PARSIPPANY, N.J., April 28, 2015 /PRNewswire/ -- Wyndham
Worldwide Corporation (NYSE: WYN) today announced results for the
three months ended March 31,
2015.
First Quarter Highlights:
- First quarter adjusted diluted earnings per share (EPS) was
$1.03, an increase of 32% from
adjusted diluted EPS of $0.78 in the
first quarter of 2014. Reported diluted EPS was $1.00 in the first quarter of 2015, an increase
of 45% from reported diluted EPS of $0.69 from the same period in 2014.
- Revenues increased 6% compared with the first quarter of 2014.
In constant currency, revenues increased 9%.
- Adjusted EBITDA increased 14% compared with the first quarter
of 2014. In constant currency, adjusted EBITDA increased 18%.
- During the quarter, the Company repurchased 1.7 million shares
of its common stock for $150
million.
"We are off to a strong start this year. Despite
significant currency headwinds, adjusted diluted EPS increased 32%
and adjusted EBITDA increased 14% in the first quarter," said
Stephen P. Holmes, chairman and
CEO. "All three businesses once again performed well,
highlighted by strong domestic RevPAR growth at our Hotel Group,
improved provision and cost of sales at Vacation Ownership and
strong growth across our vacation rentals businesses. We
continue to deliver strong results, allocate capital to both invest
in the business and return to shareholders, and innovate to build a
strong competitive position going forward."
FIRST QUARTER 2015 OPERATING RESULTS
First quarter
revenues were $1.3 billion, an
increase of 6% from the prior year period. In constant
currency revenues increased 9%, reflecting growth across the
Company's business segments.
Adjusted net income was $126
million, or $1.03 per diluted
share, compared with $102 million, or
$0.78 per diluted share for the same
period in 2014. The increase reflects stronger financial
results in all of the Company's businesses. EPS also
benefited from the Company's share repurchase program, which
decreased weighted average diluted share count by 6%
year-over-year.
Reported net income for the first quarter of 2015 was
$122 million, or $1.00 per diluted share, compared with
$90 million, or $0.69 per diluted share, for the first quarter of
2014. Reported net income in both periods reflects several
items excluded from adjusted net income. The net result of
these items unfavorably impacted first quarter 2015 net income by
$4 million and unfavorably impacted
first quarter 2014 net income by $12
million. Full reconciliations of adjusted results to
GAAP results appear in Table 8 of this press release.
Free cash flow was $197 million
for the three months ended March 31,
2015, compared with $269
million for the same period in 2014. The decline in
free cash flow reflects the timing of working capital including
inventory spending. The Company defines free cash flow as net
cash provided by operating activities less capital
expenditures. For the three months ended March 31, 2015, net cash provided by operating
activities was $253 million, compared
with $315 million in the prior year
period. The Company expects free cash flow for the full year
2015 of approximately $800 million
compared with $749 million in free
cash flow in 2014.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were
$292 million in the first quarter of
2015, a 23% increase over the first quarter of 2014.
Excluding an acquisition and in constant currency, revenues
increased 14%, reflecting higher domestic RevPAR and worldwide room
growth as well as incremental global conference fees.
Total system-wide RevPAR increased 1.7% compared with the first
quarter of 2014. Domestic RevPAR increased 7.7%, but was
partially offset by a 9.8% decline in international RevPAR.
In constant currency and excluding acquisitions, total system-wide
RevPAR increased 4.0%.
Adjusted EBITDA for the first quarter of 2015 was $79 million, a 16% increase compared with the
first quarter of 2014. The increase primarily reflects higher
domestic RevPAR and worldwide room growth as well as higher
inter-segment licensing fees for use of the Wyndham brand trade
name.
As of March 31, 2015, the
Company's hotel system consisted of over 7,670 properties and over
667,000 rooms, a 3.2% room increase compared with the first quarter
of 2014. The development pipeline included 925 hotels and
approximately 116,000 rooms, of which 58% were international and
62% were new construction.
Vacation Exchange and Rentals (Wyndham Exchange &
Rentals)
Revenues were $369
million in the first quarter of 2015, a 3% decrease over the
first quarter of 2014. In constant currency, revenues
increased 5%.
Exchange revenues were $185
million, a 1% decrease compared with the first quarter of
2014. In constant currency, exchange revenues increased 2%,
as the average number of members increased 2.5% and exchange
revenue per member was flat.
Vacation rental revenues were $166
million, a 6% decrease compared to the first quarter of
2014. In constant currency, vacation rental revenues were up
8%, reflecting a 7.0% increase in transaction volume and a 0.9%
increase in average net price per vacation rental.
Adjusted EBITDA for the first quarter of 2015 was $104 million, a 9% increase compared with the
first quarter of 2014. On a currency-neutral basis and
excluding the divestiture of a business, adjusted EBITDA increased
9% compared with the prior year period primarily reflecting higher
revenue and a $4 million reserve
reversal resulting from a favorable ruling associated with
value-added taxes.
Vacation Ownership (Wyndham Vacation
Ownership)
Revenues were $617
million in the first quarter of 2015, a 4% increase over the
first quarter of 2014.
Net VOI sales increased 11%, primarily reflecting a lower loan
loss provision and the recognition of deferred revenues.
Gross VOI sales were $390 million in
the first quarter of 2015, a decrease of 5% compared with the first
quarter of 2014, reflecting a 4.2% decline in volume per guest
(VPG) and a 1.2% decline in tour flow. In constant currency,
VPG declined 3.1% primarily reflecting a higher mix of new owner
tours, which generally have a lower VPG than tours to existing
owners.
Adjusted EBITDA for the first quarter of 2015 was $130 million, an increase of 13% compared with
the first quarter of 2014, primarily reflecting the net revenue
increase and lower cost of sales.
Other Items
- The Company repurchased 1.7 million shares of common stock for
$150 million during the first quarter
of 2015. From April 1 through April
27, 2015, the Company repurchased an additional 0.5 million
shares for $45 million. The
Company's remaining share repurchase authorization totals
$821 million as of April 27, 2015.
- Reported net interest expense in the first quarter of 2015 was
$23 million, compared with
$25 million in the first quarter of
2014.
Balance Sheet Information as of March
31, 2015:
- Cash and cash equivalents of $180
million, compared with $183
million at December 31,
2014
- Vacation ownership contract receivables, net, of $2.6 billion, compared with $2.7 billion at December
31, 2014
- Vacation ownership and other inventory of $1.2 billion, unchanged from December 31, 2014
- Securitized vacation ownership debt of $2.2 billion, unchanged from December 31, 2014
- Long-term debt of $3.0 billion,
compared with $2.9 billion at
December 31, 2014. The remaining
borrowing capacity on the revolving credit facility, net of
commercial paper borrowings, was $1.1
billion as of March 31, 2015,
compared to $1.3 billion from
December 31, 2014
A schedule of debt is included in Table 5 of this press
release.
Outlook
Note to Editors: The guidance excludes possible future
share repurchases, while analysts' estimates often include share
repurchases. This results in discrepancies between Company
guidance and database consensus forecasts.
For the full year 2015, the Company reiterates the following
guidance:
- Revenues of approximately $5.450 -
$5.550 billion.
- Adjusted EBITDA of approximately $1.285
- $1.315 billion. Guidance reflects a $42 million adverse impact from foreign exchange
compared with 2014 full year results.
For the full year 2015, the Company updates the following
guidance:
- Adjusted diluted EPS of approximately $4.81 - $4.96 based on a diluted share count of
121.4 million, up from $4.75 - $4.90
based on a diluted share count of 123 million.
Conference Call Information
Wyndham Worldwide
Corporation will hold a conference call with investors to discuss
the Company's results, outlook and guidance on Tuesday, April 28, 2015 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 on the website for approximately 90 days
beginning at noon EDT on April 28, 2015. The conference call may also be
accessed by dialing 800-369-2125 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 April 28, 2015, at
800-388-4923.
The Company will post guidance information on its website
following the conference call.
Presentation of Financial Information
Financial
information discussed in this press release includes non-GAAP
measures, which include or exclude certain items. These
non-GAAP measures differ from reported GAAP results and are
intended to illustrate what management believes are relevant
period-over-period comparisons and are helpful to investors as an
additional tool for further understanding and assessing the
Company's ongoing core operating performance. Exclusion of
items in our non-GAAP presentation should not be considered an
inference that these items are unusual, infrequent or
non-recurring. A complete reconciliation of reported GAAP
results to the comparable non-GAAP information appears in the
financial tables section of the press release. It is not
practicable to provide a reconciliation of forecasted adjusted
EBITDA and adjusted 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 the Company's reported results.
About Wyndham Worldwide Corporation
One of the
world's largest hospitality companies, Wyndham Worldwide (NYSE:
WYN) provides a wide range of hospitality services and products
through its global portfolio of world-renowned brands. The
world's largest hotel company based on the number of properties,
Wyndham Hotel Group is home to many of the world's best-known hotel
brands, with over 7,670 franchised hotels and over 667,000 hotel
rooms worldwide. Wyndham Exchange & Rentals is the worldwide
leader in vacation exchange and the world's largest professionally
managed vacation rentals business, providing more than 5 million
leisure-bound families annually with access to over 109,000
vacation properties in over 100 countries through its prominent
exchange and vacation rental brands. The industry and timeshare
ownership market leader, Wyndham Vacation Ownership develops,
markets, and sells vacation ownership interests and provides
consumer financing to owners through its network of 210 vacation
ownership resorts serving approximately 904,000 owners throughout
the United States, Canada, Mexico, the Caribbean, and the South Pacific. Based in
Parsippany, NJ, Wyndham Worldwide
employs over 34,000 associates globally. For more information,
please visit 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, cash flow 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 Annual Report on Form
10-K, filed with the SEC on February 13,
2015. 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
|
|
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), early
extinguishment of debt, 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 segments which when considered with GAAP measures, 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 the Company's reportable
segments, as well as reconcile EBITDA to Net income for the three
months ended March 31, 2015 and 2014:
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
Lodging
|
$
|
292
|
|
$
|
76
|
|
$
|
237
|
|
$
|
64
|
|
Vacation Exchange and
Rentals
|
|
369
|
|
|
105
|
|
|
379
|
|
|
85
|
|
Vacation
Ownership
|
|
617
|
|
|
130
|
|
|
593
|
|
|
115
|
|
Total Reportable
Segments
|
|
1,278
|
|
|
311
|
|
|
1,209
|
|
|
264
|
|
Corporate and Other
(a)
|
|
(16)
|
|
|
(34)
|
|
|
(16)
|
|
|
(34)
|
|
Total Company
|
$
|
1,262
|
|
$
|
277
|
|
$
|
1,193
|
|
$
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
EBITDA
|
|
|
|
$
|
277
|
|
|
|
|
$
|
230
|
|
Depreciation and
amortization
|
|
|
|
|
56
|
|
|
|
|
|
56
|
|
Interest
expense
|
|
|
|
|
26
|
|
|
|
|
|
27
|
|
Interest
income
|
|
|
|
|
(3)
|
|
|
|
|
|
(2)
|
|
Income before income
taxes
|
|
|
|
|
198
|
|
|
|
|
|
149
|
|
Provision for income
taxes
|
|
|
|
|
76
|
|
|
|
|
|
59
|
|
Net income
|
|
|
|
$
|
122
|
|
|
|
|
$
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes
the elimination of transactions between
segments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables
summarize net revenues and adjusted EBITDA for the Company's
reportable segments for the three months ended March 31, 2015 and
2014 (for a description of adjustments by segment, see Table
7):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
Net
Revenues
|
|
Adjusted
EBITDA
|
|
Net
Revenues
|
|
Adjusted
EBITDA
|
|
Lodging
|
$
|
292
|
|
$
|
79
|
|
$
|
237
|
|
$
|
68
|
|
Vacation Exchange and
Rentals
|
|
369
|
|
|
104
|
|
|
379
|
|
|
95
|
|
Vacation
Ownership
|
|
617
|
|
|
130
|
|
|
593
|
|
|
115
|
|
Total Reportable
Segments
|
|
1,278
|
|
|
313
|
|
|
1,209
|
|
|
278
|
|
Corporate and
Other
|
|
(16)
|
|
|
(34)
|
|
|
(16)
|
|
|
(34)
|
|
Total Company
|
$
|
1,262
|
|
$
|
279
|
|
$
|
1,193
|
|
$
|
244
|
|
|
|
|
|
|
|
|
Table
2
|
Wyndham Worldwide
Corporation
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2015
|
|
2014
|
Net
revenues
|
|
|
|
|
|
|
|
Service and
membership fees
|
|
$
|
599
|
|
$
|
590
|
|
Vacation ownership
interest sales
|
|
|
336
|
|
|
303
|
|
Franchise
fees
|
|
|
147
|
|
|
127
|
|
Consumer
financing
|
|
|
104
|
|
|
105
|
|
Other
|
|
|
76
|
|
|
68
|
Net
revenues
|
|
|
1,262
|
|
|
1,193
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
Operating
|
|
|
564
|
|
|
534
|
|
Cost of vacation
ownership interests
|
|
|
33
|
|
|
39
|
|
Consumer financing
interest
|
|
|
18
|
|
|
17
|
|
Marketing and
reservation
|
|
|
195
|
|
|
181
|
|
General and
administrative
|
|
|
181
|
|
|
195
|
|
Restructuring
|
|
|
(1)
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
56
|
|
|
56
|
Total
expenses
|
|
|
1,046
|
|
|
1,022
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
216
|
|
|
171
|
Other income,
net
|
|
|
(5)
|
|
|
(3)
|
Interest
expense
|
|
|
26
|
|
|
27
|
Interest
income
|
|
|
(3)
|
|
|
(2)
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
198
|
|
|
149
|
Provision for income
taxes
|
|
|
76
|
|
|
59
|
Net
income
|
|
$
|
122
|
|
$
|
90
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.01
|
|
$
|
0.70
|
|
Diluted
|
|
|
1.00
|
|
|
0.69
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
|
|
121
|
|
|
128
|
|
Diluted
|
|
|
122
|
|
|
130
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: For a
description of adjustments to Net Income, see Table 8.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 of
2)
|
Wyndham Worldwide
Corporation
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
operating statistics are the drivers of our revenues and therefore
provide an enhanced understanding of our businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full
Year
|
Lodging
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Rooms
|
2015
|
|
667,400
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
|
646,900
|
|
650,200
|
|
655,300
|
|
660,800
|
|
N/A
|
|
|
|
|
|
2013
|
|
631,800
|
|
635,100
|
|
638,300
|
|
645,400
|
|
N/A
|
|
|
|
|
|
2012
|
|
609,300
|
|
608,300
|
|
618,100
|
|
627,400
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR
|
2015
|
$
|
32.84
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
$
|
32.30
|
$
|
40.11
|
$
|
43.71
|
$
|
34.06
|
$
|
37.57
|
|
|
|
|
|
2013
|
$
|
31.05
|
$
|
38.00
|
$
|
41.78
|
$
|
33.07
|
$
|
36.00
|
|
|
|
|
|
2012
|
$
|
29.73
|
$
|
37.23
|
$
|
40.39
|
$
|
31.86
|
$
|
34.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Exchange
and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of
Members (in 000s)
|
2015
|
|
3,822
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
|
3,727
|
|
3,748
|
|
3,777
|
|
3,808
|
|
3,765
|
|
|
|
|
|
2013
|
|
3,668
|
|
3,686
|
|
3,711
|
|
3,728
|
|
3,698
|
|
|
|
|
|
2012
|
|
3,684
|
|
3,670
|
|
3,672
|
|
3,670
|
|
3,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Revenue Per
Member
|
2015
|
$
|
194.06
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
$
|
200.78
|
$
|
179.17
|
$
|
171.77
|
$
|
157.24
|
$
|
177.12
|
|
|
|
|
|
2013
|
$
|
210.96
|
$
|
182.42
|
$
|
169.95
|
$
|
161.21
|
$
|
181.02
|
|
|
|
|
|
2012
|
$
|
204.56
|
$
|
177.07
|
$
|
171.14
|
$
|
165.86
|
$
|
179.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Rental
Transactions (in 000s) (a)
|
2015
|
|
459
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
|
429
|
|
376
|
|
455
|
|
293
|
|
1,552
|
|
|
|
|
|
2013
|
|
423
|
|
355
|
|
433
|
|
273
|
|
1,483
|
|
|
|
|
|
2012
|
|
418
|
|
325
|
|
390
|
|
259
|
|
1,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Net Price Per
Vacation Rental(a)
|
2015
|
$
|
361.20
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
$
|
410.04
|
$
|
577.13
|
$
|
727.40
|
$
|
492.25
|
$
|
558.95
|
|
|
|
|
|
2013
|
$
|
392.64
|
$
|
540.38
|
$
|
677.81
|
$
|
506.62
|
$
|
532.11
|
|
|
|
|
|
2012
|
$
|
379.40
|
$
|
524.40
|
$
|
635.44
|
$
|
484.69
|
$
|
504.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Vacation
Ownership Interest (VOI) Sales (in 000s) (b)
|
2015
|
$
|
390,000
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
$
|
410,000
|
$
|
496,000
|
$
|
513,000
|
$
|
470,000
|
$
|
1,889,000
|
|
|
|
|
|
2013
|
$
|
384,000
|
$
|
481,000
|
$
|
536,000
|
$
|
488,000
|
$
|
1,889,000
|
|
|
|
|
|
2012
|
$
|
384,000
|
$
|
460,000
|
$
|
502,000
|
$
|
435,000
|
$
|
1,781,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tours (in 000s)
(c)
|
2015
|
|
168
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
|
170
|
|
208
|
|
225
|
|
191
|
|
794
|
|
|
|
|
|
2013
|
|
163
|
|
206
|
|
225
|
|
195
|
|
789
|
|
|
|
|
|
2012
|
|
148
|
|
186
|
|
207
|
|
183
|
|
724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume Per Guest
(VPG) (c)
|
2015
|
$
|
2,177
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
$
|
2,272
|
$
|
2,280
|
$
|
2,158
|
$
|
2,336
|
$
|
2,257
|
|
|
|
|
|
2013
|
$
|
2,211
|
$
|
2,256
|
$
|
2,278
|
$
|
2,370
|
$
|
2,281
|
|
|
|
|
|
2012
|
$
|
2,414
|
$
|
2,361
|
$
|
2,315
|
$
|
2,225
|
$
|
2,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Full
year amounts may not add across due to rounding.
|
(a)
|
Includes the impact
of acquisitions/dispositions from the acquisition/disposition dates
forward. Therefore, the operating statistics are not presented on a
comparable basis.
|
(b)
|
Includes Gross VOI
sales under the Company's Wyndham Asset Affiliate Model (WAAM)
Just-in-Time beginning in the second quarter of 2012 (see Table 9
for a reconciliation of Gross VOI sales to vacation ownership
interest sales).
|
(c)
|
Includes the impact
of WAAM Just-in-Time related tours beginning in the second quarter
of 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full
Year
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Properties
|
2015
|
|
7,670
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
|
7,500
|
|
7,540
|
|
7,590
|
|
7,650
|
|
N/A
|
|
|
|
|
|
2013
|
|
7,380
|
|
7,410
|
|
7,440
|
|
7,490
|
|
N/A
|
|
|
|
|
|
2012
|
|
7,150
|
|
7,170
|
|
7,260
|
|
7,340
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan
Losses (in 000s)
(*)
|
2015
|
$
|
46,000
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
2014
|
$
|
60,000
|
$
|
70,000
|
$
|
70,000
|
$
|
60,000
|
$
|
260,000
|
|
|
|
|
|
2013
|
$
|
84,000
|
$
|
90,000
|
$
|
102,000
|
$
|
73,000
|
$
|
349,000
|
|
|
|
|
|
2012
|
$
|
96,000
|
$
|
100,000
|
$
|
124,000
|
$
|
89,000
|
$
|
409,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Full
year amounts may not add across due to rounding.
|
(*)
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 of
2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
OPERATING
STATISTICS
|
|
GLOSSARY OF
TERMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Rooms:
Represents the number of rooms at lodging properties at the end of
the period which are either (i) under franchise and/or management
agreements, or company owned and (ii) properties under affiliation
agreements for which the Company receives a fee for reservation
and/or other services provided.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 paid annual membership dues as of the end of the period or who
are within the allowed grace period. For additional fees, such
participants are entitled to exchange intervals for intervals at
other properties affiliated with the Company's vacation exchange
business. In addition, certain participants may exchange intervals
for other leisure-related services and products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 during the period in connection with customers booking
their vacation rental stays through the Company. 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 during the period divided by the number of
vacation rental transactions during the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Vacation
Ownership Interest Sales: Represents sales of vacation ownership
interest (VOIs), including WAAM 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tours: Represents the
number of tours taken by guests in our efforts to sell
VOIs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume per Guest
(VPG): Represents Gross VOI sales (excluding tele-sales upgrades,
which are non-tour upgrade sales) divided by the number of
tours. The Company has 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 2012-2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency:
Represents a comparison eliminating the effects of foreign exchange
rate fluctuations between periods (foreign currency
translation).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency-Neutral:
Represents a comparison eliminating the effects of foreign exchange
rate fluctuations between periods (foreign currency translation)
and the impact caused by any foreign exchange related activities
(i.e., hedges, balance sheet remeasurements and/or
adjustments).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
REVENUE DETAIL BY
REPORTABLE SEGMENT
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and
Franchise Fees
|
|
$
|
74
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
$
|
68
|
$
|
88
|
$
|
100
|
$
|
83
|
$
|
339
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
|
96
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
76
|
|
101
|
|
117
|
|
91
|
|
385
|
|
Hotel Management
Reimbursable Revenues (b)
|
|
61
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
37
|
|
39
|
|
39
|
|
39
|
|
154
|
|
Intersegment
Trademark Fees
|
|
|
12
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
9
|
|
11
|
|
11
|
|
10
|
|
41
|
|
Owned Hotel
Revenues
|
|
|
25
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
24
|
|
20
|
|
18
|
|
20
|
|
81
|
|
Ancillary Revenues
(c)
|
|
|
24
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
23
|
|
24
|
|
30
|
|
24
|
|
101
|
|
Total
Lodging
|
|
|
292
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
237
|
|
283
|
|
315
|
|
267
|
|
1,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Exchange
and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
|
|
185
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
187
|
|
168
|
|
162
|
|
150
|
|
667
|
|
Rental
Revenues
|
|
|
166
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
176
|
|
217
|
|
331
|
|
144
|
|
868
|
|
Ancillary Revenues
(d)
|
|
|
18
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
16
|
|
17
|
|
19
|
|
17
|
|
69
|
|
Total Vacation
Exchange and Rentals
|
|
369
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
379
|
|
402
|
|
512
|
|
311
|
|
1,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership
Interest Sales
|
|
|
336
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
303
|
|
382
|
|
415
|
|
385
|
|
1,485
|
|
Consumer
Financing
|
|
|
104
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
105
|
|
106
|
|
108
|
|
108
|
|
427
|
|
Property Management
Fees and Reimbursable Revenues
|
|
153
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
143
|
|
145
|
|
150
|
|
142
|
|
581
|
|
WAAM Fee-for-Service
Commissions
|
|
12
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
33
|
|
30
|
|
18
|
|
16
|
|
98
|
|
Ancillary Revenues
(e)
|
|
|
12
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
9
|
|
10
|
|
13
|
|
17
|
|
47
|
|
Total Vacation
Ownership
|
|
|
617
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
593
|
|
673
|
|
704
|
|
668
|
|
2,638
|
Total Reportable
Segments
|
|
$
|
1,278
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
$
|
1,209
|
$
|
1,358
|
$
|
1,531
|
$
|
1,246
|
$
|
5,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
Lodging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and
Franchise Fees
|
|
$
|
64
|
$
|
79
|
$
|
91
|
$
|
75
|
$
|
309
|
|
$
|
62
|
$
|
80
|
$
|
88
|
$
|
71
|
$
|
301
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
|
73
|
|
92
|
|
118
|
|
83
|
|
365
|
|
|
68
|
|
99
|
|
98
|
|
80
|
|
345
|
|
Hotel Management
Reimbursable Revenues (b)
|
|
25
|
|
38
|
|
37
|
|
35
|
|
135
|
|
|
21
|
|
22
|
|
25
|
|
23
|
|
91
|
|
Intersegment
Trademark Fees
|
|
|
8
|
|
10
|
|
11
|
|
10
|
|
39
|
|
|
8
|
|
9
|
|
9
|
|
8
|
|
34
|
|
Owned Hotel
Revenues
|
|
|
26
|
|
20
|
|
18
|
|
19
|
|
84
|
|
|
8
|
|
8
|
|
7
|
|
18
|
|
41
|
|
Ancillary Revenues
(c)
|
|
|
26
|
|
23
|
|
22
|
|
23
|
|
95
|
|
|
18
|
|
15
|
|
22
|
|
23
|
|
78
|
|
Total
Lodging
|
|
|
222
|
|
262
|
|
297
|
|
245
|
|
1,027
|
|
|
185
|
|
233
|
|
249
|
|
223
|
|
890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Exchange
and Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
|
|
193
|
|
168
|
|
158
|
|
150
|
|
669
|
|
|
188
|
|
162
|
|
157
|
|
153
|
|
660
|
|
Rental
Revenues
|
|
|
166
|
|
192
|
|
293
|
|
138
|
|
789
|
|
|
159
|
|
170
|
|
248
|
|
125
|
|
702
|
|
Ancillary Revenues
(d)
|
|
|
15
|
|
16
|
|
19
|
|
17
|
|
68
|
|
|
14
|
|
16
|
|
15
|
|
15
|
|
60
|
|
Total Vacation
Exchange and Rentals
|
|
374
|
|
376
|
|
470
|
|
305
|
|
1,526
|
|
|
361
|
|
348
|
|
420
|
|
293
|
|
1,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership
Interest Sales
|
|
|
263
|
|
347
|
|
384
|
|
384
|
|
1,379
|
|
|
271
|
|
342
|
|
373
|
|
337
|
|
1,323
|
|
Consumer
Financing
|
|
|
105
|
|
106
|
|
107
|
|
108
|
|
426
|
|
|
103
|
|
102
|
|
106
|
|
110
|
|
421
|
|
Property Management
Fees
|
|
|
146
|
|
141
|
|
143
|
|
137
|
|
567
|
|
|
110
|
|
108
|
|
117
|
|
125
|
|
460
|
|
WAAM Fee-for-Service
Commissions
|
|
24
|
|
30
|
|
33
|
|
20
|
|
107
|
|
|
12
|
|
11
|
|
4
|
|
6
|
|
33
|
|
Ancillary Revenues
(e)
|
|
|
11
|
|
6
|
|
10
|
|
9
|
|
36
|
|
|
5
|
|
7
|
|
8
|
|
12
|
|
32
|
|
Total Vacation
Ownership
|
|
|
549
|
|
630
|
|
677
|
|
658
|
|
2,515
|
|
|
501
|
|
570
|
|
608
|
|
590
|
|
2,269
|
Total Reportable
Segments
|
|
$
|
1,145
|
$
|
1,268
|
$
|
1,444
|
$
|
1,208
|
$
|
5,068
|
|
$
|
1,047
|
$
|
1,151
|
$
|
1,277
|
$
|
1,106
|
$
|
4,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Full
year amounts may not add across due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Marketing and
reservation revenues represent fees the Company receives 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 the Company receives relating to
its loyalty program.
|
(b)
|
Primarily represents
payroll costs in the hotel management business that the Company
pays on behalf of property owners and for which it is reimbursed by
the property owners. During 2014, reimbursable revenues of $2
million in each of Q1, Q2 and Q3 and $1 million in Q4 which were
charged to the Company's vacation ownership business and were
eliminated in consolidation. During 2013, such amounts include
reimbursable revenues of $1 million, $3 million and $2 million, in
Q2, Q3 and Q4 respectively, which were charged to the Company's
vacation ownership business and were eliminated in
consolidation.
|
(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 operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
|
Wyndham Worldwide
Corporation
|
SCHEDULE OF
DEBT
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized vacation
ownership debt (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term notes
|
$
|
2,090
|
|
$
|
1,962
|
|
$
|
1,670
|
|
$
|
1,600
|
|
$
|
1,823
|
Bank conduit facility
(b)
|
|
98
|
|
|
203
|
|
|
271
|
|
|
291
|
|
|
156
|
Total securitized
vacation ownership debt (c)
|
|
2,188
|
|
|
2,165
|
|
|
1,941
|
|
|
1,891
|
|
|
1,979
|
Less: Current portion
of securitized vacation ownership debt
|
|
217
|
|
|
214
|
|
|
192
|
|
|
187
|
|
|
192
|
Long-term securitized
vacation ownership debt
|
$
|
1,971
|
|
$
|
1,951
|
|
$
|
1,749
|
|
$
|
1,704
|
|
$
|
1,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revolving credit
facility (due July 2020) (d)
|
$
|
14
|
|
$
|
25
|
|
$
|
18
|
|
$
|
16
|
|
$
|
10
|
Commercial paper
(e)
|
|
|
|
|
346
|
|
|
189
|
|
|
237
|
|
|
107
|
|
|
184
|
$315 million 6.00%
senior unsecured notes (due December 2016)
(f)
|
|
317
|
|
|
317
|
|
|
317
|
|
|
318
|
|
|
318
|
$300 million 2.95%
senior unsecured notes (due March 2017)
|
|
299
|
|
|
299
|
|
|
299
|
|
|
299
|
|
|
299
|
$14 million 5.75%
senior unsecured notes (due February 2018)
|
|
14
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
14
|
$450 million 2.50%
senior unsecured notes (due March 2018)
|
|
448
|
|
|
448
|
|
|
448
|
|
|
448
|
|
|
447
|
$40 million 7.375%
senior unsecured notes (due March 2020)
|
|
40
|
|
|
40
|
|
|
40
|
|
|
40
|
|
|
40
|
$250 million 5.625%
senior unsecured notes (due March 2021)
|
|
247
|
|
|
247
|
|
|
247
|
|
|
246
|
|
|
246
|
$650 million 4.25%
senior unsecured notes (due March 2022) (g)
|
|
650
|
|
|
648
|
|
|
646
|
|
|
646
|
|
|
645
|
$400 million 3.90%
senior unsecured notes (due March 2023) (h)
|
|
418
|
|
|
410
|
|
|
401
|
|
|
403
|
|
|
395
|
Capital
leases
|
|
161
|
|
|
170
|
|
|
175
|
|
|
186
|
|
|
188
|
Other
|
|
70
|
|
|
81
|
|
|
80
|
|
|
99
|
|
|
100
|
Total long-term
debt
|
|
3,024
|
|
|
2,888
|
|
|
2,922
|
|
|
2,822
|
|
|
2,886
|
Less: Current portion
of long-term debt
|
|
53
|
|
|
47
|
|
|
49
|
|
|
50
|
|
|
52
|
Long-term
debt
|
$
|
2,971
|
|
$
|
2,841
|
|
$
|
2,873
|
|
$
|
2,772
|
|
$
|
2,834
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The Company's
vacation ownership contract receivables are securitized through
bankruptcy-remote special purpose entities ("SPEs") that are
consolidated within 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 August 2016 and borrowing capacity of $650 million. As of
March 31, 2015, this facility had a remaining borrowing capacity of
$552 million.
|
(c)
|
This debt is
collateralized by $2,609 million, $2,629 million, $2,326 million,
$2,287 million and $2,328 million of underlying vacation ownership
contract receivables and related assets as of March 31, 2015,
December 31, 2014, September 30, 2014, June 30, 2014 and March 31,
2014.
|
(d)
|
Represents a $1.5
billion revolving credit facility that expires in July 2020. As of
March 31, 2015, the Company had $1 million of outstanding letters
of credit. After considering outstanding commercial paper
borrowings of $346 million, the remaining borrowing capacity was
$1.1 billion as of March 31, 2015.
|
(e)
|
Represents commercial
paper programs of $1.25 billion with a remaining borrowing capacity
of $904 million, as of March 31, 2015.
|
(f)
|
Includes unamortized
gains from the settlement of a derivative in the amount of $2
million as of March 31, 2015, December 31, 2014 and September 30,
2014 and $3 million as of June 30, 2014 and March 31,
2014.
|
(g)
|
Includes a $4 million
and $3 million increase in the carrying value resulting from a fair
value hedge derivative as of March 31, 2015 and December 31, 2014,
respectively.
|
(h)
|
Includes a $21
million and $13 million increase in the carrying value resulting
from a fair value hedge derivative as of March 31, 2015 and
December 31, 2014, respectively.
|
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
BRAND SYSTEM
DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the
Three Months Ended March 31, 2015
|
Brand
|
Number of
Properties
|
Number of
Rooms
|
Average
Occupancy Rate
|
Average Daily
Rate (ADR)
|
Average
Revenue
Per Available
Room (RevPAR)
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
Super
8
|
2,519
|
161,538
|
50.9%
|
$48.46
|
$24.66
|
|
|
|
|
|
|
|
Days
Inn
|
1,784
|
144,231
|
45.2%
|
$64.08
|
$28.98
|
|
|
|
|
|
|
|
Ramada
|
840
|
116,409
|
51.5%
|
$74.72
|
$38.49
|
|
|
|
|
|
|
|
Howard
Johnson
|
419
|
45,588
|
44.1%
|
$62.50
|
$27.59
|
|
|
|
|
|
|
|
Wyndham Hotels and
Resorts
|
201
|
44,042
|
56.0%
|
$112.18
|
$62.85
|
|
|
|
|
|
|
|
Travelodge
|
422
|
31,025
|
45.5%
|
$62.05
|
$28.24
|
|
|
|
|
|
|
|
Baymont
|
373
|
30,012
|
47.0%
|
$65.21
|
$30.63
|
|
|
|
|
|
|
|
Knights
Inn
|
392
|
24,476
|
44.1%
|
$45.16
|
$19.91
|
|
|
|
|
|
|
|
Microtel Inns &
Suites by Wyndham
|
325
|
23,302
|
53.5%
|
$66.83
|
$35.73
|
|
|
|
|
|
|
|
TRYP by
Wyndham
|
122
|
17,455
|
51.3%
|
$76.01
|
$39.02
|
|
|
|
|
|
|
|
Wingate by
Wyndham
|
153
|
13,929
|
58.5%
|
$85.97
|
$50.33
|
|
|
|
|
|
|
|
Hawthorn Suites by
Wyndham
|
99
|
9,825
|
64.8%
|
$80.39
|
$52.11
|
|
|
|
|
|
|
|
Dolce
|
24
|
5,530
|
54.4%
|
$131.50
|
$71.47
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,673
|
667,362
|
49.4%
|
$66.43
|
$32.84
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham Vacation
Ownership resorts
|
210
|
23,965
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
Total Wyndham
Worldwide
|
7,883
|
691,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the
Three Months Ended March 31, 2014
|
Brand
|
Number of
Properties
|
Number of
Rooms
|
Average
Occupancy Rate
|
Average Daily
Rate (ADR)
|
Average
Revenue
Per Available
Room (RevPAR)
|
|
|
|
|
|
|
|
Lodging
|
|
|
|
|
|
Super
8
|
2,413
|
154,270
|
51.5%
|
$48.27
|
$24.88
|
|
|
|
|
|
|
|
Days
Inn
|
1,812
|
146,643
|
44.6%
|
$61.92
|
$27.61
|
|
|
|
|
|
|
|
Ramada
|
826
|
113,304
|
50.2%
|
$79.47
|
$39.87
|
|
|
|
|
|
|
|
Howard
Johnson
|
449
|
47,303
|
43.6%
|
$61.87
|
$26.98
|
|
|
|
|
|
|
|
Wyndham Hotels and
Resorts
|
170
|
38,565
|
55.3%
|
$112.69
|
$62.30
|
|
|
|
|
|
|
|
Travelodge
|
431
|
31,833
|
44.7%
|
$61.78
|
$27.61
|
|
|
|
|
|
|
|
Baymont
|
336
|
27,504
|
46.9%
|
$61.60
|
$28.89
|
|
|
|
|
|
|
|
Knights
Inn
|
374
|
22,792
|
40.8%
|
$44.04
|
$17.97
|
|
|
|
|
|
|
|
Microtel Inns &
Suites by Wyndham
|
313
|
22,425
|
53.7%
|
$62.45
|
$33.51
|
|
|
|
|
|
|
|
TRYP by
Wyndham
|
114
|
16,283
|
51.4%
|
$85.87
|
$44.11
|
|
|
|
|
|
|
|
Wingate by
Wyndham
|
161
|
14,722
|
59.1%
|
$83.30
|
$49.22
|
|
|
|
|
|
|
|
Hawthorn Suites by
Wyndham
|
96
|
9,609
|
60.9%
|
$76.01
|
$46.33
|
|
|
|
|
|
|
|
Dream
|
5
|
989
|
73.8%
|
$189.89
|
$140.22
|
|
|
|
|
|
|
|
Night
|
3
|
630
|
59.8%
|
$114.63
|
$68.51
|
|
|
|
|
|
|
|
|
Total
Lodging
|
7,503
|
646,872
|
48.8%
|
$66.14
|
$32.30
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham Vacation
Ownership resorts
|
192
|
23,530
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
Total Wyndham
Worldwide
|
7,695
|
670,402
|
|
|
|
_______________
|
|
|
|
|
|
NOTE: A
glossary of terms is included in Table 3 (2 of 2); RevPAR may not
recalculate by multiplying average occupancy rate by ADR due to
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 of
2)
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2015
|
|
Net
Revenues
|
|
Reported
EBITDA
|
|
Acquisition
Costs (b)
|
|
Restructuring
Costs (c)
|
|
Adjusted
EBITDA
|
Lodging
|
|
$
|
292
|
|
$
|
76
|
|
$
|
3
|
|
$
|
-
|
|
$
|
79
|
Vacation Exchange and
Rentals
|
|
|
369
|
|
|
105
|
|
|
-
|
|
|
(1)
|
|
|
104
|
Vacation
Ownership
|
|
|
617
|
|
|
130
|
|
|
-
|
|
|
-
|
|
|
130
|
Total Reportable
Segments
|
|
|
1,278
|
|
|
311
|
|
|
3
|
|
|
(1)
|
|
|
313
|
Corporate and Other
(a)
|
|
|
(16)
|
|
|
(34)
|
|
|
-
|
|
|
-
|
|
|
(34)
|
Total
Company
|
|
$
|
1,262
|
|
$
|
277
|
|
$
|
3
|
|
$
|
(1)
|
|
$
|
279
|
________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
elimination of transactions between segments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Relates to costs
incurred in connection with the acquisition of Dolce Hotels and
Resorts (January 2015).
|
|
|
|
|
|
|
(c)
|
Relates to the
reversal of a portion of the restructuring reserve established
during the fourth quarter of 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 of
2)
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2014
|
Net
Revenues
|
|
Reported
EBITDA
|
|
Executive
Departure
Costs
|
|
Venezuela
Currency
Devaluation (b)
|
|
VAT
Adjustment (c)
|
|
Restructuring
Costs (d)
|
|
Loss on Sale
and Asset
Impairments (e)
|
|
Legacy
Adjustments (f)
|
|
Adjusted
EBITDA
|
Lodging
|
|
$
|
237
|
|
$
|
64
|
|
$
|
4
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
68
|
Vacation Exchange and
Rentals
|
|
|
379
|
|
|
85
|
|
|
-
|
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
95
|
Vacation
Ownership
|
|
|
593
|
|
|
115
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
115
|
Total Reportable
Segments
|
|
|
1,209
|
|
|
264
|
|
|
4
|
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
278
|
Corporate and Other
(a)
|
|
|
(16)
|
|
|
(34)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(34)
|
Total
Company
|
|
$
|
1,193
|
|
$
|
230
|
|
$
|
4
|
|
$
|
10
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$
|
283
|
|
$
|
87
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
87
|
Vacation Exchange and
Rentals
|
|
|
402
|
|
|
89
|
|
|
-
|
|
|
-
|
|
|
(2)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
87
|
Vacation
Ownership
|
|
|
673
|
|
|
185
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
185
|
Total Reportable
Segments
|
|
|
1,358
|
|
|
361
|
|
|
-
|
|
|
-
|
|
|
(2)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
359
|
Corporate and Other
(a)
|
|
|
(15)
|
|
|
(35)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(35)
|
Total
Company
|
|
$
|
1,343
|
|
$
|
326
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(2)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$
|
315
|
|
$
|
100
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1)
|
|
$
|
8
|
|
$
|
-
|
|
$
|
107
|
Vacation Exchange and
Rentals
|
|
|
512
|
|
|
159
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
159
|
Vacation
Ownership
|
|
|
704
|
|
|
188
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
188
|
Total Reportable
Segments
|
|
|
1,531
|
|
|
447
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1)
|
|
|
8
|
|
|
-
|
|
|
454
|
Corporate and Other
(a)
|
|
|
(17)
|
|
|
(36)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(36)
|
Total
Company
|
|
$
|
1,514
|
|
$
|
411
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1)
|
|
$
|
8
|
|
$
|
-
|
|
$
|
418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$
|
267
|
|
$
|
77
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
2
|
|
$
|
-
|
|
$
|
-
|
|
$
|
79
|
Vacation Exchange and
Rentals
|
|
|
311
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10
|
|
|
27
|
|
|
-
|
|
|
39
|
Vacation
Ownership
|
|
|
668
|
|
|
172
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
172
|
Total Reportable
Segments
|
|
|
1,246
|
|
|
251
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12
|
|
|
27
|
|
|
-
|
|
|
290
|
Corporate and Other
(a)
|
|
|
(15)
|
|
|
(36)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2)
|
|
|
(38)
|
Total
Company
|
|
$
|
1,231
|
|
$
|
215
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
12
|
|
$
|
27
|
|
$
|
(2)
|
|
$
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lodging
|
|
$
|
1,101
|
|
$
|
327
|
|
$
|
4
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1
|
|
$
|
8
|
|
$
|
-
|
|
$
|
340
|
Vacation Exchange and
Rentals
|
|
|
1,604
|
|
|
335
|
|
|
-
|
|
|
10
|
|
|
(2)
|
|
|
10
|
|
|
27
|
|
|
-
|
|
|
380
|
Vacation
Ownership
|
|
|
2,638
|
|
|
660
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
660
|
Total Reportable
Segments
|
|
|
5,343
|
|
|
1,322
|
|
|
4
|
|
|
10
|
|
|
(2)
|
|
|
11
|
|
|
35
|
|
|
-
|
|
|
1,380
|
Corporate and Other
(a)
|
|
|
(62)
|
|
|
(141)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1)
|
|
|
(142)
|
Total
Company
|
|
$
|
5,281
|
|
$
|
1,181
|
|
$
|
4
|
|
$
|
10
|
|
$
|
(2)
|
|
$
|
11
|
|
$
|
35
|
|
$
|
(1)
|
|
$
|
1,238
|
________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The sum
of the quarters may not agree to the twelve months ended December
31, 2014 due to rounding.
|
(a)
|
Includes the
elimination of transactions between segments.
|
(b)
|
Represents the
devaluation of the official exchange rate of Venezuela.
|
(c)
|
Reversal of a reserve
for value-added taxes.
|
(d)
|
Relates to (i) the
reversal of a portion of a restructuring reserve established during
the fourth quarter of 2013 and (ii) costs incurred as a result of
various organizational realignment initiatives by the
Company.
|
(e)
|
Relates to (i) a loss
on the sale of a business and a write-down of an equity investment
at the Company's vacation exchange and rentals business and (ii) a
write-down of an investment in a joint venture at the Company's
lodging business.
|
(f)
|
Relates to the net
benefit from the resolution of and adjustment to certain contingent
liabilities and assets resulting from our separation from
Cendant.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 of
2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
NON-GAAP FINANCIAL
INFORMATION
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Acquisition
Costs (a)
|
|
Restructuring
Costs (c)
|
|
As Adjusted
non-GAAP
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and
membership fees
|
|
$
|
599
|
|
$
|
|
|
$
|
|
|
$
|
599
|
|
Vacation ownership
interest sales
|
|
|
336
|
|
|
|
|
|
|
|
|
336
|
|
Franchise
fees
|
|
|
147
|
|
|
|
|
|
|
|
|
147
|
|
Consumer
financing
|
|
|
104
|
|
|
|
|
|
|
|
|
104
|
|
Other
|
|
|
76
|
|
|
|
|
|
|
|
|
76
|
Net
revenues
|
|
|
1,262
|
|
|
-
|
|
|
-
|
|
|
1,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
564
|
|
|
(3)
|
|
|
|
|
|
561
|
|
Cost of vacation
ownership interests
|
|
|
33
|
|
|
|
|
|
|
|
|
33
|
|
Consumer financing
interest
|
|
|
18
|
|
|
|
|
|
|
|
|
18
|
|
Marketing and
reservation
|
|
|
195
|
|
|
|
|
|
|
|
|
195
|
|
General and
administrative
|
|
|
181
|
|
|
|
|
|
|
|
|
181
|
|
Restructuring
|
|
|
(1)
|
|
|
|
|
|
1
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
56
|
|
|
|
|
|
|
|
|
56
|
Total
expenses
|
|
|
1,046
|
|
|
(3)
|
|
|
1
|
|
|
1,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
216
|
|
|
3
|
|
|
(1)
|
|
|
218
|
Other income,
net
|
|
|
(5)
|
|
|
|
|
|
|
|
|
(5)
|
Interest
expense
|
|
|
26
|
|
|
|
|
|
|
|
|
26
|
Interest
income
|
|
|
(3)
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
198
|
|
|
3
|
|
|
(1)
|
|
|
200
|
Provision for income
taxes
|
|
|
76
|
|
|
(1)
|
(b)
|
|
(1)
|
(d)
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
122
|
|
$
|
4
|
|
$
|
-
|
|
$
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.01
|
|
$
|
0.03
|
|
$
|
-
|
|
$
|
1.04
|
|
Diluted
|
|
|
1.00
|
|
|
0.03
|
|
|
-
|
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
121
|
|
|
121
|
|
|
121
|
|
|
121
|
|
Diluted
|
|
|
122
|
|
|
122
|
|
|
122
|
|
|
122
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
The above table
reconciles certain non-GAAP financial measures. The
presentation of these adjustments is intended to permit the
comparison of particular adjustments as they appear in the line
items of the income statement in order to assist investors'
understanding of the overall impact of such adjustments. This
non-GAAP reconciliation table should not be considered a substitute
for, nor superior to, financial results and measures determined or
calculated in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Relates to costs
incurred in connection with the acquisition of Dolce Hotels and
Resorts (January 2015) at the Company's lodging
business.
|
(b)
|
Relates to (i) the
tax effect of the adjustment and (ii) a valuation allowance
established in connection with the acquisition.
|
(c)
|
Relates to the
reversal of a portion of the restructuring reserve established
during the fourth quarter of 2014 at the Company's vacation
exchange and rentals business.
|
(d)
|
Relates to the tax
effect of the adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 of
2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
NON-GAAP FINANCIAL
INFORMATION
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Executive
Departure
Costs (a)
|
|
Venezuela
Currency
Devaluation (c)
|
|
As Adjusted
non-GAAP
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees and
membership
|
|
$
|
590
|
|
$
|
|
|
$
|
|
|
$
|
590
|
|
Vacation ownership
interest sales
|
|
|
303
|
|
|
|
|
|
|
|
|
303
|
|
Franchise
fees
|
|
|
127
|
|
|
|
|
|
|
|
|
127
|
|
Consumer
financing
|
|
|
105
|
|
|
|
|
|
|
|
|
105
|
|
Other
|
|
|
68
|
|
|
|
|
|
|
|
|
68
|
Net
revenues
|
|
|
1,193
|
|
|
-
|
|
|
-
|
|
|
1,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
534
|
|
|
|
|
|
(10)
|
|
|
524
|
|
Cost of vacation
ownership interests
|
|
|
39
|
|
|
|
|
|
|
|
|
39
|
|
Consumer financing
interest
|
|
|
17
|
|
|
|
|
|
|
|
|
17
|
|
Marketing and
reservation
|
|
|
181
|
|
|
|
|
|
|
|
|
181
|
|
General and
administrative
|
|
|
195
|
|
|
(4)
|
|
|
|
|
|
191
|
|
Depreciation and
amortization
|
|
|
56
|
|
|
|
|
|
|
|
|
56
|
Total
expenses
|
|
|
1,022
|
|
|
(4)
|
|
|
(10)
|
|
|
1,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
171
|
|
|
4
|
|
|
10
|
|
|
185
|
Other income,
net
|
|
|
(3)
|
|
|
|
|
|
|
|
|
(3)
|
Interest
expense
|
|
|
27
|
|
|
|
|
|
|
|
|
27
|
Interest
income
|
|
|
(2)
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
149
|
|
|
4
|
|
|
10
|
|
|
163
|
Provision for income
taxes
|
|
|
59
|
|
|
1
|
(b)
|
|
1
|
(b)
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
90
|
|
$
|
3
|
|
$
|
9
|
|
$
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.70
|
|
$
|
0.02
|
|
$
|
0.07
|
|
$
|
0.80
|
|
Diluted
|
|
|
0.69
|
|
|
0.02
|
|
|
0.07
|
|
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
128
|
|
|
128
|
|
|
128
|
|
|
128
|
|
Diluted
|
|
|
130
|
|
|
130
|
|
|
130
|
|
|
130
|
__________
|
|
|
|
|
|
|
|
|
|
|
|
|
The above table
reconciles certain non-GAAP financial measures. The
presentation of these adjustments is intended to permit the
comparison of particular adjustments as they appear in the line
items of the income statement in order to assist investors'
understanding of the overall impact of such adjustments. This
non-GAAP reconciliation table should not be considered a substitute
for, nor superior to, financial results and measures determined or
calculated in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add due to rounding.
|
|
|
|
(a)
|
Relates to costs
associated with an executive's departure at the Company's lodging
business.
|
(b)
|
Relates to the tax
effect of the adjustment.
|
|
|
|
(c)
|
Represents the
devaluation of the official exchange rate of Venezuela at the
Company's vacation exchange and rental business.
|
|
|
|
|
|
|
|
|
|
|
|
Table
9
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATIONS AND FINANCIAL INFORMATION
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
|
We define free cash
flow to be net cash provided by operating activities less property
and equipment additions which we also refer to as capital
expenditures.
|
|
We believe free cash
flow to be a useful operating performance measure to evaluate the
ability of our operations to generate cash for uses other than
capital expenditures and, after debt service and other obligations,
our ability to grow our business through acquisitions, development
advances and equity investments, as well as our ability to return
cash to shareholders through dividends and share repurchases. A
limitation of using free cash flow versus the GAAP measure of net
cash provided by operating activities, net cash used in investing
activities and net cash used in financing activities as a means for
evaluating Wyndham Worldwide is that free cash flow does not
represent the total cash movement for the period as detailed in the
consolidated statement of cash flows.
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
253
|
|
|
$
|
315
|
|
|
|
|
Less: Property and
equipment additions
|
|
|
(56)
|
|
|
|
(46)
|
|
|
|
|
Free cash
flow
|
|
$
|
197
|
|
|
$
|
269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales
(a)
|
|
$
|
390
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Less: Sales under
WAAM Fee-for-Service
|
|
|
(21)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Gross VOI sales, net
of WAAM Fee-for-Service sales
|
|
|
369
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Less: Loan loss
provision
|
|
|
(46)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Plus: Impact of
percentage-of-completion accounting
|
|
|
13
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Vacation ownership
interest sales (a)
|
|
$
|
336
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales
(a)
|
|
$
|
410
|
$
|
496
|
$
|
513
|
$
|
470
|
$
|
1,889
|
Less: Sales under
WAAM Fee-for-Service
|
|
|
(44)
|
|
(40)
|
|
(27)
|
|
(21)
|
|
(132)
|
Gross VOI sales, net
of WAAM Fee-for-Service sales
|
|
|
366
|
|
456
|
|
486
|
|
449
|
|
1,757
|
Less: Loan loss
provision
|
|
|
(60)
|
|
(70)
|
|
(70)
|
|
(60)
|
|
(260)
|
Less: Impact of
percentage-of-completion accounting
|
|
|
(3)
|
|
(4)
|
|
(1)
|
|
(4)
|
|
(12)
|
Vacation ownership
interest sales (a)
|
|
$
|
303
|
$
|
382
|
$
|
415
|
$
|
385
|
$
|
1,485
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales
(a)
|
|
$
|
384
|
$
|
481
|
$
|
536
|
$
|
488
|
$
|
1,889
|
Less: Sales under
WAAM Fee-for-Service
|
|
|
(36)
|
|
(44)
|
|
(51)
|
|
(29)
|
|
(160)
|
Gross VOI sales, net
of WAAM Fee-for-Service sales
|
|
|
347
|
|
437
|
|
486
|
|
459
|
|
1,729
|
Less: Loan loss
provision
|
|
|
(84)
|
|
(90)
|
|
(102)
|
|
(73)
|
|
(349)
|
Less: Impact of
percentage-of-completion accounting
|
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
(1)
|
Vacation ownership
interest sales (a)
|
|
$
|
263
|
$
|
347
|
$
|
384
|
$
|
384
|
$
|
1,379
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI sales
(a)
|
|
$
|
384
|
$
|
460
|
$
|
502
|
$
|
435
|
$
|
1,781
|
Less: Sales under
WAAM Fee-for-Service
|
|
|
(17)
|
|
(18)
|
|
(5)
|
|
(10)
|
|
(49)
|
Gross VOI sales, net
of WAAM Fee-for-Service sales
|
|
|
367
|
|
442
|
|
497
|
|
426
|
|
1,732
|
Less: Loan loss
provision
|
|
|
(96)
|
|
(100)
|
|
(124)
|
|
(89)
|
|
(409)
|
Vacation ownership
interest sales (a)
|
|
$
|
271
|
$
|
342
|
$
|
373
|
$
|
337
|
$
|
1,323
|
_____________
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes VOI sales under WAAM Just-in-Time beginning in the second
quarter of 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
includes primarily tele-sales upgrades and other non-tour revenues,
which are excluded from Gross VOI sales in the Company's VPG
calculation (see Table 3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
$
|
24
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
2014
|
|
$
|
25
|
$
|
21
|
$
|
27
|
$
|
24
|
$
|
97
|
2013
|
|
$
|
24
|
$
|
18
|
$
|
22
|
$
|
25
|
$
|
89
|
2012
|
|
$
|
27
|
$
|
20
|
$
|
22
|
$
|
28
|
$
|
97
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wyndham-worldwide-reports-first-quarter-2015-earnings-300072982.html
SOURCE Wyndham Worldwide Corporation