Table 1
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
In addition to other measures, management
evaluates the operating
results of each of its reportable
segments based upon net revenues and
"EBITDA," which is defined as net
income/(loss) before depreciation and
amortization, interest expense (excluding
interest on securitized
vacation ownership debt), interest
income and income taxes, each of
which is presented on the Company's
Consolidated Statements of
Operations. 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 the Company's 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/(loss) for the three
and twelve months ended December 31,
2008 and 2007:
Three Months Ended December 31,
---------------------------------------------------
2008
2007
---------------------------------------------------
Net Revenues EBITDA (c) Net Revenues
EBITDA
------------ ------
------------ ------
Lodging
$170 $38 (d)
$176 $49
Vacation Exchange
and Rentals
250 (4) (e)
280 56
Vacation Ownership
492 (1,321) (f)
576 99
--- ------
--- --
Total
Reportable
Segments
912 (1,287)
1,032 204
Corporate and
Other (a) (b)
(1) 7
- 28
-- --
-- --
Total
Company $911 $(1,280)
$1,032 $232
==== =======
====== ====
Reconciliation of EBITDA to Net Income/(Loss)
---------------------------------------------
EBITDA
$(1,280)
$232
Depreciation and amortization
47
44
Interest expense
22
17
Interest income
(4)
(2)
--
--
Income/(loss) before income
taxes
(1,345)
173
Provision for income taxes
11
69
--
--
Net income/(loss)
$(1,356)
$104
=======
====
Twelve Months Ended December 31,
---------------------------------------------------
2008
2007
---------------------------------------------------
Net Revenues EBITDA (c) Net Revenues
EBITDA (h)
------------ ------
------------ ------
Lodging
$753 $218 (d)
$725 $223
Vacation Exchange
and Rentals
1,259 248 (e)
1,218 293
Vacation Ownership
2,278 (1,074) (f) (g) 2,425
378
----- ------
----- ---
Total
Reportable
Segments 4,290
(608)
4,368 894
Corporate and
Other (a) (b)
(9) (27)
(8) (11)
-- ---
-- ---
Total
Company $4,281 $(635)
$4,360 $883
====== =====
====== ====
Reconciliation of EBITDA to Net Income/(Loss)
---------------------------------------------
EBITDA
$(635)
$883
Depreciation and amortization
184
166
Interest expense
80
73
Interest income
(12)
(11)
---
---
Income/(loss) before income
taxes
(887)
655
Provision for income taxes
187
252
---
---
Net income/(loss)
$(1,074)
$403
=======
====
--------------
(a) Includes the elimination of transactions
between segments.
(b) Includes $14 million and $41 million
of a net benefit during the
three months
ended December 31, 2008 and 2007, respectively, and
$18 million
and $46 million of a net benefit during the twelve months
ended December
31, 2008 and 2007, respectively, related to the
resolution
of and adjustment to certain contingent liabilities and
assets.
(c) Includes restructuring costs of
$7 million and $66 million for
Vacation Exchange
and Rentals and Vacation Ownership, respectively,
during the
three months ended December 31, 2008 and $4 million,
$9 million
and $66 million for Lodging, Vacation Exchange and Rentals
and Vacation
Ownership, respectively, during the twelve months ended
December 31,
2008.
(d) Includes a non-cash impairment
charge of $16 million ($10 million,
net of tax)
related to the write down of franchise agreements of one
of the Company's
brands.
(e) Includes (i) non-cash impairment
charges of $36 million ($28 million,
net of tax)
due to trademark and fixed asset write downs related to
the Company's
vacation rentals businesses and the write-off of the
Company's
investment in a joint venture and (ii) a cash charge of
$24 million
($24 million, net of tax) due to foreign currency losses.
(f) Includes (i) a non-cash goodwill
impairment charge of $1,342 million
($1,337 million,
net of tax) to reflect reduced future cash flow
estimates
and (ii) a non-cash impairment charge of $4 million
($3 million,
net of tax) related to the termination of a development
project.
(g) Includes a non-cash impairment
charge of $28 million ($17 million,
net of tax)
due to the Company's initiative to rebrand its vacation
ownership
trademarks to the Wyndham brand.
(h) Includes 2007 separation and related
costs of $9 million and
$7 million
for Vacation Ownership and Corporate and Other,
respectively.
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Three Months Twelve Months
Ended
Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
Net revenues
Vacation ownership interest
sales $309 $383 $1,463
$1,666
Service fees and membership
360 387 1,705 1,619
Franchise fees
113 118 514
523
Consumer financing
112 96 426
358
Other
17 48 173
194
-- -- ---
---
Net revenues
911 1,032 4,281 4,360
--- ----- ----- -----
Expenses
Operating
337 387 1,622 1,632
Cost of vacation ownership
interests 52 80
278 376
Consumer financing interest
(a) 37
33 131 110
Marketing and reservation
171 199 830
831
General and administrative
(b) 124 100
561 519
Separation and related
costs (c) -
- -
16
Goodwill and other impairments
(d) 1,398 - 1,426
-
Restructuring costs (e)
73 -
79 -
Depreciation and amortization
47 44 184
166
-- -- ---
---
Total expenses
2,239 843 5,111 3,650
----- --- ----- -----
Operating income/(loss)
(1,328) 189 (830)
710
Other income, net
(1) 1 (11)
(7)
Interest expense
22 17 80
73
Interest income
(4) (2) (12)
(11)
-- -- ---
---
Income/(loss) before income taxes
(1,345) 173 (887)
655
Provision for income taxes
11 69 187
252
-- -- ---
---
Net income/(loss)
$(1,356) $104 $(1,074) $403
======= ==== ======= ====
Earnings/(losses) per share
Basic
$(7.63) $0.59 $(6.05) $2.22
Diluted
(7.63) 0.58 (6.05) 2.20
Weighted average shares outstanding
Basic
178 178 178
181
Diluted
178 179 178
183
--------------
(a) Prior to periods ending September
30, 2008, such amounts were
included as
a component of Operating Expenses.
(b) Includes (i) $14 million and $41
million of a net benefit
during the
three months ended December 31, 2008 and 2007,
respectively,
and $18 million and $46 million of a net benefit
during the
twelve months ended December 31, 2008 and 2007,
respectively,
related to the resolution of and loss to certain
contingent
liabilities and assets and (ii) a cash charge of $24
million ($24
million, net of tax) for Vacation Exchange and
Rentals due
to foreign currency losses.
(c) 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 amount, net of tax, was
$10 million
during the twelve months ended December 31, 2007.
(d) Represents (i) a non-cash goodwill
impairment charge of $1,342
million ($1,337
million, net of tax) for Vacation Ownership to
reflect reduced
future cash flow estimates, (ii) non-cash
impairment
charges of $36 million ($28 million, net of tax) for
Vacation Exchange
and Rentals due to trademark and fixed asset
write downs
related to the Company's vacation rentals businesses
and the write-off
of the Company's investment in a joint venture,
(iii) a non-cash
impairment charge of $16 million ($10 million, net
of tax) for
Lodging related to the write down of franchise
agreements
of one of the Company's brands and (iv) a non-cash
impairment
charge of $4 million ($3 million, net of tax) for
Vacation Ownership
related to the termination of a development
project during
the three and twelve months ended December 31,
2008.
The twelve months ended December 31, 2008 also includes
a non-cash
impairment charge of $28 million ($17 million, net
of tax) for
Vacation Ownership due to the Company's initiative
to rebrand
its vacation ownership trademarks to the Wyndham
brand.
(e) Relates to costs incurred as a
result of various strategic
initiatives
approved by the Company and commenced during 2008.
Such amounts,
net of tax, were $45 million and $49 million
during the
three and twelve months ended December 31, 2008,
respectively.
Table 3
(1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1 Q2
Q3 Q4 Full
Year
---- -- --
-- -- ---------
Lodging (a)
Number of
Rooms (b)
2008 551,100 551,500 583,400 592,900
N/A
2007 539,300 541,700 540,900 550,600
N/A
2006 525,500 535,900 533,700 543,200
N/A
2005 519,300 516,000 512,000 532,700
N/A
RevPAR
2008 $32.21 $38.87 $41.93
$30.03 $35.74
2007 $31.35 $38.35 $43.10
$33.09 $36.48
2006 $30.45 $36.97 $40.82
$31.41 $34.95
2005 $25.53 $31.91 $36.86
$29.72 $31.00
Royalty,
Marketing and
Reservation
Revenue (in
000s)
2008 $104,162 $127,238 $145,502 $105,803 $482,709
2007 $105,426 $129,453 $146,290 $107,870 $489,041
2006 $102,741 $125,409 $138,383 $104,505 $471,039
2005 $84,704 $104,281 $119,829 $99,804 $408,620
Vacation Exchange and Rentals
Average
Number of
Members (in
000s)
2008 3,632 3,682
3,673 3,693 3,670
2007 3,474 3,506
3,538 3,588 3,526
2006 3,292 3,327
3,374 3,429 3,356
2005 3,148 3,185
3,233 3,271 3,209
Annual Dues
and Exchange
Revenue Per
Member
2008 $150.84 $128.91 $124.51 $109.56
$128.37
2007 $155.60 $132.33 $131.38 $124.59
$135.85
2006 $152.10 $130.37 $132.31 $128.13
$135.62
2005 $159.12 $134.98 $125.64 $124.05
$135.76
Vacation
Rental
Transactions
(in 000s)
2008 387 319
360 282 1,347
2007 398 326
360 293 1,376
2006 385 310
356 293 1,344
2005 367 311
344 278 1,300
Average Net
Price Per
Vacation
Rental
2008 $412.74 $477.63 $553.69 $400.09
$463.10
2007 $349.73 $415.71 $506.78 $426.93
$422.83
2006 $312.51 $374.91 $442.75 $356.16
$370.93
2005 $331.37 $363.14 $412.66 $325.62
$359.27
Vacation Ownership
Gross Vacation
Ownership
Interest
Sales (in
000s)
2008 $458,000 $532,000 $566,000 $432,000 $1,987,000
2007 $430,000 $523,000 $552,000 $488,000 $1,993,000
2006 $357,000 $434,000 $482,000 $469,000 $1,743,000
2005 $281,000 $354,000 $401,000 $360,000 $1,396,000
Tours
2008 255,000 314,000 334,000 240,000 1,143,000
2007 240,000 304,000 332,000 268,000 1,144,000
2006 208,000 273,000 312,000 254,000 1,046,000
2005 195,000 250,000 272,000 217,000
934,000
Volume Per
Guest (VPG)
2008 $1,668 $1,583 $1,550
$1,630 $1,602
2007 $1,607 $1,596 $1,545
$1,690 $1,606
2006 $1,475 $1,426 $1,434
$1,623 $1,486
2005 $1,349 $1,284 $1,349
$1,507 $1,368
--------------
Note: Full year amounts may not foot
across due to rounding.
(a) Quarterly drivers in the Lodging
segment include the acquisitions of
Microtel Inns
& Suites and Hawthorn Suites (July 2008), Baymont Inn &
Suites (April
2006) and Wyndham Hotels and Resorts (October 2005)
from their
acquisition dates forward. Therefore, the operating
statistics
are not presented on a comparable basis.
(b) Numbers include affiliated rooms
from the fourth quarter of 2006
forward.
Table 3
(2 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
GLOSSARY OF TERMS
-----------------
Lodging
Number of Rooms: Represents the number
of rooms at lodging properties at
the end of the period which are either
(i) under franchise and/or
management agreements, (ii) properties
affiliated with Wyndham Hotels and
Resorts brand for which we receive
a fee for reservation and/or other
services provided or (iii) properties
managed under the CHI Limited 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.
Royalty, Marketing and Reservation
Revenues: Royalty, marketing and
reservation revenues are typically
based on a percentage of the gross room
revenues of each hotel. Royalty revenue
is generally a fee charged to each
franchised or managed hotel for the
use of one of our trade names, while
marketing and reservation revenues
are fees that we collect and are
contractually obligated to spend to
support marketing and reservation
activities. Marketing and reservation
fees are also included in Table 4
within Marketing, Reservation and
Wyndham Rewards Revenues.
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.
General
Constant Currency: Represents comparison
eliminating the effects of
foreign exchange rate fluctuations
between periods.
Table 4
Wyndham Worldwide Corporation
ADDITIONAL DATA
Year Q1
Q2 Q3
Q4 Full Year
---- --
-- --
-- ---------
Lodging (a)
Number of
Properties (b) 2008
6,550 6,560 6,970
7,040 N/A
2007 6,450 6,460
6,460 6,540
N/A
2006 6,300 6,440
6,420 6,470
N/A
2005 6,400 6,380
6,350 6,350
N/A
Marketing,
Reservation
and Wyndham
Rewards
Revenues
(in 000s) (c) 2008
$62,200 $76,507 $85,491 $62,608
$286,807
2007 $61,369 $74,575 $84,820
$65,208 $285,973
2006 $58,572 $70,931 $78,856
$61,135 $269,495
2005 $45,066 $56,558 $65,812
$58,053 $225,491
Property
Management
Reimbursable
Revenue
(in 000s) (d) 2008
$27,128 $26,326 $24,973 $21,472
$99,899
2007 $15,624 $22,338 $25,612
$28,414 $91,987
2006 $15,732 $19,935 $17,210
$16,263 $69,142
2005 $-
$- $- $17,291
$17,291
Vacation Ownership
Deferred
Revenues
(in 000s) (e) 2008 $(81,716)
$(5,240) $(2,023) $13,870 $(75,108)
2007 $3,906 $(4,908) $506
$(21,092) $(21,588)
2006 $12,708 $(221) $(23,491) $(10,675)
$(21,679)
2005 $492 $(9,150) $(5,856)
$(2,022) $(16,536)
Provision for
Loan Losses
(in 000s) (f) 2008
$82,344 $112,669 $118,609 $136,090 $449,712
2007 $60,869 $75,032 $85,762
$83,644 $305,307
2006 $61,242 $55,872 $63,213
$78,680 $259,007
2005 $24,652 $27,754 $44,050
$31,644 $128,101
-------------
Note: Full year amounts may not foot
across due to rounding.
(a) Information includes the
acquisitions of Microtel Inns & Suites and
Hawthorn
Suites (July 2008), Baymont Inn & Suites (April 2006) and
Wyndham
Hotels and Resorts (October 2005) from their acquisition
dates
forward. Therefore, the data is not presented on a comparable
basis.
(b) Numbers include affiliated
hotels from the fourth quarter of 2006
forward.
(c) 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. Marketing and reservation
fees
are also included in the above table within royalty, marketing
and
reservation revenues. Wyndham Rewards revenues represent fees
we receive
relating to our loyalty program.
(d) Primarily represents payroll
costs in our hotel management business
that
we incur and pay on behalf of property owners and for which we
are
reimbursed by the property owners.
(e) Represents the revenue that
is deferred under the percentage of
completion
method of accounting. Under the percentage of
completion
method of accounting, a portion of the total revenue
from
a vacation ownership contract sale is not recognized if the
construction
of the vacation resort has not yet been fully
completed.
This revenue will be recognized in future periods in
proportion
to the costs incurred as compared to the total expected
costs
for completion of construction of the vacation resort.
Positive
amounts represent the recognition of previously deferred
revenues.
(f) Represents provision for
estimated losses on vacation ownership
contract
receivables originated during the period. Beginning
January
1, 2006, the Company recorded such provision as a contra
revenue
to vacation ownership interest sales on the Consolidated
and
Combined Statements of Income, as required by Statement of
Financial
Accounting Standards No. 152, "Accounting for Real
Estate
Time-Sharing Transactions." Prior to January 1, 2006, the
Company
recorded such provision, net of estimated inventory
recoveries,
as a separate expense line item on the Combined
Statements
of Income and thus 2005 amounts are not comparable
to 2006,
2007 and 2008 amounts.
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
December 31, September 30, June 30, March 31, December 31,
2008 2008
2008 2008
2007
------------ ------------- -------- --------- ------------
Securitized
vacation
ownership debt
Term notes
$1,252 $1,437 $1,727
$1,278 $1,435
Bank conduit
facility (a)
558 647
354 841
646
--- ---
--- ---
---
Securitized
vacation
ownership debt (b) 1,810
2,084 2,081 2,119
2,081
Less:
Current portion
of securitized
vacation
ownership debt
294 324
284 268
237
--- ---
--- ---
---
Long-term
securitized
vacation
ownership debt
$1,516 $1,760 $1,797
$1,851 $1,844
====== ====== ======
====== ======
Debt:
6.00% Senior
unsecured
notes (due
December
2016) (c)
$797 $797
$797 $797
$797
Term loan
(due July 2011)
300 300
300 300
300
Revolving credit
facility (due
July 2011) (d)
576 305
145 95
97
Vacation ownership
bank borrowings
159 172
196 181
164
Vacation rentals
capital leases
139 143
162 165
154
Other
13 12
13 14
14
-- --
-- --
--
Total debt
1,984 1,729
1,613 1,552
1,526
Less:
Current portion
of debt
169 182
207 193
175
--- ---
--- ---
---
Long-term debt
$1,815 $1,547 $1,406
$1,359 $1,351
====== ====== ======
====== ======
--------------
(a) Represents (i) a 364-day, non-recourse
vacation ownership bank
conduit facility
with a term through November 2009 and
availability
of $943 million and (ii) the outstanding balance
of the Company's
prior bank conduit facility that ceased operating
as a revolving
facility as of October 29, 2008 and will amortize in
accordance
with its terms, which is expected to be approximately
three years.
(b) This debt is collateralized by
$2,906 million, $2,721 million,
$2,723 million,
$2,667 million and $2,596 million of underlying
vacation ownership
contract receivables and related assets at
December 31,
2008, September 30, 2008, June 30, 2008, March 31,
2008 and December
31, 2007, respectively.
(c) The balance at December 31, 2008
represents $800 million aggregate
principal
less $3 million of unamortized discount.
(d) The Company's revolving credit
facility has a borrowing capacity
of $900 million.
At December 31, 2008, the Company has $33
million of
outstanding letters of credit and a remaining borrowing
capacity of
$291 million. The increase in balance from September 30,
2008 to December
31, 2008 is primarily due to the Company drawing
$215 million
on its revolving credit facility in conjunction with
the closing
of the Company's new conduit facility during November
2008.
The increase in balance from June 30, 2008 to September 30,
2008 primarily
relates to amounts borrowed to fund the July 2008
acquisition
of U.S. Franchise Systems, Inc. and its Microtel Inns &
Suites and
Hawthorn Suites hotel brands.
Table 6
(1 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Three Months Ended December 31, 2008
------------------------------------------------------
Average
Number Number Average Daily
Average Revenue
of of Occupancy
Rate Per Available
Brand
Properties Rooms Rate
(ADR) Room (RevPAR)
-----
---------- ------- ---------- -------- ---------------
Wyndham Hotels
and Resorts
82 21,724 53.2% $111.86
$59.49
Wingate Inn
164 15,051 51.5%
$90.77 $46.76
Hawthorn Suites
90 8,423 53.1%
$86.20 $45.73
Ramada
897 114,986 48.1% $79.31
$38.15
Baymont
227 19,090 45.4%
$64.60 $29.35
AmeriHost Inn
9 561 42.1%
$61.54 $25.92
Days Inn
1,880 152,971 43.4% $60.17
$26.09
Super 8
2,110 130,920 47.2% $55.82
$26.37
Howard Johnson
482 47,177 41.9%
$60.04 $25.16
Travelodge
479 36,154 41.2%
$57.40 $23.63
Microtel Inns &
Suites
308 22,106 51.4%
$56.88 $29.22
Knights Inn
301 19,542 36.9%
$42.39 $15.65
Unmanaged,
Affiliated
and Managed,
Non-Proprietary
Hotels (*)
14 4,175 N/A
N/A
N/A
----- -------
Total
7,043 592,880 45.7% $65.68
$30.03
===== =======
As of and For the Three Months Ended December 31, 2007
------------------------------------------------------
Average
Number Number Average Daily
Average Revenue
of of Occupancy
Rate Per Available
Brand Properties Rooms
Rate (ADR) Room (RevPAR)
----- ---------- ------- ---------
-------- ---------------
Wyndham Hotels
and Resorts
79 20,953 60.4% $111.71
$67.44
Wingate Inn
152 13,944 56.8%
$92.25 $52.42
Ramada
874 106,978 50.9% $83.24
$42.38
Baymont
193 16,592 43.2%
$58.92 $25.43
AmeriHost Inn
28 1,943 45.5%
$69.40 $31.60
Days Inn
1,883 153,333 46.7% $62.19
$29.05
Super 8
2,081 128,587 51.1% $57.77
$29.53
Howard Johnson
471 45,781 45.4%
$60.33 $27.39
Travelodge
494 36,876 44.7%
$67.25 $30.03
Knights Inn
268 18,733 37.7%
$43.35 $16.33
Unmanaged,
Affiliated
and Managed,
Non-Proprietary
Hotels (*)
21 6,856 N/A
N/A
N/A
----- -------
Total
6,544 550,576 48.6% $68.03
$33.09
===== =======
--------------
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.
Table 6
(2 of 2)
Wyndham Worldwide Corporation
HOTEL BRAND SYSTEMS DETAILS
As of and For the Twelve Months Ended December 31, 2008
-------------------------------------------------------
Average
Revenue
Average Per
Number Number Average
Daily Available
of of
Occupancy Rate Room
Brand
Properties Rooms Rate
(ADR) (RevPAR)
-----
---------- ------- ----------- -------- ---------
Wyndham Hotels
and Resorts
82 21,724 61.0% $120.79
$73.67
Wingate Inn
164 15,051 59.5%
$92.29 $54.94
Hawthorn Suites
90 8,423 57.7%
$88.57 $51.14
Ramada
897 114,986 52.6%
$81.62 $42.94
Baymont
227 19,090 49.7%
$65.96 $32.80
AmeriHost Inn
9 561
47.9% $69.87 $33.47
Days Inn
1,880 152,971 49.9%
$64.57 $32.19
Super 8
2,110 130,920 53.8%
$59.38 $31.95
Howard Johnson
482 47,177 46.9%
$64.62 $30.28
Travelodge
479 36,154 48.3%
$67.50 $32.64
Microtel Inns &
Suites
308 22,106 54.3%
$60.00 $32.55
Knights Inn
301 19,542 41.0%
$43.40 $17.80
Unmanaged,
Affiliated
and Managed,
Non-Proprietary
Hotels (*)
14 4,175 N/A
N/A N/A
----- -------
Total
7,043 592,880 51.4%
$69.52 $35.74
===== =======
As of and For the Twelve Months Ended December 31, 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
79 20,953 63.9% $112.42
$71.88
Wingate Inn
152 13,944 64.2%
$90.23 $57.96
Ramada
874 106,978 55.1%
$78.88 $43.48
Baymont
193 16,592 52.7%
$66.60 $35.09
AmeriHost Inn
28 1,943 48.5%
$67.09 $32.51
Days Inn
1,883 153,333 52.5%
$63.37 $33.24
Super 8
2,081 128,587 56.2%
$58.35 $32.80
Howard Johnson
471 45,781 48.4%
$64.34 $31.12
Travelodge
494 36,876 50.3%
$66.60 $33.52
Knights Inn
268 18,733 41.1%
$43.53 $17.88
Unmanaged,
Affiliated
and Managed,
Non-Proprietary
Hotels (*)
21 6,856 N/A
N/A N/A
----- -------
Total
6,544 550,576 53.7%
$67.96 $36.48
===== =======
--------------
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.
Table 7
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Twelve
Months
Three Months Ended
Ended
------------------------------------------- --------
March 31, June 30, Sept. 30, Dec. 31,
Dec. 31,
2008 2008
2008 2008
2008
---------- --------- ---------- --------- --------
Reported EBITDA
$130 $221
$294 $(1,280) $(635)
Goodwill
impairment (a)
- -
- 1,342 1,342
Other impairments (b)
28 -
- 56
84
Foreign currency
losses (c)
- -
- 24
24
Resolution of
and adjustment to
contingent
liabilities
and assets (d)
3 (7)
1 (14)
(18)
Restructuring
costs (e)
-- --
6 73
79
-- --
-- --
--
Adjusted EBITDA
$161 $214
$301 $201
$876
---------------
---- ----
---- ----
----
Reported PreTax
Income/(Loss)
$70 $160
$228 $(1,345) $(887)
Goodwill
impairment (a)
- -
- 1,342 1,342
Other impairments (b)
28 -
- 56
84
Foreign currency
losses (c)
- -
- 24
24
Resolution of
and adjustment to
contingent
liabilities
and assets (d)
3 (7)
1 (14)
(18)
Restructuring
costs (e)
-- --
6 73
79
-- --
-- --
--
Adjusted PreTax
Income
$101 $153
$235 $136
$624
--------
---- ----
---- ----
----
Reported Tax
Provision
$(28) $(62)
$(86) $(11) $(187)
Goodwill
impairment (f)
- -
- (5)
(5)
Other impairments (f)
(11) -
- (15)
(26)
Foreign currency
losses (f)
- -
- -
-
Resolution of
and adjustment to
contingent
liabilities
and assets (f)
- 3
1 7
12
Restructuring
costs (f)
-- --
(2) (28)
(30)
-- --
-- --
--
Adjusted Tax
Provision
$(39) $(59)
$(87) $(52) $(236)
----------
---- ----
---- ---- -----
Reported Net
Income/(Loss)
$42 $98
$142 $(1,356) $(1,074)
Goodwill
impairment
- -
- 1,337 1,337
Other impairments
17 -
- 41
58
Foreign currency losses
- -
- 24
24
Resolution of
and adjustment to
contingent
liabilities
and assets
3 (4)
2 (7)
(6)
Restructuring
costs
-- --
4 45
49
-- --
-- --
--
Adjusted
Net Income
$62 $94
$148 $84
$388
-----------
--- ---
--- ---
---
Reported
Diluted EPS
$0.24 $0.55
$0.80 $(7.63) $(6.05)
Goodwill
impairment
- -
- 7.52
7.51
Other impairments
0.10 -
- 0.23
0.32
Foreign currency
losses
- -
- 0.14
0.14
Resolution of
and adjustment to
contingent
liabilities
and assets
0.01 (0.02)
0.01 (0.04) (0.03)
Restructuring
costs
-- --
0.02 0.25
0.28
-- --
-- --
--
Adjusted
Diluted EPS
$0.35 $0.53
$0.83 $0.47 $2.18
------------
----- -----
----- ----- -----
Diluted Shares
178 178
178 178
178
--------------
Note: Amounts may not foot due to
rounding.
(a) Represents a non-cash goodwill
impairment charge for Vacation
Ownership
to reflect reduced future cash flow estimates.
(b) During the three months ended
March 31, 2008, represents a non-cash
impairment
charge of $28 million ($17 million, net of tax) for
Vacation Ownership
due to the Company's initiative to rebrand
its vacation
ownership trademarks to the Wyndham brand. During
the three
months ended December 31, 2008, represents (i)
non-cash impairment
charges of $36 million ($28 million, net of tax)
for Vacation
Exchange and Rentals due to trademark and fixed asset
write downs
related to the Company's vacation rentals businesses and
the write-off
of the Company's investment in a joint venture, (iii) a
non-cash impairment
charge of $16 million ($10 million, net of tax)
for Lodging
related to the write down of franchise agreements of one
of the Company's
brands and (iv) a non-cash impairment charge of $4
million ($3
million, net of tax) for Vacation Ownership related to
the termination
of a development project.
(c) Represents a cash charge for Vacation
Exchange and Rentals due to
foreign currency
losses.
(d) Relates to the net (benefit)/expense
from the resolution of and
adjustment
to certain contingent liabilities and assets.
(e) Relates to costs incurred as a
result of various strategic
initiatives
approved by the Company and commenced during the
third quarter
of 2008.
(f) Relates to the tax effect of the
adjustments.
Table 7
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS
(In millions, except per share data)
Twelve
Months
Three Months Ended
Ended
----------------------------------------- -------
March 31, June 30, Sept. 30, Dec. 31,
Dec. 31,
2007 2007
2007 2007 2007
---------- --------- ---------- ------- -------
Reported EBITDA
$192 $211
$248 $232 $883
Separation and
related costs (a)
6 7
3 -
16
Resolution of and
adjustment to
contingent
liabilities and
assets (b)
(13) (17)
25 (41) (46)
--- ---
-- --- ---
Adjusted EBITDA
$185 $201
$276 $191 $853
---------------
---- ----
---- ---- ----
Reported PreTax
Income
$139 $154
$189 $173 $655
Separation and
related costs (a)
6 7
3 -
16
Resolution of and
adjustment to
contingent
liabilities and
assets (b)
(13) (17)
25 (41) (46)
--- ---
-- --- ---
Adjusted PreTax
Income
$132 $144
$217 $132 $625
---------------
---- ----
---- ---- ----
Reported Tax
Provision
$(53) $(58)
$(72) $(69) $(252)
Separation and
related costs (c)
(2) (3)
(1) -
(6)
Resolution of and
adjustment to
contingent
liabilities and
assets (c)
4 6
(10) 20 20
--- ---
--- --- ---
Adjusted Tax
Provision
$(51) $(55)
$(83) $(49) $(238)
------------
---- ----
---- ---- -----
Reported Net Income
$86 $96
$117 $104 $403
Separation and
related costs
4 4
2 -
10
Resolution of and
adjustment to
contingent
liabilities and
assets
(9) (11)
15 (21) (26)
--- ---
--- --- ---
Adjusted Net Income
$81 $89
$134 $83 $387
-------------------
--- ---
---- --- ----
Reported Diluted EPS
$0.45 $0.52
$0.65 $0.58 $2.20
Separation and
related costs
0.02 0.02
0.01 - 0.05
Resolution of and
adjustment to
contingent
liabilities and
assets
(0.05) (0.06)
0.09 (0.12) (0.14)
----- -----
---- ----- -----
Adjusted Diluted EPS
$0.43 $0.49
$0.75 $0.46 $2.12
--------------------
----- -----
----- ----- -----
Diluted Shares
190 183
180 179 183
--------------
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)/expense
from the resolution of and
adjustment
to certain contingent liabilities and assets.
(c) Relates to the tax effect of the
adjustments.
Table 8
(1 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended December 31, 2008
------------------------------------------------
Foreign
As Goodwill
Other Currency
Reported Impairment Impairments
Losses
-------- ---------- -----------
--------
Net revenues
Vacation ownership
interest sales
$309
Service fees and
membership
360
Franchise fees
113
Consumer financing
112
Other
17
-- -
- -
Net revenues
911 -
- -
--- -
- -
Expenses
Operating
337
Cost of vacation
ownership interests
52
Consumer financing
interest
37
Marketing and reservation
171
General and
administrative
124
(24) (c)
Goodwill and other
impairments
1,398 (1,342) (a) (56) (b)
Restructuring costs
73
Depreciation and
amortization
47
---- ----
---- ----
Total expenses
2,239 (1,342)
(56) (24)
----- -----
----- -----
Operating
income/(loss)
(1,328) 1,342
56 24
Other income, net
(1)
Interest expense
22
Interest income
(4)
-- --
-- --
Income/(loss) before
income taxes
(1,345) 1,342
56 24
Provision for
income taxes
11 5 (f)
15 (f) - (f)
-- --
-- --
Net income/(loss)
$(1,356) $1,337
$41 $24
======= ======
=== ===
Earnings/(losses)
per share
$(7.63) $7.52
$0.23 $0.14
Weighted average shares
outstanding
178 178
178 178
Three Months Ended December 31, 2008
------------------------------------
Legacy Restructuring
As
Adjustments Costs
Adjusted
----------- ------------- --------
Net revenues
Vacation ownership
interest sales
$309
Service fees and
membership
360
Franchise fees
113
Consumer financing
112
Other
17
-
- --
Net revenues
-
- 911
-
- ---
Expenses
Operating
337
Cost of vacation
ownership interests
52
Consumer financing
interest
37
Marketing and
reservation
171
General and
administrative
14 (d)
114
Goodwill and other
impairments
-
Restructuring costs
(73) (e) -
Depreciation and
amortization
47
-- ---
--
Total expenses
14 (73)
758
-- ---
---
Operating
income/(loss)
(14) 73
153
Other income, net
(1)
Interest expense
22
Interest income
(4)
--
Income/(loss) before
income taxes
(14) 73
136
Provision for
income taxes
(7) (f) 28 (f)
52
-- --
--
Net income/(loss)
$(7) $45
$84
=== ===
===
Earnings/(losses)
per share
$(0.04) $0.25
$0.47
Weighted average shares
outstanding
178 178
178
--------------
(a) Represents a non-cash goodwill
impairment charge for Vacation
Ownership
to reflect reduced future cash flow estimates.
(b) Represents (i) non-cash impairment
charges of $36 million
($28 million,
net of tax) for Vacation Exchange and Rentals due to
trademark
and fixed asset write downs related to the Company's
vacation rentals
businesses and the write-off of the Company's
investment
in a jointventure, (ii) a non-cash impairment charge of
$16 million
($10 million, net of tax) for Lodging related to the
write down
of franchise agreements of one of the Company's brands
and (iii)
a non-cash impairment charge of $4 million ($3 million,
net of tax)
for Vacation Ownership related to the termination of
a development
project.
(c) Represents a cash charge for Vacation
Exchange and Rentals due to
foreign currency
losses.
(d) Relates to the net benefit from
the resolution of and adjustment to
certain contingent
liabilities and assets.
(e) Relates to costs incurred as a
result of various strategic
initiatives
approved by the Company and commenced during 2008.
(f) 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)
Twelve Months December 31, 2008
------------------------------------------------
Foreign
As Goodwill
Other Currency
Reported Impairment Impairments
Losses
-------- ---------- -----------
--------
Net revenues
Vacation ownership
interest sales
$1,463
Service fees and
membership
1,705
Franchise fees
514
Consumer financing
426
Other
173
--- ---
--- ---
Net revenues
4,281 -
- -
----- -----
----- -----
Expenses
Operating
1,622
Cost of vacation
ownership interests
278
Consumer financing
interest
131
Marketing and
reservation
830
General and
administrative
561
(24) (c)
Goodwill and other
impairments
1,426 (1,342) (a) (84)
(b)
Restructuring costs
79
Depreciation and
amortization
184
--- ---
--- ---
Total expenses
5,111 (1,342)
(84) (24)
----- -----
----- -----
Operating
income/(loss)
(830) 1,342
84 24
Other income, net
(11)
Interest expense
80
Interest income
(12)
---
Income/(loss) before
income taxes
(887) 1,342
84 24
Provision for
income taxes
187 5
(f) 26 (f)
- (f)
--- ---
--- ---
Net income/(loss)
$(1,074) $1,337
$58 $24
======= ======
=== ===
Earnings/(losses)
per share
Basic
$(6.05) $7.53
$0.33 $0.14
Diluted
(6.05) 7.51
0.32 0.14
Weighted average shares
outstanding
Basic
178 178
178 178
Diluted
178 178
178 178
Twelve Months Ended December 31, 2008
-------------------------------------
Legacy Restructuring
As
Adjustments Costs
Adjusted
----------- -------------
--------
Net revenues
Vacation ownership
interest sales
$1,463
Service fees and
membership
1,705
Franchise fees
514
Consumer financing
426
Other
173
-
- ---
Net revenues
-
- 4,281
-
- -----
Expenses
Operating
1,622
Cost of vacation
ownership interests
278
Consumer financing
interest
131
Marketing and
reservation
830
General and
administrative
18 (d)
555
Goodwill and other
impairments
-
Restructuring costs
(79) (e) -
Depreciation and
amortization
184
--
--- ---
Total expenses
18
(79) 3,600
--
--- -----
Operating
income/(loss)
(18)
79 681
Other income, net
(11)
Interest expense
80
Interest income
(12)
---
Income/(loss) before
income taxes
(18)
79 624
Provision for
income taxes
(12) (f) 30
(f) 236
---
--- ---
Net income/(loss)
$(6)
$49 $388
===
=== ====
Earnings/(losses)
per share
Basic
$(0.03) $0.28
$2.19
Diluted
(0.03)
0.28 2.18
Weighted average shares
outstanding
Basic
178
178 178
Diluted
178
178 178
--------------
Note: EPS amounts may not foot across
due to rounding.
(a) Represents a non-cash goodwill
impairment charge for Vacation
Ownership
to reflect reduced future cash flow estimates.
(b) Represents (i) non-cash impairment
charges of $36 million ($28
million, net
of tax) for Vacation Exchange and Rentals due to
trademark
and fixed asset write downs related to the Company's
vacation rentals
businesses and the write-off of the Company's
investment
in a joint venture, (ii) a non-cash impairment charge of
$28 million
($17 million, net of tax) for Vacation Ownership due to
the Company's
initiative to rebrand its vacation ownership
trademarks
to the Wyndham brand, (iii) a non-cash impairment
charge of
$16 million ($10 million, net of tax) for Lodging
related to
the write down of franchise agreements of one of the
Company's
brands and (iv) a non-cash impairment charge of
$4 million
($3 million, net of tax) for Vacation Ownership related to
the termination
of a development project.
(c) Represents a cash charge for Vacation
Exchange and Rentals due to
foreign currency
losses.
(d) Relates to the net benefit from
the resolution of and adjustment
to certain
contingent liabilities and assets.
(e) Relates to costs incurred as a
result of various strategic
initiatives
approved by the Company and commenced during the third
quarter of
2008.
(f) Relates to the tax effect of the
adjustments.
Table 8
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended December 31, 2007
-------------------------------------
As Legacy
As
Reported Adjustments Adjusted
-------- ----------- --------
Net revenues
Vacation ownership interest
sales
$383
$383
Service fees and membership
387
387
Franchise fees
118
118
Consumer financing
96
96
Other
48
48
-- -
--
Net revenues
1,032
- 1,032
-----
- -----
Expenses
Operating
387
387
Cost of vacation ownership
interests
80
80
Consumer financing interest
33
33
Marketing and reservation
199
199
General and administrative
100 41
(b) 141
Depreciation and amortization
44
44
-- --
--
Total expenses
843 41
884
--- ---
---
Operating income
189 (41)
148
Other income, net
1
1
Interest expense
17
17
Interest income
(2)
(2)
--
--
Income before income taxes
173 (41)
132
Provision for income taxes
69 (20) (c)
49
--- ---
---
Net income
$104 $(21)
$83
==== ====
===
Earnings per share
Basic
$0.59 $(0.12)
$0.47
Diluted
0.58 (0.12)
0.46
Weighted average shares
outstanding
Basic
178 178
178
Diluted
179 179
179
--------------
Note: EPS amounts may not foot across
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 certain contingent
liabilities.
(c) 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)
Twelve Months Ended December 31, 2007
-----------------------------------------------
Separation
As and Related
Legacy As
Reported Adjustments Adjustments Adjusted
-------- ----------- ----------- --------
Net revenues
Vacation ownership
interest sales
$1,666
$1,666
Service fees and
membership
1,619
1,619
Franchise fees
523
523
Consumer financing
358
358
Other
194
194
--- -
- ---
Net revenues
4,360
- -
4,360
-----
- -
-----
Expenses
Operating
1,632
1,632
Cost of vacation
ownership interests
376
376
Consumer financing
interest
110
110
Marketing and
reservation
831
831
General and
administrative
519
46 (b) 565
Separation and
related costs
16 (16) (a)
-
Depreciation and
amortization
166
166
--- ---
-- ---
Total expenses
3,650 (16)
46 3,680
----- -----
----- -----
Operating income
710 16
(46) 680
Other income, net
(7)
(7)
Interest expense
73
73
Interest income
(11)
(11)
---
---
Income before income
taxes
655 16
(46) 625
Provision for income
taxes
252 6
(c) (20) (c) 238
--- ---
--- ---
Net income
$403 $10
$(26) $387
==== ===
==== ====
Earnings per share
Basic
$2.22 $0.05
$(0.14) $2.13
Diluted
2.20 0.05
(0.14) 2.12
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 (now Avis Budget Group).
(b) Relates to the net benefit from
the resolution of certain contingent
liabilities
and assets.
(c) Relates to the tax effect of the
adjustments. |