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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 revenue and "EBITDA," which
is defined as net income before depreciation
and amortization, interest
expense (excluding interest on securitized
vacation ownership debt) and
income taxes, each of which is presented
on the Company's Consolidated and
Combined Statements of Income. The
Company's presentation of EBITDA may
not be comparable to similarly-titled
measures used by other companies.
The following tables summarize revenues
and EBITDA for reportable
segments, as well as reconcile EBITDA
to net income for the three month
and twelve month periods ended December
31, 2006 and 2005:
Three Months Ended December 31,
-----------------------------------
2006
2005
----------------- ----------------
Revenues EBITDA(a) Revenues EBITDA
-------- ------ -------- ------
Lodging
$152 $47 $144
$45
Vacation Exchange and Rentals
266 59
235 46
Vacation Ownership
554 89
481 88
------- ------ -------- -----
Total
Reportable Segments
972 195
860 179
Corporate and Other (*)
(2) 6
1 (2)
------- ------ -------- -----
Total
Company
$970 $201 $861
$177
======= ====== ======== =====
Reconciliation of EBITDA to Net
Income
-------------------------------
EBITDA
$201
$177
Depreciation and amortization
41
33
Interest expense (income), net
14
(8)
------
-----
Income before income taxes
146
152
Provision for income taxes
54
61
------
-----
Net income
$92
$91
======
=====
Twelve Months Ended December 31,
-----------------------------------
2006
2005
--------------- ----------------
Revenues EBITDA(b) Revenues EBITDA
-------- ------ -------- -------
Lodging
$661 $208 $533
$197
Vacation Exchange and Rentals
1,119 265 1,068
284
Vacation Ownership
2,068 325 1,874
283
-------- ------ -------- -------
Total
Reportable Segments
3,848 798 3,475
764
Corporate and Other (*)
(6) (73) (4)
(13)
-------- ------ -------- -------
Total
Company
$3,842 $725 $3,471
$751
======== ====== ======== =======
Reconciliation of EBITDA to Net
Income
-------------------------------
EBITDA
$725
$751
Depreciation and amortization
148
131
Interest expense (income), net
35
(6)
------
-------
Income before income taxes
542
626
Provision for income taxes
190
195
------
-------
Income before cumulative effect of
accounting change
352
431
Cumulative effect of accounting
change, net of tax
(65)
-
------
-------
Net income
$287
$431
======
=======
---------------
(*)Includes the elimination of transactions
between segments; excludes
incremental stand
alone company costs for 2005 and through July 31,
2006.
(a)Includes separation and related
costs of $1 million, $15 million and
$7 million for Lodging,
Vacation Ownership and Corporate and Other,
respectively.
(b)Includes separation and related
costs of $2 million, $3 million, $18
million and $76
million for Lodging, Vacation Exchange and Rentals,
Vacation Ownership
and Corporate and Other, respectively.
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Twelve Months
Ended
Ended
December 31, December 31,
-------------- ---------------
2006 2005 2006
2005
------ ------ ------ ------
Revenues
Vacation ownership
interest sales $379 $358
$1,461 $1,379
Service fees and
membership
348 305 1,437
1,288
Franchise fees
112 105 501
434
Consumer financing
79 64 291
234
Other
52 29 152
136
------ ------ ------ ------
Net revenues
970 861 3,842
3,471
------ ------ ------ ------
Expenses
Operating
391 320 1,474
1,199
Cost of vacation
ownership
interests
78 90 317
341
Marketing and reservation
168 142 734
628
General and administrative
(a) 109
101 493 424
Provision for loan
losses
- 31
- 128
Separation and related
costs (b) 23
- 99
-
Depreciation and
amortization 41
33 148 131
------ ------ ------ ------
Total expenses
810 717 3,265
2,851
------ ------ ------ ------
Operating income
160 144 577
620
Interest expense (income), net
14 (8) 35
(6)
------ ------ ------ ------
Income before income taxes
146 152 542
626
Provision for income taxes
54 61 190
195
------ ------ ------ ------
Income before cumulative effect of
accounting change
92 91 352
431
Cumulative effect of accounting
change, net of tax (c)
- - (65)
-
------ ------ ------ ------
Net income
$92 $91 $287
$431
====== ====== ====== ======
Earnings per share
Basic
Income before cumulative
effect of
accounting
change
$0.48 $0.45 $1.78 $2.15
Cumulative effect
of accounting
change
- - (0.33)
-
------ ------ ------ ------
Net income
$0.48 $0.45 $1.45 $2.15
====== ====== ====== ======
Diluted
Income before cumulative
effect of
accounting
change
$0.48 $0.45 $1.77 $2.15
Cumulative effect
of accounting
change
- - (0.33)
-
------ ------ ------ ------
Net income
$0.48 $0.45 $1.44 $2.15
====== ====== ====== ======
Weighted average shares outstanding
Basic
193 200 198
200
Diluted
194 200 199
200
---------------
(a)Includes $32 million related to
the net benefit from the resolution of
certain contingent
liabilities during the three and twelve months ended
December 31, 2006.
(b)Represents costs that the Company
incurred in connection with the
execution of its
separation from its former parent, Cendant (now
Avis Budget Group,
Inc.). Such amounts, net of tax, were $22
million and $69
million during the three and twelve months ended
December 31, 2006,
respectively.
(c)Represents non-cash charges to
reflect the cumulative effect of
adopting Statement
of Financial Accounting Standards No. 152,
"Accounting for
Real Estate Time-Sharing Transactions," on January
1, 2006.
Table 3
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1
Q2 Q3
Q4 Full Year
Lodging(a)
Weighted Average
Rooms Available 2006 520,600
531,000 529,200 529,900(b) 527,700(b)
2005 517,400 512,000 511,500 535,100
519,000
2004 512,000 510,700 507,300 503,000
508,200
2003 532,900 525,600 522,400 518,200
524,700
Number of
Properties
2006 6,300 6,440
6,420 6,470(b) N/A
2005 6,400 6,380
6,350 6,350
N/A
2004 6,380 6,390
6,350 6,400
N/A
2003 6,500 6,480
6,430 6,400
N/A
RevPAR
2006 $30.45 $36.97 $40.82
$31.41 $34.95
2005 $25.53 $31.91 $36.86
$29.72 $31.00
2004 $22.50 $29.08 $34.04
$24.53 $27.55
2003 $22.05 $27.50 $31.38
$22.71 $25.92
Royalty,
Marketing and
Reservation
Revenue (in
000s)
2006 $102,741 $125,409 $138,383 $104,505 $471,039
2005 $84,704 $104,281 $119,829 $99,804 $408,620
2004 $77,830 $97,959 $112,765 $82,502
$371,058
2003 $76,048 $95,280 $108,828 $77,277
$357,432
Vacation
Exchange and
Rentals
Average Number
of Members
(in 000s)
2006 3,292 3,327
3,374 3,429 3,356
2005 3,148 3,185
3,233 3,271 3,209
2004 2,995 3,031
3,074 3,116 3,054
2003 2,929 2,925
2,954 2,982 2,948
Annual Dues
and Exchange
Revenue Per
Member
2006 $152.10 $130.37 $132.31 $128.13
$135.62
2005 $159.12 $134.98 $125.64 $124.05
$135.76
2004 $159.55 $132.51 $123.55 $124.43
$134.82
2003 $145.99 $129.37 $128.99 $120.37
$131.13
Vacation Rental
Transactions
(in 000s)
2006 385 310
356 293
1,344
2005 367 311
344 278
1,300
2004 309 246
295 253
1,104
2003 290 192
206 194
882
Average Net
Price Per
Vacation
Rental
2006 $312.51 $374.91 $442.75 $356.16
$370.93
2005 $331.37 $363.14 $412.66 $325.62
$359.27
2004 $279.46 $333.76 $368.79 $337.42
$328.77
2003 $233.49 $255.62 $247.46 $265.72
$248.65
Vacation
Ownership
Gross Vacation
Ownership
Interest Sales
(in 000s)
2006 $357,000 $434,000 $482,000 $469,000 $1,743,000
2005 $281,000 $354,000 $401,000 $360,000 $1,396,000
2004 $274,000 $315,000 $361,000 $304,000 $1,254,000
2003 $224,000 $302,000 $330,000 $290,000 $1,146,000
Tours
2006 208,000 273,000 312,000 254,000
1,046,000
2005 195,000 250,000 272,000 217,000
934,000
2004 181,000 227,000 246,000 205,000
859,000
2003 196,000 253,000 275,000 200,000
925,000
Volume per
Guest (VPG)
2006 $1,475 $1,426 $1,434
$1,623 $1,486
2005 $1,349 $1,284 $1,349
$1,507 $1,368
2004 $1,303 $1,253 $1,273
$1,327 $1,287
2003 $1,067 $1,082 $1,127
$1,293 $1,138
Note: Full year amounts may not foot
across due to rounding.
(a)Quarterly drivers in the Lodging
segment include the acquisitions of
Ramada International
(December 2004), Wyndham Hotels and Resorts
(October 2005) and
Baymont Inn & Suites (April 2006) from their
acquisition dates
forward. Therefore, the operating statistics are not
presented on a comparable
basis.
(b)Amounts include managed hotels
- non-proprietary brands rooms and
properties.
Wyndham Worldwide Corporation
OPERATING STATISTICS
GLOSSARY OF TERMS
Lodging
Weighted Average Rooms Available: Represents the weighted
average number of hotel rooms available for rental for the period at lodging
properties.
Number of Properties: Represents the number of lodging
properties operated under franchise and management agreements at the end
of the period.
RevPAR: Represents revenue per available room and is calculated
by multiplying the percentage of available rooms occupied for the period
by the average rate charged for renting a lodging room for one day.
Royalty, Marketing and Reservation Revenue: Royalty, marketing
and reservation revenue are typically based on a percentage of the gross
room revenues of each franchise. Royalty revenue is generally a fee charged
to each franchise for the use of one of our trade names, while marketing
and reservation revenue are fees that we collect and are contractually
obligated to spend to support marketing and reservation activities.
Vacation Exchange and Rentals
Average Number of Members: Represents members in our vacation
exchange programs who pay annual membership dues. For additional fees,
such participants are entitled to exchange intervals for intervals at other
properties affiliated with our vacation exchange business. In addition,
certain participants may exchange intervals for other leisure-related products
and services.
Annual Dues and Exchange Revenue Per Member: Represents
total revenues from annual membership dues and exchange fees generated
for the period divided by the average number of vacation exchange members
during the year.
Vacation Rental Transactions: Represents the gross number
of transactions that are generated in connection with customers booking
their vacation rental stays through us. In our European vacation rental
businesses, one rental transaction is recorded each time a standard one-week
rental is booked; however, in the United States, one rental transaction
is recorded each time a vacation rental stay is booked, regardless of whether
it is less than or more than one week.
Average Net Price Per Vacation Rental: Represents the
net rental price generated from renting vacation properties to customers
divided by the number of rental transactions.
Vacation Ownership
Gross Vacation Ownership Interest Sales: Represents gross
sales of vacation ownership interests (including tele-sales upgrades, which
is a component of upgrade sales) before deferred sales and loan loss provisions.
Tours: Represents the number of tours taken by guests
in our efforts to sell vacation ownership interests.
Volume per Guest (VPG): Represents revenue per guest and
is calculated by dividing the gross vacation ownership interest sales,
excluding tele-sales upgrades, which is a component of upgrade sales, by
the number of tours.
Table 4
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
December September June March December
31, 30,
30, 31, 31,
2006 2006 2006
2006 2005
Securitized vacation ownership
debt
Term notes
$838 $967 $575
$656 $740
Bank conduit facility (a)
625 371
653 511 395
Securitized vacation ownership
debt (b)
1,463 1,338 1,228
1,167 1,135
Less: Current portion of
securitized vacation
ownership debt
178 213
210 184 154
Long-term securitized vacation
ownership debt
$1,285 $1,125 $1,018 $983
$981
Debt:
6.00% Senior unsecured notes
(due December 2016)(c)
$796 $-
$- $- $-
Revolving credit facility (due
July 2011)(d)
- 150
- -
-
Interim loan facility (due July
2007)
- 350
- -
-
Term loan (due July 2011)
300 300
- -
-
Vacation ownership asset-
linked facility(e)
- -
600 575 550
Bank borrowings:
Vacation ownership
103 113
111 104 113
Vacation rental
73 70
70 66 68
Vacation rental capital leases
148 144
145 141 139
Other
17 37
35 35 37
Total debt
1,437 1,164 961
921 907
Less: Current portion of debt
115 143
207 196 201
Long-term debt
$1,322 $1,021 $754
$725 $706
(a)This 364-day vacation ownership
bank conduit facility was renewed and
upsized to $1,000
million on November 13, 2006. The borrowings under
this facility have
a maturity date of December 2009.
(b)This debt is collateralized by
$1,844 million, $1,718 million, $1,624
million, $1,556
million and $1,515 million of underlying vacation
ownership contract
receivables and related assets at December 31, 2006,
September 30, 2006,
June 30, 2006, March 31, 2006 and December 31,
2005, respectively.
(c)These notes represent $800 million
aggregate principal less $4 million
of original issue
discount.
(d)The Company's revolving credit
facility has a borrowing capacity of
$900 million.
At December 31, 2006, the Company has $30 million of
outstanding letters
of credit and a remaining borrowing capacity of
$870 million.
(e)The Company provided $600 million
to its former parent, Cendant (now
Avis Budget Group,
Inc.) to repay this facility in July 2006.
Table 5
Wyndham
Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
December 31, 2006
Average
Revenue
Average Per
Average Daily Available
Number of Number of Occupancy Rate
Room
Brand
Properties Rooms Rate
(ADR) (RevPAR)
Wyndham Hotels
and Resorts
82 22,582 68.6%
$110.37 $75.68
Wingate Inn
154 14,146
64.7% $83.99 $54.33
Ramada
871 105,986 53.7%
$72.34 $38.85
Baymont (a)
137 12,377
57.7% $63.35 $36.56
AmeriHost Inn
98 6,745
53.7% $62.09 $33.37
Days Inn
1,859 151,438 52.0%
$60.37 $31.41
Super 8
2,054 126,175 55.2%
$56.17 $31.00
Howard Johnson
467 44,432
46.3% $65.82 $30.45
Travelodge
503 37,468
50.7% $63.05 $31.95
Knights Inn
231 16,892
42.3% $40.11 $16.98
Managed Hotels - Non-
Proprietary Brands (b)
17 4,993
N/A N/A
N/A
Total
6,473 543,234 53.4%
$65.44 $34.95
December 31, 2005
Average
Revenue
Average Per
Average Daily Available
Number of Number of Occupancy Rate
Room
Brand
Properties Rooms Rate
(ADR) (RevPAR)
Wyndham Hotels
and Resorts (a)
101 29,651
62.1% $102.46 $63.66
Wingate Inn
146 13,573
63.9% $78.33 $50.08
Ramada
916 108,937 53.4%
$66.61 $35.60
AmeriHost Inn
114 8,194
56.4% $60.69 $34.24
Days Inn
1,844 150,302 50.2%
$57.65 $28.96
Super 8
2,040 124,031 53.7%
$53.36 $28.65
Howard Johnson
458 43,430
48.4% $60.12 $29.10
Travelodge
513 38,410
48.9% $57.44 $28.09
Knights Inn
216 16,141
42.2% $38.34 $16.19
Total
6,348 532,669 51.9%
$59.78 $31.00
(a)Average Occupancy Rate, ADR and
RevPAR include the impact of the
acquisitions of
Baymont Inn & Suites (April 2006) and Wyndham Hotel and
Resorts (October
2005) from their acquisition dates forward.
(b)Thirteen of these properties are
scheduled to be branded as either
Wyndham or Ramada
during 2007.
Table 6
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION
(In millions, except per share data)
Year
Three Months Ended
Ended
March June September December December
31, 30, 30,
31, 31,
2006 2006 2006
2006 2006
Reported EBITDA
$182 $166 $176
$201 $725
Separation and related
costs(a)
3 5 68
23 99
Incremental stand-alone
costs(b)
(13) (13) (4)
- (30)
Resolution of contingent
liabilities(c)
- -
- (32)
(32)
Adjusted EBITDA
$172 $158 $240
$192 $762
Reported Depreciation and
Amortization
$(34) $(36) $(37) $(41)
$(148)
Incremental stand-alone
costs(b)
(1) (1) -
- (2)
Adjusted Depreciation and
Amortization
$(35) $(37) $(37) $(41)
$(150)
Reported Interest Income/
(Expense)
$2 $(11) $(12) $(14)
$(35)
Incremental stand-alone
costs(b)
(12) (12) (4)
- (28)
Adjusted Interest Expense
$(10) $(23) $(16) $(14)
$(63)
Reported PreTax Income
$150 $119 $127
$146 $542
Separation and related
costs(a)
3 5 68
23 99
Incremental stand-alone
costs(b)
(26) (26) (8)
- (60)
Resolution of contingent
liabilities(c)
- -
- (32)
(32)
Adjusted PreTax Income
$127 $98 $187
$137 $549
Reported Tax Provision
$(57) $(44) $(35) $(54)
$(190)
Separation and related
costs(d)
(2) (2) (25)
(1) (30)
Incremental stand-alone
costs(d)
10 10
3 -
23
State tax rate
adjustment(d)(e)
- - (15)
- (15)
Resolution of contingent
liabilities(d)
- -
- 2
2
Adjusted Tax Provision
$(49) $(36) $(72) $(53)
$(210)
Reported Net Income
$28 $75 $92
$92 $287
Cumulative effect of
SFAS No. 152(f)
65 -
- -
65
Reported Income Before
Cumulative
Effect of SFAS No. 152
93 75 92
92 352
Separation and related
costs
1 3 43
22 69
Incremental stand-alone
costs
(16) (16) (5)
- (37)
State tax rate adjustment
- - (15)
- (15)
Resolution of contingent
liabilities
- -
- (30)
(30)
Adjusted Net Income
$78 $62 $115
$84 $339
Reported EPS
$0.14 $0.37 $0.45 $0.48
$1.44
Cumulative effect of
SFAS No. 152
0.32 -
- -
0.33
Reported Income Before
Cumulative
Effect of SFAS No. 152
0.46 0.37 0.45
0.48 1.77
Separation and related
costs
0.00 0.01 0.21
0.11 0.35
Incremental stand-alone
costs
(0.08) (0.08) (0.02)
- (0.19)
State tax rate adjustment
- - (0.07)
- (0.08)
Resolution of contingent
liabilities
- -
- (0.15) (0.15)
Adjusted EPS
$0.39 $0.31 $0.56 $0.44
$1.70
Diluted Shares(g)
200 200 203
194 199
Note: EPS amounts may not foot down
or across due to rounding.
(a)Represents the costs incurred in
connection with the Company's
separation from
Cendant (primarily the acceleration of vesting of
Cendant equity awards
and the related equitable adjustments of such
awards).
(b)Represents the Company's estimate
of incremental stand-alone corporate
costs, depreciation
and amortization and interest expense associated
with corporate debt
that the Company would have incurred if it was a
separate stand-alone
company.
(c)Relates to the net benefit from
the resolution of certain contingent
liabilities.
(d)Relates to the tax effect of the
adjustments.
(e)Relates to a $15 million benefit
relating to refinements in the
Company's 2005 state
effective tax rates.
(f)Represents non-cash charges to
reflect the cumulative effect of
adopting Statement
of Financial Accounting Standards No. 152,
"Accounting for
Real Estate Time-Sharing Transactions," on January 1,
2006.
(g)For all periods prior to our separation
date (July 31, 2006), the
Company assumed
one share of Wyndham common stock outstanding for every
five shares of Cendant
common stock outstanding as of July 21, 2006,
the record date
for the distribution of Wyndham common stock.
Table 6
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION
(In millions, except per share data)
Year
Three Months Ended
Ended
March June September December December
31, 30, 30,
31, 31,
2005 2005 2005
2005 2005
Reported EBITDA
$159 $182 $233
$177 $751
Incremental
stand-
alone
costs(a)
(13) (13) (13)
(13) (52)
Adjusted EBITDA
$146 $169 $220
$164 $699
Reported Depreciation and
Amortization
$(32) $(33) $(33) $(33)
$(131)
Incremental
stand-
alone
costs(a)
(1) (1) (1)
(1) (4)
Adjusted Depreciation and
Amortization
$(33) $(34) $(34) $(34)
$(135)
Reported Interest Income/
(Expense)
$(2) $(1) $1
$8 $6
Incremental
stand-alone
costs(a)
(12) (12) (12)
(11) (47)
Adjusted Interest Expense
$(14) $(13) $(11)
$(3) $(41)
Reported PreTax Income
$125 $148 $201
$152 $626
Incremental
stand-
alone
costs(a)
(26) (26) (26)
(25) (103)
Adjusted PreTax Income
$99 $122 $175
$127 $523
Reported Tax (Provision)/
Benefit
$5 $(59) $(80) $(61)
$(195)
Incremental
stand-
alone
costs(b)
10 10 10
10 40
Adjusted Tax (Provision)/
Benefit
$15 $(49) $(70) $(51)
$(155)
Reported Net Income
$130 $89 $121
$91 $431
Incremental
stand-
alone
costs
(16) (16) (16)
(15) (63)
Adjusted Net Income
$114 $73 $105
$76 $368
Reported EPS
$0.65 $0.44 $0.60 $0.45
$2.15
Incremental
stand-
alone
costs
(0.08) (0.08) (0.08) (0.07)
(0.31)
Adjusted EPS
$0.57 $0.36 $0.52 $0.38
$1.84
Diluted Shares (c)
200 200 200
200 200
Note: EPS amounts may not foot across
due to rounding.
(a) Represents the Company's estimate
of incremental stand-alone corporate
costs, depreciation
and amortization and interest expense associated
with corporate
debt that the Company would have incurred if it was a
separate stand-alone
company.
(b) Relates to the tax effect of the
adjustments.
(c) For all periods prior to our separation
date (July 31, 2006), the
Company assumed
one share of Wyndham common stock outstanding for
every five
shares of Cendant common stock outstanding as of July 21,
2006, the
record date for the distribution of Wyndham common stock.
Table 7
(1 of 5)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended March 31, 2006
Legacy
Separation and Stand-Alone
As and Related Other
Company As
Reported Adjustments Adjustments Adjustments Adjusted
Revenues
Vacation
ownership
interest
sales
$309
$309
Service fees
and membership
356
356
Franchise fees
109
109
Consumer
financing
65
65
Other
31
31
Net revenues
870 -
- -
870
Expenses
Operating
332
332
Cost of vacation
ownership
interests
67
67
Marketing and
reservation
174
174
General and
administrative
112
13(b) 125
Separation and
related costs
3 (3)(a)
-
Depreciation and
amortization
34
1(b) 35
Total expenses
722 (3)
- 14
733
Operating income
148 3
- (14)
137
Interest expense
(income), net
(2) -
- 12(b)
10
Income before
income taxes
150 3
- (26)
127
Provision for
income taxes
57 2(c)
- (10)(c)
49
Income before
cumulative
effect of
accounting change
93 1
- (16)
78
Cumulative effect
of accounting
change, net of
tax
(65) -
65(d) -
-
Net income
$28 $1
$65 $(16)
$78
Earnings per share
Basic
Income before
cumulative
effect of
accounting
change
$0.46 $-
$- $(0.08) $0.39
Cumulative
effect of
accounting
change
(0.32) -
0.32 -
-
Net income
$0.14 $-
$0.32 $(0.08) $0.39
Diluted
Income before
cumulative
effect of
accounting
change
$0.46 $-
$- $(0.08) $0.39
Cumulative
effect of
accounting
change
(0.32) -
0.32 -
-
Net income
$0.14 $-
$0.32 $(0.08) $0.39
Weighted average
shares
outstanding
Basic
200 200
200 200
200
Diluted
200 200
200 200
200
Note: EPS amounts may not foot across
due to rounding.
(a)Represents the costs incurred in
connection with the Company's
separation from
Cendant.
(b)Represents the Company's estimate
of incremental stand-alone
corporate costs,
depreciation and amortization and interest expense
associated with
corporate debt that the Company would have incurred
if it was a separate
stand-alone company.
(c)Relates to the tax effect of the
adjustments.
(d)Represents non-cash charges to
reflect the cumulative effect of
adopting Statement
of Financial Accounting Standards No. 152,
"Accounting for
Real Estate Time-Sharing Transactions," on January
1, 2006.
Table 7
(2 of 5)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended June 30, 2006
Separation
and Stand-Alone
As Related
Company As
Reported Adjustments Adjustments Adjusted
Revenues
Vacation ownership
interest sales
$377
$377
Service fees and
membership
341
341
Franchise fees
134
134
Consumer financing
70
70
Other
33
33
Net revenues
955 -
- 955
Expenses
Operating
369
369
Cost of vacation ownership
interests
80
80
Marketing and reservation
194
194
General and administrative
141
13(b) 154
Separation and related
costs
5 (5)(a)
-
Depreciation and
amortization
36
1(b) 37
Total expenses
825 (5)
14 834
Operating income
130 5
(14) 121
Interest expense, net
11 -
12(b) 23
Income before income taxes
119 5
(26) 98
Provision for income taxes
44 2(c)
(10)(c) 36
Net income
$75 $3
$(16) $62
Earnings per share
Basic
$0.37 $0.01
$(0.08) $0.31
Diluted
$0.37 $0.01
$(0.08) $0.31
Weighted average shares
outstanding
Basic
200 200
200 200
Diluted
200 200
200 200
Note: EPS amounts may not foot across
due to rounding.
(a)Represents the costs incurred in
connection with the Company's
separation from
Cendant.
(b)Represents the Company's estimate
of incremental stand-alone corporate
costs, depreciation
and amortization and interest expense associated
with corporate debt
that the Company would have incurred if it was a
separate stand-alone
company.
(c)Relates to the tax effect of the
adjustments.
Table 7
(3 of 5)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended September 30, 2006
Separation
and Stand-Alone
As Related
Company As
Reported Adjustments Adjustments Adjusted
Revenues
Vacation ownership interest
sales
$396
$396
Service fees and membership
392
392
Franchise fees
146
146
Consumer financing
77
77
Other
36
36
Net revenues
1,047 -
- 1,047
Expenses
Operating
382
382
Cost of vacation ownership
interests
92
92
Marketing and reservation
198
198
General and administrative
131
4(b) 135
Separation and related
costs 68 (68)(a)
-
Depreciation and amortization
37
37
Total expenses
908 (68)
4 844
Operating income
139 68
(4) 203
Interest expense, net
12 -
4(b) 16
Income before income taxes
127 68
(8) 187
Provision for income taxes
35 25(c)
12(c) 72
Net income
$92 $43
$(20) $115
Earnings per share
Basic
$0.46 $0.22
$(0.10) $0.58
Diluted
$0.45 $0.21
$(0.10) $0.56
Weighted average shares
outstanding
Basic
200 200
200 200
Diluted
203 203
203 203
Note: EPS amounts may not foot across
due to rounding.
(a)Represents the costs incurred in
connection with the Company's
separation from
Cendant (primarily the acceleration of vesting of
Cendant equity awards
and the related equitable adjustments of such
awards).
(b)Represents the Company's estimate
of incremental stand-alone corporate
costs and interest
expense associated with corporate debt that the
Company would have
incurred if it was a separate stand-alone company.
(c)Relates to the tax effect of the
adjustments and a $15 million benefit
relating to refinements
in the Company's 2005 state effective tax
rates.
Table 7
(4 of 5)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended December 31, 2006
Separation
and Legacy and
As Related
Other As
Reported Adjustments Adjustments Adjusted
Revenues
Vacation ownership interest
sales
$379
$379
Service fees and membership
348
348
Franchise fees
112
112
Consumer financing
79
79
Other
52
52
Net revenues
970 -
- 970
Expenses
Operating
391
391
Cost of vacation ownership
interests
78
78
Marketing and reservation
168
168
General and administrative
109
32(b) 141
Separation and related
costs 23 (23)(a)
-
Depreciation and amortization
41
41
Total expenses
810 (23)
32 819
Operating income
160 23
(32) 151
Interest expense, net
14 -
- 14
Income before income taxes
146 23
(32) 137
Provision for income taxes
54 1(c)
(2)(c) 53
Net income
$92 $22
$(30) $84
Earnings per share
Basic
$0.48 $0.11
$(0.16) $0.44
Diluted
$0.48 $0.11
$(0.15) $0.44
Weighted average shares
outstanding
Basic
193 193
193 193
Diluted
194 194
194 194
Note: EPS amounts may not foot across
due to rounding.
(a)Represents the costs incurred in
connection with the Company's
separation from
Cendant.
(b)Relates to the net benefit from
the resolution of certain contingent
liabilities.
(c)Relates to the tax effect of the
adjustments.
Table 7
(5 of 5)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Twelve Months Ended December 31, 2006
Legacy
Separation and Stand-Alone
As and Related Other
Company As
Reported Adjustments Adjustments Adjustments Adjusted
Revenues
Vacation
ownership
interest sales
$1,461
$1,461
Service fees and
membership
1,437
1,437
Franchise fees
501
501
Consumer
financing
291
291
Other
152
152
Net revenues
3,842 -
- -
3,842
Expenses
Operating
1,474
1,474
Cost of vacation
ownership
interests
317
317
Marketing and
reservation
734
734
General and
administrative
493
32(b) 30(c)
555
Separation and
related costs
99 (99)(a)
-
Depreciation and
amortization
148
2(c) 150
Total expenses
3,265 (99)
32 32
3,230
Operating income
577 99
(32) (32)
612
Interest expense,
net
35 -
- 28(c)
63
Income before income
taxes
542 99
(32) (60)
549
Provision for income
taxes
190 30(d)
(2)(d) (8)(d)
210
Income before
cumulative effect
of accounting
change
352 69
(30) (52)
339
Cumulative effect of
accounting change,
net of tax
(65) -
65(e) -
-
Net income
$287 $69
$35 $(52)
$339
Earnings per share
Basic
Income before
cumulative effect
of accounting
change
$1.78 $0.35 $(0.15)
$(0.26) $1.71
Cumulative effect
of accounting
change
(0.33) -
0.33 -
-
Net income
$1.45 $0.35
$0.18 $(0.26)
$1.71
Diluted
Income before
cumulative effect
of accounting
change
$1.77 $0.35 $(0.15)
$(0.26) $1.70
Cumulative effect
of accounting
change
(0.33) -
0.33 -
-
Net income
$1.44 $0.35
$0.18 $(0.26)
$1.70
Weighted average
shares outstanding
Basic
198 198
198 198
198
Diluted
199 199
199 199
199
Note: EPS amounts may not foot across
due to rounding.
(a)Represents the costs incurred in
connection with the Company's
separation from
Cendant (primarily the acceleration of vesting of
Cendant equity awards
and the related equitable adjustments of such
awards).
(b)Relates to the net benefit from
the resolution of certain contingent
liabilities.
(c)Represents the Company's estimate
of incremental stand-alone corporate
costs, depreciation
and amortization and interest expense associated
with corporate debt
that the Company would have incurred if it was a
separate stand-alone
company.
(d)Relates to the tax effect of the
adjustments and a $15 million benefit
relating to refinements
in the Company's 2005 state effective tax
rates.
(e)Represents non-cash charges to
reflect the cumulative effect of
adopting Statement
of Financial Accounting Standards No. 152,
"Accounting for
Real Estate Time-Sharing Transactions," on January 1,
2006.
Source: Wyndham Worldwide Corporation |
