Hotel Online
News for the Hospitality Executive

advertisement



  Wyndham Reports Strong 3rd Qtr 2011 Adjusted Net Income of $153 million,
Up 22% from $125 million for Same Period 2010; RevPAR Increased 6.3%

 

PARSIPPANY, N.J., Oct. 26, 2011-- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended September 30, 2011.

Highlights:

  • Third quarter 2011 adjusted diluted earnings per share (EPS) was $0.94, compared with $0.68 in the third quarter of 2010, an increase of 38%. Third quarter 2011 reported diluted EPS was $1.08, an increase of 29%, compared with the same period in 2010.
  • Free cash flow increased 24% to $699 million for the first three quarters of 2011, compared with $564 million during the same period in 2010. The Company defines free cash flow as net cash provided by operating activities less capital expenditures, equity investments and development advances and excludes a 2010 cash payment related to contingent IRS tax liabilities.
  • During the quarter, the Company repurchased approximately 10.2 million shares of its common stock at an average price of $29.75 for $304 million.

“I am pleased once again with our strong results, which reflect outstanding operating performance and the resiliency of our businesses,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “In addition, we continued to thoughtfully deploy our free cash flow to repurchase our common shares and invest in our company.”

THIRD QUARTER 2011 OPERATING RESULTS

Third quarter revenues increased 14% from the prior year period to $1.2 billion. The revenue growth reflects strong RevPAR growth of 6.3% in our hotel business, increased rental revenues including contributions from acquisitions of vacation rentals businesses and higher sales in the vacation ownership business.

For the third quarter of 2011, adjusted net income increased 22% to $153 million, compared with $125 million in the third quarter of 2010. On a per share basis, adjusted net income grew 38% to $0.94 per diluted share, compared with $0.68 per diluted share in the same period in 2010. The increase reflects strong operational performance and the benefit from the Company’s share repurchase program, partially offset by a higher tax rate compared with the third quarter of 2010. Adjusted net income for the third quarter of 2011 excludes a tax benefit of $13 million related to the reversal of a tax valuation allowance, $7 million, after tax, of interest income related to a refund of value added taxes and a $6 million after-tax net benefit related to the adjustment and resolution of certain contingent liabilities and assets. These adjustments were partially offset by a $4 million after-tax loss related to the write-off of foreign exchange translation adjustments resulting from the liquidation of a foreign entity.

Including the above adjustments, third quarter 2011 net income grew 12% to $175 million, or $1.08 per diluted share, compared with net income of $156 million or $0.84 per diluted share, a 29% increase per share from the third quarter of 2010.

Free cash flow increased 24% to $699 million for the first nine months of 2011, compared with $564 million during the same period in 2010. The growth in free cash flow reflects higher cash earnings, more efficient working capital utilization and a refund of value added taxes and related interest income. For the first nine months, cash provided by operating activities was $860 million, compared with $528 million in the prior year period, which included a $145 million cash payment related to contingent IRS tax liabilities.

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)

Revenues were $222 million in the third quarter of 2011, an increase of 9%, compared with the third quarter of 2010, primarily reflecting improved RevPAR performance, an increase in system size and a $12 million reclassification of certain reservation fees, which had no impact on EBITDA. In the third quarter of 2011, system-wide RevPAR increased 6.3%, or 4.8% in constant currency.

Third quarter 2011 EBITDA of $67 million, was flat, compared with the same period in 2010, primarily reflecting the timing of $3 million in marketing and reservation expenses as well as $3 million of pre-opening costs for the Wyndham Grand Orlando Resort Bonnet Creek.

As of September 30, 2011, the Company’s hotel system consisted of approximately 7,190 properties and 611,200 rooms. The development pipeline included approximately 870 hotels and 115,000 rooms, of which 58% were new construction. International rooms accounted for 62% of the development pipeline.

Vacation Exchange and Rentals (Wyndham Exchange & Rentals)

Revenues were $436 million in the third quarter of 2011, an increase of 32% compared with the third quarter of 2010, reflecting incremental revenues from acquisitions and the favorable impact from foreign currency.

Exchange revenues were $161 million, flat compared with the third quarter of 2010. In constant currency, exchange revenues decreased 3%, reflecting a 2.2% decrease in exchange revenue per member. The average number of members was flat.

Vacation rental revenues were $260 million, which included $83 million of incremental revenues related to acquisitions, compared with $161 million in the third quarter of 2010. In constant currency, excluding the impact of the incremental revenues from acquisitions, net revenues generated from rental transactions and related services increased 2%, reflecting a 1.4% increase in the average net price per vacation rental, while rental transaction volume was flat.

Adjusted EBITDA for the third quarter of 2011 was $135 million, a 30% increase compared with $104 million in the prior year period. The increase reflects incremental contributions from acquisitions and the favorable impact from foreign currency. Third quarter 2011 adjusted EBITDA excludes a $4 million loss related to the write-off of foreign exchange translation adjustments resulting from the liquidation of a foreign entity.

Vacation Ownership (Wyndham Vacation Ownership)

Revenues for the third quarter of 2011 were $559 million, a 5% increase compared with $533 million in the third quarter of 2010, reflecting an increase in Vacation Ownership Interest (VOI) sales and commissions under the Wyndham Asset Affiliation Model (WAAM).

Gross VOI sales were $455 million in the third quarter of 2011, up 10% from the third quarter of 2010, reflecting a 5.6% increase in volume per guest and a 5.3% increase in tour flow.

EBITDA for the third quarter of 2011 increased 21% to $149 million, compared with EBITDA of $123 million in the third quarter of 2010, reflecting the increase in VOI sales and a decrease in cost of sales.

Other Items

  • The Company repurchased approximately 10.2 million shares of its common stock during the third quarter of 2011 at an average price of $29.75 for $304 million and an additional 1.4 million shares at an average price of $29.19 for $40 million through October 25, 2011.
  • Net interest expense in the third quarter of 2011 was $15 million, compared with $45 million in the same period in 2010. Third quarter 2011 net interest expense included $16 million of interest income related to a refund of value added taxes and third quarter 2010 net interest expense included $11 million of costs incurred for the early extinguishment of debt.

Balance Sheet Information as of September 30, 2011:

  • Cash and cash equivalents of $175 million, compared with approximately $155 million at December 31, 2010.
  • Vacation ownership contract receivables, net, of $2.9 billion, compared with $3.0 billion at December 31, 2010.
  • Vacation ownership and other inventory of $1.1 billion, compared with $1.2 billion at December 31, 2010.
  • Securitized vacation ownership debt of $1.7 billion, unchanged from December 31, 2010.
  • Other debt of $2.1 billion, unchanged from December 31, 2010. The remaining borrowing capacity on the revolving credit facility was $820 million, compared with $788 million as of December 31, 2010.

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

Outlook

The Company is increasing full-year 2011 adjusted EPS guidance from $2.32$2.40 to $2.41$2.45, based on a diluted share count of 167 million.

For the fourth quarter of 2011, the Company expects adjusted EPS of $0.40$0.44 based on a diluted share count of 158 million.

The Company’s preliminary guidance for the full-year 2012 is as follows:

  • Revenues of approximately $4.425$4.600 billion
  • Adjusted EBITDA of approximately $1.030$1.055 billion
  • Adjusted EPS of approximately $2.72$2.82 based on a diluted share count of 160 million.

The guidance reflects assumptions used for internal planning purposes. Guidance may exclude non-recurring or special items, 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, October 26, 2011 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 October 26, 2011. 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 11:00am EDT on October 26, 2011 by dialing (866) 490-5935 and providing the pass code "8425."

Presentation of Financial Information

Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP 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. It is not practicable to provide a reconciliation of forecasted adjusted EBITDA and EPS to the most directly comparable GAAP measures because certain items cannot be reasonably estimated or predicted at this time. Any such items could be significant to our financial results.

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 services and products across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Worldwide encompasses approximately 7,360 franchised hotels and vacation ownership resorts with approximately 632,000 rooms worldwide. Wyndham Exchange & Rentals offers leisure travelers, including its 3.7 million members, access to approximately 99,000 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 vacation ownership resorts serving nearly 815,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 26,000 employees globally.

For more information about Wyndham Worldwide, please visit the Company’s website 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 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, terrorist activity or political strife, 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 1, 2011. 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


(1 of 2)


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 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 September 30, 2011 and 2010:














Three Months Ended September 30,




2011


2010




Net Revenues


EBITDA


Net Revenues


EBITDA



Lodging

$ 222


$ 67


$ 203


$ 67



Vacation Exchange and Rentals

436


131

(b)

330


103

(e)


Vacation Ownership

559


149


533


123



Total Reportable Segments

1,217


347


1,066


293



Corporate and Other (a)

(5)


(18)

(c)

(1)


30

(c)


Total Company

$ 1,212


$ 329


$ 1,065


$ 323













Reconciliation of EBITDA to Net Income




















EBITDA



$ 329




$ 323



Depreciation and amortization



43




43



Interest expense



34




47

(f)


Interest income



(19)

(d)



(2)



Income before income taxes



271




235



Provision for income taxes



96




79



Net income



$ 175




$ 156













__________


(a) Includes the elimination of transactions between segments.


(b) Includes a $4 million charge related to the write-off of foreign exchange translation adjustments associated with the liquidation of a foreign entity.


(c) Includes $8 million and $52 million of a net benefit during the three months ended September 30, 2011 and 2010, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.


(d) Includes $16 million of interest income related to a refund of value added taxes.


(e) Includes $1 million related to costs incurred in connection with the Company's acquisition of ResortQuest during September 2010.


(f) Includes $11 million of costs incurred for the early repurchase of a portion of the Company's 3.50% convertible notes during the third quarter of 2010.




The following tables summarize net revenues and Adjusted EBITDA for reportable segments for the three months ended September 30, 2011 and 2010 (for a description of adjustments by segment, see Table 7):


























Three Months Ended September 30,





2011


2010







Adjusted




Adjusted





Net Revenues


EBITDA


Net Revenues


EBITDA



Lodging

$ 222


$ 67


$ 203


$ 67



Vacation Exchange and Rentals

436


135


330


104



Vacation Ownership

559


149


533


123



Total Reportable Segments

1,217


351


1,066


294



Corporate and Other

(5)


(26)


(1)


(22)



Total Company

$ 1,212


$ 325


$ 1,065


$ 272















Table 1


(2 of 2)


Wyndham Worldwide Corporation


OPERATING RESULTS OF REPORTABLE SEGMENTS


(In millions)
























The following tables summarize net revenues and EBITDA for reportable segments, as well as reconcile EBITDA to net income for the nine months ended September 30, 2011 and 2010:


























Nine Months Ended September 30,





2011


2010





Net Revenues


EBITDA


Net Revenues


EBITDA



Lodging

$ 561


$ 160

(b)

$ 525


$ 148

(h)


Vacation Exchange and Rentals

1,152


330

(c)

912


261

(i)


Vacation Ownership

1,550


376

(d)

1,483


310



Total Reportable Segments

3,263


866


2,920


719



Corporate and Other (a)

(10)


(57)

(e)

(6)


(4)

(e)


Total Company

$ 3,253


$ 809


$ 2,914


$ 715













Reconciliation of EBITDA to Net Income




















EBITDA



$ 809




$ 715



Depreciation and amortization



133




128



Interest expense



115

(f)



133

(j)


Interest income



(22)

(g)



(3)



Income before income taxes



583




457



Provision for income taxes



222




157



Net income



$ 361




$ 300














__________


(a) Includes the elimination of transactions between segments.


(b) Includes a non-cash impairment charge of $13 million related to a write-down of an international joint venture in the Company's lodging business.


(c) Includes (i) a $31 million net benefit resulting from a refund of value added taxes, (ii) $7 million of restructuring costs incurred in connection with a strategic initiative commenced by the Company during 2010 and (iii) a $4 million charge related to the write-off of foreign exchange translation adjustments associated with the liquidation of a foreign entity.


(d) Includes a $1 million benefit for the reversal of costs incurred as a result of various strategic initiatives commenced by the Company during 2008.


(e) Includes $16 million and $51 million of a net benefit during the nine months ended September 30, 2011 and 2010, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.


(f) Includes (i) $12 million of costs incurred for the early repurchase of a portion of the Company's convertible notes during the first nine months of 2011 and (ii) $3 million of interest related to value added tax accruals.


(g) Includes $16 million of interest income related to a refund of value added taxes.


(h) Includes $1 million related to costs incurred in connection with the Company's acquisition of the TRYP hotel brand during June 2010.


(i) Includes (i) $4 million related to costs incurred in connection with the Company's acquisition of Hoseasons Holdings Ltd. during March 2010 and (ii) $1 million related to costs incurred in connection with the Company's acquisition of ResortQuest during September 2010.


(j) Includes (i) $16 million of costs incurred for the early extinguishment of the Company's term loan facility and revolving foreign credit facility during March 2010 and (ii) $11 million of costs incurred for the repurchase of a portion of the Company's 3.50% convertible notes during the third quarter of 2010.




The following tables summarize net revenues and Adjusted EBITDA for reportable segments for the nine months ended September 30, 2011 and 2010 (for a description of adjustments by segment, see Table 7):


























Nine Months Ended September 30,





2011


2010







Adjusted




Adjusted





Net Revenues


EBITDA


Net Revenues


EBITDA



Lodging

$ 561


$ 173


$ 525


$ 149



Vacation Exchange and Rentals

1,152


310


912


266



Vacation Ownership

1,550


375


1,483


310



Total Reportable Segments

3,263


858


2,920


725



Corporate and Other

(10)


(73)


(6)


(55)



Total Company

$ 3,253


$ 785


$ 2,914


$ 670















Table 2


Wyndham Worldwide Corporation



CONSOLIDATED STATEMENTS OF INCOME



(In millions, except per share data)






























Three Months Ended


Nine Months Ended






September 30,


September 30,





2011


2010


2011


2010



Net revenues











Service and membership fees


$ 584


$ 464


$ 1,579


$ 1,298



Vacation ownership interest sales


320


308


855


796



Franchise fees


160


142


395


353



Consumer financing


105


107


310


318



Other


43


44


114


149



Net revenues


1,212


1,065


3,253


2,914














Expenses











Operating


490

(a)

410

(b)

1,358

(a)

1,179

(b)


Cost of vacation ownership interests


35


52


115


138



Consumer financing interest


21


27


67


80



Marketing and reservation


182


149


472


410



General and administrative (c)


157


101


422

(d)

394



Asset impairment


-


4

(e)

13

(f)

4

(e)


Restructuring


-


-


6

(g)

-



Depreciation and amortization


43


43


133


128



Total expenses


928


786


2,586


2,333














Operating income


284


279


667


581



Other income, net


(2)


(1)


(9)

(h)

(6)



Interest expense


34


47

(i)

115

(j)

133

(i)


Interest income


(19)

(k)

(2)


(22)

(k)

(3)














Income before income taxes


271


235


583


457



Provision for income taxes


96

(l)

79


222

(l)

157














Net income


$ 175


$ 156


$ 361


$ 300














Earnings per share











Basic


$ 1.10


$ 0.88


$ 2.17


$ 1.68



Diluted


1.08


0.84


2.12


1.62














Weighted average shares outstanding











Basic


159


177


166


179



Diluted


162


184


170


186



__________











(a) Includes a $4 million charge related to the write-off of foreign exchange translation adjustments associated with the liquidation of a foreign entity.


(b) Includes $1 million during both the three and nine months ended September 30, 2010 related to costs incurred in connection with the Company's September 2010 acquisition of ResortQuest. The nine months ended September 30, 2010 also includes (i) $4 million of costs incurred in connection with the Company's March 2010 acquisition of Hoseasons Holdings Ltd. and (ii) $1 million related to costs incurred in connection with the Company's June 2010 acquisition of the TRYP hotel brand.


(c) Includes $8 million and $52 million of a net benefit during the three months ended September 30, 2011 and 2010, respectively, and $12 million and $51 million of a net benefit during the nine months ended September 30, 2011 and 2010, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation.


(d) Includes a $31 million net benefit resulting from a refund of value added taxes.


(e) Represents a non-cash impairment charge 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) Represents a non-cash impairment charge related to a write-down of an international joint venture in the Company's lodging business.


(g) Includes (i) $7 million of costs incurred as a result of a strategic initiative commenced by the Company during 2010 and (ii) a $1 million benefit for the reversal of costs incurred as a result of various strategic initiatives commenced by the Company during 2008.


(h) Includes $4 million of a gain related to the redemption of a preferred stock investment allocated to the Company in connection with our separation from Cendant.


(i) Includes $11 million during both the three and nine months ended September 30, 2010 related to costs incurred for the early repurchase of a portion of the Company's 3.50% convertible notes during the third quarter of 2010. The nine months ended September 30, 2010 also 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.


(j) Includes (i) $12 million of costs incurred for the early repurchase of a portion of the Company's 3.50% convertible notes and (ii) $3 million of interest related to non-U.S. value added tax accruals.


(k) Includes $16 million of interest income related to the refund of value added taxes.


(l) Includes a benefit of $13 million related to the reversal of a tax valuation allowance.

























Table 3












(1 of 3)


Wyndham Worldwide Corporation


OPERATING STATISTICS











































Year

Q1

Q2

Q3

Q4

Full Year


Lodging (a)










Number of Rooms


2011

609,600

612,900

611,200

N/A

N/A





2010

593,300

606,800

605,700

612,700

N/A





2009

588,500

590,200

590,900

597,700

N/A





2008

551,100

551,500

583,400

592,900

N/A













RevPAR


2011

$ 27.71

$ 35.38

$ 39.49

N/A

N/A





2010

$ 25.81

$ 32.25

$ 37.14

$ 29.18

$ 31.14





2009

$ 27.69

$ 32.38

$ 34.81

$ 26.47

$ 30.34





2008

$ 32.21

$ 38.87

$ 41.93

$ 30.03

$ 35.74












Vacation Exchange and Rentals










Average Number of Members (in 000s)


2011

3,766

3,755

3,744

N/A

N/A





2010

3,746

3,741

3,766

3,759

3,753





2009

3,789

3,795

3,781

3,765

3,782





2008

3,632

3,682

3,673

3,693

3,670













Exchange Revenue Per Member


2011

$ 205.64

$ 178.46

$ 172.38

N/A

N/A





2010

$ 201.93

$ 172.20

$ 173.44

$ 162.59

$ 177.53





2009

$ 194.83

$ 174.22

$ 173.90

$ 163.89

$ 176.73





2008

$ 234.05

$ 201.04

$ 193.39

$ 165.99

$ 198.48













Vacation Rental Transactions (in 000s) (b)


2011

398

328

370

N/A

N/A





2010

291

297

322

253

1,163





2009

273

231

264

196

964





2008

269

220

255

191

936













Average Net Price Per Vacation Rental (b)


2011

$ 377.71

$ 549.09

$ 701.81

N/A

N/A





2010

$ 361.17

$ 387.01

$ 500.31

$ 449.12

$ 425.38





2009

$ 353.15

$ 471.74

$ 594.34

$ 499.66

$ 477.38





2008

$ 442.50

$ 541.69

$ 659.93

$ 460.86

$ 528.95












Vacation Ownership










Gross Vacation Ownership Interest (VOI) Sales (in 000s) (c)


2011

$ 319,000

$ 412,000

$ 455,000

N/A

N/A





2010

$ 308,000

$ 371,000

$ 412,000

$ 373,000

$ 1,464,000





2009

$ 280,000

$ 327,000

$ 366,000

$ 343,000

$ 1,315,000





2008

$ 458,000

$ 532,000

$ 566,000

$ 432,000

$ 1,987,000













Tours (d)


2011

137,000

177,000

197,000

N/A

N/A





2010

123,000

163,000

187,000

160,000

634,000





2009

137,000

164,000

173,000

142,000

617,000





2008

255,000

314,000

334,000

240,000

1,143,000













Volume Per Guest (VPG) (d)


2011

$ 2,192

$ 2,227

$ 2,197

N/A

N/A





2010

$ 2,334

$ 2,156

$ 2,081

$ 2,214

$ 2,183





2009

$ 1,866

$ 1,854

$ 1,944

$ 2,210

$ 1,964





2008

$ 1,668

$ 1,583

$ 1,550

$ 1,630

$ 1,602


__________









Note: Full year amounts may not add across due to rounding.


(a) Includes the impact of the acquisitions of Microtel Inns & Suites and Hawthorn Suites (July 2008) and the TRYP hotel brand (June 2010) from the acquisition dates forward. Therefore, the operating statistics are not presented on a comparable basis.


(b) Includes the impact of the acquisitions of Hoseasons (March 2010), ResortQuest (September 2010), James Villa Holidays (November 2010) and a tuck-in acquisition (August 2011) from the acquisition dates forward. Therefore, the operating statistics are not presented on a comparable basis.


(c) Includes gross VOI sales under the Company's Wyndham Asset Affiliate Model (WAAM) beginning in the first quarter of 2010 (see Table 9 for a reconciliation of gross VOI sales to vacation ownership interest sales).


(d) Includes the impact of WAAM related tours beginning in the first quarter of 2010.
























Table 3












(2 of 3)














Wyndham Worldwide Corporation


ADDITIONAL DATA































Year

Q1

Q2

Q3

Q4

Full Year


Lodging (a)










Number of Properties


2011

7,190

7,220

7,190

N/A

N/A





2010

7,090

7,160

7,150

7,210

N/A





2009

6,990

7,020

7,040

7,110

N/A





2008

6,550

6,560

6,970

7,040

N/A












Vacation Ownership










Deferred Revenues (in 000s) (b)


2011

$ -

$ -

$ -

N/A

N/A





2010

$ -

$ -

$ -

$ -

$ -





2009

$ 67,000

$ 37,000

$ 36,000

$ 47,000

$ 187,000





2008

$ (82,000)

$ (5,000)

$ (2,000)

$ 14,000

$ (75,000)













Provision for Loan Losses (in 000s) (c)


2011

$ 79,000

$ 80,000

$ 96,000

N/A

N/A





2010

$ 86,000

$ 87,000

$ 85,000

$ 82,000

$ 340,000





2009

$ 107,000

$ 122,000

$ 117,000

$ 103,000

$ 449,000





2008

$ 82,000

$ 113,000

$ 119,000

$ 136,000

$ 450,000













Sales under WAAM (in 000s) (d)


2011

$ 18,000

$ 19,000

$ 38,000

N/A

N/A





2010

$ 5,000

$ 13,000

$ 20,000

$ 14,000

$ 51,000













WAAM Commission Revenues (in 000s)


2011

$ 10,000

$ 11,000

$ 23,000

N/A

N/A





2010

$ 3,000

$ 8,000

$ 12,000

$ 9,000

$ 31,000


__________









Note: Full year amounts may not add across due to rounding.


(a) Includes the impact of the acquisitions of Microtel Inns & Suites and Hawthorn Suites (July 2008) and the Tryp hotel brand (June 2010) from the acquisition dates forward. Therefore, the operating statistics are not presented on a comparable basis.


(b) Represents the revenue that is deferred under the percentage of completion method of accounting.


(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.


(d) Represents gross VOI sales under the Company's WAAM for which the Company earns commission revenue (WAAM Commission Revenues). The commission revenue earned on these sales is included in service fees and membership revenues on the Consolidated Statements of Income. The Company implemented this sales model during the first quarter of 2010 and, as such, there is no historical data prior to 2010.






















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 under affiliation agreements 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 services and products.




Exchange Revenue Per Member: Represents total annualized revenues 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 for each standard one-week rental.




Average Net Price Per Vacation Rental: Represents the net rental price generated from renting vacation properties to customers and other related rental servicing fees divided by the number of vacation rental transactions.




Vacation Ownership




Gross Vacation Ownership Interest Sales: Represents 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 a comparison eliminating the effects of foreign exchange rate fluctuations between periods.
















Table 4

















Wyndham Worldwide Corporation


REVENUE DETAIL BY REPORTABLE SEGMENT


(In millions)



































2011


2010



Q1

Q2

Q3

Q4

Year


Q1

Q2

Q3

Q4

Year


Lodging













Royalties and Franchise Fees

$ 58

$ 75

$ 85

N/A

N/A


$ 52

$ 69

$ 82

$ 62

$ 265


Marketing, Reservation and Wyndham Rewards Revenues (a)

54

75

94

N/A

N/A


50

65

76

60

251


Hotel Management Reimbursable Revenues (b)

19

19

21

N/A

N/A


21

20

18

18

77


Ancillary Revenues (c)

18

21

22

N/A

N/A


21

24

27

23

95


Total Lodging

149

190

222

N/A

N/A


144

178

203

163

688















Vacation Exchange and Rentals













Exchange Revenues

194

168

161

N/A

N/A


189

161

163

153

666


Rental Revenues

150

180

260

N/A

N/A


105

115

161

114

495


Ancillary Revenues (d)

12

13

15

N/A

N/A


6

5

6

15

32


Total Vacation Exchange and Rentals

356

361

436

N/A

N/A


300

281

330

282

1,193















Vacation Ownership













Vacation Ownership Interest Sales

222

313

320

N/A

N/A


217

271

308

276

1,072


Consumer Financing

102

103

105

N/A

N/A


105

106

107

107

425


Property Management Fees

110

108

105

N/A

N/A


100

100

104

101

405


WAAM Commissions

10

11

23

N/A

N/A


3

8

12

8

31


Ancillary Revenues (e)

6

6

6

N/A

N/A


19

20

2

5

46


Total Vacation Ownership

450

541

559

N/A

N/A


444

505

533

497

1,979


Total Reportable Segments

$ 955

$ 1,092

$ 1,217

N/A

N/A


$ 888

$ 964

$ 1,066

$ 942

$ 3,860





























2009


2008



Q1

Q2

Q3

Q4

Year


Q1

Q2

Q3

Q4

Year


Lodging













Royalties and Franchise Fees

$ 57

$ 68

$ 72

$ 57

$ 254


$ 64

$ 78

$ 88

$ 66

$ 297


Marketing, Reservation and Wyndham Rewards Revenues (a)

54

66

73

53

246


60

75

84

61

280


Hotel Management Reimbursable Revenues (b)

22

23

21

19

85


27

26

25

21

100


Ancillary Revenues (c)

21

17

17

20

75


19

21

16

22

76


Total Lodging

154

174

183

149

660


170

200

213

170

753















Vacation Exchange and Rentals













Exchange Revenues

185

165

164

154

668


213

185

178

152

728


Rental Revenues

96

109

157

98

460


119

119

169

88

495


Ancillary Revenues (d)

6

6

6

6

24


9

10

7

10

36


Total Vacation Exchange and Rentals

287

280

327

258

1,152


341

314

354

250

1,259















Vacation Ownership













Vacation Ownership Interest Sales

239

242

285

287

1,053


294

414

446

309

1,463


Consumer Financing

109

109

108

109

435


99

104

111

112

426


Property Management Fees

91

94

96

95

376


85

84

89

89

346


Ancillary Revenues (e)

23

22

19

17

81


26

19

15

(18)

43


Total Vacation Ownership

462

467

508

508

1,945


504

621

661

492

2,278


Total Reportable Segments

$ 903

$ 921

$ 1,018

$ 915

$ 3,757


$ 1,015

$ 1,135

$ 1,228

$ 912

$ 4,290

















__________


Note: Full year amounts may not add 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 and homeowners.


(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 operations.


















Table 5


Wyndham Worldwide Corporation


SCHEDULE OF DEBT


(In millions)

























September 30,
2011


June 30,
2011


March 31,
2011


December 31,
2010


September 30,
2010













Securitized vacation ownership debt (a)











Term notes

$ 1,512


$ 1,446


$ 1,666


$ 1,498


$ 1,400


Bank conduit facility (b)

218


242


148


152


215


Securitized vacation ownership debt (c)

1,730


1,688


1,814


1,650


1,615


Less: Current portion of securitized vacation ownership debt

179


190


216


223


187


Long-term securitized vacation ownership debt

$ 1,551


$ 1,498


$ 1,598


$ 1,427


$ 1,428













Debt:











Revolving credit facility (due July 2016) (d)

$ 169


$ 107


$ 5


$ 154


$ 26


6.00% senior unsecured notes (due December 2016) (e)

812


803


797


798


798


9.875% senior unsecured notes (due May 2014) (f)

243


242


241


241


240


3.50% convertible notes (due May 2012) (g)

27


32


41


266


289


7.375% senior unsecured notes (due March 2020) (h)

247


247


247


247


247


5.75% senior unsecured notes (due February 2018) (i)

247


247


247


247


247


5.625% senior unsecured notes (due March 2021) (j)

245


245


245


-


-


Vacation rentals capital leases

108


120


120


115


120


Other

1


1


28


26


34


Total debt

2,099


2,044


1,971


2,094


2,001


Less: Current portion of debt

37


43


12


11


32


Long-term debt

$ 2,062


$ 2,001


$ 1,959


$ 2,083


$ 1,969


__________


(a) The Company's vacation ownership contract receivables are securitized through bankruptcy-remote special purpose entities ("SPE") that are consolidated within our financial statements. These bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to the Company's creditors and legally are not the Company's assets. Additionally, the creditors of these SPEs have no recourse to the Company for principal and interest.


(b) Represents a non-recourse vacation ownership bank conduit facility with a term through June 2013 and borrowing capacity of $600 million. As of September 30, 2011, this facility had remaining borrowing capacity of $382 million.


(c) This debt is collateralized by $2,502 million, $2,672 million, $2,778 million, $2,865 million and $2,874 million of underlying vacation ownership contract receivables and related assets as of September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively.


(d) Represents a $1.0 billion revolving credit facility that expires on July 15, 2016. As of September 30, 2011, the Company had $11 million of outstanding letters of credit and a remaining borrowing capacity of $820 million.


(e) Represents senior unsecured notes issued by the Company during December 2006. The balance as of September 30, 2011 represents $800 million aggregate principal less $2 million of unamortized discount, plus $14 million of unamortized gains from the settlement of a derivative.


(f) Represents senior unsecured notes issued by the Company during May 2009. The balance as of September 30, 2011 represents $250 million aggregate principal less $7 million of unamortized discount.


(g) Represents convertible notes issued by the Company during May 2009, which includes debt principal, less unamortized discount, and a liability related to a bifurcated conversion feature. During the third and fourth quarters of 2010, the Company repurchased a portion of these notes. During the nine months ended September 30, 2011, the Company repurchased a portion of these notes, primarily through the completion of a cash tender offer. The following table details the components of the convertible notes:





September 30,
2011


June 30,
2011


March 31,
2011


December 31,
2010


September 30,
2010













Debt principal

$ 12


$ 12


$ 17


$ 116


$ 138


Unamortized discount

(1)


(1)


(1)


(12)


(17)


Debt less discount

11


11


16


104


121


Fair value of conversion feature (*)

16


21


25


162


168


Convertible notes

$ 27


$ 32


$ 41


$ 266


$ 289


__________











(*) The Company also has an asset with a fair value equal to the conversion feature, which represents cash-settled call options that the Company purchased concurrent with the issuance of the convertible notes.






(h) Represents senior unsecured notes issued by the Company during February 2010. The balance as of September 30, 2011 represents $250 million aggregate principal less $3 million of unamortized discount.


(i) Represents senior unsecured notes issued by the Company during September 2010. The balance as of September 30, 2011 represents $250 million aggregate principal less $3 million of unamortized discount.


(j) Represents senior unsecured notes issued by the Company during March 2011. The balance as of September 30, 2011 represents $250 million aggregate principal less $5 million of unamortized discount.














Table 6


(1 of 2)


Wyndham Worldwide Corporation


BRAND SYSTEM DETAILS



















As of and For the Three Months Ended September 30, 2011


Brand

Number of
Properties

Number of Rooms

Average
Occupancy Rate

Average Daily
Rate (ADR)

Average Revenue
Per Available
Room (RevPAR)









Lodging







Wyndham Hotels and Resorts

98

26,548

62.3%

$106.49

$66.34









TRYP by Wyndham

93

13,456

67.0%

$102.53

$68.73









Wingate by Wyndham

166

15,234

64.7%

$83.02

$53.68









Hawthorn Suites by Wyndham

74

7,047

66.7%

$75.65

$50.48









Ramada

848

114,377

56.9%

$78.49

$44.64









Baymont

257

21,464

54.6%

$64.72

$35.33









Days Inn

1,857

149,165

54.5%

$65.47

$35.68









Super 8

2,241

141,272

60.4%

$58.35

$35.24









Howard Johnson

453

45,016

52.4%

$64.10

$33.57









Travelodge

436

32,563

54.7%

$71.30

$39.00









Microtel Inns & Suites

317

22,601

59.4%

$62.74

$37.23









Knights Inn

348

21,362

43.0%

$44.84

$19.29









Dream

5

990

78.7%

$175.65

$138.32









Night

1

72

94.8%

$214.38

$203.31









Total Lodging

7,194

611,167

57.0%

$69.34

$39.49









Vacation Ownership







Wyndham Vacation Ownership resorts

162

20,803

N/A

N/A

N/A









Total Wyndham Worldwide

7,356

631,970




















As of and For the Three Months Ended September 30, 2010


Brand

Number of
Properties

Number of Rooms

Average
Occupancy Rate

Average Daily
Rate (ADR)

Average Revenue
Per Available
Room (RevPAR)









Lodging







Wyndham Hotels and Resorts

99

27,753

57.4%

$107.11

$61.46









TRYP by Wyndham

92

13,236

63.2%

$83.93

$53.03









Wingate by Wyndham

165

15,097

63.1%

$81.19

$51.22









Hawthorn Suites by Wyndham

78

7,451

61.7%

$75.83

$46.77









Ramada

894

117,842

55.0%

$73.43

$40.38









Baymont

245

20,479

53.3%

$63.36

$33.78









Days Inn

1,859

148,155

53.4%

$64.03

$34.19









Super 8

2,156

134,827

58.3%

$59.40

$34.61









Howard Johnson

474

45,735

52.6%

$63.19

$33.26









Travelodge

438

32,377

54.1%

$68.24

$36.89









Microtel Inns & Suites

319

22,760

57.1%

$60.12

$34.34









Knights Inn

331

19,597

43.2%

$46.42

$20.06









Other

2

404

N/A

N/A

N/A









Total Lodging

7,152

605,713

55.3%

$67.16

$37.14









Vacation Ownership







Wyndham Vacation Ownership resorts

160

20,569

N/A

N/A

N/A









Total Wyndham Worldwide

7,312

626,282





_______________







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.











Table 6


(2 of 2)


Wyndham Worldwide Corporation


BRAND SYSTEM DETAILS

















As of and For the Nine Months Ended September 30, 2011


Brand

Number of
Properties

Number of Rooms

Average
Occupancy Rate

Average Daily
Rate (ADR)

Average Revenue
Per Available
Room (RevPAR)









Lodging







Wyndham Hotels and Resorts

98

26,548

59.5%

$107.74

$64.14









TRYP by Wyndham

93

13,456

60.7%

$105.13

$63.85









Wingate by Wyndham

166

15,234

61.1%

$81.27

$49.68









Hawthorn Suites by Wyndham

74

7,047

62.7%

$75.32

$47.26









Ramada

848

114,377

52.1%

$75.97

$39.58









Baymont

257

21,464

49.0%

$62.41

$30.59









Days Inn

1,857

149,165

48.4%

$62.12

$30.09









Super 8

2,241

141,272

53.1%

$55.31

$29.36









Howard Johnson

453

45,016

47.6%

$61.12

$29.07









Travelodge

436

32,563

48.2%

$66.22

$31.94









Microtel Inns & Suites

317

22,601

53.9%

$59.21

$31.90









Knights Inn

348

21,362

39.1%

$42.98

$16.79









Dream

5

990

75.5%

$174.99

$132.10









Night

1

72

93.8%

$232.89

$218.53









Total Lodging

7,194

611,167

51.2%

$66.85

$34.25









Vacation Ownership







Wyndham Vacation Ownership resorts

162

20,803

N/A

N/A

N/A









Total Wyndham Worldwide

7,356

631,970






















As of and For the Nine Months Ended September 30, 2010


Brand

Number of
Properties

Number of Rooms

Average
Occupancy Rate

Average Daily
Rate (ADR)

Average Revenue
Per Available
Room (RevPAR)









Lodging







Wyndham Hotels and Resorts

99

27,753

56.1%

$109.35

$61.32









TRYP by Wyndham

92

13,236

63.2%

$83.93

$53.03









Wingate by Wyndham

165

15,097

58.8%

$79.67

$46.85









Hawthorn Suites by Wyndham

78

7,451

56.1%

$76.95

$43.14









Ramada

894

117,842

49.9%

$72.73

$36.26









Baymont

245

20,479

48.1%

$61.03

$29.37









Days Inn

1,859

148,155

46.9%

$61.16

$28.69









Super 8

2,156

134,827

50.4%

$56.48

$28.50









Howard Johnson

474

45,735

46.1%

$60.85

$28.04









Travelodge

438

32,377

45.9%

$64.36

$29.57









Microtel Inns & Suites

319

22,760

51.1%

$57.59

$29.41









Knights Inn

331

19,597

38.0%

$42.67

$16.22









Other

2

404

N/A

N/A

N/A









Total Lodging

7,152

605,713

49.0%

$64.98

$31.81









Vacation Ownership







Wyndham Vacation Ownership resorts

160

20,569

N/A

N/A

N/A









Total Wyndham Worldwide

7,312

626,282





_______________







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.











Table 7


(1 of 2)


Wyndham Worldwide


NON-GAAP RECONCILIATION


(In millions)





























Three months ended March 31, 2011


Net Revenues


Reported
EBITDA

Legacy
Adjustments (b)

Asset
Impairment (c)

Restructuring
Costs


VAT
Adjustments (e)

CTA
Writeoff (f)

Adjusted
EBITDA




Lodging


$ 149


$ 27

$ -

$ 13

$ -


$ -

$ -

$ 40


Vacation Exchange and Rentals


356


93

-

-

-


-

-

93


Vacation Ownership


450


97

-

-

(1)

(d)

-

-

96


Total Reportable Segments


955


217

-

13

(1)


-

-

229


Corporate and Other (a)


(3)


(14)

(11)

-

-


-

-

(25)


Total Company


$ 952


$ 203

$ (11)

$ 13

$ (1)


$ -

$ -

$ 204




























Three months ended June 30, 2011













Lodging


$ 190


$ 66

$ -

$ -

$ -


$ -

$ -

$ 66


Vacation Exchange and Rentals


361


106

-

-

7

(g)

(31)

-

82


Vacation Ownership


541


130

-

-

-


-

-

130


Total Reportable Segments


1,092


302

-

-

7


(31)

-

278


Corporate and Other (a)


(2)


(26)

3

-

-


-

-

(23)


Total Company


$ 1,090


$ 276

$ 3

$ -

$ 7


$ (31)

$ -

$ 255















Three months ended September 30, 2011













Lodging


$ 222


$ 67

$ -

$ -

$ -


$ -

$ -

$ 67


Vacation Exchange and Rentals


436


131

-

-

-


-

4

135


Vacation Ownership


559


149

-

-

-


-

-

149


Total Reportable Segments


1,217


347

-

-

-


-

4

351


Corporate and Other (a)


(5)


(18)

(8)

-

-


-

-

(26)


Total Company


$ 1,212


$ 329

$ (8)