PARSIPPANY, N.J., April 25, 2012 -- Wyndham Worldwide
Corporation (NYSE:WYN) today announced results for the three months
ended March 31, 2012.
Highlights:
- First quarter adjusted diluted earnings per share (EPS) was
$0.60, compared with $0.44 in the first quarter of 2011, an
increase of 36%. First quarter 2012 reported diluted EPS was $0.21, a decrease of 49% from the same period
in 2011, reflecting early extinguishment charges related to $650 million of debt tender offers.
- First quarter Adjusted EBITDA increased 8% to $220 million.
- Free cash flow increased to $193
million for the quarter ended March 31,
2012, compared with $185 million
from the same period in 2011.
- During the quarter, the Company repurchased 3.6 million
shares of its common stock for $150 million
at an average price of $42.05.
- The Company announced today that its Board of Directors
approved a $750 million increase to the
share repurchase authorization.
"First quarter results were strong, reflecting the power of
our fee-for-service business model across economic cycles, continuing
innovation throughout the Company, robust free cash flow and
disciplined capital allocation," said Stephen
P. Holmes, chairman and CEO, Wyndham
Worldwide. "Furthermore, consumers are traveling. Our Vacation
Ownership and Hotel businesses are showing great momentum and our
Exchange and Rentals business proved resilient despite the difficult
economic climate in Europe. As always, we will continue to focus on
driving operational improvements in 2012 and beyond."
FIRST QUARTER 2012 OPERATING RESULTS
First quarter revenues were $1.0
billion, an increase of 9% from the prior year period. The
increase reflects growth in all of our business units led by the
Company's Lodging and Vacation Ownership businesses.
For the first quarter of 2012, adjusted net income was $90 million, or $0.60
per diluted share, compared with $79 million,
or $0.44 per diluted share for the same
period in 2011. The increase in adjusted net income primarily reflects
stronger operating results in our Lodging and Vacation Ownership
businesses. Adjusted net income for the first quarter of 2012 excludes
a $62 million early extinguishment
charge related to $650 million of debt
tender offers and $4 million of benefits
related to legacy and other adjustments. Full reconciliations of
adjusted results to GAAP results appear in Table 8 of this press
release.
Including the early extinguishment charge and legacy benefits,
reported net income for the first quarter of 2012 was $32 million, or $0.21
per diluted share, compared with net income of $72
million, or $0.41 per diluted
share, for the first quarter of 2011.
Free cash flow increased 4% to $193
million for the quarter ended March 31,
2012, compared with $185 million
during the same period in 2011. The growth in free cash flow primarily
reflects reduced capital expenditures. The Company defines free cash
flow as net cash provided by operating activities less capital
expenditures, equity investments and development advances. For the
quarter ended March 31, 2012, cash
provided by operating activities was $228
million, compared with $229 million
in the prior year period.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $185 million
in the first quarter of 2012, an increase of 24%, compared with the
first quarter of 2011. The increase reflects domestic RevPAR gains of
9%, as part of a total system RevPAR improvement of 7%, revenues
associated with the recently opened Wyndham Grand hotel in Orlando, and higher inter-segment licensing
fees for use of the Wyndham brand trade name. The revenue increase also
includes $10 million of
reclassifications, primarily related to certain reservation fees, which
had no impact on Adjusted EBITDA.
Adjusted EBITDA was $49 million,
an increase of 23% compared with the first quarter of 2011, largely
reflecting the revenue increases discussed above, partially offset by
the operating costs associated with the recently opened Wyndham Grand
hotel and higher marketing costs. Excluding the higher inter-segment
licensing fees, Adjusted EBITDA increased by 13%.
As of March 31, 2012, the
Company's hotel system consisted of over 7,150 properties and
approximately 609,300 rooms. The development pipeline included
approximately 840 hotels and 108,200 rooms, of which 56% were new
construction and 55% were international.
Vacation Exchange and Rentals (Wyndham Exchange &
Rentals)
Revenues were $361 million
in the first quarter of 2012, compared to $356
million in the first quarter of 2011. In constant currency and
excluding the impact of acquisitions, revenues were flat.
Exchange revenues were $188 million,
a decrease of 3% compared with the first quarter of 2011, primarily due
to a 2% decline in the average number of members resulting from the
non-renewal of an affiliation agreement. In constant currency, exchange
revenues were down 2% and exchange revenue per member was flat.
Vacation rental revenues were $159
million, a 6% increase compared with the first quarter of 2011.
Excluding the impact of foreign currency and acquisitions, vacation
rental revenues were up 3% primarily due to a 2% increase in vacation
rental transactions. Average net price per vacation rental remained
flat.
Adjusted EBITDA for the first quarter of 2012 was $93 million, flat compared with the prior-year
period. Excluding the impact of foreign currency and acquisitions,
Adjusted EBITDA declined by 2%, reflecting the continued economic
challenges in Europe.
Vacation Ownership (Wyndham Vacation Ownership)
Revenues were $501 million
in the first quarter of 2012, an 11% increase over the first quarter of
2011, primarily reflecting increased vacation ownership interest (VOI)
sales.
Gross VOI sales were $384 million
in the first quarter of 2012, up 20% from the first quarter of 2011,
primarily reflecting a 10% increase in volume per guest and an 8%
increase in tour flow.
Adjusted EBITDA for the first quarter of 2012 was $103 million, a 7% increase compared with the
first quarter of 2011. Excluding the higher inter-segment licensing fee
paid for the use of the Wyndham brand trade name, Adjusted EBITDA
increased by 11%, reflecting contributions from increased VOI sales.
Other Items
- The Board of Directors approved a $750
million increase in the Company's share repurchase program.
- The Company repurchased approximately 3.6 million shares of
common stock for $150 million during the
first quarter of 2012 at an average price of $42.05,
and an additional 850,000 shares for $40 million
at an average price of $46.85 through April 24, 2012. The Company has $940 million remaining on its current share
repurchase authorization, including the $750
million increase mentioned above.
- Net interest expense in the first quarter of 2012 was $31 million, compared to $30 million in the first quarter of 2011.
- During the quarter, the Company purchased $207 million of our 9.875% 2014 senior notes
and $443 million of our 6.0% 2016 senior
notes. We also issued $300 million of 5
year notes at 2.95% and $650 million of
10 year notes at 4.25%. A portion of the proceeds was used to reduce
revolver borrowings by approximately $170
million.
Balance Sheet Information as of March
31, 2012:
- Cash and cash equivalents of approximately $240 million, compared with $142 million at December
31, 2011
- Vacation ownership contract receivables, net, of $2.8 billion, unchanged from December 31, 2011
- Vacation ownership and other inventory of approximately $1.1 billion, unchanged from December 31, 2011
- Securitized vacation ownership debt of $2.0 billion, compared with $1.9 billion at December
31, 2011
- Long-term debt of $2.3 billion,
compared with $2.2 billion at December 31, 2011. The remaining borrowing
capacity on the revolving credit facility was $942
million, compared with $771 million
as of December 31, 2011
A schedule of debt is included in Table 5 of this press
release.
Outlook
For the full year 2012, the Company:
- Reiterates Revenues of approximately $4.425
– $4.6 billion
- Reiterates Adjusted EBITDA of approximately $1.030 – $1.055 billion
- Raises Adjusted EPS Guidance to $3.00
- $3.15 from $2.85 - $3.00
- Reduces diluted shares to 149 million from 153 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,
April 25, 2012 at 8:30 a.m. EDT.
Listeners may access the webcast live through the Company's website at www.wyndhamworldwide.com/investors/.
An archive of this webcast will be available at the website for
approximately 90 days beginning at noon EDT
on April 25, 2012. The conference call
may also be accessed by dialing (800) 369-2052 and providing the
passcode "WYNDHAM." Listeners are urged to call at least 10 minutes
prior to the scheduled start time. A telephone replay will be available
for approximately 90 days beginning at noon EDT
on April 25, 2012, at (800) 839-5569.
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 measure because certain items cannot be
reasonably estimated or predicted at this time. Any such items could be
significant to our reported 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 products and services across
various accommodation alternatives and price ranges through its premier
portfolio of world-renowned brands. Wyndham Hotel Group encompasses
over 7,150 hotels with approximately 609,300 rooms worldwide. Wyndham
Exchange & Rentals offers leisure travelers, including its 3.7
million members, access to approximately 100,000 vacation properties
located in approximately 100 countries. Wyndham Vacation Ownership
develops, markets and sells vacation ownership interests and provides
consumer financing to owners through its network of over 160 vacation
ownership resorts serving over 813,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham
Worldwide, headquartered in Parsippany, N.J.,
employs approximately 27,800 employees globally.
For more information about Wyndham Worldwide, please visit 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, share
repurchases 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
Annual Report on Form 10-K, filed with the SEC on February 17, 2012. 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.
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|
Table
1
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
OPERATING
RESULTS OF REPORTABLE SEGMENTS
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
addition to other measures, management evaluates the operating results
of each of its reportable segments based upon net revenues and
"EBITDA," which is defined as net income before depreciation and
amortization, interest expense (excluding consumer financing interest),
interest income (excluding consumer financing interest) and income
taxes, each of which is presented on the Company's Consolidated
Statements of Income. The Company believes that EBITDA is a useful
measure of performance for the Company's industry segments which, when
considered with GAAP measures, the Company believes gives a more
complete understanding of 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 attributable to
Wyndham Worldwide for the three months ended March 31, 2012 and 2011:
|
|
|
Three
Months Ended March 31,
|
|
|
2012
|
|
2011
|
|
|
Net Revenues
|
|
EBITDA
|
|
Net Revenues
|
|
EBITDA
|
|
Lodging
|
$ 185
|
|
$ 49
|
|
$ 149
|
|
$ 27
|
(e)
|
Vacation
Exchange and Rentals
|
361
|
|
95
|
(c)
|
356
|
|
93
|
|
Vacation
Ownership
|
501
|
|
103
|
|
450
|
|
97
|
(f)
|
Total
Reportable Segments
|
1,047
|
|
247
|
|
955
|
|
217
|
|
Corporate
and Other (a) (b)
|
(11)
|
|
(21)
|
|
(3)
|
|
(14)
|
|
Total
Company
|
$ 1,036
|
|
$ 226
|
|
$ 952
|
|
$ 203
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income attributable to Wyndham Worldwide
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
$ 226
|
|
|
|
$ 203
|
|
Depreciation
and amortization
|
|
|
45
|
|
|
|
45
|
|
Interest
expense
|
|
|
33
|
|
|
|
32
|
|
Early
extinguishment of debt
|
|
|
106
|
(d)
|
|
|
12
|
(g)
|
Interest
income
|
|
|
(2)
|
|
|
|
(2)
|
|
Income
before income taxes
|
|
|
44
|
|
|
|
116
|
|
Provision
for income taxes
|
|
|
13
|
|
|
|
44
|
|
Net
income
|
|
|
31
|
|
|
|
72
|
|
Net
loss attributable to noncontrolling interest
|
|
|
1
|
|
|
|
-
|
|
Net
income attributable to Wyndham Worldwide
|
|
|
$ 32
|
|
|
|
$ 72
|
|
|
|
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__________
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(a)
Includes
the elimination of transactions between segments.
|
(b)
I ncludes
$4 million and $11 million of a net benefit during the three months
ended March 31, 2012 and 2011, respectively, related to the resolution
of and adjustment to certain contingent liabilities and assets
resulting from our separation from Cendant.
|
(c) I
ncludes a $2 million benefit related to the
reversal of an allowance associated with a previously divested asset.
|
(d)
Represents
costs incurred for the early repurchase of a portion of the Company's
9.875% senior unsecured notes and 6.00% senior unsecured notes.
|
(e) Includes
a non-cash impairment charge of $13 million to reduce the value of an
international joint venture.
|
(f) Includes
a $1 million benefit for the reversal of costs incurred as a result of
various strategic initiatives commenced by the Company during 2008.
|
(g)
Represents
costs incurred for the early repurchase of a portion of the Company's
convertible notes.
|
|
|
The
following tables summarize net revenues and Adjusted EBITDA for
reportable segments for the three months ended March 31, 2012 and 2011
(for a description of adjustments by segment, see Table 7):
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|
|
|
|
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|
|
Three
Months Ended March 31,
|
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|
|
2012
|
|
2011
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
Net Revenues
|
|
EBITDA
|
|
Net Revenues
|
|
EBITDA
|
|
Lodging
|
$ 185
|
|
$ 49
|
|
$ 149
|
|
$ 40
|
|
Vacation
Exchange and Rentals
|
361
|
|
93
|
|
356
|
|
93
|
|
Vacation
Ownership
|
501
|
|
103
|
|
450
|
|
96
|
|
Total
Reportable Segments
|
1,047
|
|
245
|
|
955
|
|
229
|
|
Corporate
and Other
|
(11)
|
|
(25)
|
|
(3)
|
|
(25)
|
|
Total
Company
|
$ 1,036
|
|
$ 220
|
|
$ 952
|
|
$ 204
|
|
|
|
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|
|
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|
Table
2
|
Wyndham
Worldwide Corporation
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In
millions, except per share data)
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|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2012
|
|
2011
|
|
Net
revenues
|
|
|
|
|
|
|
Service
and membership fees
|
|
$ 504
|
|
$ 495
|
|
|
Vacation
ownership interest sales
|
|
271
|
|
222
|
|
|
Franchise
fees
|
|
118
|
|
101
|
|
|
Consumer
financing
|
|
103
|
|
102
|
|
|
Other
|
|
40
|
|
32
|
|
Net
revenues
|
|
1,036
|
|
952
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Operating
|
|
442
|
|
411
|
|
|
Cost
of vacation ownership interests
|
|
28
|
|
32
|
|
|
Consumer
financing interest
|
|
23
|
|
23
|
|
|
Marketing
and reservation
|
|
167
|
|
137
|
|
|
General
and administrative(a)
|
|
153
|
|
140
|
|
|
Asset
impairments
|
|
-
|
|
13
|
(b)
|
|
Restructuring
|
|
-
|
|
(1)
|
(c)
|
|
Depreciation
and amortization
|
|
45
|
|
45
|
|
Total
expenses
|
|
858
|
|
800
|
|
|
|
|
|
|
|
|
Operating
income
|
|
178
|
|
152
|
|
Other
income, net
|
|
(3)
|
(d)
|
(6)
|
(e)
|
Interest
expense
|
|
33
|
|
32
|
|
Early
extinguishment of debt
|
|
106
|
(f)
|
12
|
(g)
|
Interest
income
|
|
(2)
|
|
(2)
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
44
|
|
116
|
|
Provision
for income taxes
|
|
13
|
|
44
|
|
|
|
|
|
|
|
|
Net
income
|
|
31
|
|
72
|
|
Net
loss attributable to noncontrolling interest
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
Net
income attributable to Wyndham Worldwide
|
|
$ 32
|
|
$ 72
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
Basic
|
|
$ 0.22
|
|
$ 0.42
|
|
|
Diluted
|
|
0.21
|
|
0.41
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
Basic
|
|
146
|
|
173
|
|
|
Diluted
|
|
149
|
|
179
|
|
__________
|
|
|
|
|
|
(a) Includes
$4 million and $7 million of a net benefit during the three months
ended March 31, 2012 and 2011, respectively, related to the resolution
of and adjustment to certain contingent liabilities and assets
resulting from our separation from Cendant.
|
(b) Represents
a non-cash impairment charge related to a write-down of an
international joint venture at the Company's lodging business.
|
(c) Relates
to the reversal of costs incurred as a result of various strategic
initiatives commenced by the Company during 2008.
|
(d) Includes
a $2 million benefit related to the reversal of an allowance associated
with a previously divested asset at the Company's vacation exchange and
rentals business.
|
(e) 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.
|
(f) Represents
costs incurred for the early repurchase of a portion of the Company's
9.875% senior unsecured notes and 6.00% senior unsecured notes.
|
(g) Represents
costs incurred for the early repurchase of a portion of the Company's
convertible notes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
|
|
|
|
|
|
|
|
|
|
|
(1
of 3)
|
Wyndham
Worldwide Corporation
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
Lodging
(a)
|
|
|
|
|
|
|
|
Number
of Rooms
|
2012
|
609,300
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
609,600
|
612,900
|
611,200
|
613,100
|
N/A
|
|
|
|
|
|
2010
|
593,300
|
606,800
|
605,700
|
612,700
|
N/A
|
|
|
|
|
|
2009
|
588,500
|
590,200
|
590,900
|
597,700
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR
|
2012
|
$ 29.73
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$ 27.71
|
$ 35.38
|
$ 39.49
|
$ 30.65
|
$ 33.34
|
|
|
|
|
|
2010
|
$ 25.81
|
$ 32.25
|
$ 37.14
|
$ 29.18
|
$ 31.14
|
|
|
|
|
|
2009
|
$ 27.69
|
$ 32.38
|
$ 34.81
|
$ 26.47
|
$ 30.34
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
Average
Number of Members (in 000s)
|
2012
|
3,684
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
3,766
|
3,755
|
3,744
|
3,734
|
3,750
|
|
|
|
|
|
2010
|
3,746
|
3,741
|
3,766
|
3,759
|
3,753
|
|
|
|
|
|
2009
|
3,789
|
3,795
|
3,781
|
3,765
|
3,782
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenue Per Member
|
2012
|
$
204.56
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$
205.64
|
$
178.46
|
$
172.38
|
$
161.68
|
$
179.59
|
|
|
|
|
|
2010
|
$
201.93
|
$
172.20
|
$
173.44
|
$
162.59
|
$
177.53
|
|
|
|
|
|
2009
|
$
194.83
|
$
174.22
|
$
173.90
|
$
163.89
|
$
176.73
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Rental Transactions (in 000s) (b)
|
2012
|
418
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
398
|
328
|
370
|
250
|
1,347
|
|
|
|
|
|
2010
|
291
|
297
|
322
|
253
|
1,163
|
|
|
|
|
|
2009
|
273
|
231
|
264
|
196
|
964
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Net Price Per Vacation Rental(b)
|
2012
|
$
379.40
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$
377.71
|
$
549.09
|
$
701.81
|
$
497.04
|
$
530.78
|
|
|
|
|
|
2010
|
$
361.17
|
$
387.01
|
$
500.31
|
$
449.12
|
$
425.38
|
|
|
|
|
|
2009
|
$
353.15
|
$
471.74
|
$
594.34
|
$
499.66
|
$
477.38
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
Gross
Vacation Ownership Interest (VOI) Sales (in 000s) (c)
|
2012
|
$
384,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$
319,000
|
$
412,000
|
$
455,000
|
$
409,000
|
$
1,595,000
|
|
|
|
|
|
2010
|
$
308,000
|
$
371,000
|
$
412,000
|
$
373,000
|
$
1,464,000
|
|
|
|
|
|
2009
|
$
280,000
|
$
327,000
|
$
366,000
|
$
343,000
|
$
1,315,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Tours (d)
|
2012
|
148,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
137,000
|
177,000
|
197,000
|
173,000
|
685,000
|
|
|
|
|
|
2010
|
123,000
|
163,000
|
187,000
|
160,000
|
634,000
|
|
|
|
|
|
2009
|
137,000
|
164,000
|
173,000
|
142,000
|
617,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
Per Guest (VPG) (d)
|
2012
|
$ 2,414
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$ 2,192
|
$ 2,227
|
$ 2,197
|
$ 2,296
|
$ 2,229
|
|
|
|
|
|
2010
|
$ 2,334
|
$ 2,156
|
$ 2,081
|
$ 2,214
|
$ 2,183
|
|
|
|
|
|
2009
|
$ 1,866
|
$ 1,854
|
$ 1,944
|
$ 2,210
|
$ 1,964
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Full year amounts may not add across due to rounding.
|
|
|
|
(a) Includes
the impact of the acquisition of the Tryp hotel brand (June 2010) from
the acquisition date 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 two tuck-in
acquisitions (third quarter 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
|
2012
|
7,150
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
7,190
|
7,220
|
7,190
|
7,210
|
N/A
|
|
|
|
|
|
2010
|
7,090
|
7,160
|
7,150
|
7,210
|
N/A
|
|
|
|
|
|
2009
|
6,990
|
7,020
|
7,040
|
7,110
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
Provision
for Loan Losses (in 000s) (b)
|
2012
|
$
96,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$
79,000
|
$
80,000
|
$
96,000
|
$
83,000
|
$
339,000
|
|
|
|
|
|
2010
|
$
86,000
|
$
87,000
|
$
85,000
|
$
82,000
|
$
340,000
|
|
|
|
|
|
2009
|
$
107,000
|
$
122,000
|
$
117,000
|
$
103,000
|
$
449,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
under WAAM (in 000s) (c)
|
2012
|
$
17,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$
18,000
|
$
19,000
|
$
38,000
|
$
31,000
|
$
106,000
|
|
|
|
|
|
2010
|
$ 5,000
|
$
13,000
|
$
20,000
|
$
14,000
|
$
51,000
|
|
|
|
|
|
|
|
|
|
|
|
|
WAAM
Commission Revenues (in 000s)
|
2012
|
$
12,000
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
2011
|
$
10,000
|
$
11,000
|
$
23,000
|
$
21,000
|
$
65,000
|
|
|
|
|
|
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 acquisition of Tryp hotel brand (June 2010) from the
acquisition date forward. Therefore, the operating statistics are not
presented on a comparable basis.
|
(b) 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.
|
(c)
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, or company owned, (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
2009-2012. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
and Franchise Fees
|
|
$ 62
|
N/A
|
N/A
|
N/A
|
N/A
|
|
$ 58
|
$ 75
|
$ 85
|
$ 66
|
$ 284
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
68
|
N/A
|
N/A
|
N/A
|
N/A
|
|
54
|
75
|
94
|
76
|
299
|
|
Hotel
Management Reimbursable Revenues (b)
|
21
|
N/A
|
N/A
|
N/A
|
N/A
|
|
19
|
19
|
21
|
20
|
79
|
|
Inter-segment
Trademark Fees (c)
|
|
8
|
N/A
|
N/A
|
N/A
|
N/A
|
|
1
|
2
|
3
|
4
|
10
|
|
Owned
Hotel Revenues
|
|
8
|
N/A
|
N/A
|
N/A
|
N/A
|
|
-
|
-
|
-
|
5
|
5
|
|
Ancillary
Revenues (d)
|
|
18
|
N/A
|
N/A
|
N/A
|
N/A
|
|
17
|
19
|
19
|
17
|
72
|
|
Total
Lodging
|
|
185
|
N/A
|
N/A
|
N/A
|
N/A
|
|
149
|
190
|
222
|
188
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
|
188
|
N/A
|
N/A
|
N/A
|
N/A
|
|
194
|
168
|
161
|
150
|
673
|
|
Rental
Revenues
|
|
159
|
N/A
|
N/A
|
N/A
|
N/A
|
|
150
|
180
|
260
|
125
|
715
|
|
Ancillary
Revenues (e)
|
|
14
|
N/A
|
N/A
|
N/A
|
N/A
|
|
12
|
13
|
15
|
16
|
56
|
|
Total
Vacation Exchange and Rentals
|
361
|
N/A
|
N/A
|
N/A
|
N/A
|
|
356
|
361
|
436
|
291
|
1,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership Interest Sales
|
271
|
N/A
|
N/A
|
N/A
|
N/A
|
|
222
|
313
|
320
|
295
|
1,150
|
|
Consumer
Financing
|
|
103
|
N/A
|
N/A
|
N/A
|
N/A
|
|
102
|
103
|
105
|
105
|
415
|
|
Property
Management Fees
|
|
110
|
N/A
|
N/A
|
N/A
|
N/A
|
|
110
|
108
|
105
|
101
|
424
|
|
WAAM
Commissions
|
|
12
|
N/A
|
N/A
|
N/A
|
N/A
|
|
10
|
11
|
23
|
21
|
65
|
|
Ancillary
Revenues (f)
|
|
5
|
N/A
|
N/A
|
N/A
|
N/A
|
|
6
|
6
|
6
|
5
|
23
|
|
Total
Vacation Ownership
|
|
501
|
N/A
|
N/A
|
N/A
|
N/A
|
|
450
|
541
|
559
|
527
|
2,077
|
Total
Reportable Segments
|
|
$
1,047
|
N/A
|
N/A
|
N/A
|
N/A
|
|
$
955
|
$
1,092
|
$
1,217
|
$
1,006
|
$
4,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
and Franchise Fees
|
|
$ 52
|
$ 69
|
$ 82
|
$ 62
|
$ 265
|
|
$ 57
|
$ 68
|
$ 72
|
$ 57
|
$ 254
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
50
|
65
|
76
|
60
|
251
|
|
54
|
66
|
73
|
53
|
246
|
|
Hotel
Management Reimbursable Revenues (b)
|
21
|
20
|
18
|
18
|
77
|
|
22
|
23
|
21
|
19
|
85
|
|
Ancillary
Revenues (d)
|
|
21
|
24
|
27
|
23
|
95
|
|
21
|
17
|
17
|
20
|
75
|
|
Total
Lodging
|
|
144
|
178
|
203
|
163
|
688
|
|
154
|
174
|
183
|
149
|
660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
|
189
|
161
|
163
|
153
|
666
|
|
185
|
165
|
164
|
154
|
668
|
|
Rental
Revenues
|
|
105
|
115
|
161
|
114
|
495
|
|
96
|
109
|
157
|
98
|
460
|
|
Ancillary
Revenues (e)
|
|
6
|
5
|
6
|
15
|
32
|
|
6
|
6
|
6
|
6
|
24
|
|
Total
Vacation Exchange and Rentals
|
300
|
281
|
330
|
282
|
1,193
|
|
287
|
280
|
327
|
258
|
1,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership Interest Sales
|
217
|
271
|
308
|
276
|
1,072
|
|
239
|
242
|
285
|
287
|
1,053
|
|
Consumer
Financing
|
|
105
|
106
|
107
|
107
|
425
|
|
109
|
109
|
108
|
109
|
435
|
|
Property
Management Fees
|
|
100
|
100
|
104
|
101
|
405
|
|
91
|
94
|
96
|
95
|
376
|
|
WAAM
Commissions (g)
|
|
3
|
8
|
12
|
8
|
31
|
|
-
|
-
|
-
|
-
|
-
|
|
Ancillary
Revenues (f)
|
|
19
|
20
|
2
|
5
|
46
|
|
23
|
22
|
19
|
17
|
81
|
|
Total
Vacation Ownership
|
|
444
|
505
|
533
|
497
|
1,979
|
|
462
|
467
|
508
|
508
|
1,945
|
Total
Reportable Segments
|
|
$
888
|
$
964
|
$
1,066
|
$
942
|
$
3,860
|
|
$
903
|
$
921
|
$
1,018
|
$
915
|
$
3,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) During
2011, $3 million, $1 million and $2 million of inter-segment trademark
fees were recorded as a reduction of expenses in Q1, Q2 and Q3,
respectively. As such, total inter-segment trademark fees for 2011 were
$16 million.
|
(d) Primarily
includes additional services provided to franchisees.
|
(e) Primarily
includes fees generated from programs with affiliated resorts and
homeowners.
|
(f) 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.
|
(g) The
Company implemented the WAAM sales model during the first quarter of
2010 and, as such, there is no historical data for 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
|
Wyndham
Worldwide Corporation
|
SCHEDULE
OF DEBT
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
2012
|
|
December
31,
2011
|
|
September
30,
2011
|
|
June
30,
2011
|
|
March
31,
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized
vacation ownership debt (a)
|
|
|
|
|
|
|
|
|
|
|
Term
notes
|
|
$ 1,896
|
|
$ 1,625
|
|
$ 1,512
|
|
$ 1,446
|
|
$ 1,666
|
Bank
conduit facility (b)
|
|
104
|
|
237
|
|
218
|
|
242
|
|
148
|
Securitized
vacation ownership debt (c)
|
|
2,000
|
|
1,862
|
|
1,730
|
|
1,688
|
|
1,814
|
Less:
Current portion of securitized vacation ownership debt
|
|
206
|
|
196
|
|
179
|
|
190
|
|
216
|
Long-term
securitized vacation ownership debt
|
|
$ 1,794
|
|
$ 1,666
|
|
$ 1,551
|
|
$ 1,498
|
|
$ 1,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
Revolving
credit facility (due July 2016) (d)
|
|
$ 47
|
|
$ 218
|
|
$ 169
|
|
$ 107
|
|
$ 5
|
3.50%
convertible notes (due May 2012) (e)
|
|
44
|
|
36
|
|
27
|
|
32
|
|
41
|
9.875%
senior unsecured notes (due May 2014) (f)
|
|
42
|
|
243
|
|
243
|
|
242
|
|
241
|
6.00%
senior unsecured notes (due December 2016) (g)
|
|
362
|
|
811
|
|
812
|
|
803
|
|
797
|
2.95%
senior unsecured notes (due March 2017) (h)
|
|
298
|
|
-
|
|
-
|
|
-
|
|
-
|
5.75%
senior unsecured notes (due February 2018) (i)
|
|
247
|
|
247
|
|
247
|
|
247
|
|
247
|
7.375%
senior unsecured notes (due March 2020) (j)
|
|
248
|
|
247
|
|
247
|
|
247
|
|
247
|
5.625%
senior unsecured notes (due March 2021) (k)
|
|
245
|
|
245
|
|
245
|
|
245
|
|
245
|
4.25%
senior unsecured notes (due March 2022) (l)
|
|
643
|
|
-
|
|
-
|
|
-
|
|
-
|
Vacation
rentals capital leases
|
|
103
|
|
102
|
|
108
|
|
120
|
|
120
|
Other
|
|
1
|
|
4
|
|
1
|
|
1
|
|
28
|
Total
debt
|
|
2,280
|
|
2,153
|
|
2,099
|
|
2,044
|
|
1,971
|
Less:
Current portion of debt
|
|
54
|
|
46
|
|
37
|
|
43
|
|
12
|
Long-term
debt
|
|
$ 2,226
|
|
$ 2,107
|
|
$ 2,062
|
|
$ 2,001
|
|
$ 1,959
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March
31, 2012, this facility had remaining borrowing capacity of $496
million.
|
(c) This
debt is collateralized by $2,622 million, $2,638 million, $2,502
million, $2,672 million and $2,778 million of underlying vacation
ownership contract receivables and related assets as of March 31, 2012,
December 31, 2011, September 30, 2011, June 30, 2011 and March 31,
2011, respectively.
|
(d) Represents
a $1.0 billion revolving credit facility that expires on July 15, 2016.
As of March 31, 2012, the Company had $11 million of outstanding
letters of credit and a remaining borrowing capacity of $942 million.
|
(e) Represents
convertible notes issued by the Company during May 2009. The balance at
March 31, 2012 represents $12 million aggregate principal plus a $32
million liability related to a bifurcated conversion feature.
|
(f) Represents
senior unsecured notes issued by the Company during May 2009. The
balance as of March 31, 2012 represents $43 million aggregate principal
less $1 million of unamortized discount.
|
(g) Represents
senior unsecured notes issued by the Company during December 2006. The
balance as of March 31, 2012 represents $357 million aggregate
principal less $1 million of unamortized discount, plus $6 million of
unamortized gains from the settlement of a derivative.
|
(h) Represents
senior unsecured notes issued by the Company during March 2012. The
balance as of March 31, 2012 represents $300 million aggregate
principal less $2 million of unamortized discount.
|
(i) Represents
senior unsecured notes issued by the Company during September 2010. The
balance as of March 31, 2012 represents $250 million aggregate
principal less $3 million of unamortized discount.
|
(j) Represents
senior unsecured notes issued by the Company during February 2010. The
balance as of March 31, 2012 represents $250 million aggregate
principal less $2 million of unamortized discount.
|
(k) Represents
senior unsecured notes issued by the Company during March 2011. The
balance as of March 31, 2012 represents $250 million aggregate
principal less $5 million of unamortized discount.
|
(l) Represents
senior unsecured notes issued by the Company during March 2012. The
balance as of March 31, 2012 represents $650 million aggregate
principal less $7 million of unamortized discount.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
BRAND
SYSTEM DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of and For the Three Months Ended March 31, 2012
|
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
|
25,901
|
55.7%
|
$111.04
|
$61.87
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
90
|
12,904
|
51.2%
|
$96.12
|
$49.25
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
161
|
14,750
|
57.7%
|
$80.22
|
$46.26
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
78
|
7,400
|
59.3%
|
$73.85
|
$43.83
|
|
|
|
|
|
|
|
Ramada
|
843
|
114,251
|
47.6%
|
$75.97
|
$36.19
|
|
|
|
|
|
|
|
Baymont
|
255
|
21,425
|
44.6%
|
$60.44
|
$26.98
|
|
|
|
|
|
|
|
Days
Inn
|
1,834
|
148,235
|
42.6%
|
$59.00
|
$25.12
|
|
|
|
|
|
|
|
Super
8
|
2,253
|
142,686
|
47.2%
|
$50.56
|
$23.89
|
|
|
|
|
|
|
|
Howard
Johnson
|
440
|
44,090
|
44.3%
|
$58.98
|
$26.10
|
|
|
|
|
|
|
|
Travelodge
|
434
|
32,602
|
42.8%
|
$61.39
|
$26.27
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
310
|
22,086
|
49.1%
|
$58.37
|
$28.69
|
|
|
|
|
|
|
|
Knights
Inn
|
350
|
21,867
|
36.5%
|
$40.23
|
$14.69
|
|
|
|
|
|
|
|
Dream
|
5
|
990
|
75.2%
|
$194.51
|
$146.20
|
|
|
|
|
|
|
|
Night
|
1
|
72
|
90.6%
|
$203.86
|
$184.77
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,152
|
609,259
|
46.2%
|
$64.41
|
$29.73
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
165
|
20,764
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,317
|
630,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of and For the Three Months Ended March 31, 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
|
94
|
25,521
|
53.3%
|
$106.57
|
$56.84
|
|
|
|
|
|
|
|
Tryp
by Wyndham
|
92
|
13,420
|
48.3%
|
$111.27
|
$53.75
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
165
|
15,134
|
55.8%
|
$78.31
|
$43.68
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
75
|
7,028
|
57.6%
|
$74.22
|
$42.73
|
|
|
|
|
|
|
|
Ramada
|
888
|
117,278
|
45.4%
|
$73.37
|
$33.30
|
|
|
|
|
|
|
|
Baymont
|
261
|
21,886
|
41.2%
|
$59.02
|
$24.33
|
|
|
|
|
|
|
|
Days
Inn
|
1,877
|
150,214
|
40.5%
|
$58.19
|
$23.58
|
|
|
|
|
|
|
|
Super
8
|
2,185
|
137,260
|
43.9%
|
$51.41
|
$22.56
|
|
|
|
|
|
|
|
Howard
Johnson
|
464
|
46,080
|
41.1%
|
$57.28
|
$23.56
|
|
|
|
|
|
|
|
Travelodge
|
434
|
31,920
|
40.8%
|
$59.70
|
$24.34
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
316
|
22,528
|
46.3%
|
$55.03
|
$25.46
|
|
|
|
|
|
|
|
Knights
Inn
|
339
|
20,679
|
33.7%
|
$40.75
|
$13.74
|
|
|
|
|
|
|
|
Dream
|
3
|
566
|
73.1%
|
$177.95
|
$130.02
|
|
|
|
|
|
|
|
Night
|
1
|
72
|
93.8%
|
$298.78
|
$280.20
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,194
|
609,586
|
43.5%
|
$63.66
|
$27.71
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
162
|
20,736
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,356
|
630,322
|
|
|
|
_______________
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
Legacy
|
Allowance
|
Adjusted
|
Three
months ended March 31, 2012
|
Net
Revenues
|
|
EBITDA
|
Adjustments
(b)
|
Reversal
(c)
|
EBITDA
|
Lodging
|
|
$ 185
|
|
$ 49
|
$ -
|
$ -
|
$ 49
|
Vacation
Exchange and Rentals
|
|
361
|
|
95
|
-
|
(2)
|
93
|
Vacation
Ownership
|
|
501
|
|
103
|
-
|
-
|
103
|
Total
Reportable Segments
|
|
1,047
|
|
247
|
-
|
(2)
|
245
|
Corporate
and Other (a)
|
|
(11)
|
|
(21)
|
(4)
|
-
|
(25)
|
Total
Company
|
|
$ 1,036
|
|
$ 226
|
$ (4)
|
$ (2)
|
$ 220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________
|
|
|
|
|
|
|
|
(a) Includes
the elimination of transactions between segments.
|
|
|
|
(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 a benefit from the reversal of an
allowance associated with a previously divested asset.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
of 2)
|
Wyndham
Worldwide
|
NON-GAAP
RECONCILIATION
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
Legacy
|
Asset
|
Restructuring
|
VAT
|
CTA
|
Adjusted
|
Three
months ended March 31, 2011
|
|
Net
Revenues
|
|
EBITDA
|
Adjustments
(b)
|
Impairments
|
Costs
|
Adjustments
(e)
|
Writeoff
(f)
|
EBITDA
|
Lodging
|
|
$ 149
|
|
$ 27
|
$ -
|
$ 13
|
(c)
|
$ -
|
|
$ -
|
$ -
|
$ 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 188
|
|
$ (3)
|
$ -
|
$ 44
|
(h)
|
$ -
|
|
$ -
|
$ -
|
$ 41
|
Vacation
Exchange and Rentals
|
|
291
|
|
38
|
-
|
-
|
|
-
|
|
-
|
-
|
38
|
Vacation
Ownership
|
|
527
|
|
139
|
-
|
-
|
|
-
|
|
-
|
-
|
139
|
Total
Reportable Segments
|
|
1,006
|
|
174
|
-
|
44
|
|
-
|
|
-
|
-
|
218
|
Corporate
and Other (a)
|
|
(6)
|
|
(26)
|
(4)
|
-
|
|
-
|
|
-
|
-
|
(30)
|
Total
Company
|
|
$ 1,000
|
|
$ 148
|
$ (4)
|
$ 44
|
|
$ -
|
|
$ -
|
$ -
|
$ 188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 749
|
|
$ 157
|
$ -
|
$ 57
|
(c) (h)
|
$ -
|
|
$ -
|
$ -
|
$ 214
|
Vacation
Exchange and Rentals
|
|
1,444
|
|
368
|
-
|
-
|
|
7
|
(g)
|
(31)
|
4
|
348
|
Vacation
Ownership
|
|
2,077
|
|
515
|
-
|
-
|
|
(1)
|
(d)
|
-
|
-
|
514
|
Total
Reportable Segments
|
|
4,270
|
|
1,040
|
-
|
57
|
|
6
|
|
(31)
|
4
|
1,076
|
Corporate
and Other (a)
|
|
(16)
|
|
(84)
|
(16)
|
-
|
|
-
|
|
-
|
-
|
(100)
|
Total
Company
|
|
$ 4,254
|
|
$ 956
|
$ (16)
|
$ 57
|
|
$ 6
|
|
$ (31)
|
$ 4
|
$ 976
|
________________
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 at 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) R
elates 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.
|
(h) Relates
to non-cash impairment charges primarily related to the write-down of
certain franchise and management agreements and development advance
notes at the Company's lodging business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
(1
of 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
NON-GAAP
FINANCIAL INFORMATION
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy
Adjustments
|
|
Allowance
Reversal
|
|
Early
Extinguishment of Debt
|
|
|
|
|
|
As
Reported
|
|
|
|
|
As
Adjusted
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 504
|
|
|
|
|
|
|
|
$ 504
|
|
Vacation
ownership interest sales
|
|
271
|
|
|
|
|
|
|
|
271
|
|
Franchise
fees
|
|
118
|
|
|
|
|
|
|
|
118
|
|
Consumer
financing
|
|
103
|
|
|
|
|
|
|
|
103
|
|
Other
|
|
40
|
|
|
|
|
|
|
|
40
|
Net
revenues
|
|
1,036
|
|
-
|
|
-
|
|
-
|
|
1,036
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
442
|
|
|
|
|
|
|
|
442
|
|
Cost
of vacation ownership interests
|
|
28
|
|
|
|
|
|
|
|
28
|
|
Consumer
financing interest
|
|
23
|
|
|
|
|
|
|
|
23
|
|
Marketing
and reservation
|
|
167
|
|
|
|
|
|
|
|
167
|
|
General
and administrative
|
|
153
|
|
4
|
(a)
|
|
|
|
|
157
|
|
Depreciation
and amortization
|
|
45
|
|
|
|
|
|
|
|
45
|
Total
expenses
|
|
858
|
|
4
|
|
-
|
|
-
|
|
862
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
178
|
|
(4)
|
|
-
|
|
-
|
|
174
|
Other
income, net
|
|
(3)
|
|
|
|
2
|
(b)
|
|
|
(1)
|
Interest
expense
|
|
33
|
|
|
|
|
|
|
|
33
|
Early
extinguishment of debt
|
|
106
|
|
|
|
|
|
(106)
|
(c)
|
-
|
Interest
income
|
|
(2)
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
44
|
|
(4)
|
|
(2)
|
|
106
|
|
144
|
Provision
for income taxes
|
|
13
|
|
(2)
|
(d)
|
-
|
(d)
|
44
|
(d)
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
31
|
|
(2)
|
|
(2)
|
|
62
|
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss attributable to noncontrolling interest
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Wyndham Worldwide
|
|
$ 32
|
|
$ (2)
|
|
$ (2)
|
|
$ 62
|
|
$ 90
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.22
|
|
$
(0.02)
|
|
$
(0.01)
|
|
$ 0.43
|
|
$ 0.61
|
|
Diluted
|
|
0.21
|
|
(0.02)
|
|
(0.01)
|
|
0.42
|
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
146
|
|
146
|
|
146
|
|
146
|
|
146
|
|
Diluted
|
|
149
|
|
149
|
|
149
|
|
149
|
|
149
|
__________
|
|
|
|
|
|
|
|
|
|
|
Note:
EPS amounts may not add due to rounding.
|
|
|
|
|
|
|
(a)
|
Relates
to the net benefit from the resolution of and adjustment to certain
contingent liabilities and assets resulting from our separation from
Cendant.
|
(b)
|
Relates
to a benefit from the reversal of an allowance associated with a
previously divested asset.
|
(c)
|
Represents
costs incurred for the early repurchase of a portion of the Company's
9.875% senior unsecured notes and 6.00% senior unsecured notes.
|
(d)
|
Relates
to the tax effect of the adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
of 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
NON-GAAP
FINANCIAL INFORMATION
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Early
Extinguishment of Debt
|
|
Legacy
Adjustments
|
|
Asset
Impairment
|
|
Restructuring
Costs
|
|
|
|
|
|
As
Reported
|
|
|
|
|
|
As
Adjusted
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 495
|
|
|
|
|
|
|
|
|
|
$ 495
|
|
Vacation
ownership interest sales
|
|
222
|
|
|
|
|
|
|
|
|
|
222
|
|
Franchise
fees
|
|
101
|
|
|
|
|
|
|
|
|
|
101
|
|
Consumer
financing
|
|
102
|
|
|
|
|
|
|
|
|
|
102
|
|
Other
|
|
32
|
|
|
|
|
|
|
|
|
|
32
|
Net
revenues
|
|
952
|
|
-
|
|
-
|
|
-
|
|
-
|
|
952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
411
|
|
|
|
|
|
|
|
|
|
411
|
|
Cost
of vacation ownership interests
|
|
32
|
|
|
|
|
|
|
|
|
|
32
|
|
Consumer
financing interest
|
|
23
|
|
|
|
|
|
|
|
|
|
23
|
|
Marketing
and reservation
|
|
137
|
|
|
|
|
|
|
|
|
|
137
|
|
General
and administrative
|
|
140
|
|
|
|
7
|
(b)
|
|
|
|
|
147
|
|
Asset
impairment
|
|
13
|
|
|
|
|
|
(13)
|
(d)
|
|
|
-
|
|
Restructuring
|
|
(1)
|
|
|
|
|
|
|
|
1
|
(e)
|
-
|
|
Depreciation
and amortization
|
|
45
|
|
|
|
|
|
|
|
|
|
45
|
Total
expenses
|
|
800
|
|
-
|
|
7
|
|
(13)
|
|
1
|
|
795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
152
|
|
-
|
|
(7)
|
|
13
|
|
(1)
|
|
157
|
Other
income, net
|
|
(6)
|
|
|
|
4
|
(c)
|
|
|
|
|
(2)
|
Interest
expense
|
|
32
|
|
|
|
|
|
|
|
|
|
32
|
Early
extinguishment of debt
|
|
12
|
|
(12)
|
(a)
|
|
|
|
|
|
|
-
|
Interest
income
|
|
(2)
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
116
|
|
12
|
|
(11)
|
|
13
|
|
(1)
|
|
129
|
Provision
for income taxes
|
|
44
|
|
5
|
(f)
|
(3)
|
(f)
|
5
|
(f)
|
(1)
|
(f)
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 72
|
|
$ 7
|
|
$ (8)
|
|
$ 8
|
|
$ -
|
|
$ 79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.42
|
|
$ 0.04
|
|
$
(0.04)
|
|
$ 0.04
|
|
$ -
|
|
$ 0.46
|
|
Diluted
|
|
0.41
|
|
0.04
|
|
(0.04)
|
|
0.04
|
|
-
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
173
|
|
173
|
|
173
|
|
173
|
|
173
|
|
173
|
|
Diluted
|
|
179
|
|
179
|
|
179
|
|
179
|
|
179
|
|
179
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
EPS amounts may not foot due to rounding.
|
|
|
|
|
|
|
|
|
(a)
|
Relates
to costs incurred for the early repurchase of a portion of the
Company's 3.50% convertible notes during the first quarter of 2011.
|
(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 a gain on the redemption of a preferred stock investment allocated
to the Company in connection with our separation with Cendant.
|
(d)
|
Relates
to a non-cash impairment charge to reduce the value of an international
joint venture in the Company's lodging business.
|
(e)
|
Relates
to the reversal of costs incurred as a result of various strategic
initiatives commenced by the Company during 2008.
|
(f)
|
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:
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
|
$ 228
|
|
$ 229
|
|
|
Less:
Property and equipment additions
|
|
(33)
|
|
(41)
|
|
|
Less:
Equity investments and development advances
|
|
(2)
|
|
(3)
|
|
|
Free
cash flow
|
|
$ 193
|
|
$ 185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
2012
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 384
|
N/A
|
N/A
|
N/A
|
N/A
|
Less:
Sales under the WAAM
|
|
(17)
|
N/A
|
N/A
|
N/A
|
N/A
|
Gross
VOI sales, net of WAAM sales
|
|
367
|
N/A
|
N/A
|
N/A
|
N/A
|
Less:
Loan loss provision
|
|
(96)
|
N/A
|
N/A
|
N/A
|
N/A
|
Vacation
ownership interest sales
|
|
$ 271
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 319
|
$ 412
|
$ 455
|
$ 409
|
$ 1,595
|
Less:
Sales under the WAAM
|
|
(18)
|
(19)
|
(38)
|
(31)
|
(106)
|
Gross
VOI sales, net of WAAM sales
|
|
302
|
393
|
417
|
378
|
1,489
|
Less:
Loan loss provision
|
|
(79)
|
(80)
|
(96)
|
(83)
|
(339)
|
Vacation
ownership interest sales
|
|
$ 222
|
$ 313
|
$ 320
|
$ 295
|
$ 1,150
|
|
|
|
|
|
|
|
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 (a)
|
|
67
|
37
|
36
|
47
|
187
|
Less:
Loan loss provision
|
|
(107)
|
(122)
|
(117)
|
(103)
|
(449)
|
Vacation
ownership interest sales
|
|
$ 239
|
$ 242
|
$ 285
|
$ 287
|
$ 1,053
|
_____________
|
|
|
|
|
|
|
Note:
Amounts may not add due to rounding.
|
|
|
|
|
(a)
Represents the revenue that is deferred under the percentage of
completion method of accounting.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following includes primarily tele-sales upgrades and other non-tour
revenues, which are excluded from Gross VOI sales in the Company's VPG
calculation (see Table 3):
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
2012
|
|
$ 27
|
N/A
|
N/A
|
N/A
|
N/A
|
2011
|
|
$ 18
|
$ 18
|
$ 21
|
$ 11
|
$ 68
|
2010
|
|
$ 20
|
$ 20
|
$ 23
|
$ 17
|
$ 80
|
2009
|
|
$ 24
|
$ 23
|
$ 29
|
$ 28
|
$ 104
|
_____________
|
|
|
|
|
|
|
Note:
Amounts may not add across due to rounding.
|
|