PARSIPPANY, N.J., July 27, 2011-- Wyndham Worldwide
Corporation (NYSE: WYN) today announced results for the three months
ended June 30, 2011.
Highlights:
- Second quarter 2011 adjusted diluted earnings per share
(EPS) was $0.64, compared with $0.51 in the second quarter of 2010, an
increase of 25%. Second quarter 2011 reported diluted EPS was $0.67, an increase of 31%, compared with the
same period in 2010.
- Free cash flow increased 22% to $595
million for the first half, compared with $486
million during the same period in 2010. The Company defines free
cash flow as net cash provided by operating activities less capital
expenditures, equity investments and development advances.
- During the quarter, the Company repurchased approximately
6.2 million shares of its common stock at an average price of $32.50 for $200 million.
- The Company is increasing its full-year adjusted EPS
guidance from a range of $2.15 – $2.25 to a range of $2.32
– $2.40 based on a diluted share count
of 171 million.
"Wyndham Worldwide once again delivered strong results across
all three of our businesses, which are each well-positioned to deliver
profit growth in the future," said Stephen P.
Holmes, chairman and CEO, Wyndham
Worldwide. "In addition, we continue to generate significant and
growing levels of sustainable free cash flow that we are deploying to
drive shareholder value."
SECOND QUARTER 2011 OPERATING RESULTS
Second quarter revenues increased 13% from the prior year
period to $1.1 billion. The revenue
growth reflects strong RevPAR growth of 9.7% in our hotel business,
contributions from acquisitions of vacation rental businesses and
higher sales in the vacation ownership business.
For the second quarter of 2011, adjusted net income increased
to $108 million, compared with $95 million in the second quarter of 2010. On
a per share basis, adjusted net income grew 25% to $0.64 per diluted share, compared with the
same period in 2010. The increase reflects strong operational
performance by the Company's three business units and the significant
benefit from the Company's share repurchase program, partially offset
by higher tax rates compared with the second quarter of 2010. Adjusted
net income for the second quarter of 2011 excludes an after-tax net
benefit of $13 million related to a
refund of value added taxes. This was partially offset by $5 million of after-tax costs related to a
previously announced restructuring of call centers at the Company's
vacation exchange and rentals business and a $2
million after-tax expense related to the resolution of certain
contingent liabilities and assets.
Including the above adjustments, second quarter 2011 net
income grew 20% to $114 million, or $0.67 per diluted share, compared with net
income of $95 million, or $0.51 per diluted share, for the second
quarter of 2010.
Free cash flow increased 22% to $595
million for the first half, compared with $486
million during the same period in 2010. The growth in free cash
flow reflects higher cash earnings, more efficient working capital
utilization and a refund of value added taxes. For the first half, cash
provided by operating activities was $696
million, compared with $557 million
in the prior year period.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $190 million in
the second quarter of 2011, an increase of 7%, compared with the second
quarter of 2010, reflecting a RevPAR increase and incremental revenues
related to the acquisition of the TRYP hotel brand in June of 2010.
In the second quarter of 2011 system-wide RevPAR increased
9.7%. Excluding the impact of the TRYP by Wyndham hotel brand and in
constant currency, the increase was 5.8%.
Second quarter 2011 EBITDA was $66
million, an increase of 32%, compared with second quarter 2010
adjusted EBITDA, primarily as a result of the RevPAR improvement and
lower bad debt expense.
As of June 30, 2011, the
Company's hotel system consisted of approximately 7,220 properties and
612,900 rooms. The development pipeline included over 840 hotels and
approximately 111,000 rooms, of which 58% were new construction.
International rooms accounted for 64% of the development pipeline.
Vacation Exchange and Rentals (Wyndham Exchange &
Rentals)
Revenues were $361 million in
the second quarter of 2011, an increase of 28% compared with the second
quarter of 2010, reflecting incremental revenues from acquisitions and
the favorable impact from foreign currency.
Exchange revenues were $168 million,
an increase of 4%, compared with the second quarter of 2010. In
constant currency, exchange revenues increased 2%, reflecting a 1%
increase in exchange revenue per member. The average number of members
remained relatively flat.
Vacation rental revenues were $180
million, which included $46 million
of incremental revenues related to acquisitions, compared with $115 million in the second quarter of 2010. In
constant currency, excluding the impact of the incremental revenues
from acquisitions, net revenues generated from rental transactions and
related services increased 3%, reflecting a 5% increase in the average
net price per vacation rental, partially offset by a 1% decline in
rental transaction volume.
Adjusted EBITDA for the second quarter of 2011 was $82 million, a 5% increase compared with $78 million in the prior year period. The
increase reflects incremental contributions from acquisitions. Second
quarter 2011 adjusted EBITDA excludes a net benefit of $31 million related to a refund of value added
taxes and $7 million of costs related to
a previously announced restructuring initiative.
Vacation Ownership (Wyndham Vacation Ownership)
Gross Vacation Ownership Interest (VOI) sales were $412 million in the second quarter of 2011, up
11% from the second quarter of 2010, reflecting a 9% increase in tour
flow and a 3% increase in volume per guest.
Total segment revenues were $541
million in the second quarter of 2011, compared with $505 million in the second quarter of 2010,
reflecting the increase in gross VOI sales and a lower provision for
loan losses.
EBITDA for the second quarter of 2011 increased 25% to $130 million, compared with EBITDA of $104 million in the second quarter of 2010.
This EBITDA increase reflects the increase in VOI sales and the lower
provision for loan losses.
Other Items
- The Company repurchased approximately 6.2 million shares of
its common stock during the second quarter of 2011 at an average price
of $32.50 and an additional 1.5 million
shares at an average price of $34.11
through July 26, 2011.
- Net interest expense in the second quarter of 2011 was $35 million. Net interest includes $3 million of expenses related to value added
tax accruals and $1 million of costs
associated with the early repurchase of a portion of the Company's
convertible notes, which are excluded from adjusted net income.
- The Company previously announced the closing of a new $1 billion revolving credit facility with a
maturity date of July 15, 2016 to
replace its existing $980 million
facility, which had been scheduled to mature in October
2013. There is no change to the Company's overall corporate debt
balance as a result of this transaction.
Balance Sheet Information as of June
30, 2011:
- Cash and cash equivalents of approximately $295 million, compared with approximately $155 million at December
31, 2010.
- Vacation ownership contract receivables, net, of $2.9 billion, compared with $3.0 billion at December
31, 2010.
- Vacation ownership and other inventory of $1.1 billion, compared with $1.2 billion at December
31, 2010.
- Securitized vacation ownership debt of $1.7 billion, unchanged from December 31, 2010.
- Other debt of $2.0 billion,
compared with $2.1 billion at December 31, 2010. The remaining borrowing
capacity on the revolving credit facility was $860
million, compared with $788 million
as of December 31, 2010.
A schedule of debt is included in the financial tables section
of this press release.
Outlook
The Company is increasing full-year 2011 adjusted EPS guidance
from $2.15 – $2.25
to $2.32 – $2.40, based on a
diluted share count of 171 million.
The Company is increasing full-year 2011 guidance:
- Revenues from approximately $4.0
– $4.2 billion to approximately $4.2 – $4.3 billion
- Adjusted EBITDA from approximately $925
– $955 million to approximately $960 – $975 million
The guidance reflects assumptions used for internal planning
purposes. Guidance may exclude legacy items, restructuring costs, debt
extinguishment, asset impairments, value added tax refunds and
acquisition costs, if any, which may have a positive or negative impact
on reported results. If economic conditions change materially from
current levels, these assumptions and our guidance may change
materially. It is not practicable to provide a reconciliation of
forecasted adjusted EBITDA and EPS to the most directly comparable GAAP
measures because certain items cannot be reasonably estimated or
predicted at this time. Any such items could be significant to our
financial results.
Conference Call Information
Wyndham Worldwide Corporation will hold a conference call with
investors to discuss this news on Wednesday,
July 27, 2011 at 8:30 a.m. EDT.
Listeners may access the webcast live through the Company's website at www.wyndhamworldwide.com/investors/.
An archive of this webcast will be available at the website for
approximately 90 days beginning at noon EDT
on July 27, 2011. The conference call
may also be accessed by dialing (800) 369-2052 and providing the
passcode "WYNDHAM." Listeners are urged to call at least 10 minutes
prior to the scheduled start time. A telephone replay will be available
for approximately 90 days beginning at noon EDT
on July 27, 2011, at (866) 443-1216.
Presentation of Financial Information
Financial information discussed in this press release includes
both GAAP and non-GAAP measures, which include or exclude certain
items. These non-GAAP measures differ from reported results and are
intended to illustrate what management believes are relevant
period-over-period comparisons. A complete reconciliation of reported
GAAP results to the comparable non-GAAP information appears in the
financial tables section of the press release.
About Wyndham Worldwide Corporation
As one of the world's largest hospitality companies, Wyndham
Worldwide offers individual consumers and business-to-business
customers a broad suite of hospitality services and products across
various accommodation alternatives and price ranges through its premier
portfolio of world-renowned brands. Wyndham Worldwide encompasses
approximately 7,380 franchised hotels and vacation ownership resorts
with approximately 633,700 rooms worldwide. Wyndham Exchange &
Rentals offers leisure travelers, including its 3.8 million members,
access to approximately 97,000 vacation properties located in
approximately 100 countries. Wyndham Vacation Ownership develops,
markets and sells vacation ownership interests and provides consumer
financing to owners through its network of vacation ownership resorts
serving nearly 815,000 owners throughout North
America, the Caribbean and the
South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately
26,000 employees globally.
For more information about Wyndham Worldwide, please visit the
Company's website at www.wyndhamworldwide.com.
Forward-Looking Statements
This press release contains "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, conveying management's expectations as to the future
based on plans, estimates and projections at the time the Company makes
the statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. The
forward-looking statements contained in this press release include
statements related to the Company's revenues, earnings and related
financial and operating measures.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Factors that could cause actual results to differ
materially from those in the forward-looking statements include general
economic conditions, the performance of the financial and credit
markets, the economic environment for the hospitality industry, the
impact of war, terrorist activity or political strife, operating risks
associated with the hotel, vacation exchange and rentals and vacation
ownership businesses, as well as those described in the Company's
Quarterly Report on Form 10-Q, filed with the SEC on April 29, 2011. Except for the Company's
ongoing obligations to disclose material information under the federal
securities laws, it undertakes no obligation to release publicly any
revisions to any forward-looking statements, to report events or to
report the occurrence of unanticipated events.
Table 1
(1 of
2)
Wyndham
Worldwide Corporation
OPERATING
RESULTS OF REPORTABLE SEGMENTS
(In
millions)
|
|
|
|
In
addition to other measures, management evaluates the operating results
of each of its reportable segments based upon net revenues and
"EBITDA," which is defined as net income before depreciation and
amortization, interest expense (excluding consumer financing interest),
interest income (excluding consumer financing interest) and income
taxes, each of which is presented on the Company's Consolidated
Statements of Income. The Company believes that EBITDA is a useful
measure of performance for the Company's industry segments which, when
considered with GAAP measures, the Company believes gives a more
complete understanding of its operating performance. The Company's
presentation of EBITDA may not be comparable to similarly-titled
measures used by other companies.
The
following tables summarize net revenues and EBITDA for reportable
segments, as well as reconcile EBITDA to net income for the three
months ended June 30, 2011 and 2010:
|
|
|
|
|
Three
Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Lodging
|
$ 190
|
|
$ 66
|
|
$ 178
|
|
$ 49
|
(d)
|
|
Vacation
Exchange and Rentals
|
361
|
|
106
|
(b)
|
281
|
|
78
|
|
|
Vacation
Ownership
|
541
|
|
130
|
|
505
|
|
104
|
|
|
Total
Reportable Segments
|
1,092
|
|
302
|
|
964
|
|
231
|
|
|
Corporate
and Other (a)
|
(2)
|
|
(26)
|
(c)
|
(1)
|
|
(14)
|
|
|
Total
Company
|
$ 1,090
|
|
$ 276
|
|
$ 963
|
|
$ 217
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
$ 276
|
|
|
|
$ 217
|
|
|
Depreciation
and amortization
|
|
|
45
|
|
|
|
42
|
|
|
Interest
expense
|
|
|
37
|
(e)
|
|
|
36
|
|
|
Interest
income
|
|
|
(2)
|
|
|
|
(2)
|
|
|
Income
before income taxes
|
|
|
196
|
|
|
|
141
|
|
|
Provision
for income taxes
|
|
|
82
|
|
|
|
46
|
|
|
Net
income
|
|
|
$ 114
|
|
|
|
$ 95
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
(a)
Includes the elimination of transactions between segments.
(b)
Includes (i) a $31 million net benefit resulting from a refund of value
added taxes and (ii) $7 million of restructuring costs incurred in
connection with a strategic initiative commenced by the Company during
2010.
(c)
Includes $3 million of a net expense related to the resolution of and
adjustment to certain contingent liabilities and assets resulting from
our separation.
(d)
Includes $1 million related to costs incurred in connection with the
Company's acquisition of the TRYP hotel brand during June 2010.
(e)
Includes (i) $3 million of interest related to value added tax accruals
and (ii) $1 million of costs incurred for the early repurchase of a
portion of the Company's 3.50% convertible notes during the second
quarter of 2011.
|
|
|
|
|
|
|
|
|
|
|
The
following tables summarize ne t
revenues and Adjusted EBITDA for reportable segments for the three
months ended June 30, 2011 and 2010 (for a description of adjustments
by segment, see Table 7):
|
|
|
|
|
Three
Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
Net
Revenues
|
|
Adjusted
EBITDA
|
|
Net
Revenues
|
|
Adjusted
EBITDA
|
|
|
Lodging
|
$ 190
|
|
$ 66
|
|
$ 178
|
|
$ 50
|
|
|
Vacation
Exchange and Rentals
|
361
|
|
82
|
|
281
|
|
78
|
|
|
Vacation
Ownership
|
541
|
|
130
|
|
505
|
|
104
|
|
|
Total
Reportable Segments
|
1,092
|
|
278
|
|
964
|
|
232
|
|
|
Corporate
and Other
|
(2)
|
|
(23)
|
|
(1)
|
|
(14)
|
|
|
Total
Company
|
$ 1,090
|
|
$ 255
|
|
$ 963
|
|
$ 218
|
|
|
|
|
|
|
|
|
|
|
|
Table 1
(2 of
2)
Wyndham
Worldwide Corporation
OPERATING
RESULTS OF REPORTABLE SEGMENTS
(In
millions)
|
|
|
|
The
following tables summarize net revenues and EBITDA for reportable
segments, as well as reconcile EBITDA to net income for the six months
ended June 30, 2011 and 2010:
|
|
|
|
|
Six
Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Lodging
|
$ 339
|
|
$ 92
|
(c)
|
$ 322
|
|
$ 82
|
(f)
|
|
Vacation
Exchange and Rentals
|
716
|
|
199
|
(d)
|
582
|
|
158
|
(g)
|
|
Vacation
Ownership
|
992
|
|
227
|
(e)
|
950
|
|
186
|
|
|
Total
Reportable Segments
|
2,047
|
|
518
|
|
1,854
|
|
426
|
|
|
Corporate
and Other (a) (b)
|
(6)
|
|
(38)
|
|
(5)
|
|
(34)
|
|
|
Total
Company
|
$ 2,041
|
|
$ 480
|
|
$ 1,849
|
|
$ 392
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
$ 480
|
|
|
|
$ 392
|
|
|
Depreciation
and amortization
|
|
|
90
|
|
|
|
85
|
|
|
Interest
expense
|
|
|
81
|
(h)
|
|
|
86
|
(i)
|
|
Interest
income
|
|
|
(3)
|
|
|
|
(2)
|
|
|
Income
before income taxes
|
|
|
312
|
|
|
|
223
|
|
|
Provision
for income taxes
|
|
|
126
|
|
|
|
78
|
|
|
Net
income
|
|
|
$ 186
|
|
|
|
$ 145
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
(a)
Includes the elimination of transactions between segments.
(b)
Includes $8 million of a net benefit and $1 million of a net expense
during the six months ended June 30, 2011 and 2010, respectively,
related to the resolution of and adjustment to certain contingent
liabilities and assets resulting from our separation.
(c)
Includes a non-cash impairment ch arge
of $13 million to reduce the value of an international joint venture in
the Company's hotel business.
(d)
Includes (i) a $31 million net benefit resulting from a refund of value
added taxes and (ii) $7 million of restructuring costs incurred in
connection with a strategic initiative commenced by the Company during
2010.
(e)
Includes a $1 million benefit for the reversal of costs incurred as a
result of various strategic initiatives commenced by the Company during
2008.
(f)
Includes $1 million related to costs incurred in connection with the
Company's acquisition of the TRYP hotel brand during June 2010.
(g)
Includes $4 million related to costs incurred in connection with the
Company's acquisition of Hoseasons Holdings Ltd. during March 2010.
(h)
Includes (i) $12 million of costs incurred for the early repurchase of
a portion of the Company's 3.50% convertible notes during the first
half of 2011 and (ii) $3 million of interest related to value added tax
accruals.
(i)
Includes $16 million of costs incurred for the early extinguishment of
the Company's term loan facility and revolving foreign credit facility
during March 2010.
|
|
|
|
|
|
|
|
|
|
|
The
following tables summarize net revenues and Adjusted EBITDA for
reportable segments for the six months ended June 30, 2011 and 2010
(for a description of adjustments by segment, see Table 7):
|
|
|
|
|
Six
Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
Net
Revenues
|
|
Adjusted
EBITDA
|
|
Net
Revenues
|
|
Adjusted
EBITDA
|
|
|
Lodging
|
$ 339
|
|
$ 105
|
|
$ 322
|
|
$ 83
|
|
|
Vacation
Exchange and Rentals
|
716
|
|
175
|
|
582
|
|
162
|
|
|
Vacation
Ownership
|
992
|
|
226
|
|
950
|
|
186
|
|
|
Total
Reportable Segments
|
2,047
|
|
506
|
|
1,854
|
|
431
|
|
|
Corporate
and Other
|
(6)
|
|
(46)
|
|
(5)
|
|
(33)
|
|
|
Total
Company
|
$ 2,041
|
|
$ 460
|
|
$ 1,849
|
|
$ 398
|
|
|
|
|
|
|
|
|
|
|
|
Table 2
Wyndham
Worldwide Corporation
CONSOLIDATED
STATEMENTS OF INCOME
(In
millions, except per share data)
|
|
|
|
|
|
|
Three
Months Ended
June
30,
|
|
Six
Months Ended
June
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
and membership fees
|
|
$ 499
|
|
$ 409
|
|
$ 995
|
|
$ 833
|
|
|
|
Vacation
ownership interest sales
|
|
313
|
|
271
|
|
535
|
|
488
|
|
|
|
Franchise
fees
|
|
134
|
|
120
|
|
235
|
|
211
|
|
|
|
Consumer
financing
|
|
103
|
|
106
|
|
206
|
|
211
|
|
|
|
Other
|
|
41
|
|
57
|
|
70
|
|
106
|
|
|
Net
revenues
|
|
1,090
|
|
963
|
|
2,041
|
|
1,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
458
|
|
387
|
(a)
|
868
|
|
769
|
(a)
|
|
|
Cost
of vacation ownership interests
|
|
48
|
|
49
|
|
79
|
|
86
|
|
|
|
Consumer
financing interest
|
|
23
|
|
29
|
|
46
|
|
53
|
|
|
|
Marketing
and reservation
|
|
153
|
|
138
|
|
290
|
|
261
|
|
|
|
General
and administrative (b)
|
|
126
|
(c)
|
146
|
|
266
|
(c)
|
293
|
|
|
|
Asset
impairment
|
|
-
|
|
-
|
|
13
|
(d)
|
-
|
|
|
|
Restructuring
|
|
7
|
(e)
|
-
|
|
6
|
(f)
|
-
|
|
|
|
Depreciation
and amortization
|
|
45
|
|
42
|
|
90
|
|
85
|
|
|
Total
expenses
|
|
860
|
|
791
|
|
1,658
|
|
1,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
230
|
|
172
|
|
383
|
|
302
|
|
|
Other
income, net
|
|
(1)
|
|
(3)
|
|
(7)
|
(g)
|
(5)
|
|
|
Interest
expense
|
|
37
|
(h)
|
36
|
|
81
|
(i)
|
86
|
(j)
|
|
Interest
income
|
|
(2)
|
|
(2)
|
|
(3)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
196
|
|
141
|
|
312
|
|
223
|
|
|
Provision
for income taxes
|
|
82
|
|
46
|
|
126
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 114
|
|
$ 95
|
|
$ 186
|
|
$ 145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.68
|
|
$ 0.53
|
|
$ 1.10
|
|
$ 0.81
|
|
|
|
Diluted
|
|
0.67
|
|
0.51
|
|
1.07
|
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
167
|
|
180
|
|
170
|
|
180
|
|
|
|
Diluted
|
|
170
|
|
187
|
|
174
|
|
186
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes $1 million during both the three and six months ended
June 30, 2010 related to costs incurred in connection with the
Company's June 2010 acquisition of the TRYP hotel brand. The six months
ended June 30, 2010 also includes $4 million of costs incurred in
connection with the Company's March 2010 acquisition of Hoseasons
Holdings Ltd.
(b)
Includes $3 million of a net expense during the three months ended June
30, 2011 and $4 million of a net benefit and $1 million of a net
expense during the six months ended June 30, 2011 and 2010,
respectively, related to the resolution of and adjustment to certain
contingent liabilities and assets resulting from our separation.
(c)
Includes a $31 million net benefit resulting from a refund of value
added taxes for both the three and six months ended June 30, 2011.
(d)
Represents a non-cash impairment charge to reduce the value of an
international joint venture in the Company's hotel business.
(e)
Reflects costs incurred as a result of a strategic initiative commenced
by the Company during 2010.
(f)
Includes (i) $7 million of costs incurred as a result of a strategic
initiative commenced by the Company during 2010 and (ii) a $1 million
benefit for the reversal of costs incurred as a result of various
strategic initiatives commenced by the Company during 2008.
(g)
The six months ended June 30, 2011, also includes $4 million of a gain
related to the redemption of a preferred stock investment allocated to
the Company in connection with our separation.
(h)
Includes (i) $3 million of interest related to value added tax accruals
and (ii) $1 million of costs incurred for the early repurchase of a
portion of the Company's 3.50% convertible notes during the second
quarter of 2011.
(i)
Includes (i) $12 million of costs incurred for the early repurchase of
a portion of the Company's 3.50% convertible notes during the first
half of 2011 and (ii) $3 million of interest related to non-U.S. value
added tax accruals.
(j)
Includes $16 million of costs incurred for the early extinguishment of
the Company's term loan facility and revolving foreign credit facility
during March 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
(1 of
3)
Wyndham
Worldwide Corporation
OPERATING
STATISTICS
|
|
|
|
|
Year
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
Lodging
(a)
|
|
|
|
|
|
|
|
|
Number
of Rooms
|
2011
|
609,600
|
612,900
|
N/A
|
N/A
|
N/A
|
|
|
2010
|
593,300
|
606,800
|
605,700
|
612,700
|
N/A
|
|
|
2009
|
588,500
|
590,200
|
590,900
|
597,700
|
N/A
|
|
|
2008
|
551,100
|
551,500
|
583,400
|
592,900
|
N/A
|
|
|
|
|
|
|
|
|
|
|
RevPAR
|
2011
|
$ 27.71
|
$ 35.38
|
N/A
|
N/A
|
N/A
|
|
|
2010
|
$ 25.81
|
$ 32.25
|
$ 37.14
|
$ 29.18
|
$ 31.14
|
|
|
2009
|
$ 27.69
|
$ 32.38
|
$ 34.81
|
$ 26.47
|
$ 30.34
|
|
|
2008
|
$ 32.21
|
$ 38.87
|
$ 41.93
|
$ 30.03
|
$ 35.74
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
Average
Number of Members (in 000s)
|
2011
|
3,766
|
3,755
|
N/A
|
N/A
|
N/A
|
|
|
2010
|
3,746
|
3,741
|
3,766
|
3,759
|
3,753
|
|
|
2009
|
3,789
|
3,795
|
3,781
|
3,765
|
3,782
|
|
|
2008
|
3,632
|
3,682
|
3,673
|
3,693
|
3,670
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenue Per Member
|
2011
|
$
205.64
|
$
178.46
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
$
201.93
|
$
172.20
|
$
173.44
|
$
162.59
|
$
177.53
|
|
|
|
2009
|
$
194.83
|
$
174.22
|
$
173.90
|
$
163.89
|
$
176.73
|
|
|
|
2008
|
$
234.05
|
$
201.04
|
$
193.39
|
$
165.99
|
$
198.48
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Rental Transactions (in 000s) (b)
|
2011
|
398
|
328
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
291
|
297
|
322
|
253
|
1,163
|
|
|
|
2009
|
273
|
231
|
264
|
196
|
964
|
|
|
|
2008
|
269
|
220
|
255
|
191
|
936
|
|
|
|
|
|
|
|
|
|
|
|
Average
Net Price Per Vacation Rental (b)
|
2011
|
$
377.71
|
$
549.09
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
$
361.17
|
$
387.01
|
$
500.31
|
$
449.12
|
$
425.38
|
|
|
|
2009
|
$
353.15
|
$
471.74
|
$
594.34
|
$
499.66
|
$
477.38
|
|
|
|
2008
|
$
442.50
|
$
541.69
|
$
659.93
|
$
460.86
|
$
528.95
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
Gross
Vacation Ownership Interest (VOI) Sales (in 000s) (c)
|
2011
|
$
319,000
|
$
412,000
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
$
308,000
|
$
371,000
|
$
412,000
|
$
373,000
|
$
1,464,000
|
|
|
|
2009
|
$
280,000
|
$
327,000
|
$
366,000
|
$
343,000
|
$
1,315,000
|
|
|
|
2008
|
$
458,000
|
$
532,000
|
$
566,000
|
$
432,000
|
$
1,987,000
|
|
|
|
|
|
|
|
|
|
|
|
Tours
(d)
|
2011
|
137,000
|
177,000
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
123,000
|
163,000
|
187,000
|
160,000
|
634,000
|
|
|
|
2009
|
137,000
|
164,000
|
173,000
|
142,000
|
617,000
|
|
|
|
2008
|
255,000
|
314,000
|
334,000
|
240,000
|
1,143,000
|
|
|
|
|
|
|
|
|
|
|
|
Volume
Per Guest (VPG) (d)
|
2011
|
$ 2,192
|
$ 2,227
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
$ 2,334
|
$ 2,156
|
$ 2,081
|
$ 2,214
|
$ 2,183
|
|
|
|
2009
|
$ 1,866
|
$ 1,854
|
$ 1,944
|
$ 2,210
|
$ 1,964
|
|
|
|
2008
|
$ 1,668
|
$ 1,583
|
$ 1,550
|
$ 1,630
|
$ 1,602
|
|
__________
|
|
|
|
|
|
|
|
Note:
Full year amounts may not foot across due to
rounding.
(a)
Includes the impact of the acquisitions of Microtel Inns & Suites
and Hawthorn Suites (July 2008) and the TRYP hotel brand (June 2010)
from the acquisition dates forward. Therefore, the operating statistics
are not presented on a comparable basis.
(b)
Includes the impact of the acquisitions of Hoseasons (March 2010),
ResortQuest (September 2010) and James Villa Holidays (November 2010)
from the acquisition dates forward. Therefore, the operating statistics
are not presented on a comparable basis.
(c)
Includes gross VOI sales under the Company's Wyndham Asset Affiliate
Model (WAAM) beginning in the first quarter of 2010 (see Table 9 for a
reconciliation of gross VOI sales to vacation ownership interest
sales).
(d)
Includes the impact of WAAM related tours beginning in the first
quarter of 2010.
|
|
|
|
|
|
|
|
|
|
Table 3
(2 of
3)
Wyndham
Worldwide Corporation
ADDITIONAL
DATA
|
|
|
|
|
|
Year
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
Lodging
(a)
|
|
|
|
|
|
|
|
|
Number
of Properties
|
2011
|
7,190
|
7,220
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
7,090
|
7,160
|
7,150
|
7,210
|
N/A
|
|
|
|
2009
|
6,990
|
7,020
|
7,040
|
7,110
|
N/A
|
|
|
|
2008
|
6,550
|
6,560
|
6,970
|
7,040
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
Deferred
Revenues (in 000s) (b)
|
2011
|
$ -
|
$ -
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
|
|
|
2009
|
$
67,000
|
$
37,000
|
$
36,000
|
$
47,000
|
$
187,000
|
|
|
|
2008
|
$
(82,000)
|
$
(5,000)
|
$
(2,000)
|
$
14,000
|
$
(75,000)
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses (in 000s) (c)
|
2011
|
$
79,000
|
$
80,000
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
$
86,000
|
$
87,000
|
$
85,000
|
$
82,000
|
$
340,000
|
|
|
|
2009
|
$
107,000
|
$
122,000
|
$
117,000
|
$
103,000
|
$
449,000
|
|
|
|
2008
|
$
82,000
|
$
113,000
|
$
119,000
|
$
136,000
|
$
450,000
|
|
|
|
|
|
|
|
|
|
|
|
Sales
under WAAM (in 000s) (d)
|
2011
|
$
18,000
|
$
19,000
|
N/A
|
N/A
|
N/A
|
|
|
|
2010
|
$ 5,000
|
$
13,000
|
$
20,000
|
$
14,000
|
$
51,000
|
|
|
|
|
|
|
|
|
|
|
|
WAAM
Commission Revenues (in 000s)
|
2011
|
$
10,000
|
$
11,000
|
N/ A
|
N/A
|
N/A
|
|
|
|
2010
|
$ 3,000
|
$ 8,000
|
$
12,000
|
$ 9,000
|
$
31,000
|
|
__________
|
|
|
|
|
|
|
|
Note:
Full year amounts may not foot across due to
rounding.
(a)
Includes the impact of the acquisitions of Microtel Inns & Suites
and Hawthorn Suites (July 2008) and the TRYP hotel brand (June 2010)
from the acquisition dates forward. Therefore, the operating statistics
are not presented on a comparable basis.
(b)
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 cons truction
of the vacation resort. Positive amounts represent the recognition of
previously deferred revenues.
(c)
Represents provision for estimated losses on vacation ownership
contract receivables originated during the period, which is recorded as
a contra revenue to vacation ownership interest sales on the
Consolidated Statements of Income.
(d)
Represents gross VOI sales under the Company's WAAM for which the
Company earns commission revenue (WAAM Commission Revenues). The
commission revenue earned on these sales is included in service fees
and membership revenues on the Consolidated Statement of Income. The
Company implemented this sales model during the first quarter of 2010
and, as such, there is no historical data prior to 2010.
|
|
|
|
|
|
|
|
|
|
Table 3
(3 of
3)
Wyndham
Worldwide Corporation
OPERATING
STATISTICS
GLOSSARY
OF TERMS
|
|
|
|
Lodging
Number
of Rooms: Represents the number of rooms at lodging
properties at the end of the period which are either (i) under
franchise and/or management agreements, (ii) properties under
affiliation agreements for which we receive a fee for reservation
and/or other services provided or (iii) properties managed under a
joint venture.
Average
Occupancy Rate: Represents
the percentage of available rooms occupied during the period.
Average
Daily Rate (ADR): Represents
the average rate charged for renting a lodging room for one day.
RevPAR:
Represents revenue per available room and is
calculated by multiplying average occupancy rate by ADR. Comparable
RevPAR represents RevPAR of hotels which are included in both periods.
Vacation
Exchange and Rentals
Average
Number of Members:
Represents members in our vacation exchange programs who pay annual
membership dues. For additional fees, such participants are entitled to
exchange intervals for intervals at other properties affiliated with
our vacation exchange business. In addition, certain participants may
exchange intervals for other leisure-related products and services.
Exchange
Revenue Per Member: Represents
total annualized revenues generated from fees associated with
memberships, exchange transactions, member-related rentals and other
servicing for the period divided by the average number of vacation
exchange members during the period.
Vacation
Rental Transactions:
Represents the number of transactions that are generated in connection
with customers booking their vacation rental stays through us. One
rental transaction is recorded for each standard one-week rental.
Average
Net Price Per Vacation Rental: Represents
the net rental price generated from renting vacation properties to
customers and other related rental servicing fees divided by the number
of vacation rental transactions.
Vacation
Ownership
Gross
Vacation Ownership Interest Sales: Represents
sales of vacation ownership interest (VOIs), including Wyndham Asset
Affiliation Model sales, before the net effect of
percentage-of-completion accounting and loan loss provisions. See Table
9 for a reconciliation of Gross VOI sales to Vacation Ownership
Interest Sales. We believe that Gross VOI sales provides an enhanced
understanding of the performance of our vacation ownership business
because it directly measures the sales volume of this business during a
given reporting period.
Tours:
Represents the number of tours taken by guests in
our efforts to sell vacation ownership interests.
Volume
per Guest (VPG): Represents
gross VOI sales (excluding tele-sales upgrades, which are non-tour
upgrade sales) divided by the number of tours. We have excluded
non-tour upgrade sales in the calculation of VPG because non-tour
upgrade sales are generated by a different marketing channel. See Table
9 for a detail of tele-sales upgrades for 2007-2010. We believe that
VPG provides an enhanced understanding of the performance of our
vacation ownership business because it directly measures the efficiency
of this business' tour selling efforts during a given reporting period.
General
Constant
Currency: Represents a comparison eliminating the effects of
foreign exchange rate fluctuations between periods.
|
|
|
Table 4
Wyndham
Worldwide Corporation
REVENUE
DETAIL BY REPORTABLE SEGMENT
(In
millions)
|
|
|
|
|
2011
|
|
2010
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
and Franchise Fees
|
$ 58
|
$ 75
|
N/A
|
N/A
|
N/A
|
|
$ 52
|
$ 69
|
$ 82
|
$ 62
|
$ 265
|
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
54
|
75
|
N/A
|
N/A
|
N/A
|
|
50
|
65
|
76
|
60
|
251
|
|
|
Hotel
Management Reimbursable Revenues (b)
|
19
|
19
|
N/A
|
N/A
|
N/A
|
|
21
|
20
|
18
|
18
|
77
|
|
|
Ancillary
Revenues (c)
|
18
|
21
|
N/A
|
N/A
|
N/A
|
|
21
|
24
|
27
|
23
|
95
|
|
|
Total
Lodging
|
149
|
190
|
N/A
|
N/A
|
N/A
|
|
144
|
178
|
203
|
163
|
688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
194
|
168
|
N/A
|
N/A
|
N/A
|
|
189
|
161
|
163
|
153
|
666
|
|
|
Rental
Revenues
|
150
|
180
|
N/A
|
N/A
|
N/A
|
|
105
|
115
|
161
|
114
|
495
|
|
|
Ancillary
Revenues (d)
|
12
|
13
|
N/A
|
N/A
|
N/A
|
|
6
|
5
|
6
|
15
|
32
|
|
|
Total
Vacation Exchange and Rentals
|
356
|
361
|
N/A
|
N/A
|
N/A
|
|
300
|
281
|
330
|
282
|
1,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership Interest Sales
|
222
|
313
|
N/A
|
N/A
|
N/A
|
|
217
|
271
|
308
|
276
|
1,072
|
|
|
Consumer
Financing
|
102
|
103
|
N/A
|
N/A
|
N/A
|
|
105
|
106
|
107
|
107
|
425
|
|
|
Property
Management Fees
|
110
|
108
|
N/A
|
N/A
|
N/A
|
|
100
|
100
|
104
|
101
|
405
|
|
|
WAAM
Commissions
|
10
|
11
|
N/A
|
N/A
|
N/A
|
|
3
|
8
|
12
|
8
|
31
|
|
|
Ancillary
Revenues (e)
|
6
|
6
|
N/A
|
N/A
|
N/A
|
|
19
|
20
|
2
|
5
|
46
|
|
|
Total
Vacation Ownership
|
450
|
541
|
N/A
|
N/A
|
N/A
|
|
444
|
505
|
533
|
497
|
1,979
|
|
Total
Reportable Segments
|
$ 955
|
$ 1,092
|
N/A
|
N/A
|
N/A
|
|
$ 888
|
$ 964
|
$ 1,066
|
$ 942
|
$ 3,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties
and Franchise Fees
|
$ 57
|
$ 68
|
$ 72
|
$ 57
|
$ 254
|
|
$ 64
|
$ 78
|
$ 88
|
$ 66
|
$ 297
|
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
54
|
66
|
73
|
53
|
246
|
|
60
|
75
|
84
|
61
|
280
|
|
|
Hotel
Management Reimbursable Revenues (b)
|
22
|
23
|
21
|
19
|
85
|
|
27
|
26
|
25
|
21
|
100
|
|
|
Ancillary
Revenues (c)
|
21
|
17
|
17
|
20
|
75
|
|
19
|
21
|
16
|
22
|
76
|
|
|
Total
Lodging
|
154
|
174
|
183
|
149
|
660
|
|
170
|
200
|
213
|
170
|
753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Exchange and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
185
|
165
|
164
|
154
|
668
|
|
213
|
185
|
178
|
152
|
728
|
|
|
Rental
Revenues
|
96
|
109
|
157
|
98
|
460
|
|
119
|
119
|
169
|
88
|
495
|
|
|
Ancillary
Revenues (d)
|
6
|
6
|
6
|
6
|
24
|
|
9
|
10
|
7
|
10
|
36
|
|
|
Total
Vacation Exchange and Rentals
|
287
|
280
|
327
|
258
|
1,152
|
|
341
|
314
|
354
|
250
|
1,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership Interest Sales
|
239
|
242
|
285
|
287
|
1,053
|
|
294
|
414
|
446
|
309
|
1,463
|
|
|
Consumer
Financing
|
109
|
109
|
108
|
109
|
435
|
|
99
|
104
|
111
|
112
|
426
|
|
|
Property
Management Fees
|
91
|
94
|
96
|
95
|
376
|
|
85
|
84
|
89
|
89
|
346
|
|
|
Ancillary
Revenues (e)
|
23
|
22
|
19
|
17
|
81
|
|
26
|
19
|
15
|
(18)
|
43
|
|
|
Total
Vacation Ownership
|
462
|
467
|
508
|
508
|
1,945
|
|
504
|
621
|
661
|
492
|
2,278
|
|
Total
Reportable Segments
|
$ 903
|
$ 921
|
$ 1,018
|
$ 915
|
$ 3,757
|
|
$ 1,015
|
$ 1,135
|
$ 1,228
|
$ 912
|
$ 4,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
: Full year amounts may not foot across due to
rounding.
(a)
Marketing and reservation revenues represent fees we receive from
franchised and managed hotels that are to be expended for marketing
purposes or the operation of a centralized, brand-specific reservation
system. These fees are typically based on a percentage of the gross
room revenues of each hotel. Wyndham Rewards revenues represent fees we
receive relating to our loyalty program.
(b)
Primarily represents payroll costs in our hotel management business
that we pay on behalf of property owners and for which we are
reimbursed by the property owners.
(c)
Primarily includes additional services provided to franchisees.
(d)
Primarily includes fees generated from programs with affiliated resorts
and homeowners.
(e)
Primarily includes revenues associated with bonus points/credits that
are provided as purchase incentives on VOI sales and fees generated
from other non-core businesses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5
Wyndham
Worldwide Corporation
SCHED
ULE OF DEBT
(In
millions)
|
|
|
|
|
June
30,
2011
|
|
March
31,
2011
|
|
December
31,
2010
|
|
September
30,
2010
|
|
June
30,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized
vacation ownership debt (a)
|
|
|
|
|
|
|
|
|
|
|
Term
notes
|
$ 1,446
|
|
$ 1,666
|
|
$ 1,498
|
|
$ 1,400
|
|
$ 1,255
|
|
Bank
conduit facility (b)
|
242
|
|
148
|
|
152
|
|
215
|
|
291
|
|
Securitized
vacation ownership debt (c)
|
1,688
|
|
1,814
|
|
1,650
|
|
1,615
|
|
1,546
|
|
Less:
Current portion of securitized vacation ownership debt
|
190
|
|
216
|
|
223
|
|
187
|
|
248
|
|
Long-term
securitized vacation ownership debt
|
$ 1,498
|
|
$ 1,598
|
|
$ 1,427
|
|
$ 1,428
|
|
$ 1,298
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
Revolving
credit facility (due October 2013) (d)
|
$ 107
|
|
$ 5
|
|
$ 154
|
|
$ 26
|
|
$ -
|
|
6.00%
senior unsecured notes (due December 2016) (e)
|
803
|
|
797
|
|
798
|
|
798
|
|
798
|
|
9.875%
senior unsecured notes (due May 2014) (f)
|
242
|
|
241
|
|
241
|
|
240
|
|
239
|
|
3.50%
convertible notes (due May 2012) (g)
|
32
|
|
41
|
|
266
|
|
289
|
|
362
|
|
7.375%
senior unsecured notes (due March 2020) (h)
|
247
|
|
247
|
|
247
|
|
247
|
|
247
|
|
5.75%
senior unsecured notes (due February 2018) (i)
|
247
|
|
247
|
|
247
|
|
247
|
|
-
|
|
5.625%
senior unsecured notes (due March 2021) (j)
|
245
|
|
245
|
|
-
|
|
-
|
|
-
|
|
Vacation
rentals capital leases
|
120
|
|
120
|
|
115
|
|
120
|
|
110
|
|
Other
|
1
|
|
28
|
|
26
|
|
34
|
|
36
|
|
Total
debt
|
2,044
|
|
1,971
|
|
2,094
|
|
2,001
|
|
1,792
|
|
Less:
Current portion of debt
|
43
|
|
12
|
|
11
|
|
32
|
|
29
|
|
Long-term
debt
|
$ 2,001
|
|
$ 1,959
|
|
$ 2,083
|
|
$ 1,969
|
|
$ 1,763
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
(a)
The Company's vacation ownership contract receivables are securitized
through bankruptcy-remote special purpose entities ("SPE") that are
consolidated with our financial statements. These bankruptcy-remote
SPEs are legally separate from the Company. The receivables held by the
bankruptcy-remote SPEs are not available to the Company's creditors and
legally are not the Company's assets. Additionally, the creditors of
these SPEs have no recourse to the Company for principal and interest.
(b)
Represents a non-recourse vacation ownership bank conduit facility with
a term through June 2013 and borrowing capacity of $600 million. As of
June 30, 2011, this facility has remaining borrowing capacity of $358
million.
(c)
This debt is collateralized by $2,672 million, $2,778 million, $2,865
million, $2,874 million and $2,862 million of underlying vacation
ownership contract receivables and related assets as of June 30, 2011,
March 31, 2011, December 31, 2010, September 30, 2010 and June 30,
2010, respectively.
(d)
Represents a $980 million revolving credit facility that expires on
October 1, 2013. As of June 30, 2011, the Company has $13 million of
outstanding letters of credit and a remaining borrowing capacity of
$860 million. During July 2011, the Company replaced its $980 million
revolving credit facility with a five-year $1.0 billion revolving
credit facility that expires on July 15, 2016.
(e)
Represents senior unsecured notes issued by the Company during December
2006. The balance as of June 30, 2011 represents $800 million aggregate
principal less $2 million of unamortized discount, plus a $5 million
fair value hedge derivative.
(f)
Represents senior unsecured notes issued by the Company during May
2009. The balance as of June 30, 2011 represents $250 million aggregate
principal less $8 million of unamortized discount.
(g)
Represents convertible notes issued by the Company during May 2009,
which includes debt principal, less unamortized discount, and a
liability related to a bifurcated conversion feature. During the third
and fourth quarters of 2010, the Company repurchased a portion of its
3.50% convertible notes. During the first half of 2011, the Company
repurchased a portion of its outstanding 3.50% convertible notes,
primarily through the completion of a cash tender offer. The following
table details the components of the convertible notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
2011
|
|
March
31,
2011
|
|
December
31,
2010
|
|
September
30,
2010
|
|
June
30,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
principal
|
$ 12
|
|
$ 17
|
|
$ 116
|
|
$ 138
|
|
$ 230
|
|
|
|
|
|
|
Unamortized
discount
|
(1)
|
|
(1)
|
|
(12)
|
|
(17)
|
|
(31)
|
|
|
|
|
|
|
Debt
less discount
|
11
|
|
16
|
|
104
|
|
121
|
|
199
|
|
|
|
|
|
|
Fair
value of conversion feature (*)
|
21
|
|
25
|
|
162
|
|
168
|
|
163
|
|
|
|
|
|
|
Convertible
notes
|
$ 32
|
|
$ 41
|
|
$ 266
|
|
$ 289
|
|
$ 362
|
|
__________
|
|
(*)
The Company also has an asset with a fair value equal to the conversion
feature, which represents cash-settled call options that the Company
purchased concurrent with the issuance of the convertible notes.
|
|
|
|
(h)
Represents senior unsecured notes issued by the Company during February
2010. The balance as of June 30, 2011 represents $250 million aggregate
principal less $3 million of unamortized discount.
(i)
Represents senior unsecured notes issued by the Company during
September 2010. The balance as of June 30, 2011 represents $250 million
aggregate principal less $3
million of unamortized discount.
(j)
Represents senior unsecured notes issued by the Company during March
2011. The balance as of June 30, 2011 represents $250 million aggregate
principal less $5 million of unamortized discount.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6
(1 of
2)
Wyndham
Worldwide Corporation
BRAND
SYSTEM DETAILS
|
|
|
|
|
As of
and For the Three Months Ended June 30, 2011
|
|
Brand
|
Number
of
Properties
|
Number
of
Rooms
|
Average
Occupancy
Rate
|
Average
Daily
Rate
(ADR)
|
Average
Revenue
Per
Available
Room
(RevPAR)
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
98
|
26,488
|
62.7%
|
$109.96
|
$68.98
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
94
|
13,659
|
66.6%
|
$103.39
|
$68.88
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
166
|
15,234
|
62.8%
|
$82.01
|
$51.51
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
74
|
7,054
|
63.8%
|
$75.96
|
$48.49
|
|
|
|
|
|
|
|
|
Ramada
|
884
|
117,365
|
53.9%
|
$75.47
|
$40.70
|
|
|
|
|
|
|
|
|
Baymont
|
255
|
21,381
|
51.2%
|
$62.66
|
$32.08
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,865
|
149,032
|
50.2%
|
$61.60
|
$30.92
|
|
|
|
|
|
|
|
|
Super
8
|
2,214
|
139,196
|
54.6%
|
$54.95
|
$30.01
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
462
|
46,291
|
49.1%
|
$61.11
|
$30.00
|
|
|
|
|
|
|
|
|
Travelodge
|
434
|
32,364
|
49.0%
|
$65.77
|
$32.23
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
317
|
22,579
|
55.9%
|
$58.85
|
$32.88
|
|
|
|
|
|
|
|
|
Knights
Inn
|
347
|
21,221
|
40.1%
|
$42.71
|
$17.14
|
|
|
|
|
|
|
|
|
Dream
|
5
|
990
|
71.6%
|
$173.17
|
$124.00
|
|
|
|
|
|
|
|
|
Night
|
1
|
72
|
92.8%
|
$228.31
|
$211.96
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,216
|
612,926
|
53.0%
|
$66.73
|
$35.38
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
162
|
20,760
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,378
|
633,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
and For the Three Months Ended June 30, 2010
|
|
|
Brand
|
Number
of
Properties
|
Number
of
Rooms
|
Average
Occupancy
Rate
|
Average
Daily
Rate
(ADR)
|
Average
Revenue
Per
Available
Room
(RevPAR)
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
99
|
27,771
|
59.5%
|
$108.71
|
$64.66
|
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
92
|
13,236
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
164
|
15,020
|
61.5%
|
$79.97
|
$49.15
|
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
80
|
7,563
|
57.7%
|
$78.07
|
$45.08
|
|
|
|
|
|
|
|
|
|
Ramada
|
901
|
118,521
|
51.3%
|
$71.95
|
$36.88
|
|
|
|
|
|
|
|
|
|
Baymont
|
242
|
20,496
|
49.6%
|
$61.26
|
$30.38
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,857
|
148,457
|
48.6%
|
$60.66
|
$29.47
|
|
|
|
|
|
|
|
|
|
Super
8
|
2,149
|
134,189
|
51.6%
|
$55.89
|
$28.86
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
477
|
45,513
|
46.8%
|
$60.84
|
$28.48
|
|
|
|
|
|
|
|
|
|
Travelodge
|
442
|
32,762
|
45.9%
|
$62.35
|
$28.63
|
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
318
|
22,666
|
52.3%
|
$56.90
|
$29.76
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
338
|
20,157
|
37.9%
|
$41.80
|
$15.84
|
|
|
|
|
|
|
|
|
|
Other
|
2
|
404
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,161
|
606,755
|
50.2%
|
$64.27
|
$32.25
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
160
|
20,569
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,321
|
627,324
|
|
|
|
|
__________
|
|
NOTE:
A glossary of terms is included in Table 3 (3 of
3); RevPAR may not recalculate by multiplying average occupancy rate by
ADR due to rounding.
|
|
|
|
|
|
|
|
|
Table 6
(2 of
2)
Wyndham
Worldwide Corporation
BRAND
SYSTEM DETAILS
|
|
|
|
|
|
As of
and For the Six Months Ended June 30, 2011
|
|
Brand
|
Number
of
Properties
|
Number
of
Rooms
|
Average
Occupancy
Rate
|
Average
Daily
Rate
(ADR)
|
Average
Revenue
Per
Available
Room
(RevPAR)
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
98
|
26,488
|
58.1%
|
$108.43
|
$63.01
|
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
94
|
13,659
|
57.5%
|
$106.68
|
$61.36
|
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
166
|
15,234
|
59.3%
|
$80.29
|
$47.63
|
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
74
|
7,054
|
60.7%
|
$75.14
|
$45.63
|
|
|
|
|
|
|
|
|
|
Ramada
|
884
|
117,365
|
49.7%
|
$74.51
|
$37.01
|
|
|
|
|
|
|
|
|
|
Baymont
|
255
|
21,381
|
46.2%
|
$61.04
|
$28.20
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,865
|
149,032
|
45.4%
|
$60.08
|
$27.27
|
|
|
|
|
|
|
|
|
|
Super
8
|
2,214
|
139,196
|
49.3%
|
$53.39
|
$26.31
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
462
|
46,291
|
45.1%
|
$59.36
|
$26.77
|
|
|
|
|
|
|
|
|
|
Travelodge
|
434
|
32,364
|
44.9%
|
$63.04
|
$28.32
|
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
317
|
22,579
|
51.1%
|
$57.13
|
$29.19
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
347
|
21,221
|
37.0%
|
$41.84
|
$15.47
|
|
|
|
|
|
|
|
|
|
Dream
|
5
|
990
|
71.9%
|
$174.20
|
$125.27
|
|
|
|
|
|
|
|
|
|
Night
|
1
|
72
|
93.1%
|
$246.94
|
$229.87
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,216
|
612,926
|
48.3%
|
$65.35
|
$31.57
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
162
|
20,760
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,378
|
633,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
and For the Six Months Ended June 30, 2010
|
|
Brand
|
Number
of
Properties
|
Number
of
Rooms
|
Average
Occupancy
Rate
|
Average
Daily
Rate
(ADR)
|
Average
Revenue
Per
Available
Room
(RevPAR)
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
Wyndham
Hotels and Resorts
|
99
|
27,771
|
55.4%
|
$110.61
|
$61.25
|
|
|
|
|
|
|
|
|
|
TRYP
by Wyndham
|
92
|
13,236
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
Wingate
by Wyndham
|
164
|
15,020
|
56.6%
|
$78.81
|
$44.63
|
|
|
|
|
|
|
|
|
|
Hawthorn
Suites by Wyndham
|
80
|
7,563
|
53.4%
|
$77.56
|
$41.41
|
|
|
|
|
|
|
|
|
|
Ramada
|
901
|
118,521
|
47.2%
|
$72.32
|
$34.15
|
|
|
|
|
|
|
|
|
|
Baymont
|
242
|
20,496
|
45.5%
|
$59.65
|
$27.13
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,857
|
148,457
|
43.6%
|
$59.39
|
$25.92
|
|
|
|
|
|
|
|
|
|
Super
8
|
2,149
|
134,189
|
46.4%
|
$54.59
|
$25.34
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
477
|
45,513
|
42.8%
|
$59.42
|
$25.44
|
|
|
|
|
|
|
|
|
|
Travelodge
|
442
|
32,762
|
42.0%
|
$61.92
|
$25.99
|
|
|
|
|
|
|
|
|
|
Microtel
Inns & Suites
|
318
|
22,666
|
48.0%
|
$56.04
|
$26.88
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
338
|
20,157
|
35.5%
|
$40.46
|
$14.36
|
|
|
|
|
|
|
|
|
|
Other
|
2
|
404
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,161
|
606,755
|
45.7%
|
$63.60
|
$29.04
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham
Vacation Ownership resorts
|
160
|
20,569
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Total
Wyndham Worldwide
|
7,321
|
627,324
|
|
|
|
|
__________
|
|
|
|
|
|
|
NOTE:
A glossary of terms is included in Table 3 (3 of
3); RevPAR may not recalculate by multiplying average occupancy rate by
ADR due to rounding.
|
|
|
|
|
|
|
|
|
Table 7
(1 of
2)
Wyndham
Worldwide
NON-GAAP
RECONCILIATION
(In
millions)
|
|
|
|
Three
months ended March 31, 2011
|
Net
Revenues
|
|
Reported
EBITDA
|
Legacy
Adjustments
(b)
|
Asset
Impairment
(c)
|
Restructuring
Costs
|
VAT
Adjustments
(e)
|
Adjusted
EBITDA
|
|
Lodging
|
$ 149
|
|
$ 27
|
$ -
|
$ 13
|
$ -
|
|
$ -
|
$ 40
|
|
Vacation
Exchange and Rentals
|
356
|
|
93
|
-
|
-
|
-
|
|
-
|
93
|
|
Vacation
Ownership
|
450
|
|
97
|
-
|
-
|
(1)
|
(d)
|
-
|
96
|
|
Total
Reportable Segments
|
955
|
|
217
|
-
|
13
|
(1)
|
|
-
|
229
|
|
Corporate
and Other (a)
|
(3)
|
|
(14)
|
(11)
|
-
|
-
|
|
-
|
(25)
|
|
Total
Company
|
$ 952
|
|
$ 203
|
$ (11)
|
$ 13
|
$ (1)
|
|
$ -
|
$ 204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
$ 190
|
|
$ 66
|
$ -
|
$ -
|
$ -
|
|
$ -
|
$ 66
|
|
Vacation
Exchange and Rentals
|
361
|
|
106
|
-
|
-
|
7
|
(f)
|
(31)
|
82
|
|
Vacation
Ownership
|
541
|
|
130
|
-
|
-
|
-
|
|
-
|
130
|
|
Total
Reportable Segments
|
1,092
|
|
302
|
-
|
-
|
7
|
|
(31)
|
278
|
|
Corporate
and Other (a)
|
(2)
|
|
(26)
|
3
|
-
|
-
|
|
-
|
(23)
|
|
Total
Company
|
$ 1,090
|
|
$ 276
|
$ 3
|
$ -
|
$ 7
|
|
$ (31)
|
$ 255
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes the elimination of transactions between segments.
(b)
Relates to the net expense/(benefit) from the
resolution of and adjustment to certain contingent liabilities and
assets resulting from our separation.
(c)
Relates to a non-cash impairment charge to reduce the value of an
international joint venture in the Company's hotel business.
(d)
Relates to the reversal of costs incurred as a result of various
strategic initiatives commenced by the Company during 2008.
(e)
Relates to a net benefit resulting from a refund of value added taxes.
(f)
Relates to costs incurred as a result of a strategic initiative
commenced by the Company during 2010.
|
|
|
|
|
|
|
|
|
|
|
|
Table 7
(2 of
2)
Wyndham
Worldwide
NON-GAAP
RECONCILIATIONS
(In
millions)
|
|
|
|
Three
months ended March 31, 2010
|
Net
Revenues
|
|
Reported
EBITDA
|
Acquisition
Costs
(b)
|
Legacy
Adjustments
(c)
|
Restructuring
Costs
(d)
|
Adjusted
EBITDA
|
|
Lodging
|
$ 144
|
|
$ 33
|
$ -
|
$ -
|
$ -
|
$ 33
|
|
Vacation
Exchange and Rentals
|
300
|
|
80
|
4
|
-
|
-
|
84
|
|
Vacation
Ownership
|
444
|
|
82
|
-
|
-
|
-
|
82
|
|
Total
Reportable Segments
|
888
|
|
195
|
4
|
-
|
-
|
199
|
|
Corporate
and Other (a)
|
(2)
|
|
(20)
|
-
|
2
|
-
|
(18)
|
|
Total
Company
|
$ 886
|
|
$ 175
|
$ 4
|
$ 2
|
$ -
|
$ 181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 178
|
|
$ 49
|
$ 1
|
$ -
|
$ -
|
$ 50
|
|
Vacation
Exchange and Rentals
|
281
|
|
78
|
-
|
-
|
-
|
78
|
|
Vacation
Ownership
|
505
|
|
104
|
-
|
-
|
-
|
104
|
|
Total
Reportable Segments
|
964
|
|
231
|
1
|
-
|
-
|
232
|
|
Corporate
and Other (a)
|
(1)
|
|
(14)
|
-
|
-
|
-
|
(14)
|
|
Total
Company
|
$ 963
|
|
$ 217
|
$ 1
|
$ -
|
$ -
|
$ 218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 203
|
|
$ 67
|
$ -
|
$ -
|
$ -
|
$ 67
|
|
Vacation
Exchange and Rentals
|
330
|
|
103
|
1
|
-
|
-
|
104
|
|
Vacation
Ownership
|
533
|
|
123
|
-
|
-
|
-
|
123
|
|
Total
Reportable Segments
|
1,066
|
|
293
|
1
|
-
|
-
|
294
|
|
Corporate
and Other (a)
|
(1)
|
|
30
|
-
|
(52)
|
-
|
(22)
|
|
Total
Company
|
$ 1,065
|
|
$ 323
|
$ 1
|
$ (52)
|
$ -
|
$ 272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 163
|
|
$ 40
|
$ -
|
$ -
|
$ -
|
$ 40
|
|
Vacation
Exchange and Rentals
|
282
|
|
32
|
1
|
-
|
9
|
42
|
|
Vacation
Ownership
|
497
|
|
131
|
-
|
-
|
-
|
131
|
|
Total
Reportable Segments
|
942
|
|
203
|
1
|
-
|
9
|
213
|
|
Corporate
and Other (a)
|
(5)
|
|
(20)
|
-
|
(3)
|
-
|
(23)
|
|
Total
Company
|
$ 937
|
|
$ 183
|
$ 1
|
$ (3)
|
$ 9
|
$ 190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ended December 31, 2010
|
|
|
|
|
|
|
|
|
Lodging
|
$ 688
|
|
$ 189
|
$ 1
|
$ -
|
$ -
|
$ 190
|
|
Vacation
Exchange and Rentals
|
1,193
|
|
293
|
6
|
-
|
9
|
308
|
|
Vacation
Ownership
|
1,979
|
|
440
|
-
|
-
|
-
|
440
|
|
Total
Reportable Segments
|
3,860
|
|
922
|
7
|
-
|
9
|
938
|
|
Corporate
and Other (a)
|
(9)
|
|
(24)
|
-
|
(54)
|
-
|
(78)
|
|
Total
Company
|
$ 3,851
|
|
$ 898
|
$ 7
|
$ (54)
|
$ 9
|
$ 860
|
|
__________
|
|
|
|
|
|
|
|
|
Note:
Amounts may not foot across due to rounding.
(a)
Includes the elimination of transactions between segments.
(b)
Relates to costs incurred in connection with the Company's acquisitions
of Hoseasons during March 2010, the TRYP hotel brand during June 2010,
ResortQuest during September 2010 and James Villa Holidays during
November 2010.
(c)
Relates to the net expense/(benefit) from the resolution of and
adjustment to certain contingent liabilities and assets resulting from
our separation.
(d)
Relates to costs incurred as a result of a strategic initiative
commenced by the Company during 2010.
|
|
|
|
|
|
|
|
|
|
Table 8
(1 of
4)
Wyndham
Worldwide Corporation
NON-GAAP
FINANCIAL INFORMATION
(In
millions, except per share data)
|
|
|
|
|
|
Three
Months Ended June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Early
Extinguishment
of
Debt
|
|
Legacy
Adjustments
|
|
Restructuring
Costs
|
|
VAT
Adjustments
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
$ 499
|
|
|
|
|
|
|
|
|
|
$ 499
|
|
|
Vacation
ownership interest sales
|
313
|
|
|
|
|
|
|
|
|
|
313
|
|
|
Franchise
fees
|
134
|
|
|
|
|
|
|
|
|
|
134
|
|
|
Consumer
financing
|
103
|
|
|
|
|
|
|
|
|
|
103
|
|
|
Other
|
41
|
|
|
|
|
|
|
|
|
|
41
|
|
Net
revenues
|
1,090
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
458
|
|
|
|
|
|
|
|
|
|
458
|
|
|
Cost
of vacation ownership interests
|
48
|
|
|
|
|
|
|
|
|
|
48
|
|
|
Consumer
financing interest
|
23
|
|
|
|
|
|
|
|
|
|
23
|
|
|
Marketing
and reservation
|
153
|
|
|
|
|
|
|
|
|
|
153
|
|
|
General
and administrative
|
126
|
|
|
|
(3)
|
(b)
|
|
|
31
|
(d)
|
154
|
|
|
Restructuring
|
7
|
|
|
|
|
|
(7)
|
(c)
|
|
|
-
|
|
|
Depreciation
and amortization
|
45
|
|
|
|
|
|
|
|
|
|
45
|
|
Total
expenses
|
860
|
|
-
|
|
(3)
|
|
(7)
|
|
31
|
|
881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
230
|
|
-
|
|
3
|
|
7
|
|
(31)
|
|
209
|
|
Other
income, net
|
(1)
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Interest
expense
|
37
|
|
(1)
|
(a)
|
|
|
|
|
(3)
|
(e)
|
33
|
|
Interest
income
|
(2)
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
196
|
|
1
|
|
3
|
|
7
|
|
(28)
|
|
179
|
|
Provision
for income taxes
|
82
|
|
1
|
(f)
|
1
|
(f)
|
2
|
(f)
|
(15)
|
(f)
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 114
|
|
$ -
|
|
$ 2
|
|
$ 5
|
|
$ (13)
|
|
$ 108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.68
|
|
$ -
|
|
$ 0.01
|
|
$ 0.03
|
|
$
(0.08)
|
|
$ 0.65
|
|
|
Diluted
|
0.67
|
|
-
|
|
0.01
|
|
0.03
|
|
(0.08)
|
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
167
|
|
167
|
|
167
|
|
167
|
|
167
|
|
167
|
|
|
Diluted
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
EPS amounts may not foot due to rounding.
(a)
Relates to costs incurred for the early repurchase of a portion of the
Company's 3.50% convertible notes during the second quarter of 2011.
(b)
Relates to the net expense from the resolution of and adjustment to
certain contingent liabilities and assets resulting from our
separation.
(c)
Relates to costs incurred as a result of a strategic initiative
commenced by the Company during 2010.
(d)
Relates to a net benefit resulting from a refund of value added taxes.
(e)
Relates to interest on value added tax accruals.
(f)
Relates to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8
(2 of
4)
Wyndham
Worldwide Corporation
NON-GAAP
FINANCIAL INFORMATION
(In
millions, except per share data)
|
|
|
|
|
|
Six
Months Ended June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Early
Extinguishment
of
Debt
|
|
Legacy
Adjustments
|
|
Asset
Impairment
|
|
Restructuring
Costs
|
|
VAT
Adjustments
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
$ 995
|
|
|
|
|
|
|
|
|
|
|
|
$ 995
|
|
|
Vacation
ownership interest sales
|
535
|
|
|
|
|
|
|
|
|
|
|
|
535
|
|
|
Franchise
fees
|
235
|
|
|
|
|
|
|
|
|
|
|
|
235
|
|
|
Consumer
financing
|
206
|
|
|
|
|
|
|
|
|
|
|
|
206
|
|
|
Other
|
70
|
|
|
|
|
|
|
|
|
|
|
|
70
|
|
Net
revenues
|
2,041
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
868
|
|
|
|
|
|
|
|
|
|
|
|
868
|
|
|
Cost
of vacation ownership interests
|
79
|
|
|
|
|
|
|
|
|
|
|
|
79
|
|
|
Consumer
financing interest
|
46
|
|
|
|
|
|
|
|
|
|
|
|
46
|
|
|
Marketing
and reservation
|
290
|
|
|
|
|
|
|
|
|
|
|
|
290
|
|
|
General
and administrative
|
266
|
|
|
|
4
|
(b)
|
|
|
|
|
31
|
(f)
|
301
|
|
|
Asset
impairment
|
13
|
|
|
|
|
|
(13)
|
(d)
|
|
|
|
|
-
|
|
|
Restructuring
|
6
|
|
|
|
|
|
|
|
(6)
|
(e)
|
|
|
-
|
|
|
Depreciation
and amortization
|
90
|
|
|
|
|
|
|
|
|
|
|
|
90
|
|
Total
expenses
|
1,658
|
|
-
|
|
4
|
|
(13)
|
|
(6)
|
|
31
|
|
1,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
383
|
|
-
|
|
(4)
|
|
13
|
|
6
|
|
(31)
|
|
367
|
|
Other
income, net
|
(7)
|
|
|
|
4
|
(c)
|
|
|
|
|
|
|
(3)
|
|
Interest
expense
|
81
|
|
(12)
|
(a)
|
|
|
|
|
|
|
(3)
|
(g)
|
66
|
|
Interest
income
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
312
|
|
12
|
|
(8)
|
|
13
|
|
6
|
|
(28)
|
|
307
|
|
Provision
for income taxes
|
126
|
|
5
|
(h)
|
(3)
|
(h)
|
5
|
(h)
|
2
|
(h)
|
(15)
|
(h)
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 186
|
|
$ 7
|
|
$ (5)
|
|
$ 8
|
|
$ 4
|
|
$ (13)
|
|
$ 187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 1.10
|
|
$ 0.04
|
|
$
(0.03)
|
|
$ 0.05
|
|
$ 0.03
|
|
$
(0.08)
|
|
$ 1.10
|
|
|
Diluted
|
1.07
|
|
0.04
|
|
(0.03)
|
|
0.04
|
|
0.02
|
|
(0.07)
|
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
170
|
|
|
Diluted
|
174
|
|
174
|
|
174
|
|
174
|
|
174
|
|
174
|
|
174
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
EPS amounts may not foot due to rounding.
(a)
Relates to costs incurred for the early repurchase of a portion of the
Company's 3.50% convertible notes during the first half of 2011.
(b)
Relates to the net benefit from the resolution of and adjustment to
certain contingent liabilities and assets resulting from our
separation.
(c)
Relates to a gain on the redemption of a preferred stock investment
allocated to the Company in connection with our separation.
(d)
Relates to a non-cash impairment charge to reduce the value of an
international joint venture in the Company's hotel business.
(e)
Primarily relates to costs incurred as a result of a strategic
initiative commenced by the Company during 2010.
(f)
Relates to a net benefit resulting from a refund of value added taxes.
(g)
Relates to interest on value added tax accruals.
(h)
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 June 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Acquisition
Costs
|
|
Legacy
Adjustments (b)
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
$ 409
|
|
|
|
|
|
$ 409
|
|
|
Vacation
ownership interest sales
|
271
|
|
|
|
|
|
271
|
|
|
Franchise
fees
|
120
|
|
|
|
|
|
120
|
|
|
Consumer
financing
|
106
|
|
|
|
|
|
106
|
|
|
Other
|
57
|
|
|
|
|
|
57
|
|
Net
revenues
|
963
|
|
-
|
|
-
|
|
963
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Operating
|
387
|
|
(1)
|
(a)
|
|
|
386
|
|
|
Cost
of vacation ownership interests
|
49
|
|
|
|
|
|
49
|
|
|
Consumer
financing interest
|
29
|
|
|
|
|
|
29
|
|
|
Marketing
and reservation
|
138
|
|
|
|
|
|
138
|
|
|
General
and administrative
|
146
|
|
|
|
-
|
|
146
|
|
|
Depreciation
and amortization
|
42
|
|
|
|
|
|
42
|
|
Total
expenses
|
791
|
|
(1)
|
|
-
|
|
790
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
172
|
|
1
|
|
-
|
|
173
|
|
Other
income, net
|
(3)
|
|
|
|
|
|
(3)
|
|
Interest
expense
|
36
|
|
|
|
|
|
36
|
|
Interest
income
|
(2)
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
141
|
|
1
|
|
-
|
|
142
|
|
Provision
for income taxes
|
46
|
|
-
|
(c)
|
1
|
(c)
|
47
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 95
|
|
$ 1
|
|
$ (1)
|
|
$ 95
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.53
|
|
$ -
|
|
$ -
|
|
$ 0.53
|
|
|
Diluted
|
0.51
|
|
-
|
|
-
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
180
|
|
180
|
|
180
|
|
180
|
|
|
Diluted
|
187
|
|
187
|
|
187
|
|
187
|
|
__________
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not foot due to rounding.
(a)
Relates to costs incurred in connection with the Company's acquisition
of the TRYP hotel brand during June 2010.
(b)
Relates to the net expense from the resolution of and adjustment to
certain contingent liabilities and assets.
(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)
|
|
|
|
|
|
|
Six
Months Ended June 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Early
Extinguishment
of
Debt
|
|
Acquisition
Costs
|
|
Legacy
Adjustments
|
|
As
Adjusted
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
fees and membership
|
|
$ 833
|
|
|
|
|
|
|
|
$ 833
|
|
|
Vacation
ownership interest sales
|
|
488
|
|
|
|
|
|
|
|
488
|
|
|
Franchise
fees
|
|
211
|
|
|
|
|
|
|
|
211
|
|
|
Consumer
financing
|
|
211
|
|
|
|
|
|
|
|
211
|
|
|
Other
|
|
106
|
|
|
|
|
|
|
|
106
|
|
Net
revenues
|
|
1,849
|
|
-
|
|
-
|
|
-
|
|
1,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
769
|
|
|
|
(5)
|
(b)
|
|
|
764
|
|
|
Cost
of vacation ownership interests
|
|
86
|
|
|
|
|
|
|
|
86
|
|
|
Consumer
financing interest
|
|
53
|
|
|
|
|
|
|
|
53
|
|
|
Marketing
and reservation
|
|
261
|
|
|
|
|
|
|
|
261
|
|
|
General
and administrative
|
|
293
|
|
|
|
|
|
(1)
|
(c)
|
292
|
|
|
Depreciation
and amortization
|
|
85
|
|
|
|
|
|
|
|
85
|
|
Total
expenses
|
|
1,547
|
|
-
|
|
(5)
|
|
(1)
|
|
1,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
302
|
|
-
|
|
5
|
|
1
|
|
308
|
|
Other
income, net
|
|
(5)
|
|
|
|
-
|
|
|
|
(5)
|
|
Interest
expense
|
|
86
|
|
(16)
|
(a)
|
|
|
|
|
70
|
|
Interest
income
|
|
(2)
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
223
|
|
16
|
|
5
|
|
1
|
|
245
|
|
Provision
for income taxes
|
|
78
|
|
6
|
(d)
|
1
|
(d)
|
1
|
(d)
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 145
|
|
$ 10
|
|
$ 4
|
|
$ -
|
|
$ 159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.81
|
|
$ 0.05
|
|
$ 0.02
|
|
$ -
|
|
$ 0.89
|
|
|
Diluted
|
|
0.78
|
|
0.05
|
|
0.02
|
|
-
|
|
0.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
180
|
|
180
|
|
180
|
|
180
|
|
180
|
|
|
Diluted
|
|
186
|
|
186
|
|
186
|
|
186
|
|
186
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
Note:
EPS amounts may not foot due to rounding.
(a)
Relates to costs incurred for the early extinguishment of the Company's
term loan facility and revolving foreign credit facility during March
2010.
(b)
Relates to costs incurred in connection with the Company's acquisitions
of Hoseasons Holdings Ltd. during March 2010 and the TRYP hotel brand
during June 2010.
(c)
Relates to the net expense from the resolution of and adjustment to
certain contingent liabilities and assets.
(d)
Relates to the tax effect of the adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9
Wyndham
Worldwide Corporation
NON-GAAP
RECONCILIATIONS AND FINANCIAL INFORMATION
(In
millions)
|
|
|
|
FREE
CASH FLOW
|
|
|
|
|
|
|
The
Company defines free cash flow as net cash provided by operating
activities minus capital expenditures, equity investments and
development advances, excluding cash payments related to the Company's
contingent tax liabilities that it assumed and is responsible for
pursuant to its separation from Cendant. The Company considers free
cash flow to be a liquidity measure that provides useful information to
management and investors about the amount of cash generated by the
business that, after the acquisition of property and equipment, equity
investments and hotel development advances, can be used for strategic
opportunities, including making acquisitions, paying dividends,
repurchasing the Company's common stock and strengthening the balance
sheet. Analysis of free cash flow also facilitates management's
comparisons of the Company's operating results to its competitors'
operating results. A limitation of using free cash flow versus the GAAP
measure of net cash provided by operating activities as a means for
evaluating Wyndham Worldwide is that free cash flow does not represent
the total increase or decrease in the cash balance from operations for
the period.
|
|
|
|
|
|
|
|
|
The
following table provides more details on the GAAP financial measure
that is most directly comparable to the non-GAAP financial measure and
the related reconciliation between these financial measures:
|
|
|
|
|
|
|
|
|
|
Six
Months Ended June 30,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
$ 696
|
|
$ 557
|
|
|
|
Less:
Property and equipment additions
|
(96)
|
|
(63)
|
|
|
|
Less:
Equity investments and development advances
|
(5)
|
|
(8)
|
|
|
|
Free
cash flow
|
$ 595
|
|
$ 486
|
|
|
|
|
|
|
|
|
|
GROSS
VOI SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following table provides a reconciliation of Gross VOI sales (see Table
3) to Vacation ownership interest sales (see Table 4):
|
|
|
|
|
|
|
|
|
|
Year
|
|
|
|
|
|
|
|
2011
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 319
|
$ 412
|
N/A
|
N/A
|
N/A
|
|
Less:
Sales under the WAAM
|
|
(18)
|
(19)
|
N/A
|
N/A
|
N/A
|
|
Gross
VOI sales, net of WAAM sales
|
|
302
|
393
|
N/A
|
N/A
|
N/A
|
|
Less:
Loan loss provision
|
|
(79)
|
(80)
|
N/A
|
N/A
|
N/A
|
|
Vacation
ownership interest sales
|
|
$ 222
|
$ 313
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 308
|
$ 371
|
$ 412
|
$ 373
|
$ 1,464
|
|
Less:
Sales under the WAAM
|
|
(5)
|
(13)
|
(20)
|
(14)
|
(51)
|
|
Gross
VOI sales, net of WAAM sales
|
|
303
|
358
|
392
|
359
|
1,413
|
|
Less:
Loan loss provision
|
|
(86)
|
(87)
|
(85)
|
(82)
|
(340)
|
|
Vacation
ownership interest sales
|
|
$ 217
|
$ 271
|
$ 308
|
$ 276
|
$ 1,072
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 280
|
$ 327
|
$ 366
|
$ 343
|
$ 1,315
|
|
Plus:
Net effect of percentage-of-completion accounting
|
|
67
|
37
|
36
|
47
|
187
|
|
Less:
Loan loss provision
|
|
(107)
|
(122)
|
(117)
|
(103)
|
(449)
|
|
Vacation
ownership interest sales
|
|
$ 239
|
$ 242
|
$ 285
|
$ 287
|
$ 1,053
|
|
|
|
|
|
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
VOI sales
|
|
$ 458
|
$ 532
|
$ 566
|
$ 432
|
$ 1,987
|
|
Plus/(less):
Net effect of percentage-of-completion accounting
|
|
(82)
|
(5)
|
(2)
|
14
|
(75)
|
|
Less:
Loan loss provision
|
|
(82)
|
(113)
|
(119)
|
(136)
|
(450)
|
|
Vacation
ownership interest sales
|
|
$ 294
|
$ 414
|
$ 446
|
$ 309
|
$ 1,463
|
|
_____________
|
|
|
|
|
|
|
|
Note:
Amounts may not foot due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following represents tele-sales upgrades, which are excluded from Gross
VOI sales in the Company's VPG calculation (see Table 3):
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
2011
|
|
$ 18
|
$ 18
|
N/A
|
N/A
|
N/A
|
|
2010
|
|
$ 20
|
$ 20
|
$ 23
|
$ 17
|
$ 80
|
|
2009
|
|
$ 24
|
$ 23
|
$ 29
|
$ 28
|
$ 104
|
|
2008
|
|
$ 33
|
$ 35
|
$ 49
|
$ 40
|
$ 156
|
|
_____________
|
|
|
|
|
|
|
|
Note:
Amounts may not foot across due to rounding.
|
|
|