Increases 2009 Adjusted EBITDA Guidance Completes Renewal of
Vacation Ownership Receivables Conduit Facility PARSIPPANY, N.J.,
Oct. 28 /PRNewswire-FirstCall/ -- Wyndham Worldwide Corporation
(NYSE:WYN) today announced results for the three months ended
September 30, 2009. HIGHLIGHTS: -- Wyndham Worldwide generated
diluted adjusted earnings per share (EPS) of $0.58, compared with
Company-issued guidance of $0.53 - $0.57. Reported EPS was $0.57.
-- The Company raises full-year 2009 adjusted EBITDA guidance to
$775 - $825 million, compared with prior guidance of $760 - $810
million. -- For the nine months ended September 30, 2009, the
Company generated net cash from operating activities of
approximately $570 million, compared with $146 million in 2008. --
Wyndham Worldwide recently completed two term securitization
transactions totaling $350 million. -- The Company announces the
renewal of its asset-backed vacation ownership receivables conduit.
The 364-day facility bears interest at variable commercial paper
rates plus a spread with a capacity of $600 million. "Wyndham
Worldwide delivered solid results in the third quarter, once again
demonstrating the benefits of a strong, resilient business model
and excellent execution" said Stephen P. Holmes, chairman and CEO,
Wyndham Worldwide. "We continue to transform the Company by
rebalancing our worldwide business portfolio to increase the
contribution of fee-for-service businesses and drive strong cash
flow." THIRD QUARTER 2009 COMPANY OPERATING RESULTS Third quarter
revenues of $1,016 million declined by 17% from the prior-year
period due to the previously announced initiative to reduce the
deployment of capital in the Company's vacation ownership business;
continued weakness in the global lodging industry; and unfavorable
foreign exchange rate movements which negatively impacted the
Company's exchange and rentals business. Net income for the third
quarter of 2009 was $104 million, or $0.57 diluted EPS, compared
with third quarter 2008 net income of $142 million, or $0.80
diluted EPS. Adjusted net income for the third quarter of 2009 was
$106 million, or $0.58 diluted adjusted EPS, compared with third
quarter 2008 adjusted net income of $148 million, or $0.83 diluted
adjusted EPS. Third quarter 2009 includes the after-tax impact of
$2 million, or $0.01 diluted EPS, of legacy items. Third quarter
2008 net income includes the after-tax impact of $6 million, or
$0.03 diluted EPS, of restructuring costs and legacy items. THIRD
QUARTER 2009 BUSINESS UNIT RESULTS Wyndham Hotel Group Revenues
were $183 million in the third quarter of 2009, a decline of 14%
compared with the third quarter of 2008, primarily reflecting a
decline in worldwide RevPAR. Third quarter 2009 system-wide RevPAR
decreased 17.0%, reflecting declines of 16.0% and 21.9% in domestic
and international RevPAR, respectively. Third quarter 2009 EBITDA
was $58 million compared with $72 million in the third quarter of
2008, which included $4 million of restructuring costs. The
reduction in EBITDA reflects the decline in worldwide RevPAR and
other franchise fees, partly offset by lower marketing expenses. As
of September 30, 2009, the Company's hotel system consisted of
approximately 7,040 properties and 590,900 rooms, of which 21% were
international. The development pipeline included approximately
1,000 hotels and 110,800 rooms, of which 50% were new construction
and 41% were international. Wyndham Exchange and Rentals The
Company has renamed Group RCI to Wyndham Exchange and Rentals to
more accurately reflect the two very profitable fee-based
businesses where Wyndham Worldwide has leadership positions.
Revenues were $327 million in the third quarter of 2009, an 8%
decrease compared with the third quarter of 2008, primarily
resulting from the impact of unfavorable foreign currency
movements. Excluding the impact of foreign currency, revenues were
flat. Excluding the impact of foreign currency annual dues and
exchange revenues were flat compared with the third quarter of
2008, reflecting a 3% increase in the average number of members and
a 3% decline in revenue per member. Including the impact of foreign
currency, revenues were $110 million, a 4% decrease from the prior
year period. Excluding the impact of foreign currency vacation
rental revenues increased $5 million, or 3%, compared with the
third quarter of 2008, primarily driven by a 2% increase in rental
transaction volume and a 1% increase in average price per vacation
rental. Including the impact of foreign currency, revenues were
$185 million, a 7% decrease from the prior year period. Third
quarter 2009 EBITDA increased 2% to $107 million, compared with
$105 million in the third quarter of 2008, which included $2
million of restructuring costs. Excluding an unfavorable net effect
of foreign currency of $14 million and restructuring costs,
adjusted EBITDA would have increased $14 million, or 13%, from the
third quarter of 2008, primarily reflecting cost savings. Wyndham
Vacation Ownership Gross Vacation Ownership Interest (VOI) sales
were $366 million for the third quarter of 2009, a 35% decline from
the third quarter of 2008. This decrease was primarily driven by
the previously announced initiative to reduce the capital deployed
in this business, which included sales office closures and a
reduction of marketing efforts that resulted in fewer tours. Total
segment revenues were $508 million in the third quarter of 2009,
down 23% from the third quarter of 2008, primarily reflecting the
planned reduction in tour flow which was partially offset by a 25%
increase in volume per guest and a $38 million favorable impact
from the percentage-of-completion (POC) method of accounting from
the third quarter of 2008. Under the POC method of accounting for
the sale of vacation ownership interests, the Company recognized
$36 million of previously deferred revenue during the third quarter
of 2009, while third quarter 2008 reported revenues were reduced by
$2 million of deferred revenue. EBITDA for the third quarter of
2009 was $104 million, down 19% from the third quarter of 2008,
reflecting the net impact of the planned reduction of VOI sales
volume, partially offset by an $18 million impact from the net
increase in the recognition of revenue previously deferred under
the POC method of accounting. Other Items Net interest expense in
the third quarter of 2009 was $33 million, a $14 million increase
from the third quarter of 2008 due to higher interest rates,
primarily reflecting the impact of the long-term debt issuances in
May 2009, the proceeds of which were used to reduce revolving
credit facility borrowings and lower capitalized interest. Balance
Sheet Information as of September 30, 2009: -- Cash and cash
equivalents of approximately $170 million compared with $135
million from December 31, 2008 -- Vacation ownership contract
receivables, net, of $3.1 billion compared with $3.3 billion at
December 31, 2008 -- Vacation ownership and other inventory of $1.3
billion unchanged from December 31, 2008 -- Securitized vacation
ownership debt of $1.6 billion compared with $1.8 billion at
December 31, 2008 -- Other debt of $2.0 billion, unchanged from
December 31, 2008; remaining borrowing capacity on the revolving
credit facility was approximately $850 million compared with
approximately $290 million as of December 31, 2008 A schedule of
debt is included in the financial tables section of this press
release. Guidance For the fourth quarter of 2009, the Company
expects adjusted EPS of $0.35 - $0.38, based on weighted average
shares of 184 million. The Company updates full-year 2009 guidance:
-- Revenues of $3.5 - $3.9 billion -- The Company now expects
adjusted EBITDA of $775 - $825 million, compared with prior
guidance of $760 - $810 million. "For full year 2010, we expect
that revenue and adjusted EBITDA will be consistent with the
current guidance ranges for 2009. We believe this reflects
significant strength in our business, given that 2009 results will
benefit from approximately $90 million of EBITDA related to
vacation ownership deferred revenue roll-in that will be absent in
2010," said Mr. Holmes. Management also expects that interest
expense will be higher than 2009 levels due to financings completed
in 2009 and lower capitalized interest in 2010. The guidance
reflects assumptions used for internal planning purposes. All
guidance excludes legacy items and restructuring costs, if any,
which may have a positive or negative impact on reported results.
If economic conditions improve or deteriorate materially from
current levels, these assumptions and our guidance may change
materially. It is not practicable to provide a reconciliation of
forecasted adjusted EBITDA to the most directly comparable GAAP
measure because certain items cannot be reasonably estimated or
predicted at this time. Any such items could be significant to our
financial results. Conference Call Information Wyndham Worldwide
Corporation will provide a webcast of its conference call to
discuss the Company's third quarter 2009 financial results on
Wednesday, October 28, 2009 at 8:30 a.m. EDT. Listeners can access
the webcast live through the company's website at
http://www.wyndhamworldwide.com/investors/. The conference call
also may be accessed by dialing (800) 369-1776 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 at the website for approximately 90 days
beginning at 12:00 p.m. EDT on October 28, 2009. A telephone replay
will be available at (888) 473-0114 beginning at 12:00 p.m. EDT on
October 28, 2009, until 5:00 p.m. EST on December 13, 2009.
Presentation of Financial Information Financial information
discussed in this press release includes both GAAP and non-GAAP
measures, which include or exclude certain items. These non-GAAP
measures differ from reported results and are intended to
illustrate what management believes are relevant period-over-period
comparisons. A complete reconciliation of reported GAAP results to
the comparable non-GAAP information appears in the financial tables
section of the press release. About Wyndham Worldwide As one of the
world's largest hospitality companies, Wyndham Worldwide offers
individual consumers and business-to-business customers a broad
suite of hospitality products and services across various
accommodation alternatives and price ranges through its premier
portfolio of world-renowned brands. Wyndham Hotel Group encompasses
approximately 7,040 franchised hotels and approximately 590,900
hotel rooms worldwide. Wyndham Exchange and Rentals offers its 3.8
million members access to more than 73,000 vacation properties
located in approximately 100 countries. Wyndham Vacation Ownership
develops, markets and sells vacation ownership interests and
provides consumer financing to owners through its network of over
150 vacation ownership resorts serving over 830,000 owners
throughout North America, the Caribbean and the South Pacific.
Wyndham Worldwide, headquartered in Parsippany, N.J., employs
approximately 25,500 employees globally. For more information about
Wyndham Worldwide, please visit the Company's web site at
http://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 for 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 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 and terrorist activity, operating risks associated with the
hotel, vacation exchange and rentals and vacation ownership
businesses, as well as those described in the Company's Quarterly
Report on Form 10-Q, filed with the SEC on August 7, 2009. 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), interest income (excluding consumer financing interest)
and income taxes, each of which is presented on the Company's
Consolidated Statements of Income. The Company believes that EBITDA
is a useful measure of performance for the Company's industry
segments which, when considered with GAAP measures, the Company
believes gives a more complete understanding of the Company's
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
reportable segments, as well as reconcile EBITDA to net income for
the three and nine months ended September 30, 2009 and 2008: Three
Months Ended September 30,
---------------------------------------------- 2009 2008
------------------- ------------------- Net Net Revenues EBITDA
Revenues EBITDA (d) --------- -------- --------- -------- Lodging
$183 $58 $213 $72 Vacation Exchange and Rentals 327 107 354 105
Vacation Ownership 508 104 661 128 --------- -------- ---------
-------- Total Reportable Segments 1,018 269 1,228 305 Corporate
and Other (a) (b) (2) (15) (2) (11) --------- -------- ---------
-------- Total Company $1,016 $254 $1,226 $294 ========= ========
========= ======== Reconciliation of EBITDA to Net Income EBITDA
$254 $294 Depreciation and amortization 46 47 Interest expense 34
21 Interest income (1) (2) -------- -------- Income before income
taxes 175 228 Provision for income taxes 71 86 -------- --------
Net income $104 $142 ======== ======== Nine Months Ended September
30, ---------------------------------------------- 2009 2008
------------------- ------------------- Net Net Revenues EBITDA (e)
Revenues EBITDA (d) --------- -------- --------- -------- Lodging
$511 $143 $583 $179 Vacation Exchange and Rentals 894 240 1,009 252
Vacation Ownership 1,437 255 1,786 248 (f) --------- --------
--------- -------- Total Reportable Segments 2,842 638 3,378 679
Corporate and Other (a) (c) (5) (55) (8) (34) --------- --------
--------- -------- Total Company $2,837 $583 $3,370 $645 =========
======== ========= ======== Reconciliation of EBITDA to Net Income
EBITDA $583 $645 Depreciation and amortization 134 137 Interest
expense 79 59 Interest income (5) (8) -------- -------- Income
before income taxes 375 457 Provision for income taxes 155 175
-------- -------- Net income $220 $282 ======== ======== (a)
Includes the elimination of transactions between segments. (b)
Includes $2 million ($2 million, net of tax) and $1 million ($2
million, net of tax) of a net expense during the three months ended
September 30, 2009 and 2008, respectively, related to the
resolution of and adjustment to certain contingent liabilities and
assets. (c) Includes $6 million ($6 million, net of tax) of a net
expense and $4 million of a net benefit ($1 million, net of tax, of
a net expense) during the nine months ended September 30, 2009 and
2008, respectively, related to the resolution of and adjustment to
certain contingent liabilities and assets. (d) Includes
restructuring costs of $4 million and $2 million for Lodging and
Vacation Exchange and Rentals, respectively, during both the three
and nine months ended September 30, 2008. The after-tax impact of
such costs is $4 million. (e) Includes restructuring costs of $3
million, $6 million, $36 million and $1 million for Lodging,
Vacation Exchange and Rentals, Vacation Ownership and Corporate and
Other, respectively. The after-tax impact of such costs is $28
million. (f) Includes a non-cash impairment charge of $28 million
($17 million, net of tax) due to the Company's initiative to
rebrand its vacation ownership trademarks to the Wyndham brand.
Table 2 Wyndham Worldwide Corporation CONSOLIDATED STATEMENTS OF
INCOME (In millions, except per share data) Three Months Nine
Months Ended Ended September 30, September 30, -----------
-------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net revenues
Service fees and membership $445 $468 $1,241 $1,344 Vacation
ownership interest sales 285 446 766 1,153 Franchise fees 126 153
342 402 Consumer financing 108 111 325 314 Other 52 48 163 157
----- ----- ----- ----- Net revenues 1,016 1,226 2,837 3,370 -----
----- ----- ----- Expenses Operating 386 439 1,153 1,284 Cost of
vacation ownership interests 54 86 136 226 Consumer financing
interest 35 34 102 93 Marketing and reservation 149 232 423 659
General and administrative (a) (b) 140 140 398 438 Asset
impairments (c) - - - 28 Restructuring costs (d) - 6 46 6
Depreciation and amortization 46 47 134 137 --- --- ---- -----
Total expenses 810 984 2,392 2,871 --- --- ----- ----- Operating
income 206 242 445 499 Other income, net (2) (5) (4) (9) Interest
expense 34 21 79 59 Interest income (1) (2) (5) (8) --- --- --- ---
Income before income taxes 175 228 375 457 Provision for income
taxes 71 86 155 175 ---- ---- ---- ---- Net income $104 $142 $220
$282 ==== ==== ==== ==== Earnings per share Basic $0.58 $0.80 $1.23
$1.59 Diluted 0.57 0.80 1.21 1.58 Weighted average shares
outstanding Basic 179 178 178 177 Diluted 183 178 181 178 (a)
Includes $2 million ($2 million, net of tax) and $1 million ($2
million, net of tax) of a net expense during the three months ended
September 30, 2009 and 2008, respectively, related to the
resolution of and adjustment to certain contingent liabilities and
assets. (b) Includes $6 million ($6 million, net of tax) of a net
expense and $4 million of a net benefit ($1 million, net of tax, of
a net expense) during the nine months ended September 30, 2009 and
2008, respectively, related to the resolution of and adjustment to
certain contingent liabilities and assets. (c) Relates to a
non-cash impairment charge ($17 million, net of tax) for Vacation
Ownership due to the Company's initiative to rebrand its vacation
ownership trademarks to the Wyndham brand. (d) Relates to costs
incurred as a result of various strategic initiatives commenced by
the Company during 2008. Such amounts, net of tax, were $28 million
during the nine months ended September 30, 2009 and $4 million
during both the three and nine months ended September 30, 2008.
Table 3 (1 of 3) Wyndham Worldwide Corporation OPERATING STATISTICS
Full Year Q1 Q2 Q3 Q4 Year ---- -- -- -- -- ----- Lodging (a)
Number of Rooms (b) 2009 588,500 590,200 590,900 N/A N/A 2008
551,100 551,500 583,400 592,900 N/A 2007 539,300 541,700 540,900
550,600 N/A 2006 525,500 535,900 533,700 543,200 N/A RevPAR 2009
$27.69 $32.38 $34.81 N/A N/A 2008 $32.21 $38.87 $41.93 $30.03
$35.74 2007 $31.35 $38.35 $43.10 $33.09 $36.48 2006 $30.45 $36.97
$40.82 $31.41 $34.95 Vacation Exchange and Rentals Average Number
of Members (in 000s) 2009 3,789 3,795 3,781 N/A N/A 2008 3,632
3,682 3,673 3,693 3,670 2007 3,474 3,506 3,538 3,588 3,526 2006
3,292 3,327 3,374 3,429 3,356 Annual Dues and Exchange Revenue Per
Member 2009 $134.38 $117.59 $116.76 N/A N/A 2008 $150.84 $128.91
$124.51 $109.56 $128.37 2007 $155.60 $132.33 $131.38 $124.59
$135.85 2006 $152.10 $130.37 $132.31 $128.13 $135.62 Vacation
Rental Transactions (in 000s) 2009 387 324 367 N/A N/A 2008 387 319
360 282 1,347 2007 398 326 360 293 1,376 2006 385 310 356 293 1,344
Average Net Price Per Vacation Rental 2009 $335.54 $422.00 $505.82
N/A N/A 2008 $412.74 $477.63 $553.69 $400.09 $463.10 2007 $349.73
$415.71 $506.78 $426.93 $422.83 2006 $312.51 $374.91 $442.75
$356.16 $370.93 Vacation Ownership Gross Vacation Ownership
Interest Sales (in 000s) 2009 $280,000 $327,000 $366,000 N/A N/A
2008 $458,000 $532,000 $566,000 $432,000 $1,987,000 2007 $430,000
$523,000 $552,000 $488,000 $1,993,000 2006 $357,000 $434,000
$482,000 $469,000 $1,743,000 Tours 2009 137,000 164,000 173,000 N/A
N/A 2008 255,000 314,000 334,000 240,000 1,143,000 2007 240,000
304,000 332,000 268,000 1,144,000 2006 208,000 273,000 312,000
254,000 1,046,000 Volume Per Guest(VPG) 2009 $1,866 $1,854 $1,944
N/A N/A 2008 $1,668 $1,583 $1,550 $1,630 $1,602 2007 $1,607 $1,596
$1,545 $1,690 $1,606 2006 $1,475 $1,426 $1,434 $1,623 $1,486 Note:
Full year amounts may not foot across due to rounding. (a)
Quarterly drivers in the Lodging segment include the acquisitions
of Microtel Inns & Suites and Hawthorn Suites (July 2008) and
Baymont Inn & Suites (April 2006) from their acquisition dates
forward. Therefore, the operating statistics are not presented on a
comparable basis. (b) Numbers include affiliated rooms from the
fourth quarter of 2006 forward. Table 3 (2 of 3) Wyndham Worldwide
Corporation ADDITIONAL DATA Full Year Q1 Q2 Q3 Q4 Year ---- -- --
-- -- ----- Lodging(a) Number of Properties(b) 2009 6,990 7,020
7,040 N/A N/A 2008 6,550 6,560 6,970 7,040 N/A 2007 6,450 6,460
6,460 6,540 N/A 2006 6,300 6,440 6,420 6,470 N/A Vacation Ownership
Deferred Revenues (in 000s)(c) 2009 $66,516 $37,140 $36,102 N/A N/A
2008 $(81,716) $(5,240) $(2,023) $13,870 $(75,108) 2007 $3,906
$(4,908) $506 $(21,092) $(21,588) 2006 $12,708 $(221) $(23,491)
$(10,675) $(21,679) Provision for Loan Losses (in 000s)(d) 2009
$107,202 $121,641 $117,111 N/A N/A 2008 $82,344 $112,669 $118,609
$136,090 $449,712 2007 $60,869 $75,032 $85,762 $83,644 $305,307
2006 $61,242 $55,872 $63,213 $78,680 $259,007 Note: Full year
amounts may not foot across due to rounding. (a) Information
includes the acquisitions of Microtel Inns & Suites and
Hawthorn Suites (July 2008) and Baymont Inn & Suites (April
2006) from their acquisition dates forward. Therefore, the data is
not presented on a comparable basis. (b) Numbers include affiliated
hotels from the fourth quarter of 2006 forward. (c) Represents the
revenue that is deferred under the percentage of completion method
of accounting. Under the percentage of completion method of
accounting, a portion of the total revenue from a vacation
ownership contract sale is not recognized if the construction of
the vacation resort has not yet been fully completed. This revenue
will be recognized in future periods in proportion to the costs
incurred as compared to the total expected costs for completion of
construction of the vacation resort. Positive amounts represent the
recognition of previously deferred revenues. (d) 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 (3 of 3) Wyndham
Worldwide Corporation OPERATING STATISTICS GLOSSARY OF TERMS
Lodging Number of Rooms: Represents the number of rooms at lodging
properties at the end of the period which are either (i) under
franchise and/or management agreements, (ii) properties affiliated
with Wyndham Hotels and Resorts brand for which we receive a fee
for reservation and/or other services provided or (iii) properties
managed under the CHI Limited joint venture. Average Occupancy
Rate: Represents the percentage of available rooms occupied during
the period. Average Daily Rate (ADR): Represents the average rate
charged for renting a lodging room for one day. RevPAR: Represents
revenue per available room and is calculated by multiplying average
occupancy rate by ADR. Comparable RevPAR represents RevPAR of
hotels which are included in both periods. Vacation Exchange and
Rentals Average Number of Members: Represents members in our
vacation exchange programs who pay annual membership dues. For
additional fees, such participants are entitled to exchange
intervals for intervals at other properties affiliated with our
vacation exchange business. In addition, certain participants may
exchange intervals for other leisure-related products and services.
Annual Dues and Exchange Revenue Per Member: Represents total
revenues from annual membership dues and exchange fees generated
for the period divided by the average number of vacation exchange
members during the year. Vacation Rental Transactions: Represents
the number of transactions that are generated in connection with
customers booking their vacation rental stays through us. In our
European vacation rentals businesses, one rental transaction is
recorded each time a standard one-week rental is booked; however,
in the United States, one rental transaction is recorded each time
a vacation rental stay is booked, regardless of whether it is less
than or more than one week. Average Net Price Per Vacation Rental:
Represents the net rental price generated from renting vacation
properties to customers divided by the number of rental
transactions. Vacation Ownership Gross Vacation Ownership Interest
Sales: Represents gross sales of vacation ownership interests
(including tele-sales upgrades, which are a component of upgrade
sales) before deferred sales and loan loss provisions. Tours:
Represents the number of tours taken by guests in our efforts to
sell vacation ownership interests. Volume per Guest (VPG):
Represents revenue per guest and is calculated by dividing the
gross vacation ownership interest sales, excluding tele-sales
upgrades, which are a component of upgrade sales, by the number of
tours. General Constant Currency: Represents comparison eliminating
the effects of foreign exchange rate fluctuations between periods.
Table 4 Wyndham Worldwide Corporation Revenue Detail by Reportable
Segment (In millions) 2009 --------------------------------------
Q1 Q2 Q3 Q4 Year ------ ------ ------ ------ -------- Lodging
Royalties and Franchise Fees $57 $68 $72 N/A N/A Marketing,
Reservation and Wyndham Rewards Revenues(a) 54 66 73 N/A N/A
Property Management Reimbursable Revenues (b) 22 23 21 N/A N/A
Ancillary Revenues (c) 21 17 17 N/A N/A --- --- --- ------- -------
Total Lodging 154 174 183 N/A N/A --- --- --- ------- -------
Vacation Exchange and Rentals Exchange Revenues 127 112 110 N/A N/A
Rental Revenues 130 137 185 N/A N/A Ancillary Revenues (d) 30 31 32
N/A N/A --- --- --- ------- ------- Total Vacation Exchange and
Rentals 287 280 327 N/A N/A --- --- --- ------- ------- Vacation
Ownership Vacation Ownership Interest Sales 239 242 285 N/A N/A
Consumer Financing 109 109 108 N/A N/A Property Management Fees 91
94 96 N/A N/A Ancillary Revenues (e) 23 22 19 N/A N/A --- --- ---
------- ------- Total Vacation Ownership 462 467 508 N/A N/A ---
--- --- ------- ------- Total Reportable Segments $903 $921 $1,018
N/A N/A ==== ==== ====== ======= ======= 2008
-------------------------------------- Q1 Q2 Q3 Q4 Year ------
------ ------ ------ -------- Lodging Royalties and Franchise Fees
$64 $78 $88 $66 $297 Marketing, Reservation and Wyndham Rewards
Revenues(a) 60 75 84 61 280 Property Management Reimbursable
Revenues (b) 27 26 25 21 100 Ancillary Revenues (c) 19 21 16 22 76
--- --- --- --- --- Total Lodging 170 200 213 170 753 --- --- ---
--- --- Vacation Exchange and Rentals Exchange Revenues 137 119 114
101 471 Rental Revenues 160 153 199 113 624 Ancillary Revenues (d)
44 42 41 36 164 --- --- --- --- ----- Total Vacation Exchange and
Rentals 341 314 354 250 1,259 --- --- --- --- ----- Vacation
Ownership Vacation Ownership Interest Sales 294 414 446 309 1,463
Consumer Financing 99 104 111 112 426 Property Management Fees 85
84 89 89 346 Ancillary Revenues (e) 26 19 15 (18) 43 --- --- ---
--- --- Total Vacation Ownership 504 621 661 492 2,278 ------
------ ------ ---- ------ Total Reportable Segments $1,015 $1,135
$1,228 $912 $4,290 ====== ====== ====== ==== ====== 2007
-------------------------------------- Q1 Q2 Q3 Q4 Year ------
------ ------ ------ -------- Lodging Royalties and Franchise Fees
$63 $78 $89 $67 $296 Marketing, Reservation and Wyndham Rewards
Revenues(a) 60 73 84 64 281 Property Management Reimbursable
Revenues (b) 16 22 26 28 92 Ancillary Revenues (c) 13 13 12 17 56
--- --- --- --- --- Total Lodging 152 186 211 176 725 --- --- ---
--- --- Vacation Exchange and Rentals Exchange Revenues 135 116 116
112 479 Rental Revenues 139 136 182 125 582 Ancillary Revenues (d)
40 36 38 43 157 --- --- --- --- ----- Total Vacation Exchange and
Rentals 314 288 336 280 1,218 --- --- --- --- ----- Vacation
Ownership Vacation Ownership Interest Sales 373 443 467 383 1,666
Consumer Financing 81 88 93 96 358 Property Management Fees 74 78
79 78 310 Ancillary Revenues (e) 21 20 32 19 91 ------ ------
------ ------ ------ Total Vacation Ownership 549 629 671 576 2,425
------ ------ ------ ------ ------ Total Reportable Segments $1,015
$1,103 $1,218 $1,032 $4,368 ====== ====== ====== ====== ====== 2006
-------------------------------------- Q1 Q2 Q3 Q4 Year ------
------ ------ ------ -------- Lodging Royalties and Franchise Fees
$59 $75 $81 $63 $278 Marketing, Reservation and Wyndham Rewards
Revenues(a) 58 70 78 60 266 Property Management Reimbursable
Revenues (b) 16 20 17 16 69 Ancillary Revenues (c) 11 11 13 13 48
--- --- --- --- --- Total Lodging 144 176 189 152 661 --- --- ---
--- --- Vacation Exchange and Rentals Exchange Revenues 125 108 112
110 455 Rental Revenues 120 116 158 105 498 Ancillary Revenues (d)
37 37 40 51 166 --- --- --- --- ----- Total Vacation Exchange and
Rentals 282 261 310 266 1,119 --- --- --- --- ----- Vacation
Ownership Vacation Ownership Interest Sales 309 377 396 379 1,461
Consumer Financing 65 70 77 79 291 Property Management Fees 58 60
66 68 253 Ancillary Revenues (e) 13 11 12 28 63 --- --- --- ---
----- Total Vacation Ownership 445 518 551 554 2,068 ---- ----
------ ---- ------ Total Reportable Segments $871 $955 $1,050 $972
$3,848 ==== ==== ====== ==== ====== Note: Full year amounts may not
foot across due to rounding. (a) Marketing and reservation revenues
represent fees we receive from franchised and managed hotels that
are to be expended for marketing purposes or the operation of a
centralized, brand- specific reservation system. These fees are
typically based on a percentage of the gross room revenues of each
hotel. Wyndham Rewards revenues represent fees we receive relating
to our loyalty program. (b) Primarily represents payroll costs in
our hotel management business that we incur and pay on behalf of
property owners and for which we are reimbursed by the property
owners. (c) Primarily includes additional services provided to
franchisees. (d) Primarily includes fees from additional services
provided to transacting members, fees from a credit card loyalty
program and fees generated from programs with affiliated resorts.
(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 businesses. Table 5 Wyndham
Worldwide Corporation SCHEDULE OF DEBT (In millions) Sept. 30, June
30, March 31, Dec. 31, Sept. 30, 2009 2009 2009 2008 2008 ---------
-------- --------- -------- --------- Securitized vacation
ownership debt Term notes $1,305 $1,290 $1,165 $1,252 $1,437 Bank
conduit facilities(a) 299 340 569 558 647 ------ ------ ------
----- ------ Securitized vacation ownership debt (b) 1,604 1,630
1,734 1,810 2,084 Less: Current portion of securitized vacation
ownership debt 291 288 305 294 324 ------ ------ ------ ------
------ Long-term securitized vacation ownership debt $1,313 $1,342
$1,429 $1,516 $1,760 ====== ====== ====== ====== ====== Debt: 6.00%
senior unsecured notes (due December 2016)(c) $797 $797 $797 $797
$797 Term loan (due July 2011) 300 300 300 300 300 Revolving credit
facility (due July 2011)(d) 21 30 517 576 305 9.875% senior
unsecured notes (due May 2014)(e) 237 237 - - - 3.50% convertible
notes (due May 2012)(f) 309 253 - - - Vacation ownership bank
borrowings(g) 163 154 156 159 172 Vacation rentals capital leases
139 135 130 139 143 Other 23 22 13 13 12 ----- ----- ----- -----
----- Total debt 1,989 1,928 1,913 1,984 1,729 Less: Current
portion of debt 176 169 166 169 182 ------ ------ ------ ------
------ Long-term debt $1,813 $1,759 $1,747 $1,815 $1,547 ======
====== ====== ====== ====== (a) Represents (i) a 364-day,
non-recourse vacation ownership bank conduit facility with a term
through November 2009 and borrowing capacity of $943 million and
(ii) the outstanding balance of the Company's prior bank conduit
facility that was repaid on October 8, 2009. At September 30, 2009,
our 364-day facility has remaining borrowing capacity of $671
million. (b) This debt is collateralized by $2,947 million, $2,916
million, $3,005 million, $2,929 million and $2,737 million of
underlying vacation ownership contract receivables and related
assets at September 30, 2009, June 30, 2009, March 31, 2009,
December 31, 2008 and September 30, 2008, respectively. (c) The
balance at September 30, 2009 represents $800 million aggregate
principal less $3 million of unamortized discount. (d) The
Company's revolving credit facility has a borrowing capacity of
$900 million. At September 30, 2009, the Company has $30 million of
outstanding letters of credit and a remaining borrowing capacity of
$849 million. (e) Represents senior unsecured notes issued by the
Company during May 2009. The balance at September 30, 2009
represents $250 million aggregate principal less $13 million of
unamortized discount. (f) Represents cash convertible notes issued
by the Company during May 2009. Such balance includes $187 million
of debt ($230 million aggregate principal less $43 million of
unamortized discount) and a liability with a fair value of $122
million related to a bifurcated conversion feature. (g) Represents
a 364-day, AUD 213 million, secured, revolving foreign credit
facility, which expires in June 2010. Table 6 (1 of 2) Wyndham
Worldwide Corporation HOTEL BRAND SYSTEMS DETAILS As of and For the
Three Months Ended September 30, 2009
------------------------------------------------------- Average
Revenue Average Per Number Number Average Daily Available of of
Occupancy Rate Room Brand Properties Rooms Rate (ADR) (RevPAR)
----- ---------- ------- ---------- -------- ---------- Wyndham
Hotels and Resorts 87 23,555 53.2% $108.57 $57.76 Wingate Inn 169
15,456 57.1% $83.19 $47.54 Hawthorn Suites 90 8,386 55.6% $82.65
$45.98 Ramada 895 116,320 51.8% $73.89 $38.26 Baymont 233 19,829
48.9% $64.39 $31.46 Days Inn 1,851 148,949 50.7% $65.03 $32.96
Super 8 2,125 131,921 55.8% $60.34 $33.68 Howard Johnson 474 45,233
47.6% $63.57 $30.24 Travelodge 465 34,800 50.0% $67.25 $33.61
Microtel Inns & Suites 315 22,608 53.3% $60.15 $32.04 Knights
Inn 327 20,324 39.8% $44.56 $17.75 Unmanaged, Affiliated and
Managed, Non-Proprietary Hotels (*) 11 3,549 N/A N/A N/A -----
------- Total 7,042 590,930 51.8% $67.24 $34.81 ===== ======= As of
and For the Three Months Ended September 30, 2008
------------------------------------------------------- Average
Revenue Average Per Number Number Average Daily Available of of
Occupancy Rate Room Brand Properties Rooms Rate (ADR) (RevPAR)
----- ---------- ------- ---------- -------- ---------- Wyndham
Hotels and Resorts 80 21,365 63.4% $123.13 $78.09 Wingate Inn 158
14,427 62.9% $93.44 $58.77 Hawthorn Suites 90 8,404 63.5% $91.00
$57.78 Ramada 877 110,844 57.0% $82.35 $46.92 Baymont 213 18,194
55.7% $67.82 $37.74 Days Inn 1,878 152,557 56.9% $68.95 $39.22
Super 8 2,098 130,056 62.1% $63.69 $39.57 Howard Johnson 471 45,084
52.4% $69.09 $36.20 Travelodge 482 36,203 56.1% $73.48 $41.19
Microtel Inns & Suites 301 21,431 57.9% $63.51 $36.78 Knights
Inn 294 19,568 45.4% $46.18 $20.95 Unmanaged, Affiliated and
Managed, Non-Proprietary Hotels (*) 28 5,260 N/A N/A N/A -----
------- Total 6,970 583,393 57.7% $72.61 $41.93 ===== ======= NOTE:
A glossary of terms is included in Table 3 (3 of 3). (*) Represents
1) affiliated properties for which we receive a fee for reservation
services provided and 2) properties managed under the CHI Limited
joint venture. These properties are not branded; as such, certain
operating statistics (such as average occupancy rate, ADR and
RevPAR) are not relevant. As of September 30, 2008, amounts also
include AmeriHost branded properties. Table 6 (2 of 2) Wyndham
Worldwide Corporation HOTEL BRAND SYSTEMS DETAILS As of and For the
Nine Months Ended September 30, 2009
------------------------------------------------------ Average
Revenue Average Per Number Number Average Daily Available of of
Occupancy Rate Room Brand Properties Rooms Rate (ADR) (RevPAR)
----- ---------- ------ ---------- -------- ---------- Wyndham
Hotels and Resorts 87 23,555 53.3% $116.58 $62.15 Wingate Inn 169
15,456 55.0% $84.61 $46.55 Hawthorn Suites 90 8,386 53.2% $85.69
$45.58 Ramada 895 116,320 48.1% $74.11 $35.64 Baymont 233 19,829
47.0% $63.64 $29.91 Days Inn 1,851 148,949 46.9% $63.15 $29.61
Super 8 2,125 131,921 50.4% $57.48 $28.96 Howard Johnson 474 45,233
43.3% $62.14 $26.94 Travelodge 465 34,800 45.1% $62.57 $28.20
Microtel Inns & Suites 315 22,608 50.9% $57.18 $29.08 Knights
Inn 327 20,324 38.4% $43.14 $16.56 Unmanaged, Affiliated and
Managed, Non-Proprietary Hotels (*) 11 3,549 N/A N/A N/A -----
------- Total 7,042 590,930 47.9% $66.08 $31.66 ===== ======= As of
and For the Nine Months Ended September 30, 2008
------------------------------------------------------ Average
Revenue Average Per Number Number Average Daily Available of of
Occupancy Rate Room Brand Properties Rooms Rate (ADR) (RevPAR)
----- ---------- ------- ---------- -------- ---------- Wyndham
Hotels and Resorts 80 21,365 63.6% $123.20 $78.44 Wingate Inn 158
14,427 62.3% $92.72 $57.78 Hawthorn Suites 90 8,404 63.5% $91.00
$57.78 Ramada 877 110,844 54.2% $82.35 $44.63 Baymont 213 18,194
51.2% $66.38 $34.02 Days Inn 1,878 152,557 52.0% $65.80 $34.24
Super 8 2,098 130,056 56.0% $60.40 $33.84 Howard Johnson 471 45,084
48.5% $65.95 $32.01 Travelodge 482 36,203 50.7% $70.20 $35.60
Microtel Inns & Suites 301 21,431 57.9% $63.51 $36.78 Knights
Inn 294 19,568 42.4% $43.71 $18.54 Unmanaged, Affiliated and
Managed, Non-Proprietary Hotels (*) 28 5,260 N/A N/A N/A -----
------- Total 6,970 583,393 53.4% $70.68 $37.76 ===== ======= NOTE:
A glossary of terms is included in Table 3 (3 of 3). (*) Represents
1) affiliated properties for which we receive a fee for reservation
services provided and 2) properties managed under the CHI Limited
joint venture. These properties are not branded; as such, certain
operating statistics (such as average occupancy rate, ADR and
RevPAR) are not relevant. As of September 30, 2008, amounts also
include AmeriHost branded properties. Table 7 (1 of 2) Wyndham
Worldwide Corporation NON-GAAP RECONCILIATIONS (In millions, except
per share data) Three Months Ended Nine Months Ended
--------------------------------- ----------------- March 31, June
30, Sept. 30, September 30, 2009 2009 2009 2009 ----------
--------- ---------- ----------------- Reported EBITDA $134 $196
$254 $583 Resolution of and adjustment to contingent liabilities
and assets (a) 4 - 2 6 Restructuring costs (b) 43 3 - 46 ---- ----
---- ---- Adjusted EBITDA $181 $199 $256 $635 ---- ---- ---- ----
Reported PreTax Income $74 $127 $175 $375 Resolution of and
adjustment to contingent liabilities and assets (a) 4 - 2 6
Restructuring costs (b) 43 3 - 46 ---- ---- ---- ---- Adjusted
PreTax Income $121 $130 $177 $427 ---- ---- ---- ---- Reported Tax
Provision $(29) $(56) $(71) $(155) Resolution of and adjustment to
contingent liabilities and assets (c) (2) 2 - - Restructuring costs
(c) (16) (1) - (18) ---- ---- ---- ---- Adjusted Tax Provision
$(47) $(55) $(71) $(173) ---- ---- ---- ----- Reported Net Income
$45 $71 $104 $220 Resolution of and adjustment to contingent
liabilities and assets 2 2 2 6 Restructuring costs 27 2 - 28 ----
---- ---- ---- Adjusted Net Income $74 $75 $106 $254 --- --- ----
---- Reported Diluted EPS $0.25 $0.39 $0.57 $1.21 Resolution of and
adjustment to contingent liabilities and assets 0.01 0.01 0.01 0.03
Restructuring costs 0.15 0.01 - 0.16 ---- ---- ---- ---- Adjusted
Diluted EPS $0.41 $0.41 $0.58 $1.40 ----- ----- ----- ----- Diluted
Shares 178 182 183 181 Note: Amounts may not foot due to rounding.
(a) Relates to the net expense from the resolution of and
adjustment to certain contingent liabilities and assets. (b)
Relates to costs incurred as a result of various strategic
initiatives commenced by the Company during 2008. (c) Relates to
the tax effect of the adjustments. Table 7 (2 of 2) Wyndham
Worldwide Corporation NON-GAAP RECONCILIATIONS (In millions, except
per share data) Three Months Ended Nine Months Ended
--------------------------------- ----------------- March 31, June
30, Sept. 30, September 30, 2008 2008 2008 2008 ----------
--------- ---------- ----------------- Reported EBITDA $130 $221
$294 $645 Resolution of and adjustment to contingent liabilities
and assets (a) 3 (7) 1 (4) Trademark impairment (b) 28 - - 28
Restructuring costs (c) - - 6 6 ---- ---- ---- ---- Adjusted EBITDA
$161 $214 $301 $675 ---- ---- ---- ---- Reported PreTax Income $70
$160 $228 $457 Resolution of and adjustment to contingent
liabilities and assets (a) 3 (7) 1 (4) Trademark impairment (b) 28
- - 28 Restructuring costs (c) - - 6 6 ---- ---- ---- ---- Adjusted
PreTax Income $101 $153 $235 $487 ---- ---- ---- ---- Reported Tax
Provision $(28) $(62) $(86) $(175) Resolution of and adjustment to
contingent liabilities and assets (d) - 3 1 5 Trademark impairment
(d) (11) - - (11) Restructuring costs (d) - - (2) (2) ---- ----
---- ---- Adjusted Tax Provision $(39) $(59) $(87) $(183) ---- ----
---- ----- Reported Net Income $42 $98 $142 $282 Resolution of and
adjustment to contingent liabilities and assets 3 (4) 2 1 Trademark
impairment 17 - - 17 Restructuring costs - - 4 4 ---- ---- ----
---- Adjusted Net Income $62 $94 $148 $304 --- --- ---- ----
Reported Diluted EPS $0.24 $0.55 $0.80 $1.58 Resolution of and
adjustment to contingent liabilities and assets 0.01 (0.02) 0.01
0.01 Trademark impairment 0.10 - - 0.10 Restructuring costs - -
0.02 0.02 ---- ---- ---- ---- Adjusted Diluted EPS $0.35 $0.53
$0.83 $1.71 ----- ----- ----- ----- Diluted Shares 178 178 178 178
Note: Amounts may not foot due to rounding. (a) Relates to the net
(benefit)/expense from the resolution of and adjustment to certain
contingent liabilities and assets. (b) Represents an impairment
charge due to the Company's initiative to rebrand its vacation
ownership trademarks to the Wyndham brand. (c) Relates to costs
incurred as a result of various strategic initiatives commenced by
the Company during 2008. (d) Relates to the tax effect of the
adjustments. Table 8 (1 of 4) Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION (In millions, except per share data)
Three Months Ended September 30, 2009
------------------------------------- As Legacy As Reported
Adjustments Adjusted --------- ----------- -------- Net revenues
Service fees and membership $445 $445 Vacation ownership interest
sales 285 285 Franchise fees 126 126 Consumer financing 108 108
Other 52 52 ----- ---- ----- Net revenues 1,016 - 1,016 ----- ----
----- Expenses Operating 386 386 Cost of vacation ownership
interests 54 54 Consumer financing interest 35 35 Marketing and
reservation 149 149 General and administrative 140 (2) (a) 138
Depreciation and amortization 46 46 ----- ---- ----- Total expenses
810 (2) 808 ----- ---- ----- Operating income 206 2 208 Other
income, net (2) (2) Interest expense 34 34 Interest income (1) (1)
----- ---- ----- Income before income taxes 175 2 177 Provision for
income taxes 71 - (b) 71 ----- ---- ----- Net income $104 $2 $106
===== ==== ===== Earnings per share Basic $0.58 $0.01 $0.59 Diluted
0.57 0.01 0.58 Weighted average shares outstanding Basic 179 179
179 Diluted 183 183 183 (a) Relates to the net expense from the
resolution of and adjustment to certain contingent liabilities and
assets. (b) Relates to the tax effect of the adjustment. Table 8 (2
of 4) Wyndham Worldwide Corporation NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data) Nine Months Ended September
30, 2009 ------------------------------------ As Legacy
Restructuring As Reported Adjustments Costs Adjusted ---------
----------- -------------- -------- Net revenues Service fees and
membership $1,241 $1,241 Vacation ownership interest sales 766 766
Franchise fees 342 342 Consumer financing 325 325 Other 163 163
----- ---- --- ----- Net revenues 2,837 - - 2,837 ----- ---- ---
----- Expenses Operating 1,153 1,153 Cost of vacation ownership
interests 136 136 Consumer financing interest 102 102 Marketing and
reservation 423 423 General and administrative 398 (6)(a) 392
Restructuring costs 46 (46)(b) - Depreciation and amortization 134
134 ----- ---- --- ----- Total expenses 2,392 (6) (46) 2,340 -----
---- --- ----- Operating income 445 6 46 497 Other income, net (4)
(4) Interest expense 79 79 Interest income (5) (5) ----- ---- ---
----- Income before income taxes 375 6 46 427 Provision for income
taxes 155 -(c) 18(c) 173 ----- ---- --- ----- Net income $220 $6
$28 $254 ===== ==== === ===== Earnings per share Basic $1.23 $0.03
$0.16 $1.42 Diluted 1.21 0.03 0.16 1.40 Weighted average shares
outstanding Basic 178 178 178 178 Diluted 181 181 181 181 (a)
Relates to the net expense from the resolution of and adjustment to
certain contingent liabilities and assets. (b) Relates to costs
incurred as a result of various strategic initiatives commenced by
the Company during 2008. (c) Relates to the tax effect of the
adjustments. Table 8 (3 of 4) Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION (In millions, except per share data)
Three Months Ended September 30, 2008
------------------------------------- As Legacy Restructuring As
Reported Adjustments Costs Adjusted --------- -----------
-------------- -------- Net revenues Service fees and membership
$468 $468 Vacation ownership interest sales 446 446 Franchise fees
153 153 Consumer financing 111 111 Other 48 48 ----- ---- -----
----- Net revenues 1,226 - - 1,226 ----- ---- ----- ----- Expenses
Operating 439 439 Cost of vacation ownership interests 86 86
Consumer financing interest 34 34 Marketing and reservation 232 232
General and administrative 140 (1)(a) 139 Restructuring costs 6
(6)(b) - Depreciation and amortization 47 47 ----- ---- ----- -----
Total expenses 984 (1) (6) 977 ----- ---- ----- ----- Operating
income 242 1 6 249 Other income, net (5) (5) Interest expense 21 21
Interest income (2) (2) ----- ---- ----- ----- Income before income
taxes 228 1 6 235 Provision for income taxes 86 (1)(c) 2(c) 87
----- ---- ----- ----- Net income $142 $2 $4 $148 ===== ==== =====
===== Earnings per share Basic $0.80 $0.01 $0.02 $0.83 Diluted 0.80
0.01 0.02 0.83 Weighted average shares outstanding Basic 178 178
178 178 Diluted 178 178 178 178 (a) Relates to the net expense from
the resolution of and adjustment to certain contingent liabilities
and assets. (b) Relates to costs incurred as a result of various
strategic initiatives commenced by the Company during 2008. (c)
Relates to the tax effect of the adjustment. Table 8 (4 of 4)
Wyndham Worldwide Corporation NON-GAAP FINANCIAL INFORMATION (In
millions, except per share data) Nine Months Ended September 30,
2008 ------------------------------------ Restruc- As Legacy
Trademark turing As Reported Adjustments Impairment Costs Adjusted
--------- ----------- ---------- -------- -------- Net revenues
Service fees and membership $1,344 $1,344 Vacation ownership
interest sales 1,153 1,153 Franchise fees 402 402 Consumer
financing 314 314 Other 157 157 ----- ---- ---- ---- ----- Net
revenues 3,370 - - - 3,370 ----- ---- ---- ---- ----- Expenses
Operating 1,284 1,284 Cost of vacation ownership interests 226 226
Consumer financing interest 93 93 Marketing and reservation 659 659
General and adminis- trative 438 4(a) 442 Trademark impairment 28
(28)(b) - Restruc- turing costs 6 (6)(c) - Depreciation and
amortization 137 137 ----- ---- ---- ---- ----- Total expenses
2,871 4 (28) (6) 2,841 ----- ---- ---- ---- ----- Operating income
499 (4) 28 6 529 Other income, net (9) (9) Interest expense 59 59
Interest income (8) (8) ----- ---- ---- ---- ----- Income before
income taxes 457 (4) 28 6 487 Provision for income taxes 175 (5)(d)
11(d) 2(d) 183 ----- ---- ---- ---- ----- Net income $282 $1 $17 $4
$304 ===== ==== ==== ==== ===== Earnings per share Basic $1.59
$0.01 $0.10 $0.02 $1.71 Diluted 1.58 0.01 0.10 0.02 1.71 Weighted
average shares outstanding Basic 177 177 177 177 177 Diluted 178
178 178 178 178 Note: EPS amounts may not foot across due to
rounding. (a) Relates to the net benefit from the resolution of and
adjustment to certain contingent liabilities and assets. (b)
Represents an impairment charge due to the Company's initiative to
rebrand its vacation ownership trademarks to the Wyndham brand. (c)
Relates to costs incurred as a result of various strategic
initiatives commenced by the Company during 2008. (d) Relates to
the tax effect of the adjustments. DATASOURCE: Wyndham Worldwide
Corporation CONTACT: Margo C. Happer, Senior Vice President,
Investor Relations, Wyndham Worldwide Corporation, +1-973-753-6472,
Web Site: http://www.wyndhamworldwide.com/
Copyright