PARSIPPANY,
N.J., Oct. 24, 2012 -- Wyndham
Worldwide Corporation (NYSE: WYN) today announced results for the three months
ended September 30, 2012.
Highlights:
- Third quarter adjusted diluted earnings per share (EPS) was
$1.13, compared with $0.94 in the third quarter of 2011, an
increase of 20%. Third quarter 2012 reported diluted EPS was $1.11, compared with $1.08
from the same period in 2011, which included a $22
million benefit from adjustments.
- Third quarter adjusted net income increased 6% compared
with the third quarter of 2011. A stronger US dollar had an adverse
effect on net income and EPS. In constant currency, third quarter
adjusted net income increased 9% and adjusted EPS increased 24%
compared with the third quarter of 2011.
- During the quarter, the Company repurchased 2.6 million
shares of its common stock for $133 million.
"The third quarter was highlighted by
exceptional performance from our Hotel Group," said Stephen P. Holmes, chairman and CEO. "Our
timeshare business delivered another quarter of solid performance and
I'm pleased with the ability of our exchange and rentals group to
mitigate the impact of economic headwinds in Europe. Our share
repurchase program continues to reduce our share count and contribute
to strong adjusted EPS growth."
THIRD QUARTER 2012 OPERATING RESULTS
Third quarter revenues were $1.3 billion, an increase of 4% from the prior
year period. The increase reflected growth in the Lodging and Vacation
Ownership businesses, partially offset by unfavorable currency effects
in the Vacation Exchange and Rentals business.
For the third quarter of 2012, adjusted
net income was $162 million, or $1.13 per diluted share, compared with $153 million, or $0.94
per diluted share for the same period in 2011. The increase in adjusted
net income primarily reflected stronger operating results in the
Lodging and Vacation Ownership businesses. EPS also benefited from the
Company's share repurchase program, which decreased weighted average
share count by 11%.
Reported net income for the third
quarter of 2012 was $159 million, or $1.11 per diluted share, compared with net
income of $175 million, or $1.08 per diluted share, for the third quarter
of 2011. Reported net income included several items not included in
adjusted net income. The third quarter of 2012 included $3 million of acquisition costs, legacy
adjustments and debt transaction fees. The third quarter of 2011
included a $22 million benefit from
adjustments. Full reconciliations of adjusted results to GAAP results
appear in Table 8 of this press release.
Free cash flow was $682 million for the nine months ended September 30, 2012, compared to $703 million for the same period in 2011.
Excluding a $67 million benefit from a
refund of value added taxes and related interest income received in
2011, free cash flow increased by 7%. The Company defines free cash
flow as net cash provided by operating activities less capital
expenditures and development advances. For the nine months ended September 30, 2012, net cash provided by
operating activities was $808 million,
compared with $860 million in the prior
year period, which included the benefit from the refund of value added
taxes and related interest income.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $249
million in the third quarter of 2012, an increase of 12%
compared with the third quarter of 2011. The increase primarily
reflected RevPAR gains, revenues associated with the Wyndham Grand
hotel in Orlando, which opened at the
beginning of the fourth quarter of 2011, and higher intersegment
licensing fees for use of the Wyndham brand trade name.
EBITDA was $86
million, an increase of 28% compared with the third quarter of
2011, reflecting the revenue increases.
Domestic RevPAR increased 5% compared
with the third quarter of 2011. Total system-wide RevPAR increased 2%,
or 3% in constant currency.
As of September
30, 2012, the Company's hotel system consisted of nearly 7,260
properties and approximately 618,100 rooms. The development pipeline
included approximately 950 hotels and 108,300 rooms, of which 55% were
new construction and 47% were international.
Vacation Exchange and Rentals
(Wyndham Exchange & Rentals)
Revenues were $420
million in the third quarter of 2012, compared to $436 million in the third quarter of 2011. In
constant currency and excluding the impact of acquisitions, revenues
were flat.
Exchange revenues were $157 million, a decrease of 2% compared with
the third quarter of 2011. In constant currency, exchange revenues were
flat, as a 2% decline in the average number of members was offset by a
1% increase in exchange revenue per member. The decline in the average
number of members was due to the non-renewal of an affiliation
agreement at the beginning of 2012.
Vacation rental revenues were $248 million, a 5% decrease compared with the
third quarter of 2011. In constant currency and excluding acquisitions,
vacation rental revenues were flat, reflecting a 3% increase in
transaction volume offset by a 2% decrease in the average net price per
vacation rental.
Adjusted EBITDA for the third quarter
of 2012 was $123 million, down 9%
compared with the prior-year period. Adjusted EBITDA was flat excluding
the impact of acquisitions and the net effect of foreign currency.
Vacation Ownership (Wyndham
Vacation Ownership)
Revenues were $608
million in the third quarter of 2012, a 9% increase over the
third quarter of 2011, primarily reflecting increased vacation
ownership interest (VOI) sales.
Gross VOI sales were $502 million in the third quarter of 2012, up
10% from the third quarter of 2011, primarily reflecting a 5% increase
in both volume per guest and tour flow.
Adjusted EBITDA for the third quarter
of 2012 was $155 million, a 4% increase
compared with the third quarter of 2011. The increase primarily
reflects the revenue increases, partially offset by higher sales and
marketing expenses related to the increase in VOI sales and higher
intersegment licensing fees for use of the Wyndham brand trade name.
Other Items
- The Company repurchased 2.6 million shares of common stock
for $133 million during the third
quarter of 2012. From October 1 through October
23, 2012, the Company repurchased an additional 915,000 shares
for $49 million. The Company has $608 million remaining on its current share
repurchase authorization.
- Net interest expense in the third quarter of 2012 was $30 million, compared to $15 million in the third quarter of 2011,
which included $16 million of interest
income associated with a refund of value added taxes.
Balance Sheet Information as of September 30, 2012:
- Cash and cash equivalents of approximately $230 million, compared with $142 million at December
31, 2011
- Vacation ownership contract receivables, net, of $2.9 billion, compared with $2.8 billion at December
31, 2011
- Vacation ownership and other inventory of approximately $1.1 billion, unchanged from December 31, 2011
- Securitized vacation ownership debt of $1.9 billion, unchanged from December 31, 2011
- Long-term debt of $2.5 billion,
compared with $2.2 billion at December 31, 2011. The remaining borrowing
capacity on the revolving credit facility was $720
million as of September 30, 2012,
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:
- Revises Revenues to $4.5 – $4.6 billion from $4.425
- $4.6 billion
- Revises Adjusted EBITDA guidance to $1.045
- $1.055 billion from $1.040 – $1.055 billion
- Revises Adjusted EPS Guidance to $3.15
- $3.20 from $3.10 - $3.20
- Reduces diluted shares to 146 million from 147 million
The Company's preliminary guidance for
the full-year 2013 is as follows:
- Revenues of approximately $4.9 -
$5.05 billion
- Adjusted EBITDA of approximately $1.125
- $1.150 billion
- Adjusted EPS of approximately $3.50
- $3.60 based on a diluted share count of 143 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 guidance may change materially.
Conference Call Information
Wyndham Worldwide Corporation will hold
a conference call with investors to discuss this news on Wednesday, October 24, 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 October 24, 2012. The conference call
may also be accessed by dialing (888) 942-9868 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 October 24, 2012, at (866) 395-9153.
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 the Company's reported results.
About Wyndham Worldwide
Corporation
One of the world's largest hospitality
companies, Wyndham Worldwide (NYSE: WYN) provides a wide range of hospitality
products and services through its global portfolio of world-renowned
brands. The world's largest hotel company based on the number of
properties, Wyndham Hotel Group is home to many of the world's
best-known hotel brands, with approximately 7,260 franchised hotels and
618,100 hotel rooms worldwide. Wyndham Exchange & Rentals is the
worldwide leader in vacation exchange and the world's largest
professionally managed vacation rentals business, providing more than 5
million leisure-bound families annually with access to approximately
100,000 vacation properties in 100 countries through its prominent
exchange and vacation rental brands. The industry and timeshare
ownership market leader, Wyndham Vacation Ownership develops, markets,
and sells vacation ownership interests and provides consumer financing
to owners through its network of over 180 vacation ownership resorts
serving more than 915,000 owners throughout the
United States, Canada, Mexico, the Caribbean,
and the South Pacific. Based in Parsippany,
NJ, Wyndham Worldwide employs approximately 27,800 associates
globally. For more information, 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 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 July 25, 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.
|
|
|
|
|
|
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),
early extinguishment of debt, 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 shareholders for the three months ended September 30, 2012 and
2011:
|
|
|
|
|
|
|
|
Three
Months Ended September 30,
|
|
|
|
2012
|
|
2011
|
|
|
|
Net Revenues
|
|
EBITDA
|
|
Net Revenues
|
|
EBITDA
|
|
Lodging
|
$ 249
|
|
$ 86
|
|
$ 222
|
|
$ 67
|
|
Vacation
Exchange and Rentals
|
420
|
|
123
|
|
436
|
|
131
|
(e)
|
Vacation
Ownership
|
608
|
|
154
|
(b)
|
559
|
|
149
|
|
Total
Reportable Segments
|
1,277
|
|
363
|
|
1,217
|
|
347
|
|
Corporate
and Other (a)
|
(12)
|
|
(30)
|
(c)
|
(5)
|
|
(18)
|
(c)
|
Total
Company
|
$ 1,265
|
|
$ 333
|
|
$ 1,212
|
|
$ 329
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income Attributable to Wyndham shareholders
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
$ 333
|
|
|
|
$ 329
|
|
Depreciation
and amortization
|
|
|
45
|
|
|
|
43
|
|
Interest
expense
|
|
|
32
|
|
|
|
34
|
|
Early
extinguishment of debt
|
|
|
2
|
(d)
|
|
|
-
|
|
Interest
income
|
|
|
(2)
|
|
|
|
(19)
|
(f)
|
Income
before income taxes
|
|
|
256
|
|
|
|
271
|
|
Provision
for income taxes
|
|
|
97
|
|
|
|
96
|
|
Net
income
|
|
|
159
|
|
|
|
175
|
|
Net
loss attributable to noncontrolling interest
|
|
|
-
|
|
|
|
-
|
|
Net
income attributable to Wyndham shareholders
|
|
|
$ 159
|
|
|
|
$ 175
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
(a)
|
Includes
the elimination of transactions between segments.
|
(b)
|
Includes
$1 million of costs incurred in connection with the Company's
acquisition of Shell Vacations during September 2012.
|
(c)
|
Includes
$1 million of a net expense and $8 million of a net benefit during the
three months ended September 30, 2012 and 2011, respectively, related
to the resolution of and adjustment to certain contingent liabilities
and assets resulting from our separation from Cendant.
|
(d)
|
Represents
costs incurred in connection with the early repurchase of a portion of
the Company's 9.875% senior unsecured notes and 6.00% senior unsecured
notes.
|
(e)
|
Includes
a $4 million charge related to the write-off of foreign exchange
translation adjustment associated with liquidation of a foreign entity.
|
(f)
|
Includes
$16 million of interest income related to a refund of value added taxes.
|
|
|
The
following tables summarize net revenues and Adjusted EBITDA for
reportable segments for the three months ended September 30, 2012 and
2011 (for a description of adjustments by segment, see Table 7):
|
|
|
|
Three
Months Ended September 30,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
Net Revenues
|
|
EBITDA
|
|
Net Revenues
|
|
EBITDA
|
|
Lodging
|
$ 249
|
|
$ 86
|
|
$ 222
|
|
$ 67
|
|
Vacation
Exchange and Rentals
|
420
|
|
123
|
|
436
|
|
135
|
|
Vacation
Ownership
|
608
|
|
155
|
|
559
|
|
149
|
|
Total
Reportable Segments
|
1,277
|
|
364
|
|
1,217
|
|
351
|
|
Corporate
and Other
|
(12)
|
|
(29)
|
|
(5)
|
|
(26)
|
|
Total
Company
|
$ 1,265
|
|
$ 335
|
|
$ 1,212
|
|
$ 325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 attributable to
Wyndham shareholders for the nine months ended September 30, 2012 and
2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30,
|
|
|
|
2012
|
|
2011
|
|
|
|
Net Revenues
|
|
EBITDA
|
|
Net Revenues
|
|
EBITDA
|
|
Lodging
|
$ 667
|
|
$ 210
|
(b)
|
$ 561
|
|
$ 160
|
(g)
|
Vacation
Exchange and Rentals
|
1,129
|
|
300
|
(c)
|
1,152
|
|
330
|
(h)
|
Vacation
Ownership
|
1,679
|
|
407
|
(d)
|
1,550
|
|
376
|
(i)
|
Total
Reportable Segments
|
3,475
|
|
917
|
|
3,263
|
|
866
|
|
Corporate
and Other (a)
|
(35)
|
|
(76)
|
(e)
|
(10)
|
|
(57)
|
(e)
|
Total
Company
|
$ 3,440
|
|
$ 841
|
|
$ 3,253
|
|
$ 809
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income Attributable to Wyndham shareholders
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
$ 841
|
|
|
|
$ 809
|
|
Depreciation
and amortization
|
|
|
136
|
|
|
|
133
|
|
Interest
expense
|
|
|
98
|
|
|
|
103
|
(j)
|
Early
extinguishment of debt
|
|
|
108
|
(f)
|
|
|
12
|
(k)
|
Interest
income
|
|
|
(7)
|
|
|
|
(22)
|
(l)
|
Income
before income taxes
|
|
|
506
|
|
|
|
583
|
|
Provision
for income taxes
|
|
|
187
|
|
|
|
222
|
|
Net
income
|
|
|
319
|
|
|
|
361
|
|
Net
loss attributable to noncontrolling interest
|
|
|
1
|
|
|
|
-
|
|
Net
income attributable to Wyndham shareholders
|
|
|
$ 320
|
|
|
|
$ 361
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
(a)
|
Includes
the elimination of transactions between segments.
|
(b)
|
Includes
a $1 million benefit from the recovery of a previously recorded
impairment charge.
|
(c)
|
Includes
a $2 million benefit related to the reversal of an allowance associated
with a previously divested asset.
|
(d)
|
Includes
$1 million of costs incurred in connection with the Company's
acquisition of Shell Vacations during September 2012.
|
(e)
|
Includes
$3 million and $16 million of a net benefit during the nine months
ended September 30, 2012 and 2011, respectively, related to the
resolution of and adjustment to certain contingent liabilities and
assets resulting from 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)
|
Includes
a non-cash impairment charge of $13 million to reduce the value of an
international joint venture.
|
(h)
|
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.
|
(i)
|
Includes
a $1 million benefit for the reversal of costs incurred as a result of
various strategic initiatives commenced by the Company during 2008.
|
(j)
|
Includes
$3 million of interest related to value added tax accruals.
|
(k)
|
Represents
costs incurred for the early repurchase of a portion of the Company's
convertible notes.
|
(l)
|
Includes
$16 million of interest income related to a refund value added taxes.
|
|
|
The
following tables summarize net revenues and Adjusted EBITDA for
reportable segments for the nine months ended September 30, 2012 and
2011 (for a description of adjustments by segment, see Table 7):
|
|
|
|
Nine
Months Ended September 30,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
Net Revenues
|
|
EBITDA
|
|
Net Revenues
|
|
EBITDA
|
|
Lodging
|
$ 667
|
|
$ 209
|
|
$ 561
|
|
$ 173
|
|
Vacation
Exchange and Rentals
|
1,129
|
|
298
|
|
1,152
|
|
310
|
|
Vacation
Ownership
|
1,679
|
|
408
|
|
1,550
|
|
375
|
|
Total
Reportable Segments
|
3,475
|
|
915
|
|
3,263
|
|
858
|
|
Corporate
and Other
|
(35)
|
|
(79)
|
|
(10)
|
|
(73)
|
|
Total
Company
|
$ 3,440
|
|
$ 836
|
|
$ 3,253
|
|
$ 785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
Service
and membership fees
|
|
$ 566
|
|
$ 584
|
|
$ 1,558
|
|
$ 1,579
|
|
|
Vacation
ownership interest sales
|
|
373
|
|
320
|
|
987
|
|
855
|
|
|
Franchise
fees
|
|
168
|
|
160
|
|
449
|
|
395
|
|
|
Consumer
financing
|
|
106
|
|
105
|
|
311
|
|
310
|
|
|
Other
|
|
52
|
|
43
|
|
135
|
|
114
|
|
Net
revenues
|
|
1,265
|
|
1,212
|
|
3,440
|
|
3,253
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
495
|
(b)
|
490
|
(d)
|
1,389
|
(b)
|
1,358
|
(d)
|
|
Cost
of vacation ownership interests
|
|
45
|
|
35
|
|
115
|
|
115
|
|
|
Consumer
financing interest
|
|
23
|
|
21
|
|
69
|
|
67
|
|
|
Marketing
and reservation
|
|
197
|
|
182
|
|
554
|
|
472
|
|
|
General
and administrative(a)
|
|
172
|
|
157
|
|
481
|
|
422
|
(i)
|
|
Asset
impairments
|
|
-
|
|
-
|
|
-
|
|
13
|
(j)
|
|
Restructuring
|
|
-
|
|
-
|
|
-
|
|
6
|
(k)
|
|
Depreciation
and amortization
|
|
45
|
|
43
|
|
136
|
|
133
|
|
Total
expenses
|
|
977
|
|
928
|
|
2,744
|
|
2,586
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
288
|
|
284
|
|
696
|
|
667
|
|
Other
income, net
|
|
-
|
|
(2)
|
|
(9)
|
(g)
(h)
|
(9)
|
(l)
|
Interest
expense
|
|
32
|
|
34
|
|
98
|
|
103
|
(m)
|
Early
extinguishment of debt
|
|
2
|
(c)
|
-
|
|
108
|
(c)
|
12
|
(n)
|
Interest
income
|
|
(2)
|
|
(19)
|
(e)
|
(7)
|
|
(22)
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
256
|
|
271
|
|
506
|
|
583
|
|
Provision
for income taxes
|
|
97
|
|
96
|
(f)
|
187
|
|
222
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
159
|
|
175
|
|
319
|
|
361
|
|
Net
loss attributable to noncontrolling interest
|
|
-
|
|
-
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Wyndham shareholders
|
|
$ 159
|
|
$ 175
|
|
$ 320
|
|
$ 361
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 1.13
|
|
$ 1.10
|
|
$ 2.20
|
|
$ 2.17
|
|
|
Diluted
|
|
1.11
|
|
1.08
|
|
2.16
|
|
2.12
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
141
|
|
159
|
|
145
|
|
166
|
|
|
Diluted
|
|
144
|
|
162
|
|
148
|
|
170
|
|
__________
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes
$1 million of a net expense and $8 million of a net benefit during the
three months ended September 30, 2012 and 2011, respectively, and $3
million and $12 million of a net benefit during the nine months ended
September 30, 2012 and 2011, respectively, related to the resolution of
and adjustment to certain contingent liabilities and assets resulting
from our separation from Cendant.
|
|
(b)
|
Includes
$1 million of costs incurred in connection with the Company's
acquisition of Shell Vacations (September 2012).
|
|
(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)
|
Includes
a $4 million charge related to the write-off of foreign exchange
translation adjustments associated with the liquidation of a foreign
entity.
|
|
(e)
|
Includes
$16 million of interest income related to the refund of value added
taxes.
|
|
(f)
|
Includes
a benefit of $13 million related to the reversal of a tax valuation
allowance.
|
|
(g)
|
Includes
a $1 million benefit from the recovery of a previously recorded
impairment charge.
|
|
(h)
|
Includes
a $2 million benefit related to the reversal of an allowance associated
with a previously divested asset.
|
|
(i)
|
Includes
a $31 million net benefit resulting from a refund of value added taxes.
|
|
(j)
|
Represents
a non-cash impairment charge related to a write-down of an
international joint venture.
|
|
(k)
|
Includes
$7 million of costs incurred as a result of a strategic initiative
commenced by the Company during 2010 and a $1 million benefit for the
reversal of costs incurred as a result of various strategic initiatives
commenced by the Company during 2008.
|
|
(l)
|
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.
|
|
(m)
|
Includes
$3 million of interest related to value added tax accruals.
|
|
(n)
|
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
|
608,300
|
618,100
|
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
|
$ 37.23
|
$ 40.39
|
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
|
3,670
|
3,672
|
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
|
$
177.07
|
$
171.14
|
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
|
325
|
390
|
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
|
$
524.40
|
$
635.44
|
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 (c)
|
|
|
|
|
|
|
|
Gross
Vacation Ownership Interest (VOI) Sales (in 000s) (d)
|
2012
|
$
384,000
|
$
460,000
|
$
502,000
|
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 (e)
|
2012
|
148,000
|
186,000
|
207,000
|
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) (e)
|
2012
|
$ 2,414
|
$ 2,361
|
$ 2,315
|
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), two tuck-in
acquisitions (third quarter 2011) and Smoky Mountain Property
Management Group (August 2012) from the acquisition dates forward.
Therefore, the operating statistics are not presented on a comparable
basis.
|
|
(c)
|
Includes
the impact of the acquisition of Shell Vacations (September 2012) from
the acquisition date forward. Therefore, the operating statistics are
not presented on a comparable basis.
|
|
(d)
|
Includes
gross VOI sales under the Company's Wyndham Asset Affiliate Model
(WAAM) 1.0 beginning in the first quarter of 2010 and WAAM 2.0
beginning in the second quarter of 2012 (see Table 9 for a
reconciliation of gross VOI sales to vacation ownership interest sales).
|
|
(e)
|
Includes
the impact of WAAM 1.0 related tours beginning in the first quarter of
2010 and WAAM 2.0 related tours beginning in the second quarter of 2012.
|
|
|
|
|
|
|
|
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
|
7,170
|
7,260
|
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
|
$
100,000
|
$
124,000
|
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 1.0 (in 000s) (c)
|
2012
|
$
17,000
|
$
18,000
|
$ 5,000
|
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
1.0 Commission Revenues (in 000s)
|
2012
|
$
12,000
|
$
11,000
|
$ 4,000
|
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
|
|
|
|
|
|
|
|
|
|
Sales
under WAAM 2.0 (in 000s) (d)
|
2012
|
$ -
|
$
12,000
|
$
57,000
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 1.0 for which the Company
earns commission revenue (WAAM 1.0 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.
|
|
|
(d)
|
Represents
gross VOI sales under the Company's WAAM 2.0 which enables the Company
to acquire and own completed timeshare units close to the timing of the
sales of such units. This significantly reduces the period between the
deployment of capital to acquire inventory and the subsequent return on
investment which occurs at the time of its sale to a timeshare
purchaser. The Company implemented this sales model during the second
quarter of 2012 and as such, there is no historical data prior to 2012.
|
|
|
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 and (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 paid annual membership dues as of the end of the period or
within the allowed grace period. 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
|
$ 80
|
88
|
N/A
|
N/A
|
|
$ 58
|
$ 75
|
$ 85
|
$ 66
|
$ 284
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
68
|
99
|
98
|
N/A
|
N/A
|
|
54
|
75
|
94
|
76
|
299
|
|
Hotel
Management Reimbursable Revenues (b)
|
21
|
22
|
25
|
N/A
|
N/A
|
|
19
|
19
|
21
|
20
|
79
|
|
Inter-segment
Trademark Fees (c)
|
8
|
9
|
9
|
N/A
|
N/A
|
|
1
|
2
|
3
|
4
|
10
|
|
Owned
Hotel Revenues
|
8
|
8
|
7
|
N/A
|
N/A
|
|
-
|
-
|
-
|
5
|
5
|
|
Ancillary
Revenues (d)
|
18
|
15
|
22
|
N/A
|
N/A
|
|
17
|
19
|
19
|
17
|
72
|
|
Total
Lodging
|
185
|
233
|
249
|
N/A
|
N/A
|
|
149
|
190
|
222
|
188
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
188
|
162
|
157
|
N/A
|
N/A
|
|
194
|
168
|
161
|
150
|
673
|
|
Rental
Revenues
|
159
|
170
|
248
|
N/A
|
N/A
|
|
150
|
180
|
260
|
125
|
715
|
|
Ancillary
Revenues (e)
|
|
14
|
16
|
15
|
N/A
|
N/A
|
|
12
|
13
|
15
|
16
|
56
|
|
Total
Vacation Exchange and Rentals
|
361
|
348
|
420
|
N/A
|
N/A
|
|
356
|
361
|
436
|
291
|
1,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership Interest Sales
|
271
|
342
|
373
|
N/A
|
N/A
|
|
222
|
313
|
320
|
295
|
1,150
|
|
Consumer
Financing
|
|
103
|
102
|
106
|
N/A
|
N/A
|
|
102
|
103
|
105
|
105
|
415
|
|
Property
Management Fees
|
|
110
|
108
|
117
|
N/A
|
N/A
|
|
110
|
108
|
105
|
101
|
424
|
|
WAAM
1.0 Commissions
|
|
12
|
11
|
4
|
N/A
|
N/A
|
|
10
|
11
|
23
|
21
|
65
|
|
Ancillary
Revenues (f)
|
|
5
|
7
|
8
|
N/A
|
N/A
|
|
6
|
6
|
6
|
5
|
23
|
|
Total
Vacation Ownership
|
|
501
|
570
|
608
|
N/A
|
N/A
|
|
450
|
541
|
559
|
527
|
2,077
|
Total
Reportable Segments
|
|
$
1,047
|
$
1,151
|
$
1,277
|
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
1.0 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 1.0 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, 2012
|
|
June
30, 2012
|
|
March
31, 2012
|
|
December
31, 2011
|
|
September
30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized
vacation ownership debt (a)
|
|
|
|
|
|
|
|
|
|
|
Term
notes
|
|
$ 1,702
|
|
$ 1,634
|
|
$ 1,896
|
|
$ 1,625
|
|
$ 1,512
|
Bank
conduit facility (b)
|
|
220
|
|
220
|
|
104
|
|
237
|
|
218
|
Securitized
vacation ownership debt (c)
|
|
1,922
|
|
1,854
|
|
2,000
|
|
1,862
|
|
1,730
|
Less:
Current portion of securitized vacation ownership debt
|
|
206
|
|
191
|
|
206
|
|
196
|
|
179
|
Long-term
securitized vacation ownership debt
|
|
$ 1,716
|
|
$ 1,663
|
|
$ 1,794
|
|
$ 1,666
|
|
$ 1,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
Revolving
credit facility (due July 2016) (d)
|
|
$ 270
|
|
$ 81
|
|
$ 47
|
|
$ 218
|
|
$ 169
|
3.50%
convertible notes (due May 2012) (e)
|
|
-
|
|
-
|
|
44
|
|
36
|
|
27
|
9.875%
senior unsecured notes (due May 2014)
|
|
42
|
|
42
|
|
42
|
|
243
|
|
243
|
6.00%
senior unsecured notes (due December 2016)
|
|
361
|
|
362
|
|
362
|
|
811
|
|
812
|
2.95%
senior unsecured notes (due March 2017)
|
|
298
|
|
298
|
|
298
|
|
-
|
|
-
|
5.75%
senior unsecured notes (due February 2018)
|
|
248
|
|
248
|
|
247
|
|
247
|
|
247
|
7.375%
senior unsecured notes (due March 2020)
|
|
248
|
|
248
|
|
248
|
|
247
|
|
247
|
5.625%
senior unsecured notes (due March 2021)
|
|
246
|
|
245
|
|
245
|
|
245
|
|
245
|
4.25%
senior unsecured notes (due March 2022)
|
|
644
|
|
644
|
|
643
|
|
-
|
|
-
|
Vacation
rentals capital leases
|
|
104
|
|
95
|
|
103
|
|
102
|
|
108
|
Other
|
|
68
|
|
3
|
|
1
|
|
4
|
|
1
|
Total
debt
|
|
2,529
|
|
2,266
|
|
2,280
|
|
2,153
|
|
2,099
|
Less:
Current portion of debt
|
|
64
|
|
11
|
|
54
|
|
46
|
|
37
|
Long-term
debt
|
|
$ 2,465
|
|
$ 2,255
|
|
$ 2,226
|
|
$ 2,107
|
|
$ 2,062
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 August 2014 and borrowing capacity of $650 million. As of
September 30, 2012, this facility had remaining borrowing capacity of
$430 million.
|
(c)
|
This
debt is collateralized by $2,517 million, $2,490 million, $2,622
million, $2,638 million and $2,502 million of underlying vacation
ownership contract receivables and related assets as of September 30,
2012, June 30, 2012, March 31, 2012, December 31, 2011 and September
30, 2011, respectively.
|
(d)
|
Represents
a $1.0 billion revolving credit facility that expires on July 15, 2016.
As of September 30, 2012, the Company had $10 million of outstanding
letters of credit and a remaining borrowing capacity of $720 million.
|
(e)
|
Represents
convertible notes issued by the Company during May 2009 and repaid by
the Company during May 2012.
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
(1
of 2)
|
Wyndham
Worldwide Corporation
|
BRAND
SYSTEM DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of and For the Three Months Ended September 30, 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
|
109
|
27,473
|
61.8%
|
$107.95
|
$66.69
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
90
|
12,955
|
68.0%
|
$94.63
|
$64.38
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
163
|
14,981
|
65.5%
|
$85.56
|
$56.00
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
94
|
9,272
|
65.6%
|
$73.49
|
$48.24
|
|
|
|
|
|
|
|
Ramada
|
843
|
114,227
|
57.1%
|
$80.14
|
$45.72
|
|
|
|
|
|
|
|
Baymont
|
257
|
21,642
|
57.2%
|
$66.12
|
$37.79
|
|
|
|
|
|
|
|
Days
Inn
|
1,832
|
147,224
|
55.3%
|
$66.81
|
$36.91
|
|
|
|
|
|
|
|
Super
8
|
2,312
|
147,054
|
62.6%
|
$56.59
|
$35.44
|
|
|
|
|
|
|
|
Howard
Johnson
|
445
|
45,072
|
52.4%
|
$65.91
|
$34.55
|
|
|
|
|
|
|
|
Travelodge
|
438
|
32,225
|
56.5%
|
$72.92
|
$41.17
|
|
|
|
|
|
|
|
Microtel
Inns & Suites by Wyndham
|
309
|
22,085
|
61.1%
|
$65.51
|
$40.06
|
|
|
|
|
|
|
|
Knights
Inn
|
358
|
22,468
|
45.7%
|
$46.47
|
$21.22
|
|
|
|
|
|
|
|
Dream
|
5
|
990
|
71.1%
|
$210.71
|
$149.86
|
|
|
|
|
|
|
|
Night
|
2
|
422
|
43.4%
|
$111.74
|
$48.49
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,257
|
618,090
|
58.1%
|
$69.53
|
$40.39
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
184
|
23,152
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,441
|
641,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 by Wyndham
|
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
|
|
|
|
_______________
|
|
|
|
|
|
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, 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
|
109
|
27,473
|
60.2%
|
$110.12
|
$66.34
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
90
|
12,955
|
62.0%
|
$97.75
|
$60.63
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
163
|
14,981
|
62.9%
|
$83.64
|
$52.64
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
94
|
9,272
|
63.6%
|
$74.38
|
$47.30
|
|
|
|
|
|
|
|
Ramada
|
843
|
114,227
|
53.4%
|
$78.57
|
$41.96
|
|
|
|
|
|
|
|
Baymont
|
257
|
21,642
|
52.3%
|
$63.86
|
$33.42
|
|
|
|
|
|
|
|
Days
Inn
|
1,832
|
147,224
|
49.7%
|
$63.57
|
$31.60
|
|
|
|
|
|
|
|
Super
8
|
2,312
|
147,054
|
56.0%
|
$53.72
|
$30.06
|
|
|
|
|
|
|
|
Howard
Johnson
|
445
|
45,072
|
48.7%
|
$62.61
|
$30.49
|
|
|
|
|
|
|
|
Travelodge
|
438
|
32,225
|
49.9%
|
$67.37
|
$33.63
|
|
|
|
|
|
|
|
Microtel
Inns & Suites by Wyndham
|
309
|
22,085
|
56.1%
|
$62.35
|
$34.97
|
|
|
|
|
|
|
|
Knights
Inn
|
358
|
22,468
|
41.6%
|
$43.54
|
$18.11
|
|
|
|
|
|
|
|
Dream
|
5
|
990
|
73.1%
|
$208.71
|
$152.63
|
|
|
|
|
|
|
|
Night
|
2
|
422
|
64.1%
|
$173.99
|
$111.49
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,257
|
618,090
|
53.1%
|
$67.46
|
$35.80
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
184
|
23,152
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,441
|
641,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 by Wyndham
|
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
|
|
|
|
_______________
|
|
|
|
|
|
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
|
Impairment
|
Allowance
|
Acquisition
|
Adjusted
|
Three
months ended March 31, 2012
|
|
Net
Revenues
|
|
EBITDA
|
Adjustments
(b)
|
Recovery
(c)
|
Reversal
(d)
|
Costs
(e)
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30, 2012
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 233
|
|
$ 75
|
$ -
|
$ (1)
|
$ -
|
$ -
|
$ 74
|
Vacation
Exchange and Rentals
|
|
348
|
|
82
|
-
|
-
|
-
|
-
|
82
|
Vacation
Ownership
|
|
570
|
|
150
|
-
|
-
|
-
|
-
|
150
|
Total
Reportable Segments
|
|
1,151
|
|
307
|
-
|
(1)
|
-
|
-
|
306
|
Corporate
and Other (a)
|
|
(12)
|
|
(25)
|
-
|
-
|
-
|
-
|
(25)
|
Total
Company
|
|
$ 1,139
|
|
$ 282
|
$ -
|
$ (1)
|
$ -
|
$ -
|
$ 281
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$ 249
|
|
$ 86
|
$ -
|
$ -
|
$ -
|
$ -
|
$ 86
|
Vacation
Exchange and Rentals
|
|
420
|
|
123
|
-
|
-
|
-
|
-
|
123
|
Vacation
Ownership
|
|
608
|
|
154
|
-
|
-
|
-
|
1
|
155
|
Total
Reportable Segments
|
|
1,277
|
|
363
|
-
|
-
|
-
|
1
|
364
|
Corporate
and Other (a)
|
|
(12)
|
|
(30)
|
1
|
-
|
-
|
-
|
(29)
|
Total
Company
|
|
$ 1,265
|
|
$ 333
|
$ 1
|
$ -
|
$ -
|
$ 1
|
$ 335
|
________________
|
|
|
|
|
|
|
|
|
|
(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 the recovery of a previously recorded impairment charge.
|
(d)
|
Relates
to a benefit from the reversal of an allowance associated with a
previously divested asset.
|
(e)
|
Relates
to costs incurred in connection with the Company's acquisition of Shell
Vacations (September 2012).
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
-
|
-
|
|
-
|
|
-
|
-
|
(26)
|
Total
Company
|
|
$ 1,000
|
|
$ 148
|
$ -
|
$ 44
|
|
$ -
|
|
$ -
|
$ -
|
$ 192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
(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.
|
(h)
|
Relates
to non-cash impairment charges primarily related to the write-down of
certain franchise and management agreements and development advance
notes.
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
(1
of 4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
NON-GAAP
FINANCIAL INFORMATION
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy
Adjustments
|
|
Acquisition
Costs
|
|
Early
Extinguishment of Debt
|
|
|
|
|
|
As
Reported
|
|
|
|
|
As
Adjusted
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 566
|
|
|
|
|
|
|
|
$ 566
|
|
Vacation
ownership interest sales
|
|
373
|
|
|
|
|
|
|
|
373
|
|
Franchise
fees
|
|
168
|
|
|
|
|
|
|
|
168
|
|
Consumer
financing
|
|
106
|
|
|
|
|
|
|
|
106
|
|
Other
|
|
52
|
|
|
|
|
|
|
|
52
|
Net
revenues
|
|
1,265
|
|
-
|
|
-
|
|
-
|
|
1,265
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
495
|
|
|
|
(1)
|
(b)
|
|
|
494
|
|
Cost
of vacation ownership interests
|
|
45
|
|
|
|
|
|
|
|
45
|
|
Consumer
financing interest
|
|
23
|
|
|
|
|
|
|
|
23
|
|
Marketing
and reservation
|
|
197
|
|
|
|
|
|
|
|
197
|
|
General
and administrative
|
|
172
|
|
(1)
|
(a)
|
|
|
|
|
171
|
|
Depreciation
and amortization
|
|
45
|
|
|
|
|
|
|
|
45
|
Total
expenses
|
|
977
|
|
(1)
|
|
(1)
|
|
-
|
|
975
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
288
|
|
1
|
|
1
|
|
-
|
|
290
|
Interest
expense
|
|
32
|
|
|
|
|
|
|
|
32
|
Early
extinguishment of debt
|
|
2
|
|
|
|
|
|
(2)
|
(c)
|
-
|
Interest
income
|
|
(2)
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
256
|
|
1
|
|
1
|
|
2
|
|
260
|
Provision
for income taxes
|
|
97
|
|
-
|
(d)
|
-
|
(d)
|
1
|
(d)
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Wyndham shareholders
|
|
$ 159
|
|
$ 1
|
|
$ 1
|
|
$ 1
|
|
$ 162
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 1.13
|
|
$ -
|
|
$ 0.01
|
|
$ 0.01
|
|
$ 1.15
|
|
Diluted
|
|
1.11
|
|
-
|
|
0.01
|
|
0.01
|
|
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
141
|
|
141
|
|
141
|
|
141
|
|
141
|
|
Diluted
|
|
144
|
|
144
|
|
144
|
|
144
|
|
144
|
__________
|
|
|
|
|
|
|
|
|
|
|
(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 costs incurred in connection with the Company's acquisition of Shell
Vacations (September 2012).
|
(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 4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
NON-GAAP
FINANCIAL INFORMATION
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
Recovery
|
|
Legacy
Adjustments
|
|
Allowance
Reversal
|
|
Acquisition
Costs
|
|
Early
Extinguishment of Debt
|
|
|
|
|
|
As
Reported
|
|
|
|
|
|
As
Adjusted
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 1,558
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,558
|
|
Vacation
ownership interest sales
|
|
987
|
|
|
|
|
|
|
|
|
|
|
|
987
|
|
Franchise
fees
|
|
449
|
|
|
|
|
|
|
|
|
|
|
|
449
|
|
Consumer
financing
|
|
311
|
|
|
|
|
|
|
|
|
|
|
|
311
|
|
Other
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
135
|
Net
revenues
|
|
3,440
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
1,389
|
|
|
|
|
|
|
|
(1)
|
(d)
|
|
|
1,388
|
|
Cost
of vacation ownership interests
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
Consumer
financing interest
|
|
69
|
|
|
|
|
|
|
|
|
|
|
|
69
|
|
Marketing
and reservation
|
|
554
|
|
|
|
|
|
|
|
|
|
|
|
554
|
|
General
and administrative
|
|
481
|
|
|
|
3
|
(b)
|
|
|
|
|
|
|
484
|
|
Depreciation
and amortization
|
|
136
|
|
|
|
|
|
|
|
|
|
|
|
136
|
Total
expenses
|
|
2,744
|
|
-
|
|
3
|
|
-
|
|
(1)
|
|
-
|
|
2,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
696
|
|
-
|
|
(3)
|
|
-
|
|
1
|
|
-
|
|
694
|
Other
income, net
|
|
(9)
|
|
1
|
(a)
|
|
|
2
|
(c)
|
|
|
|
|
(6)
|
Interest
expense
|
|
98
|
|
|
|
|
|
|
|
|
|
|
|
98
|
Early
extinguishment of debt
|
|
108
|
|
|
|
|
|
|
|
|
|
(108)
|
(e)
|
-
|
Interest
income
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
506
|
|
(1)
|
|
(3)
|
|
(2)
|
|
1
|
|
108
|
|
609
|
Provision
for income taxes
|
|
187
|
|
(1)
|
(f)
|
-
|
(f)
|
-
|
(f)
|
-
|
(f)
|
44
|
(f)
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
319
|
|
-
|
|
(3)
|
|
(2)
|
|
1
|
|
64
|
|
379
|
Net
loss attributable to noncontrolling interest
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Wyndham shareholders
|
|
$ 320
|
|
$ -
|
|
$ (3)
|
|
$ (2)
|
|
$ 1
|
|
$ 64
|
|
$ 380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 2.20
|
|
$ -
|
|
$
(0.01)
|
|
$
(0.01)
|
|
$ 0.01
|
|
$ 0.44
|
|
$ 2.62
|
|
Diluted
|
|
2.16
|
|
-
|
|
(0.01)
|
|
(0.01)
|
|
0.01
|
|
0.43
|
|
2.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
145
|
|
145
|
|
145
|
|
145
|
|
145
|
|
145
|
|
145
|
|
Diluted
|
|
148
|
|
148
|
|
148
|
|
148
|
|
148
|
|
148
|
|
148
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
EPS amounts may not add due to rounding.
|
|
(a)
|
Relates
to the recovery of a previously recorded impairment charge.
|
(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.
|
(d)
|
Relates
to costs incurred in connection with the Company's acquisition of Shell
Vacations (September 2012).
|
(e)
|
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.
|
(f)
|
Relates
to the tax effect of the adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
of 4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
NON-GAAP
FINANCIAL INFORMATION
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
Valuation Allowance
|
|
Legacy
Adjustments
|
|
VAT
Adjustments
|
|
CTA
Writeoff
|
|
|
|
|
|
As
Reported
|
|
|
|
|
|
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 attributable to Wyndham shareholders
|
|
$ 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4
of 4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham
Worldwide Corporation
|
NON-GAAP
FINANCIAL INFORMATION
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Early
Extinguishment of Debt
|
|
Tax
Valuation Allowance
|
|
Legacy
Adjustments
|
|
Asset
Impairment
|
|
Restructuring
Costs
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
|
|
|
|
|
VAT
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 attributable to Wyndham shareholders
|
|
$ 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
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 and development advances. 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 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,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
|
$ 808
|
|
$ 860
|
|
|
Less:
Property and equipment additions
|
|
(123)
|
|
(153)
|
|
|
Less:
Development advances
|
|
(3)
|
|
(4)
|
|
|
Free
cash flow
|
|
$ 682
|
|
$ 703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (a)
|
|
$ 384
|
$ 460
|
$ 502
|
N/A
|
N/A
|
Less:
Sales under WAAM 1.0
|
|
(17)
|
(18)
|
(5)
|
N/A
|
N/A
|
Gross
VOI sales, net of WAAM 1.0 sales
|
|
367
|
442
|
497
|
N/A
|
N/A
|
Less:
Loan loss provision
|
|
(96)
|
(100)
|
(124)
|
N/A
|
N/A
|
Vacation
ownership interest sales (a)
|
|
$ 271
|
$ 342
|
$ 373
|
N/A
|
N/A
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 319
|
$ 412
|
$ 455
|
$ 409
|
$ 1,595
|
Less:
Sales under WAAM 1.0
|
|
(18)
|
(19)
|
(38)
|
(31)
|
(106)
|
Gross
VOI sales, net of WAAM 1.0 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 WAAM 1.0
|
|
(5)
|
(13)
|
(20)
|
(14)
|
(51)
|
Gross
VOI sales, net of WAAM 1.0 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 (b)
|
|
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)
Includes VOI sales under WAAM 2.0 beginning in the
second quarter of 2012.
|
(b)
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
|
$ 20
|
$ 22
|
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.
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|
|
|
|
|
|
|
|