UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported)
July 28, 2015 (July 28, 2015)
Wyndham Worldwide Corporation
(Exact Name of Registrant as Specified in
Charter)
|
Delaware
(State or Other Jurisdiction
of Incorporation) |
1-32876
(Commission File Number) |
20-0052541
(IRS Employer
Identification No.) |
| |
|
|
|
22 Sylvan Way
Parsippany, NJ
(Address of Principal
Executive Offices) |
|
07054
(Zip Code)
|
Registrant's telephone number, including
area code (973) 753-6000
None
| (Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
Wyndham Worldwide Corporation (the “Company”)
today issued a press release reporting financial results for the quarter ended June 30, 2015.
A copy of the Company’s press release
is furnished as Exhibit 99.1 and is incorporated by reference.
The information included in this Item 2.02
and Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed “filed” for the purposes of or otherwise subject
to the liabilities under Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Unless
expressly incorporated into a filing of the Company under the Securities Act of 1933, as amended or the Exchange Act made after
the date hereof, the information contained in this Item 2.02 and Exhibit 99.1 hereto shall not be incorporated by reference into
any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such
filing.
Item 7.01. Regulation FD Disclosure.
The Company will post 2015 earnings and
driver guidance information on the Company’s website, www.wyndhamworldwide.com/investors,
following the Company’s earnings conference call to be held Tuesday, July 28, 2015 at 8:30 a.m. EDT.
Item 9.01. Financial Statements
and Exhibits.
(d) Exhibits. The following exhibit
is furnished with this report:
|
Exhibit
No. |
|
Description |
| |
|
| Exhibit 99.1 |
|
Press Release of Wyndham Worldwide Corporation, dated July 28, 2015, reporting financial results for the quarter ended June 30, 2015. |
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
WYNDHAM WORLDWIDE CORPORATION
|
| |
|
|
| |
|
|
| Date: July 28, 2015 |
By: |
/s/ Nicola Rossi |
| |
|
Nicola Rossi
Chief Accounting Officer |
WYNDHAM WORLDWIDE CORPORATION
CURRENT REPORT ON FORM 8-K
Report Dated July 28, 2015
EXHIBIT INDEX
| Exhibit No. |
|
Description |
| Exhibit 99.1 |
|
Press Release of Wyndham Worldwide Corporation, dated July 28, 2015, reporting financial results for the quarter ended June 30, 2015. |
 |
EXHIBIT 99.1 |
Wyndham Worldwide Reports Second Quarter
2015 Earnings
Second Quarter Adjusted Diluted EPS up 13%
Year-Over-Year
Increases Full-Year EPS Guidance
PARSIPPANY, N.J. (July 28, 2015) – Wyndham Worldwide
Corporation (NYSE:WYN) today announced results for the three months ended June 30, 2015.
Second Quarter Highlights:
| · | Second quarter adjusted diluted earnings per share (EPS) was $1.32,
an increase of 13% from adjusted diluted EPS of $1.17 in the second quarter of 2014. Reported diluted EPS was $1.33 in the second
quarter of 2015, an increase of 11% from reported diluted EPS of $1.20 from the same period in 2014. |
| · | Revenues increased 4% compared with the second quarter of 2014. In
constant currency, revenues increased 8%. |
| · | Adjusted EBITDA increased 2% compared with the second quarter of 2014.
In constant currency, adjusted EBITDA increased 6%. |
| · | The Company repurchased 1.9 million shares of its common stock during
the quarter for $165 million. |
“We delivered strong results in the second quarter,”
said Stephen P. Holmes, chairman and CEO. “We’re seeing good momentum across the company. Our Wyndham Rewards program
re-launch is off to a great start, rental bookings are strong in the US and in Europe, and sales are up in Wyndham Vacation Ownership.
We’re well positioned to benefit from improving economies and emerging trends in leisure travel. We expect this to drive
continued growth going forward.”
SECOND QUARTER 2015 OPERATING RESULTS
Second quarter revenues were $1.4 billion, an increase of 4%
from the prior year period. In constant currency, revenues increased 8%, reflecting growth across all the Company’s business
segments.
Adjusted net income was $159 million, or $1.32 per diluted share,
compared with $150 million, or $1.17 per diluted share for the same period in 2014. EPS also benefited from the Company’s
share repurchase program, which decreased the weighted average diluted share count by 6% year-over-year.
Reported net income for the second quarter of 2015 was $159
million, or $1.33 per diluted share, compared with $153 million, or $1.20 per diluted share, for the second quarter of 2014. Reported
net income in the second quarter of 2014 reflects several items excluded from adjusted net income that favorably impacted net income
by $3 million. Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.
Free cash flow was $625 million for the six months ended June
30, 2015, compared with $695 million for the same period in 2014. The decline in free cash flow reflects the timing of capital
expenditures and working capital, including inventory spending. The Company defines free cash flow as net cash provided by operating
activities less capital expenditures. For the six months ended June 30, 2015, net cash provided by operating activities was $737
million, compared with $793 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 2014.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $334 million in the second quarter of 2015, an
18% increase over the second quarter of 2014. In constant currency and excluding acquisitions, revenues increased 8%, reflecting
higher domestic RevPAR and worldwide room growth.
Total system-wide RevPAR was flat when compared with the second
quarter of 2014. In constant currency, total system-wide RevPAR increased 2.5%. Domestic RevPAR increased 4.5%. International RevPAR
declined 1.2% in constant currency, which reflects higher unit growth in lower RevPAR countries such as China.
Adjusted EBITDA for the second quarter of 2015 was $97 million,
an 11% increase compared with the second quarter of 2014. In constant currency, excluding acquisitions and the impact of the increase
in the inter-segment licensing fee rate charged for use of the Wyndham brand trade name, adjusted EBITDA increased 9%. The increase
primarily reflects higher royalties and franchise fees.
As of June 30, 2015, the Company’s hotel system consisted
of approximately 7,700 properties and over 668,500 rooms, a 2.8% room increase compared with the second quarter of 2014. The development
pipeline included 895 hotels and approximately 116,800 rooms, of which 61% were international and 66% were new construction.
Vacation Exchange and Rentals (Wyndham Exchange &
Rentals)
Revenues were $383 million in the second quarter of 2015, a
5% decrease from the second quarter of 2014. In constant currency, and excluding acquisitions and the impact of a divestiture in
2014, revenues increased 5%.
Exchange revenues were $161 million, a 4% decrease compared
with the second quarter of 2014. In constant currency, exchange revenues were flat compared to the prior year, as a 2.7% decline
in exchange revenue per member was partially offset by a 2.2% increase in the average number of members.
Vacation rental revenues were $200 million, an 8% decrease compared
to the second quarter of 2014. In constant currency and excluding acquisitions and the impact of a divestiture in 2014, vacation
rental revenues were up 8%, reflecting a 6.1% increase in transaction volume and a 1.7% increase in average net price per vacation
rental.
Adjusted EBITDA for the second quarter of 2015 was $84 million,
a 3% decrease compared with the second quarter of 2014. On a currency-neutral basis and excluding acquisitions and the divestiture
of a business in 2014, adjusted EBITDA increased 3% compared with the prior year period.
Vacation Ownership (Wyndham Vacation Ownership)
Revenues were $699 million in the second quarter of 2015, a
4% increase over the second quarter of 2014. In constant currency, revenues increased 5%.
Gross VOI sales were $502 million in the second quarter of 2015,
an increase of 1% compared with the second quarter of 2014. In constant currency, Gross VOI sales increased 3%. Net VOI sales increased
9% (or 11% in constant currency), reflecting higher volume per guest and a lower loan loss provision. Volume per guest for the
quarter increased 3.2% (or 4.4% in constant currency) while tour flow declined 1.0%.
Adjusted EBITDA for the second quarter of 2015 was $182 million,
a decrease of 2% compared with the second quarter of 2014. Results reflected higher commission expenses and the increased licensing
fee to the Wyndham Hotel Group. On a currency neutral basis, and excluding the increased licensing fee, EBITDA increased 2%.
Other Items
| · | The Company repurchased 1.9 million shares of common stock for $165
million during the second quarter of 2015. From July 1 through July 27, 2015, the Company repurchased an additional 0.8 million
shares for $66 million. The Company’s remaining share repurchase authorization totals $635 million as of July 27, 2015. |
| · | Reported net interest expense in the second quarter of 2015 was $28
million, compared with $26 million in the second quarter of 2014. |
Balance Sheet Information as of June 30, 2015:
| · | Cash and cash equivalents of $410 million, compared with $183 million
at December 31, 2014 |
| · | Vacation ownership contract receivables, net, of $2.7 billion, unchanged
from December 31, 2014 |
| · | Vacation ownership and other inventory of $1.2 billion, unchanged
from December 31, 2014 |
| · | Securitized vacation ownership debt of $2.1 billion, a 3% decrease
from December 31, 2014 |
| · | Long-term debt of $3.2 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 $1.0 billion
as of June 30, 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 $38 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 $4.88 - $5.03 based on a diluted
share count of 120.2 million, up from $4.81 - $4.96 based on a diluted share count of 121.4 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, July 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 July 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 July 28, 2015, at 866-443-2927.
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 approximately 7,700 franchised hotels and over 668,500 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 approximately 110,000
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 over 210 vacation ownership resorts serving approximately 901,000 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.
# # #
Investor and Media contact:
Margo C. Happer
Senior Vice President, Investor Relations
Wyndham Worldwide Corporation
(973) 753-6472
margo.happer@wyn.com
Barry Goldschmidt
Vice President, Investor Relations
Wyndham Worldwide Corporation
(973) 753-7703
barry.goldschmidt@wyn.com
Table 1
(1 of 2)
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and “EBITDA”, which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), 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 June 30, 2015 and 2014:
| | |
Three Months Ended June 30, | |
| | |
2015 | | |
2014 | |
| | |
Net Revenues | | |
EBITDA | | |
Net Revenues | | |
EBITDA | |
| Lodging | |
$ | 334 | | |
$ | 96 | | |
$ | 283 | | |
$ | 87 | |
| Vacation Exchange and Rentals | |
| 383 | | |
| 84 | | |
| 402 | | |
| 89 | |
| Vacation Ownership | |
| 699 | | |
| 182 | | |
| 673 | | |
| 185 | |
| Total Reportable Segments | |
| 1,416 | | |
| 362 | | |
| 1,358 | | |
| 361 | |
| Corporate and Other (a) | |
| (18 | ) | |
| (30 | ) | |
| (15 | ) | |
| (35 | ) |
| Total Company | |
$ | 1,398 | | |
$ | 332 | | |
$ | 1,343 | | |
$ | 326 | |
Reconciliation of EBITDA to Net income
| |
Three Months Ended June 30,
| |
| | |
2015 | | |
2014 | |
| EBITDA | |
$ | 332 | | |
$ | 326 | |
| Depreciation and amortization | |
| 58 | | |
| 59 | |
| Interest expense | |
| 30 | | |
| 29 | |
| Interest income | |
| (2 | ) | |
| (3 | ) |
| Income before income taxes | |
| 246 | | |
| 241 | |
| Provision for income taxes | |
| 87 | | |
| 88 | |
| Net income | |
$ | 159 | | |
$ | 153 | |
(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 June 30, 2015 and 2014 (for a description of adjustments by segment, see Table 7):
| | |
Three Months Ended June 30, | |
| | |
2015 | | |
2014 | |
| | |
Net Revenues | | |
Adjusted
EBITDA | | |
Net Revenues | | |
Adjusted
EBITDA | |
| Lodging | |
$ | 334 | | |
$ | 97 | | |
$ | 283 | | |
$ | 87 | |
| Vacation Exchange and Rentals | |
| 383 | | |
| 84 | | |
| 402 | | |
| 87 | |
| Vacation Ownership | |
| 699 | | |
| 182 | | |
| 673 | | |
| 185 | |
| Total Reportable Segments | |
| 1,416 | | |
| 363 | | |
| 1,358 | | |
| 359 | |
| Corporate and Other | |
| (18 | ) | |
| (31 | ) | |
| (15 | ) | |
| (35 | ) |
| Total Company | |
$ | 1,398 | | |
$ | 332 | | |
$ | 1,343 | | |
$ | 324 | |
Table 1
(2 of 2)
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile EBITDA to Net income attributable to Wyndham shareholders for the six months ended June 30, 2015 and 2014:
| | |
Six Months Ended June 30, | |
| | |
2015 | | |
2014 | |
| | |
Net Revenues | | |
EBITDA | | |
Net Revenues | | |
EBITDA | |
| Lodging | |
$ | 626 | | |
$ | 172 | | |
$ | 520 | | |
$ | 151 | |
| Vacation Exchange and Rentals | |
| 752 | | |
| 189 | | |
| 781 | | |
| 174 | |
| Vacation Ownership | |
| 1,316 | | |
| 313 | | |
| 1,266 | | |
| 300 | |
| Total Reportable Segments | |
| 2,694 | | |
| 674 | | |
| 2,567 | | |
| 625 | |
| Corporate and Other (a) | |
| (33 | ) | |
| (65 | ) | |
| (31 | ) | |
| (69 | ) |
| Total Company | |
$ | 2,661 | | |
$ | 609 | | |
$ | 2,536 | | |
$ | 556 | |
Reconciliation of EBITDA to Net income attributable to Wyndham shareholders
| |
Six Months Ended June 30, | |
| | |
2015 | | |
2014 | |
| EBITDA | |
$ | 609 | | |
$ | 556 | |
| Depreciation and amortization | |
| 114 | | |
| 115 | |
| Interest expense | |
| 56 | | |
| 56 | |
| Interest income | |
| (5 | ) | |
| (5 | ) |
| Income before income taxes | |
| 444 | | |
| 390 | |
| Provision for income taxes | |
| 162 | | |
| 146 | |
| Net income | |
| 282 | | |
| 244 | |
| Net income attributable to noncontrolling interest | |
| - | | |
| (1 | ) |
| Net income attributable to Wyndham shareholders | |
$ | 282 | | |
$ | 243 | |
(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 six months ended June 30, 2015 and 2014 (for a description of adjustments by segment, see Table 7):
| | |
Six Months Ended June 30, | |
| | |
2015 | | |
2014 | |
| | |
Net Revenues | | |
Adjusted
EBITDA | | |
Net Revenues | | |
Adjusted
EBITDA | |
| Lodging | |
$ | 626 | | |
$ | 175 | | |
$ | 520 | | |
$ | 155 | |
| Vacation Exchange and Rentals | |
| 752 | | |
| 189 | | |
| 781 | | |
| 182 | |
| Vacation Ownership | |
| 1,316 | | |
| 313 | | |
| 1,266 | | |
| 300 | |
| Total Reportable Segments | |
| 2,694 | | |
| 677 | | |
| 2,567 | | |
| 637 | |
| Corporate and Other | |
| (33 | ) | |
| (66 | ) | |
| (31 | ) | |
| (69 | ) |
| Total Company | |
$ | 2,661 | | |
$ | 611 | | |
$ | 2,536 | | |
$ | 568 | |
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30, | | |
June 30, | |
| | |
2015 | | |
2014 | | |
2015 | | |
2014 | |
| Net revenues | |
| | | |
| | | |
| | | |
| | |
| Service and membership fees | |
$ | 623 | | |
$ | 616 | | |
$ | 1,223 | | |
$ | 1,205 | |
| Vacation ownership interest sales | |
| 417 | | |
| 382 | | |
| 753 | | |
| 685 | |
| Franchise fees | |
| 178 | | |
| 166 | | |
| 325 | | |
| 293 | |
| Consumer financing | |
| 105 | | |
| 106 | | |
| 210 | | |
| 211 | |
| Other | |
| 75 | | |
| 73 | | |
| 150 | | |
| 142 | |
| Net revenues | |
| 1,398 | | |
| 1,343 | | |
| 2,661 | | |
| 2,536 | |
| | |
| | | |
| | | |
| | | |
| | |
| Expenses | |
| | | |
| | | |
| | | |
| | |
| Operating | |
| 610 | | |
| 572 | | |
| 1,177 | | |
| 1,106 | |
| Cost of vacation ownership interests | |
| 47 | | |
| 42 | | |
| 80 | | |
| 81 | |
| Consumer financing interest | |
| 19 | | |
| 17 | | |
| 36 | | |
| 35 | |
| Marketing and reservation | |
| 211 | | |
| 206 | | |
| 406 | | |
| 387 | |
| General and administrative | |
| 182 | | |
| 181 | | |
| 362 | | |
| 376 | |
| Restructuring | |
| - | | |
| - | | |
| (1 | ) | |
| - | |
| Depreciation and amortization | |
| 58 | | |
| 59 | | |
| 114 | | |
| 115 | |
| Total expenses | |
| 1,127 | | |
| 1,077 | | |
| 2,174 | | |
| 2,100 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 271 | | |
| 266 | | |
| 487 | | |
| 436 | |
| Other income, net | |
| (3 | ) | |
| (1 | ) | |
| (8 | ) | |
| (5 | ) |
| Interest expense | |
| 30 | | |
| 29 | | |
| 56 | | |
| 56 | |
| Interest income | |
| (2 | ) | |
| (3 | ) | |
| (5 | ) | |
| (5 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Income before income taxes | |
| 246 | | |
| 241 | | |
| 444 | | |
| 390 | |
| Provision for income taxes | |
| 87 | | |
| 88 | | |
| 162 | | |
| 146 | |
| Net income | |
| 159 | | |
| 153 | | |
| 282 | | |
| 244 | |
| Net income attributable to noncontrolling interest | |
| - | | |
| - | | |
| - | | |
| (1 | ) |
| Net income attributable to Wyndham shareholders | |
$ | 159 | | |
$ | 153 | | |
$ | 282 | | |
$ | 243 | |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings per share | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 1.34 | | |
$ | 1.21 | | |
$ | 2.35 | | |
$ | 1.91 | |
| Diluted | |
| 1.33 | | |
| 1.20 | | |
| 2.33 | | |
| 1.89 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares outstanding | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 119 | | |
| 127 | | |
| 120 | | |
| 127 | |
| Diluted | |
| 120 | | |
| 128 | | |
| 121 | | |
| 129 | |
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 |
|
|
|
668,500 |
|
|
|
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 |
|
|
$ |
39.82 |
|
|
|
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 |
|
|
|
3,831 |
|
|
|
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 |
|
|
$ |
167.81 |
|
|
|
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) (b) |
|
2015 |
|
|
459 |
|
|
|
390 |
|
|
|
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) (b) |
|
2015 |
|
$ |
361.20 |
|
|
$ |
513.14 |
|
|
|
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) (c) |
|
2015 |
|
$ |
390,000 |
|
|
$ |
502,000 |
|
|
|
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) (d) |
|
2015 |
|
|
168 |
|
|
|
206 |
|
|
|
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) (d) |
|
2015 |
|
$ |
2,177 |
|
|
$ |
2,353 |
|
|
|
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) | The vacation exchange and rentals operating statistics
excluding our U.K.-based camping business sold in Q4 2014 are as follows: |
| | |
Year | |
Q1 | | |
Q2 | | |
Q3 | | |
Q4 | | |
Full Year | |
| Vacation Rental Transactions (in 000s) | |
2014 | |
429 | | |
367 | | |
431 | | |
292 | | |
1,518 | |
| Average Net Price Per Vacation Rental | |
2014 | |
$ | 410.02 | | |
$ | 578.02 | | |
$ | 700.56 | | |
$ | 492.64 | | |
$ | 548.93 | |
| (c) | 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). |
| (d) | 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 | | |
| 7,700 | | |
| 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 | | |
$ | 60,000 | | |
| 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 | | |
$ | 96 | | |
| N/A | | |
| N/A | | |
| N/A | | |
$ | 68 | | |
$ | 88 | | |
$ | 100 | | |
$ | 83 | | |
$ | 339 | |
| Marketing, Reservation and Wyndham Rewards Revenues (a) | |
| 96 | | |
| 108 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 76 | | |
| 101 | | |
| 117 | | |
| 91 | | |
| 385 | |
| Hotel Management Reimbursable Revenues (b) | |
| 61 | | |
| 71 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 37 | | |
| 39 | | |
| 39 | | |
| 39 | | |
| 154 | |
| Intersegment Trademark Fees | |
| 12 | | |
| 15 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 9 | | |
| 11 | | |
| 11 | | |
| 10 | | |
| 41 | |
| Owned Hotel Revenues | |
| 25 | | |
| 20 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 24 | | |
| 20 | | |
| 18 | | |
| 20 | | |
| 81 | |
| Ancillary Revenues (c) | |
| 24 | | |
| 24 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 23 | | |
| 24 | | |
| 30 | | |
| 24 | | |
| 101 | |
| Total
Lodging | |
| 292 | | |
| 334 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 237 | | |
| 283 | | |
| 315 | | |
| 267 | | |
| 1,101 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Vacation Exchange and Rentals | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Exchange Revenues | |
| 185 | | |
| 161 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 187 | | |
| 168 | | |
| 162 | | |
| 150 | | |
| 667 | |
| Rental Revenues | |
| 166 | | |
| 200 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 176 | | |
| 217 | | |
| 331 | | |
| 144 | | |
| 868 | |
| Ancillary Revenues (d) | |
| 18 | | |
| 22 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 16 | | |
| 17 | | |
| 19 | | |
| 17 | | |
| 69 | |
| Total
Vacation Exchange and Rentals | |
| 369 | | |
| 383 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 379 | | |
| 402 | | |
| 512 | | |
| 311 | | |
| 1,604 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Vacation Ownership | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Vacation Ownership Interest Sales | |
| 336 | | |
| 417 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 303 | | |
| 382 | | |
| 415 | | |
| 385 | | |
| 1,485 | |
| Consumer Financing | |
| 104 | | |
| 105 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 105 | | |
| 106 | | |
| 108 | | |
| 108 | | |
| 427 | |
| Property Management Fees and Reimbursable Revenues | |
| 153 | | |
| 149 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 143 | | |
| 145 | | |
| 150 | | |
| 142 | | |
| 581 | |
| WAAM Fee-for-Service Commissions | |
| 12 | | |
| 19 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 33 | | |
| 30 | | |
| 18 | | |
| 16 | | |
| 98 | |
| Ancillary Revenues (e) | |
| 12 | | |
| 9 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 9 | | |
| 10 | | |
| 13 | | |
| 17 | | |
| 47 | |
| Total
Vacation Ownership | |
| 617 | | |
| 699 | | |
| N/A | | |
| N/A | | |
| N/A | | |
| 593 | | |
| 673 | | |
| 704 | | |
| 668 | | |
| 2,638 | |
| Total
Reportable Segments | |
$ | 1,278 | | |
$ | 1,416 | | |
| 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)
| | |
June 30,
2015 | | |
March 31,
2015 | | |
December 31,
2014 | | |
September 30,
2014 | | |
June 30,
2014 | |
| | |
| | |
| | |
| | |
| | |
| |
| Securitized vacation ownership debt (a) | |
| | | |
| | | |
| | | |
| | | |
| | |
| Term notes | |
$ | 1,841 | | |
$ | 2,090 | | |
$ | 1,962 | | |
$ | 1,670 | | |
$ | 1,600 | |
| Bank conduit facility (b) | |
| 253 | | |
| 98 | | |
| 203 | | |
| 271 | | |
| 291 | |
| Total securitized vacation ownership debt (c) | |
| 2,094 | | |
| 2,188 | | |
| 2,165 | | |
| 1,941 | | |
| 1,891 | |
| Less: Current portion of securitized vacation ownership debt | |
| 211 | | |
| 217 | | |
| 214 | | |
| 192 | | |
| 187 | |
| Long-term securitized vacation ownership debt | |
$ | 1,883 | | |
$ | 1,971 | | |
$ | 1,951 | | |
$ | 1,749 | | |
$ | 1,704 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Debt: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revolving credit facility (due July 2020) (d) | |
$ | 23 | | |
$ | 14 | | |
$ | 25 | | |
$ | 18 | | |
$ | 16 | |
| Commercial paper (e) | |
| 476 | | |
| 346 | | |
| 189 | | |
| 237 | | |
| 107 | |
| $315 million 6.00% senior unsecured notes (due December 2016) | |
| 317 | | |
| 317 | | |
| 317 | | |
| 317 | | |
| 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 | | |
| 448 | |
| $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 | | |
| 247 | | |
| 246 | |
| $650 million 4.25% senior unsecured notes (due March 2022) | |
| 648 | | |
| 650 | | |
| 648 | | |
| 646 | | |
| 646 | |
| $400 million 3.90% senior unsecured notes (due March 2023) | |
| 409 | | |
| 418 | | |
| 410 | | |
| 401 | | |
| 403 | |
| Capital leases | |
| 161 | | |
| 161 | | |
| 170 | | |
| 175 | | |
| 186 | |
| Other | |
| 70 | | |
| 70 | | |
| 81 | | |
| 80 | | |
| 99 | |
| Total long-term debt | |
| 3,152 | | |
| 3,024 | | |
| 2,888 | | |
| 2,922 | | |
| 2,822 | |
| Less: Current portion of long-term debt | |
| 52 | | |
| 53 | | |
| 47 | | |
| 49 | | |
| 50 | |
| Long-term debt | |
$ | 3,100 | | |
$ | 2,971 | | |
$ | 2,841 | | |
$ | 2,873 | | |
$ | 2,772 | |
| (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 June 30, 2015, this facility had a remaining
borrowing capacity of $397 million. |
| (c) | This debt is collateralized by $2,558 million, $2,609
million, $2,629 million, $2,326 million, and $2,287 million of underlying vacation ownership contract receivables and related
assets as of June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014. |
| (d) | Represents a $1.5 billion revolving credit facility that
expires in July 2020. As of June 30, 2015, the Company had $1 million of outstanding letters of credit. After considering outstanding
commercial paper borrowings of $476 million, the remaining borrowing capacity was $1 billion as of June 30, 2015. |
| (e) | Represents commercial paper programs of $1.25 billion
with a remaining borrowing capacity of $774 million as of June 30, 2015. |
Table 6
(1 of 2)
Wyndham Worldwide Corporation
BRAND SYSTEM DETAILS
| | |
As of and For the Three Months Ended June 30, 2015 | |
| Brand | |
Number of
Properties | | |
Number of Rooms | | |
Average
Occupancy Rate | | |
Average Daily
Rate (ADR) | | |
Average Revenue
Per Available
Room (RevPAR) | |
| | |
| | |
| | |
| | |
| | |
| |
| Lodging | |
| | | |
| | | |
| | | |
| | | |
| | |
| Super 8 | |
| 2,549 | | |
| 163,510 | | |
| 61.1 | % | |
$ | 51.27 | | |
$ | 31.33 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Days Inn | |
| 1,782 | | |
| 143,046 | | |
| 54.2 | % | |
$ | 68.18 | | |
$ | 36.95 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Ramada | |
| 836 | | |
| 116,799 | | |
| 56.0 | % | |
$ | 75.49 | | |
$ | 42.24 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Howard Johnson | |
| 413 | | |
| 44,945 | | |
| 50.3 | % | |
$ | 63.70 | | |
$ | 32.06 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham Hotels and Resorts | |
| 207 | | |
| 44,489 | | |
| 63.8 | % | |
$ | 113.95 | | |
$ | 72.68 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Travelodge | |
| 415 | | |
| 30,701 | | |
| 53.3 | % | |
$ | 69.14 | | |
$ | 36.87 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Baymont | |
| 383 | | |
| 30,471 | | |
| 56.1 | % | |
$ | 69.39 | | |
$ | 38.93 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Knights Inn | |
| 388 | | |
| 23,994 | | |
| 47.5 | % | |
$ | 48.21 | | |
$ | 22.92 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Microtel Inns & Suites by Wyndham | |
| 327 | | |
| 23,446 | | |
| 61.4 | % | |
$ | 70.02 | | |
$ | 43.02 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| TRYP by Wyndham | |
| 123 | | |
| 17,895 | | |
| 64.8 | % | |
$ | 81.02 | | |
$ | 52.48 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wingate by Wyndham | |
| 150 | | |
| 13,645 | | |
| 67.2 | % | |
$ | 91.15 | | |
$ | 61.27 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Hawthorn Suites by Wyndham | |
| 101 | | |
| 10,053 | | |
| 70.5 | % | |
$ | 81.33 | | |
$ | 57.31 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Dolce | |
| 24 | | |
| 5,530 | | |
| 58.4 | % | |
$ | 150.86 | | |
$ | 88.09 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Lodging | |
| 7,698 | | |
| 668,524 | | |
| 57.4 | % | |
$ | 69.32 | | |
$ | 39.82 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Vacation Ownership | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham Vacation Ownership resorts | |
| 211 | | |
| 24,068 | | |
| N/A | | |
| N/A | | |
| N/A | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Wyndham Worldwide | |
| 7,909 | | |
| 692,592 | | |
| | | |
| | | |
| | |
| | |
As
of and For the Three Months Ended June 30, 2014 | |
| Brand | |
Number
of
Properties | | |
Number
of Rooms | | |
Average
Occupancy Rate | | |
Average
Daily
Rate (ADR) | | |
Average
Revenue
Per Available
Room (RevPAR) | |
| | |
| | |
| | |
| | |
| | |
| |
| Lodging | |
| | | |
| | | |
| | | |
| | | |
| | |
| Super 8 | |
| 2,436 | | |
| 155,711 | | |
| 60.0 | % | |
$ | 50.77 | | |
$ | 30.46 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Days Inn | |
| 1,807 | | |
| 146,139 | | |
| 55.8 | % | |
$ | 64.86 | | |
$ | 36.20 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Ramada | |
| 829 | | |
| 114,195 | | |
| 57.2 | % | |
$ | 79.00 | | |
$ | 45.15 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Howard Johnson | |
| 439 | | |
| 46,214 | | |
| 50.4 | % | |
$ | 62.88 | | |
$ | 31.68 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham Hotels and Resorts | |
| 178 | | |
| 39,816 | | |
| 66.7 | % | |
$ | 117.57 | | |
$ | 78.43 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Travelodge | |
| 425 | | |
| 31,075 | | |
| 54.3 | % | |
$ | 67.35 | | |
$ | 36.60 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Baymont | |
| 346 | | |
| 28,325 | | |
| 56.9 | % | |
$ | 66.36 | | |
$ | 37.78 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Knights Inn | |
| 383 | | |
| 23,472 | | |
| 46.4 | % | |
$ | 46.78 | | |
$ | 21.70 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Microtel Inns & Suites
by Wyndham | |
| 318 | | |
| 22,744 | | |
| 63.8 | % | |
$ | 67.26 | | |
$ | 42.88 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| TRYP by Wyndham | |
| 117 | | |
| 16,740 | | |
| 66.9 | % | |
$ | 96.01 | | |
$ | 64.19 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wingate by Wyndham | |
| 158 | | |
| 14,436 | | |
| 68.7 | % | |
$ | 88.24 | | |
$ | 60.65 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Hawthorn Suites by Wyndham | |
| 98 | | |
| 9,737 | | |
| 68.1 | % | |
$ | 77.37 | | |
$ | 52.72 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Dream | |
| 5 | | |
| 989 | | |
| 72.9 | % | |
$ | 246.03 | | |
$ | 179.38 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Night | |
| 3 | | |
| 630 | | |
| 72.8 | % | |
$ | 158.86 | | |
$ | 115.62 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Lodging | |
| 7,542 | | |
| 650,223 | | |
| 58.0 | % | |
$ | 69.13 | | |
$ | 40.11 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Vacation Ownership | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham
Vacation Ownership resorts | |
| 201 | | |
| 23,450 | | |
| N/A | | |
| N/A | | |
| N/A | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total
Wyndham Worldwide | |
| 7,743 | | |
| 673,673 | | |
| | | |
| | | |
| | |
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 6
(2 of 2)
Wyndham Worldwide Corporation
BRAND SYSTEM DETAILS
| | |
As of and For the Six Months Ended June 30, 2015 | |
| Brand | |
Number
of
Properties | | |
Number
of Rooms | | |
Average
Occupancy Rate | | |
Average
Daily
Rate (ADR) | | |
Average
Revenue
Per Available
Room (RevPAR) | |
| | |
| | |
| | |
| | |
| | |
| |
| Lodging | |
| | | |
| | | |
| | | |
| | | |
| | |
| Super 8 | |
| 2,549 | | |
| 163,510 | | |
| 56.1 | % | |
$ | 50.01 | | |
$ | 28.04 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Days Inn | |
| 1,782 | | |
| 143,046 | | |
| 49.7 | % | |
$ | 66.32 | | |
$ | 32.98 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Ramada | |
| 836 | | |
| 116,799 | | |
| 53.7 | % | |
$ | 75.12 | | |
$ | 40.37 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Howard Johnson | |
| 413 | | |
| 44,945 | | |
| 47.2 | % | |
$ | 63.13 | | |
$ | 29.82 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham Hotels and Resorts | |
| 207 | | |
| 44,489 | | |
| 59.9 | % | |
$ | 113.13 | | |
$ | 67.81 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Travelodge | |
| 415 | | |
| 30,701 | | |
| 49.4 | % | |
$ | 65.86 | | |
$ | 32.54 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Baymont | |
| 383 | | |
| 30,471 | | |
| 51.6 | % | |
$ | 67.52 | | |
$ | 34.85 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Knights Inn | |
| 388 | | |
| 23,994 | | |
| 45.8 | % | |
$ | 46.73 | | |
$ | 21.41 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Microtel Inns & Suites
by Wyndham | |
| 327 | | |
| 23,446 | | |
| 57.5 | % | |
$ | 68.55 | | |
$ | 39.41 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| TRYP by Wyndham | |
| 123 | | |
| 17,895 | | |
| 58.2 | % | |
$ | 78.87 | | |
$ | 45.92 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wingate by Wyndham | |
| 150 | | |
| 13,645 | | |
| 62.9 | % | |
$ | 88.74 | | |
$ | 55.81 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Hawthorn Suites by Wyndham | |
| 101 | | |
| 10,053 | | |
| 67.7 | % | |
$ | 80.89 | | |
$ | 54.75 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Dolce | |
| 24 | | |
| 5,530 | | |
| 56.7 | % | |
$ | 143.28 | | |
$ | 81.30 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Lodging | |
| 7,698 | | |
| 668,524 | | |
| 53.5 | % | |
$ | 68.00 | | |
$ | 36.35 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Vacation Ownership | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham
Vacation Ownership resorts | |
| 211 | | |
| 24,068 | | |
| N/A | | |
| N/A | | |
| N/A | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total
Wyndham Worldwide | |
| 7,909 | | |
| 692,592 | | |
| | | |
| | | |
| | |
| | |
As of and For the Six Months Ended June 30, 2014 | |
| Brand | |
Number of
Properties | | |
Number of Rooms | | |
Average
Occupancy Rate | | |
Average Daily
Rate (ADR) | | |
Average Revenue
Per Available
Room (RevPAR) | |
| | |
| | |
| | |
| | |
| | |
| |
| Lodging | |
| | | |
| | | |
| | | |
| | | |
| | |
| Super 8 | |
| 2,436 | | |
| 155,711 | | |
| 55.8 | % | |
$ | 49.63 | | |
$ | 27.69 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Days Inn | |
| 1,807 | | |
| 146,139 | | |
| 50.2 | % | |
$ | 63.56 | | |
$ | 31.92 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Ramada | |
| 829 | | |
| 114,195 | | |
| 53.7 | % | |
$ | 79.22 | | |
$ | 42.52 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Howard Johnson | |
| 439 | | |
| 46,214 | | |
| 47.0 | % | |
$ | 62.41 | | |
$ | 29.32 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham Hotels and Resorts | |
| 178 | | |
| 39,816 | | |
| 61.1 | % | |
$ | 115.42 | | |
$ | 70.55 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Travelodge | |
| 425 | | |
| 31,075 | | |
| 49.5 | % | |
$ | 64.82 | | |
$ | 32.08 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Baymont | |
| 346 | | |
| 28,325 | | |
| 52.0 | % | |
$ | 64.25 | | |
$ | 33.40 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Knights Inn | |
| 383 | | |
| 23,472 | | |
| 43.6 | % | |
$ | 45.50 | | |
$ | 19.84 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Microtel Inns & Suites by Wyndham | |
| 318 | | |
| 22,744 | | |
| 58.8 | % | |
$ | 65.08 | | |
$ | 38.24 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| TRYP by Wyndham | |
| 117 | | |
| 16,740 | | |
| 59.2 | % | |
$ | 91.64 | | |
$ | 54.22 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wingate by Wyndham | |
| 158 | | |
| 14,436 | | |
| 63.9 | % | |
$ | 85.95 | | |
$ | 54.93 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Hawthorn Suites by Wyndham | |
| 98 | | |
| 9,737 | | |
| 64.7 | % | |
$ | 76.76 | | |
$ | 49.66 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Dream | |
| 5 | | |
| 989 | | |
| 73.4 | % | |
$ | 217.94 | | |
$ | 159.91 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Night | |
| 3 | | |
| 630 | | |
| 66.3 | % | |
$ | 139.04 | | |
$ | 92.20 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Lodging | |
| 7,542 | | |
| 650,223 | | |
| 53.5 | % | |
$ | 67.78 | | |
$ | 36.23 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Vacation Ownership | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wyndham Vacation Ownership resorts | |
| 201 | | |
| 23,450 | | |
| N/A | | |
| N/A | | |
| N/A | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Wyndham Worldwide | |
| 7,743 | | |
| 673,673 | | |
| | | |
| | | |
| | |
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 | | |
Legacy
Adjustments
(b) | | |
Acquisition
Costs (c) | | |
Restructuring
Costs (d) | | |
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 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Three months ended June 30, 2015 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Lodging | |
$ | 334 | | |
$ | 96 | | |
$ | - | | |
$ | 1 | | |
$ | - | | |
$ | 97 | |
| Vacation Exchange and Rentals | |
| 383 | | |
| 84 | | |
| - | | |
| - | | |
| - | | |
| 84 | |
| Vacation
Ownership | |
| 699 | | |
| 182 | | |
| - | | |
| - | | |
| - | | |
| 182 | |
| Total Reportable Segments | |
| 1,416 | | |
| 362 | | |
| - | | |
| 1 | | |
| - | | |
| 363 | |
| Corporate
and Other (a) | |
| (18 | ) | |
| (30 | ) | |
| (1 | ) | |
| - | | |
| - | | |
| (31 | ) |
| Total
Company | |
$ | 1,398 | | |
$ | 332 | | |
$ | (1 | ) | |
$ | 1 | | |
$ | - | | |
$ | 332 | |
| (a) | Includes the elimination of transactions between segments. |
| (b) | Relates to the net benefit from the resolution of and
adjustment to certain contingent liabilities and assets resulting from our separation from Cendant. |
| (c) | Relates to costs incurred in connection with the acquisition
of Dolce Hotels and Resorts (January 2015). |
| (d) | 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 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | |
Three Months Ended June 30, 2015 | |
| | |
| | |
| | |
| | |
| |
| | |
As Reported | | |
Legacy
Adjustments (a) | | |
Acquisition
Costs (b) | | |
As Adjusted
non-GAAP | |
| Net revenues | |
| | | |
| | | |
| | | |
| | |
| Service and membership fees | |
$ | 623 | | |
$ | | | |
$ | | | |
$ | 623 | |
| Vacation ownership interest sales | |
| 417 | | |
| | | |
| | | |
| 417 | |
| Franchise fees | |
| 178 | | |
| | | |
| | | |
| 178 | |
| Consumer financing | |
| 105 | | |
| | | |
| | | |
| 105 | |
| Other | |
| 75 | | |
| | | |
| | | |
| 75 | |
| Net revenues | |
| 1,398 | | |
| - | | |
| - | | |
| 1,398 | |
| | |
| | | |
| | | |
| | | |
| | |
| Expenses | |
| | | |
| | | |
| | | |
| | |
| Operating | |
| 610 | | |
| | | |
| (1 | ) | |
| 609 | |
| Cost of vacation ownership interests | |
| 47 | | |
| | | |
| | | |
| 47 | |
| Consumer financing interest | |
| 19 | | |
| | | |
| | | |
| 19 | |
| Marketing and reservation | |
| 211 | | |
| | | |
| | | |
| 211 | |
| General and administrative | |
| 182 | | |
| 1 | | |
| | | |
| 183 | |
| Depreciation and amortization | |
| 58 | | |
| | | |
| | | |
| 58 | |
| Total expenses | |
| 1,127 | | |
| 1 | | |
| (1 | ) | |
| 1,127 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 271 | | |
| (1 | ) | |
| 1 | | |
| 271 | |
| Other income, net | |
| (3 | ) | |
| | | |
| | | |
| (3 | ) |
| Interest expense | |
| 30 | | |
| | | |
| | | |
| 30 | |
| Interest income | |
| (2 | ) | |
| | | |
| | | |
| (2 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Income before income taxes | |
| 246 | | |
| (1 | ) | |
| 1 | | |
| 246 | |
| Provision for income taxes | |
| 87 | | |
| | | |
| | | |
| 87 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 159 | | |
$ | (1 | ) | |
$ | 1 | | |
$ | 159 | |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings per share | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 1.34 | | |
$ | (0.01 | ) | |
$ | 0.01 | | |
$ | 1.33 | |
| Diluted | |
| 1.33 | | |
| (0.01 | ) | |
| 0.01 | | |
| 1.32 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares outstanding | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 119 | | |
| 119 | | |
| 119 | | |
| 119 | |
| Diluted | |
| 120 | | |
| 120 | | |
| 120 | | |
| 120 | |
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 the net benefit from the resolution of and
adjustment to certain contingent liabilities and assets resulting from our separation from Cendant. |
| (b) | Relates to costs incurred in connection with the acquisition
of Dolce Hotels and Resorts (January 2015). |
Table 8
(2 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | |
Six Months Ended June 30, 2015 | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
As Reported | | |
Legacy
Adjustments (a) | | |
Acquisition
Costs (b) | | |
Restructuring
Costs (d) | | |
As Adjusted
non-GAAP | |
| Net revenues | |
| | | |
| | | |
| | | |
| | | |
| | |
| Service and membership fees | |
$ | 1,223 | | |
$ | | | |
$ | | | |
$ | | | |
$ | 1,223 | |
| Vacation ownership interest sales | |
| 753 | | |
| | | |
| | | |
| | | |
| 753 | |
| Franchise fees | |
| 325 | | |
| | | |
| | | |
| | | |
| 325 | |
| Consumer financing | |
| 210 | | |
| | | |
| | | |
| | | |
| 210 | |
| Other | |
| 150 | | |
| | | |
| | | |
| | | |
| 150 | |
| Net revenues | |
| 2,661 | | |
| - | | |
| - | | |
| - | | |
| 2,661 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Expenses | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating | |
| 1,177 | | |
| | | |
| (4 | ) | |
| | | |
| 1,173 | |
| Cost of vacation ownership interests | |
| 80 | | |
| | | |
| | | |
| | | |
| 80 | |
| Consumer financing interest | |
| 36 | | |
| | | |
| | | |
| | | |
| 36 | |
| Marketing and reservation | |
| 406 | | |
| | | |
| | | |
| | | |
| 406 | |
| General and administrative | |
| 362 | | |
| 1 | | |
| | | |
| | | |
| 363 | |
| Restructuring | |
| (1 | ) | |
| | | |
| | | |
| 1 | | |
| - | |
| Depreciation and amortization | |
| 114 | | |
| | | |
| | | |
| | | |
| 114 | |
| Total expenses | |
| 2,174 | | |
| 1 | | |
| (4 | ) | |
| 1 | | |
| 2,172 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 487 | | |
| (1 | ) | |
| 4 | | |
| (1 | ) | |
| 489 | |
| Other income, net | |
| (8 | ) | |
| | | |
| | | |
| | | |
| (8 | ) |
| Interest expense | |
| 56 | | |
| | | |
| | | |
| | | |
| 56 | |
| Interest income | |
| (5 | ) | |
| | | |
| | | |
| | | |
| (5 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income before income taxes | |
| 444 | | |
| (1 | ) | |
| 4 | | |
| (1 | ) | |
| 446 | |
| Provision for income taxes | |
| 162 | | |
| - | | |
| (1 | )(c) | |
| - | | |
| 161 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 282 | | |
$ | (1 | ) | |
$ | 5 | | |
$ | (1 | ) | |
$ | 285 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Earnings per share | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 2.35 | | |
$ | (0.01 | ) | |
$ | 0.04 | | |
$ | (0.01 | ) | |
$ | 2.37 | |
| Diluted | |
| 2.33 | | |
| (0.01 | ) | |
| 0.04 | | |
| (0.01 | ) | |
| 2.36 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares outstanding | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 120 | | |
| 120 | | |
| 120 | | |
| 120 | | |
| 120 | |
| Diluted | |
| 121 | | |
| 121 | | |
| 121 | | |
| 121 | | |
| 121 | |
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 the net benefit from the resolution of and
adjustment to certain contingent liabilities and assets resulting from our separation from Cendant. |
| (b) | Relates primarily to costs incurred in connection with the acquisition of Dolce Hotels and
Resorts (January 2015) at the Company's lodging business. |
| (c) | Relates to (i) the tax effect of the adjustment and (ii)
a valuation allowance established in connection with the acquisition of Dolce Hotels and Resorts. |
| (d) | 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. |
Table 8
(3 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | |
Three Months Ended June 30, 2014 | |
| | |
| | |
| | |
| | |
| |
| | |
As Reported | | |
Legacy Adjustments | | |
VAT
Adjustment (b) | | |
As Adjusted
non-GAAP | |
| Net revenues | |
| | | |
| | | |
| | | |
| | |
| Service fees and membership | |
$ | 616 | | |
$ | | | |
$ | | | |
$ | 616 | |
| Vacation ownership interest sales | |
| 382 | | |
| | | |
| | | |
| 382 | |
| Franchise fees | |
| 166 | | |
| | | |
| | | |
| 166 | |
| Consumer financing | |
| 106 | | |
| | | |
| | | |
| 106 | |
| Other | |
| 73 | | |
| | | |
| | | |
| 73 | |
| Net revenues | |
| 1,343 | | |
| - | | |
| - | | |
| 1,343 | |
| | |
| | | |
| | | |
| | | |
| | |
| Expenses | |
| | | |
| | | |
| | | |
| | |
| Operating | |
| 572 | | |
| | | |
| | | |
| 572 | |
| Cost of vacation ownership interests | |
| 42 | | |
| | | |
| | | |
| 42 | |
| Consumer financing interest | |
| 17 | | |
| | | |
| | | |
| 17 | |
| Marketing and reservation | |
| 206 | | |
| | | |
| | | |
| 206 | |
| General and administrative | |
| 181 | | |
| | | |
| 2 | | |
| 183 | |
| Depreciation and amortization | |
| 59 | | |
| | | |
| | | |
| 59 | |
| Total expenses | |
| 1,077 | | |
| - | | |
| 2 | | |
| 1,079 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 266 | | |
| - | | |
| (2 | ) | |
| 264 | |
| Other income, net | |
| (1 | ) | |
| | | |
| | | |
| (1 | ) |
| Interest expense | |
| 29 | | |
| | | |
| 2 | | |
| 31 | |
| Interest income | |
| (3 | ) | |
| | | |
| | | |
| (3 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Income before income taxes | |
| 241 | | |
| - | | |
| (4 | ) | |
| 237 | |
| Provision for income taxes | |
| 88 | | |
| 1 | (a) | |
| (2 | )(c) | |
| 87 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 153 | | |
$ | (1 | ) | |
$ | (2 | ) | |
$ | 150 | |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings per share | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 1.21 | | |
$ | - | | |
$ | (0.02 | ) | |
$ | 1.18 | |
| Diluted | |
| 1.20 | | |
| - | | |
| (0.02 | ) | |
| 1.17 | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares outstanding | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 127 | | |
| 127 | | |
| 127 | | |
| 127 | |
| Diluted | |
| 128 | | |
| 128 | | |
| 128 | | |
| 128 | |
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 the reversal of a state tax accrual. |
| (b) | Relates to the reversal of a reserve for value-added
taxes at the Company's vacation exchange and rentals business. |
| (c) | Relates to the tax effect of the adjustment. |
Table 8
(4 of 4)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
| | |
Six Months Ended June 30, 2014 | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
As Reported | | |
Executive
Departure
Costs (a) | | |
Venezuela
Currency
Devaluation (c) | | |
Legacy
Adjustments | | |
VAT
Adjustment (e) | | |
As Adjusted
non-GAAP | |
| Net revenues | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Service fees and membership | |
$ | 1,205 | | |
$ | | | |
$ | | | |
$ | | | |
$ | | | |
$ | 1,205 | |
| Vacation ownership interest sales | |
| 685 | | |
| | | |
| | | |
| | | |
| | | |
| 685 | |
| Franchise fees | |
| 293 | | |
| | | |
| | | |
| | | |
| | | |
| 293 | |
| Consumer financing | |
| 211 | | |
| | | |
| | | |
| | | |
| | | |
| 211 | |
| Other | |
| 142 | | |
| | | |
| | | |
| | | |
| | | |
| 142 | |
| Net revenues | |
| 2,536 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,536 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating | |
| 1,106 | | |
| | | |
| (10 | ) | |
| | | |
| | | |
| 1,096 | |
| Cost of vacation ownership interests | |
| 81 | | |
| | | |
| | | |
| | | |
| | | |
| 81 | |
| Consumer financing interest | |
| 35 | | |
| | | |
| | | |
| | | |
| | | |
| 35 | |
| Marketing and reservation | |
| 387 | | |
| | | |
| | | |
| | | |
| | | |
| 387 | |
| General and administrative | |
| 376 | | |
| (4 | ) | |
| | | |
| | | |
| 2 | | |
| 374 | |
| Depreciation and amortization | |
| 115 | | |
| | | |
| | | |
| | | |
| | | |
| 115 | |
| Total expenses | |
| 2,100 | | |
| (4 | ) | |
| (10 | ) | |
| - | | |
| 2 | | |
| 2,088 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 436 | | |
| 4 | | |
| 10 | | |
| - | | |
| (2 | ) | |
| 448 | |
| Other income, net | |
| (5 | ) | |
| | | |
| | | |
| | | |
| | | |
| (5 | ) |
| Interest expense | |
| 56 | | |
| | | |
| | | |
| | | |
| 2 | | |
| 58 | |
| Interest income | |
| (5 | ) | |
| | | |
| | | |
| | | |
| | | |
| (5 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income before income taxes | |
| 390 | | |
| 4 | | |
| 10 | | |
| - | | |
| (4 | ) | |
| 400 | |
| Provision for income taxes | |
| 146 | | |
| 1 | (b) | |
| 1 | (b) | |
| 1 | (d) | |
| (2 | )(b) | |
| 147 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
| 244 | | |
| 3 | | |
| 9 | | |
| (1 | ) | |
| (2 | ) | |
| 253 | |
| Net loss attributable to noncontrolling interest | |
| (1 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income attributable to Wyndham shareholders | |
$ | 243 | | |
$ | 3 | | |
$ | 9 | | |
$ | (1 | ) | |
$ | (2 | ) | |
$ | 252 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Earnings per share | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | 1.91 | | |
$ | 0.02 | | |
$ | 0.07 | | |
$ | - | | |
$ | (0.02 | ) | |
$ | 1.98 | |
| Diluted | |
| 1.89 | | |
| 0.02 | | |
| 0.07 | | |
| - | | |
| (0.02 | ) | |
| 1.96 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average shares outstanding | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 127 | | |
| 127 | | |
| 127 | | |
| 127 | | |
| 127 | | |
| 127 | |
| Diluted | |
| 129 | | |
| 129 | | |
| 129 | | |
| 129 | | |
| 129 | | |
| 129 | |
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) | Related 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. |
| (d) | Relates to the reversal of a state tax accrual. |
| (e) | Relates to the reversal of a reserve for value-added
taxes at the Company's vacation exchange and rentals business. |
Table 9
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS AND FINANCIAL INFORMATION
(In millions)
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:
| | |
Six Months Ended June 30, | |
| | |
2015 | | |
2014 | |
| | |
| | |
| |
| Net cash provided by operating activities | |
$ | 737 | | |
$ | 793 | |
| Less: Property and equipment additions | |
| (112 | ) | |
| (98 | ) |
| Free cash flow | |
$ | 625 | | |
$ | 695 | |
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 (*) | |
$ | 390 | | |
$ | 502 | | |
| N/A | | |
| N/A | | |
| N/A | |
| Less: Sales under WAAM Fee-for-Service | |
| (21 | ) | |
| (26 | ) | |
| N/A | | |
| N/A | | |
| N/A | |
| Gross VOI sales, net of WAAM Fee-for-Service sales | |
| 369 | | |
| 477 | | |
| N/A | | |
| N/A | | |
| N/A | |
| Less: Loan loss provision | |
| (46 | ) | |
| (60 | ) | |
| N/A | | |
| N/A | | |
| N/A | |
| Plus: Impact of percentage-of-completion accounting | |
| 13 | | |
| - | | |
| N/A | | |
| N/A | | |
| N/A | |
| Vacation ownership interest sales (*) | |
$ | 336 | | |
$ | 417 | | |
| N/A | | |
| N/A | | |
| N/A | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2014 | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross VOI sales (*) | |
$ | 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 (*) | |
$ | 303 | | |
$ | 382 | | |
$ | 415 | | |
$ | 385 | | |
$ | 1,485 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2013 | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross VOI sales (*) | |
$ | 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 (*) | |
$ | 263 | | |
$ | 347 | | |
$ | 384 | | |
$ | 384 | | |
$ | 1,379 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2012 | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross VOI sales (*) | |
$ | 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 (*) | |
$ | 271 | | |
$ | 342 | | |
$ | 373 | | |
$ | 337 | | |
$ | 1,323 | |
Note: Amounts may not add due to rounding.
| (*) | 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 | | |
$ | 17 | | |
| N/A | | |
| N/A | | |
| N/A | |
| 2014 | |
$ | 25 | | |
$ | 21 | | |
$ | 27 | | |
$ | 24 | | |
$ | 97 | |
| 2013 | |
$ | 24 | | |
$ | 18 | | |
$ | 22 | | |
$ | 25 | | |
$ | 89 | |
| 2012 | |
$ | 27 | | |
$ | 20 | | |
$ | 22 | | |
$ | 28 | | |
$ | 97 | |
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