PARSIPPANY, N.J., July 27, 2016 /PRNewswire/ -- Wyndham Worldwide
Corporation (NYSE:WYN) today announced results for the three months
ended June 30, 2016.
Second quarter revenues were $1.4
billion, flat compared with the prior year period. In
constant currency and excluding acquisitions, revenues increased
1%.
Net income for the second quarter of 2016 was $156 million, or $1.39 per diluted share, compared with
$159 million, or $1.33 per diluted share, for the second quarter
of 2015. Adjusted net income for the second quarter of 2016
was $156 million, or $1.40 per diluted share, compared with
$159 million, or $1.32 per diluted share, for the second quarter
of 2015. Net income was impacted by higher interest expense
and depreciation, as well as a higher tax rate, which offset growth
in EBITDA. EPS benefited from the Company's share repurchase
program. Full reconciliations of adjusted net income and
adjusted EPS appear on table 7 of this press
release.
Second quarter EBITDA was $340
million, compared with $332
million in the prior year period, an increase of 2%.
On a currency-neutral basis and excluding acquisitions, adjusted
EBITDA increased 3%. Full reconciliations of EBITDA to net income
appear on Table 2 of this press release.
"In the second quarter, we continued to execute our strategy to
drive growth and free cash flow while maintaining our disciplined
capital allocation framework to enhance shareholder value," said
Stephen P. Holmes, chairman and CEO.
"We are looking ahead – making sure we continually innovate and
invest for the future in order to ensure strong, continued growth
in the years to come."
For the six months ended June 30,
2016, net cash provided by operating activities was
$706 million, compared with
$737 million in the prior year
period. The decrease reflects unfavorable currency movements
of $35 million, including a
$24 million devaluation of the
Venezuelan bolivar in the first quarter of 2016.
Free cash flow was $616 million
for the six months ended June 30,
2016, compared with $625
million for the same period in 2015, reflecting the changes
in net cash provided by operating activities highlighted above in
addition to the favorable timing of capital expenditures. The
Company defines free cash flow as net cash provided by operating
activities less capital expenditures as illustrated in Table 4 of
this press release.
SECOND QUARTER 2016 BUSINESS UNIT RESULTS
Hotel Group
Revenues were $334 million in the second quarter of 2016, flat
compared with the second quarter 2015. Revenues reflected
growth in royalties and the Company's Wyndham Rewards credit card
program, offset by the absence of pass-through revenues associated
with the Company's franchisee conference in the second quarter of
2015.
EBITDA grew 5% to $101 million,
reflecting growth in royalties and the Company's Wyndham Rewards
credit card program, and expense management.
Second quarter domestic RevPAR increased 2.0%. In constant
currency, total system-wide RevPAR declined by 0.6% compared with
the second 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 June 30, 2016, the Company's
hotel system consisted of approximately 7,880 properties and over
683,300 rooms, a 2.2% net room increase compared with the second
quarter of 2015. The development pipeline included over 1,000
hotels and approximately 128,000 rooms, of which 61% were
international and 66% were new construction.
Destination Network (formerly Vacation Exchange and
Rentals)
Revenues were $384
million in the second quarter of 2016, flat compared with
the second quarter of 2015. In constant currency and excluding
acquisitions, revenues increased 1%.
Exchange revenues were $159
million. In constant currency, exchange revenues grew 1% as
the average number of members increased 0.7% and exchange revenue
per member increased 0.3%.
Vacation rental revenues were $202
million. In constant currency and excluding the impact
of acquisitions, vacation rental revenues were up 1%, reflecting a
4.0% increase in transaction volume, partially offset by a 3.3%
decrease in average net price per vacation rental reflecting faster
growth in our more moderate product offerings.
EBITDA for the second quarter of 2016 was $85 million, a 1% increase compared with the
second quarter of 2015. On a currency-neutral basis and
excluding the impact of acquisitions, EBITDA increased 2% compared
with the prior year period, largely reflecting growth in rental
transactions and exchange members.
Vacation Ownership
Revenues were $705 million in the second quarter of 2016, a 1%
increase over the second quarter of 2015.
Net VOI sales declined by 2%, as higher gross VOI sales volume
was offset by an increase in the provision for loan losses, which
was in line with the Company's expectations.
Gross VOI sales were $518 million
in the second quarter of 2016, an increase of 3% compared with the
second quarter of 2015. Results reflect tour flow growth of
3.4%, partially offset by a volume per guest (VPG) decline of 0.8%
in constant currency, reflecting higher sales to new owners.
The number of new owners added increased 13% from the second
quarter of 2015.
EBITDA for the second quarter of 2016 was $187 million, an increase of 3% compared with the
second quarter of 2015, reflecting higher gross VOI sales, a lower
cost of sales and higher management fees, partially offset by an
increase in the provision for loan losses.
OTHER ITEMS
- The Company repurchased 2.1 million shares of common stock for
$150 million during the second
quarter of 2016. From July 1 through
July 26, 2016, the Company repurchased an additional 0.6
million shares for $42
million.
- Reported net interest expense in the second quarter of 2016 was
$32 million, compared with
$28 million in the second quarter of
2015, reflecting increased debt levels including 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 second quarter of 2016 was
$63 million, compared with
$58 million in the second quarter of
2015, reflecting new projects that were placed into
service.
Balance Sheet Information as June 30,
2016:
- Cash and cash equivalents of $478
million, compared with $171
million at December 31, 2015,
reflecting higher seasonal cash collections at the Company's
vacation rental businesses
- 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 $2.0 billion, compared with $2.1 billion at December
31, 2015
- Long-term debt of $3.4 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 June 30, 2016,
compared with $1.4 billion at
December 31, 2015.
A schedule of debt is included in Table 12 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.
Full reconciliations of the outlook for adjusted EBITDA,
adjusted net income and adjusted EPS to GAAP results appear in
Table 10 of this press release.
The Company provides the following guidance for the full year
2016:
- Revenues of approximately $5.650 -
$5.800 billion.
- Adjusted net income of approximately $635 - $651 million.
- Adjusted EBITDA of approximately $1.375
- $1.400 billion.
- Adjusted diluted EPS of approximately $5.68 - $5.82 based on a diluted share count of
112 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 Wednesday, July 27, 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 888-632-3384 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
July 27, 2016. A telephone
replay will be available for approximately 10 days beginning at
12:00pm ET on July 27, 2016 at 800-723-0394.
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 the Company's 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. A reconciliation of forecasted
adjusted EBITDA and adjusted EPS to the most directly comparable
GAAP measures is provided in Table 10 of this press release.
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.
Wyndham Worldwide
Corporation
|
Earnings Release
Schedules
|
Quarter Two - June
30, 2016
|
Table of
Contents
|
|
|
|
Table No.
|
|
|
Consolidated
Statements of Income (Unaudited)
|
1
|
|
|
Operating Results of
Reportable Segments
|
2
|
|
|
Operating
Statistics
|
3
|
|
|
Condensed
Consolidated Statements of Cash Flows and Reconciliation of Free
Cash Flows (Unaudited)
|
4
|
|
|
Revenue Detail by
Reportable Segment
|
5
|
|
|
Brand System
Details
|
6
|
|
|
Non-GAAP
Reconciliation of Adjusted Net Income and EPS
|
7
|
|
|
Non-GAAP
Reconciliation of Adjusted EBITDA by Reportable Segment
|
8
|
|
|
Non-GAAP
Reconciliation of Gross VOI Sales
|
9
|
|
|
Non-GAAP
Reconciliation of 2016 Outlook
|
10
|
|
|
Non-GAAP
Reconciliation - Constant Currency and Currency Neutral
|
11
|
|
|
Schedule of
Debt
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
1
|
Wyndham Worldwide
Corporation
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and
membership fees
|
|
$
|
632
|
|
$
|
623
|
|
$
|
1,266
|
|
$
|
1,223
|
|
Vacation ownership
interest sales
|
|
|
409
|
|
|
417
|
|
|
750
|
|
|
753
|
|
Franchise
fees
|
|
|
172
|
|
|
178
|
|
|
310
|
|
|
325
|
|
Consumer
financing
|
|
|
108
|
|
|
105
|
|
|
215
|
|
|
210
|
|
Other
|
|
|
|
82
|
|
|
75
|
|
|
165
|
|
|
150
|
Net
revenues
|
|
|
1,403
|
|
|
1,398
|
|
|
2,706
|
|
|
2,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
622
|
|
|
610
|
|
|
1,236
|
|
|
1,176
|
|
Cost of vacation
ownership interests
|
|
|
32
|
|
|
47
|
|
|
68
|
|
|
80
|
|
Consumer financing
interest
|
|
|
19
|
|
|
19
|
|
|
36
|
|
|
36
|
|
Marketing and
reservation
|
|
|
211
|
|
|
211
|
|
|
403
|
|
|
406
|
|
General and
administrative
|
|
|
185
|
|
|
182
|
|
|
372
|
|
|
362
|
|
Depreciation and
amortization
|
|
|
63
|
|
|
58
|
|
|
125
|
|
|
114
|
Total
expenses
|
|
|
1,132
|
|
|
1,127
|
|
|
2,240
|
|
|
2,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
271
|
|
|
271
|
|
|
466
|
|
|
487
|
Other
(income)/expense, net
|
|
|
(6)
|
|
|
(3)
|
|
|
(16)
|
|
|
(8)
|
Interest
expense
|
|
|
34
|
|
|
30
|
|
|
68
|
|
|
56
|
Early extinguishment
of debt
|
|
|
-
|
|
|
-
|
|
|
11
|
|
|
-
|
Interest
income
|
|
|
(2)
|
|
|
(2)
|
|
|
(4)
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
245
|
|
|
246
|
|
|
407
|
|
|
444
|
Provision for income
taxes
|
|
|
89
|
|
|
87
|
|
|
156
|
|
|
162
|
Net
income
|
|
|
$
|
156
|
|
$
|
159
|
|
$
|
251
|
|
$
|
282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.40
|
|
$
|
1.34
|
|
$
|
2.25
|
|
$
|
2.35
|
|
Diluted
|
|
|
1.39
|
|
|
1.33
|
|
|
2.23
|
|
|
2.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
111
|
|
|
119
|
|
|
112
|
|
|
120
|
|
Diluted
|
|
|
112
|
|
|
120
|
|
|
113
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: For a
description of adjustments to Net Income, see Table 7.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 revenues) and income taxes, each of which is presented on
the Company's Consolidated Statements of Income. The Company
also uses adjusted EBITDA as a financial measure. The Company
believes that EBITDA and Adjusted EBITDA are useful measures of
assessing performance of the Company and for the Company's segments
which, when considered with GAAP measures, give a more complete
understanding of its operating performance and assist our investors
in evaluating our ongoing operating performance for the current
reporting period and, where provided, over different reporting
periods, by adjusting for certain items which may be recurring or
nonrecurring and which in our view do not necessarily reflect
ongoing operating performance. We also internally use these
measures to assess our operating performance, both in absolute
terms and in comparison to other companies, and in evaluating or
making selected compensation decisions. These supplemental
disclosures are in addition to GAAP reported measures. The
Company's presentation of EBITDA and Adjusted 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, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
Hotel
Group
|
$
|
334
|
|
$
|
101
|
|
$
|
334
|
|
$
|
96
|
|
Destination
Network
|
|
384
|
|
|
85
|
|
|
383
|
|
|
84
|
|
Vacation
Ownership
|
|
705
|
|
|
187
|
|
|
699
|
|
|
182
|
|
Total Reportable
Segments
|
|
1,423
|
|
|
373
|
|
|
1,416
|
|
|
362
|
|
Corporate and Other
(a)
|
|
(20)
|
|
|
(33)
|
|
|
(18)
|
|
|
(30)
|
|
Total Company
|
$
|
1,403
|
|
$
|
340
|
|
$
|
1,398
|
|
$
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
EBITDA
|
|
|
|
|
$
|
340
|
|
|
|
|
$
|
332
|
|
Depreciation and
amortization
|
|
|
|
|
63
|
|
|
|
|
|
58
|
|
Interest
expense
|
|
|
|
|
34
|
|
|
|
|
|
30
|
|
Interest
income
|
|
|
|
|
(2)
|
|
|
|
|
|
(2)
|
|
Income before income
taxes
|
|
|
|
|
245
|
|
|
|
|
|
246
|
|
Provision for income
taxes
|
|
|
|
|
89
|
|
|
|
|
|
87
|
|
Net income
|
|
|
|
|
$
|
156
|
|
|
|
|
$
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2016 and
2015 (for a description of adjustments and reconciliation by
segment, see Table 8):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
Hotel
Group
|
$
|
334
|
|
$
|
101
|
|
$
|
334
|
|
$
|
97
|
|
Destination
Network
|
|
384
|
|
|
85
|
|
|
383
|
|
|
84
|
|
Vacation
Ownership
|
|
705
|
|
|
187
|
|
|
699
|
|
|
182
|
|
Total Reportable
Segments
|
|
1,423
|
|
|
373
|
|
|
1,416
|
|
|
363
|
|
Corporate and
Other
|
|
(20)
|
|
|
(33)
|
|
|
(18)
|
|
|
(31)
|
|
Total Company
|
$
|
1,403
|
|
$
|
340
|
|
$
|
1,398
|
|
$
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 for the six
months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
Hotel
Group
|
$
|
629
|
|
$
|
185
|
|
$
|
626
|
|
$
|
172
|
|
Destination
Network
|
|
768
|
|
|
166
|
|
|
752
|
|
|
189
|
|
Vacation
Ownership
|
|
1,345
|
|
|
323
|
|
|
1,316
|
|
|
313
|
|
Total Reportable
Segments
|
|
2,742
|
|
|
674
|
|
|
2,694
|
|
|
674
|
|
Corporate and Other
(a)
|
|
(36)
|
|
|
(67)
|
|
|
(33)
|
|
|
(65)
|
|
Total Company
|
$
|
2,706
|
|
$
|
607
|
|
$
|
2,661
|
|
$
|
609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
EBITDA
|
|
|
|
|
$
|
607
|
|
|
|
|
$
|
609
|
|
Depreciation and
amortization
|
|
|
|
|
125
|
|
|
|
|
|
114
|
|
Interest
expense
|
|
|
|
|
68
|
|
|
|
|
|
56
|
|
Early extinguishment
of debt
|
|
|
|
|
11
|
|
|
|
|
|
-
|
|
Interest
income
|
|
|
|
|
(4)
|
|
|
|
|
|
(5)
|
|
Income before income
taxes
|
|
|
|
|
407
|
|
|
|
|
|
444
|
|
Provision for income
taxes
|
|
|
|
|
156
|
|
|
|
|
|
162
|
|
Net income
|
|
|
|
|
$
|
251
|
|
|
|
|
$
|
282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2016 and 2015
(for a description of adjustments and reconciliation by segment,
see Table 8):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Adjusted
|
|
|
|
Adjusted
|
|
|
|
|
Net
Revenues
|
|
EBITDA
|
|
Net
Revenues
|
|
EBITDA
|
|
Hotel
Group
|
$
|
629
|
|
$
|
185
|
|
$
|
626
|
|
$
|
175
|
|
Destination
Network
|
|
768
|
|
|
190
|
|
|
752
|
|
|
189
|
|
Vacation
Ownership
|
|
1,345
|
|
|
323
|
|
|
1,316
|
|
|
313
|
|
Total Reportable
Segments
|
|
2,742
|
|
|
698
|
|
|
2,694
|
|
|
677
|
|
Corporate and
Other
|
|
(36)
|
|
|
(66)
|
|
|
(33)
|
|
|
(66)
|
|
Total Company
|
$
|
2,706
|
|
$
|
632
|
|
$
|
2,661
|
|
$
|
611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
683,300
|
|
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
|
$
|
39.10
|
|
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
|
|
3,857
|
|
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
|
$
|
164.61
|
|
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
|
|
409
|
|
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
|
$
|
492.83
|
|
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
|
$
|
518,000
|
|
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
|
|
213
|
|
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
|
$
|
2,328
|
|
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
|
|
7,880
|
|
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
|
$
|
90,000
|
|
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. We
believe gross VOI sales provide an enhanced understanding of the
performance of our vacation ownership business because it directly
measures the sales volume of this business during a given reporting
period. 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
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS AND RECONCILIATION OF FREE
CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows:
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2015
|
Net cash provided by
operating activities
|
|
$
|
706
|
|
$
|
737
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(140)
|
|
|
(233)
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
(251)
|
|
|
(269)
|
|
|
|
|
|
|
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
|
|
(8)
|
|
|
(8)
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
$
|
307
|
|
$
|
227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 measures 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,
|
|
|
|
2016
|
|
2015
|
Net cash provided by
operating activities
|
|
$
|
706
|
|
$
|
737
|
Less: Property and
equipment additions
|
|
|
(90)
|
|
|
(112)
|
Free cash
flow
|
|
|
$
|
616
|
|
$
|
625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
94
|
|
N/A
|
|
N/A
|
|
N/A
|
|
$
|
74
|
$
|
96
|
$
|
103
|
$
|
87
|
$
|
361
|
|
Marketing,
Reservation and Wyndham Rewards Revenues (a)
|
|
83
|
|
103
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
96
|
|
108
|
|
112
|
|
92
|
|
407
|
|
Hotel Management
Reimbursable Revenues (b)
|
|
67
|
|
71
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
61
|
|
71
|
|
73
|
|
68
|
|
273
|
|
Intersegment
Trademark Fees
|
|
|
13
|
|
15
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
12
|
|
15
|
|
16
|
|
15
|
|
57
|
|
Owned Hotel
Revenues
|
|
|
27
|
|
19
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
25
|
|
20
|
|
16
|
|
19
|
|
79
|
|
Ancillary Revenues
(c)
|
|
|
31
|
|
32
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
24
|
|
24
|
|
37
|
|
33
|
|
120
|
|
Total Hotel
Group
|
|
|
295
|
|
334
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
292
|
|
334
|
|
357
|
|
314
|
|
1,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Destination
Network
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Revenues
|
|
|
182
|
|
159
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
185
|
|
161
|
|
157
|
|
146
|
|
649
|
|
Rental
Revenues
|
|
|
183
|
|
202
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
166
|
|
200
|
|
296
|
|
144
|
|
807
|
|
Ancillary Revenues
(d)
|
|
|
20
|
|
23
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
18
|
|
22
|
|
23
|
|
20
|
|
82
|
|
Total Destination
Network
|
|
|
385
|
|
384
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
369
|
|
383
|
|
476
|
|
310
|
|
1,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vacation Ownership
Interest Sales
|
|
|
342
|
|
409
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
336
|
|
417
|
|
448
|
|
403
|
|
1,604
|
|
Consumer
Financing
|
|
|
107
|
|
108
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
104
|
|
105
|
|
108
|
|
109
|
|
427
|
|
Property Management
Fees and Reimbursable Revenues
|
|
164
|
|
161
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
153
|
|
149
|
|
159
|
|
155
|
|
615
|
|
WAAM Fee-for-Service
Commissions
|
|
17
|
|
16
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
12
|
|
19
|
|
23
|
|
28
|
|
83
|
|
Ancillary Revenues
(e)
|
|
|
11
|
|
11
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
12
|
|
9
|
|
12
|
|
11
|
|
43
|
|
Total Vacation
Ownership
|
|
|
641
|
|
705
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
617
|
|
699
|
|
750
|
|
706
|
|
2,772
|
Total Reportable
Segments
|
|
$
|
1,321
|
$
|
1,423
|
|
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
6
|
|
|
|
|
|
|
|
(1 of
2)
|
Wyndham Worldwide
Corporation
|
BRAND SYSTEM
DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the
Three Months Ended June 30, 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
|
2,707
|
172,924
|
60.4%
|
$49.33
|
$29.81
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,791
|
142,987
|
53.6%
|
$68.92
|
$36.92
|
|
|
|
|
|
|
|
|
Ramada
|
842
|
117,964
|
56.5%
|
$72.86
|
$41.18
|
|
|
|
|
|
|
|
|
Wyndham Hotels and
Resorts
|
226
|
49,776
|
62.3%
|
$106.74
|
$66.52
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
377
|
43,538
|
49.5%
|
$60.57
|
$29.99
|
|
|
|
|
|
|
|
|
Baymont
|
424
|
33,711
|
55.0%
|
$71.93
|
$39.58
|
|
|
|
|
|
|
|
|
Travelodge
|
404
|
29,705
|
53.1%
|
$71.45
|
$37.96
|
|
|
|
|
|
|
|
|
Microtel Inns &
Suites by Wyndham
|
334
|
24,102
|
59.9%
|
$69.69
|
$41.77
|
|
|
|
|
|
|
|
|
Knights
Inn
|
381
|
23,228
|
48.3%
|
$50.28
|
$24.27
|
|
|
|
|
|
|
|
|
TRYP by
Wyndham
|
113
|
16,120
|
70.2%
|
$79.96
|
$56.09
|
|
|
|
|
|
|
|
|
Wingate by
Wyndham
|
148
|
13,493
|
68.1%
|
$93.21
|
$63.49
|
|
|
|
|
|
|
|
|
Hawthorn Suites by
Wyndham
|
107
|
10,618
|
70.0%
|
$82.98
|
$58.06
|
|
|
|
|
|
|
|
|
Dolce
|
22
|
5,110
|
55.9%
|
$171.50
|
$95.89
|
|
|
|
|
|
|
|
|
|
Total Hotel
Group
|
7,876
|
683,276
|
57.2%
|
$68.30
|
$39.10
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham Vacation
Ownership resorts
|
216
|
24,475
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
Total Wyndham
Worldwide
|
8,092
|
707,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the
Three Months Ended June 30, 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
|
2,549
|
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
|
|
|
|
|
|
|
|
|
Wyndham Hotels and
Resorts
|
207
|
44,489
|
63.8%
|
$113.95
|
$72.68
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
413
|
44,945
|
50.3%
|
$63.70
|
$32.06
|
|
|
|
|
|
|
|
|
Baymont
|
383
|
30,471
|
56.1%
|
$69.39
|
$38.93
|
|
|
|
|
|
|
|
|
Travelodge
|
415
|
30,701
|
53.3%
|
$69.14
|
$36.87
|
|
|
|
|
|
|
|
|
Microtel Inns &
Suites by Wyndham
|
327
|
23,446
|
61.4%
|
$70.02
|
$43.02
|
|
|
|
|
|
|
|
|
Knights
Inn
|
388
|
23,994
|
47.5%
|
$48.21
|
$22.92
|
|
|
|
|
|
|
|
|
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 Hotel
Group
|
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
|
|
|
|
|
|
|
|
|
|
|
|
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, 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
|
2,707
|
172,924
|
56.0%
|
$47.68
|
$26.69
|
|
|
|
|
|
|
|
|
Days
Inn
|
1,791
|
142,987
|
49.0%
|
$66.61
|
$32.60
|
|
|
|
|
|
|
|
|
Ramada
|
842
|
117,964
|
52.7%
|
$73.28
|
$38.65
|
|
|
|
|
|
|
|
|
Wyndham Hotels and
Resorts
|
226
|
49,776
|
58.5%
|
$105.36
|
$61.64
|
|
|
|
|
|
|
|
|
Howard
Johnson
|
377
|
43,538
|
46.8%
|
$60.19
|
$28.17
|
|
|
|
|
|
|
|
|
Baymont
|
424
|
33,711
|
50.0%
|
$69.32
|
$34.66
|
|
|
|
|
|
|
|
|
Travelodge
|
404
|
29,705
|
49.2%
|
$67.64
|
$33.29
|
|
|
|
|
|
|
|
|
Microtel Inns &
Suites by Wyndham
|
334
|
24,102
|
55.5%
|
$66.91
|
$37.14
|
|
|
|
|
|
|
|
|
Knights
Inn
|
381
|
23,228
|
44.9%
|
$49.58
|
$22.25
|
|
|
|
|
|
|
|
|
TRYP by
Wyndham
|
113
|
16,120
|
62.3%
|
$76.80
|
$47.84
|
|
|
|
|
|
|
|
|
Wingate by
Wyndham
|
148
|
13,493
|
62.2%
|
$90.16
|
$56.04
|
|
|
|
|
|
|
|
|
Hawthorn Suites by
Wyndham
|
107
|
10,618
|
66.2%
|
$82.88
|
$54.84
|
|
|
|
|
|
|
|
|
Dolce
|
22
|
5,110
|
50.6%
|
$162.73
|
$82.42
|
|
|
|
|
|
|
|
|
|
Total Hotel
Group
|
7,876
|
683,276
|
53.0%
|
$66.76
|
$35.35
|
|
|
|
|
|
|
|
|
Vacation
Ownership
|
|
|
|
|
|
Wyndham Vacation
Ownership resorts
|
216
|
24,475
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
Total Wyndham
Worldwide
|
8,092
|
707,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the
Six Months Ended June 30, 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
|
2,549
|
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 Hotel
Group
|
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
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION OF ADJUSTED NET INCOME AND EPS
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location on
Condensed
Consolidated Statements of
Income
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
2016
|
|
2015
|
Diluted weighted
average shares outstanding
|
|
|
|
|
112
|
|
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
|
|
$
|
1.39
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
$
|
156
|
|
$
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs
(a)
|
|
Operating
|
|
|
1
|
|
|
1
|
|
Legacy costs
(b)
|
|
General and
administrative
|
|
|
-
|
|
|
(1)
|
|
|
Total adjustments
before tax
|
|
|
|
|
1
|
|
|
-
|
|
Income tax
benefit/(expense) on adjustments (c)
|
|
Provision for income
taxes
|
|
|
(1)
|
|
|
-
|
Total adjustments
after tax
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments - EPS
impact
|
|
|
|
$
|
0.01
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
income
|
|
|
|
$
|
156
|
|
$
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
|
|
$
|
1.40
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
2016
|
|
2015
|
Diluted weighted
average shares outstanding
|
|
|
|
|
113
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
|
|
$
|
2.23
|
|
$
|
2.33
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
$
|
251
|
|
$
|
282
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Venezuela currency
devaluation (d)
|
|
Operating
|
|
|
24
|
|
|
-
|
|
Acquisition costs
(a )
|
|
Operating
|
|
|
1
|
|
|
4
|
|
Legacy costs
(b)
|
|
General and
administrative
|
|
|
1
|
|
|
(1)
|
|
Restructuring costs
(e)
|
|
Operating
|
|
|
-
|
|
|
(1)
|
|
Early extinguishment
of debt (f)
|
|
Interest
expense
|
|
|
11
|
|
|
-
|
|
|
Total adjustments
before tax
|
|
|
|
|
37
|
|
|
2
|
|
Income tax
(expense)/benefit on adjustments (g)
|
|
Provision for income
taxes
|
|
|
(5)
|
|
|
1
|
Total adjustments
after tax
|
|
|
|
|
32
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments -
EPS impact
|
|
|
|
$
|
0.29
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
income
|
|
|
|
$
|
283
|
|
$
|
285
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
|
|
$
|
2.52
|
|
$
|
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
(a) The amount for 2016 represents costs related to an
acquisition that closed on July 1, 2016 at the Company's
destination network business.
The amount for 2015 relates primarily to costs incurred in
connection with the acquisition of Dolce Hotels and Resorts at
the Company's hotel group
business during 2015.
|
(b) Relates to the net benefit/(expense) from the
resolution of and adjustment to certain contingent liabilities and
assets resulting from the Company's separation from Cendant.
|
(c) Relates to the tax effect of the
adjustments.
|
(d) Represents the impact from the devaluation of the
exchange rate of Venezuela at the Company's destination network
business during 2016.
|
(e) Relates to the reversal of a portion of the
restructuring reserve established during the fourth quarter of 2014
at the Company's destination
network business.
|
(f) Represents costs incurred in connection with the
Company's early repurchase of its 6.0% senior unsecured notes
during 2016.
|
(g) Relates to (i) the tax effect of the adjustments
during both 2015 and 2016 and (ii) a valuation allowance
established in connection with the
acquisition of Dolce Hotels and Resorts during
2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above tables
reconcile certain non-GAAP financial measures. The
presentation of these adjustments is intended to permit the
comparison of particular adjustments as they appear in the income
statement in order to assist investors' understanding of the
overall impact of such adjustments. In addition to GAAP
financial measures, the Company provides adjusted net income and
adjusted EPS financial measures to assist our investors in
evaluating our ongoing operating performance for the current
reporting period and, where provided, over different reporting
periods, by adjusting for certain items which may be recurring or
non-recurring and which in our view do not necessarily reflect
ongoing performance. We also internally use these measures to
assess our operating performance, both absolutely and in comparison
to other companies, and in evaluating or making selected
compensation decisions. These supplemental disclosures are in
addition to GAAP reported measures. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 of
3)
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE
SEGMENT
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venezuela
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency
|
|
Acquisition
|
|
Adjusted
|
Three months ended
March 31, 2016
|
|
EBITDA
|
|
Devaluation
(b)
|
|
Costs(c)
|
|
EBITDA
|
Hotel
Group
|
|
|
$
|
84
|
|
$
|
-
|
|
$
|
-
|
|
$
|
84
|
Destination
Network
|
|
|
|
81
|
|
|
24
|
|
|
-
|
|
|
105
|
Vacation
Ownership
|
|
|
|
136
|
|
|
-
|
|
|
-
|
|
|
136
|
Total Reportable
Segments
|
|
|
301
|
|
|
24
|
|
|
-
|
|
|
325
|
Corporate and Other
(a)
|
|
|
|
(34)
|
|
|
-
|
|
|
-
|
|
|
(34)
|
Total
Company
|
|
|
$
|
267
|
|
$
|
24
|
|
$
|
-
|
|
$
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
101
|
|
$
|
-
|
|
$
|
-
|
|
$
|
101
|
Destination
Network
|
|
|
|
85
|
|
|
-
|
|
|
1
|
|
|
85
|
Vacation
Ownership
|
|
|
|
187
|
|
|
-
|
|
|
-
|
|
|
187
|
Total Reportable
Segments
|
|
|
373
|
|
|
-
|
|
|
1
|
|
|
373
|
Corporate and Other
(a)
|
|
|
|
(33)
|
|
|
-
|
|
|
-
|
|
|
(33)
|
Total
Company
|
|
|
$
|
340
|
|
$
|
-
|
|
$
|
1
|
|
$
|
340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not add across due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes the elimination of transactions between
segments.
|
(b) Represents the impact from the devaluation of the
exchange rate of Venezuela.
|
(c) Represents costs related to an acquisition that
closed on July 1, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 of
3)
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE
SEGMENT
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy
|
|
Acquisition
|
|
Restructuring
|
|
Asset
|
|
Contract
|
|
Adjusted
|
Three months ended
March 31, 2015
|
|
EBITDA
|
|
Adjustments(b)
|
|
Costs
(c)
|
|
Costs
(d)
|
|
Impairment
(e)
|
|
Termination
(f)
|
|
EBITDA
|
Hotel
Group
|
|
|
$
|
76
|
|
$
|
-
|
|
$
|
3
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
79
|
Destination
Network
|
|
|
|
105
|
|
|
-
|
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
-
|
|
|
104
|
Vacation
Ownership
|
|
|
|
130
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
130
|
Total Reportable
Segments
|
|
|
311
|
|
|
-
|
|
|
3
|
|
|
(1)
|
|
|
-
|
|
|
-
|
|
|
313
|
Corporate and Other
(a)
|
|
|
|
(34)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(34)
|
Total
Company
|
|
|
$
|
277
|
|
$
|
-
|
|
$
|
3
|
|
$
|
(1)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
96
|
|
$
|
-
|
|
$
|
1
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
97
|
Destination
Network
|
|
|
|
84
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
84
|
Vacation
Ownership
|
|
|
|
182
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
182
|
Total Reportable
Segments
|
|
|
362
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
363
|
Corporate and Other
(a)
|
|
|
|
(30)
|
|
|
(1)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(31)
|
Total
Company
|
|
|
$
|
332
|
|
$
|
(1)
|
|
$
|
1
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
83
|
|
$
|
-
|
|
$
|
-
|
|
$
|
4
|
|
$
|
7
|
|
$
|
14
|
|
$
|
108
|
Destination
Network
|
|
|
|
134
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
137
|
Vacation
Ownership
|
|
|
|
200
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
201
|
Total Reportable
Segments
|
|
|
417
|
|
|
-
|
|
|
-
|
|
|
8
|
|
|
7
|
|
|
14
|
|
|
446
|
Corporate and Other
(a)
|
|
|
|
(35)
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(34)
|
Total
Company
|
|
|
$
|
382
|
|
$
|
1
|
|
$
|
-
|
|
$
|
8
|
|
$
|
7
|
|
$
|
14
|
|
$
|
412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
94
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
93
|
Destination
Network
|
|
|
|
44
|
|
|
-
|
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
-
|
|
|
43
|
Vacation
Ownership
|
|
|
|
174
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
174
|
Total Reportable
Segments
|
|
|
312
|
|
|
-
|
|
|
-
|
|
|
(2)
|
|
|
-
|
|
|
-
|
|
|
310
|
Corporate and Other
(a)
|
|
|
|
(37)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(37)
|
Total
Company
|
|
|
$
|
275
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(2)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Group
|
|
|
$
|
349
|
|
$
|
-
|
|
$
|
3
|
|
$
|
3
|
|
$
|
7
|
|
$
|
14
|
|
$
|
376
|
Destination
Network
|
|
|
|
367
|
|
|
-
|
|
|
1
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
370
|
Vacation
Ownership
|
|
|
|
687
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
688
|
Total Reportable
Segments
|
|
|
1,403
|
|
|
-
|
|
|
4
|
|
|
6
|
|
|
7
|
|
|
14
|
|
|
1,434
|
Corporate and Other
(a)
|
|
|
|
(137)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(137)
|
Total
Company
|
|
|
$
|
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 the Company's 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
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 of
3)
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE
SEGMENT
|
SHARED-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
|
|
$
|
340
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Share-based
compensation expense (*)
|
|
|
13
|
|
|
20
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
Adjusted EBITDA
excluding share-based compensation expense
|
|
$
|
304
|
|
$
|
360
|
|
|
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 both Q1 and Q2 2016 and $3
million for the full year 2015. The Company believes
providing Adjusted EBITDA with the additional exclusion of
share-based compensation expense assists our investors and
management by providing an additional financial measure to evaluate
ongoing operations by excluding the variations among companies in
timing, amount and reporting of share-based compensation expense,
which may differ significantly among companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
9
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION OF GROSS VOI SALES
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS VOI
SALES
|
|
|
|
|
|
|
|
|
|
|
|
We believe gross
vacation ownership sales provide an enhanced understanding of the
performance of our vacation ownership business because it directly
measures the sales volume of this business during a given reporting
period.
|
|
The following table
provides a reconciliation of Gross VOI sales (see Table 3) to
vacation ownership interest sales (see Table 5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross VOI
sales
|
|
|
$
|
428
|
$
|
518
|
|
N/A
|
|
N/A
|
|
N/A
|
Less: Sales under
WAAM Fee-for-Service
|
|
|
(23)
|
|
(20)
|
|
N/A
|
|
N/A
|
|
N/A
|
Gross VOI sales, net
of WAAM Fee-for-Service sales
|
|
|
405
|
|
498
|
|
N/A
|
|
N/A
|
|
N/A
|
Less: Loan loss
provision
|
|
|
(63)
|
|
(90)
|
|
N/A
|
|
N/A
|
|
N/A
|
Vacation ownership
interest sales
|
|
$
|
342
|
$
|
409
|
|
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)
|
Plus: 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
|
$
|
22
|
|
N/A
|
|
N/A
|
|
N/A
|
2015
|
|
$
|
24
|
$
|
17
|
$
|
32
|
$
|
27
|
$
|
100
|
2014
|
|
$
|
25
|
$
|
21
|
$
|
27
|
$
|
24
|
$
|
97
|
2013
|
|
$
|
24
|
$
|
18
|
$
|
22
|
$
|
25
|
$
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
10
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION OF 2016 OUTLOOK
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outlook
|
|
|
|
Outlook
|
|
|
|
|
|
|
|
|
|
As
Adjusted
|
|
|
|
(GAAP)
|
|
Adjustments
|
|
|
(Non-GAAP)
|
|
|
|
Low
|
|
High
|
|
Low
|
|
|
High
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
5,650
|
|
$
|
5,800
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
5,650
|
|
$
|
5,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
1,351
|
|
$
|
1,376
|
|
$
|
24
|
(b)
|
$
|
24
|
(b)
|
$
|
1,375
|
|
$
|
1,400
|
Depreciation and
amortization
|
|
(250)
|
|
|
(245)
|
|
|
-
|
|
|
|
-
|
|
|
|
(250)
|
|
|
(245)
|
Interest expense,
net
|
|
(140)
|
|
|
(138)
|
|
|
11
|
(c)
|
|
|
11
|
(c)
|
|
(129)
|
|
|
(127)
|
Income before taxes
(a)
|
|
963
|
|
|
988
|
|
|
35
|
|
|
|
35
|
|
|
|
998
|
|
|
1,023
|
Income
taxes
|
|
(359)
|
|
|
(368)
|
|
|
(4)
|
(d)
|
|
|
(4)
|
(d)
|
|
(363)
|
|
|
(372)
|
Net income
|
$
|
604
|
|
$
|
620
|
|
$
|
31
|
|
|
$
|
31
|
|
|
$
|
635
|
|
$
|
651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
5.40
|
|
$
|
5.54
|
|
|
|
|
|
|
|
|
|
$
|
5.68
|
|
$
|
5.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares
|
|
112
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
112
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Projections do not total because the Company does not
expect the actual results of all items to be at the highest or
lowest end of any projected
range
simultaneously.
|
(b) Adjustment represents Venezuela currency devaluation
in the first quarter of 2016 the Company's destination network
business.
|
(c) Adjustment represents early extinguishment of debt in
the first quarter of 2016.
|
(d) Adjustment represents tax effect of Venezuela
currency devaluation and early extinguishment of debt.
|
|
|
|
|
|
|
|
Table
11
|
Wyndham Worldwide
Corporation
|
NON-GAAP
RECONCILIATION - CONSTANT CURRENCY AND CURRENCY
NEUTRAL
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
The Company reports
certain current year period financial measures on a constant
currency and currency-neutral basis and excluding the impact of
acquisitions. The Company believes providing certain
financial measures on a constant currency and currency-neutral
basis as well as excluding the impact of acquisitions assists
management and investors in better understanding underlying results
and trends by excluding the impact of period over period changes in
foreign exchange rates and changes resulting from
acquisitions.
|
|
|
|
|
|
|
|
|
Constant currency
results assume foreign results are translated from foreign
currencies to the U.S. dollar at exchange rates consistent with
those in the comparable period.
|
|
|
|
|
|
|
|
|
Currency Neutral
results (i) assume foreign results are translated from foreign
currencies to the U.S. dollar at exchange rates consistent with
those in the comparable period and (ii) eliminating foreign
exchange related activities such as foreign exchange hedges,
balance sheet remeasurements, currency devaluations and/or other
adjustments.
|
|
|
|
|
|
|
|
|
Acquisition results
are defined as the incremental period over period changes in the
Company's results directly attributable to acquisitions.
|
|
|
|
|
|
|
|
|
Revenues in
Constant Currency and Excluding Acquisitions:
|
Three months ended
June 30,
|
|
2016
|
|
2015
|
|
%
Change
|
Total revenues as
reported
|
$
|
1,403
|
|
$
|
1,398
|
|
-
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Foreign currency -
constant currency
|
|
10
|
|
|
-
|
|
*
|
|
|
Incremental revenues
from acquisitions
|
|
(3)
|
|
|
-
|
|
*
|
|
Total revenues in
constant currency and excluding acquisitions
|
$
|
1,410
|
|
$
|
1,398
|
|
1%
|
|
|
|
|
|
|
|
|
Destination
Network revenue as reported
|
$
|
384
|
|
$
|
383
|
|
-
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Foreign currency -
constant currency
|
|
7
|
|
|
-
|
|
*
|
|
|
Incremental revenues
from acquisitions
|
|
(3)
|
|
|
-
|
|
*
|
|
Total Destination
Network revenues in constant currency and excluding
acquisitions
|
$
|
388
|
|
$
|
383
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
Exchange revenue
as reported
|
$
|
159
|
|
$
|
161
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency - constant currency
|
|
4
|
|
|
-
|
|
*
|
|
|
|
Total Exchange
revenues in constant currency and excluding
acquisitions
|
$
|
163
|
|
$
|
161
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
Rental revenue as
reported
|
$
|
202
|
|
$
|
200
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency - constant currency
|
|
2
|
|
|
-
|
|
*
|
|
|
|
Incremental revenues from acquisitions
|
|
(3)
|
|
|
-
|
|
*
|
|
|
|
Total Rental
revenues in constant currency and excluding
acquisitions
|
$
|
201
|
|
$
|
200
|
|
1%
|
|
|
|
|
|
|
|
|
Currency-neutral
Adjusted EBITDA:
|
Three months ended
June 30,
|
|
2016
|
|
2015
|
|
%
Change
|
Adjusted EBITDA
(a)
|
$
|
340
|
|
$
|
332
|
|
2%
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Foreign currency
- currency - neutral
|
|
2
|
|
|
-
|
|
*
|
|
Currency-neutral
Adjusted EBITDA excluding acquisitions
|
$
|
342
|
|
$
|
332
|
|
3%
|
|
|
|
|
|
|
|
|
Destination
Network Adjusted EBITDA (a)
|
$
|
85
|
|
$
|
84
|
|
1%
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Foreign currency -
currency - neutral
|
|
1
|
|
|
-
|
|
*
|
|
Destination
Network Currency-neutral Adjusted EBITDA excluding
acquisitions
|
$
|
86
|
|
$
|
84
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See Table 8 for a
reconciliation of EBITDA to Adjusted EBITDA and Table 2 for a
reconciliation of EBITDA to Net Income.
|
* Not
Meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
12
|
Wyndham Worldwide
Corporation
|
SCHEDULE OF
DEBT
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized vacation
ownership debt (a)
|
|
|
|
|
|
|
|
|
Term notes
|
$
|
1,717
|
|
$
|
1,867
|
|
$
|
1,818
|
Bank conduit facility
(b)
|
|
315
|
|
|
239
|
|
|
253
|
Total securitized
vacation ownership debt (c)
|
|
2,032
|
|
|
2,106
|
|
|
2,071
|
Less: Current portion
of securitized vacation ownership debt
|
|
198
|
|
|
209
|
|
|
211
|
Long-term securitized
vacation ownership debt
|
$
|
1,834
|
|
$
|
1,897
|
|
$
|
1,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
Revolving credit facility (due July 2020) (d)
|
|
$
|
16
|
|
$
|
7
|
|
$
|
23
|
Commercial paper (e)
|
|
|
408
|
|
|
109
|
|
|
476
|
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)
|
|
300
|
|
|
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)
|
|
449
|
|
|
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
|
|
|
648
|
$400
million 3.90% senior unsecured notes (due March 2023)
|
|
407
|
|
|
408
|
|
|
408
|
$350
million 5.10% senior unsecured notes (due October 2025)
|
|
338
|
|
|
337
|
|
|
-
|
Capital
leases
|
|
152
|
|
|
153
|
|
|
161
|
Other
|
|
|
|
|
|
|
|
|
32
|
|
|
49
|
|
|
69
|
Total long-term
debt
|
|
|
|
|
|
|
|
|
3,374
|
|
|
3,075
|
|
|
3,149
|
Less: Current portion
of long-term debt
|
|
|
|
|
|
|
|
|
46
|
|
|
44
|
|
|
52
|
Long-term
debt
|
|
|
|
|
|
|
|
$
|
3,328
|
|
$
|
3,031
|
|
$
|
3,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
June 30, 2016, this facility had a remaining borrowing capacity of
$335 million.
|
(c) This debt is collateralized by $2,526 million, $2,576
million and $2,558 million, of underlying vacation ownership
contract receivables and
related assets
as of June 30, 2016, December 31, 2015, and June 30, 2015.
respectively.
|
(d) Represents a $1.5 billion revolving credit facility
that expires in July 2020. As of June 30, 2016, the Company had $1
million of
outstanding
letters of credit. After considering outstanding commercial paper
borrowings of $408 million, the remaining borrowing
capacity
was $1.1 billion
as of June 30, 2016.
|
(e) Represents commercial paper programs of $1.25 billion
with a remaining borrowing capacity of $842 million as of June 30,
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wyndham-worldwide-reports-second-quarter-2016-results-300304505.html
SOURCE Wyndham Worldwide Corporation