105
Other 48
---
Net revenues 886 - -
--- --- ---
Expenses
Operating 381 (4) (b)
Cost of
vacation
ownership
interests 36
Consumer
financing
interest 24
Marketing and
reservation 123
General and
administrative 148
Asset
impairments -
Restructuring
costs -
Depreciation
and
amortization 44
---
Total expenses 756 - (4)
--- --- ---
Operating
income 130 - 4
Other income,
net (1)
Interest
expense 50 (16) (a)
Interest income (1)
---
Income before
income taxes 82 16 4
Provision for
income taxes 32 6 (d) 1 (d)
--- --- ---
Net income $50 $10 $3
=== === ===
Earnings per
share
Basic $0.28 $0.05 $0.02
Diluted 0.27 0.05 0.02
Weighted
average shares
outstanding
Basic 179 179 179
Diluted 186 186 186
Three Months Ended March 31, 2010
---------------------------------
Legacy
Adjustments
As Adjusted
Net revenues
Service fees and
membership $424
Vacation ownership
interest sales 217
Franchise fees 92
Consumer financing 105
Other 48
---
Net revenues - 886
--- ---
Expenses
Operating 377
Cost of vacation ownership
interests 36
Consumer financing
interest 24
Marketing and reservation 123
General and administrative (2) (c) 146
Asset impairments -
Restructuring costs -
Depreciation and
amortization 44
---
Total expenses (2) 750
--- ---
Operating income 2 136
Other income, net (1)
Interest expense 34
Interest income (1)
---
Income before income taxes 2 104
Provision for income taxes 1 (d) 40
--- ---
Net income $1 $64
=== ===
Earnings per share
Basic $0.01 $0.36
Diluted 0.01 0.34
Weighted average shares
outstanding
Basic 179 179
Diluted 186 186
Note: EPS amounts may not foot due to rounding.
(a) Relates to costs incurred for the early extinguishment of the
Company's term loan facility and revolving foreign credit facility
during March 2010.
(b) Relates to costs incurred in connection with the Company's
acquisition of Hoseasons Holdings Ltd. during March 2010.
(c) Relates to the net expense from the resolution of and adjustment
to certain contingent liabilities and assets.
(d) Relates to the tax effect of the adjustments.
Three Months Ended March 31, 2009
-------------------------------
Legacy
As Reported Adjustments
Net revenues
Service fees and
membership $400
Vacation ownership
interest sales 239
Franchise fees 99
Consumer financing 109
Other 54
---
Net revenues 901 -
--- ---
Expenses
Operating 368
Cost of vacation ownership
interests 49
Consumer financing
interest 32
Marketing and reservation 137
General and administrative 135 (4) (a)
Asset impairments 5
Restructuring costs 43
Depreciation and
amortization 43
---
Total expenses 812 (4)
--- ---
Operating income 89 4
Other income, net (2)
Interest expense 19
Interest income (2)
---
Income before income taxes 74 4
Provision for income taxes 29 2 (c)
--- ---
Net income $45 $2
=== ===
Earnings per share $0.25 $0.01
Weighted average shares
outstanding 178 178
Three Months Ended March 31, 2009
---------------------------------
Restructuring
Costs As Adjusted
Net revenues
Service fees and
membership $400
Vacation ownership
interest sales 239
Franchise fees 99
Consumer financing 109
Other 54
---
Net revenues - 901
--- ---
Expenses
Operating 368
Cost of vacation ownership
interests 49
Consumer financing
interest 32
Marketing and reservation 137
General and administrative 131
Asset impairments 5
Restructuring costs (43) (b) -
Depreciation and
amortization 43
---
Total expenses (43) 765
--- ---
Operating income 43 136
Other income, net (2)
Interest expense 19
Interest income (2)
---
Income before income taxes 43 121
Provision for income taxes 16 (c) 47
--- ---
Net income $27 $74
=== ===
Earnings per share $0.15 $0.41
Weighted average shares
outstanding 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 9
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS AND FINANCIAL INFORMATION
(In millions)
FREE CASH FLOW
The Company defines free cash flow as net cash provided by operating
activities minus capital expenditures, equity investments and development
advances, excluding cash payments related to the Company's contingent tax
liabilities that it assumed and is responsible for pursuant to its
separation from Cendant. The Company considers free cash flow to be a
liquidity measure that provides useful information to management and
investors about the amount of cash generated by the business that, after
the acquisition of property and equipment, equity investments and hotel
development advances, can be used for strategic opportunities, including
making acquisitions, paying dividends, repurchasing the Company's common
stock and strengthening the balance sheet. Analysis of free cash flow also
facilitates management's comparisons of the Company's operating results to
its competitors' operating results. A limitation of using free cash flow
versus the GAAP measure of net cash provided by operating activities
as a means for evaluating Wyndham Worldwide is that free cash flow does
not represent the total increase or decrease in the cash balance from
operations for the period.
The following table provides more details on the GAAP financial measure
that is most directly comparable to the non-GAAP financial measure and the
related reconciliation between these financial measures:
Q1 2010 Q1 2009
------- -------
Net cash provided by operating
activities $205 $210
Less: Property and equipment
additions (36) (53)
Less: Equity investments and
development advances (3) (2)
Free cash flow $166 $155
==== ====
GROSS VOI SALES
The following table provides a reconciliation of Gross VOI sales (see
Table 3) to Vacation ownership interest sales (see Table 4):
Year
----
2010 Q1 Q2 Q3
---- --- --- ---
Gross VOI sales $308 N/A N/A
Less: Sales under the Wyndham Asset
Affiliation Model ("WAAM") (*) (5) N/A N/A
--- --- ---
Gross VOI sales, net of WAAM sales 303 N/A N/A
Less: Loan loss provision (86) N/A N/A
Vacation ownership interest sales $217 N/A N/A
==== == ==
2009
----
Gross VOI sales $280 $327 $366
Plus: Net effect of percentage-of-
completion accounting 67 37 36
Less: Loan loss provision (107) (122) (117)
Vacation ownership interest sales $239 $242 $285
==== ==== ====
2008
----
Gross VOI sales $458 $532 $566
Plus/(less): Net effect of percentage-of-
completion accounting (82) (5) (2)
Less: Loan loss provision (82) (113) (119)
Vacation ownership interest sales $294 $414 $446
==== ==== ====
2007
----
Gross VOI sales $430 $523 $552
Plus/(less): Net effect of percentage-of-
completion accounting 4 (5) 1
Less: Loan loss provision (61) (75) (86)
Vacation ownership interest sales $373 $443 $467
================================= ==== ==== ====
Year
----
2010 Q4 Full Year
---- --- ---------
Gross VOI sales N/A N/A
Less: Sales under the Wyndham Asset
Affiliation Model ("WAAM") (*) N/A N/A
--- ---
Gross VOI sales, net of WAAM sales N/A N/A
Less: Loan loss provision N/A N/A
Vacation ownership interest sales N/A N/A
== ==
2009
----
Gross VOI sales $343 $1,315
Plus: Net effect of percentage-of-
completion accounting 47 187
Less: Loan loss provision (103) (449)
Vacation ownership interest sales $287 $1,053
==== ======
2008
----
Gross VOI sales $432 $1,987
Plus/(less): Net effect of percentage-of-
completion accounting 14 (75)
Less: Loan loss provision (136) (450)
Vacation ownership interest sales $309 $1,463
==== ======
2007
----
Gross VOI sales $488 $1,993
Plus/(less): Net effect of percentage-of-
completion accounting (21) (22)
Less: Loan loss provision (84) (305)
Vacation ownership interest sales $383 $1,666
================================= ==== =====
Note: Amounts may not foot due to rounding.
(*) Represents the Company's fee-for-service vacation ownership
sales model designed to capitalize upon the large quantities of
newly developed, nearly completed or recently finished condominium
or hotel inventory within the current real estate market without
assuming the investment that accompanies new construction. The
Company offers turn-key solutions for developers or banks in
possession of newly developed inventory, which it will sell for a
commission fee through its extensive sales and marketing channels.
The commission revenue earned on these sales is included in service
fees and membership revenues on the Consolidated Statement of
Income.
The following represents tele-sales upgrades, which are excluded from
Gross VOI sales in the Company's VPG calculation (see Table 3):
Q1 Q2 Q3 Q4 Full Year
--- --- --- --- ---------
2010 $15 N/A N/A N/A N/A
2009 $24 $23 $29 $28 $104
2008 $33 $35 $49 $40 $156
2007 $44 $37 $39 $36 $157
Note: Amounts may not foot across due to rounding.