Three Months Ended June 30,
-----------------------------
2007
2006
------
------
Net
Net
Revenues EBITDA(c) Revenues EBITDA(c)
-------- --------- -------- ---------
Lodging
$186 $59 $176
$53
Vacation Exchange
and Rentals
288 49
261 32
Vacation Ownership
629 100
518 84
-------- --------- -------- ---------
Total Reportable Segments
1,103 208
955 169
Corporate and
Other (a) (b)
(3) 3
- (3)
-------- --------- -------- ---------
Total Company
$1,100 $211 $955
$166
======== ========= ======== =========
Reconciliation
of EBITDA to Net
Income
EBITDA
$211
$166
Depreciation
and amortization
41
36
Interest expense
18
23
Interest income
(2)
(12)
-------- ---------
Income before
income taxes
154
119
Provision for
income taxes
58
44
-------- ---------
Net income
$96
$75
======== =========
Six Months Ended June 30,
---------------------------
2007
2006
------
------
Net
Net
Revenues EBITDA(d) Revenues EBITDA(d)
-------- --------- -------- ---------
Lodging
$338 $104 $320
$94
Vacation Exchange
and Rentals
601 134
543 109
Vacation Ownership
1,178 162
963 148
-------- --------- -------- ---------
Total Reportable Segments
2,117 400 1,826
351
Corporate and
Other (a) (b)
(5) 2
(1) (3)
-------- --------- -------- ---------
Total Company
$2,112 $402 $1,825
$348
======== ========= ======== =========
Reconciliation
of EBITDA to Net
Income
EBITDA
$402
$348
Depreciation
and amortization
79
70
Interest expense
35
33
Interest income
(5)
(24)
-------- ---------
Income before
income taxes
293
269
Provision for
income taxes
111
101
-------- ---------
Income before
cumulative effect of
accounting
change
182
168
Cumulative effect
of accounting
change,
net of tax
-
(65)
-------- ---------
Net income
$182
$103
======== =========
(a) Includes
the elimination of transactions between segments; excludes
incremental stand alone company costs during the three and six months
ended June 30, 2006.
(b) Includes
$17 million and $30 million of a net benefit related to the
resolution of and adjustment to certain contingent liabilities and
assets during the three and six months ended June 30, 2007,
respectively.
(c) Includes
separation and related costs of $5 million and $2 million
for Vacation Ownership and Corporate and Other, respectively, during
the three months ended June 30, 2007 and $1 million, $2 million and
$2 million for Vacation Exchange and Rentals, Vacation Ownership and
Corporate and Other, respectively, during the three months ended June
30, 2006.
(d) Includes
separation and related costs of $8 million and $5 million
for Vacation Ownership and Corporate and Other, respectively, during
the six months ended June 30, 2007 and $2 million, $2 million and $4
million for Vacation Exchange and Rentals, Vacation Ownership and
Corporate and Other, respectively, during the six months ended June
30, 2006.
Table 2
Wyndham Worldwide Corporation
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended Six Months Ended
June 30, June
30,
------------------ ----------------
2007 2006 2007
2006
-------- -------- ------- --------
Net revenues
Vacation ownership interest sales $443
$377 $816 $685
Service fees and membership
387 341 790
696
Franchise fees
137 134 251
243
Consumer financing
88 70
169 135
Other
45 33
86 66
-------- -------- ------- --------
Net revenues
1,100 955 2,112
1,825
-------- -------- ------- --------
Expenses
Operating
447 369 853
700
Cost of vacation ownership
interests
104 80
195 147
Marketing and reservation
207 194 404
368
General and administrative (a)
124 141 245
254
Separation and related costs (b)
7 5
13 8
Depreciation and amortization
41 36
79 70
-------- -------- ------- --------
Total expenses
930 825 1,789
1,547
-------- -------- ------- --------
Operating income
170 130 323
278
Interest expense
18 23
35 33
Interest income
(2) (12) (5)
(24)
-------- -------- ------- --------
Income before
income taxes
154 119 293
269
Provision for
income taxes
58 44
111 101
-------- -------- ------- --------
Income before
cumulative effect of
accounting
change
96 75
182 168
Cumulative effect
of accounting
change,
net of tax (c)
- -
- (65)
-------- -------- ------- --------
Net income
$96 $75 $182
$103
======== ======== ======= ========
Earnings per
share (d)
Basic
Income before cumulative effect of
accounting change
$0.53 $0.37 $0.98
$0.84
Cumulative effect of accounting
change, net of tax
- -
- (0.32)
-------- -------- ------- --------
Net income
$0.53 $0.37 $0.98
$0.51
======== ======== ======= ========
Diluted
Income before cumulative effect of
accounting change
$0.52 $0.37 $0.98
$0.84
Cumulative effect of accounting
change, net of tax
- -
- (0.32)
-------- -------- ------- --------
Net income
$0.52 $0.37 $0.98
$0.51
======== ======== ======= ========
Weighted average
shares outstanding
Basic
181 200 185
200
Diluted
183 200 186
200
(a) Includes
$17 million and $30 million of a net benefit related to the
resolution of and adjustment to certain contingent liabilities and
assets during the three and six months ended June 30, 2007,
respectively.
(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 $4 million and
$3 million during the three months ended June 30, 2007 and 2006,
respectively, and $8 million and $4 million during the six months
ended June 30, 2007 and 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.
(d) Amounts
may not foot down due to rounding.
Table 3
(1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1
Q2 Q3
Q4 Full Year
Lodging (a)
Weighted Average
Rooms
Available 2007 529,700 530,700
N/A N/A
N/A
2006 520,600 531,000 529,200 529,900
527,700
2005 517,400 512,000 511,500 535,100
519,000
2004 512,000 510,700 507,300 503,000
508,200
Number of
Properties
(b) 2007 6,450 6,460
N/A N/A
N/A
2006 6,300 6,440
6,420 6,470
N/A
2005 6,400 6,380
6,350 6,350
N/A
2004 6,380 6,390
6,350 6,400
N/A
RevPAR
2007 $ 31.35 $ 38.35 N/A
N/A N/A
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
Royalty, Marketing
and Reservation
Revenue
(in 000s)
2007 $105,426 $129,453 N/A
N/A N/A
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
Vacation Exchange
and Rentals
Average
Number
of Members
(in 000s)
2007 3,474 3,506
N/A N/A
N/A
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
Annual Dues and
Exchange
Revenue
Per Member
2007 $155.60 $132.33 N/A
N/A N/A
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
Vacation Rental
Transactions
(in 000s)
2007 398 326
N/A N/A
N/A
2006 385 310
356 293 1,344
2005 367 311
344 278 1,300
2004 309 246
295 253 1,104
Average Net Price
Per Vacation
Rental
2007 $349.73 $415.71 N/A
N/A N/A
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
Vacation Ownership
Gross Vacation
Ownership
Interest
Sales
(in 000s) 2007 $430,000 $523,000 N/A
N/A N/A
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
Tours 2007
240,000 304,000 N/A
N/A N/A
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
Volume Per
Guest (VPG) 2007 $ 1,607 $ 1,596
N/A N/A
N/A
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
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) Numbers
include unmanaged, affiliated and managed, non-proprietary
hotels from the fourth quarter of 2006 forward.
Table 3
(2 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
GLOSSARY OF TERMS
Lodging
Weighted Average
Rooms Available: Represents the weighted average number
of hotel rooms
available for rental during the period.
Number of Properties:
Represents the number of lodging properties under
franchise and/or
management agreements at the end of the period.
Number of Rooms:
Represents the number of rooms at lodging properties
under franchise
and/or management agreements at the end of the period.
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.
Royalty, Marketing
and Reservation Revenue: Royalty, marketing and
reservation
revenue are typically based on a percentage of the gross room
revenues of
each franchised hotel. Royalty revenue is generally a fee
charged to each
franchised hotel 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 rentals 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 are 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
are a component of upgrade sales, by the number of tours.
Table 4
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
June March Dec. Sept.
June
30, 31, 31,
30, 30,
2007 2007 2006 2006
2006
------- ------- ------- ------- -------
Securitized
vacation ownership
debt
Term notes
$1,322 $887 $838
$967 $575
Bank conduit
facility (a)
491 826 625
371 653
------- ------- ------- ------- -------
Securitized
vacation ownership
debt (b)
1,813 1,713 1,463 1,338
1,228
Less: Current
portion of
securitized
vacation ownership
debt
242 231 178
213 210
------- ------- ------- ------- -------
Long-term securitized
vacation
ownership
debt
$1,571 $1,482 $1,285 $1,125 $1,018
======= ======= ======= ======= =======
Debt:
6.00% Senior unsecured notes
(due December 2016) (c)
$797 $796 $796 $-
$-
Revolving credit facility (due
July 2011) (d)
215 48 -
150 -
Interim loan facility (due July
2007)
- -
- 350 -
Term loan (due July 2011)
300 300 300
300 -
Vacation ownership asset-linked
facility (e)
- -
- -
600
Bank borrowings:
Vacation ownership
130 112 103
113 111
Vacation rentals (f)
- -
73 70 70
Vacation rentals capital leases 147
147 148 144
145
Other
14 16 17
37 35
------- ------- ------- ------- -------
Total debt
1,603 1,419 1,437 1,164
961
Less: Current
portion of debt 140
123 115 143
207
------- ------- ------- ------- -------
Long-term debt
$1,463 $1,296 $1,322 $1,021 $754
======= ======= ======= ======= =======
(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 $2,288 million, $2,198 million, $1,844
million, $1,718 million and $1,624 million of underlying vacation
ownership contract receivables and related assets at June 30, 2007,
March 31, 2007, December 31, 2006, September 30, 2006 and June 30,
2006, respectively.
(c) These
notes represent $800 million aggregate principal less $3
million of original issue discount.
(d) The
Company's revolving credit facility has a borrowing capacity of
$900 million. At June 30, 2007, the Company has $42 million of
outstanding letters of credit and a remaining borrowing capacity of
$643 million.
(e) The
Company provided $600 million to its former parent, Cendant (now
Avis Budget Group, Inc.) to repay this facility in July 2006.
(f) The
borrowings under this facility were repaid on January 31, 2007.
Table 5
Wyndham
Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
June 30, 2007
Average
Revenue
Average Per
Number Number Average Daily Available
of of Occupancy Rate
Room
Brand
Properties Rooms Rate (ADR) (RevPAR)
Wyndham Hotels
and Resorts
75 19,945 62.7% $118.17 $74.06
Wingate Inn
154 14,172 69.9% $91.30 $63.84
Ramada
859 105,299 57.8% $78.11 $45.12
Baymont
169 14,986 55.4% $69.77 $38.63
AmeriHost Inn
54 3,673 49.7% $67.16 $33.35
Days Inn
1,862 150,984 56.3% $62.63 $35.24
Super 8
2,054 126,450 59.1% $58.17 $34.39
Howard Johnson
468 44,667 50.7% $65.05 $32.99
Travelodge
496 37,284 51.4% $66.25 $34.04
Knights Inn
252 18,019 43.3% $43.75 $18.93
Unmanaged, Affiliated
and Managed,
Non-Proprietary
Hotels (*)
19 6,197 N/A N/A
N/A
----------------
Total
6,462 541,676 56.5% $67.86 $38.35
================
June 30, 2006
Average
Revenue
Average Per
Number Number Average Daily Available
of of Occupancy Rate
Room
Brand
Properties Rooms Rate (ADR) (RevPAR)
Wyndham Hotels
and Resorts
87 23,959 70.5% $109.55 $77.19
Wingate Inn
148 13,665 69.2% $83.95 $58.13
Ramada
892 107,735 56.8% $72.86 $41.35
Baymont
130 11,649 58.5% $64.52 $37.76
AmeriHost Inn
110 7,693 56.9% $61.25 $34.85
Days Inn
1,850 150,162 54.9% $60.57 $33.23
Super 8
2,038 124,247 58.8% $55.41 $32.56
Howard Johnson
463 42,947 49.2% $66.30 $32.64
Travelodge
500 37,132 52.7% $62.54 $32.96
Knights Inn
223 16,713 45.1% $40.33 $18.18
----------------
Total
6,441 535,902 56.4% $65.50 $36.97
================
NOTE: A glossary
of terms is included in Table 3 (2 of 2).
(*) Represents
1) affiliated properties for which we receive a fee for
reservation services provided and 2) properties managed under the CHI
Limited joint venture. These properties are not branded; as such,
certain operating statistics (such as average occupancy rate, ADR and
RevPAR) are not relevant. Twelve of the managed properties are
scheduled to be branded or cobranded as either Wyndham or Ramada
during 2007 and 2008.
Table 6
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Six Months
Three Months Ended Ended
----------------------
March 31, June 30, June 30,
2007 2007
2007
---------- --------- ----------
Reported EBITDA
$192 $211
$402
Separation and related costs (a)
6 7
13
Resolution of and adjustment to
contingent liabilities and
assets (b)
(13) (17)
(30)
---------- --------- ----------
Adjusted EBITDA
$185 $201
$385
Reported PreTax
Income
$139 $154
$293
Separation and related costs (a)
6 7
13
Resolution of and adjustment to
contingent liabilities and
assets (b)
(13) (17)
(30)
---------- --------- ----------
Adjusted PreTax
Income
$132 $144
$276
Reported Tax
Provision
$(53) $(58)
$(111)
Separation and related costs (c)
(2) (3)
(5)
Resolution of and adjustment to
contingent liabilities and
assets (c)
4 6
10
---------- --------- ----------
Adjusted Tax
Provision
$(51) $(55)
$(106)
Reported Net
Income
$86 $96
$182
Separation and related costs
4 4
8
Resolution of and adjustment to
contingent liabilities and
assets
(9) (11)
(20)
---------- --------- ----------
Adjusted Net
Income
$81 $89
$170
Reported Diluted
EPS
$0.45 $0.52
$0.98
Separation and related costs
0.02 0.02
0.04
Resolution of and adjustment to
contingent liabilities and
assets
(0.05) (0.06)
(0.10)
---------- --------- ----------
Adjusted Diluted
EPS
$0.43 $0.49
$0.91
Diluted Shares
190 183
186
Note: Amounts
may not foot due to rounding.
(a) Represents
the costs incurred in connection with the Company's
separation from Cendant (now Avis Budget Group).
(b) Relates
to the net benefit from the resolution of and adjustment to
certain contingent liabilities and assets.
(c) Relates
to the tax effect of the adjustments.
Table 6
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Six Months
Three Months Ended Ended
March 31, June 30, June 30,
2006 2006
2006
Reported EBITDA
$182 $166
$348
Separation and related costs (a)
3 5
8
Incremental stand-alone costs (b)
(13) (13)
(26)
---------- --------- ----------
Adjusted EBITDA
$172 $158
$330
Reported Depreciation
and
Amortization
$(34) $(36)
$(70)
Incremental stand-alone costs (b)
(1) (1)
(2)
---------- --------- ----------
Adjusted Depreciation
and
Amortization
$(35) $(37)
$(72)
Reported Interest
Income /
(Expense), Net
$2 $(11)
$(9)
Incremental stand-alone costs (b)
(12) (12)
(24)
---------- --------- ----------
Adjusted Interest
Expense, Net
$(10) $(23)
$(33)
Reported PreTax
Income
$150 $119
$269
Separation and related costs (a)
3 5
8
Incremental stand-alone costs (b)
(26) (26)
(52)
---------- --------- ----------
Adjusted PreTax
Income
$127 $98
$225
Reported Tax
Provision
$(57) $(44)
$(101)
Separation and related costs (c)
(2) (2)
(4)
Incremental stand-alone costs (c)
10 10
20
---------- --------- ----------
Adjusted Tax
Provision
$(49) $(36)
$(85)
Reported Net
Income
$28 $75
$103
Cumulative effect of SFAS No. 152 (d)
65 -
65
Reported Income
before Cumulative
Effect
of SFAS No. 152
93 75
168
Separation
and related costs
1 3
4
Incremental stand-alone costs
(16) (16)
(32)
---------- --------- ----------
Adjusted Net
Income
$78 $62
$140
Reported Diluted
EPS
$0.14 $0.37
$0.51
Cumulative effect of SFAS No. 152
0.32 -
0.32
Reported Income
before Cumulative
Effect
of SFAS No. 152
0.46 0.37
0.84
Separation
and related costs
0.00 0.01
0.02
Incremental stand-alone costs
(0.08) (0.08) (0.16)
---------- --------- ----------
Adjusted Diluted
EPS
$0.39 $0.31
$0.70
Diluted Shares
(e)
200 200
200
Note: Amounts
may not foot due to rounding.
(a) Represents
the costs incurred in connection with the Company's
separation from Cendant (now Avis Budget Group).
(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
in 2006 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.
(e) On
July 31, 2006, the Separation from Cendant was completed in a tax-
free distribution to the Company's stockholders of one share of
Wyndham common stock for every five shares of Cendant common stock
held on July 21, 2006. As a result, on July 31, 2006, the Company had
200 million shares of common stock outstanding. This share amount is
being utilized for the calculation of diluted earnings per share for
all periods presented prior to the date of Separation.
Table 7
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended June 30, 2007
----------------------------------
Separation Legacy
and and
Related Other
As Adjust- Adjust-
As
Reported ments ments Adjusted
--------- -------- -------- ---------
Net revenues
Vacation ownership interest sales $443
$443
Service fees and membership
387
387
Franchise fees
137
137
Consumer financing
88
88
Other
45
45
--------- -------- -------- ---------
Net revenues
1,100 -
- 1,100
--------- -------- -------- ---------
Expenses
Operating
447
447
Cost of vacation ownership interests 104
104
Marketing and reservation
207
207
General and administrative
124
17(b) 141
Separation and related costs
7 (7)(a)
-
Depreciation and amortization
41
41
--------- -------- -------- ---------
Total expenses
930 (7)
17 940
--------- -------- -------- ---------
Operating income
170 7
(17) 160
Interest expense
18
18
Interest income
(2)
(2)
--------- -------- -------- ---------
Income before
income taxes
154 7
(17) 144
Provision for
income taxes
58 3 (c) (6)(c)
55
--------- -------- -------- ---------
Net income
$96 $4 $(11)
$89
========= ======== ======== =========
Earnings per
share
Basic
0.53 $0.02 $(0.06) $0.49
Diluted
0.52 0.02 (0.06)
0.49
Weighted average
shares outstanding
Basic
181 181 181
181
Diluted
183 183 183
183
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 and adjustment to
certain contingent liabilities and assets.
(c) Relates
to the tax effect of the adjustments.
Table 7
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Six Months Ended June 30, 2007
--------------------------------
Separation Legacy
and and
Related Other
As Adjust- Adjust-
As
Reported ments ments Adjusted
--------- -------- -------- ---------
Net revenues
Vacation ownership interest sales $816
$816
Service fees and membership
790
790
Franchise fees
251
251
Consumer financing
169
169
Other
86
86
--------- -------- -------- ---------
Net revenues
2,112 -
- 2,112
--------- -------- -------- ---------
Expenses
Operating
853
853
Cost of vacation ownership interests 195
195
Marketing and reservation
404
404
General and administrative
245
30 (b) 275
Separation and related costs
13 (13)(a)
-
Depreciation and amortization
79
79
--------- -------- -------- ---------
Total expenses
1,789 (13)
30 1,806
--------- -------- -------- ---------
Operating income
323 13
(30) 306
Interest expense
35
35
Interest income
(5)
(5)
--------- -------- -------- ---------
Income before
income taxes
293 13
(30) 276
Provision for
income taxes
111 5 (c) (10)(c)
106
--------- -------- -------- ---------
Net income
$182 $8 $(20)
$170
========= ======== ======== =========
Earnings per
share
Basic
$0.98 $0.04 $(0.11) $0.92
Diluted
0.98 0.04 (0.10)
0.91
Weighted average
shares outstanding
Basic
185 185 185
185
Diluted
186 186 186
186
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 and adjustment to
certain contingent liabilities and assets.
(c) Relates
to the tax effect of the adjustments.
Table 7
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended June 30, 2006
----------------------------------
Separation Stand-
and Alone
Related Company
As Adjust- Adjust-
As
Reported ments ments Adjusted
--------- -------- -------- ---------
Net 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
23
12 (b) 35
Interest income
(12)
(12)
--------- -------- -------- ---------
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
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Six Months Ended June 30, 2006
--------------------------------
Separation Legacy Stand-
and and
Alone
Related Other Company
As Adjust- Adjust- Adjust-
As
Reported ments ments
ments Adjusted
--------- --------- --------- -------- --------
Net revenues
Vacation ownership interest
sales
$685
$685
Service fees and membership 696
696
Franchise fees
243
243
Consumer financing
135
135
Other
66
66
--------- --------- --------- -------- --------
Net revenues
1,825 -
- -
1,825
--------- --------- --------- -------- --------
Expenses
Operating
700
700
Cost of vacation ownership
interests
147
147
Marketing and reservation 368
368
General and administrative 254
26 (b) 280
Separation and related
costs
8 (8)(a)
-
Depreciation
and
amortization
70
2 (b) 72
--------- --------- --------- -------- --------
Total expenses
1,547 (8) -
28 1,567
--------- --------- --------- -------- --------
Operating income
278 8
- (28)
258
Interest expense
33
24 (b) 57
Interest income
(24)
(24)
--------- --------- --------- -------- --------
Income before
income taxes 269
8 -
(52) 225
Provision for
income taxes 101
4 (c) -
(20)(c) 85
--------- --------- --------- -------- --------
Income before
cumulative
effect
of accounting change 168
4 -
(32) 140
Cumulative effect
of
accounting
change
(65)
65 (d)
-
--------- --------- --------- -------- --------
Net income
$103 $4 $65
$(32) $140
========= ========= ========= ======== ========
Earnings per
share
Basic
Income before cumulative
effect of accounting
change
$0.84 $0.02 $-
$(0.16) $0.70
Cumulative effect of
accounting change
(0.32) - 0.32
- -
--------- --------- --------- -------- --------
Net income
$0.51 $0.02 $0.32
$(0.16) $0.70
========= ========= ========= ======== ========
Diluted
Income before cumulative
effect of accounting
change
$0.84 $0.02 $-
$(0.16) $0.70
Cumulative effect of
accounting change
(0.32) - 0.32
- -
--------- --------- --------- -------- --------
Net income
$0.51 $0.02 $0.32
$(0.16) $0.70
========= ========= ========= ======== ========
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. |
