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)
|
$ -
|
$ -
|
|
$ -
|
$ 4
|
$ 325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________
|
|
(a)
Includes the elimination of transactions between segments.
|
|
(b)
Relates to the net expense/(benefit) from the resolution of and
adjustment to certain contingent liabilities and assets resulting from
our separation from Cendant.
|
|
(c)
Relates to a non-cash impairment charge related to a write-down of an
international joint venture in the Company's lodging business.
|
|
(d)
Relates to the reversal of costs incurred as a result of various
strategic initiatives commenced by the Company during 2008.
|
|
(e)
Relates to a net benefit resulting from a refund of value added taxes.
|
|
(f)
Relates to the write-off of foreign exchange translation adjustments
associated with the liquidation of a foreign entity.
|
|
(g)
Relates to costs incurred as a result of a strategic initiative
commenced by the Company during 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 7
|
|
(2 of
2)
|
|
Wyndham
Worldwide
|
|
NON-GAAP
RECONCILIATIONS
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31, 2010
|
|
Net
Revenues
|
|
Reported
EBITDA
|
Acquisition
Costs (b)
|
Legacy
Adjustments (c)
|
Restructuring
Costs (d)
|
Adjusted
EBITDA
|
|
Lodging
|
|
$ 144
|
|
$ 33
|
$ -
|
$ -
|
$ -
|
$ 33
|
|
Vacation
Exchange and Rentals
|
|
300
|
|
80
|
4
|
-
|
-
|
84
|
|
Vacation
Ownership
|
|
444
|
|
82
|
-
|
-
|
-
|
82
|
|
Total
Reportable Segments
|
|
888
|
|
195
|
4
|
-
|
-
|
199
|
|
Corporate
and Other (a)
|
|
(2)
|
|
(20)
|
-
|
2
|
-
|
(18)
|
|
Total
Company
|
|
$ 886
|
|
$ 175
|
$ 4
|
$ 2
|
$ -
|
$ 181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30, 2010
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 178
|
|
$ 49
|
$ 1
|
$ -
|
$ -
|
$ 50
|
|
Vacation
Exchange and Rentals
|
|
281
|
|
78
|
-
|
-
|
-
|
78
|
|
Vacation
Ownership
|
|
505
|
|
104
|
-
|
-
|
-
|
104
|
|
Total
Reportable Segments
|
|
964
|
|
231
|
1
|
-
|
-
|
232
|
|
Corporate
and Other (a)
|
|
(1)
|
|
(14)
|
-
|
-
|
-
|
(14)
|
|
Total
Company
|
|
$ 963
|
|
$ 217
|
$ 1
|
$ -
|
$ -
|
$ 218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30, 2010
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 203
|
|
$ 67
|
$ -
|
$ -
|
$ -
|
$ 67
|
|
Vacation
Exchange and Rentals
|
|
330
|
|
103
|
1
|
-
|
-
|
104
|
|
Vacation
Ownership
|
|
533
|
|
123
|
-
|
-
|
-
|
123
|
|
Total
Reportable Segments
|
|
1,066
|
|
293
|
1
|
-
|
-
|
294
|
|
Corporate
and Other (a)
|
|
(1)
|
|
30
|
-
|
(52)
|
-
|
(22)
|
|
Total
Company
|
|
$ 1,065
|
|
$ 323
|
$ 1
|
$ (52)
|
$ -
|
$ 272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 163
|
|
$ 40
|
$ -
|
$ -
|
$ -
|
$ 40
|
|
Vacation
Exchange and Rentals
|
|
282
|
|
32
|
1
|
-
|
9
|
42
|
|
Vacation
Ownership
|
|
497
|
|
131
|
-
|
-
|
-
|
131
|
|
Total
Reportable Segments
|
|
942
|
|
203
|
1
|
-
|
9
|
213
|
|
Corporate
and Other (a)
|
|
(5)
|
|
(20)
|
-
|
(3)
|
-
|
(23)
|
|
Total
Company
|
|
$ 937
|
|
$ 183
|
$ 1
|
$ (3)
|
$ 9
|
$ 190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 688
|
|
$ 189
|
$ 1
|
$ -
|
$ -
|
$ 190
|
|
Vacation
Exchange and Rentals
|
|
1,193
|
|
293
|
6
|
-
|
9
|
308
|
|
Vacation
Ownership
|
|
1,979
|
|
440
|
-
|
-
|
-
|
440
|
|
Total
Reportable Segments
|
|
3,860
|
|
922
|
7
|
-
|
9
|
938
|
|
Corporate
and Other (a)
|
|
(9)
|
|
(24)
|
-
|
(54)
|
-
|
(78)
|
|
Total
Company
|
|
$ 3,851
|
|
$ 898
|
$ 7
|
$ (54)
|
$ 9
|
$ 860
|
|
________________
|
|
|
|
|
|
|
|
|
|
Note:
Amounts may not add across due to rounding.
|
|
(a)
Includes the elimination of transactions between segments.
|
|
(b)
Relates to costs incurred in connection with the Company's acquisitions
of Hoseasons during March 2010, the TRYP hotel brand during June 2010,
ResortQuest during September 2010 and James Villa Holidays during
November 2010.
|
|
(c)
Relates to the net expense/(benefit) from the resolution of and
adjustment to certain contingent liabilities and assets resulting from
our separation from Cendant.
|
|
(d)
Relates to costs incurred as a result of a strategic initiative
commenced by the Company during 2010.
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
(1 of
4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
Valuation
|
|
Legacy
|
|
VAT
|
|
|
|
|
|
|
|
As
Reported
|
|
Allowance
|
|
Adjustments
|
|
Adjustments
|
|
CTA
Writeoff
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 584
|
|
|
|
|
|
|
|
|
|
$ 584
|
|
Vacation
ownership interest sales
|
|
320
|
|
|
|
|
|
|
|
|
|
320
|
|
Franchise
fees
|
|
160
|
|
|
|
|
|
|
|
|
|
160
|
|
Consumer
financing
|
|
105
|
|
|
|
|
|
|
|
|
|
105
|
|
Other
|
|
43
|
|
|
|
|
|
|
|
|
|
43
|
|
Net
revenues
|
|
1,212
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
490
|
|
|
|
|
|
|
|
(4)
|
(d)
|
486
|
|
Cost
of vacation ownership interests
|
|
35
|
|
|
|
|
|
|
|
|
|
35
|
|
Consumer
financing interest
|
|
21
|
|
|
|
|
|
|
|
|
|
21
|
|
Marketing
and reservation
|
|
182
|
|
|
|
|
|
|
|
|
|
182
|
|
General
and administrative
|
|
157
|
|
|
|
8
|
(b)
|
|
|
|
|
165
|
|
Restructuring
|
|
-
|
|
|
|
|
|
|
|
|
|
-
|
|
Depreciation
and amortization
|
|
43
|
|
|
|
|
|
|
|
|
|
43
|
|
Total
expenses
|
|
928
|
|
-
|
|
8
|
|
-
|
|
(4)
|
|
932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
284
|
|
-
|
|
(8)
|
|
-
|
|
4
|
|
280
|
|
Other
income, net
|
|
(2)
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Interest
expense
|
|
34
|
|
|
|
|
|
|
|
|
|
34
|
|
Interest
income
|
|
(19)
|
|
|
|
|
|
16
|
(c)
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
271
|
|
-
|
|
(8)
|
|
(16)
|
|
4
|
|
251
|
|
Provision
for income taxes
|
|
96
|
|
13
|
(a)
|
(2)
|
(e)
|
(9)
|
(e)
|
-
|
(e)
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 175
|
|
$ (13)
|
|
$ (6)
|
|
$ (7)
|
|
$ 4
|
|
$ 153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 1.10
|
|
$
(0.08)
|
|
$
(0.03)
|
|
$
(0.05)
|
|
$ 0.02
|
|
$ 0.96
|
|
Diluted
|
|
1.08
|
|
(0.08)
|
|
(0.03)
|
|
(0.04)
|
|
0.02
|
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
159
|
|
159
|
|
159
|
|
159
|
|
159
|
|
159
|
|
Diluted
|
|
162
|
|
162
|
|
162
|
|
162
|
|
162
|
|
162
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add across due to rounding.
|
|
(a)
Relates to the reversal of a tax valuation allowance.
|
|
(b)
Relates to the net benefit from the resolution of and adjustment to
certain contingent liabilities and assets resulting from our separation
from Cendant.
|
|
(c)
Relates to interest income associated with a refund of value added
taxes.
|
|
(d)
Relates to the write-off of foreign exchange translation adjustments
associated with the liquidation of a foreign entity.
|
|
(e)
Relates to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
(2 of
4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Early
Extinguishment of
|
|
Tax
Valuation
|
|
Legacy
|
|
Asset
|
|
Restructuring
|
|
VAT
|
|
|
|
|
|
|
|
As
Reported
|
|
Debt
|
|
Allowance
|
|
Adjustments
|
|
Impairment
|
|
Costs
|
|
Adjustments
|
|
CTA
Writeoff
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 1,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,579
|
|
Vacation
ownership interest sales
|
|
855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
855
|
|
Franchise
fees
|
|
395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
395
|
|
Consumer
financing
|
|
310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
310
|
|
Other
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114
|
|
Net
revenues
|
|
3,253
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
1,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
(j)
|
1,354
|
|
Cost
of vacation ownership interests
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
Consumer
financing interest
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67
|
|
Marketing
and reservation
|
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
472
|
|
General
and administrative
|
|
422
|
|
|
|
|
|
12
|
(c)
|
|
|
|
|
31
|
(g)
|
|
|
465
|
|
Asset
impairment
|
|
13
|
|
|
|
|
|
|
|
(13)
|
(e)
|
|
|
|
|
|
|
-
|
|
Restructuring
|
|
6
|
|
|
|
|
|
|
|
|
|
(6)
|
(f)
|
|
|
|
|
-
|
|
Depreciation
and amortization
|
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
133
|
|
Total
expenses
|
|
2,586
|
|
-
|
|
-
|
|
12
|
|
(13)
|
|
(6)
|
|
31
|
|
(4)
|
|
2,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
667
|
|
-
|
|
-
|
|
(12)
|
|
13
|
|
6
|
|
(31)
|
|
4
|
|
647
|
|
Other
income, net
|
|
(9)
|
|
|
|
|
|
4
|
(d)
|
|
|
|
|
|
|
|
|
(5)
|
|
Interest
expense
|
|
115
|
|
(12)
|
(a)
|
|
|
|
|
|
|
|
|
(3)
|
(h)
|
|
|
100
|
|
Interest
income
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
16
|
(i)
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
583
|
|
12
|
|
-
|
|
(16)
|
|
13
|
|
6
|
|
(44)
|
|
4
|
|
558
|
|
Provision
for income taxes
|
|
222
|
|
5
|
(k)
|
13
|
(b)
|
(5)
|
(k)
|
5
|
(k)
|
2
|
(k)
|
(24)
|
(k)
|
-
|
(k)
|
218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 361
|
|
$ 7
|
|
$ (13)
|
|
$ (11)
|
|
$ 8
|
|
$ 4
|
|
$ (20)
|
|
$ 4
|
|
$ 340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 2.17
|
|
$ 0.04
|
|
$
(0.08)
|
|
$
(0.06)
|
|
$ 0.05
|
|
$ 0.03
|
|
$
(0.12)
|
|
$ 0.02
|
|
$ 2.05
|
|
Diluted
|
|
2.12
|
|
0.04
|
|
(0.08)
|
|
(0.06)
|
|
0.05
|
|
0.03
|
|
(0.12)
|
|
0.02
|
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
166
|
|
Diluted
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Relates to costs incurred for the early repurchase of a portion of the
Company's 3.50% convertible notes during the first half of 2011.
|
|
(b)
Relates to the reversal of a tax valuation allowance.
|
|
(c)
Relates to the net benefit from the resolution of and adjustment to
certain contingent liabilities and assets resulting from our separation
from Cendant.
|
|
(d)
Relates to a gain on the redemption of a preferred stock investment
allocated to the Company in connection with our separation.
|
|
(e)
Relates to a non-cash impairment charge related to a write-down of an
international joint venture in the Company's lodging business.
|
|
(f)
Primarily relates to costs incurred as a result of a strategic
initiative commenced by the Company during 2010.
|
|
(g)
Relates to a net benefit resulting from a refund of value added taxes.
|
|
(h)
Relates to interest on value added tax accruals.
|
|
(i)
Relates to interest income associated with a refund of value added
taxes.
|
|
(j)
Relates to the write-off of foreign exchange translation adjustments
associated with the liquidation of a foreign entity.
|
|
(k)
Relates to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
(3 of
4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Early
Extinguishment of
|
|
|
|
Legacy
|
|
|
|
|
|
As
Reported
|
|
Debt
|
|
Acquisition
Costs
|
|
Adjustments
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 464
|
|
|
|
|
|
|
|
$ 464
|
|
Vacation
ownership interest sales
|
|
308
|
|
|
|
|
|
|
|
308
|
|
Franchise
fees
|
|
142
|
|
|
|
|
|
|
|
142
|
|
Consumer
financing
|
|
107
|
|
|
|
|
|
|
|
107
|
|
Other
|
|
44
|
|
|
|
|
|
|
|
44
|
|
Net
revenues
|
|
1,065
|
|
-
|
|
-
|
|
-
|
|
1,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
410
|
|
|
|
(1)
|
(b)
|
|
|
409
|
|
Cost
of vacation ownership interests
|
|
52
|
|
|
|
|
|
|
|
52
|
|
Consumer
financing interest
|
|
27
|
|
|
|
|
|
|
|
27
|
|
Marketing
and reservation
|
|
149
|
|
|
|
|
|
|
|
149
|
|
General
and administrative
|
|
101
|
|
|
|
|
|
52
|
(c)
|
153
|
|
Asset
impairment
|
|
4
|
|
|
|
|
|
|
|
4
|
|
Depreciation
and amortization
|
|
43
|
|
|
|
|
|
|
|
43
|
|
Total
expenses
|
|
786
|
|
-
|
|
(1)
|
|
52
|
|
837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
279
|
|
|
|
1
|
|
(52)
|
|
228
|
|
Other
income, net
|
|
(1)
|
|
|
|
|
|
|
|
(1)
|
|
Interest
expense
|
|
47
|
|
(11)
|
(a)
|
|
|
|
|
36
|
|
Interest
income
|
|
(2)
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
235
|
|
11
|
|
1
|
|
(52)
|
|
195
|
|
Provision
for income taxes
|
|
79
|
|
5
|
(d)
|
-
|
(d)
|
(14)
|
(d)
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 156
|
|
$ 6
|
|
$ 1
|
|
$ (38)
|
|
$ 125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.88
|
|
$ 0.04
|
|
$ 0.01
|
|
$
(0.22)
|
|
$ 0.71
|
|
Diluted
|
|
0.84
|
|
0.04
|
|
0.01
|
|
(0.21)
|
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
177
|
|
177
|
|
177
|
|
177
|
|
177
|
|
Diluted
|
|
184
|
|
184
|
|
184
|
|
184
|
|
184
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add across due to rounding.
|
|
(a)
Relates to costs incurred for the early repurchase of a portion of the
Company's 3.50% convertible notes during third quarter of 2010.
|
|
(b)
Relates to costs incurred in connection with the Company's acquisition
of ResortQuest during September 2010.
|
|
(c)
Relates to the net benefit from the resolution of and adjustment to
certain contingent liabilities and assets primarily related to the
accrual that was no longer needed for outstanding Cendant contingent
tax liabilities since Cendant and the IRS agreed to settle the IRS
examination of Cendant's taxable years 2003 through 2006 on July 15,
2010.
|
|
(d)
Relates to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
|
|
(4 of
4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
|
NON-GAAP
FINANCIAL INFORMATION
|
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Early
Extinguishment of
|
|
|
|
Legacy
|
|
|
|
|
|
As
Reported
|
|
Debt
|
|
Acquisition
Costs
|
|
Adjustments
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 1,298
|
|
|
|
|
|
|
|
$ 1,298
|
|
Vacation
ownership interest sales
|
|
796
|
|
|
|
|
|
|
|
796
|
|
Franchise
fees
|
|
353
|
|
|
|
|
|
|
|
353
|
|
Consumer
financing
|
|
318
|
|
|
|
|
|
|
|
318
|
|
Other
|
|
149
|
|
|
|
|
|
|
|
149
|
|
Net
revenues
|
|
2,914
|
|
-
|
|
-
|
|
-
|
|
2,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
1,179
|
|
|
|
(6)
|
(b)
|
|
|
1,173
|
|
Cost
of vacation ownership interests
|
|
138
|
|
|
|
|
|
|
|
138
|
|
Consumer
financing interest
|
|
80
|
|
|
|
|
|
|
|
80
|
|
Marketing
and reservation
|
|
410
|
|
|
|
|
|
|
|
410
|
|
General
and administrative
|
|
394
|
|
|
|
|
|
51
|
(c)
|
445
|
|
Asset
impairment
|
|
4
|
|
|
|
|
|
|
|
4
|
|
Depreciation
and amortization
|
|
128
|
|
|
|
|
|
|
|
128
|
|
Total
expenses
|
|
2,333
|
|
-
|
|
(6)
|
|
51
|
|
2,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
581
|
|
-
|
|
6
|
|
(51)
|
|
536
|
|
Other
income, net
|
|
(6)
|
|
|
|
-
|
|
|
|
(6)
|
|
Interest
expense
|
|
133
|
|
(27)
|
(a)
|
|
|
|
|
106
|
|
Interest
income
|
|
(3)
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
457
|
|
27
|
|
6
|
|
(51)
|
|
439
|
|
Provision
for income taxes
|
|
157
|
|
11
|
(d)
|
1
|
(d)
|
(15)
|
(d)
|
154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 300
|
|
$ 16
|
|
$ 5
|
|
$ (36)
|
|
$ 285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 1.68
|
|
$ 0.09
|
|
$ 0.03
|
|
$
(0.21)
|
|
$ 1.59
|
|
Diluted
|
|
1.62
|
|
0.09
|
|
0.03
|
|
(0.20)
|
|
1.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
179
|
|
179
|
|
179
|
|
179
|
|
179
|
|
Diluted
|
|
186
|
|
186
|
|
186
|
|
186
|
|
186
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add across 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 and the early repurchase of a portion of the Company's 3.50%
convertible notes during the third quarter of 2010.
|
|
(b)
Relates to costs incurred in connection with the Company's acquisitions
of Hoseasons Holdings Ltd. during March 2010, the Tryp hotel brand
during June 2010 and ResortQuest during September 2010.
|
|
(c)
Relates to the net benefit from the resolution of and adjustment to
certain contingent liabilities and assets primarily related to the
accrual that was no longer needed for outstanding Cendant contingent
tax liabilities since Cendant and the IRS agreed to settle the IRS
examination of Cendant's taxable years 2003 through 2006 on July 15,
2010.
|
|
(d)
Relates to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 less capital expenditures, equity investments and
development advances and 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 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:
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
|
$ 860
|
|
$ 528
|
|
|
|
Less:
Property and equipment additions
|
|
(153)
|
|
(100)
|
|
|
|
Less:
Equity investments and development advances
|
|
(8)
|
|
(9)
|
|
|
|
Plus:
Cash payments related to contingent IRS tax liabilities
|
|
-
|
|
145
|
|
|
|
Free
cash flow
|
|
$ 699
|
|
$ 564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
2011
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 319
|
$ 412
|
$ 455
|
N/A
|
N/A
|
|
Less:
Sales under the WAAM
|
|
(18)
|
(19)
|
(38)
|
N/A
|
N/A
|
|
Gross
VOI sales, net of WAAM sales
|
|
302
|
393
|
417
|
N/A
|
N/A
|
|
Less:
Loan loss provision
|
|
(79)
|
(80)
|
(96)
|
N/A
|
N/A
|
|
Vacation
ownership interest sales
|
|
$ 222
|
$ 313
|
$ 320
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 308
|
$ 371
|
$ 412
|
$ 373
|
$ 1,464
|
|
Less:
Sales under the WAAM
|
|
(5)
|
(13)
|
(20)
|
(14)
|
(51)
|
|
Gross
VOI sales, net of WAAM sales
|
|
303
|
358
|
392
|
359
|
1,413
|
|
Less:
Loan loss provision
|
|
(86)
|
(87)
|
(85)
|
(82)
|
(340)
|
|
Vacation
ownership interest sales
|
|
$ 217
|
$ 271
|
$ 308
|
$ 276
|
$ 1,072
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 280
|
$ 327
|
$ 366
|
$ 343
|
$ 1,315
|
|
Plus:
Net effect of percentage-of-completion accounting
|
|
67
|
37
|
36
|
47
|
187
|
|
Less:
Loan loss provision
|
|
(107)
|
(122)
|
(117)
|
(103)
|
(449)
|
|
Vacation
ownership interest sales
|
|
$ 239
|
$ 242
|
$ 285
|
$ 287
|
$ 1,053
|
|
|
|
|
|
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 458
|
$ 532
|
$ 566
|
$ 432
|
$ 1,987
|
|
Plus/(less):
Net effect of percentage-of-completion accounting
|
|
(82)
|
(5)
|
(2)
|
14
|
(75)
|
|
Less:
Loan loss provision
|
|
(82)
|
(113)
|
(119)
|
(136)
|
(450)
|
|
Vacation
ownership interest sales
|
|
$ 294
|
$ 414
|
$ 446
|
$ 309
|
$ 1,463
|
|
_____________
|
|
Note:
Amounts may not add due to rounding.
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
2011
|
|
$ 18
|
$ 18
|
$ 21
|
N/A
|
N/A
|
|
2010
|
|
$ 20
|
$ 20
|
$ 23
|
$ 17
|
$ 80
|
|
2009
|
|
$ 24
|
$ 23
|
$ 29
|
$ 28
|
$ 104
|
|
2008
|
|
$ 33
|
$ 35
|
$ 49
|
$ 40
|
$ 156
|
|
_____________
|
|
|
|
|
|
|
|
Note:
Amounts may not add across due to rounding.
|
|