| Third quarter reported EPS grew by 23%, or 11% on an adjusted basis. Third quarter 2008 net income was $142 million, or $0.80 diluted earnings per share. Adjusted net income, excluding $6 million after-tax in legacy items and restructuring costs, was $148 million, or $0.83 adjusted diluted earnings per share, exceeding Company-issued guidance of $0.80 - 0.82. | ||
| Third quarter 2008 revenues were $1.2 billion, up 1% from the third quarter of 2007. | ||
| Compared to the third quarter of 2007: |
| System size increased by 42,500 rooms, or 8% (2% excluding the impact of the Microtel and Hawthorn brands acquisition in July 2008). | ||
| Average net price per vacation rental increased 9%, or 5% in constant currency. | ||
| Average number of vacation exchange members increased 4%, or 135,000 members. | ||
| Gross Vacation Ownership Interest sales increased 3%. |
| EBITDA increased in each of the Companys businesses |
| Cash and cash equivalents of approximately $230 million compared to approximately $210 million at December 31, 2007 | ||
| Vacation ownership contract receivables, net, of $3.3 billion compared to $2.9 billion at December 31, 2007 | ||
| Vacation ownership and other inventory of approximately $1.3 billion compared to $1.2 billion at December 31, 2007 | ||
| Securitized vacation ownership debt of $2.1 billion, unchanged since December 31, 2007 | ||
| Other debt of $1.7 billion, compared to $1.5 billion at December 31, 2007 |
| Revenues of $4,360 - $4,410 million |
| Adjusted* EBITDA of $830 - $880 million | ||
| Depreciation and amortization expense of $175 - $185 million | ||
| Interest expense, net of $70 - $80 million | ||
| Adjusted* net income of $377 - $386 million | ||
| Adjusted* EPS of $2.12 - $2.17 based on weighted average shares of approximately 178 million |
| Revenues of approximately $4.1 - $4.5 billion | ||
| Adjusted* EBITDA of approximately $840 - $890 million |
* | All guidance excludes legacy items, rebranding charges and restructuring costs, if any, which may have a positive or negative impact on reported results, as applicable. |
Investor contact:
|
Press contact: | |
Margo C. Happer
|
Betsy ORourke | |
Senior Vice President,
|
Senior Vice President, | |
Investor Relations
|
Marketing and Communications | |
Wyndham Worldwide Corporation
|
Wyndham Worldwide Corporation | |
(973) 753-6472
|
(973) 753-7422 | |
Margo.Happer@wyndhamworldwide.com
|
Betsy.ORourke@wyndhamworldwide.com |
Three Months Ended September 30, | |||||||||||||||||
2008 | 2007 | ||||||||||||||||
Net Revenues | EBITDA | (d) | Net Revenues | EBITDA | (f) | ||||||||||||
Lodging |
$ | 213 | $ | 72 | $ | 211 | $ | 70 | |||||||||
Vacation Exchange and Rentals |
354 | 105 | 336 | 103 | |||||||||||||
Vacation Ownership |
661 | 128 | 671 | 116 | |||||||||||||
Total Reportable Segments |
1,228 | 305 | 1,218 | 289 | |||||||||||||
Corporate and Other (a) (b) |
(2 | ) | (11 | ) | (2 | ) | (41 | ) | |||||||||
Total Company |
$ | 1,226 | $ | 294 | $ | 1,216 | $ | 248 | |||||||||
Reconciliation of EBITDA to Net Income |
|||||||||||||||||
EBITDA |
$ | 294 | $ | 248 | |||||||||||||
Depreciation and amortization |
47 | 43 | |||||||||||||||
Interest expense |
21 | 20 | |||||||||||||||
Interest income |
(2 | ) | (4 | ) | |||||||||||||
Income before income taxes |
228 | 189 | |||||||||||||||
Provision for income taxes |
86 | 72 | |||||||||||||||
Net income |
$ | 142 | $ | 117 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2008 | 2007 | ||||||||||||||||
Net Revenues | EBITDA | (d) | Net Revenues | EBITDA | (f) | ||||||||||||
Lodging |
$ | 583 | $ | 179 | $ | 549 | $ | 174 | |||||||||
Vacation Exchange and Rentals |
1,009 | 252 | 937 | 237 | |||||||||||||
Vacation Ownership |
1,786 | 248 | (e) | 1,849 | 279 | ||||||||||||
Total Reportable Segments |
3,378 | 679 | 3,335 | 690 | |||||||||||||
Corporate and Other (a) (c) |
(8 | ) | (34 | ) | (7 | ) | (40 | ) | |||||||||
Total Company |
$ | 3,370 | $ | 645 | $ | 3,328 | $ | 650 | |||||||||
Reconciliation of EBITDA to Net Income |
|||||||||||||||||
EBITDA |
$ | 645 | $ | 650 | |||||||||||||
Depreciation and amortization |
137 | 122 | |||||||||||||||
Interest expense |
59 | 55 | |||||||||||||||
Interest income |
(8 | ) | (9 | ) | |||||||||||||
Income before income taxes |
457 | 482 | |||||||||||||||
Provision for income taxes |
175 | 184 | |||||||||||||||
Net income |
$ | 282 | $ | 298 | |||||||||||||
(a) | Includes the elimination of transactions between segments. | |
(b) | Includes $1 million and $25 million of a net expense during the three months ended September 30, 2008 and 2007, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. | |
(c) | Includes $4 million and $5 million of a net benefit during the nine months ended September 30, 2008 and 2007, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. | |
(d) | Includes restructuring costs of $4 million and $2 million for Lodging and Vacation Exchange and Rentals, respectively, during both the three and nine months ended September 30, 2008. | |
(e) | Includes an impairment charge of $28 million due to the Companys initiative to rebrand its vacation ownership trademarks to the Wyndham brand. | |
(f) | Includes separation and related costs of $1 million and $2 million for Vacation Ownership and Corporate and Other, respectively, during the three months ended September 30, 2007 and $9 million and $7 million for Vacation Ownership and Corporate and Other, respectively, during the nine months ended September 30, 2007. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net revenues |
||||||||||||||||
Vacation ownership interest sales |
$ | 446 | $ | 467 | $ | 1,153 | $ | 1,283 | ||||||||
Service fees and membership |
468 | 442 | 1,344 | 1,232 | ||||||||||||
Franchise fees |
153 | 155 | 402 | 406 | ||||||||||||
Consumer financing |
111 | 93 | 314 | 261 | ||||||||||||
Other |
48 | 59 | 157 | 146 | ||||||||||||
Net revenues |
1,226 | 1,216 | 3,370 | 3,328 | ||||||||||||
Expenses |
||||||||||||||||
Operating |
439 | 440 | 1,284 | 1,246 | ||||||||||||
Cost of vacation ownership interests |
86 | 101 | 226 | 296 | ||||||||||||
Consumer
financing interest (a) |
34 | 29 | 93 | 77 | ||||||||||||
Marketing and reservation |
232 | 229 | 659 | 632 | ||||||||||||
General and
administrative (b) |
140 | 174 | 438 | 419 | ||||||||||||
Separation
and related costs (c) |
- | 3 | - | 16 | ||||||||||||
Trademark
impairment (d) |
- | - | 28 | - | ||||||||||||
Restructuring costs (e) |
6 | - | 6 | - | ||||||||||||
Depreciation and amortization |
47 | 43 | 137 | 122 | ||||||||||||
Total expenses |
984 | 1,019 | 2,871 | 2,808 | ||||||||||||
Operating income |
242 | 197 | 499 | 520 | ||||||||||||
Other income, net |
(5 | ) | (8 | ) | (9 | ) | (8 | ) | ||||||||
Interest expense |
21 | 20 | 59 | 55 | ||||||||||||
Interest income |
(2 | ) | (4 | ) | (8 | ) | (9 | ) | ||||||||
Income before income taxes |
228 | 189 | 457 | 482 | ||||||||||||
Provision for income taxes |
86 | 72 | 175 | 184 | ||||||||||||
Net income |
$ | 142 | $ | 117 | $ | 282 | $ | 298 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.80 | $ | 0.65 | $ | 1.59 | $ | 1.63 | ||||||||
Diluted |
0.80 | 0.65 | 1.58 | 1.62 | ||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
178 | 179 | 177 | 183 | ||||||||||||
Diluted |
178 | 180 | 178 | 184 |
(a) | Prior to periods ending September 30, 2008, such amounts were included as a component of Operating Expenses. | |
(b) | Includes $1 million and $25 million of a net expense during the three months ended September 30, 2008 and 2007, respectively, and $4 million and $5 million of a net benefit during the nine months ended September 30, 2008 and 2007, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets. | |
(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 amounts, net of tax, were $2 million and $10 million during the three and nine months ended September 30, 2007, respectively. | |
(d) | Represents an impairment charge due to the Companys initiative to rebrand its vacation ownership trademarks to the Wyndham brand. Such amount, net of tax, was $17 million during the nine months ended September 30, 2008. | |
(e) | Relates to costs incurred as a result of various strategic initiatives approved by the Company and commenced during the third quarter of 2008. Such amount, net of tax, was $4 million during both the three and nine months ended September 30, 2008. |
Year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||
Lodging (a) |
||||||||||||||||||||||||
Number of Rooms (b) |
2008 | 551,100 | 551,500 | 583,400 | N/A | 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 | N/A | N/A | |||||||||||||||
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 | N/A | N/A | |||||||||||||||
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 | N/A | N/A | ||||||||||||||||||
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 | N/A | N/A | |||||||||||||||
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 | N/A | N/A | ||||||||||||||||||
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 | N/A | N/A | |||||||||||||||
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 | N/A | N/A | |||||||||||||||
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 | N/A | N/A | ||||||||||||||||||
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 | N/A | N/A | |||||||||||||||
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), Wyndham Hotels and Resorts (October 2005) and Baymont Inn & Suites (April 2006) from their acquisition dates forward. Therefore, the operating statistics are not presented on a comparable basis. | |
(b) | Numbers include affiliated rooms from the fourth quarter of 2006 forward. |
Year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||
Lodging (a) |
||||||||||||||||||||||||
Number of Properties (b) |
2008 | 6,550 | 6,560 | 6,970 | N/A | 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 | N/A | N/A | |||||||||||||||
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 | N/A | N/A | |||||||||||||||
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 | ) | N/A | N/A | ||||||||||||
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 | N/A | N/A | |||||||||||||||
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), Wyndham Hotels and Resorts (October 2005) and Baymont Inn & Suites (April 2006) 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. |
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2008 | 2008 | 2008 | 2007 | 2007 | ||||||||||||||||
Securitized vacation ownership debt |
||||||||||||||||||||
Term notes |
$ | 1,437 | $ | 1,727 | $ | 1,278 | $ | 1,435 | $ | 1,148 | ||||||||||
Bank conduit facility (a) |
647 | 354 | 841 | 646 | 777 | |||||||||||||||
Securitized vacation ownership debt (b) |
2,084 | 2,081 | 2,119 | 2,081 | 1,925 | |||||||||||||||
Less: Current portion of securitized vacation ownership debt |
324 | 284 | 268 | 237 | 304 | |||||||||||||||
Long-term securitized vacation ownership debt |
$ | 1,760 | $ | 1,797 | $ | 1,851 | $ | 1,844 | $ | 1,621 | ||||||||||
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) |
305 | 145 | 95 | 97 | 133 | |||||||||||||||
Vacation ownership bank borrowings |
172 | 196 | 181 | 164 | 148 | |||||||||||||||
Vacation rentals capital leases |
143 | 162 | 165 | 154 | 153 | |||||||||||||||
Other |
12 | 13 | 14 | 14 | 14 | |||||||||||||||
Total debt |
1,729 | 1,613 | 1,552 | 1,526 | 1,545 | |||||||||||||||
Less: Current portion of debt |
182 | 207 | 193 | 175 | 159 | |||||||||||||||
Long-term debt |
$ | 1,547 | $ | 1,406 | $ | 1,359 | $ | 1,351 | $ | 1,386 | ||||||||||
(a) | This 364-day vacation ownership bank conduit facility has availability of $1,200 million and is no longer revolving as of October 29, 2008. See press release discussion regarding a new bank conduit facility. | |
(b) | This debt is collateralized by $2,721 million, $2,723 million, $2,667 million, $2,596 million and $2,428 million of underlying vacation ownership contract receivables and related assets at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively. | |
(c) | The balance at September 30, 2008 represents $800 million aggregate principal less $3 million of unamortized discount. | |
(d) | The Companys revolving credit facility has a borrowing capacity of $900 million. At September 30, 2008, the Company has $60 million of outstanding letters of credit and a remaining borrowing capacity of $535 million. 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. |
As of and For the Three Months Ended September 30, 2008 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Revenue Per | ||||||||||||||||||||
Average | Average Daily | Available Room | ||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Occupancy Rate | Rate (ADR) | (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts |
80 | 21,365 | 63.4 | % | $ | 123.13 | $ | 78.09 | ||||||||||||
Wingate Inn |
158 | 14,427 | 62.9 | % | $ | 93.44 | $ | 58.77 | ||||||||||||
Hawthorn Suites |
90 | 8,404 | 63.5 | % | $ | 91.00 | $ | 57.78 | ||||||||||||
Ramada |
877 | 110,844 | 57.0 | % | $ | 82.35 | $ | 46.92 | ||||||||||||
Baymont |
213 | 18,194 | 55.7 | % | $ | 67.82 | $ | 37.74 | ||||||||||||
AmeriHost Inn |
14 | 893 | 59.8 | % | $ | 79.06 | $ | 47.27 | ||||||||||||
Days Inn |
1,878 | 152,557 | 56.9 | % | $ | 68.95 | $ | 39.22 | ||||||||||||
Super 8 |
2,098 | 130,056 | 62.1 | % | $ | 63.69 | $ | 39.57 | ||||||||||||
Howard Johnson |
471 | 45,084 | 52.4 | % | $ | 69.09 | $ | 36.20 | ||||||||||||
Travelodge |
482 | 36,203 | 56.1 | % | $ | 73.48 | $ | 41.19 | ||||||||||||
Microtel Inns & Suites |
301 | 21,431 | 57.9 | % | $ | 63.51 | $ | 36.78 | ||||||||||||
Knights Inn |
294 | 19,568 | 45.4 | % | $ | 46.18 | $ | 20.95 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels(*) |
14 | 4,367 | N/A | N/A | N/A | |||||||||||||||
Total |
6,970 | 583,393 | 57.7 | % | $ | 72.61 | $ | 41.93 | ||||||||||||
As of and For the Three Months Ended September 30, 2007 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Revenue Per | ||||||||||||||||||||
Average | Average Daily | Available Room | ||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Occupancy Rate | Rate (ADR) | (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts |
75 | 20,585 | 65.3 | % | $ | 110.47 | $ | 72.10 | ||||||||||||
Wingate Inn |
152 | 13,952 | 67.1 | % | $ | 89.71 | $ | 60.18 | ||||||||||||
Ramada |
854 | 103,230 | 61.6 | % | $ | 79.38 | $ | 48.91 | ||||||||||||
Baymont |
182 | 15,962 | 63.6 | % | $ | 72.61 | $ | 46.16 | ||||||||||||
AmeriHost Inn |
39 | 2,754 | 58.4 | % | $ | 70.99 | $ | 41.45 | ||||||||||||
Days Inn |
1,857 | 150,667 | 59.7 | % | $ | 67.91 | $ | 40.57 | ||||||||||||
Super 8 |
2,061 | 127,038 | 65.4 | % | $ | 62.05 | $ | 40.60 | ||||||||||||
Howard Johnson |
465 | 44,422 | 53.9 | % | $ | 69.40 | $ | 37.41 | ||||||||||||
Travelodge |
492 | 36,639 | 59.1 | % | $ | 71.48 | $ | 42.27 | ||||||||||||
Knights Inn |
261 | 18,193 | 45.2 | % | $ | 46.49 | $ | 21.01 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels(*) |
23 | 7,475 | N/A | N/A | N/A | |||||||||||||||
Total |
6,461 | 540,917 | 60.9 | % | $ | 70.77 | $ | 43.10 | ||||||||||||
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. |
As of and For the Nine Months Ended September 30, 2008 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Revenue Per | ||||||||||||||||||||
Average | Average Daily | Available Room | ||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Occupancy Rate | Rate (ADR) | (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts |
80 | 21,365 | 63.6 | % | $ | 123.30 | $ | 78.44 | ||||||||||||
Wingate Inn |
158 | 14,427 | 62.3 | % | $ | 92.72 | $ | 57.78 | ||||||||||||
Hawthorn Suites |
90 | 8,404 | 63.5 | % | $ | 91.00 | $ | 57.78 | ||||||||||||
Ramada |
877 | 110,844 | 54.2 | % | $ | 82.35 | $ | 44.63 | ||||||||||||
Baymont |
213 | 18,194 | 51.2 | % | $ | 66.38 | $ | 34.02 | ||||||||||||
AmeriHost Inn |
14 | 893 | 49.2 | % | $ | 71.45 | $ | 35.15 | ||||||||||||
Days Inn |
1,878 | 152,557 | 52.0 | % | $ | 65.80 | $ | 34.24 | ||||||||||||
Super 8 |
2,098 | 130,056 | 56.0 | % | $ | 60.40 | $ | 33.84 | ||||||||||||
Howard Johnson |
471 | 45,084 | 48.5 | % | $ | 65.95 | $ | 32.01 | ||||||||||||
Travelodge |
482 | 36,203 | 50.7 | % | $ | 70.20 | $ | 35.60 | ||||||||||||
Microtel Inns & Suites |
301 | 21,431 | 57.9 | % | $ | 63.51 | $ | 36.78 | ||||||||||||
Knights Inn |
294 | 19,568 | 42.4 | % | $ | 43.71 | $ | 18.54 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels(*) |
14 | 4,367 | N/A | N/A | N/A | |||||||||||||||
Total |
6,970 | 583,393 | 53.4 | % | $ | 70.68 | $ | 37.76 | ||||||||||||
As of and For the Nine Months Ended September 30, 2007 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Revenue Per | ||||||||||||||||||||
Average | Average Daily | Available Room | ||||||||||||||||||
Brand | Number of Properties | Number of Rooms | Occupancy Rate | Rate (ADR) | (RevPAR) | |||||||||||||||
Wyndham Hotels and Resorts |
75 | 20,585 | 65.2 | % | $ | 112.65 | $ | 73.42 | ||||||||||||
Wingate Inn |
152 | 13,952 | 66.7 | % | $ | 89.65 | $ | 59.82 | ||||||||||||
Ramada |
854 | 103,230 | 56.5 | % | $ | 77.55 | $ | 43.86 | ||||||||||||
Baymont |
182 | 15,962 | 56.5 | % | $ | 68.91 | $ | 38.90 | ||||||||||||
AmeriHost Inn |
39 | 2,754 | 49.0 | % | $ | 66.71 | $ | 32.66 | ||||||||||||
Days Inn |
1,857 | 150,667 | 54.4 | % | $ | 63.72 | $ | 34.67 | ||||||||||||
Super 8 |
2,061 | 127,038 | 57.9 | % | $ | 58.53 | $ | 33.91 | ||||||||||||
Howard Johnson |
465 | 44,422 | 49.4 | % | $ | 65.59 | $ | 32.39 | ||||||||||||
Travelodge |
492 | 36,639 | 52.2 | % | $ | 66.42 | $ | 34.68 | ||||||||||||
Knights Inn |
261 | 18,193 | 42.3 | % | $ | 43.58 | $ | 18.43 | ||||||||||||
Unmanaged, Affiliated and Managed, Non-Proprietary Hotels (*) |
23 | 7,475 | N/A | N/A | N/A | |||||||||||||||
Total |
6,461 | 540,917 | 55.4 | % | $ | 67.94 | $ | 37.63 | ||||||||||||
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. |
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, 2008 | June 30, 2008 | September 30, 2008 | September 30, 2008 | |||||||||||||
Reported EBITDA |
$ | 130 | $ | 221 | $ | 294 | $ | 645 | ||||||||
Resolution of and adjustment to contingent liabilities and assets (a) |
3 | (7 | ) | 1 | (4 | ) | ||||||||||
Trademark impairment (b) |
28 | | | 28 | ||||||||||||
Restructuring costs (c) |
| | 6 | 6 | ||||||||||||
Adjusted EBITDA |
$ | 161 | $ | 214 | $ | 301 | $ | 675 | ||||||||
Reported PreTax Income |
$ | 70 | $ | 160 | $ | 228 | $ | 457 | ||||||||
Resolution of and adjustment to contingent liabilities and assets (a) |
3 | (7 | ) | 1 | (4 | ) | ||||||||||
Trademark impairment (b) |
28 | | | 28 | ||||||||||||
Restructuring costs (c) |
| | 6 | 6 | ||||||||||||
Adjusted PreTax Income |
$ | 101 | $ | 153 | $ | 235 | $ | 487 | ||||||||
Reported Tax Provision |
$ | (28 | ) | $ | (62 | ) | $ | 86 | $ | 175 | ||||||
Resolution of and adjustment to contingent liabilities and assets (d) |
| 3 | (1 | ) | (5 | ) | ||||||||||
Trademark impairment (d) |
(11 | ) | | | 11 | |||||||||||
Restructuring costs (d) |
| | 2 | 2 | ||||||||||||
Adjusted Tax Provision |
$ | (39 | ) | $ | (59 | ) | $ | 87 | $ | 183 | ||||||
Reported Net Income |
$ | 42 | $ | 98 | $ | 142 | $ | 282 | ||||||||
Resolution of and adjustment to contingent liabilities and assets |
3 | (4 | ) | 2 | 1 | |||||||||||
Trademark impairment |
17 | | | 17 | ||||||||||||
Restructuring costs |
| | 4 | 4 | ||||||||||||
Adjusted Net Income |
$ | 62 | $ | 94 | $ | 148 | $ | 304 | ||||||||
Reported Diluted EPS |
$ | 0.24 | $ | 0.55 | $ | 0.80 | $ | 1.58 | ||||||||
Resolution of and adjustment to contingent liabilities and assets |
0.01 | (0.02 | ) | 0.01 | 0.01 | |||||||||||
Trademark impairment |
0.10 | | | 0.10 | ||||||||||||
Restructuring costs |
| | 0.02 | 0.02 | ||||||||||||
Adjusted Diluted EPS |
$ | 0.35 | $ | 0.53 | $ | 0.83 | $ | 1.71 | ||||||||
Diluted Shares |
178 | 178 | 178 | 178 |
Note: Amounts may not foot due to rounding. | ||
(a) | Relates to the net (benefit)/expense from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Represents an impairment charge due to the Companys initiative to rebrand its vacation ownership trademarks to the Wyndham brand. | |
(c) | Relates to costs incurred as a result of various strategic initiatives approved by the Company and commenced during the third quarter of 2008. | |
(d) | Relates to the tax effect of the adjustments. |
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, 2007 | June 30, 2007 | September 30, 2007 | September 30, 2007 | |||||||||||||
Reported EBITDA |
$ | 192 | $ | 211 | $ | 248 | $ | 650 | ||||||||
Separation and related costs (a) |
6 | 7 | 3 | 16 | ||||||||||||
Resolution of and adjustment to contingent liabilities and assets (b) |
(13 | ) | (17 | ) | 25 | (5 | ) | |||||||||
Adjusted EBITDA |
$ | 185 | $ | 201 | $ | 276 | $ | 661 | ||||||||
Reported PreTax Income |
$ | 139 | $ | 154 | $ | 189 | $ | 482 | ||||||||
Separation and related costs (a) |
6 | 7 | 3 | 16 | ||||||||||||
Resolution of and adjustment to contingent liabilities and assets (b) |
(13 | ) | (17 | ) | 25 | (5 | ) | |||||||||
Adjusted PreTax Income |
$ | 132 | $ | 144 | $ | 217 | $ | 493 | ||||||||
Reported Tax Provision |
$ | (53 | ) | $ | (58 | ) | $ | (72 | ) | $ | (184 | ) | ||||
Separation and related costs (c) |
(2 | ) | (3 | ) | (1 | ) | (6 | ) | ||||||||
Resolution of and adjustment to contingent liabilities and assets (c) |
4 | 6 | (10 | ) | 1 | |||||||||||
Adjusted Tax Provision |
$ | (51 | ) | $ | (55 | ) | $ | (83 | ) | $ | (189 | ) | ||||
Reported Net Income |
$ | 86 | $ | 96 | $ | 117 | $ | 298 | ||||||||
Separation and related costs |
4 | 4 | 2 | 10 | ||||||||||||
Resolution of and adjustment to contingent liabilities and assets |
(9 | ) | (11 | ) | 15 | (4 | ) | |||||||||
Adjusted Net Income |
$ | 81 | $ | 89 | $ | 134 | $ | 304 | ||||||||
Reported Diluted EPS |
$ | 0.45 | $ | 0.52 | $ | 0.65 | $ | 1.62 | ||||||||
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 | (0.02 | ) | |||||||||
Adjusted Diluted EPS |
$ | 0.43 | $ | 0.49 | $ | 0.75 | $ | 1.65 | ||||||||
Diluted Shares |
190 | 183 | 180 | 184 |
Note: Amounts may not foot due to rounding. | ||
(a) | Represents the costs incurred in connection with the Companys 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. |
Three Months Ended September 30, 2008 | ||||||||||||||||
Legacy | Restructuring | |||||||||||||||
As Reported | Adjustments | Costs | As Adjusted | |||||||||||||
Net revenues |
||||||||||||||||
Vacation ownership interest sales |
$ | 446 | $ | 446 | ||||||||||||
Service fees and membership |
468 | 468 | ||||||||||||||
Franchise fees |
153 | 153 | ||||||||||||||
Consumer financing |
111 | 111 | ||||||||||||||
Other |
48 | 48 | ||||||||||||||
Net revenues |
1,226 | - | - | 1,226 | ||||||||||||
Expenses |
||||||||||||||||
Operating |
439 | 439 | ||||||||||||||
Cost of vacation ownership interests |
86 | 86 | ||||||||||||||
Consumer financing interest |
34 | 34 | ||||||||||||||
Marketing and reservation |
232 | 232 | ||||||||||||||
General and administrative |
140 | (1 | ) (a) | 139 | ||||||||||||
Restructuring costs |
6 | (6 | ) (b) | - | ||||||||||||
Depreciation and amortization |
47 | 47 | ||||||||||||||
Total expenses |
984 | (1 | ) | (6 | ) | 977 | ||||||||||
Operating income |
242 | 1 | 6 | 249 | ||||||||||||
Other income, net |
(5 | ) | (5 | ) | ||||||||||||
Interest expense |
21 | 21 | ||||||||||||||
Interest income |
(2 | ) | (2 | ) | ||||||||||||
Income before income taxes |
228 | 1 | 6 | 235 | ||||||||||||
Provision for income taxes |
86 | (1 | ) (c) | 2 | (c) | 87 | ||||||||||
Net income |
$ | 142 | $ | 2 | $ | 4 | $ | 148 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.80 | $ | 0.01 | $ | 0.02 | $ | 0.83 | ||||||||
Diluted |
0.80 | 0.01 | 0.02 | 0.83 | ||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
178 | 178 | 178 | 178 | ||||||||||||
Diluted |
178 | 178 | 178 | 178 |
(a) | Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Relates to costs incurred as a result of various strategic initiatives approved by the Company and commenced during the third quarter of 2008. | |
(c) | Relates to the tax effect of the adjustment. |
Nine Months Ended September 30, 2008 | |||||||||||||||||||||
Legacy | Trademark | Restructuring | |||||||||||||||||||
As Reported | Adjustments | Impairment | Costs | As Adjusted | |||||||||||||||||
Net revenues |
|||||||||||||||||||||
Vacation ownership interest sales |
$ | 1,153 | $ | 1,153 | |||||||||||||||||
Service fees and membership |
1,344 | 1,344 | |||||||||||||||||||
Franchise fees |
402 | 402 | |||||||||||||||||||
Consumer financing |
314 | 314 | |||||||||||||||||||
Other |
157 | 157 | |||||||||||||||||||
Net revenues |
3,370 | - | - | - | 3,370 | ||||||||||||||||
Expenses |
|||||||||||||||||||||
Operating |
1,284 | 1,284 | |||||||||||||||||||
Cost of vacation ownership interests |
226 | 226 | |||||||||||||||||||
Consumer financing interest |
93 | 93 | |||||||||||||||||||
Marketing and reservation |
659 | 659 | |||||||||||||||||||
General and administrative |
438 | 4 | (a) | 442 | |||||||||||||||||
Trademark impairment |
28 | (28 | ) (b) | - | |||||||||||||||||
Restructuring costs |
6 | (6 | ) (c) | - | |||||||||||||||||
Depreciation and amortization |
137 | 137 | |||||||||||||||||||
Total expenses |
2,871 | 4 | (28 | ) | (6 | ) | 2,841 | ||||||||||||||
Operating income |
499 | (4 | ) | 28 | 6 | 529 | |||||||||||||||
Other income, net |
(9 | ) | (9 | ) | |||||||||||||||||
Interest expense |
59 | 59 | |||||||||||||||||||
Interest income |
(8 | ) | (8 | ) | |||||||||||||||||
Income before income taxes |
457 | (4 | ) | 28 | 6 | 487 | |||||||||||||||
Provision for income taxes |
175 | (5 | ) (d) | 11 | (d) | 2 | (d) | 183 | |||||||||||||
Net income |
$ | 282 | $ | 1 | $ | 17 | $ | 4 | $ | 304 | |||||||||||
Earnings per share |
|||||||||||||||||||||
Basic |
$ | 1.59 | $ | 0.01 | $ | 0.10 | $ | 0.02 | $ | 1.71 | |||||||||||
Diluted |
1.58 | 0.01 | 0.10 | 0.02 | 1.71 | ||||||||||||||||
Weighted average shares outstanding |
|||||||||||||||||||||
Basic |
177 | 177 | 177 | 177 | 177 | ||||||||||||||||
Diluted |
178 | 178 | 178 | 178 | 178 |
Note: EPS amounts may not foot across due to rounding. | ||
(a) | Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets. | |
(b) | Represents an impairment charge due to the Companys initiative to rebrand its vacation ownership trademarks to the Wyndham brand. | |
(c) | Relates to costs incurred as a result of various strategic initiatives approved by the Company and commenced during the third quarter of 2008. | |
(d) | Relates to the tax effect of the adjustments. |
Three Months Ended September 30, 2007 | ||||||||||||||||
Separation and | ||||||||||||||||
Related | Legacy | |||||||||||||||
As Reported | Adjustments | Adjustments | As Adjusted | |||||||||||||
Net revenues |
||||||||||||||||
Vacation ownership interest sales |
$ | 467 | $ | 467 | ||||||||||||
Service fees and membership |
442 | 442 | ||||||||||||||
Franchise fees |
155 | 155 | ||||||||||||||
Consumer financing |
93 | 93 | ||||||||||||||
Other |
59 | 59 | ||||||||||||||
Net revenues |
1,216 | - | - | 1,216 | ||||||||||||
Expenses |
||||||||||||||||
Operating |
440 | 440 | ||||||||||||||
Consumer financing interest expense |
29 | 29 | ||||||||||||||
Cost of vacation ownership interests |
101 | 101 | ||||||||||||||
Marketing and reservation |
229 | 229 | ||||||||||||||
General and administrative |
174 | (25 | ) (b) | 149 | ||||||||||||
Separation and related costs |
3 | (3 | ) (a) | - | ||||||||||||
Depreciation and amortization |
43 | 43 | ||||||||||||||
Total expenses |
1,019 | (3 | ) | (25 | ) | 991 | ||||||||||
Operating income |
197 | 3 | 25 | 225 | ||||||||||||
Other income, net |
(8 | ) | (8 | ) | ||||||||||||
Interest expense |
20 | 20 | ||||||||||||||
Interest income |
(4 | ) | (4 | ) | ||||||||||||
Income before income taxes |
189 | 3 | 25 | 217 | ||||||||||||
Provision for income taxes |
72 | 1 | (c) | 10 | (c) | 83 | ||||||||||
Net income |
$ | 117 | $ | 2 | $ | 15 | $ | 134 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.65 | $ | 0.01 | $ | 0.09 | $ | 0.75 | ||||||||
Diluted |
0.65 | 0.01 | 0.09 | 0.75 | ||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
179 | 179 | 179 | 179 | ||||||||||||
Diluted |
180 | 180 | 180 | 180 |
Note: EPS amounts may not foot across due to rounding. | ||
(a) | Represents the costs incurred in connection with the Companys 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. |
Nine Months Ended September 30, 2007 | ||||||||||||||||
Separation and | ||||||||||||||||
Related | Legacy | |||||||||||||||
As Reported | Adjustments | Adjustments | As Adjusted | |||||||||||||
Net revenues |
||||||||||||||||
Vacation ownership interest sales |
$ | 1,283 | $ | 1,283 | ||||||||||||
Service fees and membership |
1,232 | 1,232 | ||||||||||||||
Franchise fees |
406 | 406 | ||||||||||||||
Consumer financing |
261 | 261 | ||||||||||||||
Other |
146 | 146 | ||||||||||||||
Net revenues |
3,328 | - | - | 3,328 | ||||||||||||
Expenses |
||||||||||||||||
Operating |
1,246 | 1,246 | ||||||||||||||
Consumer financing interest expense |
77 | 77 | ||||||||||||||
Cost of vacation ownership interests |
296 | 296 | ||||||||||||||
Marketing and reservation |
632 | 632 | ||||||||||||||
General and administrative |
419 | 5 | (b) | 424 | ||||||||||||
Separation and related costs |
16 | (16 | ) (a) | - | ||||||||||||
Depreciation and amortization |
122 | 122 | ||||||||||||||
Total expenses |
2,808 | (16 | ) | 5 | 2,797 | |||||||||||
Operating income |
520 | 16 | (5 | ) | 531 | |||||||||||
Other income, net |
(8 | ) | (8 | ) | ||||||||||||
Interest expense |
55 | 55 | ||||||||||||||
Interest income |
(9 | ) | (9 | ) | ||||||||||||
Income before income taxes |
482 | 16 | (5 | ) | 493 | |||||||||||
Provision for income taxes |
184 | 6 | (c) | (1 | ) (c) | 189 | ||||||||||
Net income |
$ | 298 | $ | 10 | $ | (4 | ) | $ | 304 | |||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 1.63 | $ | 0.05 | $ | (0.02 | ) | $ | 1.66 | |||||||
Diluted |
1.62 | 0.05 | (0.02 | ) | 1.65 | |||||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
183 | 183 | 183 | 183 | ||||||||||||
Diluted |
184 | 184 | 184 | 184 |
Note: EPS amounts may not foot across due to rounding. | ||
(a) | Represents the costs incurred in connection with the Companys separation from Cendant (now Avis Budget Group). | |
(c) | Relates to the net benefit from the resolution of certain contingent liabilities and assets. | |
(c) | Relates to the tax effect of the adjustments. |