PARSIPPANY, N.J., April 26, 2016 /PRNewswire/ -- Wyndham Worldwide
Corporation (NYSE:WYN) today announced results for the three months
ended March 31, 2016.
HIGHLIGHTS:
- First quarter adjusted diluted earnings per share (EPS) was
$1.12, an increase of 9% from
$1.03 in the first quarter of 2015.
Reported diluted EPS was $0.84,
compared with $1.00 in the first
quarter of 2015.
- First quarter 2016 adjusted EBITDA increased 4%, or 6% on a
currency neutral basis and excluding acquisitions compared with the
first quarter of 2015.
- The Company repurchased 2.5 million shares of its common stock
for $175 million during the
quarter.
"We're off to a good start this year," said Stephen P. Holmes, chairman and CEO. "We
continue to execute and innovate across our businesses to drive
growth, profitability and shareholder value. Our businesses
are well positioned for long term growth and they are resilient,
regardless of economic and industry cycle dynamics. Of
course, disciplined capital allocation continues to be a hallmark
and commitment of our company."
FIRST QUARTER 2016 OPERATING RESULTS
First quarter revenues were $1.3
billion, an increase of 3% from the prior year
period.
First quarter adjusted EBITDA was $291
million, compared with $279
million in the prior year period, an increase of 4%.
Year-over-year adjusted EBITDA comparisons were adversely affected
by foreign currency effects of $6
million in 2016. On a currency-neutral basis and
excluding acquisitions, adjusted EBITDA increased 6%.
Adjusted net income was $127
million, or $1.12 per diluted
share, compared with $126 million, or
$1.03 per diluted share for the same
period in 2015. Adjusted net income and earnings per share
benefited from solid operating results, but were reduced by higher
interest expense and higher depreciation and amortization.
EPS also benefited from the Company's share repurchase
program.
Reported net income for the first quarter of 2016 was
$96 million, or $0.84 per diluted share, compared with
$122 million, or $1.00 per diluted share, for the first quarter of
2015. Reported net income in both periods reflects several
items excluded from adjusted net income. The net result of
these items unfavorably impacted first quarter 2016 net income by
$31 million and unfavorably impacted
first quarter 2015 net income by $4
million. Full reconciliations of adjusted net income
to GAAP results appear in Table 8 of this press release.
Free cash flow was $218 million
for the three months ended March 31,
2016, compared with $197
million for the same period in 2015. The increase
reflects solid operating results and the timing of capital
expenditures, partially offset by a $24
million unfavorable impact from the devaluation of the
Venezuelan currency. For the three months ended March 31, 2016, net cash provided by operating
activities was $261 million, compared
with $253 million in the prior year
period. The Company defines free cash flow as net cash
provided by operating activities less capital
expenditures.
FIRST QUARTER 2016 BUSINESS UNIT RESULTS
Hotel Group
Revenues were $295 million in the
first quarter of 2016, a 1% increase compared with the first
quarter 2015. Despite weaker RevPAR, adjusted EBITDA grew 6%
to $84 million reflecting growth in
our Wyndham Rewards credit card program, strong performance at our
owned hotels and expense management.
First quarter domestic RevPAR was flat. In constant
currency, total system-wide RevPAR declined 1.6% compared with the
first quarter of 2015, which reflects continued weakness in
domestic and Canadian oil markets and higher unit growth in lower
RevPAR countries such as China.
As of March 31, 2016, the
Company's hotel system consisted of approximately 7,830 properties
and approximately 679,100 rooms, a 1.8% net room increase compared
with the first quarter of 2015. The development pipeline
included over 1,000 hotels and over 124,000 rooms, of which 61%
were international and 65% were new construction.
Destination Network (formerly Vacation Exchange and
Rentals)
Revenues were $385 million in the
first quarter of 2016, a 4% increase compared with the first
quarter of 2015. In constant currency and excluding acquisitions,
revenues increased 5%.
Exchange revenues were $182
million, down 2% compared with the first quarter of 2015. In
constant currency, exchange revenues and exchange revenue per
member were flat, as was the average number of members.
Vacation rental revenues were $183
million, a 10% increase compared with the first quarter of
2015. In constant currency and excluding the impact of
acquisitions, vacation rental revenues were up 9%, reflecting a
7.0% increase in transaction volume and a 2.3% increase in average
net price per vacation rental.
Adjusted EBITDA for the first quarter of 2016 was $105 million, a 1% increase compared with the
first quarter of 2015. On a currency-neutral basis and
excluding the impact of acquisitions, adjusted EBITDA increased 3%
compared with the prior year period.
Vacation Ownership
Revenues were $641 million in the
first quarter of 2016, a 4% increase over the first quarter of
2015.
Gross VOI sales were $428 million
in the first quarter of 2016, an increase of 10% compared with the
first quarter of 2015. Volume per guest (VPG) for the quarter
increased 3.8% in constant currency and tour flow increased
6.5%.
EBITDA for the first quarter of 2016 was $136 million, an increase of 5% compared with the
first quarter of 2015, reflecting higher sales volume and stronger
resort management and consumer finance results, partially offset by
an increase in the provision for loan losses.
OTHER ITEMS
- The Company repurchased 2.5 million shares of common stock for
$175 million during the first quarter
of 2016. From April 1 through April
25, 2016, the Company repurchased an additional 0.6 million
shares for $45 million.
- Reported net interest expense in the first quarter of 2016 was
$31 million, compared with
$23 million in the first quarter of
2015, reflecting the $350 million
5.10% bond issued in September 2015
and the absence of a fixed-to-floating interest rate swap
terminated in 2015.
- Depreciation and amortization in the first quarter of 2016 was
$62 million, compared with
$56 million in the first quarter of
2015, reflecting new projects that were placed into
service.
Balance Sheet Information as March 31,
2016:
- Cash and cash equivalents of $318
million, compared with $171
million at December 31,
2015
- Vacation ownership contract receivables, net, of $2.7 billion, unchanged from December 31, 2015
- Vacation ownership and other inventory of $1.3 billion, unchanged from December 31, 2015
- Securitized vacation ownership debt of $2.1 billion, unchanged from December 31, 2015
- Long-term debt of $3.3 billion,
compared with $3.1 billion at
December 31, 2015. The remaining
borrowing capacity on the revolving credit facility, net of
commercial paper borrowings, was $1.1
billion as of March 31, 2016,
compared with $1.4 billion at
December 31, 2015.
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 2016, the Company reiterates the following
guidance:
- Revenues of approximately $5.800 -
$5.950 billion.
- Adjusted EBITDA of approximately $1.375
- $1.400 billion.
For the full year 2016, the Company updates the following
guidance:
- Adjusted diluted EPS of approximately $5.61 - $5.75 based on a diluted share count of
113 million, up from $5.46 - $5.60
based on a diluted share count of 116 million.
The Company will post guidance information on its website
following the conference call.
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 26, 2016 at
8:30 a.m. ET. Listeners can access
the webcast live through the company's website at
http://www.wyndhamworldwide.com/investors/. The conference
call may also be accessed by dialing 877-876-9177 and providing the
pass code "WYNDHAM." Listeners are urged to call at least 10
minutes prior to the scheduled start time. An archive of this
webcast will be available on the website for approximately 90 days
beginning at 12:00pm ET on
April 26, 2016. A telephone
replay will be available for approximately 10 days beginning at
12:00pm ET on April 26, 2016 at 800-723-5154.
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 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
Wyndham Worldwide (NYSE: WYN) is one of the largest global
hospitality companies, providing travelers with access to a
collection of trusted hospitality brands in hotels, vacation
ownership, and unique accommodations including vacation exchange,
holiday parks, and managed home rentals. With a collective
inventory of more than 120,000 places to stay across 100 countries
on six continents, Wyndham Worldwide and its 38,000 associates
welcomes people to experience travel the way they want. This is
enhanced by Wyndham Rewards®, the Company's re-imagined guest
loyalty program across its businesses, which is making it simpler
for members to earn more rewards and redeem their points faster.
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 12,
2016. 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 revenues) 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, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Hotel
Group
|
$
|
295
|
|
$
|
84
|
|
$
|
292
|
|
$
|
76
|
|
|
Destination
Network
|
|
385
|
|
|
81
|
|
|
369
|
|
|
105
|
|
|
Vacation
Ownership
|
|
641
|
|
|
136
|
|
|
617
|
|
|
130
|
|
|
Total Reportable
Segments
|
|
1,321
|
|
|
301
|
|
|
1,278
|
|
|
311
|
|
|
Corporate and Other
(a)
|
|
(18)
|
|
|
(34)
|
|
|
(16)
|
|
|
(34)
|
|
|
Total Company
|
$
|
1,303
|
|
$
|
267
|
|
$
|
1,262
|
|
$
|
277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
EBITDA
|
|
|
|
|
$
|
267
|
|
|
|
|
$
|
277
|
|
|
Depreciation and
amortization
|
|
|
|
|
62
|
|
|
|
|
|
56
|
|
|
Interest
expense
|
|
|
|
|
33
|
|
|
|
|
|
26
|
|
|
Early extinguishment
of debt
|
|
|
|
|
11
|
|
|
|
|
|
-
|
|
|
Interest
income
|
|
|
|
|
(2)
|
|
|
|
|
|
(3)
|
|
|
Income before income
taxes
|
|
|
|
|
163
|
|
|
|
|
|
198
|
|
|
Provision for income
taxes
|
|
|
|
|
67
|
|
|
|
|
|
76
|
|
|
Net income
|
|
|
|
|
$
|
96
|
|
|
|
|
$
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2016
and 2015 (for a description of adjustments by segment, see Table
7):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
|
Hotel
Group
|
$
|
295
|
|
$
|
84
|
|
$
|
292
|
|
$
|
79
|
|
|
Destination
Network
|
|
385
|
|
|
105
|
|
|
369
|
|
|
104
|
|
|
Vacation
Ownership
|
|
641
|
|
|
136
|
|
|
617
|
|
|
130
|
|
|
Total Reportable
Segments
|
|
1,321
|
|
|
325
|
|
|
1,278
|
|
|
313
|
|
|
Corporate and
Other
|
|
(18)
|
|
|
(34)
|
|
|
(16)
|
|
|
(34)
|
|
|
Total Company
|
$
|
1,303
|
|
$
|
291
|
|
$
|
1,262
|
|
$
|
279
|
|
|
|
|
|
|
|
|
|
Table
2
|
|
Wyndham Worldwide
Corporation
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2016
|
|
2015
|
|
Net
revenues
|
|
|
|
|
|
|
|
Service and
membership fees
|
|
$
|
634
|
|
$
|
599
|
|
Vacation ownership
interest sales
|
|
|
342
|
|
|
336
|
|
Franchise
fees
|
|
|
138
|
|
|
147
|
|
Consumer
financing
|
|
|
107
|
|
|
104
|
|
Other
|
|
|
|
82
|
|
|
76
|
|
Net
revenues
|
|
|
|
1,303
|
|
|
1,262
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Operating
|
|
|
613
|
|
|
564
|
|
Cost of vacation
ownership interests
|
|
|
37
|
|
|
33
|
|
Consumer financing
interest
|
|
|
18
|
|
|
18
|
|
Marketing and
reservation
|
|
|
192
|
|
|
195
|
|
General and
administrative
|
|
|
186
|
|
|
181
|
|
Restructuring
|
|
|
-
|
|
|
(1)
|
|
Depreciation and
amortization
|
|
|
62
|
|
|
56
|
|
Total
expenses
|
|
|
1,108
|
|
|
1,046
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
195
|
|
|
216
|
|
Other
(income)/expense, net
|
|
|
|
(10)
|
|
|
(5)
|
|
Interest
expense
|
|
|
|
33
|
|
|
26
|
|
Early extinguishment
of debt
|
|
|
|
11
|
|
|
-
|
|
Interest
income
|
|
|
|
(2)
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
|
163
|
|
|
198
|
|
Provision for income
taxes
|
|
|
|
67
|
|
|
76
|
|
Net
income
|
|
|
$
|
96
|
|
$
|
122
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.85
|
|
$
|
1.01
|
|
Diluted
|
|
|
0.84
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
|
|
|
113
|
|
|
121
|
|
Diluted
|
|
|
114
|
|
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Hotel Group
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Rooms
|
2016
|
|
679,100
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
|
667,400
|
|
668,500
|
|
671,900
|
|
678,000
|
|
N/A
|
|
|
|
|
|
|
2014
|
|
646,900
|
|
650,200
|
|
655,300
|
|
660,800
|
|
N/A
|
|
|
|
|
|
|
2013
|
|
631,800
|
|
635,100
|
|
638,300
|
|
645,400
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR
|
2016
|
$
|
31.59
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
$
|
32.84
|
$
|
39.82
|
$
|
43.34
|
$
|
32.98
|
$
|
37.26
|
|
|
|
|
|
|
2014
|
$
|
32.30
|
$
|
40.11
|
$
|
43.71
|
$
|
34.06
|
$
|
37.57
|
|
|
|
|
|
|
2013
|
$
|
31.05
|
$
|
38.00
|
$
|
41.78
|
$
|
33.07
|
$
|
36.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Destination
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of
Members (in 000s)
|
2016
|
|
3,841
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
|
3,822
|
|
3,831
|
|
3,835
|
|
3,836
|
|
3,831
|
|
|
|
|
|
|
2014
|
|
3,727
|
|
3,748
|
|
3,777
|
|
3,808
|
|
3,765
|
|
|
|
|
|
|
2013
|
|
3,668
|
|
3,686
|
|
3,711
|
|
3,728
|
|
3,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Revenue Per
Member
|
2016
|
$
|
189.78
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
$
|
194.06
|
$
|
167.81
|
$
|
163.38
|
$
|
152.00
|
$
|
169.29
|
|
|
|
|
|
|
2014
|
$
|
200.78
|
$
|
179.17
|
$
|
171.77
|
$
|
157.24
|
$
|
177.12
|
|
|
|
|
|
|
2013
|
$
|
210.96
|
$
|
182.42
|
$
|
169.95
|
$
|
161.21
|
$
|
181.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Rental
Transactions (in 000s) (a) (b)
|
2016
|
|
500
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
|
459
|
|
390
|
|
462
|
|
319
|
|
1,630
|
|
|
|
|
|
|
2014
|
|
429
|
|
376
|
|
455
|
|
293
|
|
1,552
|
|
|
|
|
|
|
2013
|
|
423
|
|
355
|
|
433
|
|
273
|
|
1,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Net Price Per
Vacation Rental(a) (b)
|
2016
|
$
|
366.08
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
$
|
361.20
|
$
|
513.14
|
$
|
642.00
|
$
|
452.19
|
$
|
494.92
|
|
|
|
|
|
|
2014
|
$
|
410.04
|
$
|
577.13
|
$
|
727.40
|
$
|
492.25
|
$
|
558.95
|
|
|
|
|
|
|
2013
|
$
|
392.64
|
$
|
540.38
|
$
|
677.81
|
$
|
506.62
|
$
|
532.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Vacation
Ownership Interest (VOI) Sales (in 000s) (c)
|
2016
|
$
|
428,000
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
$
|
390,000
|
$
|
502,000
|
$
|
565,000
|
$
|
507,000
|
$
|
1,965,000
|
|
|
|
|
|
|
2014
|
$
|
410,000
|
$
|
496,000
|
$
|
513,000
|
$
|
470,000
|
$
|
1,889,000
|
|
|
|
|
|
|
2013
|
$
|
384,000
|
$
|
481,000
|
$
|
536,000
|
$
|
488,000
|
$
|
1,889,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tours (in
000s)
|
2016
|
|
179
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
|
168
|
|
206
|
|
227
|
|
200
|
|
801
|
|
|
|
|
|
|
2014
|
|
170
|
|
208
|
|
225
|
|
191
|
|
794
|
|
|
|
|
|
|
2013
|
|
163
|
|
206
|
|
225
|
|
195
|
|
789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume Per Guest
(VPG)
|
2016
|
$
|
2,244
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
$
|
2,177
|
$
|
2,353
|
$
|
2,354
|
$
|
2,390
|
$
|
2,326
|
|
|
|
|
|
|
2014
|
$
|
2,272
|
$
|
2,280
|
$
|
2,158
|
$
|
2,336
|
$
|
2,257
|
|
|
|
|
|
|
2013
|
$
|
2,211
|
$
|
2,256
|
$
|
2,278
|
$
|
2,370
|
$
|
2,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 destination network 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. (See Table 9 for a
reconciliation of Gross VOI sales to vacation ownership interest
sales).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full
Year
|
|
Hotel
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Properties
|
2016
|
|
7,830
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
|
7,670
|
|
7,700
|
|
7,760
|
|
7,810
|
|
N/A
|
|
|
|
|
|
|
2014
|
|
7,500
|
|
7,540
|
|
7,590
|
|
7,650
|
|
N/A
|
|
|
|
|
|
|
2013
|
|
7,380
|
|
7,410
|
|
7,440
|
|
7,490
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan
Losses (in 000s)
(*)
|
2016
|
$
|
63,000
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
2015
|
$
|
46,000
|
$
|
60,000
|
$
|
78,000
|
$
|
64,000
|
$
|
248,000
|
|
|
|
|
|
|
2014
|
$
|
60,000
|
$
|
70,000
|
$
|
70,000
|
$
|
60,000
|
$
|
260,000
|
|
|
|
|
|
|
2013
|
$
|
84,000
|
$
|
90,000
|
$
|
102,000
|
$
|
73,000
|
$
|
349,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Rooms:
Represents the number of rooms at hotel group 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Destination
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 in connection with customers booking their vacation
rental stays through one of our vacation brands.
One rental transaction is recorded for each standard one-week
rental.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Net Price Per
Vacation Rental: Represents the net rental price generated from
renting vacation properties to customers and other related rental
servicing fees divided by the number of
vacation rental transactions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Vacation
Ownership Interest Sales: Represents sales of vacation ownership
interest (VOIs), including 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
2013-2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
|
Hotel
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and
Franchise Fees
|
|
$
|
74
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
$
|
74
|
$
|
96
|
$
|
103
|
$
|
87
|
$
|
361
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
|
83
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
96
|
|
108
|
|
112
|
|
92
|
|
407
|
|
Hotel Management
Reimbursable Revenues (b)
|
|
67
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
61
|
|
71
|
|
73
|
|
68
|
|
273
|
|
Intersegment
Trademark Fees
|
|
|
13
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
12
|
|
15
|
|
16
|
|
15
|
|
57
|
|
Owned Hotel
Revenues
|
|
|
27
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
25
|
|
20
|
|
16
|
|
19
|
|
79
|
|
Ancillary Revenues
(c)
|
|
|
31
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
24
|
|
24
|
|
37
|
|
33
|
|
120
|
|
Total Hotel
Group
|
|
|
295
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
292
|
|
334
|
|
357
|
|
314
|
|
1,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Destination
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
|
|
182
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
185
|
|
161
|
|
157
|
|
146
|
|
649
|
|
Rental
Revenues
|
|
|
183
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
166
|
|
200
|
|
296
|
|
144
|
|
807
|
|
Ancillary Revenues
(d)
|
|
|
20
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
18
|
|
22
|
|
23
|
|
20
|
|
82
|
|
Total Destination
Network
|
|
|
385
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
369
|
|
383
|
|
476
|
|
310
|
|
1,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership
Interest Sales
|
|
|
342
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
336
|
|
417
|
|
448
|
|
403
|
|
1,604
|
|
Consumer
Financing
|
|
|
107
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
104
|
|
105
|
|
108
|
|
109
|
|
427
|
|
Property Management
Fees and Reimbursable Revenues
|
|
164
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
153
|
|
149
|
|
159
|
|
155
|
|
615
|
|
WAAM Fee-for-Service
Commissions
|
|
17
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
12
|
|
19
|
|
23
|
|
28
|
|
83
|
|
Ancillary Revenues
(e)
|
|
|
11
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
12
|
|
9
|
|
12
|
|
11
|
|
43
|
|
Total Vacation
Ownership
|
|
|
641
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
617
|
|
699
|
|
750
|
|
706
|
|
2,772
|
|
Total Reportable
Segments
|
|
$
|
1,321
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
$
|
1,278
|
$
|
1,416
|
$
|
1,583
|
$
|
1,330
|
$
|
5,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year
|
|
Hotel
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties and
Franchise Fees
|
|
$
|
68
|
$
|
88
|
$
|
100
|
$
|
83
|
$
|
339
|
|
$
|
64
|
$
|
79
|
$
|
91
|
$
|
75
|
$
|
309
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
|
76
|
|
101
|
|
117
|
|
91
|
|
385
|
|
|
73
|
|
92
|
|
118
|
|
83
|
|
365
|
|
Hotel Management
Reimbursable Revenues (b)
|
|
37
|
|
39
|
|
39
|
|
39
|
|
154
|
|
|
25
|
|
38
|
|
37
|
|
35
|
|
135
|
|
Intersegment
Trademark Fees
|
|
|
9
|
|
11
|
|
11
|
|
10
|
|
41
|
|
|
8
|
|
10
|
|
11
|
|
10
|
|
39
|
|
Owned Hotel
Revenues
|
|
|
24
|
|
20
|
|
18
|
|
20
|
|
81
|
|
|
26
|
|
20
|
|
18
|
|
19
|
|
84
|
|
Ancillary Revenues
(c)
|
|
|
23
|
|
24
|
|
30
|
|
24
|
|
101
|
|
|
26
|
|
23
|
|
22
|
|
23
|
|
95
|
|
Total Hotel
Group
|
|
|
237
|
|
283
|
|
315
|
|
267
|
|
1,101
|
|
|
222
|
|
262
|
|
297
|
|
245
|
|
1,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Destination
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
|
|
187
|
|
168
|
|
162
|
|
150
|
|
667
|
|
|
193
|
|
168
|
|
158
|
|
150
|
|
669
|
|
Rental
Revenues
|
|
|
176
|
|
217
|
|
331
|
|
144
|
|
868
|
|
|
166
|
|
192
|
|
293
|
|
138
|
|
789
|
|
Ancillary Revenues
(d)
|
|
|
16
|
|
17
|
|
19
|
|
17
|
|
69
|
|
|
15
|
|
16
|
|
19
|
|
17
|
|
68
|
|
Total Destination
Network
|
|
|
379
|
|
402
|
|
512
|
|
311
|
|
1,604
|
|
|
374
|
|
376
|
|
470
|
|
305
|
|
1,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership
Interest Sales
|
|
|
303
|
|
382
|
|
415
|
|
385
|
|
1,485
|
|
|
263
|
|
347
|
|
384
|
|
384
|
|
1,379
|
|
Consumer
Financing
|
|
|
105
|
|
106
|
|
108
|
|
108
|
|
427
|
|
|
105
|
|
106
|
|
107
|
|
108
|
|
426
|
|
Property Management
Fees
|
|
|
143
|
|
145
|
|
150
|
|
142
|
|
581
|
|
|
146
|
|
141
|
|
143
|
|
137
|
|
567
|
|
WAAM Fee-for-Service
Commissions
|
|
33
|
|
30
|
|
18
|
|
16
|
|
98
|
|
|
24
|
|
30
|
|
33
|
|
20
|
|
107
|
|
Ancillary Revenues
(e)
|
|
|
9
|
|
10
|
|
13
|
|
17
|
|
47
|
|
|
11
|
|
6
|
|
10
|
|
9
|
|
36
|
|
Total Vacation
Ownership
|
|
|
593
|
|
673
|
|
704
|
|
668
|
|
2,638
|
|
|
549
|
|
630
|
|
677
|
|
658
|
|
2,515
|
|
Total Reportable
Segments
|
|
$
|
1,209
|
$
|
1,358
|
$
|
1,531
|
$
|
1,246
|
$
|
5,343
|
|
$
|
1,145
|
$
|
1,268
|
$
|
1,444
|
$
|
1,208
|
$
|
5,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and managed properties
and fees related to our co-branded credit card program.
|
|
(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,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized vacation
ownership debt (a)
|
|
|
|
|
|
|
|
|
|
Term notes
|
$
|
2,005
|
|
$
|
1,867
|
|
$
|
2,062
|
|
Bank conduit facility
(b)
|
|
121
|
|
|
239
|
|
|
98
|
|
Total securitized
vacation ownership debt (c)
|
|
2,126
|
|
|
2,106
|
|
|
2,160
|
|
Less: Current portion
of securitized vacation ownership debt
|
|
207
|
|
|
209
|
|
|
217
|
|
Long-term securitized
vacation ownership debt
|
$
|
1,919
|
|
$
|
1,897
|
|
$
|
1,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
Revolving credit facility (due July 2020) (d)
|
$
|
10
|
|
$
|
7
|
|
$
|
14
|
|
Commercial paper (e)
|
|
343
|
|
|
109
|
|
|
346
|
|
Term loan
(due March 2021)
|
|
323
|
|
|
-
|
|
|
-
|
|
$315
million 6.00% senior unsecured notes (due December 2016)
|
|
-
|
|
|
316
|
|
|
316
|
|
$300
million 2.95% senior unsecured notes (due March 2017)
(f)
|
|
299
|
|
|
299
|
|
|
299
|
|
$14
million 5.75% senior unsecured notes (due February 2018)
|
|
14
|
|
|
14
|
|
|
14
|
|
$450
million 2.50% senior unsecured notes (due March 2018)
|
|
448
|
|
|
448
|
|
|
448
|
|
$40
million 7.375% senior unsecured notes (due March 2020)
|
|
40
|
|
|
40
|
|
|
40
|
|
$250
million 5.625% senior unsecured notes (due March 2021)
|
|
247
|
|
|
247
|
|
|
247
|
|
$650
million 4.25% senior unsecured notes (due March 2022)
|
|
648
|
|
|
648
|
|
|
649
|
|
$400
million 3.90% senior unsecured notes (due March 2023)
|
|
408
|
|
|
408
|
|
|
417
|
|
$350
million 5.10% senior unsecured notes (due October 2025)
|
|
337
|
|
|
337
|
|
|
-
|
|
Capital
leases
|
|
158
|
|
|
153
|
|
|
161
|
|
Other
|
|
31
|
|
|
49
|
|
|
70
|
|
Total long-term
debt
|
|
3,306
|
|
|
3,075
|
|
|
3,021
|
|
Less: Current portion
of long-term debt
|
|
45
|
|
|
44
|
|
|
53
|
|
Long-term
debt
|
$
|
3,261
|
|
$
|
3,031
|
|
$
|
2,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 non-
recourse debt that is securitized through the SPEs is legally not a
liability of the Company and thus, 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 2017 and borrowing capacity of $650 million. As of
March 31, 2016, this facility had a remaining borrowing
capacity
of $529 million.
|
|
(c)
|
This debt is
collateralized by $2,548 million, $2,576 million and $2,609, of
underlying vacation ownership contract receivables and related
assets as of March 31, 2016, December 31, 2015, and March 31,
2015.
respectively.
|
|
(d)
|
Represents a $1.5
billion revolving credit facility that expires in July 2020. As of
March 31, 2016, the Company had $1 million of outstanding letters
of credit. After considering outstanding commercial paper
borrowings of $343 million, the remaining borrowing capacity was
$1.1 billion as of March 31, 2016.
|
|
(e)
|
Represents commercial
paper programs of $1.25 billion with a remaining borrowing capacity
of $907 million as of March 31, 2016.
|
|
(f)
|
Classified as
long-term as the Company has the intent to refinance such debt on a
long-term basis and the ability to do so with its revolving credit
facility.
|
|
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
|
BRAND SYSTEM
DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the
Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
Average
Revenue
|
|
|
|
Number
of
|
|
Average
|
Average
Daily
|
Per
Available
|
|
Brand
|
Properties
|
Number of
Rooms
|
Occupancy
Rate
|
Rate
(ADR)
|
Room
(RevPAR)
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
|
|
|
|
|
Super
8
|
2,665
|
170,454
|
51.5%
|
$45.73
|
$23.54
|
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,791
|
143,212
|
44.3%
|
$63.81
|
$28.28
|
|
|
|
|
|
|
|
|
|
Ramada
|
837
|
117,409
|
49.0%
|
$73.76
|
$36.12
|
|
|
|
|
|
|
|
|
|
Wyndham Hotels and
Resorts
|
228
|
49,952
|
54.7%
|
$103.78
|
$56.73
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
381
|
41,555
|
44.1%
|
$59.74
|
$26.33
|
|
|
|
|
|
|
|
|
|
Baymont
|
416
|
33,070
|
44.9%
|
$66.07
|
$29.66
|
|
|
|
|
|
|
|
|
|
Travelodge
|
406
|
29,760
|
45.3%
|
$63.18
|
$28.63
|
|
|
|
|
|
|
|
|
|
Microtel Inns &
Suites by Wyndham
|
333
|
24,045
|
51.1%
|
$63.64
|
$32.52
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
381
|
23,258
|
41.5%
|
$48.76
|
$20.22
|
|
|
|
|
|
|
|
|
|
TRYP by
Wyndham
|
120
|
17,274
|
54.8%
|
$72.93
|
$39.97
|
|
|
|
|
|
|
|
|
|
Wingate by
Wyndham
|
149
|
13,610
|
56.3%
|
$86.52
|
$48.70
|
|
|
|
|
|
|
|
|
|
Hawthorn Suites by
Wyndham
|
105
|
10,466
|
62.3%
|
$82.76
|
$51.57
|
|
|
|
|
|
|
|
|
|
Dolce
|
22
|
5,080
|
45.5%
|
$152.13
|
$69.17
|
|
|
|
|
|
|
|
|
|
Total Hotel
Group
|
7,834
|
679,145
|
48.6%
|
$64.93
|
$31.59
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
Wyndham Vacation
Ownership resorts
|
216
|
24,442
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
Total Wyndham
Worldwide
|
8,050
|
703,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the
Three Months Ended March 31, 2015
|
|
|
|
|
|
|
|
Average
Revenue
|
|
|
|
Number
of
|
|
Average
|
Average
Daily
|
Per
Available
|
|
Brand
|
Properties
|
Number of
Rooms
|
Occupancy
Rate
|
Rate
(ADR)
|
Room
(RevPAR)
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
Wyndham Hotels
and Resorts
|
201
|
44,042
|
56.0%
|
$112.18
|
$62.85
|
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
419
|
45,588
|
44.1%
|
$62.50
|
$27.59
|
|
|
|
|
|
|
|
|
|
Baymont
|
373
|
30,012
|
47.0%
|
$65.21
|
$30.63
|
|
|
|
|
|
|
|
|
|
Travelodge
|
422
|
31,025
|
45.5%
|
$62.05
|
$28.24
|
|
|
|
|
|
|
|
|
|
Microtel Inns & Suites by
Wyndham
|
325
|
23,302
|
53.5%
|
$66.83
|
$35.73
|
|
|
|
|
|
|
|
|
|
Knights
Inn
|
392
|
24,476
|
44.1%
|
$45.16
|
$19.91
|
|
|
|
|
|
|
|
|
|
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 Hotel
Group
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
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
3)
|
|
Wyndham Worldwide
Corporation
|
|
NON-GAAP
RECONCILIATION
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venezuela
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Currency
|
|
Adjusted
|
|
Three months ended
March 31, 2016
|
|
Net
Revenues
|
|
EBITDA
|
|
Devaluation
(b)
|
|
EBITDA
|
|
Hotel
Group
|
|
|
$
|
295
|
|
$
|
84
|
|
$
|
-
|
|
$
|
84
|
|
Destination
Network
|
|
|
|
385
|
|
|
81
|
|
|
24
|
|
|
105
|
|
Vacation
Ownership
|
|
|
|
641
|
|
|
136
|
|
|
-
|
|
|
136
|
|
Total Reportable
Segments
|
|
|
1,321
|
|
|
301
|
|
|
24
|
|
|
325
|
|
Corporate and Other
(a)
|
|
|
|
(18)
|
|
|
(34)
|
|
|
-
|
|
|
(34)
|
|
Total
Company
|
|
|
$
|
1,303
|
|
$
|
267
|
|
$
|
24
|
|
$
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes the elimination of transactions between
segments.
|
|
(b) Represents the impact from the devaluation of the
exchange rate of Venezuela.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 of
3)
|
|
Wyndham Worldwide
Corporation
|
|
NON-GAAP
RECONCILIATION
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Legacy
|
|
Acquisition
|
|
Restructuring
|
|
Asset
|
|
Contract
|
|
Adjusted
|
|
Three months ended
March 31, 2015
|
|
Net
Revenues
|
|
EBITDA
|
|
Adjustments(b)
|
|
Costs
(c)
|
|
Costs
(d)
|
|
Impairment
(e)
|
|
Termination
(f)
|
|
EBITDA
|
|
Hotel
Group
|
|
|
$
|
292
|
|
$
|
76
|
|
$
|
-
|
|
$
|
3
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
79
|
|
Destination
Network
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
334
|
|
$
|
96
|
|
$
|
-
|
|
$
|
1
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
97
|
|
Destination
Network
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
357
|
|
$
|
83
|
|
$
|
-
|
|
$
|
-
|
|
$
|
4
|
|
$
|
7
|
|
$
|
14
|
|
$
|
108
|
|
Destination
Network
|
|
|
|
476
|
|
|
134
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
137
|
|
Vacation
Ownership
|
|
|
|
750
|
|
|
200
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
201
|
|
Total Reportable
Segments
|
|
|
1,583
|
|
|
417
|
|
|
-
|
|
|
-
|
|
|
8
|
|
|
7
|
|
|
14
|
|
|
446
|
|
Corporate and Other
(a)
|
|
|
|
(19)
|
|
|
(35)
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(34)
|
|
Total
Company
|
|
|
$
|
1,564
|
|
$
|
382
|
|
$
|
1
|
|
$
|
-
|
|
$
|
8
|
|
$
|
7
|
|
$
|
14
|
|
$
|
412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
314
|
|
$
|
94
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
93
|
|
Destination
Network
|
|
|
|
310
|
|
|
44
|
|
|
-
|
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
-
|
|
|
43
|
|
Vacation
Ownership
|
|
|
|
706
|
|
|
174
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
174
|
|
Total Reportable
Segments
|
|
|
1,330
|
|
|
312
|
|
|
-
|
|
|
-
|
|
|
(2)
|
|
|
-
|
|
|
-
|
|
|
310
|
|
Corporate and Other
(a)
|
|
|
|
(19)
|
|
|
(37)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(37)
|
|
Total
Company
|
|
|
$
|
1,311
|
|
$
|
275
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(2)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
1,297
|
|
$
|
349
|
|
$
|
-
|
|
$
|
3
|
|
$
|
3
|
|
$
|
7
|
|
$
|
14
|
|
$
|
376
|
|
Destination
Network
|
|
|
|
1,538
|
|
|
367
|
|
|
-
|
|
|
1
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
370
|
|
Vacation
Ownership
|
|
|
|
2,772
|
|
|
687
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
688
|
|
Total Reportable
Segments
|
|
|
5,607
|
|
|
1,403
|
|
|
-
|
|
|
4
|
|
|
6
|
|
|
7
|
|
|
14
|
|
|
1,434
|
|
Corporate and Other
(a)
|
|
|
|
(71)
|
|
|
(137)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(137)
|
|
Total
Company
|
|
|
$
|
5,536
|
|
$
|
1,266
|
|
$
|
-
|
|
$
|
4
|
|
$
|
6
|
|
$
|
7
|
|
$
|
14
|
|
$
|
1,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The sum
of the quarters may not agree to the twelve months ended December
31, 2015 due to rounding.
|
|
(a) Includes the elimination of transactions between
segments.
|
|
(b) Relates to the net (benefit)/expense from the
resolution of and adjustment to certain contingent liabilities and
assets resulting from our separation from Cendant.
|
|
(c) Relates primarily to costs incurred in connection
with the acquisition of Dolce Hotels and Resorts (January
2015).
|
|
(d) Relates to costs incurred as a result of various
organizational realignment initiatives and the reversal of a
portion of restructuring reserves that were established in prior
periods.
|
|
(e) Relates to a non-cash impairment charge related to
the write-down of terminated in-process technology projects
resulting from the Company's decision to outsource its reservation
system to a third-party provider.
|
|
(f) Relates to costs associated with the anticipated
termination of a management contract.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 of
3)
|
|
Wyndham Worldwide
Corporation
|
|
NON-GAAP
RECONCILIATION
|
|
ADDITIONAL DATA ON
SHARE-BASED COMPENSATION EXPENSE
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables
provide detail regarding share-based compensation expense which is
included within adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full
Year
|
|
Adjusted
EBITDA
|
|
$
|
291
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Share-based
compensation expense (*)
|
|
|
13
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Adjusted EBITDA
excluding share-based compensation expense
|
|
$
|
304
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full
Year
|
|
Adjusted
EBITDA
|
|
$
|
279
|
|
$
|
332
|
|
$
|
412
|
|
$
|
273
|
|
$
|
1,297
|
|
Share-based
compensation expense (*)
|
|
|
15
|
|
|
13
|
|
|
13
|
|
|
15
|
|
|
55
|
|
Adjusted EBITDA
excluding share-based compensation expense
|
|
$
|
294
|
|
$
|
345
|
|
$
|
425
|
|
$
|
288
|
|
$
|
1,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Full
year amounts may not add across due to rounding.
|
|
(*) Excludes share-based compensation expenses for which
there was no impact on EBITDA. Such costs amounted to $1 million
during Q1 2016 and $3 million for the full year 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 of
2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
|
NON-GAAP FINANCIAL
INFORMATION
|
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
|
|
|
|
|
Venezuela
|
|
Early
|
|
|
|
|
|
|
|
|
|
|
|
Currency
|
|
Extinguishment of
|
|
As
Adjusted
|
|
|
|
|
As
Reported
|
|
Devaluation
(a)
|
|
Debt(b)
|
|
non-GAAP
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and
membership fees
|
|
$
|
634
|
|
$
|
|
|
$
|
|
|
$
|
634
|
|
Vacation ownership
interest sales
|
|
|
342
|
|
|
|
|
|
|
|
|
342
|
|
Franchise
fees
|
|
|
138
|
|
|
|
|
|
|
|
|
138
|
|
Consumer
financing
|
|
|
107
|
|
|
|
|
|
|
|
|
107
|
|
Other
|
|
|
|
82
|
|
|
|
|
|
|
|
|
82
|
|
Net
revenues
|
|
|
1,303
|
|
|
-
|
|
|
-
|
|
|
1,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
613
|
|
|
(24)
|
|
|
|
|
|
589
|
|
Cost of vacation
ownership interests
|
|
|
37
|
|
|
|
|
|
|
|
|
37
|
|
Consumer financing
interest
|
|
|
18
|
|
|
|
|
|
|
|
|
18
|
|
Marketing and
reservation
|
|
|
192
|
|
|
|
|
|
|
|
|
192
|
|
General and
administrative
|
|
|
186
|
|
|
|
|
|
|
|
|
186
|
|
Depreciation and
amortization
|
|
|
62
|
|
|
|
|
|
|
|
|
62
|
|
Total
expenses
|
|
|
1,108
|
|
|
(24)
|
|
|
-
|
|
|
1,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
195
|
|
|
24
|
|
|
-
|
|
|
219
|
|
Other
(income)/expense, net
|
|
|
(10)
|
|
|
|
|
|
|
|
|
(10)
|
|
Interest
expense
|
|
|
33
|
|
|
|
|
|
|
|
|
33
|
|
Early extinguishment
of debt
|
|
|
11
|
|
|
|
|
|
(11)
|
|
|
-
|
|
Interest
income
|
|
|
(2)
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
163
|
|
|
24
|
|
|
11
|
|
|
198
|
|
Provision for income
taxes
|
|
|
67
|
|
|
-
|
|
|
4
|
(c)
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
|
96
|
|
$
|
24
|
|
$
|
7
|
|
$
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.85
|
|
$
|
0.21
|
|
$
|
0.06
|
|
$
|
1.13
|
|
Diluted
|
|
|
|
0.84
|
|
|
0.21
|
|
|
0.06
|
|
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
113
|
|
|
113
|
|
|
113
|
|
|
113
|
|
Diluted
|
|
|
|
114
|
|
|
114
|
|
|
114
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) Represents the impact from the devaluation of the
exchange rate of Venezuela at the Company's destination network
business.
|
|
(b) Represents costs incurred in connection with the
Company's early repurchase of its 6.0% senior unsecured
notes.
|
|
(c) 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, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
|
|
Restructuring
|
|
As
Adjusted
|
|
|
|
|
|
As
Reported
|
|
Costs(a)
|
|
Costs(c)
|
|
non-GAAP
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees and
membership
|
|
$
|
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)/expense, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EPS
amounts may not add due to rounding.
|
|
(a) Relates to costs incurred in connection with the
acquistion of Dolce Hotels and Resorts (January 2015) at the
Company's hotel group 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 a
restructuring reserve established during the fourth quarter of 2014
at the Company's destination network business.
|
|
(d) Relates to the tax effect of the
adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
261
|
|
|
$
|
253
|
|
|
|
|
|
Less: Property and
equipment additions
|
|
|
(43)
|
|
|
|
(56)
|
|
|
|
|
|
Free cash
flow
|
|
|
$
|
218
|
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI
sales
|
|
|
$
|
428
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Less: Sales under
WAAM Fee-for-Service
|
|
|
(23)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Gross VOI sales, net
of WAAM Fee-for-Service sales
|
|
|
405
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Less: Loan loss
provision
|
|
|
(63)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Plus: Impact of
percentage-of-completion accounting
|
|
|
-
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Vacation ownership
interest sales
|
|
$
|
342
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI
sales
|
|
|
$
|
390
|
$
|
502
|
$
|
565
|
$
|
507
|
$
|
1,965
|
|
Less: Sales under
WAAM Fee-for-Service
|
|
|
(21)
|
|
(26)
|
|
(37)
|
|
(42)
|
|
(126)
|
|
Gross VOI sales, net
of WAAM Fee-for-Service sales
|
|
|
369
|
|
477
|
|
528
|
|
464
|
|
1,838
|
|
Less: Loan loss
provision
|
|
|
(46)
|
|
(60)
|
|
(78)
|
|
(64)
|
|
(248)
|
|
Less: Impact of
percentage-of-completion accounting
|
|
|
13
|
|
-
|
|
(2)
|
|
2
|
|
13
|
|
Vacation ownership
interest sales
|
|
$
|
336
|
$
|
417
|
$
|
448
|
$
|
403
|
$
|
1,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
_____________
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
$
|
25
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
2015
|
|
$
|
24
|
$
|
17
|
$
|
32
|
$
|
27
|
$
|
100
|
|
2014
|
|
$
|
25
|
$
|
21
|
$
|
27
|
$
|
24
|
$
|
97
|
|
2013
|
|
$
|
24
|
$
|
18
|
$
|
22
|
$
|
25
|
$
|
89
|
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SOURCE Wyndham Worldwide Corporation